Welcome!
Objective: toto provide participants Objective: provide participants withideas ideas and inspiration to develop with and i...
Strategy – useful tools that really work             Simon Burne               July 2011
Objective• To share a set of easy to use tools to help  you to make fundraising strategies that  work
Four key drivers
Thinking inside the box
80% Rule: Roughly right – not precisely wrong
What is Strategy?It is notA structureA list of things to doTacticsA big document that decorates your shelf  and gathers dust
We trained hard… but it seemed that every time wewere beginning to form up into teams, we would bereorganised. I was to le...
“I always leave my strategy on thetrain in the hope that a competitor  will pick it up and believe that’s   what we’re rea...
“However beautiful the strategy,you should occasionally look at the            results.”                 Winston Churchill
“Strategy without tactics is the slowest route to victory. Tacticswithout strategy is the noise before              defeat...
donor“A satisfied customer is the best    business strategy of all.” fundraising                 Michael Leboeuf
•   Knowing where we are now•   Knowing where we want to get to•   Knowing how we’re going to get there•   It’s about    •...
In times of crisis…    The horizon gets closerSo strategies get shorter
Too much to deal with!
Risk Management               Paralysis by analysisStrategic options   Internal analysis   No change
How do we escape?
Or… 8 things to do with a box
1. SWOT  Strengths     WeaknessesOpportunities     Threats
Internal Bridges & Barriers
Internal Bridges• Processes that work• Key allies• Core skills and competencies• Networks and contacts• Beneficiaries
Internal Bridges•   Recognise them•   Celebrate them•   Strengthen them•   Use them•   Learn from them
Internal Barriers•   Lack of expertise•   Finance•   Service Staff•   Lack of information•   Poorly-defined need•   Lack o...
Internal Barriers• Form alliances to overcome  them• Work around them• Find a way through them• Accept your limitations
2. PESTPolitical    EconomicSocial       Technical
External Market FactorsFocus on top 3-4 key external factors   which could have a genuine major   impact (+/-) on fundrais...
External Market FactorsDevelop scenarios for each key factor:     • In-depth knowledge of factor     • Predict range of po...
BenchmarkingDevelop links with similar NGOs, share  information, monitor positionIncome:cost ratios of each activityCompar...
3a. Boston Matrix (Products)
Product Development Cycle             NeedEvaluate   Innovate!   Audience            Product
Product Lifecycle                R&D investment          maintenance   cullProfitability                                 T...
Product Lifecycle                R&D investment          maintenance   cullProfitability                                 T...
Product Lifecycle                R&D investment          maintenance   cullProfitability                                 T...
Building your fundraising£                       Time
Boston Matrix                            PROBLEM CHILDREN                           Internet Monthly Giving            Upg...
Boston MatrixRISING STARS                PROBLEM CHILDREN                          InternetMonthly Giving            Upgra...
Value (ROI) vs. Volume (potential)                       volume       1                  3             2value             ...
Ease of implementation vs. impact                     impact     Must haves       Low-hanging fruit                       ...
3b. Boston Matrix (Problems)           +       Devils       MysteronsLevel ofimpact                    Sacred      Sad    ...
3b. Boston Matrix (Problems)Devils   – Focus on the four biggest   – Develop clear strategies for neutralisingMysterons   ...
3c. Boston Matrix (Competitors)  Rising Stars           Problem Children Potential threats Ideas to copy          Ideas to...
CompetitorsWhat I will do   What I want to know        The questions I need     How can I find thiswith the               ...
4. The Ansoff Matrix                                                 ?                  new                             ta...
E.G. Monthly Giving                               New areas                               Older age profile               ...
Prioritising your investment choices
• How do you compare apples and oranges? EG –  a new shop versus a new DM campaign?• ROI doesn’t work – too short-term• IR...
5. Investment Sailing Boat                    Net returnMarket                              Marketpotential               ...
5. Investment Sailing Boat                    Net returnMarket                              Marketpotential               ...
Goals & Objectives
Goals & Objectives• Important to set targets.• Objectives can divide as well as motivate.• Objectives need to be set that ...
6. Balanced Scorecard           Financial          Processes                       Vision &                       Strategy...
Objective-SettingSMART•   Strategic•   Measurable•   Achievable•   Realistic•   Time-limited
Objective-Setting SMART •   Scary •   Mouthwatering •   Ambitious •   Rare •   Team-building
7. Strategic Risk Analysis                 ImpactStakeholders               Finances                                      ...
8. Vulnerability Index                  Very importantRelatively                               Very  safe                 ...
Last thoughts…
“We don’t see things                       as they are.                  We see them as we are”Ref.: Anais Nin
Innovation   “If we don’t make utter fools of     ourselves from time to time,        we grow smug - that is,         we d...
‘We are taught to  solve problems not to recognise  opportunities.’
“Every act of creation                  is first of all an act of                    destruction”Ref.: P. Picaso
“We’ve made a lot of mistakes. Andwe’ve been very lucky at times. Someof our products are things you mightsay we’ve just s...
A culture of successful risk          ‘If you don’t screw          up at least once in         your first year with       ...
The Formula for Failure‘There is no formula for  success. But there is a formula for failure, and  that is trying to pleas...
The truest word… Whether you believeyou can or whether you  believe you can’t,     you’re right                    Henry F...
The two most important words in         fundraising
Fundraising Strategy - useful tools that really work
Fundraising Strategy - useful tools that really work
Fundraising Strategy - useful tools that really work
Fundraising Strategy - useful tools that really work
Fundraising Strategy - useful tools that really work
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Fundraising Strategy - useful tools that really work

  1. 1. Welcome!
  2. 2. Objective: toto provide participants Objective: provide participants withideas ideas and inspiration to develop with and inspiration to develop theirfundraising and to shareto share skills their fundraising and skills andexperiences with each other. other. and experiences with each
  3. 3. Strategy – useful tools that really work Simon Burne July 2011
  4. 4. Objective• To share a set of easy to use tools to help you to make fundraising strategies that work
  5. 5. Four key drivers
  6. 6. Thinking inside the box
  7. 7. 80% Rule: Roughly right – not precisely wrong
  8. 8. What is Strategy?It is notA structureA list of things to doTacticsA big document that decorates your shelf and gathers dust
  9. 9. We trained hard… but it seemed that every time wewere beginning to form up into teams, we would bereorganised. I was to learn later in life that we tend to meet any new situation by reorganising and awonderful method it can be for creating the illusion of progress, while producing confusion, inefficiency and demoralisation Petronius Arbiter 210 BC
  10. 10. “I always leave my strategy on thetrain in the hope that a competitor will pick it up and believe that’s what we’re really going to do” Denis Stevenson
  11. 11. “However beautiful the strategy,you should occasionally look at the results.” Winston Churchill
  12. 12. “Strategy without tactics is the slowest route to victory. Tacticswithout strategy is the noise before defeat.” Sun Tzu 500 BC
  13. 13. donor“A satisfied customer is the best business strategy of all.” fundraising Michael Leboeuf
  14. 14. • Knowing where we are now• Knowing where we want to get to• Knowing how we’re going to get there• It’s about • Internal stuff • External stuff • Matching the two • Planning for success - prioritising • Monitoring the results • Being flexible
  15. 15. In times of crisis… The horizon gets closerSo strategies get shorter
  16. 16. Too much to deal with!
  17. 17. Risk Management Paralysis by analysisStrategic options Internal analysis No change
  18. 18. How do we escape?
  19. 19. Or… 8 things to do with a box
  20. 20. 1. SWOT Strengths WeaknessesOpportunities Threats
  21. 21. Internal Bridges & Barriers
  22. 22. Internal Bridges• Processes that work• Key allies• Core skills and competencies• Networks and contacts• Beneficiaries
  23. 23. Internal Bridges• Recognise them• Celebrate them• Strengthen them• Use them• Learn from them
  24. 24. Internal Barriers• Lack of expertise• Finance• Service Staff• Lack of information• Poorly-defined need• Lack of strategy• Processes that don’t work• No resources
  25. 25. Internal Barriers• Form alliances to overcome them• Work around them• Find a way through them• Accept your limitations
  26. 26. 2. PESTPolitical EconomicSocial Technical
  27. 27. External Market FactorsFocus on top 3-4 key external factors which could have a genuine major impact (+/-) on fundraising success.Invest resources in these areas = do a few things well.
  28. 28. External Market FactorsDevelop scenarios for each key factor: • In-depth knowledge of factor • Predict range of possible outcomes • For each outcome: – What would be impact on your fundraising for each? – What action would you need to take to maximise benefits/minimise problems? – What resources will you need? – How will you monitor the situation? – How will you be prepared to respond quickly?
  29. 29. BenchmarkingDevelop links with similar NGOs, share information, monitor positionIncome:cost ratios of each activityComparative size of each activityComparative growth of each activityMystery shopping
  30. 30. 3a. Boston Matrix (Products)
  31. 31. Product Development Cycle NeedEvaluate Innovate! Audience Product
  32. 32. Product Lifecycle R&D investment maintenance cullProfitability Time
  33. 33. Product Lifecycle R&D investment maintenance cullProfitability Time
  34. 34. Product Lifecycle R&D investment maintenance cullProfitability Time
  35. 35. Building your fundraising£ Time
  36. 36. Boston Matrix PROBLEM CHILDREN Internet Monthly Giving Upgrade Direct Dialogue Mail Acquisition Annual Giving (High Value) Major DonorsCASH COWS DEAD DOGS Renewals Special Appeals Foundations Legacies and Merchandising Planned Gifts DRTV Acquisition
  37. 37. Boston MatrixRISING STARS PROBLEM CHILDREN InternetMonthly Giving Upgrade Mail Acquisition Annual Giving (HV)Direct Dialogue Major DonorsCASH COWS DEAD DOGSRenewals FoundationsSpecial Appeals MerchandisingLegacies and DRTV AcquisitionPlanned Gifts
  38. 38. Value (ROI) vs. Volume (potential) volume 1 3 2value value PROBLEM CHILDREN Internet 2 Upgrade Mail Acquisition Annual Giving (HV) Major Donors
  39. 39. Ease of implementation vs. impact impact Must haves Low-hanging fruit easePROBLEM CHILDRENInternet Quick winsUpgradeMail AcquisitionAnnual Giving (HV)Major Donors Sinks
  40. 40. 3b. Boston Matrix (Problems) + Devils MysteronsLevel ofimpact Sacred Sad - cows sacks + Level of - understanding
  41. 41. 3b. Boston Matrix (Problems)Devils – Focus on the four biggest – Develop clear strategies for neutralisingMysterons – Watch closely – Be ready to take actionSacred cows – Need change at the very top – Learn to work round themSad sacks – Safely ignore
  42. 42. 3c. Boston Matrix (Competitors) Rising Stars Problem Children Potential threats Ideas to copy Ideas to improve Best practice Learn from mistakes Real threats Cash Cows Dead Dogs
  43. 43. CompetitorsWhat I will do What I want to know The questions I need How can I find thiswith the to ask out?informationDevelop new New ideas or products Which new products Speak to them,products from my competitors are being developed share information. that I could use/adapt. or tested? How well Mystery shopping. are they performing? Research.Be first with Which competitors also What are their plans Speak to them,my appeal for raise money for xxxx. for launching an share information.xxxxx Timing. appeal for xxxx?Improve Ways in which How well are their Mystery shopping.performance competitors are offering current products Financial reports.of my current my products more performing compared Conferenceproducts successfully. to mine? What are presentations. they doing differently Research. to me?
  44. 44. 4. The Ansoff Matrix ? new taking them to new products for new audiences new supporters?market/audience existing new products to current product existing supporters current new offer/product
  45. 45. E.G. Monthly Giving New areas Older age profile new New creative ?market/audience Upgrade Campaign action Direct Special Appeal current Dialogue Text appeal current new offer/product
  46. 46. Prioritising your investment choices
  47. 47. • How do you compare apples and oranges? EG – a new shop versus a new DM campaign?• ROI doesn’t work – too short-term• IRR is better but doesn’t tell the whole story• Four key factors are: • Profitability • Level of risk/uncertainty • Market size/potential • Market understanding
  48. 48. 5. Investment Sailing Boat Net returnMarket Marketpotential understanding Level of risk
  49. 49. 5. Investment Sailing Boat Net returnMarket Marketpotential understanding Level of risk
  50. 50. Goals & Objectives
  51. 51. Goals & Objectives• Important to set targets.• Objectives can divide as well as motivate.• Objectives need to be set that are cross- organisational.• KPIs should be few, and not all financial.• Remember the Rule of Four
  52. 52. 6. Balanced Scorecard Financial Processes Vision & Strategy Supporters/ Learning Stakeholders and growth• one objective per quadrant –max 4• keep the objectives SMART
  53. 53. Objective-SettingSMART• Strategic• Measurable• Achievable• Realistic• Time-limited
  54. 54. Objective-Setting SMART • Scary • Mouthwatering • Ambitious • Rare • Team-building
  55. 55. 7. Strategic Risk Analysis ImpactStakeholders Finances ProbabilityCulture/skills Processes
  56. 56. 8. Vulnerability Index Very importantRelatively Very safe vulnerable Insignificant
  57. 57. Last thoughts…
  58. 58. “We don’t see things as they are. We see them as we are”Ref.: Anais Nin
  59. 59. Innovation “If we don’t make utter fools of ourselves from time to time, we grow smug - that is, we do not grow at all.”Ref.: Tom Peters
  60. 60. ‘We are taught to solve problems not to recognise opportunities.’
  61. 61. “Every act of creation is first of all an act of destruction”Ref.: P. Picaso
  62. 62. “We’ve made a lot of mistakes. Andwe’ve been very lucky at times. Someof our products are things you mightsay we’ve just stumbled on. But youcan’t stumble if you’re not inmotion.” R.Carlton
  63. 63. A culture of successful risk ‘If you don’t screw up at least once in your first year with us, you aren’t trying hard enough.’Words used by a boss to a new employee on their first day at work
  64. 64. The Formula for Failure‘There is no formula for success. But there is a formula for failure, and that is trying to please everybody.’ Nicholas Ray, Film Director
  65. 65. The truest word… Whether you believeyou can or whether you believe you can’t, you’re right Henry Ford
  66. 66. The two most important words in fundraising

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