Josh Birkholz

7 steps to rolling-out effective performance management plans at your nonprofit.

Do performance metrics actually change behavior? Part 3 of 3 

In the third installment of my thoughts on performance metrics in nonprofit fundraising, I hope to present an approach to implementation.  As we discussed, an understanding of the interests and drivers for each staff member is requisite for establishing a system of motivating them.  And, the data only serves to motivate independent of human intervention in cases of peer input, aligning self-interest, and fun - none of which are really mutually exclusive.

Ideas are only as good as your ability to make them happen.  I’ve worked with many organizations to transform their operational approach to fundraising.  These systems all start with great ideas.  Those that succeed, followed a process for implementation.  There is no perfect process, but any process is better than no process.  Where to start?  I’ve found these 7 steps remarkably and consistently present among succeeding organizations.

Task Force of Early Champions.

Identify those precious individuals who understand the need for a new approach and will rally their friends.  Assemble them into a task force.  Even if they are only somewhat on board, the involvement with the task force will likely strengthen their adoption.  Ideally, pursue a cross-functional team.  I recommend a member of leadership, 1-2 major gift officers, a prospect researcher or management specialist, and a report writer / IT representative.  

Project planning

The task force should be responsible for assembling the initial project plan.  Some of the success-factor steps below should be part of the plan.  But the tactical elements I won’t address, such as system coding, report writing, documentation, and materials, should also be included.  As with all plans, it is important to assign responsibility for steps, set timelines, and establish a regular meeting schedule or communication to keep on task.

Communication (Group and Personal)

Whenever you roll-out new responsibilities to your organization, you must anticipate ambiguity of understanding by the recipients.  Whether willfully or otherwise, staff will not understand or will not believe this is real without evidence.  Regular communication to each individual is necessary.  But, it is even more critical to communicate with the group.  Knowing ones peers receive the same message is the start to implementing peer input as a behavior driver.

Ongoing Feedback Loop

Through the interpersonal and group communication process, you should learn the personal drivers of each gift officer or staff member.  As a manager, this is your responsibility nevertheless.  So, at this point in the process, it is time to consider those self-interests, peer delivery mechanisms, and fun challenges to tie-in to your performance process.  Feed the competitive performers with contests to work in the stadium box for a big game, to attend a premier event, win a new GPS for donor calls, or even a cash bonus.  Post a large report in the break room for all to see.  Set individualized targets with progress towards goals on the dashboard or periodic reports.  The idea is to deliver data tied to peer inputs, self-interests, and/or fund with regularity and consistency.

Transparency

Nothing kills trust faster than secrets.  Nothing kills organizational performance faster than lack of trust.  Don’t change the rules.  Don’t keep secrets.  Apart from donor intentions and privacy, there is no need for secrets in fundraising.  When people make mistakes, talk openly about them.  Showing your forgiving side will propel an innovative spirit among your team.  Be open about how performance or lack thereof makes you feel.  When things work, celebrate.  When they don’t, be honest.

Really Listen (Actually Consider Feedback)

Most leaders are afraid to really listen.  We might assume that feedback reflects a dislike or disapproval of us and our abilities.  We might also assume that feedback is just excuses for nonperformance.  But, sometimes feedback is just feedback.  Our team has a perspective we may not see.  Whether input is constructive or otherwise, it is your responsibility to really listen and find out.  If the feedback is constructive, actually consider it.  You will build trust with your team.  And, you might fast-track right past employee compliance to the prized stage of employee engagement; where employees actually perform, not because they have to, but because they choose to perform.

Thank Adopters Publicly

Nonprofits will have entire strategies for thanking donors.  If you don’t, you have issues more serious than employee performance.  Normally, these donor relations strategies will consist of acknowledgement, recognition, and stewardship of gifts.  When your employees choose to perform, it is a remarkable behavior worth acknowledging.  Thank these employees publicly; so all might see your appreciation.  Tell the employee what it means to you and what it means to the organization.  You should be good at thanking donors.  Try to be that good with your team. 

I hope my musings on performance management provide you with some value.  If not, I sincerely apologize for wasting your time.  Please drop me a note or give me some feedback.  I read every note and try to soak it in.  

 Josh Birkholz

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Do performance metrics actually change behavior? Part 2 of 3

In my last blog post (part 1 of 3), I discussed motivating behavior by being mindful of employee self-interest while outlining organizational priorities.  In this week’s posting, I want to discuss the idea of the data-itself motivating behavior.

The concept of the feedback loop describes the interchange of data which influences behavior directly.  You might be familiar with the Wired magazine article on the subject which used speed limit radar signs as an example.  Even though the speedometer provides you with direct data on your speed, the radar sign declaring “Your Speed is:” has a greater impact on changing your behavior.  Even though this is only 20 degrees difference in sight line, it makes a difference.  A motivating factor might be that other’s also see your speed.

Data changes your behavior when peer input is a factor (pressure or competition), self interest is a factor (personal security or success) and in gamification (fun). the speed limit sign is an example of peer pressure.  A leader board is an example of positive competition.  

A good example of personal security is mission control.  An astronaut will immediately act upon data because it is tied to his or her well being.  Hearing “Fire!” or “Danger!” will cause us to react without being told we need to change what we are doing.  The reaction is without persuasion.

Success-based self interest might be seen in the stock market.  Based on performance data alone, we might buy or sell securities, rethink our 401K distribution, or change or risk levels.  Motivated by success, the data alone changes our behaviors.

We also see this behavior in video games.  When I am playing Bioshock, I will switch from Eve to weapons when my Eve levels deplete.  Or, I will play more conservatively when my health meter declines.  No one is persuading me to change my behavior, the real-time data is all I need.

How on earth does this apply to fundraising?  I think your mind is probably racing the same way mine was as I thought through these examples.  Motivating gift officer performance is thought to require management intervention based on findings in the metrics.  However, if the metrics can be delivered in such a way that influence is immediate, there is a distinct advantage.

Are your reports tapping into peer pressure or fueling competitiveness?  In other words, do you communicate these broadly for all people in your organization to see?  Do your fundraisers, as described in my first post, see their performance and the resulting organizational benefit as directly tied to their personal benefit?  Is it fun?

As you develop or enhance your fundraising performance metrics, consider these examples to see real and immediate change.

In part 3 of 3, I will describe 7 steps to rolling-out effective performance management plans at your nonprofit.

Joshua Birkholz

Bentz Whaley Flessner

Achieving zen-like state through analytics.

Maybe its just me, but conducting complex math is one of the most relaxing activities - followed closely by preparing datasets for predictive modeling.  Apparently, others have stumbled upon the same relationship. “Analytics” and “restful” have a strong correlation in Google searches (r=.9880).  Numbers don’t lie - just like the Internet.

See the proof