Clueless CEOs — Barriers To Growth, Part 4

June 2, 2014      Roger Craver

Stagnant organizations are generally marked by lousy boards and clueless, or worse, arrogant CEOs.

Without the leadership of an engaged, aware and willing-to-learn CEO you might as well forget about growth.

Why? Because there’s likely to be no serious investment funds made available … no radical organizational change, led from the top, to break down silos … no willingness to clean house and replace the barnacles of complacency with a new, can-do, must grow mindset.

Last year The Agitator asked its readers to rate their CEOs. Responses came from fairly seasoned fundraisers — almost half (47%) were veterans with more than ten years experience; 71% over five years. They worked mostly for a range of mid-sized to large organizations: 27% with organizations raising $1-5 million in private contributions; 30% raising more than $5 million.

The results reveal why most organizations are unlikely to grow.

 Only 22% of respondents said Yes, they would “nominate your CEO for The Agitator’s BEST CEO Award” (50% said No, and 29% ticked “Are you guys nuts”).

More seriously we asked: “Rate your CEO’s understanding of and commitment to effective fundraising. He or she is …”

  • A superstar — 16%
  • Gets the basics, but not a leader in this area — 38%
  • Pretty hands-off — 23%
  • More of a hindrance than a help — 23%

Almost half (49%) would replace their CEO if they had the chance!

Asked which statement best described fundraising planning ‘at the top’ in their organizations, fundraisers who responded to our survey said …

  • Program goals are discussed with fundraising an integral part of the discussion — 26%
  • The CEO’s extent of strategic involvement is: “Tell us how much you can raise” — 17%
  • More than half the CEOs simply say: “Here’s what we need … go raise it” — 58%

Asked about support from the top, 37% said fundraising support from their CEO and Board was “Lacking” … 20% said, “They’re clueless”.

And what about appreciation from the top? 40% said their CEO treats them “like an occasional visiting relative” … 24% “like the gardener”.

Whoa!

Unless fundraisers who read The Agitator are different from most others [ Ed. Note: They’re of course clearly more intelligent and committed.] this is not a healthy situation. Especially when it comes to growth.

Of course the problem is anything but one-sided. I wonder how many respondents to the survey actually sat down with their CEO and explained what it would take to grow income … how many really took an investment plan to their CEO or board (see The Investment Paradox- Barriers to Growth, Part 2) …or held a candid conversation with the CEO about how the organization’s culture stifles fundraising.

How many actually invited the CEO to accompany them to a fundraising conference to better understand what’s going on in the sector and the problems/successes of other organizations?  (See Proud to Be A Fundraiser.)

As I look back over my years at helping launch and grow advocacy organizations, I can’t recall a single example of a CEO who was NOT intimately involved in both understanding and leading the fundraising charge. John Gardner at Common Cause. Ellie Smeal at the National Organization for Women. Morris Dees at the Southern Poverty Law Center. Millard Fuller at Habitat for Humanity, and on and on.

Of course these organizations are now 40+ years old or even older, and the fire of a start-up CEO has been replaced by the cooler mindset of professional managers representative of today’s CEOs.

However, whether young or old, most organizations want or at least pay lip service to growth. It’s just that so often their CEOs don’t walk their own talk.

Instead, too many treat their fundraisers “like the gardener” or a “distant relative”, putting in little or no serious involvement, engagement or investment.

So the next time your CEO says, “Here’s what we need…go raise it”, remind her/him that you’re a fundraiser, not a magician.

What steps are you taking to educate and involve your CEO in serious discussions about growth … or are you simply dusting off your resume?

Roger

4 responses to “Clueless CEOs — Barriers To Growth, Part 4”

  1. Thanks, Roger, for continuing the “barriers to growth” theme. Years and years ago… I realized that (far too often), the weakness in fundraising participation (CEO, board, etc.) belonged to fundraisers themselves. Our inability to “enable” the CEO and the board members and others to understand what fundraising is and isn’t. Our inability – as fundraisers – to understand fund development beyond the technical knowledge of DM or grant writing or or …

    I began writing about fundraisers as “organizational development specialists” back in the 90s. The ability to go beyond technical knowledge and understand organizational and people behavior, identify what the barriers are, understand how to build learning, understanding, and ownership.

    As you note: It’s the fundraiser’s job to explain how to set a fundraising goal – not just wait for a figure to be delivered. It’s the fundraiser’s job to advocate for the body of knowledge (knowing it would be good to start, of course). It’s the fundraiser’s job to help the CEO and board understand the connection between recruitment and fundraising.

    And once the fundraisers has fought for years for all this – nurturing and advocating and seducing (lots of lunches with dessert if necessary!) … Only then can the fundraiser look in the mirror and say … “This isn’t my responsibility. I’ve done all I could to eliminate the barriers for growth, to enable the CEO and board and staff and and …. to understand and apply and own and participate. And they aren’t doing it. It is now their problem not mine. And I’m finding another job.”

    But too many fundraisers don’t own their accountability. Learn to enable. Etc. etc. Blah blah blah. So that’s my Monday morning thought. Hmmm… Perhaps a bit crabby. I guess I wish I were still in France!

  2. Pamela Grow says:

    Simone said it well. We fundraisers know this stuff. It’s our job to empower our board members in the direction of ‘good’ fundraising (otherwise they’ll be micromanaging your next appeal letter). A major focus of both my book and membership program is not asking for permission to lead, and getting everyone – board members, staff, volunteers – on board with fundraising.

  3. All I can add is “AMEN”. The more I learn, the more it all comes down to this.

  4. Roger and Simone are right on. Yet, it’s time to recognize the powerful, yet often tacit, influences of an organization’s culture. If we look at a fundraiser’s challenges based on where fundraising exists in the organization’s history and evolution (since its founding or only within the past 5 years?). What about charitable dollars’ role in the org’s revenue pie?

    If an org gets 95% of its revenue from government or earned revenue (tuition, fees for service, insurance etc), the fundraiser”s challenges are larger than if the org’s revenue ratio is the other way around.