So, you would like to be the new Development Director…

Recently I both enjoyed and took part in an extended discussion on the Chronicle of Philanthropy’s LinkedIn group. This discussion began by referencing the recent report by the research and consulting firm Compass Point titled ‘Under Developed’ that mentions 50% of senior fundraisers want to quit their jobs and further describes that organizational cultures which don’t value or understand philanthropy are to blame. This discussion was quite appropriately focused on the challenges in the development field and included more than a few common complaints, but with 50% of Chief Development Officers wanting out and 67% of CEO’s and executive directors transitioning each five years, effectively understanding the development professional’s perspective is a skill boards and CEO’s had better start practicing.

There was an apt image underlying many of the comments – the development officer as canary in the coal mine. From one point of view the canary points us to wider underlying conditions, giving members of the development profession the opportunity to step out of the victim role and de-personalize, but at the same time the real life canary in the unsafe coal mine first suffers and then dies!

The original post in the discussion put forward the sensible question, “OK we have all read the study now what do we do?” If you imagine yourself as an incoming/transitioning Chief Development Officer what do you need to see before you sign up? Let’s also think of the points below as points of negotiation and improvement for those Development Directors already mired in suboptimal situations. These suggestions assume that you are highly competent and knowledgeable in the field as described by Simone Joyaux in the discussion. Here is a very partial list.

1) Will I be a full member of the management team? If not this is probably the wrong place.

2) If the organization has a CFO or parallel role is the CEO clearly and actively supporting that she and I need to be sitting in the same room on a regular basis and working together based on our complementary roles? We are both engaged in capitalizing the organization. If not – red flag.

3) Will I be invited to every board meeting and presenting something at most meetings? If not this is probably the wrong place.

4) During the hiring process has the CEO offered out of herself, or responded positively and competently to my request, to specifically discuss her role in the development process, including real detail on how we will work jointly (how much time per week does she spend on fundraising, how often do she and I meet and how long are the meetings) to meet revenue goals? If not this is probably the wrong place.

5) To quote Tom Ahern from the LinkedIn discussion: “Will I have dictatorial control over donor communications?” (Again we are assuming you have the talent and experience to do this.) If not – where does the control lie – what specifically is my level of control and input. If the response is unsatisfactory or vague this is probably the wrong place.

6) Is the head of the board’s development committee and/or board chair part of my hiring process and have they provided me an opportunity to lay out what I consider the necessary conditions for successful development (as in the items above and more)in this organization? If not – serious red flag.

Welcome to the impact Consults blog. This blog will attempt to make the following contributions to individual readers and to the broader nonprofit sector:

Comment on current topics of relevance across the nonprofit and social enterprise sectors, particularly those impacting small and medium size organizations, bringing a perspective born of my own background and experience set.

Propose new perspectives and responses to these issues from the perspective of someone who has founded and supported start-ups, built and led nonprofits and is now advising, coaching and consulting.

A regular feature of this blog will be to briefly introduce key business concepts, more traditionally connected to the private sector, and discuss and propose their importance for nonprofit leaders at this time. I hope you will decide to share with colleagues Impact Consult blogs you find valuable.

The Most Important Thing?

What is “the most important thing” for a strong, sustainable, even transformative nonprofit organization, or more boldly – nonprofit sector? There isn’t one. In that way it is a lot like investing. Howard Marks, legendary co-founder and chairman of Oaktree Capital Management and University of Pennsylvania donor, wrote a wonderful book on his investing philosophy called The Most Important Thing. He begins with a few thoughts on investing that are highly applicable to the art of nonprofit leadership and governance.

“What, exactly, is “the most important thing”? As I meet with clients and prospects, I repeatedly hear myself say, ‘The most important thing is X.’ And then ten minutes later it’s, ‘The most important thing is Y.’ And then Z, and so on.”

His book discusses twenty most important things. He continues:

“The fundamental notion is unchanged: they’re all important. Successful investing (as in sustained above average returns) requires thoughtful attention to many separate aspects, all at the same time. Omit any one and the result is likely to be less than satisfactory…It’s not my goal to simplify the act of investing. In fact the thing I most want to make clear is just how complex it is. Those who try to simplify it do their audience a great disservice.”

Einstein had his own version of this thought: “Everything should be made as simple as possible, but not simpler.”

Is it harder to excel in the nonprofit sector? Is it harder to lead and manage effectively? Let’s not make it a contest but instead take a moment to reflect on why the sector exists at all.

1. There has been a wide spectrum of social and community functions over the course of the last century which government, business and increasingly the “natural fabric of community” are not sufficiently providing.
2. Why are government, business and the natural fabric of community not sufficiently providing? Because many of these functions or services are hard to make a profit at, others are just plain hard to do in a rapidly evolving society, and it is particularly hard for large governmental entities to meet nuanced local needs in a targeted and adaptive fashion.
3. Individuals have always and will continue to be inspired to meet needs (social entrepreneurs) which they see around them and to imagine a better, more creative, more alive, and more just social order. Good!

These three factors and others (lower pay, lower status in the heroic American myth, a time of contracting government resources, competition from the private sector) imply that nonprofit leaders, aspiring leaders, boards and funders need to resist the temptation to oversimplify. What makes a nonprofit great (impactful in a sustainable way) vs. hunkering down and just surviving? I maintain “the most important thing” is the ability to simultaneously generate and sustain excellence in a daunting variety of management, leadership and organizational tasks. In upcoming posts I will dig into these areas in more depth and in relationship to ongoing events, trends and challenges important to nonprofit leaders, aspiring leaders, board members and funders. Next post: Shifts Happen – Leadership Transitions