Post on 02-Dec-2014
description
Strategy – useful tools that really work
Simon Burne
August 2010
Objective
• To share a set of easy to use tools to help you to make fundraising strategies that work
Four key drivers
Thinking inside the box
80% Rule: Roughly right – not precisely wrong
What is Strategy?
A structure
A list of things to do
Tactics
A big document that decorates your shelf and gathers dust
It is not
Petronius Arbiter 210 BC
We trained hard… but it seemed that every time we
were beginning to form up into teams, we would be
reorganised. I was to learn later in life that we tend
to meet any new situation by reorganising and a
wonderful method it can be for creating the illusion
of progress, while producing confusion,
inefficiency and demoralisation
“I always leave my strategy on the train in the hope that a competitor
will pick it up and believe that’s what we’re really going to do”
Denis Stevenson
“However beautiful the strategy, you should occasionally look at the
results.”
Winston Churchill
“Strategy without tactics is the slowest route to victory. Tactics
without strategy is the noise before defeat.”
Sun Tzu 500 BC
“A satisfied customer is the best business strategy of all.”
Michael Leboeuf
donor
fundraising
Where we are now
Our vision
Our missionOur strategy
What is Strategy?
External
Factors
•Objectives
•Resources
•Plans
•Budgets
Monitoring
In times of crisis…
The horizon gets closer
So strategies get shorter
Too much to deal with!
Risk Management
Death by risk aversion
Bright idea Risk assessment Final product
Electricity
– oo erBright lights
- aargh
Non-
recyclable
Tut tut
Broken
glass –
danger!!
Risk Management
Paralysis by analysis
Strategic options Internal analysis No change
How do we escape?
Or… 10 things to do with a box
1. SWOT
Strengths Weaknesses
Opportunities Threats
Internal Bridges & Barriers
Internal Bridges
• Processes that work
• Key allies
• Core skills and competencies
• Networks and contacts
• Beneficiaries
Internal Bridges
• Recognise them
• Celebrate them
• Strengthen them
• Use them
• Learn from them
Internal Barriers
• Lack of expertise
• Finance
• Service Staff
• Lack of information
• Poorly-defined need
• Lack of strategy
• Processes that don’t work
• No resources
Internal Barriers
• Form alliances to overcome them
• Work around them
• Find a way through them
• Accept your limitations
2. PEST
Political Economic
Social Technical
External Market Factors
Focus on top 3-4 key external factors which could have a genuine major impact (+/-) on fundraising success.
Invest resources in these areas = do a few things well.
External Market Factors
Develop scenarios for each key factor:• In-depth knowledge of factor
• Predict range of possible outcomes
• For each outcome:– What would be impact on your fundraising for
each?
– What action would you need to take to maximise benefits/minimise problems?
– What resources will you need?
– How will you monitor the situation?
– How will you be prepared to respond quickly?
Benchmarking
Develop links with similar NGOs, share information, monitor position
Income:cost ratios of each activity
Comparative size of each activity
Comparative growth of each activity
Mystery shopping
3a. Boston Matrix (Products)
Product Development Cycle
Need
Audience
Product
Evaluate Innovate!
Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
Building your fundraising
£
Time
CASH COWS DEAD DOGS
Renewals
Special Appeals
Legacies and
Planned Gifts
Internet
Upgrade
Mail Acquisition
Annual Giving (High Value)
Major Donors
PROBLEM CHILDREN
Foundations
Merchandising
DRTV Acquisition
Monthly Giving
Direct Dialogue
Boston Matrix
CASH COWS DEAD DOGS
Renewals
Special Appeals
Legacies and
Planned Gifts
Internet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
Boston Matrix
PROBLEM CHILDREN
Foundations
Merchandising
DRTV Acquisition
Monthly Giving
Direct Dialogue
RISING STARS
Value (ROI) vs. Volume (potential)
value
volume
PROBLEM CHILDREN
Internet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
1
2
3
value
2
3b. Boston Matrix (Problems)
MysteronsDevils
Sacred
cows
Sad
sacks
Level of
impact
+
-
Level of
understanding
+ -
3b. Boston Matrix (Problems)
Devils– Focus on the four biggest
– Develop clear strategies for neutralising
Mysterons– Watch closely
– Be ready to take action
Sacred cows– Need change at the very top
– Learn to work round them
Sad sacks– Safely ignore
3c. Boston Matrix (Competitors)
Rising Stars Problem Children
Cash Cows Dead Dogs
Potential threats
Learn from mistakes
Ideas to improve
Best practice
Ideas to copy
Real threats
Competitors
What I will do
with the
information
What I want to know The questions I need
to ask
How can I find this
out?
Develop new
products
New ideas or products
from my competitors
that I could use/adapt.
Which new products
are being developed
or tested? How well
are they performing?
Speak to them,
share information.
Mystery shopping.
Research.
Be first with
my appeal for
xxxxx
Which competitors also
raise money for xxxx.
Timing.
What are their plans
for launching an
appeal for xxxx?
Speak to them,
share information.
Improve
performance
of my current
products
Ways in which
competitors are offering
my products more
successfully.
How well are their
current products
performing compared
to mine? What are
they doing differently
to me?
Mystery shopping.
Financial reports.
Conference
presentations.
Research.
mark
et/
au
die
nce
curr
ent
new
current new
offer/product
existing
product
new products to
existing supporters
The Ansoff Matrix
taking them to
new audiences ? new products for
new supporters?
mark
et/
au
die
nce
curr
ent
new
current new
offer/product
Direct
Dialogue
DRTV
Events
On-line
Upgrade
Campaign action
Special Appeal
?
E.G. Monthly Giving
Different Audiences from Different Media
ABC1s - traditional core
supporters
Face to facemail, door drop, inserts
DRTV
Income
Age
On-line
Telephone
5. Investment Sailing Boat
Level of risk
Net return
Market
potential
Market
understanding
5. Investment Sailing Boat
Level of risk
Net return
Market
potential
Market
understanding
Goals & Objectives
• Important to set targets.
• Objectives can divide as well as motivate.
• Objectives need to be set that are cross-organisational.
• KPIs should be few, and not all financial.
• Remember the Rule of Four
Goals & Objectives
6. Balanced Scorecard
Financial Processes
Supporters/
Stakeholders
Learning
and growth
Vision &
Strategy
• one objective per quadrant –max 4
• keep the objectives SMART
Objective-Setting
SMART• Strategic
• Measurable
• Achievable
• Realistic
• Time-limited
Objective-Setting
SMART• Scary
• Mouthwatering
• Ambitious
• Rare
• Team-building
7. Brand positioning
Modern
Old-fashioned
Conservative Innovative
Where we want
to be
Where our
supporters
think we
are
8. Strategic Risk Analysis
Finances
ProcessesCulture/skills
StakeholdersImpact
Pro
bab
ility
9. Vulnerability Index
Insignificant
Very important
Relatively
safeVery
vulnerable
10. Ease of implementation vs. impact
ease
impact
Must haves
Quick wins
Sinks
Low-hanging fruit
PROBLEM CHILDRENInternet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
Last thoughts…
Ref.: Anais Nin
“We don’t see things
as they are.
We see them as we are”
“If we don’t make utter fools of
ourselves from time to time,
we grow smug - that is,
we do not grow at all.”
Ref.: Tom Peters
Innovation
‘We are taught to solve problems not to recognise opportunities.’
“Every act of creation
is first of all an act of destruction”
Ref.: P. Picaso
“We’ve made a lot of mistakes. And we’ve been very lucky at times. Some of our products are things you might say we’ve just stumbled on. But you can’t stumble if you’re not in motion.” R.Carlton
Words used by a boss to a new employee on their first day at work
A culture of successful risk
‘If you don’t screw
up at least once in
your first year with
us, you aren’t trying
hard enough.’
‘There is no formula for success. But there is a
formula for failure, and that is trying to please
everybody.’
Nicholas Ray, Film Director
The Formula for Failure
Henry Ford
The truest word…
Whether you believe
you can or whether you
believe you can’t,
you’re right
The two most important words in
fundraising