Welcome to the Age of the Builder

In a recent issue of the Harvard Business Review, Umair Haque wrote The Builder's Manifesto. He writes that we needed Leaders in the 20th Century: people who forged people and resources, like Jack Welch at General Electric. Jack made his shareholders a lot of money in his time, and organized and acquired a lot of businesses. Jack and GE defined success in the 1980's and 1990's. There was a certain cult of personality around him. At the same time, Jack developed leaders who went on to run many other companies when they reached the top of their career ladder at GE.
What's so different about the 21st century? In some respects, it's still too soon to know. We're only one decade in. But we have seen with the collapse of major banks and financial institutions that brought us to the edge of a Great Depression that a new kind of model for leadership is required. What were the leadership qualities that undermined Citibank, Merrill Lynch, JP Morgan Chase, BankAmerica?
You can read more about the Builder's Manifesto at http://bit.ly/62rTQV.
Today, with a wave of senior nonprofit leaders preparing to retire after multi-decade careers, we need to find Builders to transform our organizations. It will be a mistake to recruit clones of the 20th century prototype to carry the banner of our 21st century mission, vision, goals.
How will we identify the Builders of the 21st century to replace the Leaders of the 20th?
Here are three comparitive pointers from Umair Haque:

The boss drives group members; the leader coaches them. The Builder learns from them.
The boss inspires fear; the leader inspires enthusiasm. The Builder is inspired — by changing the world.
The boss assigns the task, the leader sets the pace. The Builder sees the outcome.

Whether we're searching for our 21st century CEO, or members of our community to serve on our board, I think it's useful to keep the concept discussed by Umair Haque in mind. This is not a blueprint. It's another way of thinking to apply to our process of building effective nonprofit organizations.

A Choice Donors Can Believe In

How often have you seen a letter or e-mail from a nonprofit/community benefit organization giving you multiple choices of what you can support? I've seen lots of them, and early on in my career, I probably wrote lots of them, too.
Intutively, it makes sense, no? Give the prospect or donor lots of options to support. They'll gravitate to one, right? They'll pick their favorite from the list and write their check to support that program or service.
Unfortunately, that's not the way it works, according to principles of direct response research. Fact is, if you give most donors a laundry list of services, they won't be able to focus. In most instances, these donors or prospects will get confused by all the options. And when confusion sets in, the prospective donor will frequently opt out.
Barry Schwartz wrote Paradox of Choice for the Freakonomics column of the NY Times. @jhusson tweeted about this recently. The link: http://bit.ly/6k3SN5. The bottom line: too many choices discourages choice. The research shows, if you give a small number of options to consumers, this can work in your favor; if you give a wide array of choices, headache and decision-avoidance will follow. In my view: less is more.
So, when you're making your pitch for a donation, keep this in mind:

• Keep it simple and make the pitch direct and uncomplicated
• Limit the number of choices you're asking the donor to support
• If you're suggesting a gift amount and the donor has a history with you, indicate last year's gift as an option, and offer graduated increments upwards...with a ____ at the end
• Connect the appeal with people receiving your service
• A story about a person receiving the service is the best approach

By the way. A tip of the hat to Jim Husson, Senior Vice President of University Advancement at Boston College, for posting this on Twitter. Jim has a solid perspective on what makes donation work.

Oh. And the more you practice, the more you look at what "the competition" is doing, the more you meet colleagues in this business and share ideas, the more effective you'll be. And your board will love you!

Should Our NPO Get Into Social Media?

Twitter (the 140-character micro-blog) and Facebook (the cool communication tool loved by the Millenials) are two social media platforms that nonprofit (community benefit) organizations are playing with, applying, checking out. I recommend you get into the act.
Yes, you run the risk of getting hooked...addicted to the wealth of people, blogs, ideas out there on the internet. The cool thing is that Twitter helps you find interesting stuff quickly, and Facebook helps provide a low-cost platform to communicate if you have lots of volunteers, members, special event participants, clients who are comfortable being "out there."
And today, the Gen X and Gen Y folks particularly ave very comfortable being out there.
I'm a pre-boomer, so I'm a bit out of my element, using all these tools.
But when I jumped into Twitter last spring, I was hooked. I now follow over 700 people and organizations, and have 750 following me. And I'm just getting started! I use the new Twitter list feature to help me organize folks: Social Media Mavens, Nonprofit Gurus, Boston, Food, Travel, Nonprofit Orgs are just a few of the groups. This helps me focus in when I visit Twitter for one or two 45-minute sessions each day to see what folks are saying, send a few Direct Messages when the spirit moves, and post ideas that I'm working with...interesting things I'm reading.
I follow @johnhaydon, a social web strategist. He comments on and finds interesting social media users. He gets way over my head when he advises webmasters and other techies on things like Facebook Connect. Social Media Developers get a lot from John.
Also like to read @afine...Allison Fine...who describes herself as a "social media guide. She finds links to stuff NPO leaders like to know.
@gatesfoundation is always interesting. They are the biggest foundation out there. I'm interested in knowing what they're interested in.
@nonprofitorgs is a great Twitter micro-blogger. They have 236,000 followers! They recently blogged on 'how to raise social media ROI" at http://bit.ly/8mFgzH.
There is so much to learn out there, and so little time.
I met Joanna Rothman at the Mass Nonprofit Net conference last month. She's the Volunteer and Marketing Manager at WGBH and is using Facebook to keep her volunteer crew communicating. She'll be speaking at the Nonprofit Consultants Network (Boston) March 26 panel I'll chair on social media.
Please feel free to contact me for more neat folks to follow. I like to learn by example. And there are some great people out there helping make the case why the answer is YES: Your Nonprofit should Get Into Social Media!

Steve Smith
Principal
It's The Results, LLC
Board Development. Strategic Planning. Fundraising

Help Your Supporters Get in the Spirit!

Donors like the idea of making Hope possible.

If you've been procrastinating about sending your annual holiday appeal to supporters and friends, take some time to craft a request that communicates the ways you extend Hope to your clients. And get that request out by December 11.

Thanksgiving is behind us, and people across the USA have lots on their minds. Tonight, they will hear from their President about the necessity of more troops to Afghanistan. President Obama will have to search long and hard for support from politicians. But I'll bet when the polls are taken in the following days, most Americans will be behind our commander-in-chief. I look forward to listening to him tonight. And learning where he sees Hope for the Afghan people, to overcome the theocratic tendencies alive and well in their country that had them tied in knots when the Taliban were in charge. Not to mention the ascendency of al Queda and the threat they pose to peace-loving people everywhere. Right here.

Our President will gain public support to the extent he can share a vision of Hope for people in Afghanistan. And then the extent we agree (or not) with how this connects with our Homeland Security.

Asking people for money when they have economic hardship and fear of international dis-ease, seems counter-intuitive. Actually, No. Asking for financial support right now is exactly the right thing to do.

Because we all need Hope. We can't buy it. We know we can't go to the store and purchase something that'll provide Hope. But most of us have the idea that whatever we have, we are fortunate. And that right near us are other folks who are unfortunate: they've lost their homes, they're dealing with a crippling disease, they've lost a job, they've been reduced in their hours.
Yet, in spite of it all, it's true that most of us know deep down that there are others who struggle more than we do.

We want to help.

And this is where you come in. You will help your supporters get in the spirit.

Your holiday appeal should be off to homes via regular mail or e-mail or Twitter or Facebook by December 11. Whatever way(s) work best for you.

But remember: you are asking for support of the mission. For support of the people who benefit from your mission. You are not asking donors to help the nonprofit as an end in itself.

Communicate Hope, and you will shine a path through you to those you serve.

Happiest of holidays to each of you.

And thank you for making life better. At home. Abroad.

I count your efforts among my blessings.

Creating Change from Spare Change

The various social media (Twitter, Facebook, Linked In, blogs, more) offer lots of ways to build out communications for community benefit (aka nonprofit) organizations. Remember when your group got started? Maybe it's been around too long for current leaders (staff, board) to remember, but at some point there was something missing in the community. So, this is the USA, and we love to get together to right the wrong or forge the missing link or put on the show. So, we form a nonprofit and apply for tax exempt 501(c)(3) status.
And as our group grows, raising some money, making new friends, fighting the good fight, parameters take hold (federal/state/local law, by-laws, accounting standards, ethics, etc) and calcification sets in.
Of course, we need to play like good boys and girls and obey laws.
But we need to figure out how to keep that innovative, revolutionary spark kindled that was there at the outset. How can we overcome the needs of the bureaucracy to keep things as they are and get those creative juices flowing so we might achieve the impossible?
Here are a few things to keep some forward motion:

• Commit to reaching out to bring new voices and ideas coming in.
• Activate the commitment by using Twitter, Facebook, blogging.
• Keep the rules of the road in mind, but loosen up the reins so there's a free flow if ideas.

Identify allies on the board of directors who are open to the new. Who know change is the green energy source that helps attract the resources you need to make the mission a reality. Without energy, the mission is dead in the water.

Jordan Viator, writing for Connection Cafe (http://bit.ly/43TChi), quotes Seth Godin, a bright light on social media:

“Take a look at the top 100 twitter users in terms of followers. Remember, this is a free tool, one that people use to focus attention and galvanize action. What? None of them are non-profits. Not one as far as I can tell. Is the work you're doing not important enough to follow, or is it (and I'm betting it is) paralysis in decision making in the face of change? Is there too much bureaucracy or too much fear to tell a compelling story in a transparent way? …..Where are the big charities, the urgent charities, the famous charities that face such timely needs and are in a hurry to make change? Very few of them have bothered to show up in a big way. The problem is same as the twitter resistance: The internet represents a change. It's easy to buy more stamps and do more direct mail, scary to use a new technique…Please don't tell me it's about a lack of resources. The opportunities online are basically free, and if you don't have a ton of volunteers happy to help you, then you're not working on something important enough. The only reason not to turn this over to hordes of crowds eager to help you is that it means giving up total control and bureaucracy. Which is scary because it leads to change.”

So, what do you think? Is this ringing a bell for you?

If You Got the Money, Honey, I Got the Time

Nothing vexes nonprofit boards more than fundraising. It's a never-ending battle, to generate the revenue to get the mission done. Why is this the case? How come there is so much frustration over raising bucks?
True, we're in some challenging times. Supposedly, we're emerging from what may be the worst recession since the Great Depression. And we're learning, daily, that unemployment continues to rise and new job creation lags behind a recovery. How can we deal with this misery and get some energy to raise the money we need to do the work that needs to get done?
Here are just a few tips that come from my days as a fundaising executive with the American Lung Association, including three-time Gold Award winner (in New Hampshire) for fundraising achievement:

• Tell our story. In our holiday appeal, in our newsletter, on our website let's tell our story about what we're doing for our clients. Be sure to make the appeal focused on those we serve, not "poor us." When we whine about hard times it sounds like we want the $$ for the organization, not for those we benefit with our service. Keep it simple, and ask.
• Check out our website. Have information (more stories!) that make the site attractive for return visits both for our clients and our supporters (donors!). Use Flash Player and have video, changing it weekly so there's fresh new material to bring people back. Post a weekly blog with fresh material on what's up with the benefit you bring to the community. Is it easy to donate? Are you using PayPal or credit cards?
• Re-tool event to raise more $$. Events raising under $10,000 should be evaluated for their capacity to raise significant $$. Your development committee needs to formulate a plan that'll get you step-by-step to the goal you need to reach. All folks connected to you need to engage their networks to help somehow raise appropriate amounts that'll get you where you need to go. A sound plan well executed will go a long way to getting you there!

There are lots of folks out there looking for organizations like yours doing good work in your community who they want to support. Times may be tight, but particulary at the holiday season most people will find a way to help their community at the same time they do their best to make Christmas merry for family and those nearest and dearest.

It's do-able!

The Board Role in Marketing: The Plan and Its Execution

Nonprofit boards of directors can learn and become very helpful in applying principles of marketing to advance the mission of the nonprofit they pledge to support.
The concept of "marketing" is in transition as people gain comfort and experience employing social media (blogs, Twitter, Facebook LinkedIn, YouTube, and more). Fortunately, marketing is not rocket science: it's built on some pretty common sense concepts.
When I write or talk or consult about marketing, I'm thinking about this:
A set of strategies designed to influence behavior of target audiences by preparing beneficial exchanges that will build a relationship between the individual and the organization (Alan Andreasen, Strategic Marketing).
I advise noprofit organizations to formulate a marketing plan that coincides with the strategic plan. And I advise that the strategic plan be rooted in the primary customer(s) of the nonprofit: the people you serve whether you're prividing education, health care, or a direct human service; or, if you're an arts organization running a community theater or any creative arts program. When your nonprofit organization is clear on whom you serve (primary customer) and the thing or service you deliver that has value to that customer, and you can measure the impact you're having, your nonprofit has taken the basic steps in executing a marketing plan.
The Marketing Plan addresses components of the marketing mix and how your nonprofit will apply it. The marketing mix includes Product, Placement, Price, Promotion. If we're lucky, we have a Marketing and Communication Committee among whose members are professionals who know how to apply the mix to bring maximum benefit to te primary customers, bring recognition and supporting customers (donors!) to the nonprofit, and advise the nonprofit on how to measure results in a low-cost way.
A tool I like to use when training boards in their governance role in marketing is Gary Stern's booklet, Champions With a Cause: The Nonprofit Board Member's Role in Marketing (First Nonprofit Education Foundation). Among other things, Gary points out that the board needs to

• Root all marketing decisions in the mission
• Develop Governance policies that guide marketing
• Use care and diligence in developing the nonprofit brand
• Develop clear marketing roles for board members, collectively and individually

Developing this Marketing Plan will help keep everyone strategically focused and mission focused.

Board members are not always fond of having to do this kind of work. If you have one or two members with professional marketing or communication experience, they can create and reinforce the kind of message you're reading in this blog. Enlist these volunteers to help lead the effort and coax the kind of behavior out of the board that will put your nonprofit on the map in your community. It's a challenge to get the energy together to move the board in this direction. Think of these words of Eleanor Roosevelt as you embark on this effort: Do what you feel in your heart is right, for you'll be critized anyway. Better to take the "damned if I do" approach. "Damned if I don't" is the road to nowhere.

Steve Smith is Principal of It's The Results, LLC, a consulting company focused on board development, strategic planning, fundransing. Learn more at www.itstheresults.com. Follow Steve on Twitter @STEVENETWORK. E-mail: s.p.99smith@gmail.com.