Tag Archives: Business

Cultural Fit: FIFA, North Korea, the Kardashians, the Nixon White House…and Your Nonprofit Arts Organization?

candle-in-the-dark

I just read an op-ed piece in The New York Times about the over-utilization of “cultural fit” as a criterion for hiring.  “One recent survey found that more than 80 percent of employers worldwide named cultural fit as a top hiring priority.”

To an extent, cultural fit is interesting, but a “top hiring priority?”  In the broadest sense, someone with an affinity for and experience in the nonprofit arts industry would seem to possess it for a nonprofit arts organization, as opposed to someone from Walmart.

But when challenges face the organization, or if an organization is seeking to “be taken to the next level,” cultural fit is the last thing you want in a key hire.  Adding wax to a candle just makes a bigger candle. It doesn’t light up the night until you add the fire.

Ethics: “You can’t just ask people to behave ethically just like that.” -Sepp Blatter, Friday, May 29, 2015

blatterOne foundation makes a grant for a pet project and then gets other foundations to commit money to that same project. And then decreases its gift by the amount the other foundations contribute.

One nonprofit arts organization that sent its executive on an expenses-paid vacation to Europe, paying for it with tax-deductible donations.

One executive director that increased the YOY marketing budget of the organization by 50% based not on history or data, but on “that’s how much we’re spending, so that’s how much we have to make.”

One board of directors that undertakes an emergency “going-out-of-business” desperation fundraising campaign, but after raising the money, changes nothing about the way it does business. And then does it again.

Hundreds of nonprofits having to deal with trust issues from nervous donors because of unethical behavior from a disgusting few.

If Educational Attainment is the Most Valuable Predictor of Arts Attendance, Can the Arts Become a Magnet for a More Highly-Educated Populace?

39.4% of Americans have at least a 2-year college degree.

Of the 25 most populous metropolitan areas (not limited to the city limits), only 15 surpass that percentage by more than 1%.

They are (in order of percentage, high-low):

  1. DC
  2. Boston
  3. Oakland-San Francisco
  4. Minneapolis
  5. Seattle
  6. Denver
  7. New York
  8. Baltimore
  9. Pittsburgh
  10. San Diego
  11. Portland
  12. Chicago
  13. Atlanta
  14. Philadelphia
  15. St. Louis

Coincidentally, every one of these cities exceeds the mean in inter-city US migration (moving from one US city to another).

When you eliminate people who have attended school-based arts performances and exhibitions in which they have a significantly personal connection to the art (a child, a neighbor, etc.), fewer than 50% of Americans have paid to experience the arts.

Does that mean that we give up on the arts in other metropolitan areas? Or might the arts serve as an attractor for highly-educated migrants?

Marketing Arts Charities: In 2014, It’s about Me (Not You… Me)

Me

Attracting Millennials to the arts isn’t the easiest thing in the world. What worked with the Greatest Generation hasn’t worked with Boomers or Millennials.

This summer, Coca-Cola put names on the bottles (common first names for those born in the 80s and 90s). Then, a Coke turned into something about “me.”

Look what I’m drinking… it’s me!

We’ve also seen hundreds of bucket challenges to support ALS research, which is great. The product sold in the videos is “me.”

Look what I’m using to do good in the world… it’s me!

Marketing the transformative experience of the arts works best when it’s about “me.”

Look at that amazing artwork/ballet/opera/play/musical… it’s me!

If you can make the experience about the patron (not for the patron), you’ll have a fan for life.

Or at least until the next big thing.

Careers in the Arts: It’s Pretty Ugly Out There

keep-calm-and-hire-for-innovation-not-fit

Paul Begala said, “Politics is show business for ugly people.”

The converse, that show business is politics for pretty people, is equally true.

Pretty (young) people enter nonprofit arts leadership believing that they should land a high-paying managing director’s job within 3 years. Ginormous student debt is predicated on that prospect.

Ugly (old) people, therefore, had better vamoose, and decrease the surplus population, to paraphrase C-Dick.

Pretty people panic at red ink. They leave. No experience or belief in failure.

Ugly people see an opportunity. They know when to duck and when to charge.

Consider for your next important hire:

  • When hiring for “fit,” by definition, you’re hiring to appease. Don’t expect much change.
  • When hiring for “innovation,” you’re hiring to anticipate obstacles. And only someone who has experienced obstacles (and carried on) knows how to do that.

Arts Charity Strategy: When Substitutes and Competitors Blur, Does Your Organization Become Unfocused?

In 1979, Porter’s Five Forces Analysis tool was published by the Harvard Business Review. If you haven’t studied it, do so. But study it hard – it’s far more comprehensive and complex than “5 Tips to Get More Donors” or others in the current mini-list nonsense arena.

When arts charities view competitors (those that do what we do) and substitutes (those that do something that the customer will do instead of what we do) as one force, they lose mission focus, and once that happens, they begin the downward spiral.

To wit: if you run a theatre, your competition is “theatres.” If you make the mistake of thinking that “video games” is a competitor (rather than a substitute), the logical conclusion is that you need to provide “television” instead of “theatre.”

Be a theatre. That’s hard enough these days.

Labor Day: “I Hear America Singing,” by Walt Whitman, 1867 (153 words. Yeah, I know.)

“I hear America singing, the varied carols I hear,

Those of mechanics, each one singing his as it should be blithe and strong,

The carpenter singing his as he measures his plank or beam,

The mason singing his as he makes ready for work, or leaves off work,

The boatman singing what belongs to him in his boat, the deckhand singing on the steamboat deck,

The shoemaker singing as he sits on his bench, the hatter singing as he stands,

The wood-cutter’s song, the ploughboy’s on his way in the morning, or at noon intermission or at sundown,

The delicious singing of the mother, or of the young wife at work, or of the girl sewing or washing,

Each singing what belongs to him or her and to none else,

The day what belongs to the day—at night the party of young fellows, robust, friendly,

Singing with open mouths their strong melodious songs.”

The Politics of Charity: Minding Your Speaking Your Mind

Some of us are more candid than we probably ought to be. We put ourselves out there. But remember this as you read this blog and other business columns:  things change.

Each charity has a special mission (or at least should) that may relate to other charities in the universe, but not exactly. There is no right or wrong way to do it. And expressing a thought in a column – such as 137 Words – does not equate to either a Sermon on the Mount or a whisper from Jiminy Cricket about that charity. It is merely an expression based on the writer’s own vantage point.

So when Covey, Collins, Porter, or even Harrison proclaim a truth, it’s not backpedaling to say that the “truth” is a reaction to what’s happening right now. And that things change.

The Future of the Arts: It’s About the Impact Outside the Building

I’ve been scouring mission statements. Some inspiring, some boring; some engaging, some self-indulgent. Indications of what the charity values? Absolutely.

Performing arts charities, more than any other, tend to value programming over impact:

“to sustain, encourage, and promote the performing arts and to educate the public with relation thereto” – Lincoln Center

“producing and presenting the greatest examples of music, dance, and theater; supporting artists in the creation of new work; and serving the nation as a leader in arts education” – Kennedy Center

In contrast, public broadcasting tends to value impact over programming:

“to create a more informed public – one challenged and invigorated by a deeper understanding and appreciation of events, ideas and cultures” – NPR

“to inform, to inspire, and to educate” – PBS

Do you see the difference? Do you want the difference?

More on Charities and Families: Find a Way to Answer “NO” to Form 990, Part VI, Line 2

SDOpera

“XYX YXYXYXYX (WHO SERVES AS GENERAL DIRECTOR AND ARTISTIC DIRECTOR, CEO) AND XXX XXXXXXXX (WHO SERVES AS EXECUTIVE DIRECTOR – DEVELOPMENT AND MARKETING) HAVE A FAMILY RELATIONSHIP”

Their two combined salaries (excluding payroll taxes) to total budget: 6.0%.

Their two salaries to all salaries: 12.7%
These two employees to all 406 employees: 0.5%
Ratio, these two employees’ salaries to all employees’ salaries: 25-1

Current year surplus/(deficit): ($3,239,641)

Are your decision-makers married or in some family relationship? For a for-profit company, that’s fine. Family businesses  and for-profit nepotism are mostly fine.

But charities, owned by the community and answerable to its constituents, are not family businesses. And when they act irresponsibly, like the above arts organization, it’s a travesty that negatively affects the whole industry.

Because now we have to convince supporters that this won’t happen to their donation.

Arrogance, thy name is YXYXYXYX.

Your Next Charity Leader: “Cool, Aloof, Efficient” or “Passionate, Assertive, Innovative?”

Benedict and Jobs

I suppose it’s not a binary choice. But ultimately, they seem to fall in exclusive constellations of attributes.

Few leaders are in both camps. And, depending on the organization’s life-stage, you may need more from one camp than the other.

Pope Benedict vs. Steve Jobs. Neither is perfect, but each offers different personality sets at the helm of your charity.

I prefer to work with those who are in the latter camp. They are invariably afraid of little, impolitic, guileless, insistent, and noisy. But they most often find solutions, tell the truth, and can make things happen.

Not that I don’t like the former group, but I’ve found they hold their cards tight, condescend, rarely make a definitive statement, defer, passively-aggressively ignore, and require others to make things happen.

But they rarely threaten change.  So there’s that.

Negatively Commenting on the Title of a Post (What You’re Reading Now) is Akin to PETA Boycotting “To Kill a Mockingbird” Because, You Know, They’re Killing a Mockingbird.

Recently, a foundation advocate negatively commented on the title of a 137 Words blog post. On the title, not the post.

As Ben Franklin once said, “We are all born ignorant, but one must work hard to remain stupid.”

Thank you for reading 137 Words and sharing it with your colleagues. We’re pretty amazed when 137 Words evokes derision, praise, or questions.

If you haven’t shared yet, please do – karma will be kind.

In 6 months, 137 Words has picked up about 6,000 readers.  That exceeds all our expectations.  We are truly grateful.

And to those like this advocate who only read the title and not the posting (what you’re reading now), I only wish bliss. Or, should I say, additional bliss.

Harsh?  Maybe so.  Because I am all too often a card-carrying member of the Right to Extreme Stupidity League.

Charity Missions: Are They Relevant, Or Are They Adorable?

Charitable mission statements tell us what the world looks like as the charity succeeds.

When the mission is rendered moot, the charity is superfluous.

Outside the USA, arts nonprofits are suffering due to reductions in government subsidy. In the USA, however, subsidies are almost non-existent, save for the NEA, which supports with pennies, paper clips, and Cheerios from underneath the Congressional Budget couch cushions.

So the US turns to capitalistic support. Survival of the fittest.

I don’t know. Perhaps the NEA now only exists to exist, like the NRA, PTA, PBS, Catholic Church, or the United Way.

Because in a country where the wealthiest 1% own more than the least-wealthiest 90% and where 95% of monetary gains since 2009 went to the wealthiest 1% of the population, could it be that charities are now just quaint relics of a populist past?

Arts Charity Leaders: The Economic Impact Argument Has Become a Losing Proposition…Move On

money message

From ArtsFund, Seattle:

“Together the activity of nonprofit arts organizations [in our region]…generates close to $2 billion in the Central Puget Sound’s economy creating 32,520 jobs, $882 million in labor income and $83 million in taxes.”

From Viking Stadium (new NFL stadium), Minneapolis:

“Construction will support approximately 13,000 jobs…almost $300 million in wages…upon completion, 3,400 full and part-time jobs…the economic activity from a new stadium will generate over $26 million per year in tax revenue and over $145 million in direct spending by Vikings fans inside the State of Minnesota.”

From McDonald’s:

“McDonald’s provides tax revenue for local, state and national governments…$1.3 billion in United States national and state corporate taxes in 2011…McDonald’s spends hundreds of millions upgrading or building new locations.”

Let’s move on to quantifying our outcomes before we bury ourselves with more “economic impact” studies.  It’s just not a winning argument for the arts.

Marketing the Arts, the Play-Doh® Fun Factory, and Marketman©

Marketman“Have a response to ‘If it’s a hit, it’s the art.  If it’s a bomb, it’s the marketing.’
It’ll keep you off death row.”
– Marketman©

Artistic events evolve.  The elements may be eons old, but the results continue to change.  With the squeeze of a contraption, like Play-Doh® in a Fun Factory, necessarily comes a different product.  Different from the time before.  Different from the next time.

This is a job for Marketman©, a copyrighted portion of this publication.  Marketman© (not necessarily male) is your company’s Sea Gal/Jay Carney/Don Draper/Rob Petrie.  Marketman© is charged with the task of launching a product to market, eliminating it, subsequently launching a new product.

Marketman© sells art, not tickets.  There is no lasting inventory, like month-old sodas on the shelf, when the new product is introduced.

Here.  Maybe this’ll help.

The 7 Most Important Things Not to Do About Not Doing the 52 Most Important Things

I write this blog and read many others. I find that people responding to nifty list posts (6 Strategic Ways to Get the Best Board of Directors) are looking for shorthand answers to longhand questions. I understand the appeal; work is complex and speed is valued over thoughtfulness. But the awkward and obvious question is:

“Are there only 6 ways to get the best board? Or are these just the first 6 you thought of?”

Same goes with negative posts (How NOT to Have a Sucky Board of Directors). I’ve been guilty of this, usually after a recent bad experience. Sorry about that, because the obvious and awkward question is:

“There are a kerjillion ways to have a sucky board. Can’t you help me get a good one?”

I’ll try to be a better poster. And here are 137 ways how…

Kibitzing is the Road to Hell for Charitable Organizations: “You know what you SHOULD do…”

Kibitzing.  Webster’s definition:  “watching other people and making unwanted comments about what they are doing.”

Good intentions (egad).  Some people pay for the privilege via their donation or board service. My mother believes it’s her birthright.

For arts charities, kibitzing mainly involves comments, programs, and activities that are unsupported by research or any evidence of success.

Instead:  come with solutions rather than problems.  Shortfalls are as unintentional as bad art.  No one intends red ink or a lousy play with bad acting.  But rather than more bake sales, auctions, galas, or (egad) a “give-a-million-dollars-or-we’ll-go-bankrupt-on-Tuesday” campaign; rather than creating a program committee (because anyone can pick plays) or a marketing committee (because anyone can market the arts), work with your ED toward real, verified solutions.

The road to hell is paved with kibitzers.  The road to bankruptcy, too.

Have You Heard? I’m a “Bomb-Throwing Provocateur!” Who’d Have Thought an Artist Could be One of Those?

Famous Provocateurs

A few posts ago, we talked about the enmity brewing between the arts charities and the rest of the charity sector. That many US arts charities concentrate on the quality of their art while the rest of the sector concentrates on outcomes. That arts charities are pretty much the only part of the charity sector in which the donor also uses the charity, exacerbating the arts’ reputation as being elitist.

Responses were 50-50. Those that agreed tended to come from arts marketers and fundraisers while the rest came from artistic directors and producers. Break it up…nothing to infer here.

Funniest comment was from a 36-year arts veteran decrying elitism; it’s part of the title here. She could have said, “You’re an asshole.” Or “jerk.” Or just plain “wrong.”

I might be all those things.  After all, I’m an artist.

This Just In: Artists Value Money Just Like You Do

I just read an article in the Chicago Tribune about actors receiving no payment for some performances. I’m not sure why it was written, except as acknowledgment that, well, actors receive no payment for some performances. Even for hit shows.

But why? “We can either pay you guys and not do a show — or not pay you and do a show,” said one producer in the article.

Here’s the thing: there are lots of performers. The competition forces them to undervalue themselves.

But that doesn’t mean that it’s ethical not to pay them. At least minimum wage. For rehearsal and performance time.

If that producer decides not to make money on a project, that’s his prerogative. But no pay to performers is abusive, unless he’s offering 40 acres and a mule after the run of the show.

Nonprofit Strategy: Managing Change is Hard; Managing Stasis is Impossible

I had breakfast with a trustee for an educational organization in a wealthy community within the last five years.

He bemoaned the fact that an über-wealthy benefactor was annually bailing them out with huge sums of money, but the organization was still always crying for cash.  And the company refused to upgrade its business practices.

“Why is she bailing them out?” I paraphrased.

“Because it’s her legacy to her kid,” he paraphrased.  “And let’s face it, for vanity.”

“And if it folds?”

“She won’t let it.”

“Are they always in a cash crisis?”

“Yes – and not only that, it’s just not serving all that many children.”

“And they can’t change the way they do business?”

“She won’t let them.”

Can’t change. Can’t succeed. Can’t close.

Bad for the organization?  Bad for the industry?  Bad for the community?

Nonprofit Management Counter-Intuition 2 — “Throwing Out the Baby with the Bathwater” Might Be a Better Risk than Listening to the Sirens

There is a Siren-like fatal lure to “almost there” for some charity leaders.

Let’s say that despite success in other programs, a few of the more ambitious risk-reward programs are flailing. The Sirens entice you to put more time, more effort, more personnel, and more money into the flailing programs.

When you explain to them that by moving time, personal, and financial resources away from the programs that are working into the programs that are not, the company risks the success of the working programs, the Sirens entice you to do it anyway.

Sirens are evil.

Why not take this opportunity to refresh your organization’s ambitions, goals, and programs? The smart move might be to throw all the programs out (at least on paper) and build a new list of activities that support the mission from scratch.

Rethinking the Group Job Interview – Consensus? Abdication? Or Focus Group?

Focus Groups

I’ve tortured people in the group interview process. I thought I was offering consensus. Buy-in. Group drive.

I was wrong.

Wrong. Wrong. Wrong.

Oh, so wrong.

To everyone I’ve ever put through that, on either side of the table, I apologize. I’ll never do it again. Promise.

There are four decisions: autocratic (I say), consultative (I say with your input), democratic (we vote, losers weep), consensus (we vote and everyone backs the decision).

As practiced, the group interview might have evolved into a method for managers to abdicate responsibility in the name of consensus. While consensus is ideal, the group-think process can too often be dominated by a crank in the corner with issues, motives, and insecurities.  And, possibly, an unknown agenda.

Group-think promises consensus but can preclude innovation.

And why would you ever choose to preclude innovation?

Disinterested Advocacy: When Issues Become Global, the Pool for Support Grows Exponentially

Women’s issues are not about women.  Race issues are not about people of color.

And when Mars attacks Oklahoma, the issues will not be about Oklahoma.

I visited a domestic abuse nonprofit.  They do great work, but are ghettoized by donors as a “women’s issue” charity.  The executive director wondered how they might be able to globalize the cause (and increase revenues).

“Domestic abuse is a societal problem,” she complained.  “And I worry that without some men providing disinterested advocacy, we’ll only attract women donors.”

But every time she interviewed qualified men for marketing or development positions (and they’d graduate to a final 10-on-1 group interview), the staff and board balked.  “Just not a good fit,” they’d euphemize.  And they’d recommend another qualified woman.

Is your charity’s issue exclusively yours?  If not, how are you communicating that?

Hiring 103: Do Unto Others, for Pete’s Sake!

Oh, those shoddy, “industry standard” hiring practices.  They’re still here.

To follow up on this, this, this, this and this,

1)      Communicate quickly, at least twice.

  • We got your resume.
  • Thanks for your interest, but you are not being considered (within a week of close).

2)      When you’ve interviewed someone, call them (no email) within a week.

  • Thanks for your interest, but you are no longer being considered.
  • We’re still interviewing people. I’ll call you on [date range].

3)      When you’ve interviewed someone more than once and have hired someone else, call them (no email) immediately.

  • Thanks for your interest, but we’ve chosen someone else.

4)      Never…

  • …send communications stating who you’ve hired (salt, meet wound)
  • …let them know they were in the final cut (see above)
  • …say you’ll be in touch and then disappear.
  • …be rude.
  • …assume job-seekers are psychics.

I died this morning.

square

I was an energetic, charismatic, visionary leader.
I worked at least 60 hours a week.
The office is by turns chaotic and paralyzed.
Some are crying.
Some are ecstatic.

Outside the charity, most don’t care.
Not their problem.

Trustees are panicking. Staff members are traumatized.
Some are taking charge, Alexander Haig-style.
Others are forming committees to decide what to decide.
Still others are composing resignations.
Reporter on line 1.

I knew every board and staff member.
And their families.
I knew every major donor.
I knew local foundation leaders.
Benefactors on line 2.
Beneficiaries on line 3.

I knew financials.
I knew history.
I had passwords.
Vendors on line 4.

I knew where everything was.
I shared that information.
But that was 5 years ago.
To employees who are no longer here.
Too bad there wasn’t a written succession policy.

Not my problem.