averting the crisis in nonprofit leadership

Averting  the  Crisis  in  Nonprofit  Leadership  

7/21/16  1pm  Eastern  

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Our  guest  presenter  »

Marc  A.  Pitman|  @marcapitman  

• Author  of  “Ask  Without  Fear!”    • Founder  of  FundraisingCoach.com,    • Executive  director  of  TheNonprofitAcademy.com  

• Advisory  Panel  member  of  Rogare,  a  prestigious  international  fundraising  think  tank

Marc A. Pitman, CFCC www.concordleadershipgroup.com

Twitter: @marcapitman

THE CRISIS IN NONPROFIT LEADERSHIP

A report on the 2016 Nonprofit Sector Leadership Survey

Why a survey?

w 2 days unpacking CompassPoint’s “UnderDeveloped” survey

w Answering the question “What’s going on with the development director?”

Why a survey? w That led to a

popular seminar on “The Current Crisis in Nonprofit Leadership”

Problems persisted

Problems persisted

Problems persisted

Problems persisted

w Begged the question: “What’s going on with leadership?”

Problems persisted & expanded w Governments in the USA, the UK, and

elsewhere continue to increase regulation

Problems persisted & expanded w Governments in the USA, the UK, and

elsewhere continue to increase regulation

w Municipalities are increasingly looking to tax charities

Problems persisted & expanded w Governments in the USA, the UK, and

elsewhere continue to increase regulation

w Municipalities are increasingly looking to tax charities

w There’s an alarming increase in the reports of boards bullying the CEOs they hire

It’s still not working

It’s still not working .

It’s still not working .

It’s still not working .

It’s still not working

The Nonprofit Sector Leadership Study

gives us insight on why

CLG pulled together partners w  Steven Yoder, Get the Word Out w  Pearl Wright, UNA w  Jay Love, Bloomerang w  Randy Hawthorne, NonprofitHub w  Chris Johnson, StratusLIVE w  Rachel Hutchisson & team at

Blackbaud & Blackbaud K12 w  Bill Tedesco & team,

DonorSearch w  AFP w  And key help from Bill Littlejohn at

Sharp HealthCare

Goal: Dive below the surface w We believe leaders happen at all

levels. w So we wanted to go deeper.

38 Question Survey w .

The Sample w Wide range of leadership

The Sample w Wide range of ages

The Sample

The Sample w Seasoned nonprofit tenures

The Sample

Key Findings w Strategic plan

Key Findings w Strategic plan w Succession planning

Key Findings w Strategic plan w Succession planning w Retiring comfortably

Key Findings w Strategic plan w Succession planning w Retiring comfortably w Creative recruiting

Key Findings w Strategic plan w Succession planning w Retiring comfortably w Creative recruiting w Sharing the story

Strategic planning

Strategic planning

The Surprise w Half of nonprofits are building the

bridge as they cross it!

Strategic planning w Varies by org size

Strategic Speak? w It seems the lower down the leadership

chain you go, the more likely you are to believe a strategic plan exists.

Strategic Speak? w It seems the lower down the leadership

chain you go, the more likely you are to believe a strategic plan exists.

Strategic Wishing w 62% say their plan doesn’t have a

sustainable fundraising plan

Strategic Plan

Strategic Wishing w 62% say their plan doesn’t have a

sustainable fundraising plan w 58% say plan isn’t checked at least

quarterly

Strategic Wishing w 62% say their plan doesn’t have a

sustainable fundraising plan w 58% say plan isn’t checked at least

quarterly w 70% say no benchmarking occurred

with peer organizations

Strategic Wishing w 62% say their plan doesn’t have a

sustainable fundraising plan w 58% say plan isn’t checked at least

quarterly w 70% say no benchmarking occurred

with peer organizations

Strategic “wishing” ≠ Strategic planning

Succession Planning

Succession Planning

Retiring Comfortably?

Retiring Comfortably?

Retiring Comfortably?

Creative recruiting? w 36% of leaders said their nonprofit’s

turnover was “high”

Creative recruiting? w 36% of leaders said their nonprofit’s

turnover was “high” w When asked what creative ways they

were competing for employees, over half left comments

Creative recruiting? w 36% of leaders said their nonprofit’s

turnover was “high” w When asked what creative ways they

were competing for employees, over half left comments – But 61% of those comments were

variation on “Nothing” or “None”!

Creative recruiting? w 36% of leaders said their nonprofit’s

turnover was “high” w When asked what creative ways they

were competing for employees, over half left comments – But 61% of those comments were

variation on “Nothing” or “None”! – 10% in comments thought “offering

benefits” was creatively competitive!

Creative recruiting?

Creative recruiting? w  “We offer a 30% discount to our thrift store.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.” w  “We provide employee of the month recognition.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.” w  “We provide employee of the month recognition.” w  “Competitive strategies? Aren’t you funny.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.” w  “We provide employee of the month recognition.” w  “Competitive strategies? Aren’t you funny.” w  “We pretend everyone gets the same salary and hold a

bonus raffle.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.” w  “We provide employee of the month recognition.” w  “Competitive strategies? Aren’t you funny.” w  “We pretend everyone gets the same salary and hold a

bonus raffle.” w  “We give hats to volunteers.”

Creative recruiting? w  “We offer a 30% discount to our thrift store.” w  “We offer free lunches.” w  “A $200 medical benefit, on which we have to pay taxes.” w  “We provide employee of the month recognition.” w  “Competitive strategies? Aren’t you funny.” w  “We pretend everyone gets the same salary and hold a

bonus raffle.” w  “We give hats to volunteers.” w  “We give a free bus pass.”

Creative recruiting? Almost an abdication of responsibility:

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.”

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.” w  “We hire people committed to the mission.”

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.” w  “We hire people committed to the mission.” w  “We do not compensate fairly.”

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.” w  “We hire people committed to the mission.” w  “We do not compensate fairly.” w  “We simply don’t have the money to do more for the

employees.”

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.” w  “We hire people committed to the mission.” w  “We do not compensate fairly.” w  “We simply don’t have the money to do more for the

employees.” w  “[The board and CEO] do not take the process seriously

and it is a low priority.”

Creative recruiting? Almost an abdication of responsibility: w  “We can’t compete. People are here because they want to

be.” w  “We hire people committed to the mission.” w  “We do not compensate fairly.” w  “We simply don’t have the money to do more for the

employees.” w  “[The board and CEO] do not take the process seriously

and it is a low priority.” w  “Always looking to cut budgets and get a cheaper

employee, rather than paying the market rate for the skills and experience we need.”

Creative recruiting?

Sharing the story w With such a lack of vision and

recruiting/retention, nonprofits must surely be investing in PR, right?

Sharing the story

Sharing the story

Sharing the story

Shared Vision

Shared Vision

Sharing the story

What?! w .

7 Suggestions w It all comes back to the correct use of a

strategic plan

7 Suggestions w It all comes back to the correct use of a

strategic plan – Not an ego exercise—although it is

inspiring – Not something “in your head”—although it

should always be there too

7 Suggestions w It all comes back to the correct use of a

strategic plan – Not an ego exercise—although it is

inspiring – Not something “in your head”—although it

should always be there too w A strategic plan inspires, unifies, and

calls everyone into a vision greater than themselves

1. Write it down! w Can easily become complicated w 4 steps we suggest

1. Write it down! w Can easily become complicated w 4 steps we suggest

1.  What are we doing & why are we doing it? •  Mission, Vision, Guiding Values

1. Write it down! w Can easily become complicated w 4 steps we suggest

1.  What are we doing & why are we doing it? •  Mission, Vision, Guiding Values

2.  How are we going to get it done? •  Goals, Objectives, Situational Assessments

1. Write it down! w Can easily become complicated w 4 steps we suggest

1.  What are we doing & why are we doing it? •  Mission, Vision, Guiding Values

2.  How are we going to get it done? •  Goals, Objectives, Situational Assessments

3.  How will we fund it? •  Fundraising, Strategic Collaborations

1. Write it down! w Can easily become complicated w 4 steps we suggest

1.  What are we doing & why are we doing it? •  Mission, Vision, Guiding Values

2.  How are we going to get it done? •  Goals, Objectives, Situational Assessments

3.  How will we fund it? •  Fundraising, Strategic Collaborations

4.  Who will we tell about it? •  Assessments, Advocacy, Internal & External

Marketing

2. Live the Plan w Include strategic plan objectives in

annual performance review – Can be as simple as having a check box

or self reporting question “Which of the strategic planning objectives did you help with this year?”

2. Live the Plan w Include strategic plan objectives in

annual performance review – Can be as simple as having a check box

or self reporting question “Which of the strategic planning objectives did you help with this year?”

w Set a standing board & staff meeting agenda to review the plan at least quarterly

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

3. Create cascading goals

4. Cross-generational teams w Traditional involving “young people” is:

4. Cross-generational teams w Commit to involving a variety of ages in

real decision making – Boards: create a grid for board &

committees

4. Cross-generational teams w Commit to involving a variety of ages in

real decision making – Boards: create a grid for board &

committees

– Staff: seek teams and involve people

4. Cross-generational teams w Commit to involving a variety of ages in

real decision making – Boards: create a grid for board &

committees

– Staff: seek teams and standing committees

4. Cross-generational teams w Commit to involving a variety of ages in

real decision making – Boards: create a grid for board &

committees

– Staff: seek teams and standing committees

The key is involvement in existing groups – not a “special initiative.”

5. Create leadership training w Two ways to start

1.  Felt needs: poll your direct reports (whatever level you are)

2.  Strategic plan: what skills need to be stronger to accomplish your vision?

5. Create leadership training w Two ways to start

1.  Felt needs: poll your direct reports (whatever level you are)

2.  Strategic plan: what skills need to be stronger to accomplish your vision?

Key is to make sure the team debriefs. Sharing learning hardwires education.

6. Create a succession plan

6. Create a succession plan w .

6. Create a succession plan w Your “Moose Plan”

6. Create a succession plan w Your “Moose Plan”

– Who steps in if you aren’t able to?

6. Create a succession plan w Your “Moose Plan”

– Who steps in if you aren’t able to? – What functions are mission critical?

6. Create a succession plan w Your “Moose Plan”

– Who steps in if you aren’t able to? – What functions are mission critical? – What systems exist to make on-boarding

as seamless as possible?

6. Create a succession plan w Your “Moose Plan”

– Who steps in if you aren’t able to? – What functions are mission critical? – What systems exist to make on-boarding

as seamless as possible?

Who do you need to be training or mentoring to take over for you?

7. Learn storytelling

7. Learn storytelling w 83% of leaders say “communicating a

compelling vision” is in their top 3 priorities

7. Learn storytelling w 83% of leaders say “communicating a

compelling vision” is in their top 3 priorities

w Yet 62% said they weren’t sure how to create one

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Human beings are hardwired to

remember stories

7. Learn storytelling w Start with “internal” stories

– How was the nonprofit founded? – What values exemplify how staff

respond?

7. Learn storytelling w Start with “internal” stories

– How was the nonprofit founded? – What values exemplify how staff

respond? w Move to external

– What fight are you inviting people to join? – Most importantly: make the donor the

hero!

Don’t go it alone

Don’t go it alone w You could be building the bridge as

you walk across it…

Don’t go it alone w You could be building the bridge as

you walk across it… ...only to find it’s not ending up where you expected.

Don’t go it alone w You could be building the bridge as

you walk across it… ...only to find it’s not ending up where you expected.

w Seek help: peer groups, professional associations, executive coaching

The future can be brighter… 1.  Write the strategic plan down 2.  Let the plan be a roadmap & a

compass 3.  Create cascading goals 4.  Create cross-generational teams 5.  Start leadership training 6.  Draft a succession plan 7.  Learn storytelling

Concord Leadership Group LLC Questions? Ah-ha’s?

Get a free copy of the summary report: www.ConcordLeadershipGroup.com/report/

For Executive Director strategies:

www.ConcordLeadershipGroup.com/ceo/

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