March 2013 – MonkeyBar Management

Mar 13

Scheduled Succession: A Cardinal Sin of Management

By Kellee O'Reilly Associations, Managing Change, NonProfits, Strategic Thinking No Comments

Despite my marginally clever play-on-words, this isn’t a post about Pope Francis I. (A man whose qualifications for the job he has just been elected to I am woefully incapable of evaluating.)

What it is a post about is a dangerous phenomenon: one that I have witnessed in nonprofit associations, in city governments, in businesses large & small, in families, in volunteer committees of all shapes and sizes.

It’s a phenomenon that – given its pervasiveness in society – I could surmise might have plagued the Papal Conclave as well.

It’s His Turn

You’ve surely witnessed this plague in action:

• Susan was the Vice Chair of the event last year, so she’ll become the event Chair this year.

• Max has ‘paid his dues’ on the board for 5 years so he should ascend to the Vice Chairmanship.

• Mary has been the Coordinator in that department for 3 years, so now that Bob has been promoted to Director, she should logically take over his position as Manager.

• The current city council members have an off-the-record conversation that “If Gene wants to run for Mayor, we won’t run against him…”

• He’s the first born (son), so he’s going to take over the family business (country).

I suppose it is statistically possible that the ‘next in line’ actually IS (by coincidence rather than design) the best person for the task at hand. But particularly given the pace of change in the world today, my observational experience says it’s more-than-likely not to be the case.

Worse than just not ideal – allowing an “It’s His Turn” philosophy to flourish can truly be a kiss of death for an organization. Even the perception of this ethos at work can signal that the company is not actually responsive to client/constituent needs. That merit and skill are less valued than time served. That we are out of touch with what is actually going on in our community. That we are not transparent about our process.

For the sake of the Catholic Church and the 1 billion + people worldwide that they serve, I hope that the College of Cardinals asked questions like these when considering whom to elect:

What specific skills does the organization need today?

What are the biggest obstacles we face on the path to success?

What kind of personality traits are best suited to address our needs and challenges?

What communities will be emboldened or disenfranchised by the selection?

What changes are coming rapidly that we need to prepare for, who has the vision to see them clearly?

To the public eye, the College of Cardinals had the opportunity to choose anyone (well, any Catholic Male) to lead them. I am hopeful that with days of prayer, reflection, holy wisdom-seeking that they didn’t simply select the person who was the ‘first runner up’ to Benedict during the prior voting. Given the secrecy and lack of transparency surrounding the process, we can’t know. Surely he is being lauded by the media (and Catholic friends of mine who are more equipped to gauge) as the “right man for the job” – with traits that do seem to answer at least some of the questions above.

Decisions in your world may not attract such scrutiny or media attention, but if it feels like “It’s His Turn” for something in your world, ask yourself – ask your team: SHOULD it be?

And if the answer is no, I pray that you have the courage to vote differently. Your business depends on it.

Mar 01

Love0

Start a Bonfire & Grind Up the Sacred Cow (Scorched Earth – Part II)

By Kellee O'Reilly Associations, Managing Change, NonProfits No Comments

Today – right now — imagine your association in a fight for survival. It’s not far-fetched. Many associations already are seeing “the end of times,” whether they acknowledge it or not. It’s time to consider what you need to do in order to survive. For many groups, cooking sacred cows for nourishment will be one option. Be ready to build a sizeable bonfire and build a plan to carry on.

1. Understand what nourishment looks like. You first must commit to keeping the enterprise fed, even if that means eating bugs and chewing up the sacred cow. Create an environment whose mission is to provide sustenance to the organization at any cost. This includes not only allowing but cultivating the “crazy ideas” – the 10% of ideas that may, at first glance, seem bizarre and unpalatable. All edibles are on.

2. Identify your sacred cow(s). Every client I have worked with has programs and processes that continue to move forward, unquestioned, “because that’s how we do it.” To find yours, ask three questions:

Where are the non-performing SKUs?: Borrowing a term from retailing, profitable retailers must ensure that their square footage is returning the best margin possible, regularly discontinuing the bottom 10% of products to create space for higher-producing inventory. In associations, your “shop floor” is your staff and budget. In these lean times, most are pushed beyond capacity fulfilling the programs (products) you’ve already got. Reconfigure now to create space for programs and services that will return a better margin, audience, or connection.

Whom do we need to alert? Before you discontinue any program, be candid with those customers who will be affected. Most are probably business people who have made difficult decisions of their own and they will understand.

Who’s got a cow to proffer? To create a culture of identifying the tastiest sacred cows, turn to staff and volunteers, conducting a monthly or quarterly “What should we stop doing?” inquiry. Incent them for their suggestions.

3. Know your enemy. In any post-apocalyptic environment, you’d be aware of the marauders around every corner. Have you considered enemies like these?

Competitors: Associations today have many competitors. In fact, besides the Internet, the growth of competition is the most significant challenge to association management I’ve seen in 20 years. Formerly supportive sponsor organizations launch their own programs and services to reach the membership base. Once collaborative trade magazines, in a scramble for revenue themselves, are launching online and print products that compete aggressively for a shrinking ad revenue stream. In a world with fewer geographic boundaries, other state/regional/national organizations are claiming new ground. Your members are already finding value elsewhere. Do you have a “Chief Competition Officer,” someone whose job it is to know what these others are doing?

Nelly & SALY: “Negative Nelly” shoots down any idea presented and creates an unpleasant work environment. Get rid of her, and watch the rest of the team’s productivity skyrocket. SALY, “Same As Last Year,” is not a person, it’s a philosophy. SALY breeds in places where too much workload & too few resources produces little incentive for the team to innovate. A “no-SALY” policy gives new products and services a fighting chance.

4. Stop biting the hand that feeds you. Sponsor neglect is rampant in associations, a recipe for disaster in a competitive environment. Senior executives should regularly sit down with the top 20% of sponsors. An open dialogue will disclose how – and whether – your association’s products and services are meeting sponsor needs. In many cases, sponsors are more attuned to member needs than staff and can bring compelling ideas (and funding) to your table.

Through honest & aggressive consideration of these four areas, associations can be well on their way to a sustainable future. It’s not too late to start: your survival, literally, depends on it.

Part I of the “Scorched Earth” series was published in the October issue of Marketing AdVents, the monthly newsletter of the Direct Marketing Association of Washington (DC). Part II – “How To Start A Bonfire and Grind Up the Sacred Cow” was part of the February 2013 issue in the association’s monthly column addressing trends in direct marketing within trade associations and nonprofits.