Evaluating Your Fundraising Talent? Here are a couple of quick tools to use

A large component of talent management revolves around it’s most basic question: who do we have? Answering this can be more difficult than we think. A full review of who you have on the team requires leadership attention and a commitment to follow up. In development, where we have many levels of leadership, roles and responsibilities, it can be especially easy to focus on one level of the team, while ignoring rising stars and performers elsewhere. Luckily we can borrow some tools from the business world in performance management. The first of which is the well-known 9-box, which is a tool for mapping out team members based on performance and potential.

9 box

An alternative method for categorizing performers can be completed through focusing strategically on current performance and answering key questions relation to the attrition risk and next steps of each team member in a category. A sample visualization of this process can be found below:

rating performers

The visual above can further be applied specifically to development, refining the definitions of the behaviors that merit a ranking of 5 versus 4 versus 3, etc. In my work I have spent quite a deal of time building out a full 1-5 competency matrix for frontline fundraisers, breaking out key competency areas and levels of performance against which managers can evaluate development officers. It has been incredibly interesting and challenging, but the increased clarity pays off as medium and rising performers now more clearly can see what they have to do differently. An excerpt of the model (which has five major competency areas, with 4-5 sub categories each) is below:

compentency excerpt

Two Sides of the Same Coin – Fundraising Talent Management Challenges

This blog has covered both challenges in talent management of fundraisers and of development operations team members. These audiences, while distinct in their challenges, can be thought of as two sides of the same coin.

As our the non-profit fundraising sector has evolved so has our demand for talent. We now are highly in need of two things in short supply: highly sophisticated frontline officers who can deliver big gifts and high tenure operations team members who can think and partner strategically.

Below is a table overview of the two categories.

talent management nutshell

What do you think? Have you seen other trends in the talent management of fundraisers or operations teams?

A Year for Innovation in the Management of Fundraisers

Talent management is a hot topic in the field of fundraising for a good reason; the data has repeatedly shown that non-profit success often lives or dies in the hands of a few high-performing fundraisers. 2015 will require non-profit leaders to face the talent crisis head on. The following anticipated trends for 2015 will drive the need to find, keep, and grow fundraising talent.

1. An Expanding Rise in Competition for Talent. Competition for talent isn’t going to get better in the near future. Development shops are increasing in size and in campaign goals. Similarly with the count of $1M+ gifts dropping dramatically while the number of $50M+ gifts continues to rise,(1) the need for experienced, sophisticated fundraisers has increased while the group of the most experienced major gift teams is heading into retirement.

Further, as charities abroad continue to grow in number and size, and as multiple universities seek nine and ten figure campaigns, the demand for development talent on and behind the frontline will rise dramatically.

There’s no real pipeline of talent to support this growth. As a consequence, fundraisers across the board of experience are being actively and frequently (10+ times a year) recruited from other institutions(2) only to stay for a couple of years before moving onward yet again. This disruptive pattern is even more disheartening when you take into account the 3.5- to 4-year ramp-up period for the return on investment in hiring a fundraiser.(3)

 

2. Hybridization and Re-imagination of Hard-to-Fill Roles. Facing the increasing competition for talent, especially seasoned fundraisers, many institutions are likely to find themselves with extended vacancies or rapid turnover. In the immediacy of needing to fulfill the duties assigned to these staffing gaps, we are likely to see an increase in creativity with the existing team member roles and responsibilities, including:

  • Management responsibility delegation away from the frontline to allow for more focus on major and principal gifts.
  • Reorganization and centralization of key resources across institutional systems to streamline prospect management.
  • New programs put in place for “warming” donors via phone and through prospect management staff to lessen the burden of discovery and qualification on major gift officers.
3. Experiments in Growing Your Own Talent. As institutions are forced to get more creative and strategic about talent, we will see a rise in programming and structures built around growing talent internally, especially by larger institutions. This will be marked by:

  • A dramatic increase and further development of a new class of professionals at large institutions: directors of talent management and training.
  • Centralization and creation of training programming and resources across complex systems of development shops, particularly in higher education (state systems) and healthcare (community hospital systems and networks).
  • An increase in expectations for talent management and employee engagement by middle managers in development.
  • New career ladders and pathways that target talent earlier and blur the lines between the “front” and “back” of development offices.

2015 will be a year for testing new pilot programs and strategies to better manage the time of the frontline talent an organization has and create a pathway for high potential individuals to grow. In all likelihood the most notable programs of the future will not be the institutions which grow to have the largest development staff sizes, but rather those organizations that best attract, develop, and optimize the talent they do have.

 

 

Originally published  as a BWF Client Advisory on January 22, 2015

1 – The Million Dollar List. Accessed December 8, 2014.

2 – 2014 BWF Survey of Frontline Fundraisers

3 – 2014 BWF DonorCast Talent Analytics

Copyright © 2015 Bentz Whaley Flessner & Associates, Inc.

Something Worth Reading: “3 Ways to Engage Employees Without Spending a Dime”

Piggy Bank 6For many advancement programs, the most meagerly funded budget lines—and usually the first spending category to be cut when budgets get tight—are professional development and employee engagement activities for members of its team. Regular readers of this blog will probably agree that such miserly investment in staff development is short-sighted and misguided, and it is likely to have negative consequences for fundraising results that will be far more costly in the long run than whatever benefits the short-term savings might yield.

While we have made multiple arguments in favor of increased and sustained investments in professional development—including the importance of practice and repetition, for enhancing performance, and as a retention strategy—for many organizations, skimpy budget allocations will remain a fact of life for the foreseeable future. So what can an enlightened fundraising leader do in the meantime to improve performance, enhance morale, and increase employee tenure without a budget to do it?

Jennifer McClure of the TalentAdvisor at CareerBuilder’s HiringSite blog just published an article that presents three valuable reminders for managers of fundraisers or any other team of employees. You can read the full article at “3 Ways to Engage Employees Without Spending a Dime,” but here are McClure’s three recommendations in a nutshell:

1.  Connect Employees’ Work to a Higher Purpose. “To capture the hearts and minds of your employees, you must hope them understand how their specific job affects your end product or service – and how their work matters.”

2.  Enable Progress by Removing Obstacles. “The most common event triggering a “best day” at work response? Any progress made by the individual or by their team. Even a small step forward counted. The most common event triggering a ‘worst day’ response? A setback.”

3.  Celebrate Successes—Big and Small. “A simple ‘thank you,’ high-five or personal note can go a long way to increasing employees’ emotional commitment. In fact, according to Towers Watson, recognition from supervisors and managers can ‘turbocharge’ employee engagement for better workplace productivity and performance.”

The experiences of our team at Bentz Whaley Flessner, as well as research among front-line fundraisers conducted on behalf of our TalentED practice, confirm the wisdom of McClure’s advice.

Each of McClure’s suggestions is solid and cost-neutral. But that does not mean they are simple and easy to implement; on the contrary, here suggestions each require commitment, focus, thoughtfulness and persistence.  But not only are these three strategies powerful and effective, they make sense for all fundraising programs—whether those programs have an ample professional development budget or not.

Create a Superstar Fundraiser in 2015

Originally published December 10, 2014

If there’s one theme to emerge from the conferences, research topics, and discussions of 2014 across the world of development it’s this: it’s very hard to find and keep talent. Demand exceeds supply, and competition for a shallow talent pool is only going to increase if trends continue. Development programs must start to look inward to create and build their own talent pipeline.

This process should involve looking at your staff, enhancing culture, growing team strengths, and setting priorities.

Ultimately, however, outcomes along the front line will be made by a handful of exceptional fundraisers. Elevating even one more individual to that tier of performance can dramatically impact your overall results.

Below is a brief overview of a process that development leaders can follow over the next 12 months to transform a high-potential individual into a high-performing fundraising star.

Find the Right Footing and Foundation
There is a core set of knowledge and expertise fundraisers must have to be successful. Make sure your team members have a firm foundation in the science and art of fundraising. Evaluate and create a plan to deepen their knowledge and grasp of critical areas, including:

  • Major donor types and motivations.
  • Giving vehicles and types of giving.
  • Institutional culture and priorities.
  • Portfolio management and optimization.
  • Strategic solicitation, and matching big ideas with high-capacity prospects.
  • Trends and new tools in development.

Get Moving
Part of what sets star fundraisers apart from their peers is the ability to manage time effectively and maximize their time out of the office meeting with donors and prospects. Focusing on growing an individual’s performance should include immediate, intermediary, and long-term action items. That way he or she can have clear avenues to put theory into practice in all steps of the process. Integrating all learning, mentorship, and self-development into existing responsibilities and activities will solidify knowledge and deepen understanding more readily.

Look for the Heart of a Star
When talking about growing your own superstars, focus on finding individuals who have the right qualities and potential to become your future highest performers. Look for individuals who:

  • Seek out challenges and new opportunities beyond assigned top prospects and goals.
  • Can speak and connect with people of all backgrounds and personality types.
  • Are inspired by your organization but have room for growth.

Perfect Technique and Strengthen the Right Muscles
The best athletes, musicians, physicians, and executives all have one thing in common: they practice a lot. More often than not that practice includes focused coaching and mentorship. Fundraisers, likewise, become more effective the more targeted practice they are able to have. Build a performance plan that not only increases classroom learning and expectations but allows for practice, shadowing, mentorship, and coaching by existing stars on your team and experts in the field so that your professionals can try new techniques and receive guidance on how to refine and hone their own personal approach with donors.

Guaranteeing a feedback loop during this process requires that managers and directors must be actively engaged and protective of time for the skill and strategy growth of the individual.

Foster Leadership and Collaboration
The biggest gifts require collaboration and multiple contact points, and often our top performers are expected to be team leaders as well. However, content areas for skill building often leave out collaborative strategies and good leadership and management. Similarly, we often wait too long to give individuals leadership opportunities. Leadership should be developed well before a promotion.

Part of what makes a fundraising star is his or her ability to lead internally as well as produce externally. In order to transform individuals you must make sure that they are given opportunities and tools for leadership. Find or let your team members identify new projects or initiatives in need of an owner. Include leadership skills and management in your expectations and performance evaluations of your team. For individuals to become leaders, they must understand their own management style and approach with peers, direct reports, and contacts across an institution and be able to translate that into success in actual programs and projects.

Focus on the Future
Developing the skills and improving the outcomes of performers is only as effective as your ability to retain them. Any program, formal or informal, that you develop must account for and incorporate the personal and professional goals of the team members involved. A curriculum for 2015 should, therefore, be focused on improving and multiplying fundraising results for the next 12–24 months AND act as a stepping stone for your fundraisers’ own ambitions for the next 5–10 years. Taking the steps described above helps communicate to your performers that you value them and their growth. Don’t shortchange your results by neglecting to communicate that you have a plan and place for them as they grow.

There will be valuable members of your team who may not be ready for the next step. That’s okay. As you work to grow your fundraising stars, keep these folks in mind—team building and performance across the bell curve should be a parallel priority for talent development this year.

It’s not an easy task, but, as the saying goes, something worthwhile is rarely easy.

BWF’s TalentED practice partners with non-profit clients to create superstars through competency-based, one-on-one coaching by seasoned experts. Contact us at training@bwf.com to learn more about coaching, workshops, or our talent management services.

Copyright © 2014 Bentz Whaley Flessner & Associates, Inc.

MGOs: Why a New Job Should NOT Be on Your 2015 To-Do List

?????????????????????????????????????????????????????????????The rate of turnover among fundraisers remains high, and among no cohort of advancement professionals is this movement more pronounced than major gift officers (MGOs). Recent studies and surveys by CASE, AFP and others suggest the average tenure of a frontline fundraiser is now somewhere in the range of 2.4 to 3.5 years.

Whatever the actual tenure numbers may be, it’s obvious that a lot of major gift officers are on the move. And if you’re not already among them, it’s highly likely there will be attempts to convince you that you should be: A 2014 survey by our firm, Bentz Whaley Flessner (BWF), found that two-thirds of all frontline fundraisers with at least two years of major gift experience had received at least three recruiting contacts during the prior year, with a significant subset of that cohort receiving even more (see adjacent chart).

In other words, if you’re a major gift officer with even a smidgen of experience someone will try enticing you to move in 2015. My advice: Don’t do it.

Bar Chart 001My rationale for dissuading you from changing jobs boils down to the proverb, “good things come to those who wait.” Frontline fundraisers who truly want to achieve success and produce transformational outcomes must be prepared to make an up-front investment of time—in their institutions, in their donors, and in themselves. Frequent moves do not serve you well, for several reasons:

  • Practice, Practice, Practice. The skills for effective cultivation, solicitation, negotiation and closing are only acquired through practice. Major gift fundraising is an art, and to become good at it requires training, repetition and lots of hands-on experience. Malcolm Gladwell, in his book Outliers, suggests that proficiency in any complex task is only achieved after 10,000 hours of practice. If we accept Gladwell’s rule and apply it to fundraising, we can project that a first-time gift officer will require almost five years to become effective at their work: 10,000 hours ÷ (40 hours x 52 weeks) = 4.8 years.
  • Gladwell is Right. Additional research conducted by BWF on behalf of our clients confirms the validity of Gladwell’s proposition:  When measuring the year-to-year progression of major gift officers’ productivity, it MGO Productivity 001isn’t until their fourth year that fundraisers begin to generate significant output from their prospect portfolios. (See adjacent graph.) Once a gift officer turns that corner, their output continues to grow at substantial rates.
  • Relationship-Building Requires… Relationships. BWF’s finding that gift officers require ramp-up time before generating significant returns from their portfolio should not be surprising. Major gift fundraising is a relationship-based endeavor, and relationships cannot be built overnight. While the most important relationships are always between the donor and the organization, the connection between a donor and a fundraiser is crucial. Only through a series of conversations and contacts can a gift officer come to understand a donor’s interests, capacity, motivations and readiness. And moving through that process requires the donor to have a substantial level of comfort with and trust in the fundraiser who is their principal contact. Frequent changes in fundraisers interrupts and delays the process—or even terminate it if a new gift officer doesn’t quickly pick up the ball again.
  • Longevity Yields a Better Portfolio. Another reason it takes a few years for gift officers to begin tapping the capacity of their assigned prospects is that new fundraisers usually receive a “discovery” portfolio that will initially require numerous qualifying calls, many of which will result in prospects being dropped from consideration. Those dropped prospects will be replaced by others before this iterative process eventuallyBalancing Time And Dollar develops for each fundraiser a solid collection of genuine major gift donors. Our firm’s experience is that it takes gift officers 2-4 years to transition a discovery-oriented portfolio into one that is weighted toward bona fide donor prospects and will begin to produce significantly greater gift income. Those who leave a position prematurely don’t get to harvest the fruits of their labors.
  • Fundraisers are Measured by Funds Raised. Because the demand for good fundraisers outstrips the available supply, it is possible to move from job to job over a short period of time. It’s also possible for a newbie to get lucky with one or two big gifts early in their tenure, and parlay that into another job. But in the final analysis, effective fundraising is all about building relationships and closing big gifts. If you cannot one day point to a single multi-year tenure during which you showed progressive growth and demonstrated your ability to close multiple large gifts, you will have fallen short of your full potential:  You will have limited the philanthropic capacity of both the organizations you served and their donors, as well short-changed your own prospects for professional advancement and personal satisfaction.
  • Results Get Rewarded. We all want to be rewarded for our work, and we can sometimes convince ourselves that by leaving our current employer we’ll find better rewards elsewhere. Nonetheless, even in our present day culture of immediate gratification, rewards still have to be earned, and the process of earning them takes time. As I suggested earlier, unless gift officers allow themselves adequate time to fully explore their portfolios, develop relationships and produce results, those earned rewards won’t be forthcoming. Our firm’s experience is that truly productive fundraisers are highly prized, and institutions will act within reason to retain them. But a gift officer can’t expect such VIP treatment unless they’ve earned it, and they definitely cannot earn it during a short tenure.
  • Define Your Rewards and Go After Them. What are the rewards major gift officers want? Compensation, of course. But BWF’s 2014 survey of frontline fundraisers revealed that gift officers’ most desired rewards are actually not dollars but other less tangible items: A better prospect portfolio, professional development opportunities, information from and access to leadership, new challenges, and recognition. And you do have some control over these perquisites: Make a case to attend a workshop to Medalsdevelop a relevant new skill set. Suggest that you be involved in preparing a major solicitation. Ask to take on a new responsibility (that won’t interfere with your other duties).  And above all else, challenge yourself to become more strategic and engaged with your own best prospects–and thus produce more gift dollars.
  • Everyone Loves a Winner. If you allow yourself to learn, develop and grow as a major gift officer, then positive results should follow. It’s at that point–where you can show that you are knowledgeable and skilled; that you have developed a productive prospect portfolio; and that you have also demonstrated staying power at one or more organizations–that you can write your own ticket. Fundraisers with such a record are truly in short supply, and if you can show that you’re one of them, both your current and other organizations will covet your services.

It’s true that your success is not entirely your own responsibility nor completely under your control, so I also offer two caveats to my admonition to stay put:

  1. Your organization and supervisor also have obligations to position you to achieve and sustain success as a fundraiser: you need training, coaching, resources, support and opportunity. And not every organization is as supportive as it should be. But rather than fret about what’s missing, take charge of your own progress as much as you possibly can–which may include finding coaches and mentors outside your current organization.
  2. There are sometimes reasons to leave an organization before you are able to establish the long-term track record I have suggested, such as a truly unreasonable supervisor, a toxic work environment, lack of professional development or growth opportunities, or an otherwise an unstable organization. But take to heart the familiar maxim, “the devil you know may be better than the one you don’t.”

2015 dIf you are a major gift officer considering a job change in 2015, be sure that you first conduct an honest self-assessment of whether you have done all that you can to become the seasoned, knowledgeable, productive and stable fundraiser that will be prized by your current and/or prospective organizations. And if you choose to leap, be sure you’re not doing it impulsively and that you have full knowledge of where you’ll be landing.

Otherwise, stay put. Instead, challenge yourself this year: make the most of your prospect portfolio, enhance critical skills, and take other actions that will increase your value. Make 2015 a year in which you, your organization and your future career prospects will become better, stronger, more productive, and well positioned for future success.

And continue following our blog, too: In subsequent posts we’ll be sharing additional insights into specific things you can do this year to enhance your performance, work more effectively with colleagues and supervisors, and position yourself for long-term success.

A New Year’s Resolution List for Leaders to Consider Right Now