The 7-S’s of effective organizations, plus cherry blossoms and existential crises

cherry blossomsThe dinner went remarkably well, and for the past three days I’ve been feeling a sense of after-event euphoria. That, combined with the contact high from legalized pot in Seattle, has led to one of the best weekends I’ve had in a while. Now I am at a hotel near the University of Washington, sequestered here this entire week for the Nonprofit Executives Leadership Institute (NELI), a time for us nonprofit leaders to take a break from daily work and reflect on things like adaptive leadership, board engagement, strategic thinking, and how ancient and decrepit we are in comparison to the fresh-faced college students here, who are walking around while texting, oblivious to the world around them.

The course is pretty intense, but I might try to use this blog for some reflections on the key concepts that strike me. Apologies in advance if the posts come too often and clog up your inbox.

Today, among several concepts, we learned of the 7-S Model created by McKinsey consultants ad Harvard Business School and Stanford Business school professors. The S’s are:

Strategy (what actions the organization uses to be more awesome than its competitors),

Structure (who reports to whom, how authority is distributed, is it hierarchical, how departments/divisions interact, etc.),

Systems (processes and procedures like a database, budgeting, planning, monitoring, and rules around washing dishes because it’s disgusting when staff leave them in the sink for days!),

Staffing (recruitment, retention, professional development, do we have the right people, and why is Steve still around when doesn’t do any work and never washes his dishes?),

Skills (the organization’s distinct competencies, developed over years, such as “We are the best in the business at teaching youth to make balloon animals”),

Style (the organizational culture, often led by the people at the top. For instance, does the ED have an open-cubicle policy, or does she prefer to close the door in order to weep quietly by herself?).

Shared Values (written and unwritten values to guide the organization, for instance, “focus on quality” or “customer service above all” or “Let’s just try not to screw up.”)

In successful organizations, these 7 S’s are aligned with one another. When there is a disconnect, it could spell trouble for the agency. For instance, if a Shared Value is Innovation, but the organization fails to take risks and never tries anything new, or if the Value is Quality, but the morons who don’t focus on it keep getting promoted, then it may be a serious problem.

It was good fodder for thought. But the thing that really made me think today was something not in class at all. It was the cherry blossoms. UW has a dozen ancient cherry blossom trees in its Quad. Today, the trees are in full bloom, looking breathtakingly magnificent and smelling like Spring, like happiness, like childhood, like general operating funds. Hundreds of people were in the Quad, including a wedding party that used the snowy backdrops for pictures.

Three other EDs and I walked to the Quad and were amazed by the beauty of the cherry blossoms. “The cherry blossoms are a great symbol of nonprofit funding,” I said. Another ED piped in, “Yeah! We wait for them all year. We cultivate them. Then the arrive and they’re gone in days!” Ahahaheheheh, we all laughed. That’s how we EDs laugh. Then we sighed and scoped around for a bar.

The cherry blossoms, of course, are symbolic of both how beautiful life can be and yet how ephemeral it is. I imagine that many of us choose the stressful nonprofit field because unconsciously we know that life is short, and to get a grip on our impending mortality, we strive to do something meaningful with our time. I don’t think this is a bad thing. There are far worse ways to deal with the existential despair we all feel from time to time.

For instance, grabbing some pimply college kid by their hoodie, slapping them around a bit, and screaming, “Stop texting and look at the cherry blossoms! You don’t know how good you have it! Enjoy your youth, you exquisite fool, for soon it will be gone, and you too shall look like I do. Look at me! THIS IS YOUR FUTURE!”

***

Discussion questions:

Which S does your organization excel at, and which ones does it suck at?

How much do existential factors influence your work?

How much trouble will I get into if I slap some random college student who is walking and texting?

“On the Threshold of Awesome”: An ED’s speech to his staff before the annual event

Source: alanarnette.com

My team, this week will be our organization’s annual fundraising event. These three words have struck fear into the hearts of even the bravest of us since the beginning of time.

The intensity of the past fortnight must be acknowledged. I see it on your weary faces, gaunt from lack of sleep, haunted by endless tasks, by worst-case scenarios, and by the merciless passage of the hours. I see it on your hands, marked by papercuts from sponsorship packets and development committee meeting agendas. I hear it on your voices, made frail by hours of phone calls to vendors, guests, volunteers, and the Liquor License Board.

No one would think less of you for admitting that you feel some trepidation now, at this moment, three days before the culmination of all our hard work for the past seven months. I, too, am nervous, and during my own slumberless nights, I confess that I sometimes envision running off into the wilderness to live as a hermit, surviving with small woodland creatures I’ve befriended who help me gather berries and mushrooms. I would have a pet chipmunk named Mr. Squeaken, and Mr. Squeaken and I would live a simple existence in the forest, away from speeches and auctions and check-out lines.

It is OK and normal for all of us to feel nervousness and even fear at this time. For the things in life that are most worth doing will usually be the hardest. We as human beings all feel fear at various points in our lives. But did fear stop Sir Edmund Hillary? Did fear stop Lewis and Clark? Did fear stop the Wright Brothers? No! They ALL had to plan at least one annual fundraising event, and they did fine. Yes, Sir Edmund Hillary also had challenges with the registration line. And we all know Lewis and Clark’s “Hot Soup Dash” resulted in minor injuries to many guests, and thus everyone now does “Dessert Dash” instead. Despite these challenges, their events were successful.

I know then, from history, that our event will be OK. In fact, it will be awesome. It will be awesome because the work we do to lift up families and communities is important and this event is toward furthering this goal. It will be awesome because our supporters are some of the most generous and understanding and good-looking people ever and they will forgive minor mistakes. It will be awesome because it has been getting more and more awesome every year since we started doing this.

As importantly, it will be awesome because we are us. Look around you. Are these not some of the most brilliant and talented people you have ever worked with? Is this not the most dedicated Development Director and Development Committee and board members ever? Sure, we are slightly disheveled after moving large pieces of decoration and picking up 40 vases and whatnot, and the stubbed toes and carpal tunnel don’t help. And James, you should see a doctor about your twitching eye. But we are a team, an amazing team, and if anyone can pull this off, it will be us.

The next three days will be more intense than ever. Last-minute registrations will come in, and we will be spending hours figuring out which table is placed where. Some people will cancel. Some sponsors won’t be able to fill their seats and we will rush to fill them. Critical volunteers may come down with the stomach virus and not be able to help. There will always be a case of stomach virus at this time. Desperate calls will be made. There may be some crying in the fetal position, but I will try to control myself. The office will be packed with crap. Many of us will stay late preparing logistics while listening to 90’s hip-hop. During these next three days, we must be patient with and supportive of one another, even of those coworkers who keep playing Dave Mathews Band’s “Proudest Monkey” over and over again, arguably one of the dumbest songs ever written, for God’s sake!

But it will all be worth it. Our students and families and community depend on our programs. We will have an incredible event, an event for the history books, an event that we will tell our grandkids about. Long after we are all gone and time has erased our footprints and other traces of our lives, people will still be talking about this day. And they will say, “Those folks at that organization, they did good. I’m glad my grandparents raised their paddle.” Then they will hop on their hover board and fly off to the moon or something.

So have heart. We now stand on the threshold of awesome, and this week we will cross it. We will do so because we are us, and we always get stuff done. You may feel stress and trepidation now, but remember the inspiring words of Franklin D. Roosevelt. He said, “The only thing we have to fear…is probably audiovisual glitches. That $#!% will seriously mess up your event.”

Make Mondays suck a little less. Get a notice each Monday morning when a new post arrives. Subscribe to NWB by scrolling to the top right of this page and enter in your email address

Nonprofits: We must break out of the Scrappiness Cycle

Next week my organization is having its annual dinner, which means that right about now everyone is busy and on edge. Occasionally we share our anxiety-induced nightmares with one another as a form of stress relief:

“There I was, sitting at my table next to the Mayor and Benjamin Franklin. Suddenly James comes on stage, and he was holding a giant raw fish as a prop for one of his jokes. And I thought ‘No! You can’t handle raw fish on stage, since you’ll be shaking hands with everyone! We’ll get blamed for an outbreak of salmonella!’ I tried screaming, but no sound would come out. We were doomed. Doomed…”

The dinner has been consuming all our waking, and apparently non-waking, thoughts. Last month, a donor sent in a gift basket for the staff for the Lunar New Year. It contained high-quality chocolates and cookies and was wrapped up all nicely. We quickly sent a thank-you note. At the next staff meeting I took out the basket and started to open it. A hush fell on the meeting room.

“What are you doing?” someone asked, shocked.

“I’m opening it,” I said, “it’s for us.”

“Wait!” said the group, “it’s too nice! We should use it as a raffle item at the dinner!”

These last few months have made me realize that we nonprofits are constantly in the Scrappiness Cycle. We are always scrimping, trying to find the best deals, trying to get stuff discounted or preferably free. We scour Craigslist looking for usable furniture, and we pounce on businesses that are moving or closing, hoping to score a kick-ass filing cabinet (with a lock!). It has become a mindset that is ingrained in all of us. It is our donors’ money! We must save! We must be responsible!

We totally should. But I think we have gone too far. Scrappiness and frugality are great skills that everyone should have. But like sake bombs, they should be taken in moderation. It would be better for our organizations, our clients, and our own sanity to actually be a little LESS scrappy.

First, there is the time and opportunity Cost: In our quest to save a few bucks, we miss out on more productive opportunities. To save about $2,000 to furnish our previous office with 8 work stations from IKEA, for example, a staff and I rented a Uhaul, drove to a business that was moving, and brought home 8 wooden desks or so. For free! They were heavy and the project took us a whole day to move, several days to assemble, and another day to get rid of the desks once we found something better and equally as scrappy.

This time that we spent moving and assembling furniture could have been spent connecting with donors, writing grants, or otherwise doing something that could have brought our organization money. Worse, while assembling a desk, a piece fell and scraped my shin, leaving a painful bruise that lasted literally months. If I weren’t so nice and hadn’t initiated the project, I could have sued the organization.

Second, scrappiness prevents us from thinking beyond the short-term. When we are scrappy, we tend to skimp on necessary resources like the right people and the right tools, which means we can’t be as effective, which means we have to be even scrappier to survive, perpetuating a vicious cycle that keeps us from moving forward and leads to really crappy office chairs from Craigslist. How many boards are so fixated on how much is spent on office supply or other expenses, instead of focusing on the long-term growth and awesomeness of their organization? I was facilitating a retreat a few weeks ago for the board of another nonprofit. This was clearly a dedicated, passionate working group of people. But they were stuck in the present, and with almost no staff, they were reaching burn-out. Running completely on volunteers is very scrappy, but it is difficult to sustain.

Third, and most importantly, we nonprofits really need to get out of this Martyr Mentality. It seems we nonprofit staff take an unspoken vow of poverty when we enter our profession. It has been beaten into us over hundreds of years, and like smoking or checking emails in bed it is a very difficult habit to break. But we have to. This mentality is ineffective; it drives talented people to burning out and to leaving the field, and it negatively shapes the perceptions of people who are not in the field, preventing good ones from even thinking of entering.

We need to believe that we are not bad people for wanting nice things like a decent work space (See “Nonprofit office space: We deserve better!“). I’m not talking extravagant things; this is not a carte blanche to say that we should skip out on due diligence and go crazy buying caviar and use fancy French terms like “carte blanche.” But buy a metal filing cabinet with locks. Take the team out once a while for lunch. Hire the necessarily staff. On occasion this may seem risky, considering how unstable our funds are and how society expects martyrdom. But society cannot expect us nonprofits to continue to hunker down, be scrappy, avoid risks, and hope to thrive. But it will if we ourselves keep believing and perpetuating this cycle.

The Scrappiness Cycle doesn’t work in the long run. And we and our community deserve better.

So. Back to the gift basket. “Our annual dinner is coming up,” I said, “and this basket would make a nice raffle item, ’tis true…

“But no, it’s for us,” I continued, finding momentum in my speech, “We work hard. We deserve something for ourselves once a while. We’ll find other stuff to raffle off. Plus, it’s not nice to the person who gave this to us if we give it away. We’d be disrespecting their wishes. No, it is our DUTY to eat these treats!”

“Eat these treats! EAT THESE TREATS!” the staff chanted in unison.

All right, they didn’t do that. They still looked at me like I was crazy. But they reluctantly accepted, and I tore open the cellophane…

What the…

Dammit! There was nothing vegan for me!

We wasted a nice pre-wrapped basket for NOTHING!

9 lessons from House of Cards we can apply to nonprofit work

cards-627167_960_720Hi everyone, if you have not been watching House of Cards on Netflix, you should ask a coworker who has been watching it to slap you in the face right now. First off, it’s a really well-made show, with great actors, interesting plot-lines, and good pacing.

Second of all, it actually has a character who directs a nonprofit that is not illegally selling human organs in the basement. Every time we see a nonprofit depicted on TV on shows like Law and Order SVU, it is doing something like illegally selling human organs, which really screws up the general public’s perception of us. I am tired of people coming up to me and saying, “Pst, hey, I heard you direct a nonprofit? Got any kidneys in stock?”

All right, fine, no one says that.

Point is, House of Cards is great, and even though it is about politics and features some of the most ruthless, calculating, and evil-yet-well-dressed people on earth, we nonprofits can learn a lot from it. There are a lot of good lessons about leadership, loyalty, strategy, and how to push someone in front of a moving train. I’ll discuss a few that stuck with me, using quotes from the show. If you haven’t seen HOC, skip this spoiler-filled post and read something else, like these nonprofit jokes I wrote.

1. “That’s how you devour a whale, Doug: One bite at a time.” Frank Underwood didn’t get nominated as Secretary of State, and he is as pissed as a porcupine in a bucket. He wants to destroy everyone who has wronged him. A huge undertaking, says his Chief-of-Staff, Doug, prompting Frank to respond with the above quote.

Lesson for nonprofits: Even difficult tasks, like creating a strategic plan, or planning an event, or moving an entrenched board, or cleaning out the office fridge, can be done if you are methodical and break the goal into smaller chunks.

2. “Friends make the worst enemies.” Frank butts head with Marty Spinella from the teachers’ union. He and Frank worked well together in the past, and now Marty feels betrayed. Marty is as pissed as three badgers in a potato sack.

Lesson for nonprofits: Do not antagonize your donors and supporters! Maintain those relationships. Sure, a stranger who knows nothing about your organization saying stuff about you is one thing, but it is much worse coming from someone who used to be a fan, since they have more credibility.

3. “What you have to understand about my people is that they are a noble people. Humility is their form of pride. It is their strength; it is their weakness. And if you can humble yourself before them they will do anything you ask.” Frank goes to his hometown to appease the parents of a girl who died in a car accident because she was texting about a peach-shaped water tower, which Frank helped to build. He tells the parents that if they want him to resign, he will.

Lesson for nonprofits: This quote can easily be applied to us who choose to devote our lives to helping people. Humility is our strength, but it can also lead to our being pushed around, settling for insufficient resources and flawed systems and really bad office chairs from Craigslist, which does not help us achieve our mission. Figure out when to be humble, and when to be assertive.

4. “Never slap a man while he’s chewing tobaccah.” Frank is plotting against Remy, his former staffer who now becomes a powerful lobbyist and serious pain in his side. But, he must wait for the right time.

Lesson for nonprofits: Timing is critical, especially when interacting with influential people. They might spit tobacco in your face, and who wants that? Tobacco stains are very hard to remove. This is why I always wait until our board chair is in a good mood and has minty fresh breath before giving her bad news.

5. Doesn’t matter what side you’re on, everybody’s got to eat. Marty leads a teachers’ strike, which takes place in front of a fundraising dinner that Claire is organizing. Frank and Claire bring out ribs and offer them to the protesters, who take the food, dealing a critical blow to the strike.

Lesson for nonprofits: Two lessons: First, no matter what our nonprofits do, we all need resources to keep going. Second, figure out weaknesses and exploit them. For the sake of making the world better, of course. (By the way, that fundraising dinner raises half a million. I had to take a break during this episode to weep softly into a throw pillow).

6. “Such a waste of talent. He chose money over power – in this town, a mistake nearly everyone makes. Money is the Mc-mansion in Sarasota that starts falling apart after 10 years. Power is the old stone building that stands for centuries.” Frank here is talking about Remy, a smart former staff of his who chose to work as a lobbyist for a powerful company.

Lesson for nonprofits: Uh…just replace “power” with “social justice” and we’re good. Of course, we all chose social justice, which is far better than a stupid mansion anyway. A mansion with, like, a nice yard. A really big mansion. With a view. And a pool. And great shrubbery. God, I would push someone in front of a train for some decent shrubbery…

7. “Shake with your right hand, but hold a rock with your left.” This basically explains anytime Frank is nice to someone.

Lesson for nonprofits: The lesson I would take from this is not necessarily to be two-faced, but to always have a backup plan. Diplomacy is always a good first step when it comes to working with challenging people, but have a plan to put into action right away if that fails. And please do not let that plan involve illegally trading organs.

8. “There is no solace above or below. Only us – small, solitary, striving.” Frank at a church talking to himself after doing something terrible. So terrible that I can’t even describe it here. Let’s just say it involves at least one of these deadly things: ricin, carbon monoxide, kombucha tea, or a copy of Superman IV.

Lesson for nonprofits: We are nonprofits, and even if we’re huge, we’re still just one part of society. Every day we make choices. Some of them good. Some of them bad. We must live with our choices. Our world needs us. We must continue striving. That does sound kind of depressing, doesn’t it? Just don’t try to poison anyone with carbon monoxide and/or kombucha, all right?

9. “The foundation of this White House is not brick and mortar. It’s us.” The First Lady, trying to explain to her husband why it’s important that they work on their marriage by getting some counseling.

Lesson for nonprofits: The foundation of our work is not the office, or the computers, or the capital projects or the funds or whatever. It is the people who choose to be here doing this stuff. We must take care of each other, because good staff and board and donors and volunteers, they are what makes everything possible. Be nice to people.

But hold a rock…

Kidding.

The show is actually rife with quotes and lessons, so I’ll write more about it later. I’ve mainly been talking about Frank, but his wife Claire is equally fascinating. A post analyzing her ability to run a nonprofit will be coming, and I’m also working on lessons from Walking Dead, Game of Thrones, and the Golden Girls.

(Related post: 9 lessons from Breaking Bad we can apply to nonprofit work)

Which comes first, the Equity Egg or the Accountability Chicken?

chicken and eggThe last few weeks have been rough. Not only did the baby grow his first tooth and got an ear infection and has been miserable, but also my lucky bamboo, which I got to boost the feng shui in the office, mysteriously turned yellow and died.

None of that, however, compared to getting news that one of the schools we partner with didn’t get the grant that it applied to. I helped them to write this massive, 30-page narrative, sitting at the principal’s desk and typing away as she ran in and out of her office to deal with one situation after another. The grant was painful. It was like taking a pint of kumquats, freezing them overnight, putting them into a gym sock, running the gym sock though some poison oak, and then beating yourself in the face with it while watching Star Wars The Phantom Menace, that’s how painful it was. (I helped another school last year to write the same grant, and wrote about how awful that was).

We wrote this grant for several days. This is a school with 95% kids of color, 85% low-income, and this was their third time writing this grant and failing to get awarded. It was a devastating blow for a really great school. “I’ll buy you a drink,” I told the principal; we both felt like crap.

A few days later, I ran into one of the executive board members, “Frank,” who approved the decisions. I told him the grant award system was messed up and he needed to change it. “Well,” he said, “there are always winners and losers. And we need to focus on schools who have principals who are accountable and taking lead to improve their schools.”

As much as I love the US, we have some major things to improve on. One of those things is this zero-sum game that we play, and it often manifests in the form of “accountability,” a catch-all concept that everyone now uses because it makes them look smart and responsible. Accountability now equates with excellence and quality and bald eagles and apple pie.

Unfortunately, this concept has been thoroughly misused, wielded as a tool to perpetuate many crappy and unjust systems.

At a panel I was on, the topic was parental engagement. “We can talk all we want about all sorts of things,” said one of the other speakers, “but at the end, it comes down to parental accountability. Parents need to be responsible for their kids’ learning! They need to read to their kids and make sure they do their homework!”

Yeah, said the room, clapping, that’s the American Way!

“I agree,” I said, “parents should be involved in their kids’ education.” But, I pointed out, many of them don’t have the language skills, or they are poor and work several jobs. And then because they are poor, they tend to go to struggling schools, and those schools don’t have translation services, or any staff who can spend time with the parents, so even if a parent really wants to be engaged, they come to school and there is no one to help them. So if we want parents to be accountable, provide them the resources they need first.

We have a very punitive sort of mindset, and oftentimes it makes no sense. Let’s punish the schools that don’t do well by taking away or not giving them the resources they need. THAT will incentivize them to get better, those lazy, good-for-nothing schools who have no accountability.

Also, let’s force low-income schools to write painful 30-page grants to compete for these funds that are designed with equity in mind to help struggling schools with high numbers of low-income students. Grants that are so painful it’s like taking a mason jar, filling it with apple cider vinegar, running through a blackberry thicket, then pouring the vinegar all over yourself. The best-written grants should be awarded, because that’s accountability. Let’s ignore the fact that the schools that are most struggling, and thus most in need of these funds, are probably the ones that have the most challenges writing these grants.

People, even well-intentioned people like “Frank”, use “accountability” as a crutch to not have to deal with the much harder task of achieving equity. Why spend five times more effort to define and find the most struggling schools, work with them to develop a strong plan to support their students to achieve, and provide them with funding and guidance to succeed? Why do all that when you can make all the schools write a sadistically burdensome grant, grade them on a 100-point scale, and pick a school that scored 87 points over a school that scored 85 points? Your process is clear and “accountable,” you’re forcing the schools to be “accountable,” and no one can yell at you for being unfair.

People who believe that competition and the focus on accountability will lead to equity are deluding themselves. They believe everything should be like the Olympics, where those who perform the best should get the gold. Most of us, though, enter into the field of nonprofit or philanthropy because we know the games are screwed up, and our job is to do whatever we can to bring balance by making conditions equal. How can you give someone a gold medal for Alpine skiing, for instance, when they have two skis and the other skiers have only one ski, or a broken ski, or there is not enough snow on their track? Let’s focus on making sure everyone competes under the same conditions before we reward the best performers.

Even if conditions are equal, though, sadly the competition will still not be fair. That’s because everything is relationship based. Those who have the best relationships will always get ahead, and poor families, and communities of color, and struggling schools and scrappy nonprofits will seldom have the same level of relationships with influential people.

That’s why our work is important. We above most people understand that equity comes first. Sometimes, though, we also forget, and we also fall into the accountability trap.

If we want equity, we must start with equity. And there are instances where it is working. Finland, for example, has become one of the best school systems in the world, if not the best. They focus on ensuring there is equity first. In fact, they don’t even have a word for “accountability.” There are few standardized tests, for example, and they don’t make their principals spend 80 hours writing a grant to get the resources they need, a grant so awful it’s like taking a handmade quilt, gathering crazy ants onto it, then wrapping the quilt around yourself while listening to Passenger. They focus first on making sure every student has the same opportunity. And yet they are excelling. In comparison, Norway, with a similar homogenous population, has bought into this system of competition, punishment, and accountability, and they are not doing nearly as well. This is only one example, but it is a strong one.

Now that I’ve become a parent, I think a lot about how families are structured and what kind I would like mine to be. Imagine a family that is ultra competitive, where children are in constant competition with one another and rewarded by their parents. “John got 5 A’s this quarter, so we’re going to take him to Disneyland, yay! Have some more food, son, you deserve it. The rest of you, you got B’s, you need to shape up. Jimmy, I don’t care that you got mugged twice last month while walking home. Toughen up and stop whining. Be a man like John here.” (Sadly, I actually know some parents who are like that).

Most of us can see how awful it would be to live in such a family. But this is what our society is increasingly becoming like.

Many of us continue to do this work because we believe there shouldn’t be have to be winners and losers all the time, especially when we are talking about kids. All of them deserve a chance to succeed, and it pisses me off when idiots wield “accountability” as a reason to justify their thoughtless decisions. If we want EVERYONE to succeed, and not just a select few, then we must ensure everyone has the same opportunities. When it comes to accountability and quality and equity, it is not a chicken-and-egg argument. It is equity that will lead to quality and accountability, not the other way around.