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Create A Culture Through Action, Not Words
Posted in: Blog, Non-Profits, Power of Transparency by Marco Puccia on May 1, 2010
If you’re an executive, manager, entrepreneur (especially social entrepreneur), you’ve probably thought about “creating cultures”. How do I create a culture of innovation? How do I create a culture of honesty? How do I create a company culture like Google? It’s definitely something I’ve thought about a lot!
I published a blog post the other day quoting an excerpt from the book “Rework” by the founders of 37Signals. Here’s another excerpt that stood out and I think applies to the work that we all do (emphasis added):
You don’t create a culture. It happens. This is why new companies don’t have a culture. Culture is the byproduct of consistent behavior. If you encourage people to share, then sharing will be built into your culture. If you reward trust, then trust will be built in. If you treat customers right, then treating customers right becomes your culture.
Culture isn’t a foosball table or trust falls. It isn’t policy. It isn’t the Christmas party or the company picnic. Those are objects and events, not culture. And it’s not a slogan, either. Culture is action, not words.
As we create the change we want to see, we must lead by example! Stop writing 50-page policies that nobody is going to read, much less embody! Demonstrate through your actions the culture you want to create, and people will follow!
If you haven’t read it yet, check out the book Rework — it’s really great!
Rework Excerpt: Own Your Bad News
Posted in: Blog, Non-Profits, Power of Transparency by Marco Puccia on April 29, 2010
I just finished reading Rework, written by the founders of 37Signals. It’s a brilliant book all about re-thinking how we approach work and business — something I’m passionate about, myself! I read this passage on the bus this morning and wanted to share it with all of you! It’s all about “Owning Your Bad News”:
When something goes wrong, someone is going to tell the story. You’ll be better off if its’s you. Otherwise, you create an opportunity for rumors, hearsay, and false information to spread.
When something bad happens, tell your customers (even if they never noticed in the first place). Don’t think you can just sweek it under the rung. You can’t hide anymore. These days, someone else will call you on it if you don’t do it yourself. They’ll post about it online and everyone will know. There are no more secrets.
People will respect you more if you are open, honest, public, and responsive during a crisis. Don’t hide behind sping or try to Keep your bade news on the down low. You want your customers to be as informed as possible.
[...]
Here are some tips on how you can own the story:
- The message should come from the top. The highest-ranking person available should take control in a forceful way.
- Spread the message far and wide. Use whatever megaphone you have. Don’t try to sweep it under the rug.
- “No comment” is not an option.
- Apologize the way a real person would and explain what happened in detail.
- Honestly be concerned about the fate of your customers — then prove it.
These principles certainly apply to nonprofits and for-profits alike. For nonprofits, sub-out “customers” for “donors” or “stakeholders”. My friend Kjerstin Erickson, who runs a nonprofit called FORGE, has been a strong advocate for what she calls “Radical Transparency” — a term I’ve adopted into my own vocabulary. Check out this cool WSJ excerpt on her story! Transparency and honesty are the brick-stones that pave the way to relationships built on trust – the strongest kind of relationship you can have! When your customers, investors, donors, and/or stakeholders trust you, they will be by your side through thick and thin. There’s nothing better than having an army of loyal supporters!
Do you have a story of how “Radical Transparency” or “Owing Your Bad News” affected your organization? Please share it in the comments below!
Non-profit Boards: Lessons for the Gatekeepers
Posted in: Blog, Non-Profits by Anand Chandrasekhar on December 4, 2009
Gone are the days when all that non-profit board members had to do was go through the motions at board meetings and reward themselves with a nice luncheon after. Limited funds and a plethora of NGOs competing for them, has meant that stakeholders (both within and outside non-profits) are increasingly demanding more from their board members. Having a star board member who is renowned and respected is all well and good but NGOs now expect active contribution that goes beyond mere ‘pulling power’.
Nonprofits and Lobbying: Wolf in sheep’s clothing?
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 24, 2009
Many non-profits spend a significant amount of time and resources on influencing policy. To some this a means to an end while for others it is the end itself. Organisations may passively contribute to policy making through conventional channels in the decision-making process as legitimate stakeholders. This is generally through consultations, serving on boards and committees and as information providers. The other method used to influence policy is through the media or by pro-active engagement with decision-makers themselves. It is this second category that is raising some issues concerning non-profit accountability.
A Breakdown of Non-profit Fraud: A Few Bad Apples or a Systemic Malaise?
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 18, 2009
Non-profit fraud has been the proverbial elephant in the room in the charity sector. Everyone within the sector knows it is happening on some level but most dismiss it as a case of a ‘few bad apples’. Ironically, charities could risk negative publicity for revealing internal fraud. Many prefer to avoid discussing fraud for fear it could damage their reputation instead of earning accolades from donors. Weak internal controls, lack of financial expertise and heavy reliance of volunteer boards make non-profits more vulnerable to fraud than businesses. Employees guilty of fraud are seldom punished severely and are usually encouraged to resign instead of being dismissed outright. This fraud indifference is harming the non-profit sector as credibility takes a beating when blatant incidences of fraud do become public knowledge.
A report published in the Nonprofit and Voluntary Sector Quarterly aims to shed light on the extent of fraud in the charity sector. Titled ‘An Investigation of Fraud in Nonprofit Organizations: Occurrences and Deterrents’, the report uses empirical research approaches to study the nature and extent of fraud in the non-profit sector. Unlike previous empirical studies that relied only on newspaper articles on fraud for statistics, this report uses data from 508 cases of occupational fraud obtained from the Association of Certified Fraud Examiners (ACFE).
The Art of Giving: Lessons for Foundations
Posted in: Blog, Non-Profits by Anand Chandrasekhar on November 11, 2009
Philanthropic giving through individuals and foundations has been a major source of funding for small and medium non-profits especially at the local level. These charities usually lack the fundraising machinery and global reach to access the big funds available through multilateral institutions. Thus foundations continue to occupy an indispensable niche in the charitable giving sector. However, foundations do face some criticism for the way they operate. They have been accused of adopting bureaucratic and short sighted approaches to giving which are often tailored for their own needs rather than those of non-profits or the public. Many believe that the role of foundations should not be limited to simple disbursement of funds. Foundations have a responsibility towards creating a more sustainable and accountable non-profit sector as they themselves rely heavily on non-profits for delivering results. It is in their best long-term interest to invest in a strong non-profit delivery system.
The Charity Pipeline: Fund-raising, Transparency and Efficiency
Posted in: Blog, Non-Profits by Anand Chandrasekhar on October 30, 2009
A persistent thorn in the flesh that can adversely affect non-profit transparency is the percentage of overhead spent on fundraising. While it is often true that NGOs need to spend money to make money, it has to be balanced with what donors regard as acceptable and necessary. Charities are constantly juggling with finding innovative ways to raise funds while simultaneously trying to maximise the percentage that goes directly to the cause. Getting the balance wrong could undermine credibility and in the non-profit universe, credibility is everything. In addition, in a competitive environment, spending efficiency is usually a key criterion for determining donor confidence. So how do charities decide on an optimum spending strategy?
Dr Wendy Scaife is a senior research fellow in the Australian Centre for Philanthropy and Non-profit Studies at Queensland University of Technology and conducted the Giving Australia study in 2005. So she does know a thing or two about donors and charities. In an article for the Australian newspaper The Age, she shares her experiences on striking the right balance. Some key messages are;
- Donors may ask for the impossible: Dr.Scaife acknowledges that donors may have unreasonable expectations from non-profits. Many want charities to be entirely volunteer run and most felt that not more than 10% of their donations should be spent on fund-raising and administration.
- Fund-raising spending is an investment: Dr. Scaife agrees that charities need to spend more to attract more funds. Competition from other charities means only the most innovative proposals/appeals/campaigns have a chance of impressing jaded donors.
- No hidden costs: She warns that donors are “cranky” about not being told the costs of fund-raising.
- Communication is key: She also say that charities turn into “woeful communicators” when it comes to transparency in spending.
- Donors are usually pragmatic: Donors are reconciled to the fact that a part of their donation goes into making their charity financially secure.
- Transparency up front: What donors expect is that non-profits be transparent about where the different parts of their dollar goes.
- Optimise fund-raising strategies: Dr. Scaife believes that charities must grab opportunities to embrace efficient strategies. For example, she states that donors who plan their giving donate four times as much as those who give spontaneously.
Dr. Scaife’s article can be accessed at http://www.theage.com.au/opinion/society-and-culture/in-the-real-world-charities-need-to-spend-money-to-make-it-20091026-hgll.html
Independent verification: Defending non-profit accountability
Posted in: Blog, Non-Profits by Anand Chandrasekhar on October 28, 2009
Most non-profits seldom have anything to hide from donors in terms of financial irregularities. You rarely hear of the sector being accused of corruption of the kind associated within business and government circles. A lack of vested interest is the very cornerstone of the legitimacy that enables non-profits to do what they do. Any hint of corruption is a sure-fire path to self destruction for a sector that is often entrusted with rooting out corruption in the public sphere itself. That is not to say the non-profit sector is without its troubles. Corruption, dishonesty, misinformation, careerism, prejudice, bias and power struggles are found here too. However, unlike other sectors, the penalties far outweigh any potential benefits of indulging in unethical behaviour.
Investment Metrics vs. Storytelling
Posted in: Blog, Non-Profits by Marco Puccia on October 26, 2009
I had a great conversation last week with Karim Harji, a Kenyan from Mombassa who now lives in Toronto doing social investment. We got on the topic of social investments and metrics vs. storytelling. Karim made the point that the nonprofit sector has relied heavily on storytelling as a means to advance their cause and raise funds. This morning I was reading this blog post, “Stories Can Change the World”, where the author writes, “Storytelling is the most important tool for any innovator. It is the best way to create emotional connections to your ideas and innovations.” Read more…
Transparency in the Non-Profit Sector
Posted in: Blog, Non-Profits by Marco Puccia on
Mario Morino of Venture Philanthropy Partners recently published an article on the growing pressure for transparency in the non-profit sector. He starts off referencing Joel Fleishman’s book, The Foundation: A Great American Secret, where the nonprofit sector’s lack of transparency is cited as its greatest liability. Morino points to a growing force that is holding institutions accountable and demanding increased transparency: Read more…