How to Build Alliances that Work

How to Build Alliances that Work

Philanthropy Leadership Council

Jennie Light

Senior Analyst


[email protected]

mailto:[email protected]

©2016 The Advisory Board Company • advisory.com

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Jennie Light

Senior Analyst


[email protected]



5

At the Intersection of Health Care and Fundraising

Serving as Thought Partners to Philanthropy Leaders

Source: Philanthropy Leadership Council interviews and analysis.

Today’s Imperatives for Hospital and Health System Philanthropy Enterprises

1

2

3

4

5

6

Major gifts strategy for care transformation priorities

Donor-investor approach to acquisition and long-term engagement

Robust, high-return grateful patient initiatives

Agile, active, and accountable clinician and volunteer corps

High-functioning frontline fundraisers

Streamlined, strategic allocation of resources


6 6

2 Clinicians

1 Volunteers

3 Executives

Road Map Three Key Constituencies to Engage


7


A New Vision for the 2020 Board

Characteristics of the 2020 Board

Empowered

Empowered to…

• Tell a peer about the

institution’s priorities

• Ask for a major gift

• Tell the institution’s

story

• Be an advocate

• Suggest change

• Hold one another

accountable

Scoped

Scoped in terms of…

• Committee structure

• Full board

responsibilities

• Individual trustee

responsibilities

• Funding priorities

• Meeting content

• Meeting time

Agile

Agile around…

• Lifespan of

substructures

• Substructure focus

and purpose

• Responsiveness

to current needs

• Trustee tenure

and retention

• Strategic objectives

Accountable

Accountable for…

• Fulfilling personal

requirements

• Knowing when to

step down

• Maintaining priority

alignment

• Ensuring peers,

full board meet

expectations


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Blueprint to Achieve the 2020 Vision

Time

Cum

ula

tive

Va

lue

Enable Independent

Action

Streamline

to Essentials

Hardwire Mutual

Value

Flex Around Top

Funding Priorities

Four Steps to the 2020 Board


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Governance Duties of

Best-in-Class Boards

Streamline to Essentials


Pare Down Governance to the Bare Minimum

Approve the overall

budget; determine

whether audit is needed

Recruit and train new

trustees; ensure volunteers

meet expectations

Desired Volunteer Time Allocation

20% 80% Major gifts

fundraising

Governance

and trusteeship

Two Essential Governance Committees

• Executive Committee

• Trusteeship Committee


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Decreased Governance Frees Time for Fundraising

Desired Board Member Time Allocation

80% 20% Major gifts

fundraising

Governance and

trusteeship

Core Responsibilities of

the 2020 Board Member

Supports Moves Management

• Identifies, cultivates, and asks

donors to fund top priorities

• Helps develop the case for

support; share with connections

Promotes Organization

• Serves as an advocate for the

organization at large, particularly

during times of change

• Articulates the organizational

value and funding priorities to

community members

Increase Board Giving

• Makes personal major gifts

• Encourages peers on foundation

and governing boards to give


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Pre-meeting Electronic Distribution Easy to Implement

Enable Independent Action

Source: “Consent Agenda,” Boardstar, accessed at: http://www.boardstar.org/assets/

documents/Consent%20Agenda.pdf; Oakwood Healthcare Foundation, Dearborn, MI;

Philanthropy Leadership Council interviews and analysis.

1) Consent Agenda,” Boardstar, accessed at:

http://www.boardstar.org/assets/documents/Consent%20Agenda.pdf.

Make Time for Higher Priorities via Consent Agenda

Items That Can be Approved via a Consent Agenda Prior to Meeting1

Consent Agenda Defined1

Language Included in Meeting Agendas

Sent Out to Board Members at Oakwood

A note regarding Consent Agenda items: If a

Board member believes that an item included

on the consent agenda requires additional

discussion, this request will be accommodated.

Please contact development prior to the meeting.

Practice of relegating routine items on

the board meeting agenda to email

communication prior to the meeting

and approving the entire list at once.

z

Meeting minutes

Staff reports

Committee reports

Background reports used

for information only

Correspondence requiring

no action

Final approval of reports

or proposals on the

agenda for a long time

Routine contracts within

board policies

http://www.boardstar.org/assets/documents/Consent Agenda.pdf







12

Source: Oakwood Healthcare Foundation, Dearborn, MI;


Every Minute Counts in Revised Meeting Structure

Board of Trustees Meeting Agenda: August 2014 Oakwood Healthcare Foundation

8:00 AM Call to order, inspired giving stories, and

board nominations

8:10 AM Panel discussion and Q&A on women’s

services

8:40 AM Intro to women’s services funding initiative

9:00 AM Role play activity

9:10 AM Consent agenda approval

9:15 AM Governance

• Board self-evaluation results

• Feedback from June campaign meeting

9:25 AM Bylaws and articles of incorporation revisions

9:35 AM System President and CEO report

9:50 AM Conclusions and next steps

Minutes Eliminated from

Old Agenda

30

60

Minutes dedicated to

operational, financial review

Minutes dedicated to reviewing

prospect names

Items Added to New Agenda

• Inspired giving stories

• Education on specific funding initiative

• Interactive role play exercise

• Q&A time

• Quick consent agenda approval


13 Flex Around Top Funding Priorities


Maximize Board’s Value via Progressive Task Forces

Old Paradigm New Paradigm

Nomenclature Committees Task forces

Duration Long-standing; written into the bylaws Short-term; dissipated at end of year

or as soon as priority is funded

Focus Area Aligned with area of interest to

volunteers

Tied to specific fundraising goal

(e.g., fund a top priority item)

Staffing Volunteers mandated to join at least one Staffed via an ‘opt-in’ choice

Alignment Aligned with volunteer’s goals Aligned with volunteer’s, foundation’s,

and hospital’s goals

Leadership Development staff or board champion Board champion

Comparison of Traditional vs. Progressive Volunteer Substructures


14

Couple Engagement Questions with Requirements, Past Performance

Hardwire Mutual Value


Self-Audit Makes Board Members Reflect

New Board Requirements

Volunteer Self-Audit Survey

Past Performance

Years of service: 6

FY 2013 meeting attendance: 4 of 6

Committee activity: ___________

Self Assessment

1. Are you interested in continuing your board service? (If ‘yes,’ please continue.)

2. Do you have access to individuals in the community who can help with philanthropy?

Are you willing to tap into that network?

3. Are you willing to fulfill the new responsibilities for the future board, as outlined?


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Philanthropy Leadership Council Support


Five Most Population Board Engagement Resources

Health Care Fundraising Board of 2020

Health Care Fundraising Job Description

Onsite Presentation

Role Play Toolkit for Volunteers

Bring one of our speakers onsite to

educate your board on the board’s role

Comprehensive best practice study

including strategic guidance on maximizing

volunteer value

Detailed description of what is and is not a

philanthropy board member’s responsibility

Scenarios, scripts, and discussion guides

for simulation of real life situations

volunteers may find themselves in

Get the most out of your foundation board—

go "governance-lite" Expert Insight

Expert Insight on transitioning the board

away from a governance-heavy focus


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2 Clinicians

1 Volunteers

3 Executives



17

MDs Remain Critical to Uncovering Best Prospects

Health Care Foundations Increasing Investment in Clinician Engagement

Source: 2016 Snapshot of Grateful Patient Fundraising Programs,

2016; Philanthropy Leadership Council interviews and analysis.

1) As indicated by answer to the question: “Are you planning to make

any changes to your patient fundraising program in the near future?”

2) n=68; as indicated by answer to the prompt: “Check all the

components that are currently part of your program.”

Percentage of respondents who rely on referrals from

physicians and clinical staff for new prospect identification2 82%

Top Planned Investments and Modifications1

n=67

Increasing frequency of wealth screening

Increasing focus on physician/clinical

staff engagement in patient referrals

Hiring FTE dedicated to patient fundraising

Changing follow-up outreach type

Adding predictive modeling or other analytics

4

1

5

2

3

69%

30%

24%

16%

15%

Rank


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Target Engagement to Accelerate Clinical Alliances

Ten Steps for Achieving Four Key Imperatives

#1 Frontload champion

engagement

#2 Marshal collective

power of champion

core

#10 Prime new

physician

prospect

pockets

#8 Create purposeful

stewardship plans

#9 Quantify value and

impact

Establish

High-Functioning

Champion Core

Over-Invest in

Highest-Value Allies

Hardwire Physician

Stewardship and

Impact Tracking

Build Low-

Maintenance Ally and

Champion Pipeline

#3 Right-size ally pool

#4 Focus on

representation in

emerging priorities

#5 Flex to include new

care roles

#6 Find the hook

#7 Deploy around

prospects, peers,

and priorities


19

Who Passes the “Godfather” Test?

Look for Peer Leaders and Exemplars


Establish High-Functioning Champion Core

Recruitment Criteria for Physician Champions

Recognized leader: If you asked ten medical staff members to list

informal or formal physician leaders, would this individual be included

on eight out of ten lists?

Well-respected: If you asked any medical staff member, would they

speak highly of this physician?

“Gets” philanthropy: If you asked this physician to talk to a prospective

donor, would he or she immediately agree?

Mandatory Characteristics

Highly Desired

Strategic priority alignment: Is a priority in the physician’s service area

included in the foundation’s top five current funding priorities?

Patient donor potential: Has the physician’s service area yielded at least

five patients with affinity and means who have made a major gift?


20

Qualifying Your Ally Pool

Targeting Strategy Starts with Priority Alignment

Over-Invest in Highest-Value Allies


Physician Selection

Status Quo

1

3

2

4

Practice in area with

funding need

Practice in service line with:

• High-capacity patients

• High-affinity patients High physician

engagement scores

Can “get” philanthropy

(aptitude)

“Gets” philanthropy

(behavior)

Practice in strategic

funding priority area 1

3

2 Practice in service line with:

• High-capacity patients

• High-affinity patients

Physician Selection

Recommended Practices


21



Five Most Population Physician Engagement Resources

Philanthropy-Physician Partnership Toolkit

Ready-to-Use Physician Education Decks

Onsite Presentation

HIPAA Educational Tools and Talking Points


educate your clinicians on philanthropy

and the impact of their involvement

100+ page toolkit with ready-to-use

templates and tools for engaging allies

and champions

PowerPoint deck and talking points to

use in conversations with clinical partners

Webconference and talking points to help

you assuage concerns about grateful

patient fundraising programs

Fundraiser Virtual Academy Ally

Relationship Building Course

Online education platform for frontline

fundraisers offering CFRE credit and

lessons on clinician engagement


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2 Clinicians

1 Volunteers

3 Executives



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Garner CEO Buy-In By Proving Value

Why CEOs Should Care About Philanthropy

High-performing foundations account for more

than 20% of net income of their health systems

Philanthropy is less resource-intensive than

operational revenue streams.

To increase the revenue potential of

philanthropy, invest more—not less.

There is plenty of opportunity to elevate

philanthropy's return on investment.

If you want to be a top performer, focus on

major gifts.


24

Funding Innovation and Advancement

Source: Mayo Clinic, Rochester, MN. Mayo Clinic 2012 Annual Report, available

at http://www.mayoclinic.org/mcitems/mc0700-mc0799/mc0710-2012.pdf [June

21, 2013]. Philanthropy Leadership Council interviews and analysis.

Accounting for More Than 20% of Net Income

Revenue and Income at Mayo Health System, by Source

Total Health System Revenue Net Health System Income

2% Philanthropy

21% Philanthropy

85%

Patient

Revenue 13%

Other

65%

Patient

Income

14%

Other

http://www.mayoclinic.org/mcitems/mc0700-mc0799/mc0710-2012.pdf






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Source: Baptist Health Foundation, Birmingham, AL;


A Less Resource-Intensive Revenue Stream

Baptist Health Foundation Revenue

Expressed in Operational Terms

= = $1M of foundation revenue

$71M in hospital charges

5,000 adjusted discharges


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Five Most Population Executive Engagement Resources

Philanthropy: The Biggest Income

Opportunity You’re Probably Missing

Five Things CEOs Need to Know

About Philanthropy

Onsite Presentation

Tips to Reconcile Philanthropy and

Finance Reporting


educate your executive team on the impact

of philanthropy

Slide deck and corresponding talking

points and research brief to share with

executive peers

Blog post delineating the impact of

philanthropy’s contributions and how

executives can partner

Webconference on building a relationship

with the finance department

CXO Onboarding Toolkit Tips for building relationships with newly

hired or promoted CEOs, CFOs, COOs,

and other hospital executives


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Thank You!



Jennie Light

Senior Analyst


[email protected]


How to Build Alliances that Work

Healthcare

Transcript of How to Build Alliances that Work