HOW WOULD YOU STACK UP?

Glassdoor.com is a new website that is shining light into the crevices of corporate America by asking for evaluations from those who know best – no, not shareholders -- employees and former employees. The site offers one stop voyeurism for jobseekers, promotion hunters and the idly curious to review anonymously posted assessments of current or past employers and salary information. The sticky part is that to access the information you have to “Post your anonymous review or salary info for the community to see. We will never expose any personally identifiable information to other users…. It's a simple model – tell us what your work is really like, and get back exactly what you've put in from the rest of the Glassdoor community.”

It’s no surprise that Glassdoor was created by Richard Barton, founder of Zillow and Expedia. From my experience in real estate land, Zillow can be wildly inaccurate. Anonymity doesn’t guarantee truth or fairness. They offered and later withdrew in the face of severe criticism the opportunity for the public to anonymously criticize other people’s houses. Bear that in mind before you bear your soul. Naturally, Zillow, Expedia and Glassdoor employees give glowing reviews of their own employers. Regardless, Barton ought to be a major donor to the Society of Professional Journalists, an organization that works to keep the Freedom of Information Act alive!

Liz Ryan, one of my favorite HR people (asklizryan.com), tells a story about a job hunter who keeps a list of the Top 10 Places She’d Never Work. Organizations expend precious time, attention and money to find good employees only to be on their DoNotJoin list. Bad employer stories travel far and have a direct impact on an organization’s talent pool.

How would your organization fare in reviews by past and present employees, or by those interviewing for positions?

UPFRONT AND PERSONAL

Recently I was asked, “What is the most important characteristic to look for in a Major Gift Officer?” I responded, “A People Person!” That is because the most significant thing a Major Gift Officer does is build relationships, relationships with donors, prospects, leaders, colleagues. It’s all about relationships. And, one fact is as true in major gifts fundraising as it is in sales -- Face-to-face personal contact is seven times more effective than simply calling. There is no better way to get face-to-face than with a planned visit. (If you need an outline, call me.)

Here is an idea: Personally giving your donors a memento demonstrates the level of gratitude you and your organization have for supporters. Everybody appreciates a heartfelt token of appreciation. What better excuse to see someone than the opportunity to deliver a gift in person.

It is amazing what you can discover when you track your numbers. (Future blog issue.) Keep a record of the notes, calls and visits you make with your donors and you’ll be able to clarify your priorities.

THE GREENHOUSE EFFECT

My garden is an ever-evolving landscape. The Columbine is on the wane as the Peonies come into their own. My New Dawn climbing rose is the star. In organizational horticulture, every employee can have a flowering season and certain employees may standout among the rest.

You can nurture and grow your own executive service corps. For every top position, not just the CEO, there should be a plan in place to identify and develop more than one person who has the potential to succeed in both meanings of the word. The key to success in employee development programs is to secure executive level support for the process. Senior staff should outline the abilities his or her successor must have by determining the knowledge, skills and behavior required to succeed. The CEO should discuss this with top staff twice a year, and ask for regular updates on how each candidate is progressing.

In modest-sized organizations, employees will most likely be more concerned about getting the work done than developing the management talent pool. Second tier staff, below the very top levels of the organization, can be seeded by creating development plans for each internal candidate, consistent with the organization's needs, as well as with those of the individual. Realistically, each candidate may be at a slightly different point of development at any given time.

Draw on the top staff members’ organizational knowledge and experience to mentor potential successors, expanding candidates understanding of key issues and providing them with exposure to characteristics of leadership and management. If the mentor pool is too small, turn to other organizations or leaders for mentoring relationships -- doing so could mean more available mentors with greater diversity.

Just as you fertilize and rotate your flower pots in a window, educational programs and job rotation can help individuals flourish, moving them along the path to new opportunities. Formalizing a leadership development program has added benefits -- returns may include helping mediocre performers, close skill and ability gaps of staff and revitalize midcareer executives.

Final thoughts: All employees need to grow. Plus, everyone has to worry about being run over by the lawn mower. If you don’t have the right people in-house to promote at the right time, with forethought you can be better prepared to bring in talent from the outside.

PASSING THE TORCH

With tongue in cheek, people say, “Be nice to your children. They will choose your nursing home.” Last year my parents moved into the North Shore Retirement Hotel. The hardest part may have been convincing my father to give up his car. I’m now participating in their finances, their medical decisions, their transportation and their social life – areas of my life they used to control! I’d love to give them a curfew, but they’re asleep before a “reasonable hour.” We’re transitioning.

One of my favorite organizations is in a quandary about finding a successor for their founding father. Succession is a touchy, yet crucial issue for any organization. CEO succession planning has largely been driven by the CEO. Having someone to step into an important vacancy is a critical juncture for organizations and today Boards of Directors are much more involved in what may be the most important decision of their tenure. They must determine whether the assets and aspirations of current staff match the future needs of the organization or whether they will have to look elsewhere.

A new leader may be right in the family. Succession savvy non-profits focus on developing talent, not just on replacing it, by involving those who are participants and candidates. Board members ought to insist upon meaningful interface with key staff members so they can get to know them better for future CEO succession-planning purposes. Board meetings are an opportune time for upper-level executives to make presentations on various aspects of organizational business. It helps to insure that top staff be invited to events held in conjunction with board meetings throughout the year because such interaction offers a distinctly different observation than presenting to a board meeting.

In Choose Tomorrow's Leaders Today, Robert Fulmer of Pepperdine’s Graziadio Graduate School of Business and Management says, “…effective succession management is a journey, not a destination.” Aging of Baby Boom leadership puts succession planning at the top of the agenda these days! Don’t let it catch your organization by surprise!

PRACTICE, PRACTICE, PRACTICE

How do I put this delicately? We have all had to deal with the "difficult" prospect or donor, the one we would like to use the “‘Delete” button for. However, we need to use experiences from negative situations to improve our responses to difficult people – or to head them off!

One example comes to mind: I accompanied the president of an organization on a major gift visit with a long time supporter. In the course of the conversation, this person voiced disapproval of one activity, position or policy of the organization after another. While I knew this was a significant opportunity to get feedback from an important supporter, it certainly set off some anxiety. Remember, we never argue with the donor; we restate objections. And, we always promise to share concerns. After the third or fourth complaint, I politely asked, “What do you like about this organization?” What followed was the most eloquent statement of support one could ask for; the donor sold himself and we left with a pledge of an increased gift.

It’s helpful if you don’t have to respond to such pivotal situations on the fly. These interactions might not feel comfortable at first, but build up your skill set. Practice dealing with negative interview circumstances with someone who'll give you honest feedback. Role play. Practice, practice, practice. In this way, you'll be ready to act with composure if you ever encounter another difficult prospective donor.

PLAY BALL!

There has to be a method to our madness in fundraising. Joe Niego, a presenter for Buffini & Company coaching, suggests visualizing lead optimization as a baseball field.

“In the dugout are your leads. And it’s your job to get them, first, into the dugout, then, out and up to bat, and finally all the way home with the close of a successful transaction. How do you do this? By playing what I call ‘small ball.’ It’s not about the homerun …those are few and far between. No, it’s a step-by-step process, one base at a time.”

As in baseball, you have to put in the effort, consistently working the lead. Qualifying each prospect you generate with a WealthEngine-like methodology sets you up for success because it enables you to allocate your time and energy wisely.

Make the most of a yearly development calendar so you can fundraise more proactively. Using a Moves Management philosophy, schedule fundraising activities (written materials, calls, visits) on a regular, even daily basis. Figure out your focus. If you’re an Annual Fund Manager, concentrate on upgrading support. If you are a Major Gifts Officer, spend the majority of your time cultivating your current top donors. Schedule as many face-to-face visits as possible with those who are truly committed to your mission, sequencing the “moves” to shepherd the donor relationship, for they will be your long-term major supporters and, ultimately, planned giving donors.

Make sure you have a system in place for logging and tracking. You should stay in touch and keep sorting and qualifying. Your database is alive and shifting. Send your written material! Make those calls! Set the appointments! Follow-up! Play ball!

FOUNDATION FUNDRAISING

A new poll of non-profit organizations asked: Do you expect the economic slowdown to affect corporate giving in 2008?

Yes 91%
No 7%
Not sure 2%

There are about 2,600 corporate foundations in America. Giving by corporate foundations increased 6.6 percent in 2007 to an estimated $4.4 billion. A recent survey of corporate foundations found that 54% expect their giving to increase in 2008.

A survey of 300 independent and community foundations found an average annual return on investments of 9.9 percent in fiscal year 2007, down from 13.7 percent in 2006. Commonfund Institute executive director John S. Griswold, noted that foundations participating in the survey reported that their average annual return objective was 8.5 percent. "Most foundation executives and trustees would likely be happy with consistent returns of 9.9 percent."

Are your fundraising programs diversified enough to weather a downturn in any one sector? Feel free to call me for an analysis: 847/227-7174.

Future Topic: Grant Application and Reporting Process. Share your views in advance.