Build Simple

Zooming Out to Lead

Sir Alex Ferguson managed Manchester United for over 25 years, leading the club to 13 English Premier League Titles. 

In his book, Leading: Learning from Life and My Years at Manchester United, Sir Alex tells a story about his own tipping point as a leader.  

Prior to his post at Manchester United, he managed Aberdeen, a Scottish Football Club. He learned about the importance of ZOOMING OUT to lead. My emphasis in bold…

Watching is (an) underrated (leadership) activity…it costs nothing. For me there are two forms of observation: the first is on the detail and the second is on the big picture. Until I was managing Aberdeen and hired Archie Knox as my assistant manager, I had not appreciated the difference between watching for the tiny particulars while also trying to understand the broader landscape. Shortly after he arrived at Aberdeen, Archie sat me down and asked me why I had hired him. The question perplexed me, until he explained that he had nothing to do since I insisted on doing everything. He was very insistent… Archie told me that I shouldn’t be conducting the training sessions but, instead, should be on the sidelines watching and supervising. I wasn’t sure that I should follow this advice because I thought it would hamper my control of the sessions. But when I told Archie I wanted to mull over his advice, he was insistent. So, somewhat reluctantly, I bowed to his wishes and, though it took me a bit of time to understand you can see a lot more when you are not in the thick of things, it was the most important decision I ever made about the way I managed and led. When you are a step removed from the fray, you see things that come as surprises– and it is important to allow yourself to be surprised. If you are in the middle of a training session with a whistle in your mouth, your entire focus is on the ball. When I stepped back and watched from the sidelines, my field of view was widened and I could absorb the whole session, as well as pick up on players’ moods, energy and habits. This was one of the most valuable lessons of my career and I’m glad that I received it more than 30 years ago. Archie’s observation was the making of me.

As a player I had tried to do both– paying attention to the ball at my feet whilst being aware of what was happening elsewhere on the field. But until Archie gave me a finger wagging, I had not really understood that, as a manager, I was in danger of losing myself to the details. It only took me a handful of days to understand the merit of Archie’s point, and from that moment I was always in a position to be able to zoom in to see the detail and zoom out to see the whole picture.

Stepping back to watch from the sidelines is not natural (at least not to me!) This story has powerful leadership insights and implications for all of us.

Ferguson, Alex; Moritz, Michael (2015-10-06). Leading: Learning from Life and My Years at Manchester United (p. 18). Hachette Books. Kindle Edition.

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The Leadership Circle: Occam’s Ask

This is an excerpt from the forthcoming For Impact Guidebook about Leadership Circles.

Every organization should have some form of Leadership Circle. In its simplest form, this is ONE baseline-major-gift level of support, positioned as the cornerstone of your annual fund.   The Leadership Circle is not just another giving level – It’s a funding program and a strategic pillar of your funding model that qualifies prospects, simplifies stewardship, provides flexible funding and annuity!

You’ve heard of Occam’s Razor; this is ‘Occam’s Ask’. It’s set at ONE level between $1K and $10K – messaged around your mission and vision in a way that represents your simplest and strongest sell.

HOW TO MESSAGE: (Examples)

  • STORY: “We would like to invite you to be part of the Leadership Circle – a group of 100 families, individuals and/or businesses that are extremely committed to the mission of the YWCA. Membership requires a minimum $10,000 investment in the fund, renewable annually. Each year, these funds will be used to make the biggest impact in the areas of after school programming, innovation and scholarships. But, ultimately, The Leadership Circle is about investing in our vision to transform our community.”

  • COLLECTIVE IMPACT: “This Leadership Circle level is significant because the collective power of its members – providing the core funding support that allows the YWCA to be an efficient organization, responding to the most important needs of women and families in our community. Additionally, this Leadership Circle has the impact of $2M in endowment for each 10 members.”

In working with over 1,000 organizations, I can’t think of a time when an organization didn’t benefit from a Leadership Circle. As a tool, its versatility rivals duct tape.

A FEW WAYS TO USE THE LEADERSHIP CIRCLE:

  • As a QUALIFIER. The Leadership Circle can be a GREAT ASK on a first visit. The story around the Leadership Circle should be tied to your simplest and strongest sell and if someone commits the $10K then you KNOW they are serious about your impact.
  • As a component of your overall FUNDING MODEL and CASE.  It’s helpful for top funders to see that you’re building a base. This should offset the perception (and reality) that you’re going back to the well with the same funders again and again. It’s really helpful to be able to show (in your plan) that at the same time you are asking for LEADERSHIP SUPPORT, you are also building giving-based-relationships through the Leadership Circle.
  • As a MOMENTUM BUILDER.  If you’re working on leadership support for a major project the Leadership Circle can be a powerful momentum builder. It’s one thing to go to your board and announce you THINK you will have some leaders on board. It’s another to back that up with the cash flow and commitments from 20 new memberships in your Leadership Circle.
  • As an ANNUITY and ENDOWMENT EQUIVALENT.  The membership base of support becomes an annuity. For example, 20 families at $10K is $200K per year which is the equivalent of having $4M in endowment!
  • As a FOCUSED way to TEST and BUILD TALENT. Having a Leadership Circle offers a safety valve for new salespeople. “When you don’t know what else to do, ask for a membership.” This is a clarifying directive. Asking for a membership does not eliminate the potential for a larger gift – if anything it qualifies the relationship (offering objective insight to the sales manager.)

    If a new major gifts officer fails to close a $1M gift it could be for a number of reasons. Maybe it’s a prospecting issue. Maybe it’s the story. However, anyone should be able to close Leadership Circle membership.

    Having developed dozens and dozens of new major gifts officers, I cannot emphasize the importance of this idea. It’s the simplest way to build confidence and funding momentum.
  • As an engagement strategy that PAYS. ‘Nuff said.
  • As a STEWARDSHIP CIRCLE. Get rid of all events and focus that energy on just providing stewardship and thanks to your Leadership Circle investors!  Here is an idea, make it someone’s job to simply get every member of the Leadership Circle to your organization to SEE the impact (return-on-investment) in a given year.  Good things will happen.
  • As ‘BUDGET RELIEF.’ Everyone wants ‘unrestricted funding’. A better message would be around budget relief. I would encourage you to try and create a funding model in which the Leadership Circle monies are unbudgeted. You can then report back to membership the IMPACT of their COLLECTIVE investment.
  • As a way to get into a PLANNED GIFT. Participation in the Leadership Circle for a few years offers a rationale to get ask for a planned gift to PROTECT the annual gift.  “You’ve been giving $10K every year as a member of the Leadership Circle. Could we ask you to PROTECT that with a gift from your estate?”  A $200K planned gift would ‘protect’ the $10K.

    Bonus: This can also be part of a TRIPLE ASK.
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“Bankers Don’t Have Any Imagination, None At All”

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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The Entrepreneur’s Mantra: Think Big, Build Simple, Act Now

For Impact is a team of entrepreneurs. I sold my first company at the age of 20. Tom, a serial entrepreneur, has founded 19 different companies. Just about everyone else has experience in starting or building companies and scaling ideas.

What brings our team together is this experience plus a common passion to use this DNA for Impact. (And, there we have a nice little reference to our raison d’être.) Extracting this DNA — then putting it into words — it reads:

 

This mantra is so important to us, that we’ve also made it one of our 9 Guiding Principles.

THINK BIG.

  • Think Big with your VISION. How are you changing the world or your world?
  • Think Big with your ASKS. You can’t get $1M if you can’t communicate what you would do with $1M!
  • Think at a higher level. Get up out of the weeds and see the problem, opportunity, team and solution at 30,000’!

BUILD SIMPLE.

  • Get your MESSAGE on a napkin!
  • Simplify what you do using the Rule of 3.
  • Focus on 10 prospects who could TRANSFORM your funding … and TRANSFORM your organization.
  • ONLY do that which is productive in your funding plan (Stop doing special events that aren’t special and that don’t raise money.)

ACT NOW.

  • Stamp DRAFT on everything and go visit!
  • No committees. “Engage, then plan!”
  • Just Visit. Just ASK. Ten steps forward and two steps back is still eight steps forward.

Tom brings a more powerful voice to the ENTREPRENEURIAL SPIRIT. Not only has he done the 19 companies, but he’s traveled the world visiting with and mentoring social entrepreneurs. Here is a one-pager on TB/BS/AN from Tom.

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