Development As An Instrument of Change: More Than Community Impact

1. Development As An Instrument of Change: More Than Community Impact AFP Toronto – PhD Track December 1, 2005 4 – 5:30 p.m. Kay Sprinkel Grace, Presenter

2. What We Will Cover • Welcome and introductions • Participant expectations • The paradox of change in nonprofits • Development as an instrument of internal change • Implementing change to create a culture of philanthropy and a full development team • What we have learned from the CPB-funded public television Major Giving Initiative • Questions and discussion

3. The Paradox of Change in Nonprofits • We are change agents, defining ourselves by our impact, yet reluctant to change internally (widening the gap) • Demands of donors for transparency, accountability, involvement are requiring us to change • “Push back” is common; change is slow • How development becomes an internal change agent – working across our organizations

4. The Paradox of Change in Nonprofits • Knocking down the silos: creating the full development team • Resistance to change – why it persists • What donors are looking for in our organizations and the dangers of “mission drift” • Strategies for implementing change: creating a vision that is bigger than the organization • Becoming a renewing organization

5. Becoming a Renewing Organization Step 1 on the path to internal change

6. Eight Attributes of Renewing Organizations • Informed opportunism • Direction and Empowerment • Friendly Facts, Congenial Controls • A Different Mirror • Teamwork and Trust; Politics and Power • Stability in Motion • Attitudes and Attention • Causes and Commitment • Robert Waterman, The Renewal Factor

7. Change (Waterman) “Most of us fear change. Even when our minds say change is normal, our stomachs quiver at the prospect. But for leaders and managers today, there is no choice but to change. A manager must build the renewal factor into his or her organization to keep the competitive edge.

8. Change - continued (Waterman) • Organizations exist for only one purpose: to help people reach ends together that they could not achieve individually. • Dreams, not desperation, move organizations to the highest levels of performance. Our dream ought to be institutions that work for, not against, our needs. That is the hope, the power, the dream, and the challenge in renewal.” Robert J. Waterman, Jr The Renewal Factor

9. Two Models to Guide Us:Adizes* Organizational Growth CurveHuman Factors** Change Options *Itchak Adizes, The Adizes Institute, Los Angeles, CA **Human Factors, San Rafael, CA

10. Renewal (Waterman) Maturity Prime Aristocracy Bureaucracy I Adolescence Bureaucracy II “Go-Go” years Infancy Death

11. Opportunity Creative Behavior Growth Excitement Energy Change Fear Decay Threat Defensive Behavior

12. Change (Waterman) “…the only constant is change. Somehow, there are organizations that effectively manage change, continuously adapting their bureaucracies, strategies, systems, products and cultures to survive the shocks and prosper from the forces that decimate their competition. They move from strength to strength, adjusting to crises that bedevil others… they are the masters of what I call renewal.” Robert J. Waterman, Jr The Renewal Factor

13. Implementing Internal Change Creating and Implementing a Culture of Philanthropy – Step 2 on the path to internal change

14. Creating a Culture of Philanthropy • A culture of philanthropy manifests itself in the following organizational attributes and qualities: • The majority of people in the organization understand the importance of philanthropy and the development process • Leadership of the organization is committed to philanthropy (the encouragement of voluntary action for the public good)

15. Creating a Culture of Philanthropy - 2 • The community perceives the commitment to philanthropy and development, and responds • The culture encourages the careful development of relationships through cultivation, appropriate tone and timing of solicitations, and through the stewardship process • From receptionist to CEO, people know that this is an organization that cares (the full development team)

16. Impact of the Culture of Philanthropy • Internal changes are perceptible – a larger vision pulls people together (WNET/WLIW, CPMC) • Systemic commitment to philanthropy relies on mission, vision and values • Knowledge of mission, vision and values is a catalyst for board/staff cohesion and success and gaining internal alliances

17. Impact of the Culture of Philanthropy - 2 • Community investment grows with trust in the philanthropic environment of the organization • The unity of message and vision permeates the actions and outcomes of the organization • Community perceives value and values of the organization more easily

18. Organizational Response • Increased team work • Greater sense of shared vision • Knowledge of and confidence in outcomes • Sustains morale • Reinforces commitment to mission • Expands everyone’s knowledge of the power of philanthropy

19. From The Toronto Hospital for Sick Children’s 2000 – 2001 Annual Report • The report cited the following, after announcing a record-setting year in which $94 million was raised – it describes a “full development team” • “People often ask how the Foundation continues to thrive in an increasingly competitive environment. The answer is simple: good people…”(volunteers, employees, medical/scientific leaders, board members, community and corporate partners). • “Without our employees and volunteer champions, we wouldn’t have anyone telling our story….”

20. How We See This Working At CPB in the US • Change concepts that guided CPB’s Major Giving Initiative with public television • External impact (not just reach) • Internal alignment (breaking down silos) • Working with 113 licensees for more than a year: • what we have learned • what they have learned • what’s working • where the resistance points are

21. What Successes We Are Seeing • Restructuring of internal “rewards” • More cross-department conversations about prospects, donors and stewardship • A greater sense of involvement across each organization • Greater willingness to engage with volunteers • A shared vision and a shared pride in the accomplishments • A change in the approach to fund raising

22. Going from Transaction to Transformation The 3rd Step: The major manifestation of change

23. Transactional Bell Curve High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff

24. Transformational Infinity Loop High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff

25. Infinity Loop: Taking Your Case to Market 2. You tailor Your Case 1. You make Your Case 3. Donor-investors champion Your Case High Impact Philanthropy Kay Sprinkel Grace, Alan Wendroff

26. What Lessons Do You Derive From This? • Feedback • Discussion • What can you apply from this in your organization? • What obstacles will you confront? • What lessons from the CPB experience apply?

27. A Note of Caution in Closing • “There is nothing more difficult to arrange, more doubtful of success, and dangerous to carry through than initiating change.” • Machiavelli, The Prince, 1513

28. And a Parting Thought About Why We Need to be Instruments of Change • “Leaders are the ones who keep faith with the past, keep step with the present, and keep the promise to posterity.” • Harold “Sy” Seymour, pioneer writer in philanthropy (Designs for Fundraising, 1968)

29. Development As An Instrument of Change: More Than Community Impact AFP Toronto – PhD Track Kay Sprinkel Grace, Presenter kaysprinkelgrace@aol.com www.transforming-philanthropy.org