McMahon says in its real estate role, the Cultural Trust, like any other business, constantly evaluates how it manages these properties. In particular, the organization pays full real estate tax and generates amusement tax for the city on certain for-profit properties, generating a need for as much management efficiency as possible.
“In some instances we actually have management agreements with organizations that do a better job than we might do to operate a certain facility like a garage,” he says.
By understanding when to outsource, based on the situation, the Cultural Trust is able to use these areas to help subsidize what it does.
Collaborating for success
By working together, rather than in your own separate silos, you can accomplish a lot more — something McMahon has personally learned in his more than 10 years leading the Cultural Trust.
The Pittsburgh region in general has an incredible collaboration among various leaders. McMahon says there is a lot of crossover of nonprofit and for-profit boards. He serves on other boards, and the board members who serve on the Cultural Trust’s board come from other organizations and boards.
“That helps re-enforce that communication, simply because you’re talking to people directly on a day-to-day basis about what they are doing, and they are hearing what you’re doing,” he says. “And that generally leads to greater communication and terrific collaboration opportunities.”
McMahon says when the city hosted the G20 Leaders Summit in 2009, it galvanized the community, bringing together differing factions.
“We were really able to do that as a midsized city because we had those kinds of collaborations and those kind of communication networks already established,” he says. “We didn’t have to start from scratch.”
And these connections are becoming even more important today to how the Cultural Trust operates.
McMahon says when it was created 30 years ago, the Cultural Trust was the only game in town. Now, there are a number of other organizations moving into a large economic development role.
“It does require more conversation,” he says. “But the good news is that it seems to be something that Pittsburgh excels in.”
Takeaways:
- Budgeting and forecasting must account for inflated, temporary revenue streams.
- Evaluating management effectiveness helps determine when to outsource.
- Collaborating across different areas allows you to accomplish more.
The McMahon File:
Name: J. Kevin McMahon
Title: President and CEO
Company: Pittsburgh Cultural Trust
Born: Pittsburgh, but moved as an infant to Connecticut
Education: Double major in psychology and economics at Hiram College in Ohio; a master’s degree in business administration from City University of New York.
What was your first job, and what did you learn from it? My very first job in high school was at a grocery store in Connecticut, a Stop & Shop, doing all kinds of things. I learned that hard work pays off. We were kids and we worked pretty hard and sometimes for long hours.
Do you have a favorite show, play or event that the Cultural Trust has put on? No. I’m going to get in trouble no matter what show I say.
I mean, I like all different forms of arts and culture, and it would be very difficult for me to identify one single show that’s my favorite. I have dozens and dozens of favorites running across all different genres from music to theatre to dance to jazz.
What about a particular show or event that was a big coup? I can think of lots, but one big coup we had last year that we brought to Pittsburgh was our large 45-foot tall yellow rubber duck. That was our most recent coup. That was one of our biggest activities and one of my more recent favorite things that we’ve done.
If you didn’t have your current job, what is something you have always wanted to do? I don’t know, maybe a builder or architect.
You renovated your house, right? Yes. I love tinkering around, but unfortunately there’s not a lot of time to do that kind of thing.
What is the best business advice you ever received? There are several things, but one that I certainly try to do is to be as open-minded, transparent and communicative as possible. You reach better decisions when you’re open-minded, you have more input and you’re willing to listen.
I think that’s maybe one of the most important parts of not only leadership, but also life in general.
