MAJOR GIFTS Performance Planningpreview.bwf.com/docs/bwf/MajorGiftsPerformancePlanning1.pdfSeptember 25, 2007 MAJOR GIFTS Performance Planning ... Performance Coaching Performance

Thomas W. Grabau, Ph.D.September 25, 2007

MAJOR GIFTSPerformance Planning

The 12th Annual Conference of the Association of Arts and Sciences Advancement Professionals

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Performance MetricsRules of Thumb

Officers should conduct an average of 12 to 15 face-to-face visits per month.

Officers should visit approximately 50% of their portfolio each year (75/150).

Approximately 30% of an officer’s portfolio should be in the solicitation stage.

Officers should raise on average of $1.0 million per year.

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EduVentures Study

Nearly 70 percent of gift officers completed 10 visits or fewer per month.

The overall average was 7.3 visits per month.

High performers conducted an average of 8.3 visits per month.

“Across all institutions and performance levels, actual performance for visits and solicitations is significantly less than the stated target goals.”

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25thPercential

50thPercentile

75thPercentile

Annual Funds Raised*

$ 0.6 M

$1.6 M

$ 3.4 M

25thPercential

50thPercentile

75thPercentile

Visits Per M onth*

7

15

25

25thPercential

50thPercentile

75thPercentile

Solicitations per Year*

12

20

25

*As reported by MGOs with one or more years of tenure atcurrent foundation: includes adjusted data for part-time MGOs.

SOURCE: Philanthropy Leadership Council MGO Survey, April 2006, and Philanthropy Leadership Council interviews and analysis.

Few hospitals track data, so unable to prove or quantify productivity.

Philanthropy Leadership Council MGO Survey

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Bulk of MGOs fall into the low-average end of the spectrum

Some MGOs not performing to potential due to limited tenure

MGOs capable of raising more than $3 M annual extremely scarce

$1 M $3 M

Distribution of MGOs by Annual Funds Raised

SOURCE: Philanthropy Leadership Council interviews and analysis.


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Distribution of MGOs by CDO-Rated Effectiveness

CDO ratings of MGO effectiveness follow normal distribution

Taking tenure into account paints a (somewhat) more promising outlook

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Scale of 1 to 10

103 Low Performers Mid Performers High Performers


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Today’s Agenda

Performance Management

Performance Metrics

Performance Planning

PerformanceReinforcement

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Performance management involves a cycle of activities to ensure that goals are consistently being met in an effective and efficient manner.


Performance Coaching

Performance Appraisal

Performance Reinforcement

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Critical Importance

Pressure to Produce

Greater Scrutiny

Recruitment and Retention

Culture of Performance

Shines spotlight on priorities

Measures progress

Provides focus

Shapes behaviors toward desired outcomes

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?4. CDO and Staff Time

$1+ MillionTOTAL COST

$5-$10 K3. Recruiting Fees

$450 K2. Onboarding Six Months

$500 K1. Vacancy Six Months

Estimated Cost to Replace MGO

MGO Replacement Cost

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Prerequisites for Performance

Fixed/EssentialFitTalent

Changeable/Can be LeveragedSkills

• Relationship Building• Negotiation

Focus• Adequate Time• Right Activities• Efficient Tempo

Soar with Your Strengths, Donald O. Clifton & Paula Nelson

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Improving SkillsTrainingCoachingMentoring

Improving FocusClarifying roleSetting goalsProviding Consequences

Ease of Implementation Speed of Results

LowHigh Low

High

Low High Low High


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Creating a Platform for Performance

MGO minimizes administrative time and has confidence in system

CDO enhances capability for strategic resource deployment and visibility into interim progress

MGO is able to decline activities that would negatively impact productivity

CDOs improve ROI by assigning activities to the most appropriate personnel

MGO gains precise idea of output required for optimal performance

CDO is able to pinpoint performance problems quickly

MGO better understand the ultimate objectives of the position (i.e., what to strive for)

CDO is more aware of requirements for top MGO performance

Key Benefits

Provide user-friendly, secure tracking system that enables accurate and easy capture and retrieval of performance data

Ensure the MGOs are not distracted by non-core activities, either due to lack of administrative support or extra tasks assigned by CDO

Define expected MGO performance and identify its hallmarks; craft appropriate goals at correct target levels

Articulate the key responsibilities of gift officers and delineate boundaries for the job

CDO Task

Creating InfrastructureEnsuring Capacity

Setting the Right AmbitionDefining the MGO Role


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Performance Metrics

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Setting the Right Ambition

If it’s important:Quantify it.

Measure it.

Track it.

Analyze it.

Manage to it.

Specific

Measurable

Attainable

Reasonable

Timely

“Achievement is largely the product of steadily raising one’s level of aspiration and expectation.”

—Jack Nicklaus

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Too LowSense that goal is too easy to meetNo change in behaviorOnce goal is reached, efforts ceaseImprovement difficult to identify

Too HighSense the goal cannot be accomplishedLoss of confidence and high stressConstant sense of underperformanceLow moraleJeopardized retentionMisreporting possible


Goals Come at a Price

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Other Pitfalls

Imprecise definition

Imperfect understanding of drivers

Insufficient support infrastructure

Conflicting messages about goals

Haphazard reinforcement practices

Short term focus that threatens long-term goals

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Performance Metrics

Performance Metrics Systematically Tracked

47%

54%

56%

59%

79%

81%

84%

89%

90%

0% 20% 40% 60% 80% 100%

Number of "moves"

Number of discovery calls made

Number of new prospects identified

Number of stewarship calls

Number of gifts closed

Number of major gift proposals made

Number of contacts

Total dollars raised

Number of face-to-face visits

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Performance MetricsMinimum Annual Expectations

Dollars Raised

2%

8%

25%

2%

10%

25%

16%

9%

3%

0% 5% 10% 15% 20% 25% 30%

No set goal

n/a

Varies per officer

$4M–$5M

$2M–$3M

$1M–$1.5M

$500K–$750K

$250K–$400K

$100K–$200K

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Performance Metrics

Definition of Face-to-Face Visit

14%

19%

38%

96%

21%

0% 20% 40% 60% 80% 100%

Other

Casual off-campusencounter

Casual on-campusencounter

Extended business-focused phone call

Appointment orscheduled meeting

Check all that apply, total will not equal 100%

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Performance Metrics

Definition of Contact

10%

16%

30%

38%

48%

78%

81%

91%

94%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Mass mailing

Other

Voicemail

Greeting card

Casual encounter

Email

Personal letter

Phone call

Face-to-face visit


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Performance Metrics

Definition of Cultivation Move

14%

57%

59%

59%

63%

44%

0% 15% 30% 45% 60% 75%

Other

Volunteerengagement

Public recognition bythe institution

Prospect's attendanceat a special event

Face-to-face visit orequivalent

Any contact


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Performance Metrics

Optimal Prospect Load for a Major Gift Officer

4%

1%

8%

5%

16%

34%

22%

9%

0% 10% 20% 30% 40%

Other

Prospects are not assigned

No standard optimum

200 or more

200 or fewer

150 or fewer

100 or fewer

50 or fewer

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Performance Metrics

Proposals Made• Two to three per month,

or 24–36 per year

Closes• Ranges from 1/3 to

2/3 of asks

Stewardship Calls• Not tracked by

48 percent• Two to three per month• Three to five per month• Varies per officer

Discovery Calls• Varies per gift officer• Depends of phase of

campaign

Prospect Identification• Tracked but generally

not a set goal (37%)• 30 or less

Moves• Tracked but generally not

a set goal (59%)

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Performance Metrics

Optimal Frequency Interval for Cultivation Moves with a Prospect

14%

33%

29%

20%

4%

0% 10% 20% 30% 40%

Minimally, every othermonth

At least 4 times per year



At least 1 time per year

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Performance Expectations

Method of Stating Performance Expectations/Standards

7%

11%

32%

50%

0% 10% 20% 30% 40% 50%

Other

Both

Oral statements

Written statements


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Performance Expectations

Rigor of Performance Expectations Application

8%

2%

2%

4%

34%

10%

39%

0% 10% 20% 30% 40%

Other

Not at all

Generally ignored

Very casually, only as suggestions

In a relaxed fashion as guidelines

Rigorously, but in spirit only

Strictly and to the letter


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Performance Metrics

Effectiveness of clearly stated performance expectations and standards for stimulating performance

and building motivation of major gift officers.

3%

2%

2%

15%

48%

30%

0% 10% 20% 30% 40% 50% 60%

Other

Detrimental

Unimportant

Somewhat important

Important

Essential

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Points of View

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110% increase

BeforePerformanceManagement

AfterPerformanceManagement

Funds Raised

50% of increaseattributed to use of metrics

Focus leads to higher levels of performance

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Focus leads to higher levels of performance (continued)

EduVentures

Overall, officers at institutions that were more focuses on a single area of metrics—whether prospecting activities, solicitations, or dollars raised—outperformed officers at institutions with equal or mixed measurement models.

Officers at institutions with focused modelsconducted 116 visits on average versus 84 at other institutions

made 18 solicitations versus 14

closed 12 successful solicitations versus 9.

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Ideal Actual

Miscellaneous

AdministrativeReportingInternal Meetings

SOURCE: Philanthropy Leadership Council MGO Survey, April 2006, and Philanthropy Leadership Council interviews and analysis.

15%

31%

4%

5%

6%

8%

9%

14%

MGOs spend twice as much time as they would like on low-return MGO tasks

Percentage of MGO Time Spent in Select Tasks

Time on Select Tasks

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Barbara Friday

9 am Visit with Mrs. Jupp

10 am Google searches for prospect information

11 am Help with departmental event

12 pm Two-hour staff meeting

2 pm Call and set up two prospect appointments

3 pm Scout for suspects at 25th class reunion

Core Major Giving Task

Non-core Task Chosen by MGO

Non-core Task Assigned by Management

Legend

Leaving Little Time

for Prospects

MGO Time

MGO chooses a less central task

A less important task is assigned by MGO manager


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Barbara Friday

9 am Visit with Mrs. Jupp

10 am Google searches for prospect information

11 am Help with departmental event

12 pm Two-hour staff meeting

2 pm Call and set up two prospect appointments

3 pm Scout for suspects at 25th class reunion

Making Room for

What Matters

MGO Time

MGO incentivizedto meet prospects; chooses to call donor


Reducing staff meeting allows for extra visit scheduled

Visit with Mrs. Po

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Planning Practices

36%

18%

64%

82%

0% 20% 40% 60% 80% 100%

Required to providewritten strategies for

top prospects

Required to developwritten annual goals

No Yes

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Planning Practices (Continued)

If written FY plans are required, importance of written plans for managing major gift performance

and achieving results

4%

1%

3%

17%

46%

29%

0% 10% 20% 30% 40% 50%

Other

Detrimental

Unimportant

Somewhat important

Important

Essential

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Planning for Performance

Clarifies and focuses thinking.

Establishes context and framework for action; sets expectations.

Becomes basis for performance planning and evaluation.

Provides content for ongoing dialogue.

Empowers major gift officer.

Facilitates manager’s effectiveness.

Evolves easily into next year’s plan.

Written plans as management tools.

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Planning Practices Findings from Survey

A written plan required for top 25; reviewed quarterly

Yes…must include:

• Specific initiatives

• Specific persons involved and responsible

• Specific date for an initiative to happen or be accomplished

Plans for top 75 prospects

Officers have two lists they manage:

• A top 200

• A top 50 list.

• Individual strategies are to be crafted for both

• Top 50 strategies are much more detailed

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Key Elements of a Performance PlanFiscal year executive summary.

Fiscal year fundraising and engagement goals.

• Major gifts prospect solicitation pipeline.

• Events/donor relations activities.

• Campus liaison responsibilities.

Fiscal year top 25 prospects.

Professional development and technical training.

Professional support needs.

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Planning Practices (Continued)

Final plan signed by:

Dean

VP/VC

AVP/AVC

Major gifts officer/ director of development

Keys to success:

Keep it simple

Frequent interaction

Focus on the future

Use of consistent data in a consistent manner

Transparency

Foster and expect self-tracking

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Performance Plan Projections Template

Dean/Administrator

VP/VC

AVP/AVC

Development Officer/Major Gift Officer

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Part IFiscal Year Executive Summary

Provide a brief narrative overview of fiscal year strategic priorities.• 5–7 priorities that will guide activities and decision-

making and that will drive the goals and objectives by which MGO wants to be evaluated.

– Must advance a philanthropic and constituent relations agenda that is in harmony with vision and strategic directions of the institution.

– Must be stated specifically as quantified outcomes.

• Strategic priorities must be defined in dialogue with the appropriate dean and the MGO’s supervisor/s.

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Part IIFiscal Year Fundraising and Engagement Goals

##Suspects Qualified

# and $# and $Proposals Made

##Face-to-Face Visits

# and $# and $Leadership Level Annual Gifts

# and $# and $Major Gifts

Fundraising Productivity

GoalCurrent

Fiscal Year

Actual Previous

Fiscal YearPersonal Fundraising Goal $ ____

(This section is for the projections and goalsof the individual major gifts officer.)

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Part IIFY DoD Fundraising and Engagement Goals

Identify solicitations to be made over the next 24 months.

Outstanding Proposals

March 31, 2007$25K$25KFrank C. Jones

Actual DateAsk Amount

Capital RatingProspect

Next 6 Months

March 31, 2006$100K$500KJohn W. Doe



A. Major Gifts Prospect Pipeline

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Next 12 Months

August 2007$50K$50KEve Elway



Next 18 Months

March 31, 2007$250K$250KLinda A. Zahn



(Continued)

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Next 24 Months

May 2008$500K$1.1 MSandra G. Jones





(Continued)

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$TOTAL$Cumulative 24 months$Cumulative 18 months$Cumulative 12 months$Cumulative 6 months$Outstanding Proposals$ AmountPipeline Summary

(Continued)

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DatePurpose/StrategyCommunications

DatePurpose/StrategyOther Stewardship Activities

DatePurpose/StrategyVolunteer Management Activities

DatePurpose/StrategyOff-Campus Events

DatePurpose/StrategyOn-Campus Events

B. Events/Donor Relations


(Continued)

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DatePurpose/StrategyResponsibility/Role

C. Campus Liaison and Partner Responsibilities


(Continued)

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Part IIITop 25 Prospects Assigned to DoD

Role of Dean

Strategy andNext StepsCultivation

Prospect

Donor/Prospect

Role of Dean

Planned Activity/ StrategyStewardship

Prospect

Role of Dean

Strategy andNext StepsProposals to be Submitted (FY)

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Part IVProfessional Development and Technical Training

Individual DoD Professional Development Plan

Assessment of and results associated with prior Fiscal Year plans.

Professional development goals and objectives.

Conferences, seminars, webinars, and networking planned for fiscal year.

Expectations for documentation, communication, and application of learnings.

(This section defines in a summary fashion the DoD’s overall professional development plan.)

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Part IVProfessional Development and Technical Training

B. Institutional or Departmental/ Divisional Training

Systems

Other technical training planned for fiscal year

Others

Management, major gift, and planned giving conferences, etc.

Webinars

(Continued)

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Part VProfessional Support Needs

MGO identifies the resources and support required to meet the stated goals.

Opportunity to state ‘obstacles’ to higher productivity that could be addressed.

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What actions have you taken over the last three months?

What are your successes?

What adjustments have you made?

What have you learned?

What relationships have you built?

What is your main focus for the next three months? six months?

What outcomes do you project?

What do you intend to learn?

What new relationships do you plan to build?

Which ones do you plan to enhance?

What are your needs?

Performance planning sessions

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Why it Works

States clear objectives and expectations.

Makes work interesting and worthwhile.

Focuses on the future.

Fosters self-tracking

Addresses obstacles.

Helps people realize their ambitions and dreams.

Promotes frequent interaction.

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Performance Reinforcement

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Motivation and Managers

Motivation: the will to achieve.Motivation is not something you give to people—they give it to themselves.

Managers are only catalysts—agents.Yet, a manager determines:

• How long a staff member stays.

• How productive a staff member will be.

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Motivation and Rewards

Financial Methods Used to Motivate/Reward

5%9%10%10%10%

11%24%

27%41%

46%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Deferred compensation packages

Spot bonuses

Single-rate year-end bonus

Bonus pro-rated by performance

Car allowances, memberships

Perks (event tickets, parking, etc.)

Upgraded technology

Support staff assistance

Differential raises

None of the methods listed


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Motivation and Rewards

Non-monetary Methods Used to Motivate/Reward

5%

59%

64%

68%

85%

86%

87%

88%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

None of the methods listed

Quality time with supervisor

More control over work schedule

Recognition from senior management

Professional development

Frequent encouragement and feedback

Clear expectations

Peer recognition


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What Works

Recognize a job well done.

What gets recognized gets reinforced, and what gets reinforced gets repeated.

Cite the specific action or reasons.

Celebrate successes—office, program, individual.

Create heroes at every level.

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Dialogue

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Thank you!

Thomas W. Grabau, Ph.D.

www.bwf.com

68648/TWG:jub/092007

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PERFORMANCE PLAN PROJECTIONS

TEMPLATE

_____________________________________________________________ Development Officer/Major Gift Officer _____________________________________________________________ Director of Major Gifts/Supervisor _____________________________________________________________ Director of Development and Alumni Affairs _____________________________________________________________ Dean/Administrator

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PART I

Executive Summary FY06

Provide a brief narrative overview of FY Strategic Priorities

This section should define those five–seven priorities that will guide activities and decision-making and that will drive the goals and objectives by which you want to be evaluated. They must advance a philanthropic and constituent relations agenda that is in harmony with vision and strategic directions of the institution. Please state the goals and objectives specifically as quantified outcomes. If the plan is being developed by a DO for a college, school or unit, the strategic priorities must be defined in dialogue with the appropriate Dean and the DO’s supervisor.

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PART 2

DO/MGO Fundraising & Engagement Goals Fiscal Year

(This section is for the projections and goals of the individual DO/MGO.)

Personal Fundraising Goal $ Actual Goal FYo7

Target/Excel FYo8

Target/Excel Fundraising Productivity • Major Gifts $ / $ / • Annual Gifts $ / $ / • Planned Gift Calls / / Face-to-Face Visits / / Proposals made / / Prospects Qualified / / Other / / A. Major Gifts Prospect Pipeline Identify solicitations to be closed and made over the next 24 months. Outstanding Proposals Prospect Qualified Rating Ask Amount Actual Date John W. Doe $500K $100K March 31, 2006

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Next 6 months July-Dec 07 Prospect Qualified Rating Projected Ask Projected Date Frank C. Jones $25K $25K July 31, 07 Next 12 months Jan-July 2008 Prospect Qualified Rating Projected Ask Projected Date Linda A. Zahn $250K $250K March 31, 2008 Next 18 months July-Dec 2008 Prospect Qualified Rating Projected Ask Projected Date Eve Elway $50K $50K August 2008 Next 24 months Jan-June 2009 Prospect Qualified Rating Projected Ask Projected Date Sandra G. Jones $1.0 million $500K May 2009

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Pipeline Summary $ Amount Outstanding Proposals Cumulative 6 months Cumulative 12 months Cumulative 18 months Cumulative 24 months Total B. Events/Donor Relations On-campus events Purpose/strategy Date Off-campus events Purpose/strategy Date Other stewardship activities Purpose/strategy Date Volunteer management activities Purpose/strategy Date Communications Purpose/strategy Date

C. Collaborative Responsibilities Responsibility/Role Purpose/activity Date

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PART 3

Top 20 Prospects Assigned to DO/MGO

Proposals to be Submitted (FY) Prospect Strategy & Next Steps Role of Dean

Stewardship Donor/Prospect Planned Activity/Strategy Role of Dean

Cultivation Prospect Strategy & Next Steps Role of Dean

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PART 4

Professional Development and Technical Training (This section summarizes the DO’s/MGO’s overall professional development plan.)

A. DO/MGO Professional Development Plan

• Professional development goals and objectives

• Conferences, seminars and webinars planned for fiscal year

B. Institutional Training

• Systems o System training planned for fiscal year

o Other technical training planned for fiscal year

• Other (Example: management and planned giving seminars, etc.) o Training planned for fiscal year

PART 5

Professional Support Needs (This is where the DO /MGO identifies the resources and support required to meet the stated

goals. It is also an opportunity to state ‘obstacles’ to higher productivity that could be addressed.) 68812/TWG:jub/092707

Documents

MAJOR GIFTS Performance Planningpreview.bwf.com/docs/bwf/MajorGiftsPerformancePlanning1.pdfSeptember 25, 2007 MAJOR GIFTS Performance Planning ... Performance Coaching Performance