 |
In this edition of "LAPA News & Views" we depart from our regular format to provide you with information about LAPA's 10th anniversary assessment. I hope you will enjoy reading the report. The assessment results offer a revealing look into our consulting with nonprofits.
To read the report in PDF format, click here.
Many thanks to all of you who took the time to respond to our survey. We also thank Debbie Mason and Michelle Portlock of Strategists, Inc. for their work to ensure objectivity and confidentiality while conducting a thorough evaluation. Does consulting achieve results? Most certainly, yes.
Laurence A. Pagnoni, MA, MPA
P.S. I welcome your feedback. Please feel free to call me at 212-932-8001 x1 to talk further about your experience with nonprofit consulting and the impact it has on our sector.
P.P.S. Feel free to forward this newsletter to others whom you feel it would benefit. If you would like to be removed from our list, follow the instructions at the end of the page.
Click here to contact Laurence by e-mail.
 |
By Debbie Mason, APR
In honor of Laurence A. Pagnoni & Associates' (LAPA) 10th
Anniversary, Laurence gave his firm an unusual anniversary gift.
Rather than the more traditional celebration cake, the founder
and president's gift to his team was an in-depth look at the
firm's effectiveness in delivering results to clients.
Now, with the assessment complete, Laurence and his team
members can look back with relief and satisfaction at the results.
The feedback from the majority of LAPA's clients demonstrated that
LAPA delivers superior results. Clients reported that LAPA is known
for its timely completion of work, commitment to client goals, and
expertise in helping clients reach their business objectives.
These were not foregone conclusions, however. In order to reach them, LAPA opened itself up to scrutiny from an outside evaluator (my firm, Strategists, Inc.) and assured respondents that they would have total anonymity in giving their candid feedback. The result was an intensive six-month process, involving conversations with current and past clients who, as a group, have known LAPA for most of its 10-year existence. These respondents were well-positioned to highlight the firm's strengths and weaknesses.
Looking In The Mirror
Just as many of LAPA's clients seek to measure the impact of their services--whether for Persons Living With AIDS, at-risk youth, or elderly citizens in need of care--so should LAPA, Laurence reasoned. He decided that measuring the outcomes of LAPA's management and fundraising services for nonprofit organizations would be a great learning and growth experience for his team members, and would help build the future of the firm.
LAPA retained Strategists, Inc. to conduct an assessment with current clients, former clients, and organizations that approached LAPA but did not contract for services. The pool of those surveyed spanned the past 10 years. After working with LAPA Senior Associate Melissa Shurkin to determine the assessment areas, audience factors, timeline and methods for the evaluation, Michelle Portlock and I conducted a written client survey involving 38 staff members at 29 organizations. We conducted 18 personal interviews and a written survey.
The clients who participated included representatives from the full range of organizations that LAPA serves--nonprofits with budgets ranging from under $100,000 to over $15 million, primarily in health care and social service sectors. Most had contracts with LAPA that were two years or less in length, although approximately 25% worked with LAPA over many years. About half were still working with LAPA at the time of the survey.
The Numbers
The survey and personal interviews demonstrated that LAPA's services have helped the responding nonprofits reach their goals.
An impressive 77% of clients surveyed said that LAPA's services had directly created a positive impact for their organizations, with 10% of those reporting LAPA had a "very significant" impact. Most clients (78.2%) saw the greatest impact in the increase or diversification of revenue. A large majority also said they achieved greater clarity around organizational goals, and broadened their contacts and networks as a result of their work with LAPA.
Of the 23% who indicated LAPA's services had not generated an impact, the majority saw their engagement with LAPA as oriented around short-term projects--like group facilitation or a print publication--that didn't affect the overall functioning of the organization. Others indicated their organizations didn't have budget or staff sufficient to implement LAPA's recommendations and therefore were not able to determine impact.
On a 1 to 5 rating scale, with 5 as excellent, clients rated LAPA:
-- 4.18 for completing work on time;
-- 4.11 for sufficient level of expertise; and
-- 4.11 for demonstrating commitment to reach client goals.
Could clients have done better if they had chosen not to contract with LAPA? The great majority thought not. Of those responding, 74.2% indicated that the results achieved with LAPA were greater than what they could have achieved without retaining LAPA. Only 9.7% indicated the results were less than what they could have achieved otherwise.
Transfer of Knowledge
Although LAPA's consultants do not serve as "on-site" staff for their nonprofit clients, and while many organizations in fact outsource services like grant writing and direct mail to the firm, transfer of knowledge is nevertheless a major focus of the consulting. Of responding clients 70% reported that they learned new strategies and skills from LAPA.
One client explained that LAPA "helped us to become more direct about the way we approach foundations." The firm "gave us a lot of ideas about [how] we can follow-up [and be] more deliberate... [It] would write progress letters to foundations to let them know how things were going. We learned a lot about the process of fundraising." Indeed, the most prevalent skills mentioned were how to fundraise (35.7%), along with another 17.9% who mentioned learning management strategies and skills.
Another client summed up the comments of several others by saying, "We really have learned a lot about development. Laurence is a wealth of information. He understands the market [and] the approach." CEOs Together, LAPA's group coaching program for nonprofit executives, garnered impressive learning results from participants, who indicated they received outstanding support and critical information by participating. On average, they rated the program a 4.17 on a 5-point scale.
A Team Approach
One of the elements that sets LAPA apart from many consulting firms is that LAPA's consultants work together in a team and have a variety of skills. Forming a cohesive team, the LAPA approach offers clients the services of an entire "department" of complementary skills (from grant writing to board facilitation), rather than the more "silo"-focused approach of hiring a single consultant with a narrow set of skills.
Clients responding to the survey clearly agreed that this is a primary benefit of hiring LAPA as compared to hiring other firms. Those surveyed indicated that the results generated by the team approach are generally superior to working with individual consultants. One client explained, "the most important factor in working with LAPA is that I believed we were getting a full team, not just an individual. Many organizations have a one-person development shop and expect too much of that one person. What was attractive about LAPA was a team approach. For the price we were going to get an array of skills."
Using a multiple answer format, clients were asked to rank the benefits of working with LAPA's team approach. 41% of clients indicated this provided them with a greater depth and breadth of skills and experience; 29% said this approach provided greater accessibility as a key benefit.
Room for Growth
As with any survey, this one pointed to areas where clients feel improvements could be made. Based directly on feedback from the assessment, LAPA will focus on making improvements in:
-- Having greater mindfulness around listening to clients' real or perceived barriers to action.
-- Increasing communication with clients about LAPA staffing changes.
-- Appreciating that while the firm's clients are happy with the financial return they secure with LAPA's help, they still need more discretionary revenue for their operations.
-- Providing additional information about the level of difficulty of raising funds for the client prior to entering the consulting relationship.
-- Offering a clearer explanation of the team structure at the firm; informing clients that while Laurence Pagnoni stays involved and reviews all client progress, a lead consultant emerges to assist him over the course of the engagement.
Laurence Pagnoni said, "This was a great experience for me and our staff. We received valuable feedback from our clients on areas that will help us work more effectively." He added, "We were able to relish the many positive comments we received for helping our clients achieve their goals. That feedback alone was worth all the time and effort of the process, and we thank our clients for participating."
As LAPA enters its second decade of service, the firm is well-positioned to refine its internal operations as its reputation for success continues to grow, based on referrals from satisfied clients. Knowing that is perhaps even sweeter than anniversary cake. As Laurence said, "it makes our 10th year a greater occasion for celebration."
Debbie Mason, APR, is President of Strategists, Inc. (http://www.strategistsinc. com/). An Accredited Public Relations counselor, Debbie has a wealth of corporate, agency, and consulting experience spanning 25 years.
Using the results of the 10-year assessment, LAPA has recently undertaken strategic planning for the firm. "We will use our clients' feedback to strategically plan our growth and expansion, charting our course for the next five years. We aim to create depth and increased quality of technical assistance," said Laurence Pagnoni.
PRAISE AND CHALLENGES FROM THE LAPA 10-YEAR ASSESSMENT
Quotes from LAPA's clients:
"We're overwhelmingly pleased with LAPA's work. They're great to have on our side."
"We became much more attentive to outcome-based objectives and helped the board to think in terms of accomplishments, which increased board and development committee accountability."
"LAPA challenges me to be more engaged in private fundraising than would be my nature... I appreciate the challenge and the debate."
"We've been very, very happy with LAPA. It's a good relationship. When we do have concerns, we feel comfortable expressing them--and vice versa. We have a lot of respect for each other and we work well together."
"It was an ideal fit. Other firms were too geared for large organizations, or were not professional enough. [LAPA] didn't try to fit us into a mold."
"A top benefit has been the automatic infrastructure that LAPA provided to my organization. LAPA provides the staff to do paperwork, respond to legal issues, and to write our brochure."
"I've worked with other consultants who were rigid and wanted to keep projects within what they thought were the bounds or price of the project. LAPA wasn't like this."
"LAPA's services allow us to raise private dollars without having to devote all of the resources that an in-house development department would require. We have much of the benefit without the cost, both in terms of financial resources and time. It is very efficient for us."
"[LAPA] has encouraged me to do more fundraising. I didn't go into this work because I like fundraising. By nature I'm introverted. Fundraising requires a different skill set and a different mind set. Laurence has had a tremendous impact. It's sometimes unpleasant, but it's a constant balancing of priorities. The biggest impact is getting us out of these walls--and that's necessary for our survival and growth. It's a positive impact with negative side effects."
"LAPA delivered--they raised significant funds. And they gave an incredible amount of education."
"I have grown so much and matured so much as an ED, in fundraising, program design, managing relationships, and running this organization."
|
 |
By Melissa Shurkin, LAPA Senior Associate
LAPA's assessment revealed important lessons that are applicable both to the firm and to other capacity builders. We are pleased to share what we've learned over 10 years of service. If we only knew then what we know now!
1. Funding is not always the issue
Sixty percent of LAPA's former and current clients initially sought out LAPA's services for fundraising. However, funding does not solve all organizational dilemmas. Much of our work focuses on building infrastructure to get and use funding effectively. Fundraising is only as successful as the program's capacity to serve its clients well. Effective fundraising requires intelligent budgeting, program development, staff support, and leadership. Fundraising, program planning, and organizational development are inextricably bound. LAPA recommends that capacity builders:
-- Know that fundraising engagements often require coaching and facilitation in other areas, and vice versa;
-- Prepare to address multiple issues at once by bundling services. A written work plan and schedule are essential tools for this task;
-- Price accordingly, giving the client the best up-front price possible and then adding performance-based fees.
2. Clarify expectations up front
Feedback from LAPA's assessment highlighted the challenge of making sure that client expectations match what LAPA can reasonably deliver. For many clients, hiring a consultant is a significant investment, and they naturally want to get as much as possible from the engagement. Therefore, early communication of expectations is critical. Clarify what the client can expect around:
-- Division of labor among consultants and staff members on the team;
-- Number of hours per week that members of the team (both consultants and client staff) can expect to devote to the engagement;
-- Turn-around time for responding to requests for information.
3. Engage multiple levels of staff
The primary contact person for most of our client engagements is the organization's executive director. However, direct program staff members know important nuances of clients' programs, mission, vision, and values that need to be articulated. At LAPA, we have learned that orienting program staff to our role, expertise, and big picture goals creates a true partnership in which everyone recognizes his or her contribution to the project. Cultivating this mentality may involve a culture shift for those organizations that keep program staff separate from fundraising. We know, however, that the most successful organizations link program development and fundraising.
Melissa Shurkin is LAPA's evaluation specialist and the project director for an outcome evaluation of 22 AIDS organizations funded through the Congressional Black Caucus.
 |
By Mark Engler, LAPA Associate
As part of our 10th Anniversary assessment, an internal review conducted by LAPA showed that most of the firm's fundraising clients earn three to six times what they pay in consulting fees. This level of return allows them to meet or exceed the Better Business Bureau's standard indicating that charities should spend no more than 35% of their budgets on development.
-- 12% of LAPA clients earn between two and three dollars for every dollar spent on consulting fees.
-- 48% of LAPA clients earn between three and six dollars for every dollar spent.
-- 16% of LAPA clients earn more than six dollars for every dollar spent.
Among top-performing contracts, one LAPA client earned 13 times what it paid in consulting fees; another earned 12 times the amount it paid in fees.
LAPA surpasses its revenue goal by at least 25% for over 40% of its clients.
By Michelle Portlock
LAPA's assessment showed that greater length of the consulting engagement was tied to greater results. Overall, long-term clients rated LAPA higher in terms of effectiveness and impact. Almost 90% of long-term clients indicated that the changes at their organizations made as a result of LAPA's assistance were good to very significant, compared with 67% of short-term clients.
The key areas where long-term clients saw more gain for their organizations were:
-- increasing revenue
-- diversifying funding streams and
-- learning new fundraising strategies and skills.
"A lot of consultants are short-term, come in and do a piece of work, and leave," said one long-term client. "[LAPA's] approach tends to favor longer relationships with client organizations and multiple interventions, so the impact is greater. [LAPA] is more systems-oriented and understands the interconnectedness of things and how one intervention may affect another."
Critics of development outsourcing claim that a consultant is unable to capture the true essence of an organization. LAPA's assessment results show that outsourcing works well when approached as a long-term solution. Considering that the average tenure of a development officer is 18 months to 2 years, outsourcing is an answer to high staff turnover and the accompanying loss of institutional knowledge.
Michelle Portlock is a consultant engaged by Strategists, Inc. for this project.
LAPA's 10-year assessment showed that many of the firm's clients only know about the specific service for which they contracted, and, therefore, are unaware of LAPA's full spectrum of services. In addition to LAPA's well-known foundation grant writing and executive coaching, the firm provides an array of services, ranging from development audits and marketing to board recruitment and outcome evaluation. For a description of LAPA services of which you may be unaware, visit http://lp-associates.com/service.php and click on "A Few More Reasons to Get to Know Us."
Mark Engler, BA
Sheldon Bart, MA
Sarah Dannan, BS
Stacey Flanagan, MS
Bodi Luse, MS
Elsa Ríos, MSW
Julia Ritchie, CSW
Dwayne Sampson, BA
Melissa Shurkin, MMHS
Raissa Smorol, MPA
LIKE WHAT YOU SEE? Forward this newsletter to friends and colleagues
to keep them on top of nonprofit management issues.
An archive of e-mail notices, with past tips and resources that you might
have missed, is available at http://www.lp-associates.com/e-newsletter.php.
If you received this from a friend, and would like to subscribe, you may
do so by using this same link.
Not interested? To unsubscribe, follow the link at the bottom of this
message, or click here and enter
the email address you want to unsubscribe.
|
