Friday, December 12, 2008

Who's on Your Bus?

Voltaire said "the perfect is the enemy of the good." Collins said that "good is the enemy of great."

Most of you know of Jim Collins, management consultant, teacher, author, and rock climber. His books include Built to Last (1994) and Good to Great (2001). In the latter, he studied 11 companies that made the leap from being merely good to being truly great. Their performance greatly exceeded that of their peers and resulted in sustainably extraordinary results for at least 15 years.

Out of his 11 outstanding performers in 2001, two are pretty iffy right now. Circuit City, struggling to remain profitable, is closing 155 stores and laying off 17% of workforce. Fannie Mae was recently placed into conservatorship.

But the rest, Abbott, Gillette (purchased by Proctor and Gamble in 2005), Kimberly-Clark, Kroger, Nucor, Philip Morris (now a part of Altria Group), Pitney Bowes, Walgreens, and Wells Fargo, are at least hanging in there during these turbulent economic times. Getting it right on 9 out of 11 is not a bad grade especially in today's economy. The guy seems to know what he's talking about.

Back in the day - when times were good (2005) - Collins wrote an excellent monograph for those of us in the nonprofit world. Entitled Good to Great and the Social Sectors, he reemphasized principles that distinguish good (or mediocre) organizations from great ones. Note that he's not talking about business practices. He is talking about disciplines that benefit all organizations.

Today, in the nonprofit world, I believe one of his points is especially important. It's about getting the right people on the bus.

Unless you're living on another planet, you've already looked at your income and expense projections for the coming twelve months. You've undoubtedly looked at the sad prospect of making cuts. This is stewardship 101.

The tough choices get down to decisions on cutting programs or services (which will hurt your mission) or cutting staff (which is your most expensive cost). This is not a good time for anyone, but it is a vital time to ensure you have the right people on the bus, sitting in the right seats.

Nonprofits are often harder to reorganize than businesses for more complex relationship and emotional reasons. How do you tell an employee who's also a donor or church/auxiliary member that their performance is not good enough? What's the ripple effect among other volunteers if you eliminate a position or bring in a replacement volunteer?

Chances are you have some long-time, very nice, barely competent employees. Can you imagine not having that big smile and big heart around every day? But what if that wonderful person is not carrying the load? Or actually hurting the mission?

The bigger question is: during a recession, can you afford the luxury - the outreach to someone who's taking up a seat on the bus? This is the time when you have to be doing more with less. When the team has to be pulling together. When the paceline has to be working together to go further and faster with less effort.

Nonprofits are nearly always challenged by efficiency. This very difficult time may be the very best time to gently let someone off the bus, or move them to a seat they can share with someone else.

Please tell me that I don't sound like Dwight K. Schrute.

Collins concludes with some simple reminders: "The right people can often attract money, but money by itself can never attract the right people. Money is a commodity; talent is not. Time and talent can often compensate for lack of money, but money cannot ever compensate for lack of the right people."

What a remarkable opportunity exists now to strengthen your team for the long haul.

Sunday, November 30, 2008

The Best and the Brightest

Wow! It's a challenging time for nonprofits right now. Heck. It's a challenging time for everyone.

How would you like to be the President Elect of the nation right now? I'm fascinated - and encouraged - by the team Barack Obama is putting together for the executive branch of our government. Part of my encouragement is that he is a good listener, and he is willing to listen to some great minds to help solve the myriad problems faced by the nation.

Some of those great minds were not necessarily his supporters over the last 12 months. Does this make it a team of egos or a team of rivals? Doris Kearns Goodwin writes about the latter in her fascinating study of Abraham Lincoln.

What kind of "cabinet" does your nonprofit have? Whether you define your cabinet as your key management team or your board of directors - or both - it's important to have a diverse mix of people around you.

You need encouraging, enthusiastic people to support you, but you cannot afford to have all "yes" people. You need positive people around you, but beware of those who won't tell you the truth about what's really happening. It's good to surround yourself with the best thinkers available, but beware of over thinking your problems.

History has not always been kind to the best and the brightest. Eight years ago, the new Bush administration pleased many people with its selection of leaders. Not many of those original choices get very good grades today.

Originally, the best and the brightest referred to the people chosen to work in the Kennedy and Johnson administrations. David Halberstam wrote a book by that title. With the clear vision of hindsight, we can see that those leaders of the 60's didn't manage things all that well either.

Based on history, it may be a mistake to assume that you will ensure success by stocking your nonprofit with the best and the brightest. But to avoid getting the best and the brightest people "on the bus" may be a greater mistake.

Supportive, positive - but not non-critical - people who are thinkers and listeners can go a long way towards success. With that, there's one more mistake to avoid.

All thinking and no action will get you nowhere.

Tuesday, October 28, 2008

Hope is Not a Strategy

There's lots of hope in the air these days. With two wars going on, the economy in a shambles, both poles melting, and another half dozen issues over which to wring your hands, you'd better have hope.

As my friend Mark told me: "Both candidates have pledged to lower my taxes, improve my healthcare, make sure my children will be well educated and have clean air to breathe in a country with perfectly safe borders. So regardless of who wins the election, things will get better starting next week. They promised."

It's sort of amusing to see these guys on the national stage selling hope. Often during my long sales career, I spent more time than I wanted selling hope during sales forecast reviews. When the sales aren't there - they aren't there. But try telling that to hardheaded, pollyanna sales managers. When they can't handle reality, it's time to start selling hope.

Now I don't mean to be coming down hard on hope or optimism. We know from life - and the Good Book - that trials create endurance; endurance creates character; and character creates hope. Hope does not disappoint as long as it's placed in the right direction. I've got plenty of hope. I'd like to skip that trials / endurance / character building thing as much as possible in the future.

When it comes to optimism I have gained some wisdom over the last few decades. I am a "recovering obsessor." Yes, I've worried about a lot of small - and big - things that just never turned out to be a problem. It's taken me a while, but I've learned there really is a reason to be optimistic. That's based on personal history.

When you look at national and world history, economists are telling us that things will be okay - eventually. The presidential candidates are certainly telling us this. I do believe this to be true.

But historical knowledge is only based on what has been observed. For many dozen centuries, people believed that only white swans existed. Then Dutch explorers, in 1697, discovered a black swan in Australia.

Based on this improbable discovery, Nassim Taleb has written a philosophy book about our exposure to rare events. There's a fascinating PBS interview with him and the mathematician with whom he studied. This book may not be a page turner, but it does have some important implications for nonprofits.

The world grows smaller and more complex each day. Fragility, unintended consequences, and more interdependence affects us all - at work, at home, throughout the community. What are we going to do about it?

Last month I asked many questions, all related to change for your nonprofit. Of course, now I have more questions.

Are you exposed in the current economy? Are you preparing to make changes? Do you have some real plans for what's next?

What is your strategy? Is it hope?

Saturday, September 27, 2008

The Times, They Are A Changin'

Bob Dylan sang that over four decades ago. It's still true. Read any newspapers lately? Watched any newscasts lately? There's lots of speculation out there. The only thing certain is that we're about to see change like we've never seen it before.

So far, the news is mostly about the commercial world. The Chron and the AFP magazine, Advancing Philanthropy, are doing a pretty good job of summarizing the potential effects on nonprofits. How are you going to manage change?

Paul Otellini is the current CEO of Intel, the world's largest manufacturer of microprocessors. He's a good one for nonprofit ED's to use as a model.

Hmmmm. Okay. You're saying: Intel, $40 something billion a year. My heart and soul cause for good, $400K/year....give or take a few hundred thousand dollars. Exactly how do we make this comparison?

In the WSJ this Saturday, Otellini gave some interesting opinions on management. He said, "A CEO's main job, because you have access to all the information, is to see the need to change before anyone else does."

What's the job of an ED? To meet the mission. Take care of your clients. Maintain relationships with donors. Clearly present the cause with passion. Take care of your staff so they'll take care of you.

You have all the information. You're undoubtedly watching expenses and double checking your revenue forecast. Are you seeing the need to change?

Now is also a very good time to eliminate duplicate services. Who can help you? Where can you partner? Who can join you in the paceline? There are some unhealthy nonprofits that will not survive the next year. That change may be sad, but not necessarily bad.

Who (what organization) can provide the best service for the clients? Once the egos get put aside, that question is often easier to answer.

If your organization is struggling to make it, do you see the need to change? Now is a good time to look at options to merge with a like minded partner.

If your organization is strong, will it stay strong forever? Do you see the need to change? Now is a good time to join forces with a like minded partner.

Merging organizations is never easy, but change is always necessary.

Friday, August 29, 2008

You've Got 30 Seconds...

...before their eyes start glazing over. Can you tell someone about your nonprofit and what makes it unique from the other 9,000 nonprofits in Dallas?

Last December I talked about doing your due diligence to prepare the justification (or case statement) of why someone should write you a check. This time, I'll talk about the short and sweet way to get your message across.

It may not earn you a donation right off the bat, but it may keep you in the game a little longer. At the very least it will plant a seed that you can nurture.

A couple of weeks ago I called an old friend from work. Hadn't talked with him in months (maybe more than a year). We exchanged pleasantries, caught up, and when he found out that I was working for nonprofits, his tone changed. He assumed that I was calling to ask him for money. "That's what everyone does," he said.

I wasn't. I genuinely just wanted to catch up. A few weeks later, sitting at the dinner table with our wives, the subject came up again. He wanted to know more about what I did and for whom I wrote grant proposals.

Amazing! I have the opportunity, and I blow it!! I've got reams of important data in my brain (intermixed with old phone numbers, the jersey numbers of the 1974 Dallas Cowboys, and the final approach speeds of a few airplanes I've flown). I've written 50 plus proposals in the last year, and as I start start sifting through the details, I see the "off flags" start flickering in my buddy's eyes.

My advice for you (and my hope that I will practice what I preach) is to have your "elevator pitch" ready. That's a term from a previous chapter of my life (selling computer systems). If you're riding with someone in an elevator, and you want to get your point across, you have about 30 seconds to make it happen.

Unless you're prepared in advance, you will undoubtedly witness the glazing of the eyes and a friendly "goodbye" when the elevator door opens. So think about it now.

Take your mission statement, scrub it into a few words your mom can understand, apply what makes your nonprofit unique, and be ready to state it clearly in 30 seconds.

Keep it simple and direct. I love the catch phrase for the upcoming missions conference hosted by Buckner. "Go. Be. Do." They are saying "go somewhere, be a voice, do something."

Isn't that great?? Three words. Six letters total. Amazing! Easy to remember. Easy to convey! Perfect for getting people to be involved with missions.

You're probably going to have to write all your mission, vision, facts, factoids, and distinctions down to get it right. Then you need to practice. Mark Twain said, "It usually takes more than three weeks to prepare a good impromptu speech."

Better get started now. Who knows when you'll get that next opportunity. You don't want to blow it like me.

It won't happen again.

Wednesday, July 23, 2008

Twitter Your Nonprofit ?

Do you "tweet?" That's the language of Twitter.

Twitter is the relatively new micro blogging service offered by our friends at twitter.com. These guys let you send very short (up to 140 characters) updates (tweets) to anyone that signs up to get them. Those people are called "followers." You can also restrict delivery just to your circle of buddies...or coworkers.

Followers can receive these updates on a variety of web sites or via email, instant messaging, text messages to your cell phone, etc. It all starts with a simple question: "what are you doing?"

Think of it as simple social networking on a small scale. Then again that small scale has nearly a million users right now. Some are just teenagers standing in line for a movie sending updates to friends. Others are much more sophisticated and frankly, more interesting. (Don't tell the teenagers.)

Whole Foods Market, Comcast, and Dell are using Twitter at an enterprise level. If you're having trouble with your Comcast service, blast a tweet of your frustrations to the world (the default delivery option). Customer support at Comcast monitors Twitter 24x7 for "damage control." See more on this at TBR (The Bivings Report).

Whole Foods is giving Twitter a serious try. They use it as a means of marketing and customer support. It's another way to enhance relationships with its customers. Hmmmm ..... seems like I've mentioned the importance of relationships somewhere else on my blog.

Universities, government agencies, news organizations, and significantly, the Obama campaign are all starting to use Twitter to keep people informed. Can your nonprofit make this work? Sure you can. But do you want to?

Think of two things. Who will be tweeting for your cause? Who will be the followers (the ones interested in your updates)?

If you Twitter just for internal purposes - to schedule or announce visitors for a tour, prepare for the arrival of volunteers, make a late change to an internal function - your followers will just be your staff. But if you plan to Twitter to the board, volunteers, or donors, you really need to have your act together.

Your "tweeter" needs to be informed, interesting, and able to find the balance of being consistent with new tweets without flooding the followers with drivel. Depending upon your cause, you may also have to be sensitive to certain privacy needs.

Your followers need to not be afraid of new technology. That probably means they'll be under 30, but not necessarily, and they may be some of your best candidates for volunteers and new donors.

Will it work at the nonprofit level? Why not? It's a free service, and chances are you want to improve your communications and you're looking for more volunteers and more donors. It's worth a try.

A caveat. Twitter is not especially fast. Look for competitors to get into this game soon.


Friday, June 27, 2008

Brobdingnagian Vision

It's easier to call it "BV."

Brobdingnag is that imaginary land that Jonathan Swift claims Lemuel Gulliver discovered in 1703. It's any fictitious place where everything is enormous in size or quantity and especially in scope or extent.

Does it sound familiar? In your own non-fiction world, what is the extent of the problem you're trying to solve? Aids in Africa? Homeless in America? Foster children in Dallas?

Whatever it is, there's a pretty good chance that it seems overwhelming ... completely daunting ... almost unimaginable that it can ever be solved. But are you dreaming big enough?

Kids (and their parents) in the 50's dreamed of rocket packs and space travel. I loved going to Tommorowland at Disneyland. I thrilled at the rocket launch to the moon. It was terrific fun seeing all the time saving devices in the House of the Future. Just 20 years later, we actually got a microwave oven!

All that stuff is so blase now. From jet packs to instant communication, we've made absolutely incredible technological progress in the last few decades. Many of those dreams from "back in the day" have come true or will be realized in just a few more years. (Seth Godin talks about this in his terrific book of thoughts, Small is the New Big - The Future Isn't What It Used To Be. Thanks again, Seth, for stimulating my mind.)

So today, do we dream more or do we worry more? It's probably the latter given that the world is getting smaller. Anyone's problems can affect everyone. It seems that our dreams are not quite as grand as they used to be.

What about you? Are you thinking about just existing, getting along, making it to the end of the year? Or are you dreaming about solving big ... really big ... problems??

You cannot afford to forget the here and now, but if you're not already doing it, I strongly encourage you to use your BV. Brogdingnagian Vision is a multi-syllable way of alluding to "BHAG" (big, hairy, audacious goals).

Between BV and BHAG, I'm pretty sure I know which acronym will stick. Jim Collins (the Good to Great guy) and Jerry Porras coined BHAG for their books on Building Your Company's Vision and Built to Last. I love big thinkers. I'm no Jim Collins, but I do know people who are setting bodacious goals to address some of our nation's ills.

Interfaith Housing Coalition has been addressing the needs of homeless families in Dallas since 1985. They do a great job of helping accountable families break the cycle of generational poverty and transform themselves into contributing members of the community. They do it at a remarkable cost of just $25 per resident per day.

But given the increase in the number and needs of very poor families (the fastest growing segment of the homeless population) and the significant decrease of government safety nets over the last 10 years, something big needs to be done. And it needs to be done fast and cheap.

Interfaith Housing has a big idea. Based on programs in their own residential model that have been replicated nationally, they have launched a prevention model using best practices from their 23 years of experience and three other nationally known nonprofits. They strongly believe that by proactively working with very poor families before they become homeless, they can reach nearly triple the number they have in residence, avoid the huge disruption to the families (especially the kids), and do it for less.

Beyond that, the Interfaith folks think this new program will be an easily replicable model for use across the nation. That's a LOT of people getting some help.

Can they do it? Will it work? Will it catch on with others? Will it really make a difference to a lot of people across the country?

Stay tuned. The potential is enormous! Thank goodness we still have some people dreaming big ... really big.