Wednesday, March 30, 2005

Conflicting wants

Got a nice note from a Canadian MBA student today who noted that her final paper topic was about the issues nonprofit execs face that often arise when they try to meet the wants of two conflicting markets---the people they serve and the people who pay.

How often has this dilemma faced your organization, particularly when there are service cuts/changes mandated by a funder that directly impact on services in a way that upsets the people an organization serves? Here, the nonprofit is caught between the proverbial rock and a hard place. If they don't make the changes, the funder can (and will) pull their funding or penalize the organization in some way. If the do make the changes, they are seen as the villain by the people that they most want to help.

What to do? Couple of suggestions.

First, don't wait for this conflict to arise before you take action. Engage with all your markets now, not just in a crisis. Treat all your markets like valued customers (even your funders) and ask them what they want, explore what their problems are, and try to solve them. Earn the trust of both the funder and the service recipients. Let them know you care about what they think and are concerned about helping them.

Don't buy it? Try thinking of it this way. Imagine you live on a street where your neighbor to your right and your neighbor to your left are having a big, big dispute. They are fighting on your lawn day after day. It is obviously in your best interest to try to help them compromise. But if you have never made an effort to get to know your neighbors, if they don't know you really have their best interest at heart, why should they trust you (and being a trustworthy negotiator is a key part of successful negotiations)? If you had gotten to know the neighbors BEFORE their dispute, you could do some good. But you can't start earning trust after everyone's mad.

Reach out to your markets now. To your funders. To your service recipients. Don't wait until a crisis erupts and everyone has their hackles up.

It's too late then, and your mission suffers.

And, thanks, Hannah, for raising this issue again for me.

Monday, March 28, 2005

Fam time, thank you.

As I write this, I am sitting in our hotel room in La Jolla, just north of San Diego, listening to the surf and the birds. My body is on Chicago time, so I'm up way early, even though the rest of the family is asleep. This week is family time, so blogging may wane a bit. My wife and daughter and I are here for a couple of tourist days and then we head to Seattle to see our Microsoft son, Ben, and have a dual birthday party, before heading home Sunday.

I am very, very thankful to have a functioning, happy family that values its time together. In my work, I train or consult with so many organizations who either work with disfunctional families, or the sad and sometimes tragic results of those disfunctions. Whole organizations formed and funded to deal with the discarded pieces of what, in my life, has been a central joy.

I am really, really lucky.

Saturday, March 26, 2005

Vetted...and rejected...for good reason

A couple of weeks ago, I had an interesting experience. Some folks from Michigan had inquired about my speaking to a group of nonprofit capacity builders about working with faith-based groups, and the similarities and differences in that work between faith-based and secular clients. I agreed, and as I write this, they are considering the possibility. During the conversation, I noted that one of the key differences between the two kinds of organizations is in the way that faith-based groups check your references and suitability for working with them.

The conversation was barely done when I got a call from a nationally recognized very conservative Christian group who is planning to provide what sounds like superb management training to boards and staff leaders of a large number of crisis nurseries across the country. The person in charge of this effort, who I will call John, was extremely pleasant, and very complimentary of my books, which apparently he has used extensively in his nonprofit education and career. He wanted to know if I was interested in providing management training to the boards and perhaps later, to the staff, based on the writings in my books.

John was very professional and very direct, asking if I knew of the belief structure of the organization, and then what my views were on the key issue at hand: abortion. I told him that everyone I knew, on all sides of the issue, wanted less abortions, and so did I, but that we probably differed on the way of getting there. We talked about his beliefs and mine, his experience and mine around abortion for perhaps 20 minutes.

It was as pleasant and mature a discussion on this viscerally dividing issue as I can recall. But at the end, we agreed that my more liberal views on the issue might make it difficult for some if not all of the trainees to listen to my management advice. We parted friends.

When I got back from the U.K. on Thursday, there was a very nice letter from John, thanking me for my time, and providing me with some reading and videotapes showing what his organization was doing in the area of crisis care.

Two lessons for me here: First is that what John did was totally appropriate. The political/spiritual/ethical underpinnings of a consultant are important to the consultant's fit with the organization. He asked the right questions and in the right way. All nonprofits can learn from his actions, because you don't want to hire people of significantly different values, whether you are faith-based or not.

Second, and more important, is that even though at first glance John and I would seem to be on opposite ends of the abortion issue, we had more common ground that we thought. A lot more. That was very comforting, certainly to me, and I think to him. I have thought about the conversation a great deal, and wondered how many other issues that divide us could be brought into better perspective if only people will sit down, talk (not yell), listen (not wait for their turn to talk), and think (not kneejerk).

Certainly if we can find a common set of things we agree on in an area like abortion we can do it for the many less divisive issues that vex us. Good negotiators know that you start any effort at a settlement with first listing the things that are agreed on.

I'm going to work on that, trying to find the half-full part of the glass first when I have differing views with others. Even if we agree in the end to disagree, as John and I did, we leave knowing we did agree on something. And that is something to hold on to.

Wednesday, March 23, 2005

Not so different

After three days here with nonprofits of all types, I am confident that I am correct in relaying this information to all: The most important issues facing charities in the United Kingdom....not in priority order

1. Funding: There is not enough.
2. Accountability: While a good thing, there is increasing and usually unnecessary oversight.
3. Boards: Not enough interest in the organization or too much interest in management rather than policy.
4. Not enough new (read younger) volunteers and board members coming in the door.
5. More and more administrative requirements and needs (audits, IT, etc.) without resources to provide them.

Do any of these sound familiar? Do all of them?

I thought so. No matter where you are on the planet, the big issues are still the same. My good friend Carol Weisman, President of Board Builders, went to do training in Australia last year, and reported the same thing. Friends who work in India, China, and Africa report the same issues, in varying degrees.

The moral of the tale? We all are human, and "our" issues are not as unique to us as we would like to think they are.

Home tomorrow.

More same than different

After three days here with nonprofits of all types, I am confident that I am correct in relaying this information to all: The most important issues facing charities in the United Kingdom....not in priority order

1. Funding: There is not enough.
2. Accountability: While a good thing, there is increasing and usually unnecessary oversight.
3. Boards: Not enough interest in the organization or too much interest in management rather than policy.
4. Not enough new (read younger) volunteers and board members coming in the door.
5. More and more administrative requirements and needs (audits, IT, etc.) without resources to provide them.

Do any of these sound familiar? Do all of them?

I thought so. No matter where you are on the planet, the big issues are still the same. My good friend Carol Weisman, President of Board Builders, went to do training in Australia last year, and reported the same thing. Friends who work in India, China, and Africa report the same issues, in varying degrees.

The moral of the tale? We all are human, and "our" issues are not as unique to us as we would like to think they are.

Home tomorrow.

Sunday, March 20, 2005

Different Country, Same Issues

First post from London for this year. What a vibrant city, even on a grey day.

Got into a wonderful conversation with my driver in from Heathrow. He and his wife are Croation, both left during the war and were "saved" in his words by a local Croation NGO during the worst of the fighting. He thinks nonprofits (NGOs) are terrific.

Another conversation with three people (all Brits) next to me in a cafe here in Islington started about my crutches and injury and soon moved on to charities, as they are called here in the U.K. They were concerned about the U.K. looking bad compared to the US in relation to people's willingness to contribute time as well as money to charitable causes. I suggested to ways to help more and places to contact.

The Russell Commission here has studied the issue of getting more youth involved in charitable causes. Their report is found at the link above. The findings are SO similar to the issues in the States it makes my head hurt.

I give my master class in marketing tomorrow, and then I have a free day to cruise. Wednesday is the big NCVO Trustee conference where I'll be doing a workshop on generation change, sitting on an expert panel, and in general, hanging out with good people. I was the keynote at this conference in 2004, so expect to see many familiar faces.

Saturday, March 19, 2005

Over the Pond

Headed back to the U.K in about 6 hours. I'm really looking forward to it. I love the people there, and get a chance to be reminded that nonprofit issues are nonprofit issues no matter where we are on the globe.

I'll have people come up to me and say things like "I know you probably don't have this problem in the States, but our board members some time seem out of touch, or try to take over management". or "Our foundation funders don't seem to understand what we really do."

Sound familiar?

Should be fun, and now that I can actually walk short distances without crutches and am cruising around in regular shoes, this trip is going to be a lot easier than I had feared five or six weeks ago.

Next post from the Greenwich Mean Time time zone.

Friday, March 18, 2005

Difficult issues

My book clubs this week talked about the 5 Temptations of A CEO, and Covey's 8th Habit. It was a terrific set of discussions with people from all over the US. One person noted that these discussions (each with about 10-12 people on the phone) refreshed her because she was reminded of what terrific people are in our field.

The other thing that this month's conversations reminded of yet again is how much time managers spend and frustration they with two things- enforcing the rules fairly and consistently, and engaging groups in vibrant, and yet not personal discussion and positive argument.

Pretty much everthing we read, including books like Good to Great emphasize the need for constructive discourse to make the organization better. And all you have to do is watch people for a week and you know that the thing they resent the most are issues around "fairness", so if managers treat them differently than others, it hits a hot button.

And yet we still struggle with these two gordian knots of management, trying to find the right balance between being sensitive to individual needs and not having any rules at all. Trying to craft a group of people into a set of seekers--trying to make the organization better while suppressing their ego, so that group discussions that may well dis their area of responsibility aren't taken personally and are seen as positive to the organization.

I wish I had a solution, but I know it's just a relentless discipline of careful thought, trying to do the right thing all the time, and thinking on our feet. And we'll get it right more than we get it wrong, but we won't always get it right.

Oh, yeah. We're human.

Which, of course, is what makes it so much fun.

Thursday, March 10, 2005

Walk a Mile (or have a meal) in My Shoes

As someone who is very interested in more integration in society for people with disabilities, I love this:

Heard on NPR this AM about a restaurant in Zurich called the Blind Cow where patrons dine in complete blackout, served by bartenders and waiters who are blind. It is apparently an amazing sensory experience, very popular, and other restaurants in Europe have opened with the same theme, although I'm not aware of any in the US. If you are, let me know.

Here's the link to the NPR audio, and a link to an article, and another article.

What a great idea - and what a good lesson for all of us about experiencing things from others' point of view.

Wednesday, March 09, 2005

Books worth your time....

Two new books for by book clubs this month that are worth your time....

First, a short, easy, and very worthwhile read is found in
The 5 Temptations of the CEO by Patrick Lencioni. It's a short fable chock full of good stuff for managers and leaders.

Second book is long, but very worthwhile. Steven Covey's The 8th Habit is great. Includes a DVD full of short movies that illustrate Covey's points. I have more underlining and comments in this book than in any other I've read in the past year or so. If you have a long drive time, you might want to get the audio CD.

These are books that belong in your head, not on your shelf.

And, a big welcome to all the readers of Harvard Business School's Working Knowledge. The publication featured the Mission-Based Management Blog....glad to have you with us.

Sunday, March 06, 2005

Group giving

As regular readers know, I am not a fund-raiser/development person, but I do like great ideas in giving.

One such idea is SO 21st century--since it is about groups. Seattle's Social Venture Partners sponsors over 20 giving circles worldwide. These are wonderful since the groups focus on a specific social problem, and the circle members pool their money and their smarts to decide which nonprofits get money, how much, and for what approach to solve the problem.

This is more of a great trend for donors to become very involved with their money, one that I applaud, although I know it makes some execs and development execs moan and roll their eyes.

For more on giving circles, go to GivingForum.org/givingcircles

For an recent article in BusinessWeek (actually the article that reminded me of this) go to this article

You might think about starting a giving circle in your community, or based around an issue that you really care about.

Saturday, March 05, 2005

Convincing doubters.....

In a comment posted yesterday, Ken asked: "...can you discuss effective ways to change stubborn mindsets (of CEOs and Boards) in secular and religious charitable organizations to open to the many great ideas you bring to the table...?"
Thanks, Ken, good question. Not only related to convincing people to adopt my ideas, but for the many of us who struggle to get people to change at all!

OK, long answer. First, you don't have to convince some people--they are already with you. There's another group that will NEVER buy in to what you want to do. It's the third group, the people in the middle that you need to convince. This is the bell curve, and it rules in most social change interactions.

The people who you CAN convince (the others have their minds set) are who you want to address. Just a reality check: You can't get em all.

Next, remember my adage---the job of a steward (and all staff and volunteers are stewards) is to get the most mission out the door using ALL the resources at hand. That includes new ideas, changes in policy, best practices.

Depending on the group and the change needed, there are a few ways to jump start them--and it depends on the group dynamics.

1. Group reading: Have the group read materials that support the ideas you want to convey. Make sure that the readings focus on how the organization got better at what it does. Make the readings short, and discuss what's being learned in between readings. For example, you might read a key book two or three chapters a week.

2. Group discussion with an outside facilitator. Get them talking about best practices, how the organization can improve. The outside facilitator keeps an objective viewpoint

3. Field trip: go see other organizations that have adapted to the changes you want to implement. Seeing is believing, and it overcomes a lot of resistance. Make sure there is time to meet with staff and board of the field trip organizations.

4. Standards. If what you are trying to change is part of a set of standards like Maryland Nonprofits' Standards of Excellence, then use them!

5. Keep at it. Most significant change takes a long time. A great book on change management is The Heart Of Change by John Kotter.

Changing minds is very, very hard. But changing them to help the people you serve is worth the effort....

Thursday, March 03, 2005

Core Competence--or focus on what you do well

Had a great trip to MD. Wonderful audiences, and a big shout out to the Maryland Nonprofit staff, particularly Jill, for taking such good care of me.

Core competence is so important. I was reminded of this on the flight home when I got into a conversation with my seatmate about nonprofits that he volunteers for. He noted again how one of them does so much for so many people and does nothing "really well" and how the other nonprofit does a few things, but "all with excellence". The first NP grows faster, the second slower. The first says yes to everyone and the second says no to a lot of people.

His question: which is better? My answer: the second nonprofit will probably be around a lot longer--but either way, they are doing the right thing-focusing on what they do well. Don't the people we serve deserve only the best, and not just the adequate?

My newsletter
this month is also on this subject. Check it out.....

Wednesday, March 02, 2005

HBR Article -- Not Much New

Just finished the HBR Article Should Nonprofits Seek Profits? by William Foster and Jeffrey Bradach. Pretty disappointing. Not a lot new here, although the reminders are good, that business is risky and nonprofits often try to go into business naively. But it takes a very negative tone, in my view. Nonprofits seek profit naively? So do for profits, but that doesn't get mentioned. And, the authors focus pretty much exclusively on commercial ventures outside of the mainstream of what they seem to infer is "what a nonprofit should be doing"....
What about nonprofits expanding a service to a new county? That's a new venture....or fund raising in general; isn't that supposed to be profitable? I mean, would you ask your fund raiser to NOT seek a profit when planning a special fundraising event?

I've been preaching that nonprofits should seek profits -- overall--- for 25 years. Profits enable more mission. I've also been preaching that new ventures are risky, need to be focusing on a mission outcome and need to be well planned and executed--and even then may fail. Nonprofits need diverse revenue streams - a mix of government, community, foundation, and earned income.

I must say that I work with with a great group of nonprofits who provide products and services to the federal and state government by employing people with disabilities. If you see folks with disabilities cleaning your post office, or mowing the lawn in front of a military base, they are almost certainly from these programs. The chemical protection suits our servicemen and women have in Iraq? Made by these people. The new Army Combat Fatigue? Same thing.

These nonprofits do much more than just provide goods and services to the feds, but the key here is that they have learned the skill of business planning and business operation to help pursue mission, and they are making money at it.

Read the article, but don't get scared away. Just learn the business skills FIRST, before you consider expanding into now areas of work.