The
Business of meaning well and doing well
By Peter Boyes
When I started in communications and marketing
some thirty odd years ago, it was common for charities and not for profit
organisations to be run by retired major generals, former school teachers and
gentle folk on private incomes. One charity I used to advise in London was
staffed largely by former India Office employees who would stop work at 4 pm
every day for pink gins before tottering gingerly home.
One of my specialist areas is health care and
pharmaceuticals and it was not unknown for some of these voluntary organisations
to be in receipt of grants from drug companies for huge amounts of money but
there were very few checks and controls in place over how this largesse was
used. From time to time in New Zealand I am called in to advise on clearing up
the scandal after donated funds have gone astray in not for profit
organisations.
But these days the number of not for profits run
by enthusiastic volunteers is fast disappearing as both private and government
funders look for more up front accountability. According to the latest Grant
Thornton survey of the sector (Doing good
and doing it well? Not for Profit sector survey 2013/2014)
not for profits on both sides of the Tasman are
striving to adopt more professional standards in how they manage, operate and
govern their enterprises.
Yet according to Business Mentors New Zealand
CEO, Ray Schofield, many not for profits are being held back by a lack of
skills and training. He says: `We have worked with a number of not for profit
organisations over the years very successfully. But there are still many not
for profit organisations who would benefit from our volunteer mentoring
services. The sector faces many challenges, including the ability to source
funding. Our specialised mentors can help improve the ability of not for
profits to compete for funding.’
Business Mentors New Zealand has been developing
a separate service to support this increasing need among not for profits for
business skills and training. Ray Schofield explains: `We have been working
closely with the Tindall Foundation, which has kindly provided seed funding, to
launch a mentoring service targeted to help the Community and Charitable
sector. ‘Community Mentors’ is currently in the incubation phase in the
Taranaki region and we are working there in collaboration with the Bishop’s
Action Foundation. A team of mentors with experience in the sector has
agreed to be part of this exciting pilot and we will look to a nationwide
launch once we have measureable outcomes and achievements from this initiative.’
The Grant Thornton survey points out that one of
the greatest pressures on funding is the sheer number of not for profit organisations
in Australasia competing for a limited pool of money rather than any after
effects of the global financial crisis now mostly behind us.
In this climate, according to Ray Schofield,
governance and how well the organisation handles its funds becomes even more
crucial. He explains: `Governance standards now apply across both not for
profit and for profit sectors. New Zealand has introduced new reporting standards
with more on the way. The pressure is on organisations to be run by experienced
people, typically from a business background.’
As the Grant Thornton survey points out: `The
alternative – boards run by passionate inexperienced volunteers – not only
exposes the organisation to increasing legal risks, but also to greater funding
challenges, as funders with the deepest pockets are more likely to demand that
donee organisations demonstrate sound governance and business practices.’
One of
the first things that James Bichan did when he was appointed General Manager of
iSign, Deaf Aotearoa’s interpreter service, was to apply for a business mentor.
He got me.
He says:
`We organise communication between deaf and hearing people and work with our
clients and the interpreters to provide the best interpreting solution possible
that best meets the needs of everyone involved. We encourage our interpreters
to continuously improve their skills through professional development and
mentoring to ensure our clients receive the best services possible. It was
incumbent upon me to make sure my skills in running the service were
professional too.
‘I
started working as the acting manager of iSign in June of 2012. Six months
later I became the permanent manager... and yes, I’m hearing. I grew up as a
farm boy outside Palmerston North and started learning New Zealand Sign Language
in 1999. I’m passionate about continued learning and affecting positive change.
It was a straightforward decision to get a business mentor from Business
Mentors New Zealand. I was new to a management role. You don’t know what you
don’t know. I knew nothing about managing the organisation but I knew I needed
to go and look for support.
`When I
applied for a business mentor I honestly thought you would help me understand
what I needed to do to promote iSign so that we could get more clients and more
business for the interpreting service. But the most important things you helped
me to understand were what the management of the organisation needed and how the
governance of iSign relative to our parent body, Deaf Aotearoa should be
structured. You directed me towards not-for-profit management training and then
helped me develop a structure for the business, which is really vital if you’re
new to not for profit organisations. I got a much better understanding of what
I needed to do the job, what our baselines are so we can measure our progress
and further define what our values are.’
James
says it won’t be until later this year that he even looks at how iSign should
be communicating because there has been so much groundwork that needed doing
first.
`Later
this year we can look at consolidating what we’re doing, and why and how we’re
going to communicate. Up until now it has almost felt like creating an organisation
from scratch. You prompted me to go and look at the whole question of governance.
From that we started to have board meetings and more formal links between our organisations.
Up until then it had all been a bit loose. We have a much closer relationship
and a proper reporting structure in place. It has been eye opening and so
valuable to bring in some more experience around governance. Our interpreting
services are founded on volunteers, people who mean well, but we need business
tools and expertise in order to do well.’
The same
business principles of tight management, efficiency and accountability apply to
any organisation whether it is a not for profit or a commercial entity. But a
not for profit has to be particularly clear about its purpose and clear about timelines.
With
both my commercial clients and mentored businesses I try to ensure that there
is detailed and integrated data and planning. My business and marketing
communications programmes are very focused on measuring the outputs and outcomes.
With many
not for profits using money from government and foundations there is an extra level
of accountability in financial reporting. There is no room for vague expenses
and easy to misunderstand items such overseas trips or conferences unless there
are clear, beneficial outcomes. When you are dealing with grant money or
donations, budgets should be well-planned, transparent and watertight.
One of
the things the new Business Mentors New Zealand initiative will do is bring in expertise
from management and funding raising at larger organisations such as corporate
foundations. But the core of the offering will be the provision of business
expertise.
As Ray
Schofield points out: `For us the business mentoring comes first. It is
important that the business of the organisation works properly. We know from
overseas that linking business principles to what your not for profit does is a
streamlined way to operate, which generates energy in the organisation. But
think about it, a business reputation is a positive. The fact you think like a
business and can measure your success provides confidence for your funders.’
Peter
Boyes is a PR and marketing communications consultant and a volunteer business
mentor with Business Mentors New Zealand. For further information see
