Waiting Around the Bend Dan McCormick CEO McCormick Group
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Transcript of Waiting Around the Bend Dan McCormick CEO McCormick Group
Waiting Around the Bend
Dan McCormickCEO McCormick Group
May 23, 2013
What’s All This About and Why Should I Care
“We know something's happening, and we're beginning to sense what it is. We're speeding up; our technology is speeding up; our arts and entertainment and the pace of invention and change -- it's all speeding up. And we care. If we don't understand time, we become its victims.”
---from Faster: The Acceleration of Just About Everything by James Gleick
3 Books To Read
Present Shock Douglas Rushkoff
With Charity for All Ken Sterns
Faster, the Acceleration of just about everything James Gleick
The Game Has Changed
YouTube has 800 million distinct views of content each day
Target can predict when its customers are pregnant and nearing the birth of a baby based on the products they purchases
Google can predict the incidence of flu weeks before the Center of Disease Control knows there’s a problem by analyzing search words
There are 400 million tweets per day on Twitter
Facebook reports its 1B + users hits the like button and or leaves a comment 3 Billion times a day
Cell Phones Alone
83% of all Americans have cell phone
36% of households are wireless only (no landline)
73% send and received texts - Teens send 60 text per day
More than 2 trillion SMS were sent in the US in 2012 – 6 billion per day
December 2012 CTIA facts
Our Lives Have Changed
Camera Film Photos
Music CD’s VCR and Video Tapes
Writing Letters Bookstores
Travel Agents Printed Maps
Classified Ads in Newspapers Dial Up Internet Access
Yellow Pages and Address BooksEncyclopedias
Fax Machines Pay Phones
Online Shopping
39% of adults with household incomes of at least $75K shopped at Ebay in the last 12 months.
69% of US adults shopped at Amazon.com over the past 12 months as opposed to 55% for Walmart, 49% for Target
80% of all auto purchases are initiated online
eBay and Amazon account for 70% of the mobile commerce market place.
Apple ITunes sold 25 Billion tracks in 8 years (28% of all music sales)
SOURCE – Factbrowser.com
Our Business is Changing Too
The Salvation Army has set up a system where people in Columbus, Ohio, can text the word "kettle" to the organization, and the phone carrier adds $5 to the texter's phone bill
American Cancer Society is posting peoples' stories through photos and videos to demonstrate passion for their cause. sharinghope.tv.
Just having a click through for a credit card gift on your wed site is not nearly enough in today's competitive environment
It Really Started in Haiti
Total giving to the Haiti earthquake tragedy in the US was $1.4 billion
Before the earthquake in Haiti, total giving via texting stood at just $1 million.
A few months after the earthquake, donors had given more than $50 million via texting to support Haiti relief efforts. (source Charity Navigator)
Haiti telethon first round raised $35 million
Why Does This Matter
It creates an expectation that you can give quickly, safely and easily
Giving, even $5 on a text message gives the donor a sense of helping and satisfies any guilt and or feeling of a need to give
It makes saying “I have already given” not only easier but true
What Do The Names Below Have in Common?
Network for Good.orgRazoo.com
Firespring.orgJustGive.org
Charity NavigatorVirgin Money Giving
Donation ToCharity WatchSecure GiveEver Ribbon
Funds for Your LifeSimple Give
eTransferCauses
What About the Competition
You can set up a new charitable organization and begin raising money instantly
Over the last two decades the charitable sector has grown by more than 155% far outstripping all other
According to a Stanford University Study the IRS approves more than 99.5 percent of all charitable applications
There’s a Dark Side
Following Hurricane Katrina, the FBI estimated that 2400 fake charity Web sites were set up
More than 59,000 charities with the word “Veteran” in their Name – many unscrupulous or complete shams U.S. Navy Veterans Association (USNVA) founded in 2002 raised more than
$100 Million in donations. Less than 1% went to veterans.
Why Does This Matter
The competition is strong and immediate
The process is much quicker to the market place and catches attention
There is a growing expectation of availability to contribute that way
Its cheap and easy
The money raised is not new money its part of the whole philanthropic pie
Online Giving Snapshot
The total number of groups raising money online grew 20% from 2011 to 2012 (88,400 – 106,000)
Average online gift $77
More people give online on Monday and Tuesday but gifts on Thursday and Friday are larger by over $15 per gift
http://philanthropy.com/article/Online-Giving-Grew-Rapidly-in/135992/
Its Not the Technologyit’s the Behavior
It’s the fact that people are changing the way they live, work and give and its changing faster than ever before
As online giving becomes more available the numbers will continue to rise – currently double digit increases each year
Here and Now
There are a lot of change agents out there now
Some will impact our organization significantly
They tend to happen faster than one might think
We need to help our organization become agile at adaption
We need to develop systems and processes that will help us be better positioned
“Everything is Fine”
This is the NPO mantra…..we fool ourselves in thinking that all is well
We tend to downplay downturns
We have an expectation that tried and true methods that were successful in years past will once again somehow, magically work
We have a tendency to “spin” out data and current situation rather than face the fact that we are in a dramatic decline
Look at Us
UWW does an annual survey on community perception of our Local United Ways – less than 5% of UWs subscribe to the data
Even when UWW offers a process on how to get the data and survey done free, local UWs do not get and use the data
Amara’s Law
“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” – Roy Amara was a researcher, scientist and past president of the Institute for the Future
“We tend to underestimate the impact of downtrend and overestimate the impact of up trends”
What Should We Do?
Recognize trends and technologies that will impact us earlier
Become “pre-active”….”pro-active” is not fast enough and “reactive” is way too late
Morph our organization agile entities with the capacity to respond quickly and have resilience through change
What Can We Begin To Do
First – do a real and truthful assessment of our current state
Look at trends from the last 2 to 5 years
Believe the results
Look for aberrations that may make the trend line average either worse or better and discount that number
Don’t do it alone
Create a Committee of Futurists
Develop a standing committee of staff and volunteers
Charged with looking at existing and coming trends, technologies and topics
Look outside of your current board Forward thinkers Entrepreneurs Local technology gurus University research types Communications and media people and marketing experts People that think about the future
Futurist Committee
8 to 10 people is plenty
Meet 2 to 4 times a year for a few hours
Establish an agenda that helps them focus on your mission, operations and functions in light of what they know, thinking and believe about the near term future
Don’t expect them to problem solve, just enlighten us about what’s coming around the bend
Tomorrows Matrix
Develop a “matrix” of interaction of current trends and technologies and their impact upon mission and functions
This is a low tech way of vetting new ideas and technologies that are here or on the way and determining the following: Is it going to impact us? If so how? When can we expect to feel the impact? How much is is going to cost to position and get ready for it?
Trend Matrix
CRM Software
CrowdSourcing Constituent
Relationships
Operations
Mission
Fundraising
Community Change
Using New Components
Its not enough to say you have Facebook, Twitter etc. The real issue is what is your plan for its use
Nicholas Sparks – Author of the Notebook and 16 other NYT best sellers and 9 movies Use of Facebook
1.6M Likes Promotes his books and book signings and events Sells books Raises money for his charitable interest Helps his fans feel closer to him and his family
The Agile Organization
What we are really learning is that the change agents are coming at us faster and faster.
If we are going to have a chance we must help our organizations develop the ability to change…quickly and often
Easier Said Than Done
Create a “culture” of adapting to change
Breakdown legacy habits
Foster an organizational expectation of agility
Educate our board of directors of the critical need to be more agile
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin
Characteristics of an Agile Organization
The Volunteer Leadership has confidence in their CEO The CEO has the confidence and trust of his or her senior
leadership The CEO and the Volunteer Leadership share the same
vision The organization is not surprised by incremental and
significant strategic and tactical changes Innovation is “ALWAYS” mission driven Risk vs. Reward makes sense
Becoming more Agile
There is no personal or political penalty for being innovative
Staff, at all levels, do not fear change or jump to the conclusion that all change is bad
Organizational Life Cycles
Enthusiastic entrepreneurial start up
Growing, strengthening and envisioning possibilities
Maturing into sustainability and well being
Declining from lack of innovation and relevance
Organizational Life Cycle
Time
Succ
ess
Turnaround
Maturing
Growth
Start Up
Dissolution
Decline
StagnateComplace
nt
Sustaining
It Takes Capacity
Smaller organization and those that are at the plateau and beginning decline are usually heavily committed in human and financial resources
Hard to find the time to reconfigure the organization because of the pressures of daily functionality and staying afloat
Financial capacity and human resources are limited Stability of current mission support with options to grow
becomes a rare commodity
Building Capacity
Collaboration
Consolidation of some or all of your business functions
Sharing services and innovation
Merging with like minded organization
“Larger does not mean loss of local!”
Organizational Choices
Stay the course and live out your trend lines
Seek ways to reinvent your organization and hope it works
Become more open and more adaptive resulting in more agility and ready for change
Actively grow capacity quickly through collaboration, consolidation, joint ventures and mergers with sister organizations
Constant and Relentless
We tend to exist in a distracted present, where forces on the periphery are magnified and those immediately before us are ignored. Our ability to create a plan – much less follow through on it – is undermined by our need to be able to improvise our way through any number of external impacts that stand to derail us at any moment. Douglass Russkoff – “Present Shock” 2013
Thank You!