Cracking the Development Code
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My presentation to Development and Executive staff about managing the fundraising process for results.
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Cracking the Development Code
- 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
- 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
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