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Welcome!
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Objective: to provide participants
with ideas and inspiration to develop
their fundraising and to share skills
and experiences with each other.
Objective: to provide participants with
ideas and inspiration to develop their
fundraising and to share skills and
experiences with each other.
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Strategy – useful tools that really work
Simon Burne
July 2011
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Objective
• To share a set of easy to use tools to help you to make fundraising strategies that work
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Four key drivers
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Thinking inside the box
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80% Rule: Roughly right – not precisely wrong
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What is Strategy?
A structure
A list of things to do
Tactics
A big document that decorates your shelf and gathers dust
It is not
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Petronius Arbiter 210 BC
We trained hard… but it seemed that every time we
were beginning to form up into teams, we would be
reorganised. I was to learn later in life that we tend
to meet any new situation by reorganising and a
wonderful method it can be for creating the illusion
of progress, while producing confusion,
inefficiency and demoralisation
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“I always leave my strategy on the train in the hope that a competitor
will pick it up and believe that’s what we’re really going to do”
Denis Stevenson
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“However beautiful the strategy, you should occasionally look at the
results.”
Winston Churchill
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“Strategy without tactics is the slowest route to victory. Tactics
without strategy is the noise before defeat.”
Sun Tzu 500 BC
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“A satisfied customer is the best business strategy of all.”
Michael Leboeuf
donor
fundraising
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• Knowing where we are now
• Knowing where we want to get to
• Knowing how we’re going to get there
• It’s about
• Internal stuff
• External stuff
• Matching the two
• Planning for success - prioritising
• Monitoring the results
• Being flexible
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In times of crisis…
The horizon gets closer
So strategies get shorter
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Too much to deal with!
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Risk Management
Paralysis by analysis
Strategic options Internal analysis No change
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How do we escape?
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Or… 8 things to do with a box
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1. SWOT
Strengths Weaknesses
Opportunities Threats
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Internal Bridges & Barriers
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Internal Bridges
• Processes that work
• Key allies
• Core skills and competencies
• Networks and contacts
• Beneficiaries
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Internal Bridges
• Recognise them
• Celebrate them
• Strengthen them
• Use them
• Learn from them
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Internal Barriers
• Lack of expertise
• Finance
• Service Staff
• Lack of information
• Poorly-defined need
• Lack of strategy
• Processes that don’t work
• No resources
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Internal Barriers
• Form alliances to overcome them
• Work around them
• Find a way through them
• Accept your limitations
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2. PEST
Political Economic
Social Technical
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External Market Factors
Focus on top 3-4 key external factors which could have a genuine major impact (+/-) on fundraising success.
Invest resources in these areas = do a
few things well.
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External Market Factors
Develop scenarios for each key factor: • In-depth knowledge of factor
• Predict range of possible outcomes
• For each outcome: – What would be impact on your fundraising for
each?
– What action would you need to take to maximise benefits/minimise problems?
– What resources will you need?
– How will you monitor the situation?
– How will you be prepared to respond quickly?
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Benchmarking
Develop links with similar NGOs, share information, monitor position
Income:cost ratios of each activity
Comparative size of each activity
Comparative growth of each activity
Mystery shopping
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3a. Boston Matrix (Products)
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Product Development Cycle
Need
Audience
Product
Evaluate Innovate!
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Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
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Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
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Product Lifecycle
Time
Pro
fitab
ility
R&D investment maintenance cull
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Building your fundraising
£
Time
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CASH COWS DEAD DOGS
Renewals
Special Appeals
Legacies and
Planned Gifts
Internet
Upgrade
Mail Acquisition
Annual Giving (High Value)
Major Donors
PROBLEM CHILDREN
Foundations
Merchandising
DRTV Acquisition
Monthly Giving
Direct Dialogue
Boston Matrix
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CASH COWS DEAD DOGS
Renewals
Special Appeals
Legacies and
Planned Gifts
Internet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
Boston Matrix
PROBLEM CHILDREN
Foundations
Merchandising
DRTV Acquisition
Monthly Giving
Direct Dialogue
RISING STARS
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Value (ROI) vs. Volume (potential)
value
volume
PROBLEM CHILDREN
Internet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
1
2
3
value
2
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Ease of implementation vs. impact
ease
impact
Must haves
Quick wins
Sinks
Low-hanging fruit
PROBLEM CHILDREN Internet
Upgrade
Mail Acquisition
Annual Giving (HV)
Major Donors
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3b. Boston Matrix (Problems)
Mysterons Devils
Sacred
cows
Sad
sacks
Level of
impact
+
-
Level of
understanding
+ -
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3b. Boston Matrix (Problems)
Devils – Focus on the four biggest
– Develop clear strategies for neutralising
Mysterons – Watch closely
– Be ready to take action
Sacred cows – Need change at the very top
– Learn to work round them
Sad sacks – Safely ignore
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3c. Boston Matrix (Competitors)
Rising Stars Problem Children
Cash Cows Dead Dogs
Potential threats
Learn from mistakes
Ideas to improve
Best practice
Ideas to copy
Real threats
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Competitors
What I will do
with the
information
What I want to know The questions I need
to ask
How can I find this
out?
Develop new
products
New ideas or products
from my competitors
that I could use/adapt.
Which new products
are being developed
or tested? How well
are they performing?
Speak to them,
share information.
Mystery shopping.
Research.
Be first with
my appeal for
xxxxx
Which competitors also
raise money for xxxx.
Timing.
What are their plans
for launching an
appeal for xxxx?
Speak to them,
share information.
Improve
performance
of my current
products
Ways in which
competitors are offering
my products more
successfully.
How well are their
current products
performing compared
to mine? What are
they doing differently
to me?
Mystery shopping.
Financial reports.
Conference
presentations.
Research.
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m
ark
et/
au
die
nce
curr
ent
new
current new
offer/product
existing
product
new products to
existing supporters
4. The Ansoff Matrix
taking them to
new audiences ? new products for
new supporters?
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m
ark
et/
au
die
nce
curr
ent
new
current new
offer/product
Direct
Dialogue
New areas
Older age profile
New creative
Upgrade
Campaign action
Special Appeal
Text appeal
?
E.G. Monthly Giving
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Prioritising your investment choices
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• How do you compare apples and oranges? EG –
a new shop versus a new DM campaign?
• ROI doesn’t work – too short-term
• IRR is better but doesn’t tell the whole story
• Four key factors are:
• Profitability
• Level of risk/uncertainty
• Market size/potential
• Market understanding
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5. Investment Sailing Boat
Level of risk
Net return
Market
potential
Market
understanding
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5. Investment Sailing Boat
Level of risk
Net return
Market
potential
Market
understanding
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Goals & Objectives
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• Important to set targets.
• Objectives can divide as well as motivate.
• Objectives need to be set that are cross-organisational.
• KPIs should be few, and not all financial.
• Remember the Rule of Four
Goals & Objectives
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6. Balanced Scorecard
Financial Processes
Supporters/
Stakeholders
Learning
and growth
Vision &
Strategy
• one objective per quadrant –max 4
• keep the objectives SMART
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Objective-Setting
SMART • Strategic
• Measurable
• Achievable
• Realistic
• Time-limited
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Objective-Setting
SMART • Scary
• Mouthwatering
• Ambitious
• Rare
• Team-building
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7. Strategic Risk Analysis
Finances
Processes Culture/skills
Stakeholders Impact
Pro
bab
ility
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8. Vulnerability Index
Insignificant
Very important
Relatively
safe Very
vulnerable
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Last thoughts…
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Ref.: Anais Nin
“We don’t see things
as they are.
We see them as we are”
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“If we don’t make utter fools of
ourselves from time to time,
we grow smug - that is,
we do not grow at all.”
Ref.: Tom Peters
Innovation
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‘We are taught to solve problems not to recognise opportunities.’
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“Every act of creation
is first of all an act of destruction”
Ref.: P. Picaso
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“We’ve made a lot of mistakes. And we’ve been very lucky at times. Some of our products are things you might say we’ve just stumbled on. But you can’t stumble if you’re not in motion.” R.Carlton
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Words used by a boss to a new employee on their first day at work
A culture of successful risk
‘If you don’t screw
up at least once in
your first year with
us, you aren’t trying
hard enough.’
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‘There is no formula for success. But there is a
formula for failure, and that is trying to please
everybody.’
Nicholas Ray, Film Director
The Formula for Failure
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Henry Ford
The truest word…
Whether you believe
you can or whether you
believe you can’t,
you’re right
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The two most important words in
fundraising
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