We’re big on the need to have one Master Prospect List! A great MPL rates and ranks your entire pool of Qualified Prospects/Relationships in descending order or importance. However, deciding who you’re going to see first is very different from simply starting at the top of your Master Prospect List and working your way down.
Instead, begin like Archimedes on his best day by trying to LEVERAGE your commitments – building on each visit and commitment as you move along.
Here’s a great way to think about ordering your visits: ‘MO-COs,’ ‘LEAD-COs’ and ‘CO-COs’.
MO-COs are MOMENTUM COMMITMENTS.
These commitments are not necessarily about magnitude or size but rather ‘COMMENSURATE’… ‘SURPRISE’… ‘STRETCH’ gifts. These are the ‘EARLY ADOPTERS’ who get it, buy in, and provide the MOMENTUM to get going. In Good To Great, Jim Collins’ would call these ‘FLYWHEEL’ commitments. In order to get a FLYWHEEL moving at the beginning, it takes a lot of energy. But once there is some MOMENTUM… the wheel flies!
LEAD-CO’s are LEADERSHIP COMMITMENTS.
LEADERSHIP can literally TRANSFORM the organization, the campaign or the project. These are ‘Top of the Pyramid’ lead gifts that prove that our best prospects and investors have stepped up and give everyone the confidence needed to make the campaign or project happen.
“LEADERS LEAD.” – Bob Werner
Thanks to my friend Bob, a big time Mensch and Jewish philanthropic superstar, for the quote. I believe that success (or failure) is a direct result of LEADERS LEADING. If no one steps up as the INTERNAL leader, a campaign is doomed from the get go. If you can’t find at least one EXTERNAL leader or CHAMPION, it ain’t gonna happen either. (My preference is 3 CHAMPIONS.)
If leaders are not ENGAGED and PASSIONATE, then it becomes ‘The Suddes Group Campaign’ or ‘The Executive Director’s Campaign’, etc. Tom Mucks, another successful former Suddes Group partner, says, simply: “Passion and commitment from LEADERSHIP will overcome all obstacles.”
CO-CO’S are CONNECTOR COMMITMENTS.
Going after some of your most important ‘CONNECTORS’ early on is a terrific strategy to not only get their financial commitment (which may or may not be significant) but also to generate REFERRALS and STRATEGY on getting visits with your best prospects.
SPECIAL NOTE ON REFERRALS AND 3º OF SEPARATION:
Remember you are only 3º away from any QUALIFIED PROSPECT!! (Forget Kevin Bacon and his 6º – It’s actually been determined that it’s 2.78 ‘moves’/connections between Bacon and all other actors.) CONNECTORS and other NATURAL PARTNERS allow you to be one or two CONTACTS away from your best prospects. This is very, very important! Realizing you are only 3º away from ANYBODY who is a QUALIFIED PROSPECT lets you use your NATURAL PARTNERS (Champions, Board Members, Key Volunteer Leaders, Current Investors) to get you there.
Extra Special Note: I am only 3º away from the Pope, the President and the Prime Minister of Israel. And, I’m only 2º away from the Dalai Lama! How? Because of my CONNECTIONS and RELATIONSHIPS, I can get to ‘someone’ who can get to ‘someone’ who can get to the Pope, the President and the Prime Minister.
Teleseminars are a way for us to offer valuable training to our For Impact Community – in a short, ‘call in from anywhere’ format. Join us this Tuesday and Wednesday for two of our most popular topics:
The story you use to maximize funding…
The story that brings rockstar talent to your doorstep and fully engages your team…
The story that you tell yourself every day to stay focused and fulfilled.
Story adds passion, purpose and urgency to your message, plan and every day actions.
Is your story about needing more money? Or changing lives?
Do you have a good story that helps get to the ask?
Do we have a story that engages the board? Engaging them as passionate champions and advocates?
This 45 minute teleseminar will:
Share examples of stories used at organizations to help them with these questions.
Address common challenges to funding, action and engagement.
Give you several actionable tools use can use to DISCOVER your story and make it AWESOME.
“Two professors who study the science of complexity—Brenda Zimmerman of York University and Sholom Glouberman of the University of Toronto—have proposed a distinction among three different kinds of problems in the world: the simple, the complicated, and the complex. Simple problems, they note, are ones like baking a cake from a mix. There is a recipe. Sometimes there are a few basic techniques to learn. But once these are mastered, following the recipe brings a high likelihood of success. Complicated problems are ones like sending a rocket to the moon. They can sometimes be broken down into a series of simple problems. But there is no straightforward recipe. Success frequently requires multiple people, often multiple teams, and specialized expertise. Unanticipated difficulties are frequent. Timing and coordination become serious concerns. Complex problems are ones like raising a child. Once you learn how to send a rocket to the moon, you can repeat the process with other rockets and perfect it. One rocket is like another rocket. But not so with raising a child, the professors point out. Every child is unique. Although raising one child may provide experience, it does not guarantee success with the next child. Expertise is valuable but most certainly not sufficient. Indeed, the next child may require an entirely different approach from the previous one. And this brings up another feature of complex problems: their outcomes remain highly uncertain. Yet we all know that it is possible to raise a child well. It’s complex, that’s all.”
I want to relate this framing to teams and dysfunction. Building and leading a team is a complex problem. Like raising a child well – “It’s complex, that’s all.” In our work at The Suddes Group, we’re often building or reconfiguring teams to create greater funding results. One of the things we’ve observed is the relationship between the simple and complex problems. When teams don’t execute on the simple problems, the complex problems are amplified.
Any funding effort is largely a function of simple problems:(more…)
Record what happened on the visit. Someone on your team should be able to pick-up the memo and continue the conversation. In most cases, you can have a sheet of paper out to take notes during the visit. I’m amazed at how often sales people don’t take notes!
Use quotes. THIS IS IMPORTANT!!!! The best message in the world is the one that comes from the prospect’s mouth. Capture words and exact phrases used by the prospect(s); put them in quotes.
Bad: Prospect seemed to like our program.
Good: “Of everything you’re doing, I honestly don’t really care about the after-school program but I think the summer program has mountains of potential.”
Reposting one of our most popular nuggets from Tom about how to measure success and productivity in your Development Operation.
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 (whether it’s a one-person shop or 50 people in the college advancement division) but doesn’t measure that RETURN-ON-INVESTMENT. 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.
Have you ever finished a great visit and had the prospect say, “This is great – Can you get me a proposal?”
If someone asks this we need to simplify on the spot – “Sure thing. Are you an email person?” (Everyone is.) “Would it be okay if I summarized our conversation in bullet point form and shot that back by email?”
Save yourself HOURS by converting ‘proposals’ to ‘bullet points.’
I’m constantly trying to get people to think about what it means TO ENGAGE! I think we’re taught how to present, but we’re not always taught how to engage.
I define engagement as a dynamic within a relationship that holds attention, heightens interest and motivates action.
Think about a movie or a performance you’ve attended where you were engaged and left with that feeling of being present and excited. Think about how that engagement consumed your mind! Now think about how you felt the next day.
I believe engagement has a 12-hour half-life. That is, if we could measure engagement in some way, it seems to dissipate by half every 12 hours.
This means that within 24 hours of your visit the prospect has an engagement level at 25% of what it was after your visit.
THINK ABOUT THE IMPLICATIONS!
As salespeople, we need to be making engaging presentations and asks. And, more importantly, we need to pounce on timely follow-up. It’s better to follow-up immediately, even if it’s 60% of your best effort, than it is to wait three days. At three or more days you’re just working to recapture engagement.
We feel that these 9 Guiding Principles are pretty self-explanatory, but here are some notes to help you take charge of your Development Operation. ( Download and print the poster here.)
START WITH WHY. What prospects hear (often times) is “We need money to meet our annual funding goal” or “Buy a table at our gala.” These messages have no WHY – no saving, changing and impacting lives – which is exactly what people want to do!
If the number one question of every investor is, “Why do you exist?” and the person you are talking to doesn’t care about your WHY, it’s very hard to talk to her about the what and the how. For more on this, see Altitude Framework PDF, How to Stay at 30,000′ and Simplify Your Message.
YOU BECOME WHAT YOU THINK ABOUT! Earl Nightingale, the father of personal development wrote The Strangest Secret in 1956 – the seed from which the personal development industry grew. Here is the ‘Strangest Secret’ – You Become What You Think About! It’s the difference in outcomes when you think about IMPACT, VISION, MEANING, instead of payroll, cuts in funding and survival. Read more here.
CHANGE YOUR VOCABULARY! WORDS ARE IMPORTANT! Stop using all the typical ‘nonprofit’ industry jargon. Start using ‘sales’ terms, ‘business’ terms, ‘common sense’ terms.
CHANGE (THE) RULES! Thisis a little play on words – in this generation’s lexicon, to RULE is a good thing. CHANGE DOES RULE. At the same time, in order to really CHANGE something (yourself, your organization, the world), you also to have CHANGE THE RULES. We believe it’s much stronger than that: THERE ARE NO RULES! Read more in our For Impact Guidebook: CHANGE (THE) RULES.
ENGAGE GREAT TALENT. Small or young organizations (for profit/nonprofit alike) often identify FUNDING as their top challenge – until the organization really figures out a working funding model. At that point, the top challenge becomes the RIGHT PEOPLE. (We can help you with this!)
DO THE MATH. You can’t ‘SELL’ unless you understand all the ‘NUMBERS!’ 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. Read more about Blue, Red and Green Math here.
COMMIT TO SALES. You are in sales! Not everyone wants to hear that but it’s the truth. What is sales? Sales is the responsibility, the calling, the opportunity to carry the story of your organization – how it’s saving, changing and impacting lives – and share that story with people, 1:1, to build relationships with them to ASK them to help save, change and impact lives. Sales is about ATTITUDE!
JUST ASK. JUST ASK. JUST ASK. No explanation necessary. Just do it.
From the archives, but still relevant today – Read on for how to avoid Vocabulary Wars.
Last week we were with an organization that helps homeless people find and secure permanent housing. The Executive Director of this organization had spent the last 10 years – off and on – trying to get three specific area Foundations ‘on board.’ In that time, some $10K grants had been awarded but for the most part the Foundations said, “We don’t fund projects like yours.”
The mission statements for the foundations were almost identical to that of this homelessness organization. And, each Foundation had funded similar agencies working in the homeless arena.
After some discussion, I realized that the challenge has been vocabulary, not fit. For example:
This organization receives about $1M annually from the government — to be used for ‘capital’. It turned out that ‘capital’ in this definition meant anything that had to do with the actual home or residence (including programs to get into the residence.) In the case of this organization, the ‘home’ was the OBJECTIVE of the program. Kind of hard to end homelessness without a home somewhere in the equation… no?
The Foundations avoided ‘capital’ projects. It turned out the ‘capital’ meant ‘capital campaign’ to the them – bricks and mortar, campaign committees, fancy office chairs, etc.
The organization had structured all of its internal vocabulary based on conversations with the government. These vocabulary words were deal killers with the private foundations who heard “capital campaign” when they wanted to focus on more “programs for the homeless.” (I’m not making this up.)
So, here’s what we did:
We coached the organization’s senior leadership to go back to one of the Foundations. This time the organizations was to ask questions, listen and use the Foundation’s vocabulary to advance a discussion.
The key questions to ask were, “What is the biggest challenge you’re seeing with respect to ending homeless in this area? How are you working to address that challenge?”
The Foundation said it felt a lack of ‘housing opportunities’ were available to the working poor and that it was trying to identify agencies that worked as a catalyst to create more opportunities. Note: The most critical point of this entire story is probably right here. The organization had to LISTEN to the foundation to pull off the right ask.
The organization’s leadership was then able to position its work as a ‘catalyst to create more housing opportunities’.
Both the foundation and the organization leadership described the ensuing conversation as ‘electric’ and ‘exciting.‘ They will be meeting again next month to talk about a multi-year financial partnership.
For 10 years, would-be partners had failed to align for what amounted to a vocabulary war. At times the relationship was even contentious – there were debates and arguments between foundation heads and leaders in this organization about right/wrong and ‘justice’ in funding.
It’s important to realize in this story that at 30,000’ they were in COMPLETE alignment: all parties were trying to end homelessness. The fact that the homeless organization was getting a token $10K here and there was an indicator that there was alignment on the CAUSE (WHY), but not the CASE (WHAT). The relationship was advanced – light speed – by really, really listening and aligning the solution in terms the funder understood.
The only way to avoid a vocabulary war is to listen.
Note: In the actual coaching I said to the ED, “I want you just to listen.. to really understand the foundation’s challenges. When you hear a word you don’t understand, ask them to define it. Keep listening until you can say, ‘wait a minute, we can help solve that!’”.
We’re excited to announce the 2016-2017 tour of our For Impact Workshop: Fundraising on a Napkin.
This workshop is a transformational experience for Executive Directors, Board Leaders, Development Teams, or anyone responsible for shaping and implementing organizational and funding strategy. We’ve simplified our biggest and boldest ideas, insights and motivations, and deliver them to you live and in person, including:
How to get strategic clarity
How to communicate your vision and message
How to find and engage with great leaders, prospects and champions
How to build a high performing leadership team
How to build an effective culture around funding the vision
How to ask
We field daily requests from people who want their network to hear the For Impact Point of View. This is your chance to make that happen! We’re looking for great Partners – Organizations who can help us spread the word in a community, fill the room, and host us in fantastic locations around the country. Email us now to discuss bringing the For Impact Workshop to your city as a Partner Organization.
Have For Impact Stop in Your City
If you would like to have For Impact come to you, simply vote for your city using this pre-registration form. Your pre-registration is not binding, it’s simply a way for us to crowd source our destinations. As a thank you, you’ll receive a coupon code for $100 off the registration fee ($145) for any For Impact Workshop.
After you’ve completed your form, share this post and encourage your network to vote for your city. We’ll announce our tour stops at the end of June.