Showing posts with label nonprofit manangement. Show all posts
Showing posts with label nonprofit manangement. Show all posts

Thursday, January 26, 2012

Surrounding Yourself With Talent

What type of talent should The New Executive Director nurture in current staff?  What should they value in new employees? The answer is critical to differentiating between our current understanding of the ED’s role and The New Executive Director.  It will impact the Director’s career, the effectiveness of the organization and the people served by that organization. The qualities that an ED values most in their team sets a standard that affects everything from program development, fundraising, collaboration and the long-term success of nonprofit.
Walking into
uncertain times

Employer surveys over the past four decades document the growing emphasis upon those “soft” skills: communication, dependability, tenacity.  In fact, the transformation is now so complete that basic technical skills requirement no longer rank in the top five of what employers seek.  As one Director explains, “I can teach them what they need to do a good job, but they need those soft skills like persistence in order to do a great job and add real value to this organization.”

Now comes new data which suggests that leaders’ priorities in this area are changing in important ways.  Whether it is corporate or nonprofit, ‘creativity’ is identified as the emerging critical competency for the successful enterprise of the future.

That's creativity—not administrative skill, passion or even dedication. In the midst of an era of economic limits where we are entering an age of austerity, this indicates an intriguing shift in attitude.  As business models for nonprofits change, the threat to traditional nonprofit captains is titanic.  Retrenchment of government budgets, private household debt burdens, the expansion of venture philanthropy, an emerging legal framework for public benefit corporations all represent fundamental DNA challenges to traditional nonprofits.  Uncertainty is confronting today’s ED, many of  who now sense a large gap between the level of change coming at them and the ability of their staff to deal with it.

This is why The New Executive Director views creativity as the essential leadership asset that must permeate an enterprise.

Might As Well Break Your Business Model Before The World Does It For You
The Great Recession has shaken many of the assumptions held by those in charge. Since half of the EDs in America are 55 and older, this means the majority of our leaders cut their management teeth back in the 70s and early 80s, an age which valued basic administrative skill and virtually ignored creative leadership.  When you consider that 40% of human service nonprofits still conduct client intake via pen and paper, you get a sense that even before the recession we were a few decades behind the curve.

It’s not the technical hardware we’re talking about, but the interconnected mindeset.  Most nonprofits just use technology to digitize existing systems, sometimes described as ‘paving the cowpaths’. Today the world is massively interconnected—economically, socially, and politically—and operating as a system of systems. For too many Directors, the answer is that their stakeholders are plugged into their individual social networks, but not to the nonprofit. So what does this look like for The New Nonprofit?  

Against that backdrop of interconnection, interdependency, and complexity, an entrepreneurial generation of nonprofit leaders are emphasizing fresh thinking and continuous innovation at all levels of the organization. The New Executive Directors are seizing upon creativity as the necessary element for nonprofits get nimble, reinvent themselves and thus remain relevant players in the funding and service community.

So you’re looking for creative talent and innovative thinking.  What does this do for the nonprofit?

Question your status quo. Every organization has legacy programs that are sacred cows. Often the need to perpetuate the ‘success’ of these products inhibits creativity within the organization and thus leaving exciting new options open for other nonprofits to advance competing innovations.  The New Executive Director understands that new revenues will have to come from new sources, and thus be open to break with existing assumptions, methods, and even traditional services.

Rethink your business model. Directors who prioritize creativity as a need in their staff are more likely to pursue innovation by changing their business model. In an age of accelerating change, they surround themselves with talent that can think on their feet and not wait for direction from the laborious traditional strategy/planning sessions so beloved these past few decades.  Strategic Thinking matters more than Strategic Planning.  The New Executive Director builds staff capacity to favor continuous, rapid-fire shifts and adjustments to their business models.

Destroy your institutional lethargy. The New Executive Director will not await certainty…nor near certainty. Nor will they tolerate it in their staff.  Creative leaders will develop a team that fights the institutional urge to wait for completeness, clarity, and stability before making decisions.  This takes a combination of vision, strategic awareness and gut level confidence. Also required is strong analytical skills to sift through mountains of data and decide what is relevant. These talents drive decision making that is faster, more precise, and even more predictable.

Any questions?
The New Executive Director must create a culture which is far more transparent and entrepreneurial. The New Culture is infused with the belief that the changing economy is an opportunity, not a threat. The New Nonprofit understands that risk is to be managed, not avoided. The New Executive Director has the ability to build creative enterprises with fluid business models, not absolute ones.

Something significant is happening to the American economy and to the nonprofit sector. In response to powerful external pressures and the opportunities that accompany them, The New Executive Directors are redefining the job. They are showing the rest of us that a world of increasing complexity will give rise to a new generation of leaders that make creativity the path forward for successful enterprises.

Saturday, October 22, 2011

The administrative burden of governmnet contracts....and we do mean Burden

New research from the Urban Institute reveals nearly three quarters of nonprofits providing contracted services consider the reporting requirements a 'major administrative burden'

This is important for two separate reasons...1) every dollar spent administering services is one less dollar delivering services and 2)  excessive administrative procedures are a morale killer.

Friday, October 21, 2011

Getting the volunteer equation right....

You can't please everybody. Legions of articles and books detail both the triumphal and disastrous experiences with volunteers. But overlooked are the potential great volunteers we lose because our internal management systems are not set up to treat volunteers as a rich resource. This piece from Blue Avocado highlights the frustrations some volunteers face when trying to give of themselves to organizations that are ill equipped to deal with people in a professional manner.

As Boomers retire nonprofit managers are going to have a giant pool of volunteer brainpower available.  The organizations which effectively use these experienced people are the ones most likely to thrive in the next 20 years.

Tuesday, October 18, 2011

Finding a New Business Model

In many eyes they might not rank in importance with food banks, health clinics and other nonprofits, but symphony orchestras (many free standing nonprofits, others are quasi private/public partnerships) have been hemorrhaging money for decades as audiences get older. Some have been eating into their endowments every year in the past decade which leads managers looking to find a new business model. Top of that list would be restructuring the salaries of players, which has led to a series of strikes This story does have relevance as many smaller nonprofits have to find a new business model in order to survive the coming shake-out.

Sunday, October 02, 2011

Coaching versus Training

If we're going to make quantum improvements in nonprofiit management, we need to spend less $$$ on training and more $$$ on coachiing.  In other fields, thinkers like   and practioners like  Sal Khan are helping show us the new path.

Most nonprofit leaders I know are not lacking the information about what to do...their deficiency is the time and focus to master the material and apply it to their day-to-day operations.  This is why coaching matters.  Change your thinking about 'professional development' and shift resources away from formal training an into long-term consistent coaching.   Watch your career grow,

Monday, September 26, 2011

Why some Executive Directors in nonprofits are abusive to staff

In a "leadership" discussion last week with a grantmaker, we got around to poor morale in several of the nonprofits we've observed.  She pointed me to this piece positing that authority without status turns people into abusive tyrants.   She suggested that Executive Directors who lack status with fellow Executive Directors deal with their own feelings of smallness by taking it out on their staff.  Having authority but little perceived status can be a toxic combination.

Sunday, September 25, 2011

Is a merger in your future?

With the volatile funding picture, what is the revenue model that will sustain your organization? In the coming age of reduced resources for nonprofits, can you thrive as an independent organization? Is your board even having this discussion? Smart organizations think ahead before crisis strikes

Friday, September 23, 2011

You want to know why Nonprofit Collaborations usually fall apart?

Reactive Devaluation in negotiation is a human reaction to offers from the other side of the table "Well, if they're offering A,B,C, then A,B,C must not be worth much. This type of strategic behavior can be overcome by the use of neutral third party facilitators. Adapted from Closing the Deal , by Michael Wheeler. Read the whole thing.

Thursday, September 22, 2011

What Good Bosses Believe

I have a lot of respect for Bob Sutton's perspective on what makes good leaders and managers. Just reread this piece on 12 Things Good Bosses Believe in the Harvard Business Review. Key statement "I have a flawed and incomplete understanding of what it feels like to work for me."

Tuesday, September 20, 2011

Monday, September 19, 2011

Find yourself a new business model

In many eyes they might not rank in importance with food banks, health clinics and other nonprofits, but symphony orchestras (many free standing nonprofits, others are quasi private/public partnerships) have been hemorrhaging money for decades as audiences get older. Some have been eating into their endowments every year in the past decade which leads managers looking to find a new business model. Top of that list would be restructuring the salaries of players, which has led to a series of strikes This story does have relevance as many smaller nonprofits have to find a new business model in order to survive the coming shake-out.

Sunday, September 11, 2011

Building a Loyal Base For Your Nonprofit by Creating Great Customer Service

For decades the nonprofit sector has talked about stakeholders to describe the various groups of people with an interest in your work. They are people who ‘hold’ a ‘stake’ in what you do.  The dry, academic language of ‘engaging stakeholders’ drove away many from understanding the real win that comes with creating loyalty. A satisfied customer is necessary, but not sufficient, to be a loyal customer who will come back repeatedly, refer their friends and family to you, and be faithful.

This is critical in two areas, funders and clients.  About 50% of charitable behavior – giving money and volunteering – is driven not by a person’s passion, but by the passion of friends or family members.  They don’t give to you because they care deeply about you...they give to you because a friend cares deeply about you.

The other part of the equation is your clients.  My focus group research reveals that even low-income residents, who desperately need your service, will not come to your door they know someone who had a positive experience with you.

The rise in social networks has also awakened your donors and clients.  Donors want engagement and clients want personalization. People are tired of being serviced like a commodity by a faceless computer robot.  This means success depends upon intimacy between your organization and your customers.

There are other factors driving this change.  While there are many, kicking up customer service represents a big opportunity to nonprofits.  Building loyalty means a priority on keeping the friends you already have, rather than focusing always on getting new ones. From my own research, here is a collection of top tips on how to build and maintain real customer loyalty:

§         Communicate more personally more often. Get to know your clients and donors - actually call them by name, or even remember their likes and dislikes.  Definitely have systems in place to keep them updated on your work:  newsletters, social media, traditional media.  And remember, your low-income clients are more likely to have a cell phone than a computer with internet connection at home.  Texting represents an overlooked avenue.

§         Educate your customers on your business. Today you have the tools, like blogging, videos, and new web technologies, to explain and make your customers appreciate what you do, and how you do it better than anyone else. They haven’t lost interest in cutting costs, so help them understand how you are a leader in this regard.

§         Enthusiastic customers are created by enthusiastic employees. Staff engagement matters…a lot.  Enthusiasm radiates outward.  This means good communication and training for your staff.

§         Don’t take existing customers for granted.   Nonprofits focus a lot of energy on gaining new clients, donors, contracts….sometimes to the detriment of the existing ones. Spend as much time thinking of special ways to reward existing customers as you do rewarding that first-time new customer.

§         Be dependable. If you tell a customer something is going to happen then work hard to make it happen.  If something does go wrong, be proactive in letting customers know and compensate them for the inconvenience. Be flexible in solving your customer’s problem.

Statistics also show that building loyalty and retaining current customers is 3 to 10 times cheaper than acquiring new customers. Successful nonprofits know that 80 percent of their business actually comes from a stable 20 percent of their customer base. You will grow faster by nurturing this solid base of loyal customers, who then do the best job of selling to new customers, at no cost to you.