Identifying High Performance Indicators
What Drives Effectiveness in Generating Total Earned Operating Revenue?
31% of the variation in the level of total earned operating revenue is explained by the factors from the A&C Ecosystem. Two-thirds – 68% – is attributable to expertise generating earned revenue, and 1% of variation in the amount of operating revenue earned is random.
What Drives Efficiency in Managing Total Expenses (less deprecation)?
Half of the variation in total expenses is explained by the factors from the A&C Ecosystem. Another 48% is attributable to expertise in establishing and managing the level of total expenses. Only 2% of variation in total expenses is random.
High KIPI percentages imply that there is a significant store of intellectual capital that is driving the difference between low-performing and high-performing arts and cultural organizations with respect to generation of earned operating revenue and management of expenses.