Special Discount Opportunity for Win-Win for the Greater Good

September 2, 2014

Now also available on Kindle

Final Cover for web

I am thrilled with the exceptional testimonials and reviews for Win-Win for the Greater Good, the most comprehensive “how-to” guidebook on the development of cross-sector partnerships – partnerships between the nonprofit, for-profit, education and government sectors.

Called a “must-read for any organization” by Howard Behar, President (retired) Starbucks Coffee, Win-Win provides a proven-effective 12-step process based on over 35 years of partnership development on the local, regional and national levels.

To receive a 20% discount ($4) off the $19.95 retail price of the book, visit http://www.createspace.com/4384579 and in the checkout process put the following code in the box: JHHVKMHW.

Casey Sheehan, CEO, Patagonia stated, “Win-Win for the Greater Good provides the how-to blueprint for organizations of any size any sector to build highly productive partnerships. It reveals the true essence of success-focusing on the business objectives of your partner, while striving together to create a greater good.”

Peggy Duvette, former Executive Director of WiserEarth
said, “Worth its weight in fundraising goal. Win-Win for the Greater Good turns the tables on traditional approaches to nonprofit/for-profit funding relationships. It challenges you to build a business value proposition and provides 30 ways to beneficially impact your organization through partnerships, while greatly increasing your service impact.”

“Win-Win, lucidly captures Bruce Burtch’s decades of practitioner wisdom on cross-sector partnerships. The book is filled with rich examples and insightful practical guidance on how to build powerful partnerships. Read it and learn from a master!” James E. Austin, Professor Emeritus, Harvard Business School.


Great America: Déjà vu, all over again

June 18, 2014

Snoopy, Bruce and Charlie Brown
(Snoopy, Bruce and Charlie Brown)

Yogi Berra had it right: It’s like déjà vu all over again.

Today I stood center-stage at the Great American Theater, the largest live performance auditorium at California’s Great America in Santa Clara. The occasion was the annual convention of ACE, the American Coaster Enthusiasts, those wild and daring people who travel the country experiencing every form of twist and turn, soaring heights to plunging depths, of the country’s most challenging roller coasters. Timid is not a word heard in these surroundings.

I had been invited as their special guest, because on March 20, 1976 as Public Affairs Manager of what was then called Marriott’s Great America, I had the wonderful and rather daunting (at age 25) responsibility of designing the opening promotion of Great America, the largest project at that time in the history of Marriott Corporation.

Facing the crowd of 350 coaster enthusiasts, I drifted easily back to those earliest years of my career, and especially to a particular time when I stood at that exact spot. It was 1976 and I had invited Clint Eastwood and Merv Griffin to visit Great America. I wanted them to experience the simply outstanding live entertainment performances that at the time were seen as the standout feature of the theme park. The show that was playing that first year was Music America, a high energy musical romp through 45 Americana songs. Performed by an extremely talented cast of 25 high school and college-aged men and women, supported by a 17-piece orchestra made up of similar ages, this extravaganza climaxed with an audience standing ovation at all performances.

At the close of that particular show as the audience filed towards the exit doors, I escorted Clint and Merv onto the stage. We lifted a portion of the huge red velvet curtain and we proceeded under to greet the performers. Emerging on the other side these two internationally-known stars brought the stretching and exhausted cast to a startled halt. After exchanging pleasantries and a quite a few OMG remarks, Merv Griffin offered them the ultimate compliment. He said, “There is nothing on Broadway that is anywhere near as entertaining as what we just witnessed.” These words made everyone’s day, probably year.

As I emerged from the theater this afternoon, I walked slowly, dreamily, through a very changed Great America. Gone were the strolling marching bands, steam driven train with its haunting whistle, gone were Bugs Bunny and the other Warner Brothers characters, replaced by Snoopy, Charlie Brown and friends. What once was a broad offering of live entertainment constantly erupting from all directions has now morphed into a primarily ride-focused amusement park. Still very nice, but for me, not as nice.

As I left in the late afternoon I noticed a sandwich board near the front entrance. It said that on a day coming up California’s Great America would be donating a portion of that day’s proceeds to the Avon Walk for Breast Cancer. I flashed-back to 1976 when I had developed a partnership between Marriott’s Great America and the March of Dimes to help promote the opening of our new theme park, while raising much-needed funds to fight children’s birth defects. That partnership raised $2.5 million (a lot of money in 1976), a whopping 40% more than had ever been raised in the Western Region of the March of Dimes. That partnership is considered the first cause marketing program in history, and as the designer, I have been called the “father of cause marketing” by the Cause Marketing Forum.

For me, today was full of intense emotion, revisited experiences, and once again, enjoying the exploding laughter of a family getting soaked together on the water ride. As I drove away, I remembered the line I wrote for our highway billboard on the opening day 38 years ago: Super Smiles and Summer Fun, Welcome World, We’ve Just Begun.

Déjà vu, all over again, again.


Stakeholders: Take advantage of your full team to generate partnership success

May 29, 2014

Part 17 in the Win-Win for the Greater Good series

Wikipedia defines a stakeholder as: “Any person, group, organization, or system who affects or can be affected by an organization’s actions.” Look around at all the people who are involved in your organization, both internally and externally: your employees, your customers, your shareholders, your vendors, your community, your business partners, government regulators, the media – these are your stakeholders and these are the people who really matter. These are the people you must protect, serve and value the most. When you focus your efforts on bringing value to all your stakeholders, you create the greatest beneficial impact for your organization. The converse is also true – if your stakeholders are not engaged, not valued, they have the potential to have a negative, and sometimes significant, impact on your organization.

Here is a diagram that illustrates the many stakeholders of a typical for-profit organization.

Stakeholders

The stakeholders for a nonprofit organization are very similar. Your shareholders are your donors, your customers are the people you serve, your business partners are your volunteers, etc.

As you see, there is an interrelationship, indeed interdependency, where all stakeholders are involved in a give-and-take relationship with the organization of which they are stakeholders. At first glance, it would seem that the relationships are primarily between the organization and the outer circle of their stakeholders. However, as this diagram reflects, the stakeholders themselves can have separate relationships between themselves, and thus impact and influence the entire organizational ecosystem.

When an employee believes that their organization has a particularly strong commitment to being a good citizen in their community, they will loudly and confidently communicate this belief. Consequently, the stakeholder and communication/effect cycle is potentially more interrelated. The ramifications can be significant, as any positive or negative influence a stakeholder has on other stakeholders can have a corresponding positive or negative influence on the organization itself.

The very good news is that when an organization is focused on the success of all stakeholders, all stakeholders are focused on the success of the organization. And when an organization is focused on not only benefiting all stakeholders, but additionally in serving the greater good through a well-designed and well-executed cross-sector partnership, your organization will begin to glow.

Your stakeholders will provide an honest critique because they have a vested interest in the success of your organization. They will provide creative input, business contacts, perhaps funding, and a myriad of other assets that will serve your cross-sector partnership endeavors and your organization well.

Please visit http://www.bruceburtch.com for more information about cross-sector partnerships and Win-Win for the Greater Good.


What to Avoid When Developing a Cause Marketing Campaign

April 10, 2014

Part 14 from the Win-Win for the Greater Good series

Even with the best intentions, sometimes among major players who should know better, cause marketing can go terribly wrong. The mantra of cause marketing, indeed of all cross-sector partnerships, is that the partners need to be well aligned. Their missions, their products or services and how they present their campaign to the public must make sense as a partnership. The public becomes skeptical when they smell or taste that the campaign is purely done to make money. Here are some bloopers.

Kentucky Fried Chicken (KFC) Pothole Program
Recognizing the ubiquitous problem that many of our roads and highways have fallen into disrepair, KFC thought that it would be a good idea if they teamed up with several cities around the country and filled in those cities’ potholes. So the public would know who was making this generous donation, KFC painted their bright white logo on top of the freshly laid asphalt. As you see in this promotional photograph, “The Colonel” is pointing his cane at a recently paved, logo-covered pothole.

KFC Colonel

So we see potholes filled with oily black tar, covered with a KFC logo, which will be run over by cars, slowly but surely erasing the logo. This message has the unintended effect of linking KFC and its heavily-oiled, deep-fried chicken with steaming oily black tar and inadvertently, brings a whole new meaning to “road kill.”

I hate to pick on KFC, but if the bucket fits. After the above-described campaign, they developed a partnership with Susan G. Komen for the Cure and produced a second highly-questionable campaign where they really stuck their wing in it.

KFC Buckets
“Buckets for the Cure” Campaign

KFC and Susan G. Komen for the Cure launched a campaign in which they printed pink KFC buckets with the breast cancer ribbon and then handed their customers the bucket full of fried chicken wings, legs and breasts. $.50 of the sale of each bucket went to the charity. What were they thinking? A respected nonprofit organization dedicated to education and research about breast cancer promoting deep-fried food, in pink buckets.

Yoni Freedhoff of Weighty Matters said: “So, in effect, Susan G. Komen for the Cure is helping to sell deep-fried fast food and, in so doing, help fuel unhealthy diet and obesity across America, an odd plan given that diet and obesity certainly impact on both the incidence and recurrence of breast cancer.”

What was this campaign really all about? Yes, money. KFC donated more than $4.2 Million to Susan G. Komen for the Cure, the largest single donation in organization’s history. Roger Eaton, President of KFC Corporation said, “This was a campaign that allowed our customers to fill up their stomachs and their hearts at the same time.” Needless to say, this campaign caused a media and consumer controversy which, if only briefly, damaged the credibility of Susan G. Komen… but it made lots of money.

The investor extraordinaire, Warren Buffett, once said, “It takes 20 years to build a reputation and five minutes to ruin it.” There is nothing worth the risk of destroying a hard-earned reputation.

The key points I would suggest you take away from this discussion on what not to do in cause marketing:
• Do absolutely nothing that will hurt your brand. Good reputations are hard to gain and much harder to regain if lost.
• Never be just about the money; greed is ugly and hard to hide.
• Always put the cause first, which will gain attention, loyalty and finally, financial success.
• Be unique! Stand out from the crowd! Don’t be a chicken! (sorry)

Wrapping Up
Cause marketing comes in all shapes and sizes and can be an exceptionally effective fund development and brand awareness-generating program because it:
• Leverages the marketing clout, assets, intelligence and connections of organizations from different sectors
• Focuses on doing good, and the public responds very well to organizations doing good
• Motivates your employees, customers and all stakeholders of your organization
• Attracts media attention…for free!
• Generates sales and raises donations
• Delivers what one organization can’t possibly do alone

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good.


How to make Cause Marketing work for your organization

April 2, 2014

Part 13 from the Win-Win for the Greater Good series

6. Cause marketing Definition

Cause marketing is a specialized subset of cross-sector partnerships, and like all cross-sector partnerships, cause marketing is a partnership between two or more sectors. Though in cause marketing, the partnership is primarily between nonprofit and for-profit organizations and is primarily about marketing, sales, fund development and increasing brand awareness. Cause marketing has grown by leaps and bounds, and in 2013 an estimated $1.78 billion was spent in North America alone on cause marketing campaigns.

Cause marketing is a marketing campaign with specific strategic goals and objectives. It is not an event, sponsorship or one-time project and certainly not philanthropy. You will find as we explore further into this area that a well-strategized and well-developed cause marketing campaign will bring you many of the benefits we have discussed in cross-sector partnerships.

While there are many definitions of cause marketing, the following is how I prefer to define it:
Cause marketing is a partnership between two or more nonprofit and for-profit organizations whereby each party receives benefit toward their individual marketing objectives, while striving through their combined resources to create a greater good.

Let’s break this definition down to see why this particular description is a bit more comprehensive, and possibly more demanding among others available, yet touches upon the foundational elements of highly successful cause marketing campaigns.

Partnership: Going into the partnership, both sides should come together as equals. This equality is necessary for a fair, trusting and successful working partnership. Without this trust, without this focus on true partnership, your campaign is dead in the water before it’s launched.

Two or more: In most cases, a cause marketing partnership is between two partners, but as we have seen, sometimes partnerships can have three and even four sectors involved. And sometimes, even multiple partners within sectors. Bringing multiple partners together can leverage the success of the marketing objectives. So don’t limit your partner opportunity thinking. More may be better, or maybe not, based on your marketing strategy and campaign needs.

Individual marketing objectives: All sides may be approaching this partnership with very different marketing objectives and internal agendas. This is to be expected. Having clear communication and understanding about these separate agendas and objectives and then working toward the benefit of all partners will greatly enhance the overall success of your cause marketing campaign.

Combined resources: Possibly more than in any other marketing or promotional endeavor, the successful execution of your cause marketing strategy and resulting campaign creates a whole far greater than the sum of its individual parts. You just can’t possibly accomplish alone what you can do working together for your mutual success.

Create a greater good: This is the part of my definition that seems to be left out in every other definition I’ve ever seen. However it is this focus on the greater good that sets the foundation for your successful campaign. Focusing on the greater good is the key ingredient that will motivate all partners and stakeholders involved in your campaign. The greatest impact, the real magic, comes when your campaign focuses on the people, issues or environment that will benefit from the campaign:
• Those whose lives will be saved because they are now prepared for an emergency
• The women and men in the future who will not get breast cancer because of the research you are helping to fund
• The homeless who will be given shelter
• The children who will be saved from starvation
• Addressing serious environmental situations

This is the greater good. You can address any nonprofit’s cause, but to be optimally successful, you must focus on who or what will benefit from your effort. Nonprofits as such are not causes in and of themselves, but facilitators that bring much-needed services and support to the cause, which of course, is the people, environment or social issues themselves…the greater good.

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good


Yes, you can achieve nearly 70 benefits through cross-sector partnerships

March 27, 2014

Part 12 from the Win-Win for the Greater Good series

As we discussed in the last blog, nonprofits can receive 31 distinct benefits by working in partnership with for-profit organizations, and the number keeps growing. And for-profit organizations can receive 38 distinct benefits in such cross-sector partnerships. Now that’s a heck of a lot of benefits, and far more than most people would ever imagine.

Let me list just the top 10 benefits here and the complete listing of all 69 benefits can be found in the free Resource Center at http://www.bruceburtch.com.

Top 10 benefits for-profit organizations receive from partnership with nonprofit organizations

Note: These are not in any particular order, other than increasing sales, which is nearly always noted as number one.

1) Increase sales of products or services
2) Increase employee engagement, job satisfaction and reduce turnover
3) Increase customer and brand loyalty
4) Attract the best employees through community involvement
5) Increase community goodwill by having your leadership and organization recognized for the good they create in society
6) Increase shareholder return
7) Reach new markets and new customer demographics
8) Increase employee skill development, team-building and leadership skills
9) Draw media attention and coverage for free
10) Attract new business partners and relationships

Nonprofits are right behind with the potential to have at least the 31 benefits – those we have discovered so far. Here are the top 10 benefits nonprofits can receive.

Top 10 Benefits Nonprofits Receive From Partnering With a For-Profit Organization

1) Increase funding
2) Connect to new business partners and strategic relationships
3) Receive pro bono services
4) Attract loaned executives
5) Attract in-kind donations (equipment, furniture, computers, software, etc.)
6) Provide professional development for employees
7) Attract new volunteers
8) Provide volunteer management
9) Increase media coverage and improve media relationships
10) Develop earned income opportunities

By The Way: Which Provides More Value: Money or Brains?

When considering a cross-sector partnership, not surprisingly, the first topic that seems to arise is money. How much should the nonprofit ask for or how much should the for-profit consider donating? While money usually enters the conversation at some point in a partnership discussion, it’s short-sighted to think that money is the only or even the best value to receive in a partnership. Quite simply: If you focus on money you may leave a lot of money/value/assets on the table, never to be seen again.

Karen Baker, California Secretary of Service and Volunteering, offers: “A million dollar value of brainpower is so much more helpful than a million dollars. I can find money. I look for talent and I mean top-shelf talent, which you can shop for when you’re shopping for public/private partnerships.”

This belief is echoed by Dannielle Campos, Senior Vice President and National Philanthropy Program Manager for the Bank of America Charitable Foundation. Dannielle said, “When working with a nonprofit it can’t be just about the dollars but also about the other human resource capital you can bring if that company is interested in making, really building a strategic partnership with a nonprofit in their community. The dialogue has to be bigger than the check and the nonprofits usually need more than just money.”

Here is the underlying secret to success of cross-sector partnerships: first seek brains…and the money will follow.

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good.


Achieve more benefits than you can possibly imagine through cross-sector partnerships

March 19, 2014

Part 11 from the Win-Win for the Greater Good series

From my experience, most people and the organizations they represent begin their exploration of a partnership with a fairly limited list of partnership goals. Usually the “ask” is fairly simple and straightforward. The nonprofit might approach a for-profit organization for a donation to a particular project or program, or to sponsor a table at their annual fundraising gala. The for-profit organization may be seeking to raise the morale of its employees by arranging a one-day event where the employees would volunteer at a local homeless dining room or shelter. The misconception here is that cross-sector partnerships are not about philanthropy, cash donations, “one day and done” volunteer events, or sponsorships such as a breast cancer 3-day event or pledge walk. By definition, a partnership is a relationship. Many times there are contractual stipulations, but in nearly all cases, the partnership is based on a relationship meant to be long-term, jointly beneficial with many linkages.

In my workshops, participants are asked to write down all the benefits they think a nonprofit organization can receive by working with a for-profit organization in a partnership. Then we flip the exercise around, and they write down all the benefits they think a for-profit organization can receive by working in partnership with a nonprofit organization. And what I have found is startling.

To the question of how many distinct benefits a nonprofit can receive from partnering with a for-profit organization, the answer is, at least as of this writing: 31 distinct benefits. And to the question of how many benefits a for-profit organization can receive in a partnership with a nonprofit organization: 38 distinct benefits. That is one heck of a lot of benefits for each partner to receive in a partnership. However, what surprises my workshop attendees the most is the fact that for-profit organizations can potentially receive more benefit than can nonprofits. Most people think it would be the other way around.
These benefits are the real “secret sauce” of my work. There is an extraordinary amount of benefit that can be achieved by all partners in a well-designed, trusting, objectives- driven, cross-sector partnership. This has been proven so often over the last 35 years that I can make the following statement with absolutely no reservations:

2. The Promise

An innovative public relations program, the most clever social media campaign, the funniest or most emotional advertisement, the deepest discount or the biggest sale, the largest benefit race or the most successful fundraising gala – none of these can come even close to the multiple benefits that come from a cross-sector partnership.

Rather than detail all 31 nonprofit benefits and the 38 for-profit benefits here, in the next part I’m going to list the 10 most important ones, at least in my opinion, from each category. The complete listing of all 69 benefits can be found in the free online Resource Center at http://www.bruceburtch.com. By the way, you may be able to add even more benefits for either list, and I ask you to email me personally with your discoveries.

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good.


True sustainability comes through creating multiple links between organizations

March 13, 2014

Part 10 from the Win-Win for the Greater Good series

Imagine two pieces of leather connected by one simple thread. You hold one piece and your friend holds the other. Now imagine that you both pull on the separate pieces of leather. The thread breaks very easily. Now imagine the two pieces of leather are connected by three threads. You pull again. You feel a brief bit of resistance from the three threads, but still they break without much effort. Now imagine that there are 10 threads connecting the two pieces of leather. Now pull, pull hard. With quite a bit of effort you might be able to break a few of the threads, but probably not all 10. In any case, the resistance was strong, the bond of the 10 threads held firmly.

And so it is with cross-sector partnerships. When the relationship consists of only one linkage between the organizations, let’s say the for-profit organization buys tickets to a nonprofit’s annual fundraising dinner, that link (or thread) can easily be broken. For example, no one from the for-profit organization may actually go to the dinner but it wanted to show their support for the nonprofit’s mission. There was no bond, no real relationship. Now imagine that there are three links between the for-profit and the nonprofit – the for-profit organization bought the fundraising dinner tickets, had donated some used computer equipment to the nonprofit and some of their employees spent a Saturday painting the nonprofit’s dining room where they provide free meals to the homeless. Now there is a pretty strong relationship with these three linkages between the organizations. Each year when the for-profit reviews their community relationships and contribution strategy, they will look favorably upon this nonprofit organization where they have developed three good links.

Now imagine the two organizations have developed 5, 6 maybe even up to 10 linkages. Now imagine trying to pull these two organizations apart. It’s very difficult, indeed darn near impossible, to break apart such a strong, binding relationship.

I use this example for two reasons. When multiple linkages are developed between the for-profit and nonprofit organization, a very strong bond and relationship is established over the years. This nonprofit organization is uppermost in the for-profit’s contribution strategy. Their employees are volunteering time to serve that nonprofit and their organization is receiving the benefit of higher morale and employment retention because of the satisfaction they receive from working in the community on their company’s behalf. Going down the list of potential linkages, the individual partners realize that many if not all of those involved in their organization have become engaged in this relationship, and all are benefiting from it. So much good is coming from this relationship, from these linkages and benefits.

The second reason I give this example is what happens in challenging economic times. When a down economy may cause a for-profit company to struggle, they will look to areas where they can decrease their expenses, and naturally, one of the areas they will analyze is their corporate philanthropy and their nonprofit relationships. If their management, community relations department or foundation decides to reduce their annual contributions by say 10%, who will they cut out of their nonprofit funding or partnership plan? Yes, the easiest to come off the list are those organizations where they have the fewest linkages. While these nonprofits may be doing good work in the community and the company likes supporting them, the bond between the nonprofit organizations and the company is rather weak.

Now just try to recommend pulling funding and company support away from the organization with whom the company has spent many years developing a close and strong partnership relationship, and where they have 5, 6, or maybe 10 linkages. One of the company’s senior managers is probably sitting on the Board of Directors of that nonprofit organization, and they certainly are going to object. The company’s employees who feel great pride in their commitment and volunteerism to that nonprofit will not want to see any change. The media coverage that the company has received from the relationship would stop and they don’t want to see that happen. There is a long list of reasons why the for-profit will not want to sever ties with organizations where they have developed such strong linkages.

This is also a very clear message to nonprofit organizations. In difficult economic times, the companies that have the strongest linkages and partnerships with a nonprofit will, to the extent that they can, fight hard to continue to keep that partnership going. They have too much to lose and will receive too much resistance from their employees and all those involved with their organization. In most cases, they will look to lessen or possibly terminate their relationships/ funding with other nonprofit organizations with whom they have fewer linkages and a weaker relationship. Don’t be on that list.

Nonprofit, for-profit, education or government sector – it doesn’t matter. The more threads, the more benefits developed between the organizations through cross-sector partnerships, the stronger and more lasting the relationship becomes, and the benefits to all partners and their stakeholders continue to grow.

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good.


Turning the Tables: Presenting a Business Value Proposition

March 6, 2014

Part 9 from the Win-Win for the Greater Good series

The usual nonprofit/for-profit scenario is that the for-profit organization is providing funding in a more philanthropic manner, while the nonprofit is seeking funding to meet the needs of its organization’s mission and services to the community. Business value is rarely part of the equation. Yet providing a mutually beneficial business value is what creates a strong attractiveness to work together and subsequently, a much more lasting bond between the organizations.

Think about the typical situation. A nonprofit organization has a particular need or program it wishes to develop that requires external funding. They write up a carefully prepared description of this need, how many people it will impact and how this need or program will further their community mission. They certainly will estimate the amount of money that seems reasonable to request from a corporate funder. This amount may be based on the for-profit’s past giving history to this organization, or what the for-profit has given to other nonprofits before. The nonprofit is very careful not to ask for too much, yet they want to ask for enough to impact their need.

The nonprofit also realizes that the corporate funder or local business is probably being approached by many other nonprofit organizations seeking funding. So they want their presentation to have dramatic impact, a strong case for funding. That is usually the nonprofit’s primary focus – a strong argument for the needs of their cause.

Now let’s turn the tables and look at this situation from the for-profit organization’s point of view. Imagine you are a for-profit executive who has been listening to or reading proposals like these typical nonprofit pitches, over and over again. And in walks a nonprofit executive with a well thought out, business value proposition which clearly shows that by working with their nonprofit your for-profit business will receive multiple benefits – benefits such as increased sales of your products or services, ways to increase the morale of your employees, opportunities that will raise your brand awareness, and a long list of other benefits. Now that is a very different approach. Which would be most effective?

What I mean by business value proposition is that each side addresses the marketing and business objectives of the potential partner. They have done their homework, read the other organization’s promotional materials and annual report, conducted an Internet search for press coverage and other information about their potential partner, maybe even talked to a friend who works or volunteers at that organization, and so they have a good understanding of the business priorities of this potential partner. With this understanding, they put together a presentation which shows that by working with their organization (for-profit, nonprofit, education or government), multiple benefits towards the others business or mission objectives can be achieved through a partnership.

This is the business value proposition approach, and it is by far the most successful way to create a lasting cross-sector partnership and bring multiple benefits to all partners. By understanding this business value mindset you have a huge advantage over your competition, no matter which sector or side of the partnership equation you come from.

I have worked with well over 150 nonprofits and rarely have I seen nonprofits utilize this business value proposition approach. Yet this is exactly how for-profit businesses operate internally. A corporate marketing or sales proposal will not see the light of day unless it provides a solid business value proposition for increasing their business. In other words: If it doesn’t make dollars, it doesn’t make sense.

So it cuts both ways. If you don’t take the effort to understand the needs and business objectives of your potential partner, how can you possibly expect them to want to support and engage in the needs and business objectives of your organization? Of course the good news is, when you present a solid business value proposition and carefully listen to theirs, you have the foundation for a truly successful cross-sector partnership.

Please visit http://www.bruceburtch.com for more information and to view Win-Win for the Greater Good.


Take your organization from good to great!

February 14, 2014

Good to great B&W

Part 4

In Jim Collins’ book, Good to Great, he described a “great” company as one company whose financial performance achieved several multiples better than the stock market average over a sustained period. He also attributed the main factor for achieving this greatness as having a company focus its resources on its particular field of competence. Much has changed since this was published in 2001, especially the fast rising tide of consumer concern, and in some cases, demand for the business community to be more focused on sustainability, being good citizens, and giving back to their communities.

In Good to Great, Collins identifies 11 companies (Gillette, Kroger, Walgreens, Wells Fargo, Phillip Morris and others) he felt had made this transition from good to great. The standard he used was that these companies had either met or underperformed the stock market for a 15 year period and then transitioned to providing returns of at least three times that of the stock market over the subsequent period.

In Firms of Endearment published in 2007, authors Raj Sisodia, Jag Sheth and David B. Wolfe, challenged the more traditional capitalistic understanding as to what is seen as being a successful business. Their book promotes the need for a “new capitalism of caring” with its focus that all stakeholders must be equally valued. This approach mirrored my own beliefs and experience that there was a much better way for corporations to benefit everyone involved with their organization, both internally and externally, and not just their shareholders.

The authors of Firms of Endearment took a very different path in their analysis. Their research sought out companies that strived to “endear” themselves to all their stakeholder groups -customers, employees, partners, communities, and shareholders. They looked for companies that aligned the interests of all stakeholders in such a way that no stakeholder group gains at the expense of other stakeholder groups. The companies they selected included Amazon, BMW, Container Store, eBay, Google, Patagonia, Southwest Airlines, Starbucks, Whole Foods and others.

When the authors of Firms of Endearment completed their analysis of just the one category of stock market performance and the return to investors during the period of 1996 to 2006 (the primary focus of Good to Great, they found that:

1) Over a 10-year horizon, Firms of Endearment companies outperformed the Good to Great companies by 1026 percent to 331 percent (a 3.1 to 1 ratio).
2) Over five years, Firms of Endearment companies outperformed Good to Great companies by 128 percent to 77 percent (a 1.7 to 1 ratio).
3) Over three years, Firms of Endearment companies performed on par with Good to Great companies 73% to 75%.

By focusing on the benefits to all stakeholders, the Firms of Endearment companies met, or in the five and 10 year periods, greatly outperformed companies that focused primarily on stock performance and return to investors. This message cannot be emphasized enough. The authors summed up this comparison by saying that they had a “seismic disagreement” with Good to Great when it comes to defining what is “great.” They concluded, “To us, a great company is one that makes the world a better place because it exists, not simply a company that outperforms the market by a certain percentage over a certain period of time.”

Please visit http://www.bruceburtch.com for more information

Note: If you wish not to receive this ongoing series on the multiple benefits of cross-sector partnerships, please do not unsubscribe. Drop me an email at bruce@bruceburtch.com and I will take you off this particular series. Thanks!