Royal Opera House: Performance Evaluation and Improvement Strategies

This report provides a comprehensive evaluation of the Royal Opera House's operational performance. It begins with an analysis of the business, highlighting its significance in the arts and culture industry, its contribution to the economy, and its historical background. The report then delves into the operational performance, assessing its efficiency, effectiveness, and the use of various performance measures. It identifies key issues such as infrastructural development, the need to attract a modern audience, and the balance between quality shows and modern customer preferences. The analysis also examines the impact of public funding, employment rates, and the challenges faced by opera companies. Finally, the report outlines short-term actions to improve operational performance and venue services, addressing issues related to infrastructure, audience engagement, and collaborative approaches. The report concludes with a summary of the key findings and recommendations for enhancing the Royal Opera House's performance and ensuring its continued success.

Running head: ROYAL OPERA HOUSE
Evaluating the Performance of a Venue
[Royal Opera House]
Name of the student:
Name of the university:
Author note:

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Table of Contents
1. A short analysis and explanation of the nature of the business...................................................2
2. An evaluation of the venue's operational performance, giving any insights or explanations
about the operational performance, using a variety of performance measures (e.g. input, output,
efficiency, effectiveness etc.)..........................................................................................................3
3. An outline of short-term actions to improve the operational performance and the venue
services like legal regulations such as health and safety legislation...............................................7
4. Conclusion.................................................................................................................................10
Bibliography..................................................................................................................................12
Appendices....................................................................................................................................16
1. The Royal Opera House: Annual Report (2016/17)..............................................................16
2. Graphical Presentation of ROH Business in 2016/17............................................................17
3. 2016/17 year for ROH in summary.......................................................................................18
4. Operation Evaluation Process................................................................................................19

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1. A short analysis and explanation of the nature of the business
The Royal Opera House is home to an opera house and major arts events. It is based in
Covent Garden in Central London. The building has undergone a quiet of renovation works n
past. The theatre became popular as Royal Opera House in 1892. The current building is the third
theatre as there have been reconstructions twice in the past. The royal opera house is not only
making business to the owners but is also contributing to the national economy. Undeniably, it
has remained a profitable venture over the years. The rate of profitability continues to expand
further. The total income was equal to £141.0M in 2017 which is more than it was in 2016 (Lees
and Melhuish 2015).
The business belongs to Art related performance and is one of the oldest industries not
just in the United Kingdom but in the world. It is also one of the most sellable industries which
continue to prove its worth for the industry and also for its owners. In a similar way, the business
and the event industry has remained a popular and potential money spinner for the United
Kingdom. There are people who love performances which are purely based on arts. Such
performances are a great resource to communicate a message which may significantly have its
existence in the past. The historical events of a country can be communicated in various ways
such as through mainstream movies and also the art. Nevertheless, art is one of the most
attractive and widely loveable things which have been able to pull a huge population towards it.
The industry also has a firm foothold in the United Kingdom where the art markets are
continually booming. Notably, the country is one of the world’s leading markets for art lovers.
The antiques and arts market generate around 8 billion British pounds a year (Statista.com 2018).

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The range of works which is related with the arts market is generally those covering the
events from 1707 till the date of the Kingdom of Great Britain. The events generally cover the
English art, Welsh art, Irish art and Scottish art. It also covers some the works from the Western
art history (Yoon 2017). On a broader aspect, this particular study is based on analyzing the
business performance of chosen event firm the Royal Opera House. The purpose is being served
in this study with an evaluation of the firms’ operational performances. It is then followed by
short-term actions to improve the performance if there are areas of improvement for the chosen
case study firm.
2. An evaluation of the venue's operational performance, giving any insights or
explanations about the operational performance, using a variety of performance measures
(e.g. input, output, efficiency, effectiveness etc.)
Operational performance is an integral part of business which requires the assistance of
both concepts and the practical application of established & relevant strategies. According to
(Annarelli and Nonino 2016), the operation runs smoother when established and proven concepts
are successfully applied to it. It does mean a lot and conveys the importance of a timely usage of
various operational concepts. The process which is identified to conduct the needs assessment is
as follows (Osei-Kyei and Chan 2017):
Purposes: It is just about setting the purposes and the relevant objectives. The progress is
conducted in accordance with the set objectives.
Data: These are all such that gives an identification and understanding of the areas of
improvement. Notably, a change management theory can never be applicable to address the
issues in marketing & sales department. Data can be collected from a variety of resources like

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the company’s annual report, the government’s report on the industry, the market statistics and
others.
Analysis: The collected data is then analysed against the set objectives and also the chosen
theoretical framework for the action.
Relevant actions: This would include identifying the appropriate tools to resolve the issue and
enhance the competency level.
Review the progress: Once the relevant tools are implemented, it could not be left as it is. It is the
regular needs to identify or monitor the progress of the implemented strategy or strategies.
Evaluation of the Royal Opera House
The role of art & culture industry cannot be ignored in terms of job opportunities creation
and the contribution to the country’s economy. It creates employment across various roles &
responsibilities like performance, music and visual arts economy. The rate of employment is
continuously increasing which makes this a potential strategy for the United Kingdom
(Statista.com 2018). Despite such values, the industry still largely relies on public funding. Arts
Council England in England provides government funding to the arts industry. The portfolio of
organisations associated with the Royal Opera House is regularly being funded through public
funding (Statista.com 2018). It just explains or highlights the dependency of the industry on the
investments. The innovation or the suitable action to attract modern customers and retain the old
age customers would likely be facing the challenges every time the change is required. The
identified issue must be addressed with effective strategies, so that, the Royal Opera House does
not suffer from it and continues to implement the innovative thoughts to attract the large
audience base.

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ROH seems to have a huge impact on the art lovers. This is the reason why Covent
Garden is largely popular because of the Royal Opera House. Notably, the building of ROH does
not look like that much attractive. This can be said that it does not make a much of difference to
the Covent Garden. However, the contents of the art hall and the class of shows being played on
the stage makes ROH a must visit place for the global audience. Notably, the art making and
shows are one of the biggest attractions of the Covent Garden (Guachalla 2017). The analysis
identifies one issue which is the infrastructural development of the Royal Opera House. The
infrastructural development should also be taken care with utmost and feasible strategies, so that,
the building turns out to be an attractive and engaging place to visit.
The open door policy of the Royal Opera House might play an impactful role in uplifting
its reputation in the country and also at the global level. The open door policy is being made to
allow and encourage the modern day customers who rarely have desires for art shows. They are
normally very huge lovers of mainstream movies. The Royal Opera House perhaps sensed the
urgency for attracting the youth and modern-day population to attain a sustained business
performance. The open door policy allows youth audience visiting the ROH and becoming a part
of it by witnessing the live relays of ongoing ballet and opera productions (Guachalla 2017). This
was done for purposes as such the development of audience and the making of art shows which
are appealing at the social level. The social inclusion was missing in the Royal Opera House and
the firm has also responded to it (Guachalla 2017). The issue that the policy faces is the
maintenance of a balance between quality shows and the practices as modern day customers
might not be aware of the fundamentals of art shows. It means that the participation of the
younger population must not hamper the quality shows which are evidently popular with the
Royal Opera House. Additionally, the infrastructural developments would also be tested as the

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youth or modern-day customers need or demand the ample of facilities into and changes to an art
shows company. They will feel engaged in it once they are pleased with every factor which they
expect from this industry. They look for career prospects which are hidden in a fact that to what
extent the Royal Opera House is able to pull the audience and increment its profit margins. Apart
from career prospects, youth lovers of art shows and drama making are also concerned with the
infrastructural developments. It means that the Royal Opera House will need to make the regular
investments in incrementing the standards of art shows, the drama making and the infrastructure
(Alrhaimi and Mugableh 2017).
Notably, the number of audiences is rising for the ballet companies not for opera in the
Royal Opera House in the last few years. These are the audience for mid and large-scale live
performances. The evidence for the fact can be traced in the number of audiences increased or
decreased between the period 2008/9 and 2011/12. The number of audience for the performance
by the three ballet companies grew from c.700,000 to c.850,000 per annum. The number of
performance increased from 515 to 536 on an annual basis (Artscouncil.org.uk 2018). On the
other hand, the four opera companies had witnessed the significant drops as number or audience
dropped from c.700,000 to c.650,000 over the same period. The number of drama shows
decreased from 448 to 415 per annum (Artscouncil.org.uk 2018). Both Opera and Ballet are
working on their potentials; however, ballet companies have been able to make the huge profits.
Opera seems to be working more on new works to attract the youth and the doer day population.
Cinema screenings including both of Opera’s and Ballet’s recorded and live performances are
potentially attracting the new audiences (Artscouncil.org.uk 2018). The issue found in this
analysis is related with the overall developments of the quality shows of opera companies in the

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Royal Opera House. Opera companies, in particular, need to work upon the quality of shows and
the infrastructural developments in order to remain profitable and crowd puller.
Touring companies and venues lack a collaborative approach and work. This may be an
issue which is affecting the crowd pulling the new audience developments for ballet and opera
companies. Touring companies have the frustrating experience with the venue and claim to have
a not so good support from the venue. The venue denies sharing the detailed data of audience.
On the other hand, venues’ expertise claims that their hard efforts in selling the tickets do not
receive valuable comments from the touring companies. It is also claimed that no consultation is
made over education programmes and prices (Trimarchi 2016).
The Royal Opera House has also been in criticism for some unexpected thing. The
cleaners of the Royal Opera House had participated in a protest “Bafta strike action” held in
2014. The protestors were asking the London living wage. The Royal Opera House according to
a Facebook post claimed to offer the London living wage to its cleaners to protect its reputation
from being distorted. However, the same reporting was not officially confirmed on the news as
well. However, ROH had realised the urgency to respond to the call and the company did it
actually by fulfilling the demands for London living wage (Politics.co.uk 2018). It is important
for the Royal Opera House that it takes necessary actions to address such issues. Actually, such
thing is one of the essential elements of the organisational values.
3. An outline of short-term actions to improve the operational performance and the venue
services like legal regulations such as health and safety legislation
Short-term actions addressing the different identified issues in the aforesaid section
Issues Possible short-term actions

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Investments or the availability of funds The process of investment or funding is very
complicated as the portfolio of ballet and opera
companies rely largely on the Art Council England.
It is, therefore, necessary for ROH to work in
collaboration with touring companies to produce a
much better operational output and enhance its
attractiveness level for the audience. There is a
need to produce quality shows in both mid and
large-scale formats (Kruger and Saayman 2017).
The potential growth in the audience base for both
ballet and opera companies will certainly draw a
much healthier support from the Art Council
England.
Infrastructural development is required There is a need for infrastructural development, so
that, the ROH building also becomes a point of
attraction to those coming to Covent Garden. It is
so far not so attractive and is not the crowd puller
to Covent Garden. The Royal Opera House has
maintained good profits in 2016 and 2017. The
profits were respectively equal to £0.2m in 2016
and 2017 (S3-eu-west-1.amazonaws.com 2018).
ROH should utilise a sum of the total profit and use
it for promoting the infrastructural developments.
Open door policy faces certain challenges like
audience development and the production of
Open door policy of the Royal Opera House faces
the challenge in terms of audience development

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quality shows and the maintenance of quality shows. The policy
is indeed a potential move; however, it should
never be suffered from increasing the number of
younger participants. There is a need for younger
generations’ association with the ROH to attain a
sustained business. However, quality of shows
should always remain a primary objective (Pessôa
et al. 2015).
Missing quality shows in opera companies Opera companies are more concerned with new
work. This may be to attract the contemporary
audience and those with good analytical
understanding. However, it is eventually hampering
the other categories of audience. Ballet companies
are expanding in terms of the audience base.
Hence, opera must maintain a balance between
experimental and the regular shows (Abdel-
Maksoud, Cheffi and Ghoudi 2016).
A collaborative work between touring companies
and venues is missing
Undeniably, a lot can be made to happen in regards
to attracting the audience for ballet and opera
performances. This is possible only if the touring
companies and the venues work together on agreed
terms of business. The exchange of valuable
supports from either of the side will be seen as an
important move thereof (Podgórski 2015). The Arts
Council of England should necessarily play an
important role in improving the working

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relationships between the touring companies and
the venues. An improved collaboration will also
improve the business performance of the opera
companies. Notably, those firms have struggled in
past in pulling the crowds and increasing the
number of shows for both mid and large-scale
shows.
Improvement of venue services Venue services such as health & safety aspect of
employees & also the audience and the minimum
wage payment should be maintained. Health and
safety aspects can be effectively implemented by
strictly adhering to the fire safety policies at the
workplace, smoking at work policy and workplace
temperatures policy (Gov.uk 2018).
4. Conclusion
In summary, this can be said that the Royal Opera House is a reputed company in the
United Kingdom. People at the global level are aware of it. It showcases mainly the large and
mid-scale shows of ballet and opera companies. Ballet companies are contributing to the number
of audiences every year. Opera companies have struggled to increase the audience base. Art
Council England must take the appropriate actions to form a good bonding of work between
touring companies and the venues to promote a healthy development of the ROH. Investments
must also be made over the infrastructural developments to make the house much more attractive

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and engaging as well. It should actually maintain its legacy impact along with engaging features
for the youth population.