Hello, I'm Andreas and I have a question about the processing of a very specific case. How do I proceed with a case from the public sector in which a municipality has to decide to close one of three theatres (theatre A, B and C) due to a tight budget. The task now is to make a recommendation as to which theatre I would close after reviewing all the documents. Thank you for your help.

Hi Andreas,

Interesting case question here. Tackling a decision like this, especially when it involves something as valued as local theatres, is definitely challenging. Here’s how I’d approach it:

1. Understand the Objective

First, it's crucial to get crystal clear on the goal: You need to recommend which theatre to close to help the municipality manage its tight budget. But beyond the numbers, it’s also about balancing the cultural impact and community sentiment.

2. Dive into the Data

• Financials: Start by comparing the financial health of each theatre—things like operating costs, revenue, and any subsidies they receive. The goal here is to see which theatre is the most expensive to run relative to the value it brings.
• Attendance & Usage: How popular is each theatre? Look at visitor numbers, event frequency, and how well each theatre is utilized. A theatre with low attendance and high costs might be a strong candidate for closure.
• Community Impact: What role does each theatre play in the community? Are any of them deeply tied to local culture or demographics? This could make closing them more sensitive.
• Strategic Relevance: Are there any upcoming projects or trends that could change the importance of any of these theatres? For instance, is one theatre set to benefit from nearby development that could boost its relevance?

3. Evaluate the Options

• Impact of Closure: Consider what would happen if each theatre were closed—both financially and culturally. How much would the municipality save? What would the community lose? Is there a way to minimize the impact, like moving some programs to another theatre?
• Repurposing Possibilities: Could any of the theatres be repurposed? Sometimes, finding a new use for a space can be a smart alternative to outright closure.

4. Make Your Recommendation

After going through all this, you’ll want to choose the theatre that makes the most sense to close—likely the one that’s costly to maintain but doesn’t bring much to the table in terms of attendance or community value. The key is to back up your recommendation with clear reasons, showing how the community’s needs will still be met even after the closure.

Hi Andreas,

I would be happy to share my thoughts on your situation:

• First of all, can you please provide a proposal that I can review?
• Moreover, generally speaking, when facing different options, you may want to determine a set of criteria to base your decision on, allocate specific weights to the criteria, and then score the options based on these criteria (which is essentially developing and executing a scoring model).

If you would like a more detailed discussion on how to best prepare for your upcoming interviews, please don't hesitate to contact me directly.

Best,

Hagen