More Opera to More People

---

More Opera to More People

2011-2015 Strategic Plan

1 of 18

Table of Contents EXECUTIVE SUMMARY

3

SELF ASSESSMENT AND ENVIRONMENTAL SCAN

4

COMPANY MISSION AND PROGRAM FOCUS

5

GOAL: STRENGTHEN AND SUSTAIN ARTISTIC EXCELLENCE

6

Priority 1: Assure Highest Quality of Mainstage Productions Priority 2: Present Balanced Repertoire

GOAL: ADVANCE RESIDENT ARTIST PROGRAM Priority 1: Expand Performance Opportunities Priority 2: Expand Practical Training Components Priority 3: Broaden National Profile

6 7

8 8 9 9

GOAL: ADVANCE EDUCATION PROGRAMS Priority 1: Explore opportunities to provide additional live performances of mainstage operas for student audiences. Priority 2: Expand the geographical range and capacity of education programs. Priority 3: Develop the infrastructure to support additional programs.

10 10 11 12

GOAL: INCREASE MARKETING/COMMUNICATIONS CAPACITY, CONNECTIONS, AND COMMUNITY 13 Priority 1: Increase marketing/communications capacity via technology and department structure Priority 2: Increase marketing/communications connections via technology Priority 3: Increase the Pittsburgh Opera community with high-touch experiences, both via technology and in person

13 14 14

GOAL: ENSURE THE FUTURE THROUGH SOLID FISCAL MANAGEMENT

15

GOAL: EXPAND SUSTAINABLE EFFORTS WITHIN THE BUILDING AND THE COMMUNITY

17

Priority 1: Continue sustainability momentum to ensure that reapplication is possible Priority 2: Increase staff commitment to strategies and behavioral policies already in place Priority 3: Develop a stronger “sustainability” presence in the community through education, community outreach, and the Pittsburgh Opera website Priority 4: Prepare for future building improvements

2 of 18

17 18 18 18

Executive Summary During the span of the previous Strategic Plan (2007-10), Pittsburgh Opera proved its strength by confronting a major economic downturn at the same time as instituting and completing successfully a major Capital Campaign to secure its new headquarters at 2425 Liberty Avenue, in the Strip District. This period also saw a change in leadership. Christopher Hahn, until then Artistic Director, succeeded Mark Weinstein as General Director, thus combining the executive and artistic functions in one person. Under this new leadership, the organizational structure of the company was reformed and Board governance was strengthened. Whilst the economic environment caused the company’s permanent endowment to dip to $9 million, an $8 million campaign to purchase, renovate and support the new headquarters has to date netted $9.6 million. In a nimble response to the economic climate, the company was also able to reduce its expenses by over a million dollars, to sustain an annual balanced budget of $6.9 million, and an accumulated operating surplus continues to protect against further downturns and keeps us debt-free. In the seasons covered by the previous Plan, the company mounted a series of acclaimed productions featuring a wide range of artists, mostly under the baton of Music Director Antony Walker. His strong hand in guiding every aspect of the musical life of the company continues to be inspired, and his contract has already been renewed once. The Resident Artist Program produces successful alumni who increasingly appear at major opera companies around the world, and our Education programs remain powerful and focused. The three priorities of the previous plan: to secure a new home, enhance our community position and maintain artistic excellence were successfully achieved. This new document will address the evolving landscape of the audience and our community and will show how we will plan to maintain strength and stability despite continuing pressures and find ways to respond quickly to new challenges, as well as plan for careful expansion in areas where we feel we can sustain growth. The acquisition of new headquarters has provided the company with considerably enhanced visibility and stature in the community. This plan will explore ways to build on that success. The current plan, prepared by the Strategic Planning Committee of the Pittsburgh Opera Board, and ratified by the whole Board on March 31, 2011 seeks to lay out the priorities and core strategies necessary for sustained excellence over the next four years. It is intended to be a flexible set of precepts, sensitive to the unpredictability of long-range planning, but firm in its vision of meeting the mission of Pittsburgh Opera at the highest possible level.

3 of 18

Self Assessment and Environmental Scan Distinguishing Advantages: Talented and experienced artistic and musical staff; great reputation for financial management; outstanding new building whose “green” development distinguishes the opera from other local arts organizations and regional opera companies; building also provides an outstanding venue for ancillary programming to generate revenue and enhance community engagement; exceptionally loyal subscribers; renowned training program is a source of lower cost talent for mainstage productions; good relationships with institutional donors. Limitations: Administrative department heads are relatively new in their positions; virtually all departments making do with less than optimal capacity; individual giving program not as strong/lucrative as institutional giving; flat to declining revenue from ticket sales; ticket sales decline masked by slow increase in prices. The individual donor renewal rate has averaged 62.2% over the last five years, which is somewhat weaker than the national benchmark, a level of performance we believe was affected by such factors as frequent turnover among staff, a large Challenge Grant that attracted significant new giving that churned in and out, followed quickly by a Capital Campaign that distracted donors from the Annual Fund, the economic downturn that depressed donor performance and the introduction of a telefunding program that both acquires a lot of new, low-value donors and churns them quickly. Favorable Prospects: Growing popularity of high-def opera broadcasts and other recorded content can stimulate interest in live performances and in less-traditional repertoire; increased opportunities created through the advent of new media and communications technologies; aging audience likely to have greater disposable income than younger audience members; investment in individual giving could benefit planned giving activities; successful capital campaign provides prospect for additional individual giving as pledges are fulfilled; community-wide focus on increasing giving from individuals can help us amplify our case for support from ticket-buyers who are non-donors Risks: Aging, shrinking community; local schools reducing their arts programming, calling on organizations to provide greater resources without providing more money; appetite for providing more opera to more people without generating more money is straining staff resources.

4 of 18

Company Mission and Program Focus Pittsburgh Opera recognizes that the next four years will present challenges and opportunities which will be met and exploited if the mission and focus of the company remains steadfast and clear. To this end, it is imperative that the mission of producing the highest level of operatic performance in our region is maintained and bolstered through a range of strategies as laid out in this document none of which by themselves might prove fully effective, but together can ensure a vibrant future for the company. In the 2013/14 season, the company will mark its 75th Anniversary season, which will be a cause for celebration and reflection on how, from humble beginnings, a determined band of founders started something that has resulted in a strong regional opera company with a permanent home and an acclaimed training program. The programmatic choices in that season will be made carefully to reflect both history and the future of opera in a way that elicits maximum benefit for the company from the attendant publicity. Initiatives in other parts of this Strategic Plan all reflect a desire to move forward carefully in the next four years with a view to instituting what becomes financially feasible, without jeopardizing fiscal stability. This included the intention to add a second Resident Artist production to augment the repertoire offerings of the company in any season, as well as to provide even more performance opportunities to Resident Artists. The expansion of our Education programs to include a summer opera camp is another such initiative. With space aplenty for such a program in our facility, and clear need for intensive arts enrichment activities for children, we will strive to meet the challenge of expansion with very limited resources. One of the most successful offerings in recent history has been Jake Heggie’s Dead Man Walking. This seminal work in the new era of American opera composition has now been followed by the same composer’s Moby Dick. The company intends to produce this piece in 2013 as part of its plan to continue airing important American works, following on the more recent performances of The Grapes of Wrath by Ricky Ian Gordon. Discussions are underway with the August Wilson Center to partner in the curatorship of a new world premiere by the renowned jazz musician Wynton Marsalis, also envisioned for performances in 2013. Thus, with relatively little financial exposure, the company will seek to contribute to the furtherance of new works in this collaborative move. Building on the success of a recent collaboration with the CMU Design School, in which talented graduate students are given the opportunity to work in the professional world, Pittsburgh Opera will present a production of Hansel & Gretel that, after an initial production at CAPA theater, would be adapted for annual performance in the George Rowland White Opera Studio every December. This would significantly increase outreach and performance opportunities with little additional expense and provide a much-needed infusion into the traditional holiday season offerings. Given all of the above, it is worth reiterating that additional quantity (more performances) should never be at the expense of quality, and this Plan is clear that our primary focus must always be the constant attempt to better what we produce, to jealously guard artistic standards and to consistently reassess our performance. What details that follow must all be seen in that light.

5 of 18

GOAL: STRENGTHEN AND SUSTAIN ARTISTIC EXCELLENCE Sustaining the highest artistic quality for both core works of the repertoire and operas new to Pittsburgh audiences, or even American audiences, continues to be a central focus of Pittsburgh Opera’s strategic plan. Artistic Excellence calls for the highest caliber artists performing in effective and compelling productions, supported by excellent musical values, given the resources available to the company. Artistic Excellence encompasses two principal priorities that will be pursued simultaneously over the next four years.

Priority 1: Assure Highest Quality of Mainstage Productions Maintain balanced casting in principal roles at a consistently high level and continue to raise overall production values (sets, costumes and lighting) for all work that the Company creates or produces. A. Devote sufficient resources to securing world-class creative and interpretive artists We understand that Pittsburgh Opera must maintain and possibly increase its spending on artists over the next four years if it wishes to sustain the level of Artistic Excellence achieved in recent seasons. We must continue to create an environment of the highest artistic satisfaction so that great singers will find here a natural home. Indicators: • Engagement of in-demand internationally recognized artists • Increased audience acceptance of lesser-known works • Recognition in the media of the high quality of artistic achievement B. Provide leading performers a platform for advancing their careers Pittsburgh Opera now attracts a range of singers interested in exploring repertoire they have not been offered elsewhere. Indicators: • Role-debuts by leading singers on Pittsburgh Opera stage • Increased opportunities for master classes by mainstage artists

6 of 18

Priority 2: Present Balanced Repertoire Advance the art form through presentation of new, infrequently performed, and newly- staged repertoire while maintaining commitment to core repertoire. A. Present works drawn from the art form’s diverse canon Pittsburgh Opera has a responsibility to present works drawn from the art form’s diverse canon, complementing mainstays of grand opera with contemporary works, baroque and bel canto operas as well as major works in the English language. The Board is aware that this policy may result in reduced ticket sales for certain productions, but have asserted repertoire expansion to be a critical part of future artistic planning, the benefits of which more than offset the box office ramifications. Indicators: • Presentation where financially possible of four productions new to Pittsburgh each season • Inclusion of contemporary repertoire on a regularly scheduled basis • Introduction of eclectic and/or infrequently performed repertoire either at the • Benedum Center or as a Resident Artist production B. Participate in co-productions Pittsburgh Opera is committed to presenting top-level artists in dramatically compelling productions and seeks out the most interesting combinations of stage director and designers. The resultant symbiosis with great performers can be revelatory to our audience. The direct costs of sets, lighting and costumes, and the fees for top directors and designers are around $600,000 for a new production of modest endeavor. A new production must be of sufficient quality and artistic interest to appeal to other companies interested in presenting the sets and costumes, and built to withstand the rigors of transportation from one venue to another. Given the substantial costs and risks of undertaking new productions, co-productions with other companies (in which these costs are shared) are the most realistic and prudent way of achieving new work. The company forges relationships with other opera companies with similar artistic visions so that Pittsburgh Opera will commit its creative and financial resources to those productions either as a leader or as a responsible partner. Indicators: • Enhanced long-term relationships with similarly positioned companies such as Seattle Opera, Opera Colorado and Minnesota Opera • Participation in at least one new co-production across each three-year programming span • Reputation with peer companies as a willing and first-rate partner C. Initiate opportunities for inter-disciplinary artistic partnerships Fiscal prudence currently precludes the Company from presenting a fifth opera at the Benedum Center each season. We therefore continue to explore new venues (including CAPA and the George Rowland White Opera Studio at our Strip building) and opportunities for artistic collaboration that expand the depth and breadth of operatic repertoire we offer our audiences annually. Indicators: • Partnerships with local or regional performing arts organizations • Enhanced long-term artistic relationships with other companies 7 of 18

GOAL: ADVANCE RESIDENT ARTIST PROGRAM The Resident Artist Program is one of the top young artist training programs for emerging opera singers in the United States. It is an eight month training program, coinciding with the mainstage season, which provides practical and professional artistic development through performing experience and studio work. The program is nationally recognized for the significant performance opportunities it offers to the young artists, ranging from operas, concerts, recitals, cabarets and other events. Resident Artists perform in major and secondary roles alongside internationally-acclaimed artists in mainstage productions. Each season the company also programs one fully-staged new production, mounted for and featuring the Resident Artists - the only major opera company in the United States to do so. They also have opportunities to perform in concert with orchestras, ensembles and other performing arts groups in the area. In the studio, Resident Artists learn from dedicated guest and resident faculty, and receive coachings from internationally-acclaimed artists in all facets of opera. Finally, the Program also serves as a component in the company’s outreach activities in the community. Resident Artists perform for schools, adult education programs, community activities and also present a special Student Matinee performance of one full length opera each year for area school children.

Priority 1: Expand Performance Opportunities A. Add second Resident Artist Production to each season Pittsburgh Opera remains the only seasonal (non-festival) opera company which programs a fully staged new production for their Resident Artists. The addition of a second fully-staged production would expand performance opportunities to the Resident Artists thereby directly supporting the practical training component of the program. In addition, and additional production would increase their exposure to new conductors, stage directors and production designers. Finally a second production would not only increase the company’s operatic offerings to the community, but it would solidify the company’s presence nationally as having the most unique training program in the country. B. Additional Student Matinee performance A major strategic priority for the Education Department is exploring the feasibility of adding another student matinee performance to the season. In addition to the strategic benefits to our Education programming there would be the related benefits which support the practical training of the Resident Artists. Benefits would include increased performance opportunities to learn and perform full length roles as well as expanded opportunities to sing with orchestra and to work with other directors and conductors. Indicators: • Explore seasonal calendar for possible times to program additional production • Begin programming works at Pittsburgh Opera headquarters accompanied by piano or small ensemble to develop audience

8 of 18

Priority 2: Expand Practical Training Components A. Incorporate consistent diction, movement, Alexander Technique and other professional development needs such as business and financial advice and media training into curriculum It is important that singers receive continued training in diction, languages, movement, Alexander Technique, etc. Increasing the consistency of these components in the program’s curriculum would be essential to the artistic growth of the Resident Artists. In addition making provisions for other professional development needs such as headshot, attire, financial advice and media training would be invaluable in supporting the beginning of their professional careers. B. Explore addition of Resident Artist pianist and/or stage director The addition of a Resident Artist pianist and/or stage director to the Program would display the company’s commitment to training and educating those artists who direct, prepare, coach and conduct opera singers. These artists would receive practical on-the-job training through working with the company’s distinguished Music Director and music staff as well as other internationally acclaimed directors and conductors. In addition, a Resident Artist pianist or stage director would expand the national profile of the Program by broadening the types of artists eligible for the Program. Indicators: • Begin exploration of possible linguistic, movement, Alexander Technique experts in the area • Explore possibility of pro bono services • Begin scheduling these coachings as frequently as is affordable.

Priority 3: Broaden National Profile Add west coast destination to annual audition tour Given the national reputation of the Resident Artist Program, broadening the audition locations beyond Pittsburgh, Cincinnati and New York would broaden the number of emerging artists that the company could consider on an annual basis. A west coast destination would open up the opportunity for those singers in the Los Angeles, San Francisco areas as well as the Pacific Northwest to be heard without having to travel to the east. Indicators: • Explore seasonal calendar for possible times to schedule west coast auditions

9 of 18

GOAL: ADVANCE EDUCATION PROGRAMS Pittsburgh Opera offers about 30 education programs for educators, students, schools, families, and adults. The signature program, Workshops for Educators, is a series of in-depth, full-day professional development workshops for teachers from all content areas and all education levels. Teachers who attend workshops use opera materials to create lessons that integrate the arts and address academic content standards, thus sharing opera with thousands of students throughout southwestern Pennsylvania and eastern Ohio. Attending an opera student matinee is the culminating experience for many of these students. Throughout every education program—workshops, study guides, opera trunks, high school programs, audio commentary, and internships—education staff and volunteers work to create quality experiences and meaningful learning. With sufficient staffing and financial resources over the next four years, more students could attend live opera performances, the geographical range and capacity of education programs could expand, and new/additional programs could be implemented

Priority 1: Explore opportunities to provide additional live performances of mainstage operas for student audiences. A. Explore the feasibility of adding a second full-length Student Matinee for older students. Indicators: • Market research demonstrates a need for a second student matinee performance. • Presentation of two student matinees during a season. • Expanded funding for Resident Artists program. B. Explore the possibility of reinstating the Behind the Curtain program for younger students. Indicators: • Market research demonstrates a need for an opera performance specifically geared to younger students. • Presentation of mainstage performance designed for younger students. • Expanded funding for Resident Artists program.

10 of 18

Priority 2: Expand the geographical range and capacity of education programs. Pittsburgh Opera is committed to reaching teachers, students, and schools throughout western Pennsylvania and eastern areas of Ohio and West Virginia. A. Continue to track participation in education programs by geographical location. Indicators: • Participation in numerous counties. • Participation covers targeted geographical areas more thoroughly. B. Develop relationships with liaisons in underserved areas. Indicators: • Relationships with educators in schools with high rates of free/reduced lunch program. • Liaisons participate repeatedly for several seasons. C. Expand the education database and market education programs to within 100 miles of Pittsburgh. Indicators: • Contacts throughout the targeted geographical area. • Emails and other contact information for increased number of contacts. • One or more education emails sent annually. D. Explore opportunities to increase the capacity of professional development workshops. Indicators: • Increased number of workshop participants. • Workshop content adapted for individualized workshops. E. Explore the possibility of creating an intensive summer Opera Academy program. Indicators: • Market research demonstrates a need for a summer intensive Opera Academy program. • A critical mass of participants registers for a summer program.

11 of 18

Priority 3: Develop the infrastructure to support additional programs. A. Explore the possibility of offering a summer opera camp for students and their parents. Indicators: • Market research demonstrates a need for a summer opera camp experience. • Sufficient participants register for a summer camp program. • Parental and teacher involvement in developing and participating in a summer camp program. B. Explore funding streams to support additional opera trunk presentations. Indicators: • Libraries and community venues indicate interest in hosting teaching artist presentations. • Funders identified to support trunk presentations.

12 of 18

GOAL: INCREASE MARKETING/COMMUNICATIONS CAPACITY, CONNECTIONS, and COMMUNITY For purposes of this plan, Pittsburgh Opera’s marketing/communications audience can be imagined as a set of concentric circles, with subscribers and donors at the center, ticket buyers in the next, arts consumers in the next, and prospects in the outer circle. The “80/20” rule applies to Pittsburgh Opera as much as any company: people in the two smallest circles constitute roughly 80% of ticket sales. It is paramount to retain the 80% and increase the 20%. Pittsburgh Opera has an unprecedented opportunity to establish priorities in capacity and connections that will increase the size of its community and give it the flexibility and immediacy needed to be viable in 21st-century marketing philosophy, practice, and success.

Priority 1: Increase marketing/communications capacity via technology and department structure In the last few years, our willingness to look at each season and each opera as a different “product,” along with implementation of new techniques and improvement of existing techniques, as well as exceptional leverage of what has been an adequate budget, have helped us stand out among Cultural District organizations and Opera America Level II companies.* Although we project that the website will continue to be the primary hub for all marketing and communications, we have reached a point where our flexibility and the marketing/communications department need to grow to continue to be effective. Indicators: • Website budget to increase steadily • Increased website functionality that is “evergreen” such as Flash for animation, technology that enables video-casting, a more sophisticated content management module, more flexibility in page design, etc. • Use of cutting-edge communications technology such as Twitter and texting technology; and a yearly evaluation of the technology we use, with the purpose of staying current with, if not ahead of, the way our customers communicate • Consistent and continued professional development for marketing and communications staff * based on feedback from other Cultural District and Opera America Level II marketing directors in periodic conference calls and joint meetings.

13 of 18

Priority 2: Increase marketing/communications connections via technology • • • •

Enable more and deeper institutional marketing and interaction with non-traditional media Increase ease of ticket buying for the exponential increases in people using mobile technology and purchase shortcuts such as using codes that transmit several layers of data Use technology to research our audiences’ psychographics and their relationship preferences and buying habits Increased ability to offer individualized services, customized subscriptions and specific discount offers on single tickets

Indicators: • Coverage in a more diverse range of publications and websites • Single tickets available via a mobile website • Increases in subscription orders as audiences are offered what they really want • Incremental yet steady increases in single ticket orders as consumers are connected to the best of both worlds: a multimedia experience, live in person

Priority 3: Increase the Pittsburgh Opera community with high-touch experiences, both via technology and in person • • • • • •

Continue to offer superior in-person customer service to subscribers, single ticket buyers, and groups Continue to offer access to opera artists and opera technology with engaging free events and behind-the-scenes experiences Continue to increase institutional marketing, as the first green opera company in the U.S. and as a real community partner in the Strip Continue to offer an accessible $10 price point Continued customer-centric focus in communication with diverse groups Increase opportunities for customers to participate more directly in the art form

Indicators: • Increases in opera customers coming from an experiential, rather than an educational paradigm • Continued robust attendance at “connection” events such as Brown Bags, Meet the Artists, and Pre-Opera Talks • Increased relevancy and resultant word-of-mouth advertising in the community and among customers • Increased collaboration with community groups, both arts and non-arts • Increased grant opportunities from a wider range of funders

14 of 18

GOAL: ENSURE THE FUTURE THROUGH SOLID FISCAL MANAGEMENT Strategies to maintain and grow support for Pittsburgh Opera coalesce around five basic areas: individual giving; institutional giving; special events; converting/extending capital campaign donors and planned giving. The opera company has been active in all of these areas except for planned giving over the last several years. Individual Giving Over the last several seasons, Pittsburgh Opera has made a conscious shift toward individual giving to reduce the company’s reliance on foundation, corporate and government funding. Foundations have been negatively affected by the economic climate as the stock market directly affects the amount of assets available for distribution. Corporate giving has been on a fairly steady decline in recent years, and government funding has reached a tenuous point. Last year’s Pennsylvania state budget reduced available funds in the Department of Community and Economic Development and the accompanying Educational Improvement Tax Credit program. Taking these reductions into account, Pittsburgh Opera saw a decrease of $400,000-500,000 in government funding for the 2009-2010 season. Expectations remain flat for 2010-2011, with the possibility that government funding may further decrease. For these reasons, Pittsburgh Opera has refocused its efforts on individual giving. In order to establish a stronger individual fundraising program, Pittsburgh Opera will focus on four specific segments of individual donors: •

New donors: Pittsburgh Opera began to use telefunding three years ago, primarily to acquire new donors. Development staff was not satisfied with the agency that provided this service during the 2009-2010 season and is currently fielding proposals from new agencies. We will be working closely with our new telefunding agency over the next several years to adopt best practices from other performing arts organizations. We will also be looking at prospects’ level and length of engagement with the opera company to determine who the best prospects are. o Indicators of success: Increasing the overall number of new donors; increasing the size of first gifts; shortening the length of time it takes to convert ticket-buyers into donors.

•

Membership-level ($250-$2,999) and Major ($3,000+) Donors: Techniques will include breaking down donors into highly-targeted and personalized direct-mail segments based on length of engagement, intensity of engagement and size of gift for more frequent donor contact; short, newsy communications with donors between solicitations; and, where appropriate, face-to-face solicitation by staff and board. Central to this effort will be the implementation of a stronger system for tracking solicitation, acknowledgement and other elements of stewardship; we believe that the Opera’s implementation and use of Tessitura for overall management of the development program can be significantly improved. With regard to major donors, the Opera has also invested in “on-demand” wealth and philanthropy screening services that will allow the company to identify high-net-worth prospects earlier in their engagement with the opera. In order to rebuild the board’s capacity to be effective individual fundraisers, staff will use this information to qualify prospects and to identify board members who can participate in cultivating and soliciting new major donors. Introducing the building to longtime donors and new prospects has been a focus of the cultivation program over the last several years. Over the next three years, the company will be leveraging its existing events to enhance our capacity for individual donor cultivation. 15 of 18

o

•

Indicators of success: Increased renewal rates across all segments of donors; increase in the value of gifts to the Annual Fund as donors complete Capital Campaign pledges; an increase in the number of donors.

Long-time donors regardless of size of gift. Pittsburgh Opera will be re-examining its relationships with long-time donors, in order to establish a meaningful and compelling recognition program for such donors, regardless of the size of their gift. Development staff will use this program to identify prospects that the company can reintroduce to its planned giving program. o Indicators of success: The indicators for success for this program will be modest over the next three years. The focus of the program is to increase the number of contacts that we make with donors about the company’s planned giving program, without a firm metric around the number of planned gifts closed or identified.

Institutional Giving: Gains are expected to be modest in the three component sources of support under this umbrella. • Corporations: Giving from businesses is comprised of two major sources: Annual Fund support and EITC support. o EITC: Because the pool of tax credits available for EIT giving has been declining, this pool of dollars is likely to continue to decline. To continue to keep funding as high as possible, the company will need to invest time in identifying additional businesses that are eligible for credits, inclined to apply for credits and willing to allocate funds to the opera. o Annual Fund: The opera company will employ board and other volunteer resources toward establishing closer relationships with current donors and new relationships with prospects/lapsed donors. Staff will also design and implement programs that will give corporate donors a backstage look at the opera company’s artists and its headquarters building – two of our key strengths. • Foundations: The company will engage in research to identify potential new foundation donors entering the sector. In addition, the staff will sustain relationships with current donors – pointing out programming opportunities in the new strategic plan that might encourage donors to increase their spending on the opera. However, the opportunities here are limited by the potential for recovery of foundation assets over the next three to four years. • Government: The opera company will continue to nurture its relationships with legislators in order to benefit from grants made at their initiative. Events: The opera company will continue to refine the way that it markets and promotes its growing portfolio of special events. The company will also seek to establish an events calendar that balances staff resources, artistic capacity and donor demand. Planned Giving: While the opera company has promoted its Monteverdi Society planned giving program for nearly a decade, the company’s need for operating cash and capital for the building campaign has diverted board and staff attention from implementing a planned giving program. Over the next several years, the opera company will review its relationships with donors who have a history of more than ten years of support (as ticket-buyers and/or donors) and begin a communications program to invite that segment of supporters to consider making planned gifts to the company. The development staff will also invite those prospects to participate in workshops designed to raise awareness of planned giving as an option for supporting the company.

16 of 18

GOAL: EXPAND SUSTAINABLE EFFORTS WITHIN THE BUILDING and THE COMMUNITY Pittsburgh Opera has obtained LEED (Leadership in Energy & Environmental Design: Existing Building) certification for its new home located at 2425 Liberty Avenue in the historic Strip District. The LEED program is a guide to improve efficiency which will lower operating costs and assure that our environment is safe and healthy for all occupants. As an opera company we depend on the health and comfort of our singers and these methods will insure greater productivity and a more rewarding experience. Additionally, following these initiatives will give Pittsburgh Opera a competitive advantage to funders.

Priority 1: Continue sustainability momentum to ensure that reapplication is possible Pittsburgh Opera is committed to recertification. This process will ensure that the green initiatives are followed and improved. Pittsburgh Opera should strive to improve its LEED rating with every submission. A. Continue preventative maintenance agreements These service plans are in place to maintain a high level of performance. Routine maintenance will also prevent emergency service calls. • Mechanical • Integrated Pest Management • Green Cleaning B. Continue purchasing Renewable Energy Credits and Greenhouse Gas Emission Reductions Pittsburgh Opera should continue to purchase enough Renewable Energy Credits and Greenhouse Gas Emission Reductions to off-set 100% of our usage. This is an effective way to reduce the environmental impact of our operations. C. Continue an aggressive recycling program Pittsburgh Opera will continue to recycle paper products, plastic, aluminum, glass, CFL light bulbs, batteries and packaging materials. The organization will explore ways to become a zero waste organization. D. Maintain or better the sustainable purchasing policy Pittsburgh Opera currently purchases 89% of our supplies from sustainable sources. We should explore new products to increase the percentage. E. Maintain ongoing Commissioning During the recertification process, Pittsburgh Opera should contract a LEED Commissioner (engineer) to test, evaluate and suggest ways to improve energy and water efficiency.

17 of 18

Priority 2: Increase staff commitment to strategies and behavioral policies already in place Employees that are engaged in the greening process will ensure the continuation of the processes already in place. Pittsburgh Opera should strive for 100% employee participation in the greening efforts. A. Expand the company’s Green Team (Team Verdi) This employee driven advisory board will meet quarterly to make sure all policies are being followed and to brainstorm ways to improve our efforts. B. Begin company workshops on sustainable living Arrange workshops with local companies (Bike Pittsburgh, Pennsylvania Recourse Council, Sustainable Pittsburgh and Green Building Alliance) to build awareness and explore ways to improve our environment.

Priority 3: Develop a stronger “sustainability” presence in the community through education, community outreach, and the Pittsburgh Opera website Pittsburgh Opera will strive to be a good role model for the community. Residents should be engaged in community projects that will expand our green initiatives. Building these relationships within the community will prove our innovative leadership and create good-will A. Participate in local community projects Pittsburgh Opera will encourage all employees to participate in local greening efforts (i.e. Earth Day Trash Pick-up). B. Dedicate a section of the Pittsburgh Opera website to our green initiatives The Facility Manager will work with the Marketing department to design and launch a green initiatives section on the Pittsburgh Opera website. We should explain the LEED process, outline our greening efforts, announce ways the community can get involved and publicize our green rentals. C. Join local sustainable business networks Team Verdi and other employees will research businesses and websites that will publicize our green initiatives. D. Publicize green building rentals Pittsburgh Opera will announce the opportunity to rent the building with the goal of producing a sustainable event. Incentives will be offered to those renters who wish to participate in this program.

Priority 4: Prepare for future building improvements The Facility Manager will work with advisors to develop plans and budgets for future building improvements including, but not limited to: • Replace mechanical systems • Install a building automation system • Provide sub-metering • Installing solar panels • Replacing the roof 18 of 18