changing leadership for today's sustainability

Changing Leadership for Today’s Sustainability

Craig Shelley, Orr Associates, Inc. (OAI) Ronald Schiller, Aspen Leadership Group

Craig Shelley, Director, Orr Associates, Inc. (OAI) Ron Schiller, Founding Partner, Aspen Leadership Group November 13, 2014

Leadership for Today’s Sustainability The CEO-CDO Partnership in a Changing Landscape

Craig Shelley, Director, Orr Associates, Inc. • Executive Director, NY/NJ, College Summit • Former CEO, Jersey Shore Council, Boy Scouts of America • Former National CDO, Boy Scouts of America • Former CDO, Greater New York Councils, Boy Scouts of

America

Ron Schiller, Founding Partner, Aspen Leadership Group

• Author, The Chief Development Officer: Beyond Fundraising • Former Vice President, New England Conservatory;

Northeastern University; University of Chicago • Senior Fundraising Roles: Eastman School of Music, Carnegie

Mellon University, National Public Radio • Former Senior Vice President, Lois L. Lindauer Searches

Introductions

• The institution’s chief executive in a paid, administrative position

• The most common titles include: President, CEO, Executive Director

CEO: Definition

• The institution’s most senior administrative officer whose primary responsibility is fundraising

• The most common titles include: Senior Vice President, Vice President, Executive Director, or Director…

…of Development, Advancement, Institutional Advancement, or External Relations

CDO: Definition

• Compass Point Nonprofit Services and the Evelyn & Walter Hass Jr. Fund: − Half of chief fundraisers plan to leave their jobs within

two years or less; 40% are thinking of leaving fundraising entirely

− 53% of CEOs say their most recent search for a top fundraiser failed to attract enough qualified candidates

− 1 in 3 CEOs say they are lukewarm about the performance of their CDO

Current Landscape

• Search experience shows that vacancies in the position of CDO are almost always the result of: − Weak partnerships with CEOs − Inability to contribute to overall leadership of the

organization as a senior officer − Less often is weakness in fundraising a major factor in a

CDO being asked to step down

Current Landscape (cont’d)

• Increased financial pressure and competition

• Contributed revenue a growing percentage of overall revenue

• CEOs are judged on financial management and fundraising performance: job descriptions, performance evaluations, retirement announcements

• CEOs in turn depend more than ever on their CDOs. “Cabinet within the cabinet”

Changes in the Role of CEO

• In research for a new book, top donors report that most of their largest gifts go to an institution on whose board they serve or have served

• Boards play critical roles in philanthropic leadership

Boards and Fundraising

• The CEO and CDO both interact regularly with board members

• Today’s CDO has as much or more access to and interaction with the board than other officers—often more interaction than the CEO

• Board members are the boss’s bosses

• The CDO must be sensitive and smart about this privileged position

Boards, CEOs, and CDOs

THE CEO

• Staff & General Leadership

• Fundraising

• Board Engagement & Recruiting

Key Functions

CEO Leadership - Then

CEO

Program

Board

Develop-ment Finance

Adminis-tration

CEO Leadership – For Sustainability

CEO

Program

Board

Develop-ment

Finance

Adminis-tration

CEO Fundraising - Then

CEO

FUNDRAISING Events Major Donors Mail

Board Giving

CEO Fundraising – For Sustainability

FUNDRAISING Events Case Impact Online Giving

Planned Giving Vision Major Donors Crowdfunding

Vision Mail Giving Societies

Board Giving

CEO

Board Engagement & Recruiting Case Study

THE CDO

• “The role is a broad institutional leadership role. CDOs need broader talents and should be prepared to be players in the running of the business of their organizations.”

Ann McLaughlin Korologos, former United States Secretary of Labor and chair of multiple boards

An Institutional Leadership Role

• Expert in: − Business Principles and Practices − Governance − Finance, budgeting, investment − Communication, marketing, branding − Strategic and long-term planning − Information technology − Crisis management − Legal affairs

Today’s CDO

• Interacts with more constituencies than any other person, except perhaps the CEO

• Usually has a closer relationship with a larger number of board members than any other senior officer

• Is expected to understand, internalize, and be able to articulate in compelling ways the mission, vision, and specific strategic plans of the institution

Today’s CDO

• Engagement with every part of the organization

Access, Perspective, and Responsibility


• Engagement with the boss’ bosses




• Opportunity to serve as strategic thought partner





• Marriage – changes in CEO role have made excellent chemistry essential, for BOTH






• Trusted partner






• Trusted partner or liability


• Relationship builder in chief

CDO Roles and Responsibilities Beyond Fundraising


• Shaper of culture: philanthropic partnership


• Gary Comer: “My wife Francie and I have been determined to find the most effective ways to give back to my old neighborhood. We have chosen to do that by focusing on fundamental needs, such as children’s health and education. What could be more important than that?”

Before Gary’s death, Gary and Francie Comer gave the University of Chicago $20 million to build the Comer Children’s Hospital, $21 million to add a pediatric emergency room, and $42 million to expand the hospital and add a Center for Children and Specialty Care. This is in addition to many wonderful gifts in the neighborhood including the Comer Youth Center, gifts for the Revere School, and support of neighborhood housing initiatives, as well as gifts to the University for the College, the School of Social Services Administration, and the Physical Sciences Division.

Partners


• Shaper of culture

• Strategist and planner





• Governance expert and trusted advisor on board matters





• Governance expert and trusted advisor on board matters

• Trusted thought partner and sounding board


• Flag bearer


• Flag bearer

• Visionary and confident sight-raiser


• Flag bearer


• Talent magnet and builder of winning teams


• Flag bearer


• Talent magnet and builder of winning teams

• Mentor to future CDOs


• There are challenges in the role and its evolution, to be sure. For some, these changes make the role more appealing

“The job is much more challenging and complex today than even a few years ago, but for the right person, it’s a more interesting job as a result”

Cecile Richards, President, Planned Parenthood Federation of America

The Right Person

PARTNERSHIP

• In interviews with CDOs and CEOs with successful partnerships, the word “marriage” came up again and again

• What does this mean for search? − CEOs: Find a thought partner – in search consultant,

and in CDO − CDOs: Don’t chase salary or title. Find a partner whose

vision and style are highly compatible

Marriage

• Learn and Adapt to CEO style

• Make clear that you are on the CEO’s team, and a full participant on that team; don’t make the CEO babysit

• Prove your value as a thought partner

• Show, don’t tell: Don’t be a dream killer

• Avoid WADITWAs

• Facilitate CEO relationships, and set the CEO up for wins, especially with board members

Building an Effective Partnership with the CEO: What should the CDO do?

• Be clear about vision, and be sure your CDO understands and fully embraces the vision

• Don’t chase resumes with big numbers; find a thought partner

• Allow CDO to be at the table: in governance and financial planning

• Ensure that entire leadership team owns responsibility for goals and culture of belief and confidence

• Regularly discuss key stakeholders, including board members

• Communicate often – daily is not too much

Finding the Right CDO Partner and Sustaining an Effective Partnership: What can CEOs do?

Craig Shelley (212) 424-1934 [email protected]

Ronald Schiller (970) 315-2818 [email protected]

Questions?

changing leadership for today's sustainability

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