The document discusses the challenges in managing development and sales outcomes, emphasizing that managers can only control activities rather than directly manipulate results. It highlights the importance of teamwork, collective accountability, and focusing on actionable metrics, rather than individual performance. The text advocates for shifting from a culture of individualism to one that emphasizes team goals and mutual support for better organizational outcomes.

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

2. Is Development Like Sales?

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

6. Will You Meet Your Quota?

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

13. Is Development Entrepreneurial?

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

15. How Not to Coach

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