Posts Tagged ‘developing strategy’

Working Strategically: A Common Challenge for Community and Private Foundations

Wednesday, September 14th, 2011

Over the course of CEP’s work, we often hear reasons why foundations cannot, or should not, be compared to one another. According to the conventional wisdom, “If you’ve seen one foundation, you’ve seen one foundation.”  And it is often assumed that community foundations are too different from private foundations to enable us to draw lessons from one that apply to the other.

While there is some truth in these statements, we also see that differences across foundations aren’t necessarily best explained by type, or asset size, or the other commonly hypothesized reasons.  Our past research indicates that important variation exists across foundations, as well as in the practice of foundation staff members, on more mutable characteristics such as how grantees experience working with the foundation, internal attitudes and practices related to data and assessment, or the presence of a strategy.

Our latest research report,Rhetoric versus Reality: A Strategic Disconnect at Community Foundations,” presents us with yet another instance in which we see more similarities than differences across foundations of different types.

In 2006, CEP released a report about the use of strategy, or lack thereof, among CEOs and program staff at large private foundations. It was a qualitative study, based on interviews with a total of 42 staff members from 21 private foundations. Based on our data from that research, CEP developed a definition of strategy:

A framework for decision-making that is 1) focused on the external context in which the foundation works, and 2) includes a hypothesized causal connection between use of foundation resources and goal achievement.

After receiving requests from community foundation leaders, we set out to conduct a similar, but separate study, about the meaning and use of strategy at community foundations. Given the particular challenges and competitive dynamics that community foundations face, we hypothesized that strategy may carry a somewhat different meaning or be viewed differently by community foundation CEOs.  Or that, perhaps community foundations, by virtue of the pressures they’re under, would be more strategic than their private foundation counterparts.

But findings from this new research do not support that hypothesis. Our findings for community foundations are strikingly similar to the findings from our research with private foundations.

After in-depth interviews with 30 randomly selected community foundation CEOs, we found that CEOs of community foundations believe that strategy is important, and say that they are using strategy in their work at their foundation. However, when we compare their descriptions of their strategies with CEP’s definition of strategy, we find that few community foundation CEOs are actually using strategy.

It is worth pointing out that while analyzing our data from this study, we noticed that CEOs’ descriptions of their decision making processes did not indicate that CEP’s strategy definition needed amending in order to be applied to the work of community foundations.

The missing ingredient for most who participated in our study is the second part of CEP’s strategy definition: the logic that explicitly links the use of foundation resources to intended results in the community it serves. When we drill down to examine the decision-making process, we tend to see the biggest gaps between a CEO’s choices and how those choices will help the foundation move closer to achieving the foundation’s goals.

But we know that gaps of this nature are also key opportunities for progress in the development of strategy – for community and private foundations alike. It is clear that community foundations, too, have a long way to go to marry their rhetoric and the stark reality when it comes to strategy.

 

Ellie Buteau, Ph.D., is Vice President – Research at the Center for Effective Philanthropy.

The Art of Harnessing Collective Wisdom

Tuesday, May 17th, 2011

“However beautiful the strategy, you should occasionally look at the results.” – Winston Churchill

This quote came to mind during the first session of the 2011 Center for Effective Philanthropy (CEP) conference as CEP Vice President Ellie Buteau presented the results of a recent CEO survey on foundation assessment. Ellie noted that CEOs reported tensions between the focus on assessment and the freedom to take risks, between data and intuition. Survey results indicated that those who collect more types of information from a variety of data sources have stronger confidence in the effectiveness of their strategy.

The CEP conference set a valuable table for foundations seeking to craft strategies that yield powerful results on some of society’s most vexing challenges. Based on conversations with others, I suspect I am not alone in feeling more confident in the beauty of our strategies than in our ability to consistently identify or recognize how best to assess our effectiveness.

In his plenary presentation, Michael Mauboussin asserted that intuition only works when the situation is linear and stable. I can’t speak for other foundations, but the contexts in which McKnight works are neither linear nor stable! Mauboussin, investment strategist and author of Think Twice: Harnessing the Power of Counterintuition, spoke of the power of aggregated data to provide important insights – whether through computer algorithms or from the wisdom of crowds – and gave examples of how the collective guess is better than the average guess of the individual.

At McKnight, a vital aspect of our strategy development and iteration is a deep understanding of the ecosystem in which we are operating. We look at how we can use our particular strengths to foster change across the civic, public, and private sectors. We use multiple means including the Grantee Perception Report® to assess how well we are doing and where we need to improve. In terms of results, we increasingly look to goals and progress measures that are owned by a broader set of people in the community we serve. As our work cuts across issues and sectors, it is critical to harness the power of collective wisdom.

Some of our most exciting work is in collaboratives where we analyze and make meaning together of data and evolving circumstances, and share accountability for results. One example is Re-AMP, a network of nonprofits and foundations working on climate change and energy policy. The Monitor Institute recently completed a case study of Re-AMP entitled Transformer: How to Build a Network to Change a System. Another example is Living Cities, a consortium of foundations and financial institutions that works to increase opportunities for low-income communities through innovative systems change work in the midst of, as one participant described it, “wicked complexity.”

When we next gather around the CEP table, I look forward to continuing the conversation about how can we harness the power of the collective – grantees, protagonists (too often viewed as simply “beneficiaries”), and others in the public, private, and civic sectors to craft better strategies and achieve deeper impact than any of us can do alone.

Kate Wolford is president of The McKnight Foundation

Whose Volunteer Experience Is This Anyway?

Tuesday, January 4th, 2011

2010 ushered in do-goodism 2.0. The opportunities to check-in, check-out, or slack-out “for good” have never been greater. Voluntourism is on the rise, as people want to see and feel more of their vacation destination than a five-star resort may offer. But there are downsides, as I recently discovered at a cocktail party fundraiser.

The otherwise delightful woman to whom I was speaking was explaining how she and her husband had recently traveled to Cambodia with their kids in order to give the teenagers an understanding of poverty and their responsibility to help others less fortunate than themselves. I was interested.

When planning the trip, she explained, her kids had immediately dismissed Habitat for Humanity and other “traditional” groups because they wanted an authentic, personal experience. Prior to the trip, they’d gone online and researched places they could go and things they could do.  They’d found a small village that was building a library and some houses and that needed materials and books. “Perfect,” she thought. Emails were exchanged, arrangements were made.

But, she then went on to explain, the trip had all but been ruined by the fact that when they arrived the locals took the books and materials they’d brought and proceeded to build the structures themselves. Her kids, who had planned what they wanted to do and how they would direct the building process, were sidelined by locals who took over and did all the work themselves. Her kids were invited to participate, but they weren’t allowed to lead “their” projects. The goal of the trip, she complained, had been for her kids to feel how they could make a difference and this experience hadn’t provided that at all. “Overall, it left a bad taste in their mouths for future volunteer work,” she concluded.

It was then that I yelled, “It’s not about you!”

In my head.

Aloud, I asked her politely, “Whose volunteer experience is this anyway?”

Nick Kristoff’s recent New York Times piece on Do It Yourself Aid raised similar feelings. While it is great to get out and feel like “I’ve made a difference,” shouldn’t the emphasis in that sentence be on “made a difference” and not “I?” When the primary purpose of volunteerism or aid work becomes our own experience of self-fulfillment, we’ve crossed a line. And unfortunately, sometimes the term social entrepreneur with its emphasis on one person, is synonymous with a “me” orientation that is antithetical to strategies that have been effective in creating lasting social change. Similarly, some social enterprises may be praised for taking a bold approach that makes perfect sense to donors, but which might not be highly prioritized by those receiving. Recent criticisms of TOMS Shoes and other “buy one, give one” programs raise important issues. If TOMS Shoes are being sourced and made locally, then that is sustainable change. If they are shipped in, then it’s mostly plain vanilla charity with excellent marketing. Almost by definition, these donor- or giver-centered approaches can leave out indigenous/local groups that are working to help themselves, but keep getting left out of others “solutions.”

So that begs the question, how much should one’s own need for achievement, media, or notoriety influence decisions about giving? Volunteering? When, as funders, do our demands for metrics and causality shift from necessary rigor and become instead attempts to assign egotistical ownership? When is our desire to develop a strategy that is “unlike other foundations” truly innovative, and when is it merely chest thumping?

For foundations, I think strategic philanthropy, as outlined by many of CEPs studies and reports, gives a great framework for allowing impact — not ego —  to drive action. And personally? Well I love feeling that I’m making a difference, whether it is buying green products or volunteering or contributing to organizations I love. By doing these things I create a sense of community, connection, and empathy that benefits me as well as those on the other end of that support. The act of giving is mutually beneficial. But at the end of the day, it’s not only about me. Giving, volunteering, and the work done to support nonprofits becomes transformative when the goal is something much larger than just one person’s pride or fame or even self-actualization.

Do you have strategies for keeping your ego in check?

Crystal Hayling is Former President and CEO of the Blue Shield of California Foundation and a member of the CEP Board of Directors.

Back to Basics: What Are You Trying to Achieve?

Monday, December 20th, 2010

This post was originally published on December 16, 2010 on www.glasspockets.org.

In a recent op-ed in Philanthropy Journal, I wrote about the importance of foundations sharing information about whether or not they are being effective in pursuit of their goals. In that piece, I acknowledged that a review of the Glasspockets web site shows that very few foundations have an assessment of overall foundation performance that they make available.

I’d like to take a few steps back from considering how many foundations have an overall performance assessment they make public and ask about the thought process that fuels the development of such an assessment. How do foundations determine which relevant performance indicators to include in such an assessment?

The fact is, it’s virtually impossible to answer the question of what indicators to use without a solid answer to the question, ‘What are the foundation’s goals?’ While this may seem like a simple question for foundations to answer, our experience and our research indicate that it is not.

In the Center for Effective Philanthropy’s 2009 study on foundation strategy, 40 percent of CEO and program staff respondents to our survey did not provide, when asked, a single specific goal that their foundation was working to achieve. By specific, I mean a goal that includes a well-defined issue area, target population, or geographic location.

We found that of those that did provide a goal, the goals varied dramatically in their specificity. For example, here are three goals all aimed at strengthening nonprofits. Consider how well each of these goals might guide a foundation in selecting the relevant performance indicators to help the foundation understand its progress towards each of these goals:

  1. “Strengthening organizations.”
  2. “Strengthen the nonprofit sector: Assist [our state’s] nonprofit organizations with their effectiveness in terms of improved governance, transparent financial operations, creativity and sustainability.”
  3. “To enable organizations with whom we partner to develop scorecards and internal systems for evaluating the impact of their work.”

Even with clear and specific goals, performance assessment for foundations is tough work. Given that a foundation is typically not the sole actor contributing to progress in a given area of work, it is difficult to determine a reasonable expectation for progress for which a foundation should hold itself accountable.

For example, if a foundation is one of many organizations working to strengthen the nonprofit sector in a particular state, how do its leaders determine to what extent it is responsible for the ultimate strengthening of those organizations? Here, I would argue, the specifics of a foundation’s strategy, and how that strategy gets implemented, are key factors that provide further guidance for the selection of relevant performance indicators.  But, as we have also learned in our research, many foundation CEOs and program staff do not use strategy to guide their work.

Many foundations have a long way to go before they’ll be able to contribute performance assessment data of substance to the Glasspockets website. They have to first clarify their goals, strategies, and the extent to which they are holding themselves accountable for the change they’d like to see.

In the quest for transparency, it is important for foundations to refrain from selecting certain indicators simply because they are easily quantifiable. Rather, foundations must commit to having the difficult conversations and doing the soul searching required to get clear on what they are trying to achieve — and how — before they can begin to consider measuring success. Why don’t these conversations happen more often at foundations? What would enable more foundations to productively discuss these complex issues with both their internal and external constituents?

Ellie Buteau, PhD is Vice President—Research at the Center for Effective Philanthropy.