how to build alliances that work
TRANSCRIPT
How to Build Alliances that Work
Philanthropy Leadership Council
Jennie Light
Senior Analyst
Philanthropy Leadership Council
©2016 The Advisory Board Company • advisory.com
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How to Build Alliances that Work
Philanthropy Leadership Council
Jennie Light
Senior Analyst
Philanthropy Leadership Council
©2016 The Advisory Board Company • advisory.com
5
At the Intersection of Health Care and Fundraising
Serving as Thought Partners to Philanthropy Leaders
Source: Philanthropy Leadership Council interviews and analysis.
Today’s Imperatives for Hospital and Health System Philanthropy Enterprises
1
2
3
4
5
6
Major gifts strategy for care transformation priorities
Donor-investor approach to acquisition and long-term engagement
Robust, high-return grateful patient initiatives
Agile, active, and accountable clinician and volunteer corps
High-functioning frontline fundraisers
Streamlined, strategic allocation of resources
©2016 The Advisory Board Company • advisory.com
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2 Clinicians
1 Volunteers
3 Executives
Road Map Three Key Constituencies to Engage
©2016 The Advisory Board Company • advisory.com
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Source: Philanthropy Leadership Council interviews and analysis.
A New Vision for the 2020 Board
Characteristics of the 2020 Board
Empowered
Empowered to…
• Tell a peer about the
institution’s priorities
• Ask for a major gift
• Tell the institution’s
story
• Be an advocate
• Suggest change
• Hold one another
accountable
Scoped
Scoped in terms of…
• Committee structure
• Full board
responsibilities
• Individual trustee
responsibilities
• Funding priorities
• Meeting content
• Meeting time
Agile
Agile around…
• Lifespan of
substructures
• Substructure focus
and purpose
• Responsiveness
to current needs
• Trustee tenure
and retention
• Strategic objectives
Accountable
Accountable for…
• Fulfilling personal
requirements
• Knowing when to
step down
• Maintaining priority
alignment
• Ensuring peers,
full board meet
expectations
©2016 The Advisory Board Company • advisory.com
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Source: Philanthropy Leadership Council interviews and analysis.
Blueprint to Achieve the 2020 Vision
Time
Cum
ula
tive
Va
lue
Enable Independent
Action
Streamline
to Essentials
Hardwire Mutual
Value
Flex Around Top
Funding Priorities
Four Steps to the 2020 Board
©2016 The Advisory Board Company • advisory.com
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Governance Duties of
Best-in-Class Boards
Streamline to Essentials
Source: Philanthropy Leadership Council interviews and analysis.
Pare Down Governance to the Bare Minimum
Approve the overall
budget; determine
whether audit is needed
Recruit and train new
trustees; ensure volunteers
meet expectations
Desired Volunteer Time Allocation
20% 80% Major gifts
fundraising
Governance
and trusteeship
Two Essential Governance Committees
• Executive Committee
• Trusteeship Committee
©2016 The Advisory Board Company • advisory.com
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Source: Philanthropy Leadership Council interviews and analysis.
Decreased Governance Frees Time for Fundraising
Desired Board Member Time Allocation
80% 20% Major gifts
fundraising
Governance and
trusteeship
Core Responsibilities of
the 2020 Board Member
Supports Moves Management
• Identifies, cultivates, and asks
donors to fund top priorities
• Helps develop the case for
support; share with connections
Promotes Organization
• Serves as an advocate for the
organization at large, particularly
during times of change
• Articulates the organizational
value and funding priorities to
community members
Increase Board Giving
• Makes personal major gifts
• Encourages peers on foundation
and governing boards to give
©2016 The Advisory Board Company • advisory.com
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Pre-meeting Electronic Distribution Easy to Implement
Enable Independent Action
Source: “Consent Agenda,” Boardstar, accessed at: http://www.boardstar.org/assets/
documents/Consent%20Agenda.pdf; Oakwood Healthcare Foundation, Dearborn, MI;
Philanthropy Leadership Council interviews and analysis.
1) Consent Agenda,” Boardstar, accessed at:
http://www.boardstar.org/assets/documents/Consent%20Agenda.pdf.
Make Time for Higher Priorities via Consent Agenda
Items That Can be Approved via a Consent Agenda Prior to Meeting1
Consent Agenda Defined1
Language Included in Meeting Agendas
Sent Out to Board Members at Oakwood
A note regarding Consent Agenda items: If a
Board member believes that an item included
on the consent agenda requires additional
discussion, this request will be accommodated.
Please contact development prior to the meeting.
Practice of relegating routine items on
the board meeting agenda to email
communication prior to the meeting
and approving the entire list at once.
z
Meeting minutes
Staff reports
Committee reports
Background reports used
for information only
Correspondence requiring
no action
Final approval of reports
or proposals on the
agenda for a long time
Routine contracts within
board policies
©2016 The Advisory Board Company • advisory.com
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Source: Oakwood Healthcare Foundation, Dearborn, MI;
Philanthropy Leadership Council interviews and analysis.
Every Minute Counts in Revised Meeting Structure
Board of Trustees Meeting Agenda: August 2014 Oakwood Healthcare Foundation
8:00 AM Call to order, inspired giving stories, and
board nominations
8:10 AM Panel discussion and Q&A on women’s
services
8:40 AM Intro to women’s services funding initiative
9:00 AM Role play activity
9:10 AM Consent agenda approval
9:15 AM Governance
• Board self-evaluation results
• Feedback from June campaign meeting
9:25 AM Bylaws and articles of incorporation revisions
9:35 AM System President and CEO report
9:50 AM Conclusions and next steps
Minutes Eliminated from
Old Agenda
30
60
Minutes dedicated to
operational, financial review
Minutes dedicated to reviewing
prospect names
Items Added to New Agenda
• Inspired giving stories
• Education on specific funding initiative
• Interactive role play exercise
• Q&A time
• Quick consent agenda approval
©2016 The Advisory Board Company • advisory.com
13 Flex Around Top Funding Priorities
Source: Philanthropy Leadership Council interviews and analysis.
Maximize Board’s Value via Progressive Task Forces
Old Paradigm New Paradigm
Nomenclature Committees Task forces
Duration Long-standing; written into the bylaws Short-term; dissipated at end of year
or as soon as priority is funded
Focus Area Aligned with area of interest to
volunteers
Tied to specific fundraising goal
(e.g., fund a top priority item)
Staffing Volunteers mandated to join at least one Staffed via an ‘opt-in’ choice
Alignment Aligned with volunteer’s goals Aligned with volunteer’s, foundation’s,
and hospital’s goals
Leadership Development staff or board champion Board champion
Comparison of Traditional vs. Progressive Volunteer Substructures
©2016 The Advisory Board Company • advisory.com
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Couple Engagement Questions with Requirements, Past Performance
Hardwire Mutual Value
Source: Philanthropy Leadership Council interviews and analysis.
Self-Audit Makes Board Members Reflect
New Board Requirements
Volunteer Self-Audit Survey
Past Performance
Years of service: 6
FY 2013 meeting attendance: 4 of 6
Committee activity: ___________
Self Assessment
1. Are you interested in continuing your board service? (If ‘yes,’ please continue.)
2. Do you have access to individuals in the community who can help with philanthropy?
Are you willing to tap into that network?
3. Are you willing to fulfill the new responsibilities for the future board, as outlined?
©2016 The Advisory Board Company • advisory.com
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Philanthropy Leadership Council Support
Source: Philanthropy Leadership Council interviews and analysis.
Five Most Population Board Engagement Resources
Health Care Fundraising Board of 2020
Health Care Fundraising Job Description
Onsite Presentation
Role Play Toolkit for Volunteers
Bring one of our speakers onsite to
educate your board on the board’s role
Comprehensive best practice study
including strategic guidance on maximizing
volunteer value
Detailed description of what is and is not a
philanthropy board member’s responsibility
Scenarios, scripts, and discussion guides
for simulation of real life situations
volunteers may find themselves in
Get the most out of your foundation board—
go "governance-lite" Expert Insight
Expert Insight on transitioning the board
away from a governance-heavy focus
©2016 The Advisory Board Company • advisory.com
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2 Clinicians
1 Volunteers
3 Executives
Road Map Three Key Constituencies to Engage
©2016 The Advisory Board Company • advisory.com
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MDs Remain Critical to Uncovering Best Prospects
Health Care Foundations Increasing Investment in Clinician Engagement
Source: 2016 Snapshot of Grateful Patient Fundraising Programs,
2016; Philanthropy Leadership Council interviews and analysis.
1) As indicated by answer to the question: “Are you planning to make
any changes to your patient fundraising program in the near future?”
2) n=68; as indicated by answer to the prompt: “Check all the
components that are currently part of your program.”
Percentage of respondents who rely on referrals from
physicians and clinical staff for new prospect identification2 82%
Top Planned Investments and Modifications1
n=67
Increasing frequency of wealth screening
Increasing focus on physician/clinical
staff engagement in patient referrals
Hiring FTE dedicated to patient fundraising
Changing follow-up outreach type
Adding predictive modeling or other analytics
4
1
5
2
3
69%
30%
24%
16%
15%
Rank
©2016 The Advisory Board Company • advisory.com
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Target Engagement to Accelerate Clinical Alliances
Ten Steps for Achieving Four Key Imperatives
#1 Frontload champion
engagement
#2 Marshal collective
power of champion
core
#10 Prime new
physician
prospect
pockets
#8 Create purposeful
stewardship plans
#9 Quantify value and
impact
Establish
High-Functioning
Champion Core
Over-Invest in
Highest-Value Allies
Hardwire Physician
Stewardship and
Impact Tracking
Build Low-
Maintenance Ally and
Champion Pipeline
#3 Right-size ally pool
#4 Focus on
representation in
emerging priorities
#5 Flex to include new
care roles
#6 Find the hook
#7 Deploy around
prospects, peers,
and priorities
©2016 The Advisory Board Company • advisory.com
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Who Passes the “Godfather” Test?
Look for Peer Leaders and Exemplars
Source: Philanthropy Leadership Council interviews and analysis.
Establish High-Functioning Champion Core
Recruitment Criteria for Physician Champions
Recognized leader: If you asked ten medical staff members to list
informal or formal physician leaders, would this individual be included
on eight out of ten lists?
Well-respected: If you asked any medical staff member, would they
speak highly of this physician?
“Gets” philanthropy: If you asked this physician to talk to a prospective
donor, would he or she immediately agree?
Mandatory Characteristics
Highly Desired
Strategic priority alignment: Is a priority in the physician’s service area
included in the foundation’s top five current funding priorities?
Patient donor potential: Has the physician’s service area yielded at least
five patients with affinity and means who have made a major gift?
©2016 The Advisory Board Company • advisory.com
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Qualifying Your Ally Pool
Targeting Strategy Starts with Priority Alignment
Over-Invest in Highest-Value Allies
Source: Philanthropy Leadership Council interviews and analysis.
Physician Selection
Status Quo
1
3
2
4
Practice in area with
funding need
Practice in service line with:
• High-capacity patients
• High-affinity patients High physician
engagement scores
Can “get” philanthropy
(aptitude)
“Gets” philanthropy
(behavior)
Practice in strategic
funding priority area 1
3
2 Practice in service line with:
• High-capacity patients
• High-affinity patients
Physician Selection
Recommended Practices
©2016 The Advisory Board Company • advisory.com
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Philanthropy Leadership Council Support
Source: Philanthropy Leadership Council interviews and analysis.
Five Most Population Physician Engagement Resources
Philanthropy-Physician Partnership Toolkit
Ready-to-Use Physician Education Decks
Onsite Presentation
HIPAA Educational Tools and Talking Points
Bring one of our speakers onsite to
educate your clinicians on philanthropy
and the impact of their involvement
100+ page toolkit with ready-to-use
templates and tools for engaging allies
and champions
PowerPoint deck and talking points to
use in conversations with clinical partners
Webconference and talking points to help
you assuage concerns about grateful
patient fundraising programs
Fundraiser Virtual Academy Ally
Relationship Building Course
Online education platform for frontline
fundraisers offering CFRE credit and
lessons on clinician engagement
©2016 The Advisory Board Company • advisory.com
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2 Clinicians
1 Volunteers
3 Executives
Road Map Three Key Constituencies to Engage
©2016 The Advisory Board Company • advisory.com
23
Garner CEO Buy-In By Proving Value
Why CEOs Should Care About Philanthropy
High-performing foundations account for more
than 20% of net income of their health systems
Philanthropy is less resource-intensive than
operational revenue streams.
To increase the revenue potential of
philanthropy, invest more—not less.
There is plenty of opportunity to elevate
philanthropy's return on investment.
If you want to be a top performer, focus on
major gifts.
©2016 The Advisory Board Company • advisory.com
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Funding Innovation and Advancement
Source: Mayo Clinic, Rochester, MN. Mayo Clinic 2012 Annual Report, available
at http://www.mayoclinic.org/mcitems/mc0700-mc0799/mc0710-2012.pdf [June
21, 2013]. Philanthropy Leadership Council interviews and analysis.
Accounting for More Than 20% of Net Income
Revenue and Income at Mayo Health System, by Source
Total Health System Revenue Net Health System Income
2% Philanthropy
21% Philanthropy
85%
Patient
Revenue 13%
Other
65%
Patient
Income
14%
Other
©2016 The Advisory Board Company • advisory.com
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Source: Baptist Health Foundation, Birmingham, AL;
Philanthropy Leadership Council interviews and analysis.
A Less Resource-Intensive Revenue Stream
Baptist Health Foundation Revenue
Expressed in Operational Terms
= = $1M of foundation revenue
$71M in hospital charges
5,000 adjusted discharges
©2016 The Advisory Board Company • advisory.com
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Philanthropy Leadership Council Support
Source: Philanthropy Leadership Council interviews and analysis.
Five Most Population Executive Engagement Resources
Philanthropy: The Biggest Income
Opportunity You’re Probably Missing
Five Things CEOs Need to Know
About Philanthropy
Onsite Presentation
Tips to Reconcile Philanthropy and
Finance Reporting
Bring one of our speakers onsite to
educate your executive team on the impact
of philanthropy
Slide deck and corresponding talking
points and research brief to share with
executive peers
Blog post delineating the impact of
philanthropy’s contributions and how
executives can partner
Webconference on building a relationship
with the finance department
CXO Onboarding Toolkit Tips for building relationships with newly
hired or promoted CEOs, CFOs, COOs,
and other hospital executives
©2016 The Advisory Board Company • advisory.com
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How to Build Alliances that Work
Philanthropy Leadership Council
Jennie Light
Senior Analyst
Philanthropy Leadership Council