Does your non-profit agency utilize the power of "IF-THEN"

if thenFor those of you following the last few blog posts, you know that I’m reading “The Marshmallow Test: Mastering Self-Control“ written by researcher Walter Mischel, which is a book about human behavior, delayed reward and resisting temptation. There are tons of organizational development lessons throughout the book, and there is so much that non-profit organizations can learn from this research.
For example, chapter five — “The Best-Laid Plans” — looks at a concept researchers labeled “hot stimulus” (aka temptation), which is one important factor in the entire delayed reward equation at the root of the marshmallow test. In this chapter, they looked at strategies that children were asked to use in order to improve the amount of time they spent on a project before caving in to a distraction or reward.
One of the strategies that seems to work well is creating “If-Then Plans.” The way this works is when a child is presented with a situation like a foreseeable distraction or temptation, they automatically do something that helps insert their self-control. Here is how Mischel talks about this phenomenon on page 98:

“With practice, the desired action of an implementation plan becomes initiated automatically when the relevant situation cues occur:

  • When the clock hits 5 pm, I will read my textbook;
  • I will start writing the paper the day after Christmas;
  • When the dessert menu is served, I will not order chocolate cake;
  • Whenever the distraction arises, I will ignore it.

And implementation plans work not just when the IF is in the external environment (when the alarm rings, when I enter the bar) but also when the cue is your internal state (when I’m craving something, when I’m bored, when I’m angry).

When I read this chapter, it got me thinking about how powerful IF-THEN planning can be and has been for countless numbers of smart non-profit organizations. The following are just a few examples:

  • IF our executive director resigns or leaves some day, then we will a) hire an interim executive director, b) form an executive search committee, etc.
  • IF our largest funding source cuts or stops funding our agency, then we will cut XYZ from the operating budget and immediately access X% of  funding from our reserve funds and raise Y% of funding from a special appeal to select major gifts donors.
  • IF our capital campaign feasibility study comes back with news that we can raise less than expected, then we will scale the building project back in the following ways:  X, Y, and Z.

Developing IF-THEN plans for your agency on a variety of different issues can help your organization get through tough situations like executive turnover. More importantly, it will help you avoid distracting shiny-object-types-of-issues that are endemic to most crisis situations.
Has your agency developed a succession plan or anything else that qualifies as an “IF-THEN” plan or strategy? Please scroll down and share your thoughts and experiences in the comment box below. I would love to hear about your successes and your lessons learned.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
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http://www.linkedin.com/in/erikanderson847

Is your non-profit board more like the grasshopper or ant?

marshmallow1As I explained in last week’s post titled “Should you administer the ‘Marshmallow Test’ to new non-profit board prospects?,” I’ve been traveling a lot lately, which means I’m looking for good books to read at the airport and on the airplane. The newest eBook on my iPad is “The Marshmallow Test: Mastering Self-Control“written by researcher Walter Mischel. This book is all about individual human behavior, but I find myself thinking a lot about non-profit organizations while turning the pages.
For example . . . let’s look at Chapter 6 — “Idle Grasshopper and Busy Ants
I’m sure most of you know Aesop’s fable about the grasshopper and the ant, which is all about the virtue of hard work and planning ahead. Mischel uses this classic story to frame his Marshmallow Test work around immediate rewards versus future rewards and what it tells us about people and their future.
While reading this chapter I couldn’t help but think about non-profit boards and the decisions they make pertaining to saving for a rainy day and building a “rainy day fund“. I’m sure this idea is top of mind for me because a number of my current clients use “number of days cash on hand” as a key performance indicator (KPI) to measure their agency’s financial stability. In fact, right before cracking this chapter of the book, I was visiting with a client who has less than a month of operating cash in the bank, and they are working through ways to grow that number.
Whenever working on issues like “number of days cash on hand,” my thoughts often wander to questions like:

  • Why do some board volunteers make decisions in the non-profit boardroom that they wouldn’t dare make in their own corporate boardroom?
  • Why does building a rainy day fund of 3-, 6- or 12-months feel wrong to so many boards?
  • Why are some non-profit boards so focused on today and less focused on tomorrow?

THEN IT HIT . . . after reading the following sentence on page 61:

“There’s no good reason for anyone to forego the ‘now’ unless there is trust that the ‘later’ will materialize.”

I read this sentence over and over again, and then I wondered the following things:

  • Could this mean that your non-profit board of TODAY doesn’t want to save for a rainy day because they can’t visualize (and don’t trust) the agency’s non-profit board of tomorrow?
  • Could it mean the board doesn’t have faith in their policies, processes, procedures and practices for bringing on the next generation of board members? Will the future board be good stewards of the rainy day fund?
  • Could it mean the board doesn’t have faith in who the next executive director will be and whether or not they will see the rainy day fund as an excuse to relax fundraising efforts?

TRUST

Wow! It is all about trust and the uncertainty of the future. DUH!
Of course, this begs the question: “What can we do TODAY to build trust among board members in what future boards look like and how they will act?
grasshopper and antI believe the answer is as simple as evaluating what “The Ant” would do if they were a member of your board of directors.
I think The Ant would build a strong Board Governance Committee that would take the following roles/responsibilities very seriously:

  • Board Roles and Responsibilities
  • Board Composition
  • Board Knowledge
  • Board Effectiveness
  • Board Leadership

I think The Ant would invest in development of policies to help guide future boards such as:

  • bylaws
  • investment policies
  • resource development policies
  • board development policies

I also think The Ant would roll policy development into planning projects such as:

  • long-range plan
  • strategic plan
  • board development plan
  • resource development plan
  • succession plan

Reading this chapter also took me back to what I said in last week’s post about administering The Marshmallow Test to prospective new board volunteers. For example, I’m left wondering how many “Ants” versus “Grasshoppers” sit on your board of directors? Does your board governance committee look at this dynamic when conducting its annual gap assessment? Should it? If so, how?
Please scroll down and use the space below to share your thoughts and experiences with regard to the questions I just posed in the previous paragraph. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Time to start writing your 2015 resource development plan

fred the bakerAfter spending a nice long Labor Day weekend in Michigan at a friend’s summer cottage on Saginaw Bay, I am now faced (as are you) with the long slide towards the end of the year. Not only can I not wear white clothing now that Labor Day has come and gone, but my fundraising friends should be starting to engage board, staff and fundraising volunteers in developing their agency’s written 2015 resource development plan.
The process of engaging all necessary stakeholders in this process can oftentimes feel like that old Dunkin’ Donuts commercial featuring “Fred the Baker” who was famous for saying “Time to make the donuts!
Additionally, some fundraising professionals complain that the process can be complicated and confusing.
With all of these things in mind, I decided to commit this morning’s blog post to providing you with resources, samples, templates and worksheets to hopefully make this exercise a little easier this year.
However, before we start, let’s review why writing your agency’s annual written fundraising plan is so important:

  1. It mirrors the creation of your agency’s operating budget, providing board members with the necessary strategies and explanations behind the revenue numbers they see in the revenue budget.
  2. It provides fundraising professionals an opportunity to “engage” their co-workers, board members and fundraising volunteers (e.g. as Jim Collins talked about in his book,  “From Good To Great,” getting the right people on the bus and in the right seats).
  3. It provides clarity around the goals, strategies and tactics necessary for success in the upcoming year.
  4. It allows you to take a step back and see the “forest through the trees” before plunging into another series of campaigns, events and set of fundraising activities (e.g. grant writing, cultivation, stewardship, etc).

Of course, plans come in all sorts of different shapes and sizes.
strategic planning implementationHaving two degrees in planning, I tend to get overly excited about developing plans, and some of my past resource development plans have been 50 and 75 pages in length (Yeah, I have gotten carried away). Those plans included elements such as:

  • statement of fundraising purpose (e.g. big picture case for support document)
  • goals
  • strategies
  • tactics (e.g. action plans for each strategy)
  • comprehensive fundraising calendar
  • resource development policies
  • range of gift charts
  • prospect lists of volunteers broken out by campaign/event
  • prospect list of donors broken out by campaign/event
  • budgets
  • toolkit in appendices with resources such as job descriptions, GRPIs, committee charters, etc

Before you contemplate going to the roof and throwing yourself off of it, please understand that it doesn’t have to be this way.
I recent purchased a copy of Pamela Grow’s e-book “Simple Development Systems: Successful Fundraising for the One-Person Shop“. Her book is a wonderful reminder of how your annual written fundraising plan doesn’t need to be much more than a one page summary sheet that ties back to a series of simple worksheets focused on:

  • grant writing
  • growing individual donors
  • public relations and donor stewardship
  • website and social media
  • how to tell your agency’s story

Regardless of what your plan looks like, I’ve scoured the internet this morning looking for resources to help make your planning experience a little easier this year. Please take a moment to click-through and review some of these samples, templates, and worksheets. I promise you won’t be disappointed!
First, if you have the time, I found this one hour long YouTube video from Emily Davis at GiftWorks on “Creating a Resource Development Plan“. It’s a great resource to frame your journey if you have the time. You might want to also share it with your fundraising volunteers before inviting them to their first planning meeting.

The following are samples and templates you might want to check out (because Stephen Covey always says “Begin with the end in mind.)

Oftentimes, national organizations like Boys & Girls Clubs of America produce samples and worksheets to help their local affiliates with their resource development planning process. Here are two links I think you will find useful:

Is your organization starting its resource development planning process for 2015? What are some of the considerations you’re looking at? What resources do you use to help frame this important process? Please scroll down and share your thoughts and experiences in the comment box below. We can all learn from each other.
Editorial note: Since this blog post was published, it went on to become one of the most popular posts in 2015. Seeing this level of interest, we developed a five part series focused on how to develop your organization’s annual resource development plan. Here are links to those posts:

Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

The difference between success and failure

goalsMany years ago I traveled the Midwest region as an internal consultant working for a large national non-profit organization. For part of my time there, I worked with countless local affiliated organizations on planning and implementing an annual campaign focused on face-to-face solicitation strategy. Some agencies took to it like a duck to water, and others just struggled. Every once in a while (typically when I’m contemplating the origins of the universe), I think back to those days and wonder what the difference was between those two realities.
Whenever I get into one of those “WHY?” moods, I’ve concluded that differences in the following factors must be what made the difference:

  • resource development skill sets
  • state of donor donor readiness
  • board of directors
  • community factors

While I am sure all of these things play a role, I think it might be even more simple.
This morning I was enjoying my coffee and reading a book when I came across the following passages from the book “The Magic of Thinking Big” written by David Schwartz:

Desire, when harnessed is power.”
Success required heart and soul effort and you can only put your heart and soul into something you really desire.”
When you surrender yourself to your desires, when you let yourself become obsessed with a goal, you receive the physical power, energy, and enthusiasm needed to accomplish your goal. But you receive something else, something equally valuable. You receive the ‘automatic instrumentation’ needed to keep you going straight to your objective.”

While I’ve always believed in the power of goal setting, I guess I’ve never seen it in this light or from this perspective.
So, the answer to my original question very likely is simple . . . those who succeeded just desired it more and those that didn’t do well didn’t.
I guess this is why successful fundraising professionals are focused on measurable goals such as:

  • campaign and event contribution goals
  • sponsorship goals
  • grant writing goals
  • donor retention goals
  • new donor acquisition goals

These goals are encapsulated in strategic plans, fundraising plans, stewardship plans, major gift prospect cultivation plans, annual performance plans, etc.
What type of fundraising-related goals does your organization have? Where are those goals written down? How do those goals get translated into your individual goals and where are those written? Were those goals developed collaboratively and do they align with what you’re passionate about? If not, how do you bridge that gap in order to avoid failure?
Please scroll down and share your thoughts and experiences in the comment box below.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Just say NO to planning for the sake of planning

It happens all the time in my line of work. A new executive director or board president gets it in their head that they need a strategic plan because it “cures all that ails you“.  With this vision, they call a planning consultant to facilitate creation of this perfect solution. Of course, the problem is that . . .

Not everyone is ready for strategic planning

The other day I was clicking around the internet looking for readiness assessment tools to share with a client, and I came across a wonderful white paper published by the The Nonprofit Center at La Salle University’s School of Business. It identified the following five instances when many non-profit organizations tend to instinctively reach for the strategic planning tool and should definitely resist doing so:

  1. not readyWhen they are in (or starting to slide into) financial crisis
  2. When the board realizes the executive director “isn’t right” for the organization
  3. The board is fuzzy when it comes to their roles and responsibilities
  4. There is tension throughout the organization (either in the boardroom or on the front line)
  5. There is a pervasive attitude of “We don’t do it that way” or “We tried that and it didn’t work”)

When any of these circumstances are present, then strategic planning isn’t something you should engage in. Click here to read more of that article from The Nonprofit Center. They offer some nice solutions to each of these five situations.
Of course, even if your agency passes this initial test, there are still additional readiness questions you should ask before proceeding. The following are just a few questions I found online embedded in a survey tool developed by the Community Foundation of Monterey County:

  • Is our board proactive in preparing for the future instead of waiting for emergencies to react?
  • Are key community leaders and partners willing to participate in our planning process in a meaningful way?
  • Are the board and staff knowledgeable about current trends in nonprofit management?
  • Does our organization keep good records? Does it use data to support decision‐making?
  • Are board and management aware of the time and resources required to engage in meaningful strategic planning?

There are 10 other readiness assessment questions included in that tool. Click here to read more from the Community Foundation of Monterey County about strategic planning readiness.
questions2My advice to those of you considering a strategic planning engagement is:

  • ask yourself a few questions first
  • make sure the right people are sitting around the table for a potential planning engagement
  • engage a variety of key stakeholders in a collaborative discussion around readiness
  • do a little research about various planning models
  • develop an informed decision about which planning model fits your internal and external circumstances
  • if you decide to hire an external consultant . . . define the project, develop and RFP, and hire someone with experience using the planning model you’ve chosen
  • if you decide against strategic planning, what needs to happen to position the agency for planning and who is doing what and by when to address those issues

Are you considering strategic planning for your non-profit organization? What considerations are you weighing? Who is involved in this decision? Please scroll down and use the comment box to share your thoughts and experiences. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Dr. Seuss on the growth of your non-profit organization

growth“I laughed at the Lorax, “You poor stupid guy!
You never can tell what some people will buy!”

Business is business!
And business must grow
regardless of crummies in tummies, you know.

— Written my Dr. Seuss in The Lorax
 


 
You hear it all the time from for-profit business people, “If you’re not growing, then you’re dying.” If you want proof that this is the mantra of the business community, turn on the news or open your newspaper. Oh heck, just Google it and you’ll find more than you can read.
However, isn’t this also the mantra of the non-profit community? In my almost 20 years of experience, it certainly seems to be. The following are just a few things I constantly hear my non-profit clients saying:

  • Our facility is too small (or too old), and we need to raise money to build a new one to serve more people.”
  • The state just released a new grant RFP, and we should look at expanding programming if we hope to qualify.
  • We don’t have enough board volunteers and need to add more.
  • Operating expenses keep rising and we need to add another fundraising campaign or event.

changesSo, I guess Dr. Seuss is right again . . . “Business is business!” It must just be a function of human nature, right? Because I see corporate America constantly expanding. I see the non-profit sector doing the same thing. And I may just get sick if I hear one more person rant about the expanding size of government on my television (I probably just need to learn how to use my remote and change the channel.)
There is lots and lots of wisdom in Dr. Seuss’ words and there are lots of directions I could go with my blog post this morning, but it is his last sentence that sticks with me.
I don’t know about you, but I believe “crummies in tummies” is an obvious reference to:

  • stress
  • anxiety
  • uncertainty

I think he is saying the idea of growth is a force at work at all times in our organizations, and it is likely a stressor.  While I believe this to be true, I’m choosing to look at this as a clarion call rather than a truism. I think the good doctor is making the case for . . .

PLANNING

In my experience, non-profit organizations who plan for growth don’t have many “crummies in tummies.” And I’m not just talking about developing one plan . . . those organizations have many plans including:

  • Strategic plan
  • Long term plan
  • Business plan
  • Resource development plan
  • Board Development plan
  • Compensation & Benefits Plan
  • Program plan
  • Marketing plan
  • Crisis communications plan
  • Succession plan

planningI know that many people look at this list and immediately reject it, but if Dr. Seuss is right and “Business is business! And business must grow” then change is inevitable inside of our organizations. And if change is inevitable, then why put on a blindfold and take the proverbal steering wheel of your organization?
If this post intrigued you but you’re not sure how or where to start, you might want to check out a few of these resources I recently found online:

Of course, if you are looking for an external consultant and partner to help your agency with facilitating you plan, I know of someone who might be willing to help.  😉
I am feeling whimsical this morning. So, please scroll down and use the comment box below to share what this Dr. Seuss quote inspired you to think about this morning. Your thoughts and experiences are appreciated and will likely help inspire other non-profit professionals and volunteers reading this blog.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Tools for engaging your non-profit board during planning activities

Planning is an engagement activity, especially when it is done right. This is probably why I’ve found myself signing many contracts with non-profit organizations in the last few years to help them develop long term plans, strategic plans, tactical plans, business plans, board development & governance plans, resource development plans, marketing plans, program plans, etc etc etc.
OMG . . . I think I was channeling Bubba from the movie Forrest Gump there for a moment:

As you saw from that memorable movie clip, this stuff can get a little mesmerizing and rote. When it does, then planning isn’t very engaging at all and begins to feel like Dunkin Donuts’ Fred the Baker. Remember him?

Planning (whatever you are planning) can be frustrating for many different reasons, but two of my all time favorite things that result in tearing out one’s hair are:

  1. when participants don’t understand the issues, strategies or tactics being discussed during the planning process (or they have an incorrect and fuzzy picture of what is really going on at their agency)
  2. when board members don’t want to put their names on any of the action items

I recently found a tool that you might find useful, and I employed a simple exercise that also appeared to work fairly well with helping people better understand and engage in your planning process. I thought it would be fun to share both of these tools with you today.
post it notesExercise: What seat(s) on the bus do you want to sit?
Have you ever found yourself in a situation where your resource development committee is writing your organization’s annual resource development plan in a vacuum?
You know what I mean . . .
The committee meets, strokes their chin, pontificates on goals-strategies-tactics, puts it all on paper, brings it to the board for approval, everyone votes ‘YES’ and the illusion of  consensus descends upon the boardroom. Action plans were sketchy and very few people’s names were listed next to any tactics. In the end, you have a plan and the only person doing anything associated with the plan is YOU.
One simple exercise that your resource development committee could use to engage the board simply involves:

  • Larger poster paper
  • Post-It Notes
  • Pens
  • Approx 5 minutes of time on the board meeting agenda

Let’s say your resource development committee has set its goals and now grapples with what strategies it should include in the plan to achieve the goals. It certainly doesn’t make sense to include strategies with which no one plans on volunteering to help. This exercise — albeit simple — helps get a handle on the question: “What seat on the bus do you want to sit in?” Here is how it works:

  1. Label each poster paper with a prospective resource development strategy (e.g. prospect cultivation, specific special events, annual campaign, major gifts, planned giving, special projects, donor stewardship, etc)
  2. Give every board members a stack of standard size Post-It Notes and a pen
  3. Ask participants to put their name on Post-It Notes and place those notes on the larger posters that represent activities where they would like to volunteer their time
  4. Step back and facilitate a short discussion about what they see (e.g. Are there resource development strategies that don’t have any names? If so, what should be done about that? Are there posters with lots of names? What options does that give the committee? etc etc etc)

This exercise gives your resource development committee an opportunity to:

  • Refine and fine tune the strategies in its draft plan (e.g if no one put their name on the annual campaign strategy, you can eliminate it from your plan OR revise your board recruitment plans to find people with that interest OR change the annual campaign model to better fit the skills and interests sitting around your table, etc)
  • Develop leadership prospect lists for various fundraising activities
  • Target specific board volunteers to engage in discussion about action plans and tactics

Kinda simple, but pretty effective in getting people in the seats that they want to sit in on the fundraising bus.

matrix mapTool: The Matrix Map

When planning, I find that sometimes people get all turned on issues pertaining to:

Profitable activities

vs.

Impact and mission driven activities

Let’s face it. Sometimes our organizations do things that lose money because our mission calls us to do it or the community impact demands we do it. Likewise, we sometimes do things that have nothing to do with our mission because it brings in money and helps fund other mission-focused activities.
These calculations aren’t intuitive to business-minded people who sit on your board.
One tool I found while reading LinkedIn discussion groups is something called a Matrix Map, and it might be helpful to your board members during the planning process.
Steve Zimmerman recently wrote a great article at the Nonprofit Quarterly titled “The Matrix Map: A Powerful Tool for Mission-Focused Nonprofits“. This link is definitely worth the click if your board members struggle with questions like “why are we doing that?” during a planning activity.
What tools have you used to engage your board or help clarify issues in your boardroom during planning and strategic related discussions. Please scroll down and share your experiences in thoughts in the comment box below. We can all learn from each other.
Here’s to your health!
Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Building loyalty is like the "circle of life" with no beginning or end

In case you haven’t heard, DonorDreams blog is hosting for the second year in a row the Nonprofit Blog Carnival in the month of May. This year’s theme revolves around building loyalty among various non-profit stakeholder groups such as donors, employees, volunteers, etc. If you are a blogger and looking for the “Call for Submissions,” then click here. The carnival will be posted right here at DonorDreams blog on Wednesday, May 28, 2014. Stay tuned!

In the interest of building momentum, we’ve dedicated the entire month of blog posts to this topic. We’re specifically focusing on what a variety of non-profit organizations are doing (or are looking at doing) to build loyalty.

Staff-Kids-Volunteers-Donors:
Rinse. Lather.Repeat.
Boys & Girls Club of El Paso

BGC El PasoArt Jaime is the Chief Professional Officer of the Boys & Girls Clubs of El Paso, and he sees the challenges of building loyalty to his non-profit organization as an interconnected ecosystem of staff, kids, board members and donors. He points out that loyalty-based management is a simple concept, but it is something that is very difficult to achieve.

Here is a simplified version of how Art sees his interconnected world:

  • Hire and retain quality youth development professionals who are likable
  • Kids attend the Club because of their relationships with staff
  • Increased frequency of participation deepens the impact of programming which drives outcomes data
  • Good outcomes and impact data inspires board volunteers and provides confidence in talking to donors about the Club’s case for support
  • Good outcomes data creates great relationships with foundations and government agencies and contributes to a vibrant grant writing program
  • Long-term board volunteer relationships (who are consistently sharing awesome success stories from the frontline) with individual donors makes for happy, recurring investors in the Club’s mission

art jaimeIt all ties together,” explains Jaime. “The big challenge is creating a culture that appreciates and strives to create loyalty.”
So, how is Art trying to build an organizational culture of loyalty? He isn’t trying to over think it, and he is starting with things he can easily do. The following are just a few examples:

  • engaging stakeholders in a variety of planning activities
  • modeling loyalty in every day activities
  • recognizing staff
  • thanking and stewarding donors
  • trying to spend more one-on-one time with board volunteers
  • seeking advice and feedback from a variety of stakeholders

Frederick Reichheld is the author of “The Loyalty Effect” and one of thought-leaders on the importance of loyalty-based management. It is amazing how Art’s observations on the interconnectedness of it all is spot on with Reichheld’s words found on page 22:

If we think of businesses as atoms, with customers, employees, and investors as their subatomic particles, then we will study the way those basic components interact to create higher levels of stability and value creation.

Congratulations, Art. I think you are on the right path!

 =================================

If you want to learn more about what other non-profit organizations are doing to build loyalty among various stakeholder groups (e.g. donors, employees, volunteers, etc), then tune in here to DonorDreams blog every Tuesday and Thursday throughout the month of May. We will also publish the Nonprofit Blog Carnival on May 28, 2014 with a number of links to other non-profit bloggers who are talking about loyalty related themes.

Here’s to your health!

Erik Anderson
Founder & President, The Healthy Non-Profit LLC
www.thehealthynonprofit.com 
erik@thehealthynonprofit.com
http://twitter.com/#!/eanderson847
http://www.facebook.com/eanderson847
http://www.linkedin.com/in/erikanderson847

Planning for the worst case — strategic plan or crisis management plan?

The School of Worst Case Scenarios

Guest Blog Post
By Dani Robbins reprinted with permission from Nonprofit Evolution blog
planning2I always joke that I went to the School of Worst Case Scenarios, because when presented with any decision, I try to figure out the worst thing that could happen. It amuses my clients, yet it’s a helpful exercise. Once you know the worst case, you can roll of the dice, create a plan to avoid it or decide it’s not worth it.
Information is just information. It’s what you do with information that makes the difference.
There are a few plans and policies that will help you avoid or at least address a worst case scenario.
Strategic Plan
A Strategic Plan will keep you on the path that the leaders of your organization have elected to follow. There is less potential for failure on an agreed upon path.
If you don’t currently have one and your agency is not in the midst of a crisis, almost any time is a good time to do a Strategic Plan. There is one caveat: I’m not a huge fan of strategic planning with brand new (less than 6 months) Executive Directors. Give your new Exec 6 months before beginning a planning process.
All agencies should have a plan to align their staff and board as to where they’re going and how they’ll know when they get there.
Crisis Management Plan & Crisis Communication Plan
The only time I flat out recommend against starting a plan is in a crisis. Even if you went to the same school (of worst case scenarios) as me, crises still happen. The middle of a crisis is not the time to conduct a strategic plan. In fact, a crisis is the time to pull out your crisis management plan, and also your crisis communication plan.
Having these in a crisis will greatly mitigate the worst case scenario coming to pass and will increase the capacity of your staff to rise to the occasion. I recommend annual trainings on crisis plans.
A Crisis Management Plan will inform your team as to what to do in a wide variety of situations. Bomb threat- check.  Intruder in the building- check.  Shots fired in the neighborhood – check! Missing child- check.  Other things that are equally bad- check.
Knowing what to do is greatly preferable to guessing when the world is falling down around you. A good plan and well trained staff can be your salvation.
If you are starting from scratch, make a list of all the bad things that could reasonably happen and then a plan for what your team should do in each case. Draft a few press releases for the files. Train your staff on responding to the media and if you don’t have one, create a crisis communication plan for your board to appoint a spokesperson. Select a crisis response team and keep all of their names and contact information at the end of the plan.
I used to update that list and send out the entire plan every time I went on vacation. I considered it insurance.
A Crisis Communication Plan appoints a spokesperson and an alternate or two in case the initial person and the first alternate are implicated in the crisis. (Like in the case of the Exec and the Chair having an affair while married to other people; honestly, I couldn’t make this stuff up.) I usually recommend it be the Executive Director, Board Chair and Chair of the Marketing Committee.
Crisis avoidance is easier than damage control. The School of Worst Case Scenarios isn’t a party school but it can save your agency’s reputation and greatly enhance your career longevity.
What’s been your experience with crisis? Do you have great stories to share? As always, I welcome your insight, feedback and experience.  Please share your ideas or suggestions for blog topics and consider hitting the follow button to enter your email. A rising tide raises all boats.
dani sig

Non-profit success depends on failure!?!

A Bias for Failing?

By John Greco
Originally published on August 19, 2013
Re-posted with permission from johnponders blog
targetReady, fire, aim.
Measure twice, cut once.


Uh oh.  Wildly conflicting approaches.
What to do?
Measure twice cut once urges us to plan our work before we act.  Plan, and then work the plan.  Check our measurements before we cut.  Don’t vary from the tried-and-true process.  Make sure all i’s are dotted and all t’s crossed.
The implied consequence if we don’t? — wasted time, material, and effort when we have to cut again … and if we don’t have time to cut again?  Poor quality.
This makes very good sense, and I’ll bet resonates with you.
So what then do we make of ready-fire-aim?  What a stark contrast! Take action! then aim?
There’s a couple of ways I make sense of that instruction.
First, I imagine “aim” here is used more to suggest learning.  Take action, and then learn from the result that the action produced.  Self-correct.  Get ready again, and fire again.  And learn again.  Adjust.  Fire again.
Clearly, this approach actually builds in rework.  How is that efficient?
In a very real sense, it’s not.
But, in some cases (and more than we think I would propose) it is moreeffective.
How can that be?
Seems to me that if the task at hand is to converge on a distinct future outcome that is known in advance, say, like building a cabinet, then the carpenter’s measure twice cut once is the right approach.  If we know what we want; we know what we need to do, and we know what we have to work with, we can position our processes and resources, and cut take action with confidence.
The measure twice cut once approach is slow, deliberate, methodical.  Temporary inaction to produce eventual precision action.  It places primary importance on the avoidance of error.  And, therefore, on quality, and efficiency.
All’s good.
But what if things are changing all the time — objectives, policies and processes, technologies, people — and the “measuring twice” approach morphs into constant remeasuring?  Error avoidance can become paralysis … we so fear missing the shot that we don’t ever take the shot …
Time for ready-fire-aim.  And time for my second way of sense-making from those three out-of-order words.
Perhaps ready-fire-aim is not meant to be taken literally.  Perhaps it is only to invoke a certain mindset.
A bias for action.
Take action, learn, adjust; take action, learn, adjust; take action and learn, and adjust, again …
It is an acceptance of the fact that we’re not going to get it right no matter how cautious, deliberate, and planful we are…
There can be no denying that there’s a whole lot of change happening in our lives these days, personally, professionally, in our communities, in our relationships …
Measure twice cut once might need to increasingly give way to ready-fire-aim.  Because the complexity of all that change can become debilitating; immobilizing; stopping us in our tracks.
And I’m thinking that acting is what opens up the possibility of learning; because acting opens up the possibility of failing.
(Now I understand that inaction might be a great strategy given a certain set of conditions, but I’m thinking it is more the exception than the rule…)
Ready-fire-aim urges us to cut through the complexity of change.
Ready-fire-aim suggests we should have a bias for action.
Acting creates opportunities for learning.
From failure; because, clearly, acting in dynamic, changing environments is risky; we risk failing …
Our success will depend on our ability to learn from failing …
We can’t be afraid of that!
We must have a bias for action.
And trust and confidence that we will learn when we fail.
So, in an odd, yet fundamental way … a bias for failing?
john greco sig