1. Effectuation, the Wisdom of Teams and
Organizational Goals in Development
Cracking the Development Management Code
Presented by Marcus W. Haile, CFRE
January 28, 2015
Nonprofit Center of Northeast Florida Development Convening Group
3. Make Your Numbers!
There has developed an unstated expectation that sales
managers can, with enough effort, change the numbers on
the page. It’s all about making the number. But, can a sales
manager truly make the numbers? . . . The answer is
obviously no. People can only manage people and
resources, not concepts and numbers.
- Cracking the Sales Management Code, Jordan & Vazzana
4. Outcomes Can Not be Managed
They can be measured
If outcomes are faltering, look to the activities
“Leaders can only manage things in their direct control.
To sum it up, the Sales Activity metrics are where all the
action is.” (Jordan & Vazzana, 602)
You can put in place the elements that will lead to
success with outcomes.
5. If our lives suddenly depended on “making the number,” we
would strongly prefer that the number be something
actionable like Time Spent Coaching Reps, rather than
Customer Satisfaction. At least our fate would be in our
own highly motivated and in-control hands.
- Cracking the Sales Management Code, Jordan & Vazzana
Manage What You Can Control
7. Counter Point
● Development staff need to be held accountable . . .
● It’s all about the mission, the people helped . . .
● No excuses, get it done . . .
● No whining . . .
● Just do it . . .
● Teachers, whining salespeople and development staff,
always trying to shirk responsibility . . .
8. The Wisdom of Teams
“Wisdom of Teams”, by Katzenbach and Smith
Culture of Individualism
Mutual accountability with specific goals
The monkey has to be on everyone’s back
If one person fails, everyone fails
Commitment to one another
What did I do to allow him or her to fail?
9. “Teamwork represents a set of values that encourages
behaviors such as listening and constructively
responding to points of view expressed by others, giving
others the benefit of the doubt, [and] providing support to
those who need it.”
- Wisdom of Teams, Katzenbach and Smith
Wisdom of Teams
10. “We grow up under a regimen that measures rewards and
punishes individual - not collective - performance.
Whenever we want to “get something done,” our first
thought is that of holding an individual responsible.”
- Wisdom of Teams, Katzenbach and Smith
Culture of Indvidualism
11. While some people will struggle to abandon the notion
of “managing” Revenue, the truth is that we have
virtually no direct control over Revenue or any other
Business Result.
- Cracking the Sales Management Code, Jordan & Vazzana
Organizational Goal or Team Goal?
12. “It is not a productive management practice to examine a
Business Result and then direct the salesperson to go
change the Business Result.
It is worth restating that Sales Objectives cannot be
directly managed; they must be influenced by directing
Sales Activities.”
- Cracking the Sales Management Code, Jordan & Vazzana
The Learning Organization
14. Business Results > Sales Objectives > Sales Activities
Develop your goals as organizational goals or business results with the
development staff, leadership team, and Board
Get all parties to take accountability. Group accountability, not culture of
individualism.
Manage individuals by helping them manage the activity that leads to results
Challenge yourself, but protect the downside
Fundraise based on ability not on need
Budget after fundraising - if you can figure out how
Crack the Code
16. What is Effectuation? Summary
http://www.effectuation.org/sites/default/files/documents/effectuation-3-pager.pdf
When Revenue Goals are Bad: Part 1
http://veritusgroup.com/when-revenue-goals-are-bad-a-two-part-series/
When Revenue Goals are Bad: Part 2
http://veritusgroup.com/when-revenue-goals-are-bad-part-2/
Targets and Numerical Goals
http://www.rwwilson.com/art50.shtml
Resources
Editor's Notes
Focusing on the management practices that will create the environment for results.
Is development like sales? Yes, and there are many kinds of sales. Computer sales are different than real estate sales and many other examples. A recent book by Jordan and Vazanna, Cracking the Sales Management Code, has been the first book in the industry to explain what you can really evaluate sales staff on. There are many similarities to development.
The old adage of “make your numbers” can often be heard in development. Have any development staff heard “make your goal?”
Business Results > Sales Objectives > Sales Activities
All of these responses are more a reflection of the need for measuring accountability. What gets measured gets done. But can you do what gets measured?
For what can you hold someone accountable?
We’re all adults and all here to help the clients, don’t use them as a weapon.
No excuses, “no whining”, is actually whining. You need to hear the excuses to understand the problem. Can not be a learning organization without excuses.
There sure are a lot of slackers in the world! Why is that?
Lessons from “The Wisdom of Teams” by Jon Katzenbach and Douglas Smith outline why teams typically fail because of a lack of accountability, but also how the culture individualism is limiting success.
Coaching = management
We are always told to be entrepreneurial. What does that really mean? Everything we’ve been talking about: (Give out Effectuation handout)
Start with what you know and have and set goals based on that.
Protect the downside
Welcome surprises
Precommitments reduce uncertainty
Focus on what you can control