Turning Around Organizations in a Crisis: The Case of Two Major Alberta Orchestras

AWARD WINNING CASE - This case won the Best Case Award at the Administrative Sciences Association of Canada (ASAC) Case Competition, 2007. In 2002, both the Edmonton Symphony Orchestra and the Calgary Philharmonic faced financial crises that threatened their existence. Both organizations provided similar programming, had approximately the same revenues and were well rooted in their communities, which were of similar populations. However, the turnaround approaches taken by the boards of the two organizations were starkly different. The Calgary Philharmonic sought bankruptcy protection, dismissed the CEO, hired consultants, sought emergency funding from government, and suspended operations for four months during a restructuring period. In the end, it emerged successfully from bankruptcy. The Edmonton Symphony Orchestra scraped through the crisis, continuing to pay its musicians for ongoing performances, while negotiating new contracts, retaining its CEO, and not soliciting emergency funding from the government. Three years after the crisis both organizations were flourishing, with new music directors, balanced budgets and growing endowment funds. This is a descriptive case that outlines the stories of the two orchestras and their turnarounds. The case is powerful because it allows students to clearly contrast the two organizational turnaround approaches and to draw conclusions on their respective strengths and weaknesses.