Leading Companies for Good by Alice Korngold

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First Lady: OMG, No Brand Yet?!

A smart, dynamic woman, with a law degree and professional experience, 45 years old and raising a family, newly arrived First Lady Michelle Obama has an opportunity to make her mark on any number of important domestic and global issues.  In her dauntingly demanding itinerary, she has visited classrooms and welcomed school children to the White House, addressed challenges facing women in balancing family, work, and life, served food in homeless shelters, met with American military families, and raised awareness on environmental issues, especially the organic food and local farming movement. 

Engaging herself in a multitude of vital matters, the First Lady has helped spotlight a variety of topics for the world to see and learn.  She is bearing witness, telling the story, and taking action.

In our fashion-window, Madison Avenue world, some critics complain that Michelle Obama has not branded herself with a cause.  Let’s learn from our new heroine in the White House to explore and learn through service, and find ways to make valuable contributions without being obsessed with image.

08:49 pm | 0 recommendations | 1 comment

UpMo for Leadership Development: Volunteering is the Yellow Brick Road

UpMo (for upward mobility), recently featured here, is an online service that promises to help you accelerate your career success.  As a lifetime volunteer, and a matchmaker for business volunteers and nonprofit boards, I see volunteering as an opportunity for people to make valuable contributions, while they also learn, grow, and advance themselves, especially as leaders.

You develop as a leader through personal experience.  This can even begin at a young age.  Children can engage in valuable service, including building awareness among their peers, and yes, even fundraising, for issues related to the environment, global health, and disaster relief, to name a few.

People grow as leaders through a variety of volunteer experiences including team projects, tutoring and mentoring.

Talented business professionals and executives often have extraordinary opportunities to develop as leaders through nonprofit board service.  Through boards, they can contribute valuable strategic acumen, while engaging with peers in helping to envision an organization’s future potential; focus the organization on key, high-impact programs and services; determine reasonable outcome metrics to build support; build and make the compelling case for support; create ambitious revenue models; and achieve success.

I just came from an inspiring event sponsored by the American Red Cross Greater New York (ARC/GNY).  A woman told us how she saved a stranger’s life because she was trained in CPR.  The story drove home the point that, although the organization needs staff to be the engine, it’s volunteers who have the exponential impact in saving lives.  The people around my table were donors.  And the man next to me, who chaired two other nonprofit boards, asked Terry Bischoff, ARC/GNY’s CEO, about youth volunteering for his teenage daughter.

We can all participate in valuable service, while developing ourselves through a variety of volunteer experiences - including mentoring the next generation as they embark on the Yellow Brick Road.

08:38 pm | 0 recommendations | 1 comment

Getting a Job in the Nonprofit Sector: Making Your Move from Corporate

“Definitely consider making the transition from the for-profit to the nonprofit sector. Your skills are transferable, and it definitely feels good to do good. But don't assume that it is exactly the same; social impact is a lot harder to measure than profitability, and the capital raising process (i.e., fundraising) is more complicated and less streamlined than in the for-profit world,” explains Stephanie Cuskley, who was recently named CEO of NPower. Previously, Cuskley had an esteemed career with JPMorgan Chase; she also serves on corporate boards.

A few who made the transition in 2008 include Luis Ubinas, President, Ford Foundation, formerly at McKinsey & Company; Gail McGovern, CEO and President, American Red Cross, formerly at A T & T and Fidelity Investments; and Jon Fish, Chief Financial Officer of Ad Council, fresh from CKX, Inc.

People who made the transition a few years earlier include Anitra Gerald, VP and COO, East River Development Alliance, formerly V.P of Operational Risk Management, JPMorgan Chase; Ariel Zwang, CEO, Safe Horizon, who started her career at BCG; Deborah Vesy, President & CEO, Deaconess Community Foundation, who built franchises for Weight Watchers and was an audit manager for Ernst & Young; Mike Curtin, CEO of DC Central Kitchen, who held management positions with the Hay Adams and McCormick and Schmick’s and then ran his own restaurant; and Natalie Leek-Nelson, CEO & President, Providence House, who had been Director of E-Commerce for a Midwest division of MCSi.

Their advice about seeking a job in the nonprofit sector:

• Zwang: “To make your resume appealing, list significant volunteer experiences or board memberships. Such experiences are crucial evidence of a person's commitment to nonprofit work.”
• Gerald: “Invest the time in educating yourself about the sector; getting an MPA from NYU was useful for me. Volunteer with organizations doing work that is aligned with your career interests. The nonprofit sector is very diverse; speak with friends and friends of friends who work in the sector so that you get a good sense of the variety of organizations and roles that exist.”

Their advice about making the transition:

• Curtin: “Bring everything you’ve learned in business, or in life, to the nonprofit world. Just because we label organizations “nonprofits” some people think that the normal rules of business and commerce don’t apply. Nothing could be farther from the truth. When I had my restaurant, I was continually asking, ‘What will make people come to my brunch, my dinner, my happy hour instead of the other guy’s?’ Now I’m asking. ‘What will get people to support our programs as opposed to someone else’s?’ The answers are really the same: better product, better service, better message. I’m still in the entrepreneurial world. I’m just working on a different product that happens to be changing lives. I always felt very good about selling food and an entertainment experience; but now I’m selling something that can change lives forever.”
• Vesy: “I have found that my financial and operational experience has proved invaluable in my ability as a foundation funder to establish meaningful relationships with and provide assistance to nonprofits which have to simultaneously balance the heart (mission) and mind (business model) of their agency. My background as a CPA in public accounting taught me how to, via a review of financial statements, understand the entirety of services and programs offered by a nonprofit, as well as assess its financial health. In addition, my experience running a for-profit business brings an ability to empathize and appreciate the joys and challenges of managing personnel, operations, and balancing budgets. I cannot imagine being effective in my position as a foundation president without these experiences and skill sets.”
• Leek-Nelson: “Unlike many corporate businesses, decision-making at a nonprofit does not occur by one person at the top. Rather, it’s a constant building of consensus, collaboration, and concession by the board, staff, donors and clients to effectively reach decisions and define strategy. This can be time consuming and frustrating but has profound power in its diverse analysis and rich solutions. In my experience, this is the most elemental difference between the for-profit and nonprofit sectors.”
• Leek-Nelson: “If you like to roll up your sleeves, try many different things, manage multiple tasks, assist other members of a team, welcome to a nonprofit! If you like routine, watch what’s on your plate or in your job description without ever leaving your silo, this is not the place for you. It’s about being an agile team player with a commitment to the nonprofit’s mission.”

My advice about making the transition:

• Similar to my advice to business people whom I train and place on nonprofit boards. See “Making the Translation: When Business People Join Nonprofit Boards.”

Where to look for nonprofit jobs:

• Idealist
• Craigslist
• Chronicle of Philanthropy
• And as with everything, the best way is through personal networks and relationships.

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AIG: Hey, How About Bonuses for Nonprofit Executives?

If the argument for bonuses is to attract and retain talent, and motivate high achievement, then why not use bonuses to drive the performance of nonprofit executives as well?

Makes sense because:

• Nonprofit executives need to be compensated appropriately in order to attract and retain the best talent, especially to lead organizations to be strategically and financially successful, with high-impact programs and measurable outcomes.
• Although they want to be compensated fairly, the executives who lead nonprofits are driven to a great extent by the mission, not by the money; bonuses miss the boat…they degrade the drive that is fueled by passion.

Bad idea because:

• It’s difficult to create the right metrics to measure success for the nonprofit CEO bonus since the goal is not profits; there’s a high risk of creating the wrong metrics; and the wrong metrics will create incentives that will pervert organizational behavior and good will. 
• Fundraising and revenue development to achieve financial success is a team effort, involving staff and board members. So if the CEO is rewarded for dollars raised, how will foundations and philanthropic donors or staff react when the CEO is essentially getting a piece of the action? 
• The drive to attain short-term and possibly less substantive outcomes can undermine more meaningful purposes if that’s where the reward lies. 

Recommendations:

1. Nonprofits need to be run by executives who are highly strategic, effective in resource development (fundraising in addition to social ventures), and driven by a passion for the mission.  So nonprofit boards should provide fair and reasonable compensation packages in order to attract and retain outstanding candidates.
2. Boards need to consider the costs to the organization of having to replace an excellent CEO if the board fails to create a suitable compensation package.
3. When seeking to hire a nonprofit CEO, boards should consider the comparable skills and qualities that they would want in a for-profit CEO – the enterprising nature, business skills, and leadership ability, as well as interpersonal and communications skills – and factor that into to creating a competitive compensation package.
4. In order to comply with governance practices (“intermediate sanctions”), boards should gather data on salaries of comparable organizations and also consider engaging compensation advisors, while still keeping #3 above in mind. 
5. Boards should work with their nonprofit CEOs to create clear expectations for the CEO’s annual performance based on the organization’s vision and revenue model, and conduct annual performance reviews of the CEO that are respectful and productive.
6. Boards should conduct annual board assessments, since the board’s and CEO’s performances are inter-related, and their mutual effectiveness drives organizational success. ("Strengthening Leadership" ch. 8) 

In for-profits, bonuses can be more easily tied to measurable performance indicators, and the drive is for profits.  But as we see with AIG, even that’s not so straightforward.

With nonprofits, the bonus approach is counter-productive.  The best practice is fair compensation.

[See also recent Fast Co. post on "Why Incentives Are Irresistible, Effective, and Likely to Fail."]

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Jon Stewart vs. Jim Cramer Smackdown: Lessons for Nonprofit Board Members

The running exchange between Stewart and Cramer over the role of the media as cheerleaders versus watchdogs gives something for nonprofit board members to think about.

On the one hand, as board members, they are highly committed advocates, donors, and fundraisers for the organizations they have chosen to devote themselves to.  They choose the organizations they ardently believe in, and as board members, they are the sales force.

On the other hand, it is also their duty as board members to be watchdogs – to ensure that the organization is fulfilling its ethical and financial responsibilities, and that the organization is constantly challenging itself to be relevant, excellent, and high-impact in its mission and programs. 

Like the media, board members have a responsibility to ask the tough questions.  Candid, honest situational assessments are necessary in order to create solutions.  But unlike reporters, board members are committed to continue beyond asking the tough questions; board members must actively advance the nonprofit’s mission.

08:30 pm | 0 recommendations | 1 comment

Nonprofits Want Your Time and Money, and You Want to Invest Wisely

Your inbox overflows with appeals for contributions, invitations to galas, and volunteer projects.  In addition, if you are a business executive or professional with strategic expertise and some financial success, there are nonprofit boards that would love to have you join.  Nonprofits are competing for you.

In my experience in working with corporations that invest in nonprofits, business volunteers, and the nonprofits that seek their support, here’s what I see:

The nonprofits that win business volunteers:

• Create volunteer opportunities that meet organizational needs and appeal to volunteers
• Create clear position descriptions (for example, tutoring or mentoring)
• Screen and select qualified volunteers
• Provide excellent training, mentoring and support to volunteers
• Recognize and thank volunteers
• Get feedback from volunteers, and ensure that the experience is rewarding and positive

The nonprofits that win teams of volunteers from businesses:

• Ask and understand what the business and their employees want out of the team volunteer experience
• Create projects that provide value to the organization and its clients, and that will also be rewarding and positive for the business volunteers
• Provide the staff preparation, materials, and support to make projects successful
• Recognize and thank volunteers (even providing plaques and/or framed photos for companies to proudly display in their lobby…good public relations for all concerned!)

The nonprofits that get the best board members from businesses:

• Have effective CEOs to run the organizations
• Articulate clear and reasonable expectations of board members
• Can show that other board members are engaged and supportive, especially board leaders
• Provide relevant information to board candidates, related to board governance, the organization, and financials
• Conduct business-like board meetings focused on key strategic issues

The galas and special events that are most successful: 

• Make donors and volunteers feel so inspired about the mission, the programs, and the beneficiaries, that you want to give and do more
• Are social, meaningful, and uplifting! 
• Make donors and volunteers feel appreciated

You are most likely to make a personal contribution if:

• Someone you know makes a personal request  
• Your friend or colleague invites you to an event to see and experience the work of the organization
• You are thanked and appreciated, especially in a way that makes you smile 

And in all cases, donors and volunteers want to see how their investment of time and money helps the organization to accomplish results in making the world a better place.

05:52 pm | 0 recommendations | 1 comment

Choosing a Nonprofit Board: The Elevator Speech

Last November, I listed 5 factors that board candidates consider in choosing a nonprofit board. In having trained and placed hundreds of business executives and professionals on nonprofit boards, and also having trained and mentored colleagues and protégés to place business people on boards, I have stressed the vital role of board members being unrelenting advocates for their organizations, generous donors, and enthusiastic fundraisers.

As a result, I have observed candidates use a thoughtful criterion in making their ultimate board choice: creating the elevator speech in their heads and practicing it among their family and friends. If they can’t sell the organization, they don’t want it.

In ushering board candidates through the process, I like to help expand their awareness of the realm of possibilities of nonprofits, and then help the candidate narrow down options based on a better understanding of the organizations and their boards. Candidates are primarily interested in knowing what value they bring to the table to help advance the organization.

But when it comes down to making the final choice, candidates not only decide if this is where they want to commit their own time, expertise, and money, but whether they can effectively promote the organization in their daily lives among their friends and business colleagues in order to build additional support.

Off to a great start I’d say.

09:22 pm | 0 recommendations | 2 comments

Teach For America: It’s Really About an Alumni Movement

Nearly 20 years old, Teach For America (TFA) has prepared a force of 14,000 TFA alumni “to create massive and systemic changes to solve the inequities in education for students in low-income communities,” according to Wendy Kopp, founder and CEO, TFA.  “Our alumni who work directly in education, like Michelle Rhee, DC Public Schools Chancellor, as well as alumni who work in business, technology, law, medicine, and public policy, are agents for education reform.  Having worked directly in low-income schools, our alumni learned first-hand what is necessary for success for students in America’s most challenging classrooms.”

Educational disparities exist because children in low-income communities face extra hardships, including inadequate healthcare, poor preschool programs, and often stressful home lives, and because the schools they attend don’t have the capacity to put students facing these extra challenges on a level playing field. If you think that our nation will be stronger and the future better by educating all students to their greatest potential, then how do we get from here to there?  

“There are no silver bullets to success,” says Kopp.  “Leaders in every sector understand that.  The answer is not one thing – like computers for every child. You attain success through the hard work of building a strong culture, talent at every level, and accountability.”

As a new vehicle to engage alumni, Kopp announced that TFA is launching a series of leadership development initiatives, among them a board training and placement program to prepare its alumni for boards of nonprofit organizations and charter schools.  As my readers know, I am a long-time proponent of effective nonprofit board service to help organizations to envision their greater potential and build and achieve the revenues that are needed for success.  Who better than TFA alumni to power organizations and charter schools – given their personal experiences with TFA along with the variety of their positions and networks in the community. 

For leadership development aficionados, Kopp sees “teaching as leadership – setting a vision of where you want your kids to be at the end of the year, then motivating them and their parents to work with you to achieve the goals, and being purposeful and relentless.  As a teacher, you start by asking yourself – ‘what will make a meaningful difference in these students’ lives this year?’”

Furthermore, “our alumni who are most successful in the education-reform movement were the most successful teachers,” explains Wendy.  “People who excel with their kids prove to be leaders in the long-term.”

The visionary and driver that she is, Kopp says with staunch conviction that it will take tens of thousands of TFA alumni to create the systemic change that is needed.  She says TFA is just beginning.

photo credits to Jean-Christian Bourcart

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DC Central Kitchen Has the Secrets to Success for Nonprofit Entrepreneurship

“Why are people going to come here and not the other place,” was the question that haunted Michael F. Curtin, Jr., Chief Executive Officer of DC Central Kitchen when he used to run a restaurant.  The same question drives him today as he seeks to build support for DCCK.  With backgrounds in the hospitality industry, Curtin and the Founder and President of DCCK – Robert Egger – learned the basic values that are key to attracting supporters for their important mission, even in these tough times. 

DCCK – “Combating hunger.  Creating opportunity.” – provides a food recovery program that prepares and distributes 5,200 meals daily (mostly dinners) to hungry individuals at 12 shelters and dozens of transitional housing centers and social services agencies.   DCCK also addresses the root causes of hunger with its Culinary Job Training Program, preparing unemployed, underemployed, previously incarcerated persons, and homeless adults for careers in the food service industry.

Listening to Curtin, and thinking about the multitude of nonprofits I visit day in and day out, and the donors I meet, the keys to successful fundraising are glaringly apparent:

1. Donors give to success:  People, companies, and foundations give where they see good solutions and effective implementation.

2. People are focusing their giving: The economy is providing people the opportunity and excuse to narrow down their giving to the causes they care about most and the organizations that are most effective.  (DCCK saw a spike in giving in December.)

3. The organizations that succeed are the ones that produce high quality services and programs….mediocre will not make it in this economy (recall Curtin’s question, “Why are people going to come here and not the other place?” 

Curtin and Egger have also been driven to build a more sustainable revenue model increasing the fees for services portion of their organizational income.  DCCK generates fees from businesses through its Fresh Start Catering Program.  I can attest to having toured the most immaculate industrial kitchen I have ever seen, and to seeing scrumptious food, most of which is locally grown (not only fresher, but also at 33% of the cost).

The energy and vitality of the Center is palpable. Volunteers work side-by-side with graduates and students from the Culinary Jobs Training Program.  Curtin says that the graduates are “empowerment billboards” for the Training Program students who can see what is possible.  And since the volunteers are working under the leadership of experienced managers who are graduates of the Program, the volunteers (often high school and college students and business volunteers) are learning about the power of the DCCK model and its network of organizational partners.

DCCK also has a national network of college campus programs called Campus Kitchens.

03:18 pm | 0 recommendations | 2 comments

Increase Your Sex Appeal: Volunteer Now!

Turns out that chugging down vast volumes of beer is actually not the way to turn on potential mates. In fact, it’s acts of kindness and altruism that will do the trick.

In three studies of more than 1,000 people, Dr. Tim Phillips and his fellow researchers at the University of Nottingham found that men and women placed a high level of importance on altruistic behavior in choosing a partner.  Women rated altruism even higher than men as a sexually desirable trait in mates.  The study was published in the British Journal of Psychology.

The “mate preference towards altruistic traits” (MPAT) scale was based on a matrix of the following nine items:

1. Volunteered to help out in a local hospital

2. Volunteered to help without pay on a week’s holiday for disabled people

3. Regularly helps an elderly neighbor

4. Ran the London Marathon to raise money for a good cause

5. Once dived into a river to save someone from drowning

6. Donates blood regularly

7. Climbed a tree to rescue a neighbor’s cat

8. Once cared for a stray dog injured by a car

9. Helped clear people away from a suspect package found in an airport

How does your sex appeal rate according to the MPAT scale?