Nonprofit Staff 3.1


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Dealing with the Board of Directors, fundraising and marketing your nonprofit.

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Nonprofit Staff 3.1

  1. 1. Staff Session Nonprofit Excellence How to run a highly successful nonprofit organization
  2. 2. Staff Session Nonprofit Excellence Understanding the Board --- Staff Relationship
  3. 3. Staff Session Nonprofit Excellence Leadership Through Policies Leverage & Efficiency Expertise Core Fundamentals: Vision / Mission / Values Strategic Direction Fiduciary Oversight
  4. 4. Staff Session Nonprofit Excellence Three Key Roles & Responsibilities 1. Evaluating Ends 2. Setting Limits 3. Active Participation
  5. 5. Staff Session Nonprofit Excellence Setting Limits • The Board must have control over the complexity and details of staff operation. • It is also important that the board be free from the complexity and details of staff operation. • Key: set clear limits…
  6. 6. Staff Session Nonprofit Excellence Typical Limitations Contracts Asset Protection Indebtedness Funding allocations Budgeting Fund Depreciation Growth Compensation Fiduciary Responsibility
  7. 7. Staff Session Nonprofit Excellence Control Through Proactive Constraint The board need only involve itself in oversight of executive means to determine that acceptable standards of prudence and ethics are being met.
  8. 8. Staff Session Nonprofit Excellence The Board Executive relationship The only Staff member the board directs is the executive director. The director is basically the CEO of the organization.
  9. 9. Staff Session Nonprofit Excellence Staff Issues • Personnel • Risk management • Compensation • Record Keeping • Coordination • Reporting • Accounting • Tactical Execution These are NOT board issues, They are executive level issues.
  10. 10. Staff Session Nonprofit Excellence The board is • • Attendance Agendas • • responsible Discipline Vision • • Governance Fundraising for its own:.. • • Development Results .
  11. 11. Meetings are for making decisions… Staff Session Nonprofit Excellence Not listening to reports that should have been delivered and studied well in advance.
  12. 12. Staff Session Nonprofit Excellence Meetings 10 % of meeting focused on review of staff reports. 50% on committee reports. 40% future focused decisions and action assignments.
  13. 13. Staff Session Nonprofit Excellence Committees • Committees are a critical aspect of an effective non-profit organization. • Every board member should serve on at least one committee. • Committee work MUST be taken seriously. • Committees can work with/through staff – but do not direct the staff, or simply put the burden back on the staff. The committee members are responsible for delivering results. • Typical committees include: – Finance – BOD development – Events / fundraisers / special projects – Compensation
  14. 14. Staff Session Nonprofit Excellence Basic BOD Job Description Linkage to Ownership (Ends) Explicit Governing Policies (Means) Assurance of Executive Performance (Measurements) Serious Commitment / Accountability Positive Representation / 3 T’s / 3G’s
  15. 15. Staff Session Nonprofit Excellence Every board member should.. • Understand the BOD expectations VERY clearly. • They should meet with the ED and COB annually to assess their performance. • Give them a detailed “Board Book.” • Have them sign a “contract.” – Attendance – Preparation – Financial commitment – Committee obligations – BOD development – Participation in events
  16. 16. Staff Session Nonprofit Excellence For those who are prepared… …chaos brings opportunity
  17. 17. Staff Session Nonprofit Excellence
  18. 18. Staff Session Nonprofit Excellence
  19. 19. Staff Session Nonprofit Excellence Let’s agree on one key idea:
  20. 20. Staff Session Nonprofit Excellence The Four – I’s • Ignorance • Inflexibility • Indifference • Inconsistency
  21. 21. Staff Session Nonprofit Excellence How to avoid the Four I’s • Aggressive external market focus. • Aggressive donor focus. • Keep the “Main Things” the main things. • Bullish on knowledge sharing and learning. • Passion and commitment at all levels. • Foster a healthy paranoia. • Revel in change. – be agile, adaptive, and anticipatory.
  22. 22. Staff Session Nonprofit Excellence Organizational Effectiveness Audit • We have a vivid, compelling and extremely well- communicated vision for the future of our organization. • We have superb talent on our team – both staff and board. • We have high levels of open, honest and transparent communication. • We refuse to tolerate mediocrity from the staff or board. • We are highly “donor” focused. • Our organization has a high sense of urgency. • We are superb at follow-through and execution of key 1- 10 priorities.
  23. 23. Staff Session Nonprofit Excellence Effective Strategy = Valued Differentiation x Execution
  24. 24. Staff Session Nonprofit Excellence From the CEO of a little 152 billion dollar company… Look, what is strategy but resource allocation? When you strip away all the noise, that’s what it comes down to. Strategy means making clear-cut choices about how to compete. You cannot be everything to everybody, no matter what the size your business or how deep its pockets. You have to figure out what to say “no” to. Jeffrey Immelt
  25. 25. Staff Session Nonprofit Excellence Differentiated Strategy Focus Resource Allocation Bold Not Risky What NOT To Do
  26. 26. Staff Session Nonprofit Excellence New study of 25 top companies renowned for building winning corporate cultures… • • GE Southwest Airlines • • Dell IBM • • Wal-Mart P&G • • Toyota Whole Foods • • Nordstrom Ritz Carlton • • Starbucks Intel The pattern of six common traits for all of these firms… From Results Rule by Randy Pennington
  27. 27. Staff Session Nonprofit Excellence They understand that: Results Rule! 1. Tell themselves the truth and value candor and honesty. 2. Pursue the best over the easiest in every situation. 3. Leverage the power of partnerships both internally and externally. 4. Focus the energy to make the main things the main thing. 5. Show the courage of accountability. 6. Learn, grow and improve every single day. 1-10 From Results Rule by Randy Pennington
  28. 28. Staff Session Nonprofit Excellence Good To Great • Level 5 Leadership • First Who…then What • Confront the Brutal Facts • Culture of Discipline • Technology Accelerators • Flywheel – Doom Loop • Hedgehog Concept… From: Good to Great by Jim Collins
  29. 29. Staff Session Nonprofit Excellence EdgeWater Boats Good to Great: 1,483 to 11 400 – 700% 15+ years
  30. 30. Staff Session Nonprofit Excellence Anne Mulcahy CEO of Xerox and the third most powerful woman in the world! • Build a network of great relationships with people who want to see you succeed. • You don’t have all of the answers, so ask for help and advice from the smartest people you can find. • Learn to be a learner. • Listen intently to your employees and to your donors.
  31. 31. Staff Session Nonprofit Excellence Twice weekly surveys for five years of 2,000+ senior managers and executives at: • • IBM Fidelity • • GE Motorola • • Morgan Stanley Ikon • • Merck American Express • • 3M Progressive • • Microsoft Bank of America • • CIGNA AT&T • • Heineken SAP • • MasterCard Borders
  32. 32. Staff Session Nonprofit Excellence Keys to effective management… • Communicate clearly • Force the hard decisions 1 - 10 • Focus on results • Remain flexible to change • Prove your value to the donor • Force collaboration • Rigorous but not ruthless From: Think Big – Act Small by Jennings
  33. 33. Staff Session Nonprofit Excellence The Evergreen Project • 10 year study of 160 top companies • 40 distinct industries • 200 management practices • Winners, climbers, tumblers, losers • Winners had an average Total Return to Shareholders of 945%... the Losers only averaged a TRS of 62% From: What (really) Works by Joyce, Nohria, Roberson
  34. 34. Staff Session Nonprofit Excellence The Four Primary Practices: 1. A sharply focused, clearly communicated and well-understood strategy for growth. 2. Flawless operational execution that consistently delivers the value proposition. 3. A performance-oriented culture that does not tolerate mediocrity. 4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work. From: What (really) Works by Joyce, Nohria, Roberson
  35. 35. Staff Session Nonprofit Excellence The Secondary Management Practices: • Talent = find and keep the best people. • Key leaders show commitment and enthusiasm for the business. • Embrace strategic innovation. • Master the power of partnerships. Score yourself on the 1–10 scale for all eight practices From: What (really) Works by Joyce, Nohria, Roberson
  36. 36. Staff Session Nonprofit Excellence 10 – 15 %
  37. 37. Staff Session Nonprofit Excellence What Inhibits Execution? National Survey of 4,000 Senior Executives 4. Inability to work together (21%) 3. Company culture (23%) 2. Economic climate (29%) 1. Holding onto the past / unwillingness to CHANGE (35%)
  38. 38. Staff Session Nonprofit Excellence Vision Where are we going + How will we behave on the way. + Values Praise + Celebration Focus Reward / and Differentiation Strategy Punish Eliminate Mediocrity “No” 9 Steps for Measure / Track Over-communicate All key stakeholders + Adjust / Ensuring Commitment Transparency guiding collation Innovate Renewal Effective Execution Training + Vision + Values time / money / Strategy Support Alignment supplies / people Plans Goals / Objectives Tactics / Actions Procedures / Protocols Systems Communication Clear / consistent / relentless Repeatable Process
  39. 39. Staff Session Nonprofit Excellence Six Steps to Survival and Success: 1. Measure Key Drivers Relentlessly Create a Focused “Survival” Plan 2. 3. Own the Voice of the donor 4. Be Proactive 5. Only Top Talent 6. Disciplined Execution
  40. 40. Staff Session Nonprofit Excellence Workshop • Go back and look at your scores across all of the various audits. • What is your organization doing well? What is the pattern of high scores? • What is the pattern of low scores? The places where your organization needs to improve? • Write five clear, specific and measurable action steps that you can take right away to dramatically improve your low scores.
  41. 41. Staff Session Nonprofit Excellence Let’s talk about fundraising… •Nobody (or very few people) love to ask for money. •Unless you are on a pure “strategy” board or have been exempted – every director MUST participate in fundraising. •There should be a set amount that every director is responsible for getting or giving. •The Director of Development can assist – but they are also responsible for meeting their own fundraising goals. •The goal is to make it as simple and painless as possible for board members to solicit funds.
  42. 42. Staff Session Nonprofit Excellence Personal Donations • People give for both logical and emotional reasons. • #1 issue: How will my money be spent? • Let them invest in a project or projects. • Ask them to help you find other donors or new Board members. • Get them involved if they want to be. • Above all else: Thank them and show them that their money made a real difference.
  43. 43. Staff Session Nonprofit Excellence Making the personal ask • Know your stuff = logic and emotion. • Bring proof. • Find out what is important to them. • Give them a range of projects to choose from. • Ask them about recognition. • Ask them about other friends/colleagues that they feel might want to get involved. • Bring along the Board member or the ED for support. • Face it – it’s a SALES call…
  44. 44. Staff Session Nonprofit Excellence What are some of the negative stereotypes of salespeople? • Talk too much • Lie / Manipulate • Don’t know about their product • Don’t understand me • Don’t care about me • Pressure me • Waste my time…
  45. 45. Staff Session Nonprofit Excellence It is easy… just do the opposite: • Ask absolutely superb questions • Listen very intently • Tell the TRUTH • Be an “expert” on your organization and services • Have an extremely deep understanding of your prospect and their needs • Truly care about your prospect and only do what is honestly in their best interest • Never put undue pressure on your prospect • And never ever waste their time!
  46. 46. Staff Session Nonprofit Excellence Trusted Advisor Proactive Unique Giving Opportunity R Consultative / Partner e Expert on the prospect / donor a c Expected / Demanded t Expert on your industry, organization, projects and services I Basic / Expected v e General Business / Community Knowledge
  47. 47. Staff Session Nonprofit Excellence Ground-Rules for Sales Success
  48. 48. Staff Session Nonprofit Excellence Technique is Nothing… Intent is Everything !
  49. 49. Staff Session Nonprofit Excellence So, in other words: To become their “Trusted Advisor” you must first earn a very deep level of…
  50. 50. Staff Session Nonprofit Excellence Consistently Communicate that you are Competent and you Care TRUST C Affection o n TOP 5 c e r Dis-trust Respect n Competence
  51. 51. Staff Session Nonprofit Excellence In sales you and the customer both want the same thing… • The Exact Right Solution • Wrong solution • Price too high • Price too low • Good solution – poor service or follow-up • Has to be the exact right solution – for both!
  52. 52. Staff Session Nonprofit Excellence No Guessing! • Many sales people guess about… • what the customer really wants • what problems they are trying to solve • the true cost of those problems • the exact right solution • who will make the decision • what the specific decision criteria are You have the RIGHT and the OBLIGATION to NEVER guess on these important issues
  53. 53. Staff Session Nonprofit Excellence To be the perfect sales person…
  54. 54. Staff Session Nonprofit Excellence Forget about your organization… • Forget about the board • Forget about your executive director • Forget about your goal • Forget about the money Act as if you have NOTHING to sell !!!!!!!!!! FEARLESS FLEXIBLE FUN
  55. 55. Staff Session Nonprofit Excellence Slow Down for Yellow Lights • If things start to go wrong • If the donor complains • If they express frustration • If they seem confused • If you are not sure of the answer • If you are getting nervous • If you are getting a bad feeling • If they are giving you the run-around… Lose Early!!!!!
  56. 56. Staff Session Nonprofit Excellence Follow The ORDER Opportunity Resources Decision Making Process Exact Right Solution Relationship
  57. 57. Staff Session Nonprofit Excellence Ground Rules for Great Sales • The goal is Trusted Advisor Questions, comm ts, feedback? • Competence + Concern = TRUST • Technique is nothing – intent is everything • Exact Right Solution • No Guessing • NOTHING to sell = Fearless, Flexible, Fun • Slow down for yellow lights • Follow the ORDER
  58. 58. Staff Session Nonprofit Excellence Companies don’t give “big” money because… • You are nice • You have great potential • You do “good” things • You are their friend • You have known them a long time • Because you need the money
  59. 59. Staff Session Nonprofit Excellence They give because… • It is a business investment. • It will have a high ROI. • It will get results…for them. • It will get positive results for others…who are important to them or their business. • It will get them positive publicity, recognition, brand equity – that will result in improved business performance.
  60. 60. Staff Session Nonprofit Excellence In other words… You must aggressively and effectively MARKET and SELL your organization and cause to your Key Target Donors (KTD’s)
  61. 61. Staff Session Nonprofit Excellence To do this you must : Clearly differentiate your • organization in a strongly compelling way as a superior choice for philanthropic giving to a select group of highly targeted donors that have the capacity to make significant gifts to the organization and its projects.
  62. 62. Staff Session Nonprofit Excellence You absolutely must know… • Who IS your Key Target Market • What are they “REALLY” buying / investing in? • What do they like / dislike about your organization? • What other organizations to they make large gifts to? • How, specifically, do you compare? • What would make them invest in your projects? • What would drive them away? • Where do they find out about you? • What do they truly think about you?
  63. 63. Staff Session Nonprofit Excellence Positioning Just what the heck is Positioning ? How do you do it? And how do you do it right, so you can raise lots and lots of money?
  64. 64. Staff Session Nonprofit Excellence Another way to look at positioning… • It is essentially the same things as “Differentiation” • It is a code to busy donors of how to “position” your product in their mind • It is a shorthand way for them to know who you are • It cuts through the clutter of information overload • It helps people make routine decisions quickly • It has to do with… Schemata • And this shorthand code is expressed through the brand.
  65. 65. Staff Session Nonprofit Excellence Key Positioning Ideas • It is donor perception driven. • It is structured around 3 or 4 key decision making criteria. • It revolves around parity and differentiation. • It drives the brand promise. • The brand then drives all internal / external communication, marketing, advertising and fundraising! • Which in turn shapes donor perceptions and influences giving decisions.
  66. 66. Staff Session Nonprofit Excellence Fundamental Positioning Questions • What is truly important to our key target donors? • How do they perceive us on these critical measures? • How, specifically, would we like our key target donors to think differently about our organization?
  67. 67. Staff Session Nonprofit Excellence Key Point What you think, feel, assume and guess about your organization, projects or services is… COMPLETELY IRRELEVANT! The only person who’s opinion counts (as it pertains to raising money) – is the donor. Dell / Wal Mart and VOC
  68. 68. Staff Session Nonprofit Excellence To be effective, your product positioning MUST… • Be Clear, Concise, Consistent and Compelling • Tell a powerful, vivid, enthralling story. • Excite, delight, surprise, alarm or inform • Be unique, special, different and important • Stand out, be seen, demand to be heard. • Tell the truth. • Deliver on the Brand Promise!
  69. 69. Staff Session Nonprofit Excellence Let’s Look At Some Successful Brand Positioning • Volvo = • Avis is number ___ but they… • A Diamond is… • Polo Ralph Lauren represents… • Nike says… • The Ritz Carlton represents… • BMW is the…
  70. 70. Staff Session Nonprofit Excellence The Cola Wars • Coke is the “Real Thing” = the original • Pepsi is for a “New Generation” • 7-Up is the “Un-Cola” • Mountain Dew is for…… Freaks on Speed • Mr. Pibb is …. almost out of business!
  71. 71. Staff Session Nonprofit Excellence Patagonia Black Toothfish
  72. 72. Staff Session Nonprofit Excellence Chilean Sea Bass… YUM!!!!!!!!!
  73. 73. Staff Session Nonprofit Excellence A nice quote about branding: • The simple truth about branding – a brand is not an icon, a slogan, or a mission statement. It is a PROMISE your organization can make and keep. • As staff and board members YOU are the brand ambassador! And in many ways, the brand itself!!!!
  74. 74. Staff Session Nonprofit Excellence Differentiation is all about… Making certain that your organization (brand) is perceived in a strongly compelling manner that provides a powerful differentiator on key giving criteria and an overwhelming motivation to donate to your projects and services.
  75. 75. Staff Session Nonprofit Excellence Workshop • Describe in as much detail as possible who your top target donors are/should be. • What are their top three decision criteria? How do they decide whether to give or not – and how much to give? How do you truly know this? • Specifically, how do you honestly believe these people perceive your organization right now? • How might you like that perception to be different?
  76. 76. Staff Session Nonprofit Excellence Workshop continued… • What are the top three ways that people actually find out about your organization? • Do you do donor surveys? • Do you have a donor advisory board? • How good is your follow-up and donor cultivation program? (scale of 1-10) • How up-to-date and clean is your donor database? • Have you done a cost/benefit analysis of all of your fundraising events?
  77. 77. Staff Session Nonprofit Excellence Workshop continued… • Does your Director of Development generate a minimum of three times their salary? • Does every single eligible member of your board donate at least at the minimum level? • What is your donor retention rate? • How many major gifts have you secured in the last 12 months? • How many major gift requests do you have planned and prepared for in the next 60 days?
  78. 78. Staff Session Nonprofit Excellence Workshop continued… • How do you demonstrate to your donors that their money was extremely well spent? • Does you board come into direct contact with the people/cause you serve on a regular basis? • Do you have a diverse board that represents the constituencies you serve? • How is your board attendance (1-10) • Are your board committees effective? (1-10) • Do you have long-term commitment from you major/corporate donors?
  79. 79. Staff Session Nonprofit Excellence Workshop continued… • Based on everything we have covered and the questions you just answered, what are 5 specific, measurable, realistic action steps that you and you staff/board can take in the next 90 days that will have a dramatic positive impact on your organization?
  80. 80. Staff Session Nonprofit Excellence Q&A
  81. 81. Staff Session Nonprofit Excellence Thank You!!!!! If you have ANY questions at all, please do not hesitate to contact me: Be sure to sign up for my blog!