Archive for the 'Stop Signs on the Road to Changing the World' Category

When “Best Practice” is Bad Practice

Fresno - Werner TheaterThe term Best Practice has always made me nuts. In the past week, though, I am convinced the term is following me!

First there was this week’s live Twitter Chat, where consultants from around the world grappled with the extent to which inspiring vs. prescribing to clients is most effective. In that context, the words Best Practice came up often.

Then I received an email from a reporter, with questions about Best Practice for governance. And then, not 24 hours ago, I scanned the latest copy of the Blue Avocado newsletter, only to find an admonishment that we reconsider what we mean by Best Practice.

For the record, the term Best Practice doesn’t make me crazy because it is overused or even because it is less than honest, as noted in Blue Avocado.

The term makes me crazy because much of what is declared to be Best Practice is actually to blame for why the Community Benefit Sector has not significantly and overwhelmingly changed our communities!

“Best Practice” Issue #1: The Answers Are Outside Us
One issue that became clear in the Twitter chat this week is an issue I raised in The Pollyanna Principles – that organizations have much to build upon, and that when we use systems that build upon a groups’ own wisdom, they are more likely to own and then act upon the results.

Best Practice throws all that out the window. Best Practice assumes the answers have been predefined from outside the group, and that failure to adopt what the rest of the world is doing will be perceived as less than professional.

Best Practice suggests the group isn’t smart enough to come up with its own answers. Best Practice leads to seeing others (especially consultants and academics) as having those answers.

Encouraging a group to rely on Best Practice, then, is reinforcing for the group that they are not as smart as those other experts. Rather than empowering a group, reliance on Best Practice takes their power away.

In a world where boards so often feel like fish out of water, deferring to EDs out of their own sense of inadequacy, encouraging a board to focus on externally imposed Best Practice simply reinforces that sense of inadequacy. Use of Best Practice therefore creates weaker, less confident leaders, who do not own the results of their work, because that work was generated outside them – by experts providing externally developed Best Practice.

“Best Practice” Issue #2: Who Says It’s Best? And What is Best About It?
Blue Avocado points out that what is commonly accepted as Best Practice is more often than not simply common practice – what everyone else is doing. (Can’t you just hear your mother asking, “If everyone else was jumping off a cliff, would you?”)

Board gurus often cite all the Best Practice sources - BoardSource, Standards for Excellence, even the articles at our own Community-Driven Institute Library.

But what makes those sources “best?” Best at what? If, as an example, board effectiveness is measured by board participation and enthusiasm, or by an accountability-for-the-means checklist – but not by the extent to which that board is aggressively pursuing the organization’s vision and mission in the community – is that really “best?” Or have we replaced our vision for what is possible with a set of minimum standards and simply chosen to call those “best?”

“Best Practice” Issue #3: When “Best” is Actually Bad
That leads to the hardest issue to face: What happens when what is touted as Best Practice is actually harmful?

Best Practice in Governance that rewards accountability for the money (means) with zero accountability for community-driven results (ends).

Best Practice in Board Recruitment, that provides a matrix of pro bono roles to be filled (attorney, accountant, PR person, etc.), when in fact, recruiting board members for the purpose of receiving pro bono help is actually a direct cause of micromanagement.

Best Practice in fundraising (and in providing funding as a grantor) that teaches organizations to become more competitive / to sell themselves as “better than their competition” – while simultaneously bemoaning that those groups have trouble working cooperatively with the very organizations they have been instructed to “differentiate themselves against” (i.e. make themselves appear to be better than).

In just these 3 cases, adherence to Best Practice leads to and reinforces

These practices move far beyond simply being “not best.” These Best Practices have caused dramatic harm – within individual organizations, within the Community Benefit Sector as a whole, and within the communities we all care about.

What To Do Instead?
If we humans are more likely to feel ownership of work we create ourselves, the answer becomes clear: Have groups establish their own “Best Practice.”

For simplicity’s sake, let’s use the board recruitment example. By scrapping the Best Practice board recruitment matrix, we can facilitate the group’s wisdom instead, asking such questions as:

  • What are the qualities we want to be sure every board member has?
  • What are the qualities it would be nice if some had, but not everyone needs to have?
  • What are pro bono positions we wish the organization would attract? (Let’s be sure to recruit those separately as volunteers, rather than assuming we must add these folks to the board)
  • What are the characteristics we never want to see on our board, ever ever ever?

From the lists of answers to these and other questions, each group will own its recruitment criteria and from there its recruitment process. And the same method of asking and encouraging the group’s own wisdom could then apply to all the other issues for which groups seek outside expertise.

As you seek to inspire and energize your board, your staff, your volunteers – even your donors – you may just find this lack of Best Practice to be the “best” practice of all!

What This Means for Consultants and Other “Experts”
As consultants, we are used to being asked for our expertise. Everything about the way we do our work changes, however, when instead of assuming the answer is outside the group, we assume the answer is in the room, and that our job as the consultant is to guide the group to find its own answer.

If we see our role as inspiring our clients’ own wisdom, then the consultant will ask instead of telling.  Instead of a magic bag of checklists and answers, the consultant will have a magic bag of probing questions.

Instead of enforcing external standards, the consultant will practice eliciting a group’s own standards.

The consultant will still have topic-specific knowledge to inject into the discussion where needed. But that topic-specific knowledge will be a perk, an incentive for the group to want to learn more, rather than the definitive word.

In the end, the approach you choose will come down to a question that is simultaneously simple and complex:  How much do you trust your own judgment and ability? And how much do you trust the judgment and ability of your clients?

If you are a consultant, join us at our new blog: Consultants as Catalysts for Community Change!

Photo credit: “Not What it Seems” by Hildy & Dimitri

Is That Really Governance?

Board meetingLast week I saw yet another workbook published by yet another respected Governance group, providing yet another list of principles for “Good Governance.”

And yet again, of its 33 chapters, one chapter is devoted to “Mission and Goals.” ONE CHAPTER!

The rest of the book is a chapter-by-chapter list of what we could all recite as the purported “Good Governance Checklist.”  Here’s just a smattering of topics that received entire chapters.

• Meetings
• Conflicts of Interest
• Term Limits
• Financial Records
• Board Size
• Expense Policies
• CEO Evaluation
• Donor Intent and Gift Acceptance

Is that really good governance? Or is it instead a 32 chapter list describing the mechanical functions of being a board?

Is there anything in that list about leading and guiding the organization towards the community’s highest aspirations for what is possible? And isn’t that what the spirit of engaged leadership is about at its essence?

When will governance experts start teaching that? When will they acknowledge that replacing high-level, engaged leadership with a risk management checklist has done nothing but create disengaged, micromanaging, dysfunctional, scared, bored boards?

The real power of governance is to govern for what is possible – governing to make a huge, visionary, significant difference in our communities.

We can govern by developing plans for making that significant community difference.

We can govern by spending time at the board table discussing the community conditions we intend to change.

We can govern by measuring to see whether our actions are indeed making a difference in our community.

And if we don’t know how to do that measurement, we can govern by exploring and discussing and discovering the answer.

Imagine board meetings where that is how your board governs. Imagine your board holding itself first and foremost accountable for what is possible for your community, and then doing their oversight work within that huge, powerful context.

It is time to hand back to boards the possibilities that drew them to the board in the first place. It is time to teach them how to govern for those possibilities – to hold themselves accountable for those possibilities.

Because those possibilities embody the highest potential for governance – to light the way to a better world.

To build a board around the issues that matter the most, let our Board Recruitment Manual be your guide!

What Everyone Should Know About Membership Campaigns

Members Only Cardboard signOh no, here it comes. When times are tough for Community Benefit Organizations, a single article like this one (originally from the Wall Street Journal, then quoted at the Chronicle of Philanthropy) can be enough to send boards and EDs scurrying to get ahead of the latest new fundraising fad.

Membership is by no means a new fad. It is one that is used by many high profile organizations – museums, Nonprofit Resource Centers, public broadcast stations. And it can indeed provide a fairly reliable stream of money.

However, before the study quoted in the WSJ gets your board all fired up to institute a membership program, there are words of caution you may want to heed.

Caution#1:
Membership dues are paid annually.

Result: While non-member donors are accustomed to giving throughout the year, members are used to being asked / giving once a year – period.

Caution #2:
Memberships tend to be inexpensive.

Result: Not only do funds from members only come in once a year, their giving levels barely graze the bottom wrung of a typical annual appeal.

Caution#3:
Almost by definition, membership is transactional.

Members provide financial support in exchange for a tangible set of benefits – free admission, a monthly arts calendar, discounts on classes, a Pavarotti DVD set.

Result: While members certainly feel supportive of the cause, members can also be heard saying, “I’m considering not renewing my membership this year. I rarely use it…” Their thoughts about their membership are not first and foremost as a donor who is supporting a cause, but as the user of a product or service. The transactional nature of the relationship is further reinforced by ongoing payment-due renewal notices, that are worded to focus on what members will no longer receive if they allow that membership to lapse.

Caution #4:
“Transactions” require more work for the organization than straight donations.

Result: In addition to standard fundraising costs, membership entails expenses for all the “stuff” the member receives.

Caution #5:
Net proceeds are all that count.

Result: Once you factor in the cost beyond the actual member perks – the staff time to secure and manage those items, as well as the ongoing “renewal” notices – might more money be raised if the staff were doing something other than ordering mugs or creating “member events?”

As we summarize the revenue side of the membership equation, we see the following:

Membership is once-a-year, low-dollar revenue from purchasers who, while supportive of the cause, expect to receive “stuff” in exchange for their donation. Membership is transactional rather than engaging, and those transactions require more staff time than other donation programs.

In addition to these financial cautions, there is one additional caution that relates not to revenues, but to the very mission of the organization.

Caution #6:
Membership is defined by exclusivity. Either one is a member or not.

Result: Effecting community change requires a culture of INclusivity. It requires as many hands on deck as possible. It requires that an organization provide service to anyone who needs it, regardless of (and often specifically in contrast to) their ability to pay for that service.

How does it impact a museum’s mission to “provide education and foster appreciation in the community” if they provide discounts only to those who can afford membership? Does the mission de facto become “to provide education and foster appreciation only among those who can afford it?”

The same question holds true for a Nonprofit Resource Center whose for-pay workshops are open to anyone, while free workshops are offered only as a perk for its members. Does that Nonprofit Resource Center’s mission de facto become “to serve our members,” rather than “to serve the community?”

The Answer
When we ask, “What are the pros and cons of a membership campaign?” we are considering one approach in a vacuum. And while the pros of that one approach may outweigh the cons, that still doesn’t make it the best choice among a whole realm of options.

So what’s the answer? The answer requires that we consider the range of options for raising money to support your cause, and choose your fundraising strategy by weighing each of those tactics not only against objective criteria, but against each other.

• How much might each approach raise?
• How much work will it take?
• Will those donors become real friends?
• Etc.

Add up and compare your answers and see which comes out on top.

Is it membership? I didn’t think so.

Are you making your decisions in a vacuum? This easy-to-use tool will help you make more effective decisions!