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  LAPA News & Views
Winter 2006 


Dear friends and colleagues,

Welcome to the winter edition of "LAPA News & Views", a quarterly newsletter from Laurence A. Pagnoni & Associates, Inc. (LAPA) providing innovative tips on nonprofit management and development.


IN THIS ISSUE:


A PERSONAL NOTE FROM LAURENCE: The Importance of "Followership"

Dear Friends and Colleagues:

A few years ago I heard a new word: "followership." I stopped in my tracks. What could it mean? So I did some research. The Civil Air Patrol defines followership as "reaching a specific goal while exercising respect for authority, a positive attitude, integrity, and self discipline." This military definition may work well in the Army, but expecting that kind of obedience in our sector is unrealistic. In the social sector respect must be earned.

So I came up with my own definition: followership assumes that no matter what leadership position a person holds, we all follow someone. An Executive Director must report to a Board, a Board must report to the State Attorney General, etc.

I started to think about all the good people who have worked for me and had to follow my leadership over the past twenty years. What attributes did they have? Effective "followers" have strong abilities to monitor outcomes, question assumptions, formulate detailed proposals, keep colleagues (including supervisors) honest and informed, initiate recommendations, and nurture and support co-workers and supervisors alike.

At LAPA, we believe followers are an essential part of vibrant leadership. Why? Because good leadership is not restricted to the influence exerted by someone in a particular role or position; it is, rather, shared among all members of a group. Good leaders aspire to foster collective leadership among followers (helping the leaders to feel less lonely at the top).

Further, I have seen firsthand that the most functional organizations, the ones that not only survive, but flourish, are led by individuals who are able to listen deeply to their constituents and foster their leadership. I believe that LAPA is still going strong, now in our 11th year, partly because we hire good "followers" – people who are willing to speak out for the good of the organization and the clients we represent. A good follower may (surprise) even turn out to be a potential new leader—something our sector needs for the future.

In the spirit of followership, this issue of LAPA News & Views focuses on what to do when a leader resigns and how to figure out who will follow him or her (Succession Planning). We also explore the donor's role in leading and following. Enjoy.

Sincerely,

Laurence A. Pagnoni, MA, MPA
lpagnoni@lp-associates.com


INDIVIDUAL DONORS: GETTING BEHIND THE FEAR OF ASKING

This past week my brother asked me to develop a pro bono grant proposal for him and his neighbors because they had received approval from their local town council to build a dog-run. They filed for nonprofit status and he thought the logical next step for a start-up organization with a built-in constituency of potential donors (dog-owners in the area) was to write a grant proposal. I was puzzled.

In our conversation it became clear that my brother was afraid of asking people for money. I probed for the sources of his fear. He was afraid that once acquaintances and neighborhood dog-owners gave a donation they would want a larger role in planning the project, and a group of qualified people had already been chosen to do that.

Like my brother, many Executive Directors and Board members fear that somehow they will become indebted to the donor. Perhaps, they will have to schedule an unwanted luncheon, build a monument, or name a wing already promised to another donor.

As I explained to my brother, individual donor fundraising has a clear quid pro quo. The donor gives his or her donation in exchange for an opportunity to be part of a beloved mission. It is the asker's job, upon accepting the gift, to make this agreement clear to the donor. The donor follows the pace and lead of the organization, not the other way around. (Donors can also be leaders, but within the plans of the agency. Their leadership is needed to inspire other donors to get involved and give more, or give for the first time.)

Many donors will do extraordinary things to support the mission of an organization they feel passionate about. It is the job of the fundraiser to fuel that passion. On the other hand, sometimes a donor leads by chairing a gala, introducing the nonprofit to a new prospect (or donor), or by sharing a perspective that was not previously considered.

Once a donor becomes a loyal "follower" of your mission, you can almost be sure of continued funding for years to come. Someone who loves dogs today, will likely still love them tomorrow. That person would gladly follow a nonprofit leader who has a solid and passionate mission for improving the life of a dog. And it is cost-efficient to keep an existing donor informed and excited about your work because, as Terry Axelrod notes in Raising More Money, "...it costs at least five times more to acquire a new donor than it does to renew and upgrade an existing donor." Unlike foundations that have committee processes, individuals tend to remain the primary guardian of their funds, so their ability to act fast and be generous is impressive.

The moral of my story is that it's worth examining your fears and seeking support in thinking differently about asking others to be donors. If I can help you talk through your approach about asking people for money, please give me a call at 212.932.8001, Ext 3.

Blanche L. Norman
Director of Grants Services


"ASK LAPA": ANSWERS TO YOUR QUESTIONS ABOUT MANAGEMENT AND FUNDRAISING ISSUES.

Q. I have been the Executive Director of a mid-size nonprofit for 30 years. Now I must retire. I need to leave the job within the year and I do not know who will succeed me. Since announcing my leave Board members have expressed serious concern about our future. I, too, am worried that a worthy successor will not be found by the end of the year. Please advise.

- Martha, Brooklyn


A. LAPA responds:

Executive transitions are incredible opportunities for organizations to think hard about their future. As nervous as you and your Board may be, I encourage all parties not to rush to fill the vacancy. Instead, consider hiring an interim chief, a senior executive who would take your place temporarily. An interim Executive Director would assume basic management over tasks that keep your organization on firm ground, providing financial oversight, good relationships with funders, and staff management.

Take your time. Hiring an interim chief allows your Board and staff to make the right decision about a permanent successor.

Further, I urge you to consider hiring a human resources or succession planning consultant to guide you through the process. Why? These individuals bring years of expertise and objectivity to the hiring process. A consultant can help your Board do the following:

1) Create a timeline and work plan for hiring both an interim and permanent Executive Director.
2) Form an ad hoc transition committee to deal with specific succession issues such as communication with staff, recruitment, and development of performance objectives. A consultant can help the ad hoc committee stay on track.
3) Develop a profile of the new Executive Director's qualifications and attributes based on your organization's strategic goals. Only with a clear understanding of your organization's concrete strategic direction will you be ready to identify the skills, experience, and background required of the next leader. It is essential that you link job qualifications to future organizational needs and goals.
4) It is also critical to inform important stakeholders of the change. Clients, government contract managers, foundation program officers, individual donors, volunteers, and key elected officials need to know about your change in leadership. Be sure to attend to each stakeholder's natural concerns about effective use of his/her important investment in funding, talent, and/or support. This is something a qualified interim director or consultant should be able to tackle.

The cost of retaining a consultant for an executive search and selection varies depending on the size of the organization. Fees typically range from $15,000 to $40,000 with an average cost of $20,000 for nonprofits with budgets under $3M. The fee represents good value for what you will get in return: a highly skilled Executive Director who is going to continue to fulfill your organization's mission and goals for many years to come. Many of your current funders may even pay those fees if you ask them in a thoughtful way. Good luck, and keep us posted.

Melissa Shurkin
LAPA Senior Associate

PS. You may be wondering where to find an interim Executive Director. Well, there is an established pool of interim Executive Directors right here in our city, and I would be glad to tell you how to make contact with them. You may reach me at 212.932.8001, Ext 4.

DO YOU HAVE QUESTIONS FOR LAPA? Please contact us by clicking here. Our team will answer as many of your questions as possible in future newsletters.


LAPA STRATEGIC PLAN: AN UPDATE

In 2005, aided by the independent firm of Strategists, Inc., LAPA conducted an assessment of its first 10 years of service to the nonprofit sector. Our strategic plan is informed by the findings of the 10-year assessment; it aims to build on strengths and alleviate weaknesses identified in the assessment process. (A full report of those findings is available at LAPA’s Web site: http://www.lp-associates.com/fall2005.htm)

LAPA's original strategic plan from 1995 served the firm for its first nine years of existence. It helped to establish the firm as an effective and recognized entity in its field. Given that the goals of the original plan have now been accomplished, LAPA recognized the need for a renewed planning process. The new SP will better position the firm to succeed in its next five years to help it build a greater capacity to positively impact the nonprofit sector.

LAPA is in the final stage of completing this new five-year strategic plan. Our plan includes a BHAG—a Big Hairy Audacious Goal—which is exciting, and we will share that with you soon. Laurence will continue to meet with nonprofit community leaders to get their opinions about the plan.

Please know we are grateful to all of you who have provided input and comments about our thought process.


Click here to contact Laurence A. Pagnoni, MA, MPA.

To reach a LAPA associate, click on the name below:

Sheldon Bart, MA
Enid Harlow, MA
Blanche Norman, MA
Elsa Ríos, MSW
Julia Ritchie, CSW
Dwayne Sampson, BA
Melissa Shurkin, MMHS

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Laurence A. Pagnoni & Associates
New York, NY, 10001

Phone: (212) 932-8001
Fax: (212) 932-8801
Web site: http://www.lp-associates.com
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