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

Contact me at BWF

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Do performance metrics actually change behavior? Part 1 of 3

Last week I delivered a presentation on performance metrics in fundraising with the very brilliant Heather Campbell of Princeton University.  During the session, I commented that most of the prospect management and metrics sessions and articles fall way too short.  Typically, they provide new means of measuring activity, but lack any suggestions for improving lackluster performance.

So, for my next three blog posts, I will muse about changing behavior through performance metrics.  In my now 8th year of consulting nonprofits on prospect development and operational improvements, perhaps no topic surfaced with greater frequency.  I hope my observations add some value to the discourse.

To start, check out my very unartistic venn diagram above thanks to the easy charting capabilities of GraphJam.  The more I consult, the more I realize how much people are motivated by self-interest and the path of least resistance.  Everyone has self-interest, those short- or long- term personal goals that define our choices.  And, without an intervening motivation, we pursue the path with the least resistance.  I would define the least resistant path as the easy path.  We might follow a difficult path when self-interest bears more weight.  For example, we might spend hours researching fishing holes, quilting techniques, video game strategy, or sports statistics—not because the work is easy, but because it is fun.

Organizations, be they for-profit or nonprofit, have goals.  Typically, these are increased production, operating efficiency, mission impact, constituent engagement, or profitability. Rarely do the organization’s goals align with the worker’s self-interests except in cases of leadership or incentive systems.  Typically, leaders further expect that the organization’s goals do align with the worker’s goals, but rarely is this the case.

When an organization chooses to enforce performance standards without acknowledgement of the employee’s self-interest, the result is compliance.  The employees will choose the easiest way of meeting the bare minimums to preserve their job.  They do not choose to perform.  They do not go above and beyond.  They do just enough.

However, when an organization views its talent as central to their success, something different happens. They understand that one system of enforcement doesn’t work.  Leadership seeks to discover why each employee is there.  And, they align the why we do what we do to the why do you do what you do.

The result of the alignment of a true self-interest with the organization’s goals is a realization by employee that the path of least resistance is actually performance.  Work becomes fun.  Rather than doing just enough, the employee does more. 

It comes down to listening, understanding the workforce, tying individual success to organizational success, and staying true to it.  When it works and the employee believes it will continue, the organization achieves sustainability.  And, a funny thing happens.  Employees stick around.

Watch for parts 2 and 3 coming soon!

Joshua Birkholz

Bentz Whaley Flessner