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Archive: 2005, Number 1
Archive: 2005, Number 2

You may find the following article helpful if you are trying to sell art to corporations.
 
A Guide to Using the International Directory of Corporate Art Collections .....

By Laura Miner

 

Laura Miner is the former director of the Citibank  and JP Morgan

corporate art programs. She is  a private corporate art

 consultant  and  adjunct professor at  New York

 University teaching courses

on the "Business of art"

Before there was a Directory of Corporate Art Collections, there was no easy way to investigate the depth and breadth of this relatively new but already well‑diversified field.  Even now, there are only a few books and articles on the subject, but these tend to profile a small range of outstanding examples that few companies can hope to emulate.

 

If you want to gain a deeper understanding of what corporations are doing and why they are doing it ‑‑ and, one hopes, also to dispel the myths and misconceptions ‑‑ sit back and read your way through this latest edition.

 

You will notice certain trends.  For example, the expansion of "globalization" and the ensuing need for its expression through displays of art from many countries.  Similarly, "diversity" in a corporation's own workforce or clientele is celebrated through art. At the same time, there always has been the abiding theme of fondness for the home area, reflected in images from the past and the present,  or deliberate efforts to collect art created by local or regional artists.

 

Another trend that you will notice, is the increased focus on marketing through external art activities ‑‑ especially in the sponsorship of museum exhibitions.  You will find certain natural pairings between the corporate sponsor and the exhibition topic, not directly self‑serving, but nonetheless compellingly logical. For example, high‑tech industries  honoring the history of science and technology. Similarly, corporations with important overseas connections showcasing cultural achievements in each country.  And you will also come across the more general themes of excellence, innovation, and creativity with which certain corporations like to be identified.

 

 

 

What do corporations select?   

     

 

 This brings us to the topic of what kind of art corporations hang on their own walls.  The tie‑in with sponsorship or marketing exists internally, but not to the same degree. Sometimes art consultants will say, "If you hang this picture in the reception area your clients will know you are innovative as soon as they walk in the door."

 

The way business works, however, is not so instantaneous or atmospheric.  Corporate clients come through the door because they already know that the corporation is offering what they need and want, and as soon as they are no longer satisfied with either the goods, services, or price, they will leave ‑‑ no matter what kind of art is on the walls.  The art might enhance their experience or underline a certain theme, but in corporate life there is no substitute for the direct experience of a deeply satisfying business transaction.

 

Art is not a basic necessity.  In fact, in our culture it has been somewhat frowned upon as an unnecessary luxury or distracting frivolity. Some corporations do not even notice the absence of art or good design. Back in the days of traditional office design, with patterned curtains, architectural detailing, and attractive wooden furniture the eye had a lot to look at. As our culture became more visually‑oriented (think:  television) and offices became more stark and modern, the younger generation of office workers came to expect some artwork in the office. But it is not a deep tradition.  Therefore, artwork usually comes towards the bottom of the list in planning office space.

 

This is not the only reason why you will find a certain modesty in the scope of most corporate art collections. There are two other driving forces to consider:  money and environment. 

 

 

 

Money and Environment   

      

 

 First, whose money is being spent on art?  An individual, a partnership, or a privately held company all have more leeway for making decisions about how to spend their money. They might even do something that others would  consider rash, speculative, or just plain daring. 

 

On the other hand, a corporation has to be accountable to its stockholders just as a municipality has a responsibility to its taxpayers. And stockholders, as well as anyone else  who has a mind to, will notice anything that seems “overindulgent” in the budget, or in the decor. In some circles, all you have to say is "wood paneling" or "marble" and eyes begin to roll ‑‑ even when those finishes are more cost‑effective than the more humble‑looking or sounding alternatives.

 

Therefore, corporate art programs are best run with a certain sensitivity to local customs ‑‑ an office is not as luxurious as a home, for example ‑‑ and with the same guidelines and procedures used for all corporate purchasing. The thought should be:  are we getting the right thing for the right price? And those responsible for spending the money may be called upon to demonstrate that fact.

 

Rarely does one person alone have complete authority for making art purchases in a corporation. Usually there is some form of committee. It sounds funny if you say "buying art by committee" but in actual practice the committee serves to add checks and balances to the process, as well as to represent different "user groups" ‑‑ the people who have to live with the art on their walls ‑‑ around the corporation.  In some cases it is a courtesy or a reward for certain people to be on the committee.  In other companies, committee members might be brought in to add a particular expertise.

 

As you read through the Directory,  you will discover a variety of ways of structuring the review and  selection process. It may  take from a couple of weeks to a few months for proposals to make the rounds, for a committee to meet and reach a consensus, and for payment to be made. They say museums are worse in this respect because they have  so many more considerations and players involved in the museum acquisition process.

 

But if museums are slower at deciding, they have the great advantage over corporations of being able to control their  environment. Corporations are workplaces, not museums, and the art has to be able to survive the rougher conditions. This means avoiding art which cannot sustain big swings in temperature and humidity, since heat or air conditioning are turned down at night and on weekends. Fugitive inks and dyes will fade under the bright light conditions needed for office work. And there are no guards to enforce the admonition not to touch the artwork.  A museum does not  have to worry about mail carts or workmen with ladders accidentally bumping into the art, the way a corporation does. 

 

Size is also a serious consideration.  If the art is too small it is easier to steal. Tabletop sculptures, for example, are not a common feature in corporate art collections. Most office spaces need larger art than in domestic settings  because the areas are larger, as well as the viewing distances. But, if artwork is too large or too heavy it becomes a problem to move, and in a corporate environment,  one of the main activities is change ‑‑ moving departments in response to business needs, which may mean the wide wall that was perfect for displaying a certain painting is suddenly needed as the access point for a new department ‑‑ and the result is that the painting must be removed for doors to be cut in its place.

 

Flexibility in a corporate art collection is tremendously helpful. Having assortments of odd items is not as useful as groups and series which can be re‑deployed down a corridor or around a large conference room, as needed.

 

As you read through the descriptions of corporate collections you will see the tendency towards low maintenance items, moderately priced art, and logical groupings. There is often a "mission statement" or "project rationale" which sets the parameters.  Occasionally  you will find what might be true "museum pieces" but if you look closely you will see that when they were acquired they might have been good art, but did not have the price tag or prestige they have gained with time. Therefore, do not expect corporations to buy pieces to match what they have inherited from previous generations. They are more likely to lend their "museum pieces" to museum exhibitions or, as has been happening in the past decade, selling at auction when it no longer seems reasonable to hold the art in the collection. The Directory has numerous such examples, along with helpful bibliographical references for further research.

 

 

 

Art as an Investment

 

 

 

 

 Do corporations buy art for investment?   Apart from The British Rail Pension Fund, one almost never sees this as a conscious strategy.

 

If the corporate art collection appreciates in value,  that fact might be satisfying to corporate executives, but there is a much stronger desire to buy  that  people will want to continue to look at for a long time, rather than part with at the top of the market.   The idea of corporations buying art to keep in secret vaults is one of those misconceptions that keep surfacing.  Corporations already have many other profit‑making skills, so they leave the  "buying and selling art for profit" to others.

 

If you are selling art which you strongly believe is "a good investment" in the financial sense, the best way to communicate that fact is to offer a written buy‑back guarantee and to honor your commitment.  It also helps if you have an established track record of doing so.

 

The rule of thumb in buying art is "to buy what you love" rather than for investment. And the rule of investing is "buy low, sell high." If you wanted to research how this has played out in corporate art collecting, you would probably find that the best results were more in the range of "buy medium, love having it on the walls as long as you can, and sell medium."  In other words, if there is any need to consider selling the art at some point in the future, it is best not to fall in love with art  that has no resale or salvage value. The initial investment should be in art which is likely to have a secondary market.

 

What if the art is too new to have a secondary market yet? A good track record of sales, exhibitions, and reviews is evidence of a growing consensus among recognized experts that interest may grow in the future. "Buzz" is a marketing word, and I do not  mean to imply that it works the same way in the art world as it does with new commercial products or fashion trends.  It is simply that enthusiasm on the part of your own chosen peers and mentors is very compelling.

 

This is the true meaning of "nothing succeeds like success."  This, too, is why you meet resistance when you try to break into a new field,  and why an introduction or specific referral makes such a difference.

 

Always remember that in the corporate setting the decision to buy art is a business decision, not a personal one. It takes place in a certain context you might not be familiar with, and follows certain seemingly arcane rules, but it really does have its own internal logic.  So does the art world. 

 

I am not saying that  the business world and the art world are at opposite ends of the spectrum.  Perhaps they just do not know each other well enough.  But what I have observed is that they do speak different languages and start with quite different sets of assumptions.

 

 

 

How to bridge the gap?

        

 

 

  Fortunately, in the three decades since a small group of us found ourselves working in scattered isolation as interpreters between the business and art worlds, pioneering that new profession of corporate art management ‑‑ once described as a cross between being the director of a small museum and an air traffic controller ‑‑ the field has grown and matured to the point where it is now possible in many parts of the country to follow an academic course of study towards a degree in arts administration.

 

The profession of corporate art advising has also grown and evolved.  I cannot find sufficient words of praise for my colleagues in the field who have so generously shared the secrets of their success, their knowledge, and specific experiences, both informally and at conferences and seminars. 

 

There is a saying that true experts are those people who have already made every possible mistake in their field.  We have had the good fortune of being able to cover the territory by learning from each other's mistakes.  A word to the wise....

 

 

How to Make Effective Use of The International

Directory of Corporate Art Collections:

 

 

 

Mistake # 1

Using the Directory as a mailing list. 

Trust me on this one. 

 

It is far and away the best tool for penetrating the subject, for understanding what corporations are thinking about, what they are doing with art, how they do it, and why. The International Directory of Corporate Art Collections is unique in its level of documentation but it was never meant to be a prospector's tool. There are better resources for that information.

 

If you really want to reach a corporation at the best moment to offer your services,  contact them when their building is still a hole in the ground, before anybody else has caught wind of a potential project. The next best thing is while the structural steel is going up. That happens to be the stage at which I was hired for both my jobs.  By the time you see a finished building or read an entry in the Directory, I don't want to say it is too late, but there is most likely a full range of successful resources already selected and doing the work.

 

But don't be discouraged. Whatever your particular niche is, the Directory is a great stimulus for "thinking outside of the box" and identifying new opportunities for yourself.

 

You can use the Directory very well as the starting point for a targeted marketing effort. Think "pinpoint."  Use the Directory as a "crib sheet" while you do your homework and study for the "final exam." 

 

Your real homework will be not just using this Directory to get vital background information, but also taking the initiative of getting up‑to‑the‑minute information. Nowadays, it is not just a question of change ‑‑ it is more like weekly upheavals in the corporate world. So, a corporation which sent in a rosy description to The Directory this season might be laying off thousands of workers by the time you want to approach them and spending money on art may have turned into a touchy subject. You  need to know these things.

 

Your best sources for additional information will be the bibliographical references and the corporate websites listed in the directory, Internet search engines, database searches for newspaper, business magazine, and art magazine articles.  Keep in mind that the business world and the art world function in separate spheres. It will take a certain amount of critical thinking on your part,  to develop a full and accurate picture of the territory you are looking to enter and what your role might be.  Give yourself enough time to digest the information and test your assumptions before you take action.

 

Without giving away too many secrets here, it might be encouraging for you to know that doing exactly that kind of homework is what landed me both my jobs directing corporate art programs. There is no substitute for being up‑to‑date and knowing the issues. When you understand the strengths and weaknesses, the reputation, the cast of characters, and the psychology involved, you are in a much better position to offer real help.

 

And believe me when I say that in this competitive economy, where the pace of work is escalating beyond measure, real help is needed and will be appreciated.

 

For some inexplicable reason, many people seem to think that all you have to do is send out a mass  mailing and this effort alone will generate sales. But mass mailings work best for mass‑produced goods ‑‑ and that definitely does not include art!

 

You know this from your own personal experience.  When you pick up the mail, you immediately spot the difference between what is really meant for you and what is normally referred to as "junk mail."   In your own experience, how often does unsolicited mail include something you really want or need?  How do you feel as you wade through it?  Does it help when strangers phone during dinner to ask you want to buy life insurance or switch telephone carriers?

 

Some might object to this analogy with the argument that surely those people responsible for corporate art collections should want to know as much as possible about what artists are doing out there. In a small enough community everybody does know what is going on.  They see one another regularly. 

 

Unfortunately, in bigger and more complex areas this is impossible. You cannot run a corporate art collection or have any other full‑time job and  simultaneously be the person who keeps up‑to‑date with what is being produced in the art world. I hesitate to say "Food Chain" for the process which has evolved to distribute art in a complex market, but there are people who specialize in finding new talent and others who specialize in showcasing and promoting it. 

 

Some subsidized, public, and not‑for‑profit organizations do this for educational purposes ‑‑ exhibiting art or building registries for educational, informational, or purely recreational and pleasurable purposes.  This is an excellent starting point for emerging artists to have their work introduced to the public.

 

For commercial galleries ‑‑ those people who must generate sufficient profits to keep the lights on, to meet a payroll, and pay the rent ‑‑ the process of selecting a stable of artists must take the salability question very seriously.  And once they  hit their stride, successful art dealers concentrate on their core clientele and their stable of artists.

 

In a competitive environment how much time, money, and effort can anybody afford to spend experimenting?  Focus helps.  Relying on experienced specialists helps.  When it comes to choosing art, private collectors and museum curators do not have the pressure that businesses have: Time is Money.  For this reason alone you can conclude that mass mailings are wasteful.

 

I had a unique opportunity to measure the effect of mass mailings when the first corporate art directory was published,  because there was an accidental, unique identifier in the listing for my address. It seemed to take on a life of its own, generating an in‑box full of offers for things I could not use, and interruptions with telephone solicitations. To tell the truth, in the 17 years I spent buying art for corporations, not once did any mass mailing that came from people who looked me up in the Directory contain anything within the range of what I might have been able to use. Often it was way off the mark.  Yet, it would have been wonderful  had some enterprising person used the Directory in combination with news of the business world to bring to my attention material that really did apply to current and future needs.

 

For your sake, and since I am not personally involved in buying or selling anything, I tested my own hypothesis about using the Directory as a starting point for targeted marketing and as a way of thinking outside the box. 

 

First, I used the search word "anniversary" because I was curious to know how art might be used to commemorate milestone anniversaries.  The results were surprising and gave me some fresh ideas and perspectives about what can be done.

 

If I did have something to sell and identified an institution with a milestone anniversary on the horizon a few years hence, I would be researching that company's profile and working up a proposal which, of course, would make reference to what similar firms did for their anniversaries, by way of comparison and which would be tailored specifically to support their mission. Behind every corporate project area is a "project rationale."

 

A note for artists:

 

If you read books and articles on the business side of being an artist, or on sales techniques in general, you will find they all give the same excellent, basic advice:

 

‑‑ Learn how your particular field actually functions.

‑‑ Aim for a reasonable, sensible fit and target your marketing there.

‑‑ Find out how people like to be approached and  follow procedures.

‑‑ The more your know about what's going on, the more effective you will be:  Knowledge is Power.

‑‑ You do not need to make a lavish presentation. It just has to look professional.

 

Other Uses for The Directory.

A note for people outside the art world‑‑

investors, journalists, politicians, job hunters, the business community, etc.

 

There is a wealth of competitive intelligence about corporations in this directory ‑‑ not just information about art, but about corporations'  thinking, habits, aspirations, and strategy.

 

You get a unique window inside the Corporation when you look through the vantage point of the corporate art collection. You get a sense of the outreach and marketing thrust when you read the sections on sponsorship and community participation.

 

There are also great  tid‑bits for advanced "cocktail party conversation" ‑‑ conversational ice‑breakers, and light banter, not to mention serious food for thought and discussion. For example, I searched both the domestic and international sections of the Directory for "China" and "Chinese" because soon I am going to be talking to someone who is active in US‑Chinese relations. I am not familiar with this field, but now I have some interesting observations to offer about where and how Chinese art is featured in corporate art collections and in the hospitality industry.

 

As you know, it is a great pleasure to be fed new and interesting bits of information in your field! And an even greater pleasure to be the one who has the information!! 

 

Published by International Art Alliance, Copyright 2004 / 2005

 

 

For further information on the International Directory of Corporate Art Collections, please see the website at 

 

http://home.netcom.com/~the-iaa/directoryofcorporateart

 

The Humanities Exchange, PO Box 1608, Largo, FL 33779
Tel: 514-935-1228; Fax: 514-935-1299