Is Blackbaud Too Nice?

June 5, 2012      Admin

Fundraisers devote a lot of energy – probably too much – to social media, mobile and the next new thing.

We neglect to our detriment strategic focus and concern about the important and fundamental ‘plumbing’ of contemporary fundraising – the database, CRM, eCRM platforms and other fundraising software applications.

No matter how sparkling, shiny, fun and noble the great ideas and theories we espouse are, the fact is, without adequate ‘plumbing’ neither single ideas nor the overarching grail of integrated, multi-channel marketing and fundraising will hold much water.

I decided to deal with the essential importance of fundraising plumbing last week when Melanie Mathos, the tireless and effective PR evangelist for Blackbaud, called to let us know that the Blackbaud-Convio merger had gone through. She then energetically proceeded to outline the exciting developments ahead and urged us to check out the websites for more information.

Normally Tom and I pretty much ignore such exhortations. But Melanie’s authentic enthusiasm is irresistible. And so is the undeniable fact that Blackbaud+Convio now massively dominate the world of fundraising and advocacy tools and services on which nearly 30,000 organizations currently depend.

After reviewing the combined array of products and services that the new and larger Blackbaud now represents, and given the changing needs of our sector, I came to this certain conclusion:  Blackbaud is simply too nice.

Before I explain the dangers of a ‘nice’ Blackbaud, let me first offer this caveat. Two of The Agitator’s sister companies – DonorTrends and TrueGivers – compete with Blackbaud in the predictive analytics, modeling/scoring and donor screening end of the business. Consequently we watch what this dominant player does more closely than most.

I do understand that Blackbaud, like all market leaders, has its share of detractors. No question in my mind that these folks would never, ever place the adjective ‘nice’ anywhere near the Blackbaud name.

Some (irrationally) fear its sheer size and dominance in the market. Others (irrationally) can’t abide the fact that it makes a tidy profit. And still others (irrationally) simply don’t like Blackbaud for reasons they’re unable to cite with any specificity.

Before I (rationally) reveal my fears, let me first share why I like and admire Blackbaud.

  • First of all I like Blackbaud’s folks. I’ve dealt with scores of ‘em from the software engineers and product teams in Charleston to the analysts and datameisters in Cambridge. And also with their social and online media folks, who as best I can figure live mostly in virtual habitats all over the place. To a person I’ve found them all concerned with our space, committed to serving their clients, and trying their utmost to figure out future needs that will have to be met. No ‘empire of evil’ – as some detractors label the company – would ever field an army this nice.
  • Second, I like Blackbaud because of its extraordinary reach in our market. Praise ‘em or damn ‘em, for 30 years they’ve provided a fundamental data infrastructure – the plumbing – to which tens of thousands of nonprofits owe their existence. And, more importantly, as times change they’ve invested in improving their toolset. Yesterday, packaged software, today online, along with a serious commitment to support and training in a market that changes personnel even more than Tom changes shirts.
  • Third, I like Blackbaud because they make money. They make it not only for their shareholders but also for re-investment in new tools, techniques and skill building among their clients.

Frankly, it’s important to all of us – even the detractors – that Blackbaud succeed. I wouldn’t be saying this if there were 10 or even 5 other companies like them in this space, but there aren’t. Blackbaud rules.

So what Blackbaud does on the plumbing end of things – from donor management and CRM to online engagement, advocacy, and analytics – Luminate and Blackbaud CRM will ultimately affect us all in terms of how we more effectively translate ideas, use existing and emerging media, and achieve the integration of all this to produce significant cost-effective results for our organizations.

Of course with great market power and presence comes great responsibility, not to mention opportunity.

And, it is particularly in the area of ‘opportunity’ that I fear Blackbaud is simply too nice.

By ‘nice’ I don’t mean gentle or polite (although they seem to have great manners and are sociable). I mean they do their best to keep a plethora (too damn many) of software applications, platforms, and data sets operating across a varied and diverse client base that ranges from the very smallest to the very largest nonprofits in North America and Europe (and they are even down under with Tom).

With the Convio merger Blackbaud now finds itself fielding and supporting 21 online and offline fundraising and constituent management platforms and a dozen different brands. The sheer number of offerings raises an important and concerning question in my mind.

Has Blackbaud become a pre-bailout General Motors … Pontiac, Chevrolet, Buick, Oldsmobile, Hummer, Saturn, Cadillac, Saab, and GMC Trucks?

Raiser’s Edge, eTapestry, Blackbaud CRM, Luminate, Common Ground, NetCommunity, Friends Asking Friends, Target Analytics, Altru, Sphere, Nonprofit Central, and Blackbaud Social are just a few of the countless offerings we found when exploring the vast Blackbaud website.

Will Blackbaud go the route of a re-structured General Motors and kill off some of its ‘brands’ to insure that the best, strongest, and those most adaptable to innovation and the fast-changing world of fundraising survive? I don’t know the answer, but I’d argue that they should.

And that’s where being too ‘nice’ comes in. No one wants to say ‘goodbye’ either to loyal clients or the revenue they bring. On the other hand, a client base that’s too entrenched in the old and won’t move to the new will ultimately serve as a drag on innovation – an element that will prove essential in coming years.

In short, a too ‘nice’ Blackbaud will favor the status quo and heed the whining of clients who don’t want to change (“Don’t get rid of my old Raiser’s Edge”), thus losing the opportunity to put additional resources and talent on improving current products that better meet today’s need and designing and launching new ones.

Certainly, this dilemma isn’t limited to Blackbaud. In fast-changing times many companies face choosing between the status quo or making a move to the future that involves risk and change. It’s good to remember that at the birth of the personal computer the ‘nice’ Apple, with three different PCs came close to going under. It wasn’t until Steve Jobs directed that the company focus only on one computer that the ‘tough’ Apple turned around.

When it comes to the future our sector needs the best and most flexible ‘plumbing’ available. I truly hope that Blackbaud concentrates on the pipes that can best hold water both today and tomorrow.

Roger

P.S. Melanie, for planting the seed that will hopefully sprout an awareness of the importance of Blackbaud’s role, its opportunities and responsibilities, you deserve an Agitator raise.

5 responses to “Is Blackbaud Too Nice?”

  1. Ex-Fundraiser says:

    Hahaha, you got me good with that article!

    I can think of a dozen defined reasons WHY Blackbaud gobbling up the competition isn’t a good thing for innovation in the charitable technology sector.

    It starts with possibly the worst customer & technical service I’ve experienced from any company, moves along to NetSolutions (a bit of a paradox there), goes somewhere towards RE development (How many patches do I need to patch my patch) and then ends with data integration (I waited 2 years for Kintera to be ‘integrated’ into RE – and then put that dog out of it’s misery).

    I do agree with you that I have met a bunch of nice, smart, knowledgable people along the way and had great experiences at their seminars and user groups. But that has not made up for the whole ‘User Journey’ I’m afraid. Not to mention a recent YouTube video from a VP of Product Developement (I think?) didn’t give me much hope for the future…….it was probably one of the most odd pitches about product migration for RE. Look out if you were anticipating a whiz-bang new CRM anytime soon!

  2. Mitch Hinz says:

    Roger,

    Nothing less than brilliant, since (of course) I agree with every word.

    Love Blackbaud’s folks, admire their commitment, have worked with them for years (and against them in the past, when I helped to sell Donor Perfect to small orgs), and they have purchased two of the companies I most admire in our space, Target in Boston and now Convio.

    So, being from Detroit, I love your car analogy, because if I go into one more of my client offices who say “Gosh, we’re hoping to update our Raiser’s Edge!” I may have to write my own software virus.

    Thanks for keeping us (and them) honest, as always.

    Mitch
    WWF International

  3. Roger,

    Thanks for sharing your thoughts – you are right, we are excited! And, we definitely are listening to what you and others in the sector have to say regarding product development and are incorporating it into our plans. I would encourage people (customer or not) to check out our Product Discovery program at http://www.blackbaud.com/discovery to get even more involved. And… On behalf of the entire team at Blackbaud – the respect is mutual. 🙂

    Thanks,

    Melanie

  4. Jana Eggers says:

    Roger,

    Thanks for the post and the admiration of Melanie! We are on the same page with both. We know we need to simplify our portfolio and are working on it. What we had to learn first is what customers really needed. Melanie just promoted our Discovery process which has been in use for the last year and a half. We’ve been delivering most new features and versions with it and have gotten positive feedback from our customers — including from former dissenters who said, “This is a new Blackbaud. You listened.”. I am proud of the team who has embraced the process and feel confident in our customer knowledge, as we move forward.

    What’s important with sunsetting products is having a smooth migration path for customers. It won’t ever be completely smooth, because folks have to change and as humans we aren’t good at it, but we can make it better with clear choices and better solutions. And it doesn’t just include a product but the right services, training and support to go through the change with them. We are working on that.

    And Ex-Fundraiser, sorry I didn’t inspire you. Happy to talk to you in more detail and see if I can do a better job. You can always contact me or any Blackbaud person via email at firstname dot lastname at blackbaud.com.

    Thanks!
    Jana Eggers

  5. In my past life as a consultant, I witnessed many people make decisions based on the belief that ‘no one ever got fired for buying Blackbaud’. Everyone one working in this sector has an obligation to treat donor dollars with the utmost respect. This may mean looking past sales and marketing and digging into the actual product issues that you describe so well in your post.

    There are other choices.

    Here are SofTrek we have a deep commitment to serve the needs of complex organization that use multi-channel marketing to raise large sums of money. The folks at Tessitura have done a great job of virtually eliminating Blackbaud’s footprint in performing arts. There is plenty of interesting work going with SalesForce. DonorPerfect and GiftWorks have nice solutions for smaller organizations. There are many others.

    So while great options still exist, with the combination of Blackbaud and Convio marketing dollars, people might have to look a little bit harder for them.

    Best,
    Steve Birnbaum