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BIG IDEA: The Master Prospect List (MPL)

The Master Prospect List is one of the biggest ideas in our sales process. It’s a system of:

  • Rating and ranking,
  • Your best and most Qualified Prospects,
  • In descending order of importance.

PRIORITIZATION is the centerpiece of our prospect system: the MPL is not a random group of names nor an alphabetical list!

The MPL ranks ALL of your prospects, not just ‘individuals’.

Rarely, do we see an organization with a TRUE Master Prospect List. This can be a tough concept for some to implement so we’ve made it simple:

  • MASTER = ONE LIST. Not ‘one list for the gala’ and ‘one list for annual fund’ and ‘one list for corporate partnerships.’ And, certainly not fifteen reports from Razor’s Edge.
  • Most Important Prospects. If you receive half your funding from the government then the government is ALWAYS your most important prospect.
  • RANKED. Not Alphabetical. Not by giving history. Not by Relationship Manager. RANKED BY IMPORTANCE.
  • Re: Individuals, Corporations, Foundations – a gift received yesterday does not remove the ranking of the relationship.
  • Smaller organizations should focus on their top 33 prospects. Larger organizations (e.g. Colleges) should maintain the same focus but take the ranking out to 100+ prospects.

In addition, The Master Prospect List:

  • Streamlines prospecting meetings and reporting and allows you to focus your time and energy.
  • Determines what to ask for by matching your prospect list to your funding plan.
  • Saves a lot of time in meetings, thinking, planning, strategy, etc. because the list IS the framework for all these things.
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97/3: Focus on the Top

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Finalize your MASTER PROSPECT LIST.

97% of all your INCOME (SALES/REVENUE) will come from

3% of your PROSPECTS (Portfolio/Community/Family).

This is a fact. Don’t fight it. Deal with it.

97/3 just reinforces the need to find your BEST and most QUALIFIED prospects!

The whole ‘80/20’, Pareto the Italian Economist thing is soooooo 1980. (Actually, it was in the 18-somethings.)

A quick parable/metaphor to reinforce this concept.

Lions, Mice, and Antelope.
A lion can hunt, capture, kill, and eat a field mouse. But the ENERGY expended is greater than the caloric content of the mouse. If a lion spent her whole day hunting and eating field mice, she would slowly starve to death!

A lion cannot live on mice. Lions need antelope. Antelope are BIG. Antelope take more planning, persistence, speed, and strength to capture and kill. But, once killed, they provide a huge feast for a lion and her pride.

A lion can live a long and happy life on a diet of antelope. She will die ‘chasing mice.’

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The Presentation Framework

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

The are three key components to a great presentation: Engagement, Discovery and Authenticity.

1. ENGAGEMENT

Our goal on the visit is to get people ENGAGED – in a dialogue – about them, about you, and about the opportunity you both have to save, change, and impact lives.

2. DISCOVERY

Asking questions is the best way to do DISCOVERY. It is the best way to create ENGAGEMENT and an absolutely marvelous way to be able to PRESENT THE OPPORTUNITY!

Here are 3 quick tips on how to be a great listener:

  • Focus. Actually sit up, and engage with your eyes and ears as you focus on exactly what the prospect is saying.
  • Get people to tell their story. This is even better than you sharing the story about impact. Let them tell you why they find meaning in your impact or organization. Nothing you say can trump their ‘WHY.’
  • Take notes. In my mind, this is a great way to show respect, show that you’re listening, and show that you care. The best thing about notes for me is that it helps me focus on listening, and then when the prospect is finished I can refer back to the notes and quotes.

    *It’s also a great way to capture as much of the visit as you can for the Memo for the Record, which, of course, you are going to complete as soon after the call as possible.

For even more, read the article 8 More Steps to Positive Listening Skills!

Then… ASK… LISTEN… ASK… LISTEN.


3. AUTHENTICITY

We like to tell our Boot Camp attendees, “If you’re authentic, you can’t screw it (the visit, the conversation, the ask) up!”

AUTHENTICITY means being REAL. HONEST. CANDID. SINCERE!

The people you’re with know right away whether you’re ‘selling snake oil’ or SINCERELY PRESENTING AN OPPORTUNITY that has VALUE to both the GIVER and the RECEIVER!

I read 30 years ago (in Denis Waitley’s Seeds of Greatness) that the word SINCERE means “without wax” (in Latin, sine = without, cera = wax.) Ancient sculptors would ‘fix’ any flaws or mistakes that they made in the marble by filling in the mistake with wax.

You can only be you. So go without the wax!

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On Altitude: For Visits and Presentations

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

Here is a deeper explanation of the power of ALTITUDE in designing a presentation or on a visit:

  • Get ‘buy-in’ at the highest level. As you make the Case for Support, the prospect or potential investor needs to understand and acknowledge their acceptance of the VISION and PRIORITIES. Sometimes this is a “You had me at hello” moment. Other times, it may take the entire first visit to get them to understand and agree that this is an important CAUSE and CASE. Regardless, it doesn’t make any sense to talk about PRIORITIES or the PLAN or HOW THEY CAN HELP if they don’t ‘get it’ at the highest level!
  • No Dissent on Descent. There should be no ‘dissent’ on the descent! Think of this as the opposite of getting the ‘bends’. If a diver ascends too quickly, they get a case of the bends. It’s painful and many times life-threatening. During a presentation, the prospect can get the ‘reverse-bends’ if you descend too rapidly, “Hello. Thanks for seeing me. Here’s our campaign. Can you give $100,000?”
  • Always go (back) up. When in doubt ALWAYS GO BACK UP TO 30,000’! The Vision, The Message, The Purpose.
  • ‘Permission to Proceed.’ We have actually incorporated this specific terminology into every presentation. “It seems like you’re fully engaged with both our Mission and our Message. Would it be okay (permission to proceed) to go deeper and talk about our Strategic Priorities and our Plan to make all this happen?”
  • Altitude is not always top-down or hierarchical. You can ‘enter’ at any level. You can focus on any level. You can travel up and down and even side to side when you’re using an Engagement Tool.

 

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The Power of Engagement Tools

Part of our For Impact story has been the invention of THE ENGAGEMENT TOOL. This one-page presentation flow, at altitude, has become an absolutely indispensable part of our client and coaching success.

THE WHY

IF you’re out making VISITS and PRESENTING THE OPPORTUNITY (which all of you
should be) – you need a SIMPLE, POWERFUL, ENGAGING PRESENTATION TOOL!!!

I can almost guarantee you don’t have one now because an Engagement Tool is not a PowerPoint, Campaign Brochure, 3-Ring Binder, or stuff from “National’s Marketing Department.”

An Engagement Tool is used to Present the Opportunity ‘shoulder-to-shoulder’.

As Tim Allen of Tool Time fame says, “The RIGHT TOOL for the RIGHT JOB.”

GREAT PRESENTATION TOOLS can:

Create a terrific FRAMEWORK for the FLOW of the VISIT,

GRAB PEOPLE’S ATTENTION,

FACILITATE important DIALOGUE,

Create ENGAGEMENT and INTERACTION,

COMMUNICATE STATS & STORIES, LOGIC & MAGIC, and much more!

THE WHAT

We organize our PRESENTATION TOOLS around “these 3 things”:

A NAPKIN

A FLOW SHEET

An ALTITUDE MAP

You can download an EXAMPLE of each one of these here.

THE HOW

Download / view the For Impact engagement tool.

See also: Guidebook – On Engagement | Guidebook – On Visual Engagement

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“Bankers Don’t Have Any Imagination, None At All”

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL.

In September of 1953, Walt Disney was sending his brother Roy to meet with bankers in New York. Roy was going to be seeking financing for a new concept: Disneyland. At the time, Disney had cartoons but no theme parks, which is hard to imagine in the present day.

As the story is told, Walt called in an imagineer named Herb Ryman and said, “You know bankers don’t have any imagination, none at all. You have to show them what you’re going to do.” He then asked Herb to help him create a mock-up of Disneyland on a large storyboard. It was a splendid painting that even included black light paint so that you could see what Disneyland would look like at night.

This story comes from Walt Disney Imagineering: A Behind-the-Dreams Look at Making the Magic Real. The book includes pictures of the storyboard.

 

 

Part of our For Impact story has been the invention of THE ENGAGEMENT TOOL. This one-page presentation flow, at altitude, has become an absolutely indispensable part of our client and coaching success.

Always look for ways to SHOW what you’re going to do. Use Engagement Tools. Banker or not, there is a big difference between talking your way through something and showing your way through something. A Engagement Tool worked for Walt and Roy Disney and it will work for you.

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What is an Engagement Tool?

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Create a simple, powerful PRESENTATION and ENGAGEMENT TOOL. 

Most organizations and sales teams don’t have ENGAGEMENT tools. They have brochures, binders, or pitch decks. What are you using to DRIVE engagement on a visit?

Is is simple? Visual? Does it SUPPORT the conversation or constrict the conversation?

In a later video we will show you ways to use an engagement tool.

Download / view the For Impact engagement tool.
See also: Guidebook – On Engagement | Guidebook – On Visual Engagement

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R.O.I.

RETURN-ON-INVESTMENT.

What every ‘Investor’ wants from their investment and what every For Impact organization should want from its development/advancement/fundraising effort.

I feel this concept is completely absent or totally misunderstood from our sector – Something I want to help change.

With all due respect to the industry, I just don’t get it. An organization invests money and resources in their development/fundraising operation – could be a one-person shop or 50 people in the college advancement division. I’m not sure how else you would measure productivity or success without making ROI the #1 barometer.

ROI is very simple to calculate. It’s a numerator/denominator math problem:

  • Here’s how much money we Raised (the numerator).
  • Here’s how much money we spent/Total Expenses (denominator).
R – TE = NET, NET, NET CHECK/FUNDS to support IMPACT!

In the For Impact approach, the development function ‘write checks’ to the IMPACT.

R ÷ TE = ROI and COST OF FUNDRAISING.

For example, if you are a hospital foundation raising $2M a year in ‘fundraising Revenue and your total expenses are $1M then your ROI is 2X or 100%; and your cost of fundraising is 50%.

There are two ways to increase your ROI and decrease your cost of fundraising:

  • Increase the Numerator (Revenue)
  • Decrease the Denominator (Expenses)

In our For Impact world, our own benchmarks are as follows:

  • 3X is minimum model/benchmark.
  • 4X is great.
  • 5X is something you should be very proud of.

If you’re running a Campaign within an existing development operation or as a separate initiative, I believe the cost of fundraising should be a nickel (five cents on the dollar.) That would give you a 20X ROI.

If you are a For Impact leader, senior staff, executive director or a board member, I hope the above gives you some sense of comparison.

Note: One last example of why ROI is a completely different level of thinking than simply “This is how much money we raised this year.”

I can guarantee a small not-for-profit organization an additional $100,000 this year. Hire two ‘major gifts officers’ at $50,000 apiece. Send them to For Impact Boot Camp. I guarantee that they can go out and raise $100,000 in the next year (combined.)

Same thing would be true with a larger organization at $1M. Hire five major gift officers at $200,000 each. I’m fairly confident if they followed any sales process they would each be able to raise $200,000 in the next year for a total of $1M.

Ok, I think you get the point.

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Everything’s a Math Problem

Looking back, I know that almost every successful campaign that we have run in the last 33+ years (500+ Campaigns) was successful because we:

  • Kept in SIMPLE.
  • Had Clear Goals, Numbers and ‘Math.’
  • Measured our Progress, Daily!

For example:

  • How much MONEY (Income) do we need? And over what period of time?
  • How many QUALIFIED PROSPECTS do we need to generate?
  • What does our FUNDING PYRAMID (Gift Chart, 97/3) look like?
  • How many COMMITMENTS do we need to make this happen?
  • How many VISITS do we need to make in a week? A month?
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Your Funding Plan Supports Your Case

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is DO THE MATH.

A big epiphany for organizations we work with continues to be – your funding plan actually is part of your case for support.

To me, the funding plan is the HOW behind the big picture dollar goal and the big picture dollar goal is what you need to deliver on your vision. So, in essence, this is HOW you will deliver on your vision. Is that important? You bet!

I’ve found that most organizations don’t have a funding plan – They haven’t done the math.

Three simple action steps to get you there:

  • Determine the dollar amount you need for both operations and projects. What is the lump sum? 80% of organizations can’t answer this question.
  • How many investments would you need and at what amounts to achieve this goal?
  • When? (One year? Three years? Five years?)

The funding plan does a few things as it relates to your case:

  • It makes it believable and achievable.
  • It shows a potential investor how she/he would fit into the funding vision.
  • It also illustrates that you’re not just picking a number out of the air – there is logic – Which gives you and your investors confidence.

Extra bonus: There are times when you can actually ask the potential investor, “Where do you see yourself in this plan?” Then, you let them select a dollar level – Something we call “The Clueless Close.”

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Do the Math to Simplify Your Funding Story

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is DO THE MATH.

Doing the Math means owning and internalizing an understanding of your numbers. Your numbers tell an important part of your story.

Doing the Math also means taking the time to simplify the numbers in a way that others – Your board, your prospects and your staff – can understand.

In our For Impact World you must:

DO THE ‘BLUE‘ MATH around your Cause and Case and Impact. i.e. How many people/families/students/patients/kids do you impact? Or how many people/families/students/patients/kids NEED this impact?

DO THE ‘RED’ MATH around your Staff, People and Operations.
i.e., What are the people or operational costs associated with delivering your current or desired impact?

And DO THE ‘GREEN’ MATH around your Income, Funding Plan, Goals, etc.
i.e, What is your total need for the year or next 1,000 days based on the BLUE and RED and how will you get there?

Note: Here is a list of questions you can ask your CFO or CEO to get the information you need for math.

Next, use this Math to frame your Funding Rationales. Funding Rationales help to answer your Prospect’s question, “What do you need from me?” and help you get ‘numbers on the table’ tied to a Person, a Program, a Project or a Funding Plan. For example:

A unit of Impact.

One of the simplest ways to do your math is around a Unit of Impact – A Person, A Student, A Family, A Village, A Patient – You get the idea. Quick math:

You can use this math to ask a prospect, “Can you help us by underwriting 10 students this year?” or “How many students would you like to underwrite this year?”

Your Gap, or even better, the cost of EXTRAORDINARY Impact.

Gap math is a common way to do your math and simplify a funding rationale.

 

 

I recently worked with a fantastic Hospice organization who refuses to talk about the gap and instead asks prospects to fund Extraordinary Care for every family. This Hospice has (fluctuating) revenues from reimbursements, but they don’t cover everything. This is where philanthropy comes in – For $1000 you can underwrite Extraordinary Care for one of the 3000 families they serve each year.

The true cost of programs.

This is a big one. Organizations frequently underestimate the true cost to deliver a program, which is essential to a funding rationale. Knowing the real numbers boosts confidence in the ask and helps the funder buy in. You can ask someone to underwrite part or all of the program.

Along with the previous point, you can do the math to tie programming costs to impact in multiple ways. Here’s a clean and simple example to illustrate the concept using the example above. The Read Aloud Program impacts 1600 Kindergarteners and their families (80 classrooms/20 students per class at 40 schools.) You can do the math to create simple funding rationales:

$80,000 to underwrite the program for one year, or;
$2,000 per school, or;
$1,000 per class, or;
$50 per student.

Funding a Project or Priority.

This is commonly used with a ‘campaign mindset’ – projects or priorities that have a larger funding goal than some of the examples above. Casting a vision, packaging up three year Priorities or Projects and then understanding a dollar amount/funding rationale for each.

For example, “As we discussed, our vision is to be there for every family who needs Hospice Care in this community. Part of achieving that plan is to secure a Hospice House where we can care for people who can no longer stay at home, or have no home. Can we talk to you about being part of this plan?”

or

“We’ve put together a plan to scale and innovate in our three core areas – Family Literacy, Read Aloud Programs and Teen Services – that would require $1.3M of the next 1,000 days. Here’s what we would use the funds for – 1000 Families in Literacy Program, increase 1:1 teen Mentoring by 30%, excellent data and evaluation, 5-10 new school relationships…”

(more…)

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The iPhone: A Case for Oversimplifying

When Apple launched the first generation iPhone in 2007 it shared a device that offered full-email, rich media, a web browser, and a phone.

Think about what they chose to call this: a phone (that does really cool stuff!)

Often times working with organizations to simplify – there is a fear that the final concept omits ANYTHING. In one of these standard group setting the original iPhone device would’ve been named the iWebMediaMailPhone!

When explaining WHAT you do, choose words people understand. Anchor the concept and THEN tell me how you’re different, cool, etc. When someone says you’re oversimplifying just point to the late genius Steve Jobs.

P.S. I downloaded the new episode of Sherlock last night. I don’t know if I would call that a TV show, or a movie, but I purchased it through iTUNES. Not the iMediaEverythingCloudStore.

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