Nonprofit Staff 3.1

Staff SessionNonprofit Excellence

How to run a highly successful nonprofit

organization


Understanding the Board --- Staff Relationship


Leadership Through Policies

Leverage & Efficiency

Expertise

Core Fundamentals:

Vision / Mission / Values

Strategic Direction

Fiduciary Oversight


Three Key Roles & Responsibilities

1. Evaluating Ends

2. Setting Limits

3. Active Participation


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…


Typical Limitations

Contracts

Indebtedness

Budgeting

Growth

Asset Protection

Funding allocations

Fund Depreciation

Compensation

Fiduciary Responsibility


The board need only involve itself in

oversight of executive means to

determine that acceptable standards

of prudence and ethics are being met.

Control Through Proactive Constraint


The Board Executive relationship

The only Staff member the board directs is the executive director.

The director is basically the CEO of the organization.


Staff Issues

• Personnel

• Compensation

• Coordination

• Accounting

• Risk management

• Record Keeping

• Reporting

• Tactical Execution

These are NOT board issues,They are executive level issues.


• Attendance• Discipline• Governance• Development

• Agendas• Vision• Fundraising• Results

The board is responsiblefor its own:..

.


Not listening to reports that should have been delivered and studied well in advance.

Meetings are for making decisions…


Meetings

10 % of meeting focused on review of staff reports.

50% on committee reports.

40% future focused decisions and action assignments.


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


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


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

Staff SessionNonprofit ExcellenceFor those who are prepared…

…chaos brings opportunity




Let’s agree on one key idea:


The Four – I’s• Ignorance• Inflexibility• Indifference• Inconsistency


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.


• 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

priorities. 1- 10

Organizational Effectiveness Audit


Effective Strategy = Valued Differentiation x Execution


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


Differentiated Strategy Focus

Resource AllocationBold Not Risky

What NOT To Do


New study of 25 top companies renowned for building winning corporate cultures…

• GE• Dell• Wal-Mart• Toyota• Nordstrom• Starbucks

• Southwest Airlines• IBM• P&G• Whole Foods• Ritz Carlton• Intel

The pattern of six common traits for all of these firms…

From Results Rule by Randy Pennington


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.

From Results Rule by Randy Pennington1-10


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


Good to Great:1,483 to 11400 – 700%15+ years

EdgeWater Boats


Anne MulcahyCEO 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.


Twice weekly surveys for five years of 2,000+ senior managers and executives at:

• IBM• GE• Morgan Stanley• Merck• 3M• Microsoft• CIGNA• Heineken• MasterCard

• Fidelity• Motorola• Ikon• American Express• Progressive• Bank of America• AT&T• SAP• Borders


Keys to effective management…

• Communicate clearly• Force the hard decisions• Focus on results• Remain flexible to change• Prove your value to the donor• Force collaboration• Rigorous but not ruthless

1 - 10

From: Think Big – Act Small by Jennings


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


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.



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


10 – 15 %


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%)


Vision+

Values

Strategy

Commitment

Alignment

Systems Communication

Support

Adjust /Innovate

Reward /Punish

Where are we going + How will we behave on the way.

FocusDifferentiation“No”

All key stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / Protocols

Repeatable ProcessClear / consistent / relentless

Training +time / money /

supplies / people

Measure / TrackOver-communicate

Transparency Renewal

Praise + Celebration and

Eliminate Mediocrity

9 Steps forEnsuring

Effective Execution


Six Steps to Survival and Success:

1. Measure Key Drivers Relentlessly

2. Create a Focused “Survival” Plan

3. Own the Voice of the donor

4. Be Proactive

5. Only Top Talent

6. Disciplined Execution


• 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.

Workshop


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.


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.


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…


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…


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!


General Business / Community Knowledge

Expert on your industry,organization, projects and services

Expert on the prospect / donor

Unique Giving Opportunity

Basic / Expected

Expected / Demanded

Consultative / Partner

Trusted Advisor

ReactIve

Proactive


Ground-Rules for

Sales Success


Technique is Nothing…

Intent is Everything !


So, in other words:

To become their “Trusted Advisor” you must first

earn a very deep level of…


Concern

Competence

RespectDis-trust

AffectionTRUST

Consistently Communicate that you are Competent and you Care

TOP 5


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!


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


To be the perfect sales person…


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


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!!!!!


Follow The ORDER

Opportunity

Resources

Decision Making Process

Exact Right Solution

Relationship


Ground Rules for Great Sales• The goal is Trusted Advisor• 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

Questions, comments, feedback?


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


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.


In other words…

You must aggressively and effectively

MARKET and SELL

your organization and cause to your Key Target Donors

(KTD’s)


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.


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?


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?


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.


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.


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?


Key PointWhat 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


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!


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…


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!


Patagonia Black Toothfish


Chilean Sea Bass… YUM!!!!!!!!!


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!!!!


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.


• 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?

Workshop


• 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?

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?



• 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?



• 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?



Q&A Q&A


Thank You!!!!!If you have ANY questions at all, please do

not hesitate to contact me:

[email protected]

www.johnspence.com

Be sure to sign up for my blog!