Tag Archives: strategy

How to Measure the Value of an IT Investment

This article was originally published by Techsoup on July 8th, 2016

 Person's hand holding several dice that are about to be rolledSome say life’s a gamble. But gambling can be very random, as in the rolling of a die, or very scientific, as in the calculation of odds and percentages. Investing in technology should not be a gamble, in as much as you can predict what it will do for you. In the standard business lingo, we call this prediction “return on investment” or “ROI.” And whether you calculate that with all the vigor of two college students on a weekend trip to Reno, or a scientist who deeply understands the odds, is important. In this article, we’ll discuss the many factors that go into a fully informed determination of the ROI for a technology project.

What Is ROI?

The simplest definition of ROI is that, for any project or purchase, it’s the amount saved or realized minus the cost to invest. If we spend $75 for a new fundraising widget for our website, and we make $125 in donations from it, then our return on investment is $50.

Maybe.

Or maybe not, because we invested in web developer time to deploy the widget to our website and staff time to process the donations. Plus, we spent a portion of each donation on credit card processing fees, right?

Not Strictly a Financial Formula

So ROI is not a strictly financial formula. Actual ROI is based on many factors, including hard-to-quantify things such as organizational culture, training, and readiness for adoption. The benefits of a major tech investment are proportional to the readiness of your particular organization.

Let’s try another example. We’ll spend $2,000 to upgrade to a new version of our fundraising system. It boasts better reporting and data visualizations, which, per the salesperson, will allow us to increase our donations by 10 percent. We think we’ll make $10,000 a year in additional donations, and expect the upgrade to benefit us for two years. So the strictly financial return is $18,000 ($20,000 new revenue – $2,000 upgrade cost).

But that 10 percent increase isn’t based solely on having the new features available in the product; it’s based on using the new features strategically, which your staff might not know how to do. It assumes that the software will be configured correctly, which assumes you are fully cognizant of your needs and processes related to the information that the system will manage. And it assumes that you have a staffing level that might be larger than you can afford.

It Doesn’t Start with Dollars

The concept here is pretty simple: it is easier to bake a cake from a recipe if you buy the ingredients beforehand. Then you need to have all of the required mixing implements and receptacles, clear the necessary counter space, and know how to turn on the oven.

Similarly, successfully calculating the return on investments requires having a complete picture of what you will be investing in.

Ask Yourself These Four Questions

  1. Do I understand what improvement this investment will result in and/or the problems it will solve?Core to measuring the return on the investment is knowing what it is that you have to measure. That will be some quantifiable amount of anticipated revenue, productivity gain, staffing reduction, or increase in clients served. You should know what those metrics are at the start of a project.
  2. Have I thoroughly considered the staffing changes that this investment might enable or require?For any large investment, like a new fundraising database or constituent management system, or a new, complex initiative, you want to know upfront how your day-to-day operations will be impacted. A new system might automate laborious processes, allowing you to repurpose staff. Or it might well require additional staffing in order to maximize the return. Those costs or savings are a key factor in the ROI.
  3. Do I have the necessary buy-in from the board, executives, and staff that will result in a successful implementation?Key to any large project’s success is having the support from the key decision makers. If you’re in middle management, and your initiative is not well understood and appreciated by those in charge, then there’s a significant chance that the project will fail. As right as you might be that your organization would benefit, again, the return on investment requires that the organization is invested.
  4. Have I identified any required training and ensured that we have the resources to provide it and the time to take it?So much of the value in a new system is derived from people knowing how to use it. In resource-strapped nonprofits, training time is often seen as frivolous or less important than whatever the crisis du jour might be. Don’t let that happen, because what you get out of a system is all contingent on being able to use it well and strategically. Without training, people will tend to try and emulate what they did before the new system was in place, and that will more likely reduce your return than produce it.

Tools and Tactics

There are some techniques for calculating ROI. As noted above, you should start with metrics that identify your current conditions and can be tracked after implementation. These might be dollars received, hours spent doing tasks, or number of employees dedicated to a process. Consider this your baseline. From there, you can forecast a scenario based on the advantages that you anticipate having upon completion of the project.

For example, if your current fundraising system can’t track multiple donors at the same address, then you’re probably expending time and effort to track such things in creative ways. A system that properly supports “householding” will eliminate the workarounds that you’ve created to maintain that data. You can estimate the time saved.

Once completed, these before and after numbers will help you quantify the anticipated return, as well as guide the implementation. That’s because the forecast is a set (or subset) of your goals.

  • Be sure to track both short- and long-term impacts. One basic calculation is a 5- or 10-year financial analysis. It’s not uncommon to have increased implementation costs in the first year, so tracking the annual cost fluctuations over the expected life of the investment will give you a better picture of its value.
  • For example, say you decide to invest in a donor tracking system, replacing a laborious task of tracking donations in Excel. Your current annual fundraising is about $1 million. You have reasonably estimated that the new system will net you an additional $50,000 a year, after a two-year ramp-up phase with the system. It’ll achieve that via cost savings due to efficiencies realized and increased revenue based on superior fundraising tools. Here’s what a 10-year analysis might look like:
Example spreadsheet showing ten-year analysis of costs, revenue, and net revenue

Other things might impact revenue as well, such as improved marketing, so we’re only tracking anticipated revenue associated with this investment.

Finally, don’t work in isolation. Talk with peers who have done similar projects. Find out what worked for them and what didn’t, and what successes they were able to measure. Much of this forecasting is based on speculation, and your job is to fact-check that speculation and get it closer to reality as much as you can.

Checking Your Work

As noted above, you should start with metrics that identify your current conditions and can be tracked after implementation. These metrics could be dollars received, hours spent doing tasks, or number of employees dedicated to a process. Checking your work may seem unnecessary, as the dollars have already been spent, but tracking your progress is the best way to improve on calculating ROI on subsequent investments. You can learn a lot, not only about the particular project, but about your organizational effectiveness as a whole.

The Secret to Calculating ROI

This is the secret: it’s not the return on the dollars spent. It’s the improvements in your organizational capacity and efficiency that can be made if you develop a culture that can predict which investments are worthwhile.

Further Reading

Image: Twinsterphoto / Shutterstock

It’s Past Time For The Overtime Change

Last week, the house held hearings on the new overtime rules that double the base salary requirement for exempt employees. With these changes, if you make $47,476 a year or less, you can not be granted exempt status and, therefore, must be paid overtime when you work extra hours (per your state regulations). The hearings were dramatically one-sided, with tMoney bagestimony from a stream of nonprofits and small businesses that oppose the increase. My hope is that the politicians that staged this play had to look pretty far and wide to find nonprofits willing to participate, but I doubt that they did.

We can’t change the rest of the world by abusing the piece that we manage. If we want to cure diseases, reduce poverty, help Veterans or protect the environment, we can start by building an effective organization that is motivated and resourced to make a difference. And that means that we reasonably compensate our staff. I’ve blogged before on my take that the perk of serving a personally meaningful mission can offset some of my salary requirements, but that the discrepancy between a nonprofit salary and what one could make next door can’t be too vast, because too large of gap leads to high turnover and resentment.

What needs to be understood about this overtime law is that it isn’t setting some new bar. It’s addressing an existing abusive situation. The justification for exempt status revolves around the responsibilities an employee has, and their leverage to influence the success or failure of the company. Managers can be exempt. People with highly specialized skills can be exempt. And the odds are, if you have people on your payroll who, by being bad at their jobs, can sink your nonprofit, you’re already paying them $50,000 or more. It’s simple risk management: you don’t want to undervalue your critical personnel.

Accordingly, if you’re Easter Seals of New Hampshire (one of the nonprofits that testified at the hearing), and you’re saying that this increase will destroy your business, then I’m here to tell you that it’s one in a number of things that are lined up to take you down, starting with the mass walkout you might experience if your overworked and underpaid staff get fed up.

In my time in the nonprofit sector:

  • I’ve learned of nonprofits that exploit “apprentice laws”, allowing them to pay people as little as $5 an hour to do repetitive labor while the CEO makes hundreds of thousands.
  • I regularly see talented people ditch nonprofits after two or three years of doing amazing, transformative work, but never seeing a raise for it (or a penny of overtime). It takes these orgs months on end to recover.
  • And I’ve seen nonprofits loaded with staff that have worked there for decades, doing their job in the same ways that they’ve done them since “Microsoft” was a company name yet to be coined.

Because paying people fairly and competitively isn’t a giveaway. It’s a sound business practice. And we can’t continue to say that we are the people improving lives when we’re abusing those closest to us. This increase is long overdue and, if it breaks the back of a nonprofit to compensate staff for working long hours, then they are supporting the wrong mission to begin with.

Year-end Reflections

This post was originally published on the NTEN Blog on December 24th, 2015.

As years go, 2015 was a significant one in my career. The work of a CIO, or IT Director, or whatever title you give the person primarily responsible for IT strategy and implementation, is (ideally) two parts planning and one part doing. So in 2015—my third year at Legal Services Corporation—we did a couple of the big things that we’d been planning in 2013 and 2014.

First and foremost, we (and I do mean we—I play my part, but I get things done with an awesome staff and coworkers) rolled out the first iteration of our “Data Portal.” The vision for the Data Portal is that, as a funder that works primarily with 134 civil legal aid firms across the U.S. and territories, we should be able to access the relevant information about any grantee quickly and easily without worrying about whether we have the latest version of a document or report. To reach this vision, we implemented a custom, merged Salesforce/Box system. This entailed about a year of co-development with our partner, Exponent Partners, and a move from in-house servers to the Cloud. We’ll complete our Cloud “trifecta” in early 2016, when we go to Microsoft’s Office 365.

This was particularly exciting for me, because I have been envisioning and waiting for technology to reach a level of maturity and… collegiality that makes the vision of one place where documents and databases can co-exist a reality. Integration, and one-stop access to information, have always been the holy grails that I’ve sought for the companies that I’ve worked for; but the quests have been Monty Python-esque through the days when even Microsoft products weren’t compatible with each other, much less compatible with anything else. What we’ve rolled out is more of a stump than a tree; but in the next year we’ll grow a custom grants management system on top of that; and then we’ll incorporate everything pertinent to our grantees that currently hides in Access, Excel, and other places.

I’m working on a much more detailed case study of this project for NTEN to publish next year.

Secondly, we revamped our website, doing a massive upgrade from Drupal 7 to… Drupal 7! The website in place when I came to LSC was content-rich, navigation-challenged, and not too good at telling people what it is that we actually do.The four separate websites that made up our entire site weren’t even cross-searchable until we addressed that problem in early 2014. Internal terminology and acronyms existed on the front page and in the menus, making some things incomprehensible to the public, and others misleading. For example, we often refer to the law firms that we fund as “programs.” But, in the funding world, a “program” is a funding category, such as “arts” or “environment.” Using that terminology. along with too buried an explanation that what we actually do is allocate funding, not practice law ourselves, led many people to assume that we were the parent office of a nationwide legal aid firm, which we aren’t.

The new site, designed by some incredibly talented people at Beaconfire-RedEngine (with a particular call out to Eve Simon, who COMPLETELY got the aesthetic that we were going for and pretty much designed the site in about six hours), tells you up front who we are, what we do, and why civil legal aid is so important, in a country where the right to an attorney is only assured in criminal cases. While civil cases include home foreclosures, domestic violence, child custody, and all sorts of things that can devastate the lives of people who can’t afford an attorney to defend them. This new site looks just as good on a phone as on a computer, a requirement for the Twenty-Teens.

My happiness in life directly correlates to my ability to improve the effectiveness of the organizations that I work for, with meaningful missions like equal justice for all, defense against those who pollute the planet, and the opportunity to work, regardless of your situation in life. At my current job, we’re killing it.

Creating A Tech-Savvy Nonprofit Culture

This article was originally published in NTEN Change Magazine in June of 2015.

TechSavvy

What kind of challenge does your organization have supporting technology? Below are several scenarios to choose from:

  • Little or no tech staff or tech leadership: We buy inexpensive computers and software and rely on consultants to set it up.
  • Our IT support is outsourced: there is no technology plan or any staff training.
  • We have a tech on staff who does their best to keep things running: no staff training, no technology planning.
  • We have a tech on staff and an IT Director, but no technology plan: IT is swamped and not very helpful.
  • We have staff and IT leadership, but strategic plans are often trumped by budget crises. Training is minimal.
  • IT Staff, Leadership, budget, and a technology plan, but executive support is minimal. IT projects succeed or fail based on the willingness of the departmental managers to work with IT.

What do all of these scenarios have in common? A lack of a functional technology plan, little or no staff training, and/or no shared accountability for technology in the organization. While it’s likely that the technical skills required in order to successfully perform a job are listed in the job descriptions, the successful integration of technology literacy into organizational culture requires much more than that. Here are some key enabling steps:

Technology Planning: If you have a technology plan, it might not do more than identify the key software and hardware projects planned. Technology planning is about much more than what you want to do. A thorough plan addresses the “who,” the “why,” and the “how” you’re going to do things:

  • A mission statement for the technology plan that ties directly to your organizational mission. For a workforce development agency, the tech mission might be to “deploy technology that streamlines the processes involved in training, tracking, and placing clients while strategically supporting administration, development, and communications”.
  • A RACI matrix outlining who supports what technology. This isn’t just a list of IT staff duties, but a roadmap of where expertise lies throughout the organization and how staff are expected to share it.
  • A “Where we are” assessment that points out the strengths, weaknesses, threats, and opportunities in your current technology environment.
  • A “Where we need to go” section that outlines your three to five year technology vision. This section should be focused on what the technology is intended to accomplish, as opposed to which particular applications you plan to buy. For example, moving to internal social media for intra-organization communication and knowledge management” is more informational than “purchase Yammer.
  • Finally, a more technical outline of what you plan to deploy and when, with a big disclaimer saying that this plan will change as needs are reassessed and opportunities arise.

Training: Training staff is critical to recouping your investments in technology. If you do a big implementation of a CRM or ERP system, then you want your staff to make full use of that technology. If you’re large enough to warrant it (50+ staff), hire an in-house trainer, who also plays a key role in implementing new systems. This investment will offset significant productivity losses.

Smaller orgs can make use of online resources like Khan Academy and Lynda.com, as well as the consultants and vendors who install new systems. And technology training should be part of the onboarding process for new hires, even if the trainers are just knowledgeable staff.

In resource-strapped environments, training can be a hard sell. Everybody likes the idea, but nobody wants to prioritize it. It’s up to the CEO and management to lead by policy and example – promote the training, show up at the training, and set the expectation that training is a valued use of staff time.

Organizational Buy-in: Don’t make critical technology decisions in a vacuum. When evaluating new software, invite everyone to the demos and include staff in every step of the decision-making process, from surveying them on their needs before you start defining your requirements to including staff who will be using the systems in the evaluation group. When staff have input into the decision, they are naturally more open to, and accountable for, healthy use of the system.

Executive Sponsorship: With technology clearly prioritized and planned for, the last barrier is technophobia, and that’s more widespread than the common cold in nonprofits. Truly changing the culture means changing deep-rooted attitudes. This type of change has to start at the top and be modeled by the executives.

True story: At Salesforce.com, every new employee is shown the “Chatter” messaging tool and told to set up a profile. If a new user neglects to upload a photo, they will shortly find a comment in their Chatter feed fromMarc Benioff, the CEO of Salesforce, saying, simply, “Nice Photo”. That’s the CEO’s way of letting new staff know that use of Chatter is expected, and the CEO uses it, too.

Play! One more thing will contribute to a tech-savvy culture: permission to play. We want to let staff try out new web tools and applications that will assist them. The ones that are useful can be reviewed and formally adopted. But locking users down and tightly controlling resources – a common default for techies, who can trend toward the control-freakish side – will do nothing to help establish an open-minded, tech-friendly atmosphere.

Overcoming Tech Aversion: We all know, now, that technology is not an optional investment. It’s infrastructure, supplementing and/or taking the place of fax machines, printers, photocopiers, telephones, and in more and more cases, physical offices. In the case of most nonprofits, there isn’t an employee in the company that doesn’t use office technology.

But there are still many nonprofits that operate with a pointed aversion to technology. Many executives aren’t comfortable with tech. They don’t trust it, and they don’t trust the people who know what to do with it. A whole lot depends on getting tech right, so enabling the office technologist – be it the IT Director or the accidental techie – is kind of like giving your teenager the keys to the car. You know that you have to trust them, but you can’t predict what they’re going to do.

Building that trust is simply a matter of getting more comfortable with technology. It doesn’t mean that management and staff all have to become hardcore techies. They just have to understand what technology is supposed to do for them and embrace its use. How do you build that comfort?

  • Have a trusted consulting firm do a technology audit.
  • Visit tech-savvy peers and see how they use technology.
  • Go to a NTEN conference.
  • Buy an iPad!

Building a tech-savvy culture is about making everyone more engaged, accountable, and comfortable with the tools that we use to accomplish our missions. Don’t let your organization be hamstrung by a resistance to the things that can propel you forward.

A Tale Of Two Domain Extensions

icann_new_top_level_domains_tld_gtld_sign2_by_felixart05-d6iedi6

Graphic by Felixart05

icann_new_top_level_domains_tld_gtld_sign2_by_felixart05-d6iedi6 We’ve gotten far past the early internet days when registering a domain name usually meant choosing between .COM, .ORG, and .NET. The number of top level domains (TLD) has exploded, and you can now grab names ending in .BAND, .BEER, .BARGAINS, .BEST, .BLOG, .BOO, .BUZZ, and .WTF (really!), to name just a few. The full list of new additions is here.

Two new TLDs are of particular interest to nonprofits.  Next week, you’ll have the option of registering a .NGO domain (Non Govermental Organization).  Should you? I’d say that it depends on the scope of your nonprofit.  Is it international?  Do you work outside of the US? Non-Governmental Organization isn’t a meaningful distinction here in the states (where I work at what is casually called a quasi-governmental nonprofit), but it’s much more common everywhere else.  If your org is focused on a local U.S. community, it probably makes no sense to pay for a domain name that your constituents might not even understand, much less expect. Otherwise, it seems really prudent to be accessible using the standard terminology in the countries that you work with. Just register it and point it to the same site as your .ORG.

Update: actually, there might be a few reasons to invest in .NGO, even if you don’t have an international presence. The article “Four Reasons Why Your Nonprofit Should Register .NGO and .ONG” was pretty enlightening. One key point is that, unlike with .ORG, .NGO/ONG registration requires proof of your nonprofit status, which will increase the trust level of potential donors. Another is that a large, potentially considered “definitive”, directory of nonprofits will be based on .NGO/ONG registration.  Thanks to Chris Tuttle for this heads up!

The other up and coming TLD is the new .SUCKS extension. While .WTF is pretty funny, .SUCKS is a bit of a threat. Many of us register the .COM equivalent of our .ORG domain name to protect our brands from impostors or critics (if you don’t, and it’s available, you should). So who wants to see a .SUCKS variant of their domain name out there?  None of us.  So, should you grab this one as a stopgap too? I say, no way.

First, there’s already a complaint filed with ICANN against Vox Populi, the company offering .SUCKS registrations, rightly claiming that their policy of famous people and brands and offering them a $2500 (annually!) first shot at registering the .SUCKS variant of their name prior to chopping down the price to $10 for anyone else is equivalent to extortion.

But my case is that, extortion attempts aside, even $10 a year is too much to pay, because owning the .SUCKS equivalent of your brand won’t protect you from anything. Anyone can register a “yourorgsucks” domain with a .COM or .NET or .WTF extension. and nobody is going to think that a techcafeteria.sucks domain lobbing grammar critiques of my blog is something that I created or endorse…

…because misteaks.

So .NGO is go if you go beyond the borders, but .sucks sucks. Just say no!

What Is Nonprofit Technology – The Director’s Cut

This article was originally published on the NTEN Blog on March 10th, 2015, where it was edited for length. As with any director’s cut, their version might be better than this one! But this is how it was originally composed. Click here for more context.

For the past 14 years, I’ve been working for 501(c)(3) corporations, commonly referred to as nonprofits.  I’ve also become active in what we call the “nptech” community — “nptech” being shorthand for “nonprofit technology”.  But nonprofits, which comprise about 10% of all US businesses, have wildly diverse business models.  To suggest that there is a particular type of technology for nonprofits is akin to saying that all of the businesses in downtown Manhattan have similar technology needs. So what is nonprofit technology?  Less of a platform and more of a philosophy.

Snowflakes? No flakes.

It’s often said that each nonprofit is unique, like a snowflake, with specific needs and modes of operation.  Let’s just remember that, as unique as a snowflake is, if you lay about a million of them next to each other on a  field, you can not tell them apart.

Nonprofits do not use any technology that is 100% unique to the nonprofit sector.  Fundraising systems operate exactly like sales systems, with leads, opportunities, campaigns and sales/donations. Similarly, advocacy applications are akin to marketing software. What nonprofits call Constituent Relationship Management Systems are called Customer Relationship Management systems everywhere else.  I want to make it clear that the technology used by nonprofits is analogous enough to what for-profits use to be nearly indistinguishable.

Also, small businesses, big businesses, most businesses operate under tight margins.  They keep overhead to a minimum.  They make decisions based on a scarcity of funding.   Nonprofits are not unique in their lack of sizable technology budgets.

No Margin for Investment.

The most significant difference between a nonprofit and a for-profit, from a business perspective, is this:

A for-profit holds to tight budgets in order to maximize profit. A nonprofit holds to tight budgets in order to remain funded.

Of course, for-profits can go under by getting their overhead ratio wrong.  But where they have room to move, and, say, invest 30% in overhead one year in order to boot up a long-term, profitable strategy, they can.  They can make the case to their board. Their customers will likely not even know how much they spent on technology, marketing, or extra staff.

If a nonprofit decides to boost the overhead rate by 30% for a year in order to boot up a long-term, mission-effective strategy, then Guidestar, Charity Navigator, the Better Business Bureau and their own website will, basically, tell their donors that they’re a bad investment, and the drop in donations might well sink them.  501(c)(3)’s are required to publish their financial statements for public review annually, and this is the data that they are primarily assessed on.  The effectiveness of their strategies are harder for nonprofits to qualify than it is for a retailer or manufacturer.

Customers don’t care how a Target and WalMart run their businesses; they care that they can buy anti-bacterial wipes at competitive prices. Constituents care deeply about how much of their donation is going to the people or cause that a nonprofit serves, as opposed to the operating expense of the nonprofit.

All businesses want to minimize expenses and increase profitability (even nonprofits!). But nonprofits must minimize those expenses; they have no strategic breathing room when it comes to funding operations.

Management is not the priority, fundraising is.

So, for a nonprofit, a CEO’s primary job is to maintain the funding.  In many cases, this means that the qualifications of a nonprofit CEO have a lot to do with their networking and fundraising skills.  Many nonprofits are run by people who don’t have extensive training or experience in business management.

Nonprofit IT Staff aren’t your typical techies

Nonprofits have lower IT budget and staff ratios than a typical for-profit. The average nonprofit IT budget is 1% to 2% of the entire budget, per NTEN Staffing Survey; average for-profit is 2% to 3%, per Gartner). IT Salaries are consistently below the market rate, and they vary wildly, with some nonprofits paying far below market, others at market. A common scenario at a nonprofit is for the technical staff to include, if not be totally made up of, “accidental techies“.  People who were hired for clerical or administrative work, had a knack for tech, and became the defacto tech person, sometimes also getting a title that reflects that. This is more common in smaller organizations, but it can happen anywhere that the administrative staffing is a small percentage of the overall staff and/or the CEO doesn’t know to hire IT professionals.

Is that a bad thing? Yes and no.  Accidental techies are often the people who had good, strategic notions about how technology could be applied to achieve objectives.  They tend to be smart, autonomous, good learners and teachers.  But they are more likely to be reactive and opportunistic in their approach to their work. IT also benefits from planning and consistency.  Truthfully, you need both styles on a healthy IT team.

So what is “Nonprofit Technology”?

It’s both a class of software and an approach to technology deployment.

Nonprofit technology includes fundraising, advocacy, grants management and other applications that support the primary technology needs, such as donor management and promotion of causes. In some cases, the same systems that salespeople and marketers use can suffice, as evidenced by the popularity of Salesforce in the nonprofit space. But the nonprofit sector has it’s own terminology around revenue processes, so, if commercial software is used, it’s modified to address that.  In the Salesforce case, a nonprofit will either use the Nonprofit Starter Pack, which “skins” Salesforce to feel more like a fundraising system, or purchase an actual fundraising application developed for the platform, such as Roundcause or Blackbaud’s Luminate.  Idealware, a nonprofit dedicated to helping nonprofits make good software choices publishes a booklet listing the types of software that nonprofits use.

Outside of those specialty applications, nonprofits use fairly standard stuff from Microsoft, Adobe, Google and other big companies. Many of these companies offer charity pricing, and further discounts are available to 501(c)(3)’s through Techsoup, a company that provides a transaction layer to vendors who want to donate software to charities. A seasoned IT staffer knows how to cut through the front line salespeople and find the person at a company that might make a donation or discount software or hardware.

But purchasing software is actually the easiest part.  Deploying it is the challenge, with little IT staff and less time to focus on how systems should be implemented, technology rollouts are often done on the fly.  Where a for profit might invest significant time up front analyzing the business processes that the system will address; evaluating products, and training staff, these steps are a hard sell in an understaffed environment where people always have at least five other things to prioritize.

Taking the NPTech Challenge

So if you are thinking of working at a nonprofit as an IT implementer (System Manager, IT Director, CIO), take heart: the work is rewarding, because the motivations are broader than just bringing home a paycheck.  The people are nice, and most nonprofits recognize that, if they’re going to pay poorly, they should let people have their lives nights and weekends. There are opportunities to learn and be creative. The constrained environment rewards inventive solutions. If you’re a tech strategist, you can try things that a more risk-averse for profit wouldn’t, as long as you the risk you’re taking isn’t too costly. For example, I built a retail reporting data warehouse at a Goodwill in 2003, saving us about a $100,000 on what it would have cost to buy a good reporting system.  I also pitched a business plan and started up ecommerce there, and I don’t have a college degree. If money isn’t your motivation, but accomplishing things that make a difference in people’s lives does excite you, this is a fertile environment.

That said, if you don’t like to talk to people, and you don’t think that marketing should be part of your job, think twice.  Successful technology implementations at nonprofits are done by people who know how to communicate. The soft skills matter even more than the tech skills, because you will likely be reporting to people who don’t understand what tech does.  If you can”t justify your projects in terms that they’ll understand, they won’t consider funding them.

You should be as good at the big picture as you are at the small ones.  NPTech is all about fixing the broken routers while you configure the CRM and interpret the Google analytics. You have to be good at juggling a lot of diverse tasks and projects, and conversant in multiple technologies.

Creativity trumps discipline. If you strictly follow the best ITIL policies and governance, be afraid. Strict adherence to for profit standards requires staffing and budget that you aren’t likely to have.  Good technology governance at nonprofits is a matter of setting priorities and making strategic compromises.

Collaboration and delegation are key. Nonprofits have a lot of cross-department functionality.  If you are all about IT controlling the systems, you’re going to have more work on your plate than you can handle and a frustrated user-base to work with.  Letting those who can do tech do tech — whether or not they have the credentials or report to you — is a key strategy towards getting it done.

NPTech is not just a job, it’s a community.

If some of what I’ve described above sounds discouraging, then know that the challenges are shared by a  committed group of tech practitioners that is welcoming and relatively free of ego.  Nobody has to take on the battle of improving nonprofit technology alone.  Search the #nptech hashtag on Google or Twitter and you’ll find groups, blogs and individuals who see this challenge as a shared one for our sector.  Make the time to check out an NTEN 501 Tech club meeting in your city or, better yet, attend their annual conference. Read all of the articles at Idealware.  Join the forums at Techsoup.  If this work is for you, then you are one of many who support each other, and each other’s organization’s missions, and we’ll help you along the way.

A Healthy Skepticism About Medicine Shouldn’t Deter You From Vaccines

We interrupt this blog for a public service announcement.

medical trust

 

Here’s what I get — the 21st century U.S. medical establishment is not all that trustworthy. HMO’s sometimes limit testing and doctors prescribe unnecessary drugs. I am not a doctor, or any kind of expert, but I have read enough doctors’ opinions to have a healthy skepticism that the number of ADHD and anti-depression prescriptions being written seriously outpaces the actual instances. I think they are over-medicating and misdiagnosing regularly.

True, funny story: one of my son’s school’s staff asked my wife what medications he was on. When she said “none”, they were visibly shocked. We don’t know whether this is because our kid is a complete exception to the rule, or because they assumed that he was drugged because he’s such a sweet-tempered kid, or both. But it is disturbing. This isn’t a special ed school. Kids should not be spending five days out of each week on drugs without very good reason.

So I think a skepticism regarding modern medicine is a healthy thing. I follow my doctor’s instructions, but I’m picky about who I choose to be my doctor. And I do ask questions. I’ve had doctors do things like recommend a month in bed when my back went out — the opposite of good advice — and another that left a stitch in my back and denied it — I had to see another doctor to get it out.

So, when it comes to vaccinating your kids, well, yes, pay attention. The number of vaccinations recommended today is about four times the number required in the mid-seventies. Get a pediatrician that you trust and work with them. There might be circumstances that justify varying the recommended schedule a little bit — the Doctor will have a much better perspective on that than you will. But here are two things that should be completely obvious to anyone who isn’t ridiculously self-deluded:

  1. The established, half-century old vaccines like the Measles, Mumps Rubella vaccine are extremely safe, and your children will be safer if they take them, as well as mine.
  2. This isn’t about laws and Government and family rights. This is about civilization and social contracts. We vaccinate our children because we live in a society, not a vacuum tube.

There’s a curve here that, at one end, has accepting anything a doctor says as fact; not far from that end, having a healthy skepticism; and, far on the other side, deciding that you are more of an expert than 1000 doctors with PHDs. It does take work, research, and thought to determine what is BS and what is real. But parents have an obligation to tackle those questions, to seek good counsel, and to not let paranoia be your guiding light. Because believing that you are protecting your child, or anyone else’s, by skipping the established vaccines, is pure paranoia and ridiculous ego. You owe it to your children to be more reasonable than that.

Graphic by me, CC No Attrib.

Inking The Deal: What We’ll Discuss at the #15NTC Contract Negotiation Session

This post originally appeared on the NTEN Blog on January 20th, 2015.

For this month’s Connect theme, a number of speakers are previewing the great breakout sessions they are preparing for the 2015 Nonprofit Technology Conference in Austin, TX March 4-6. Following is a preview of one of over 100 breakout sessions.

The 15NTC session, “Software and Service Contracts: How To Negotiate Reasonable Terms in the Cloud Era” is the third in my series of, “How wonky can we get?” information exchanges. At the 2013 Nonprofit Technology Conference in Minneapolis, I spoke on Project Management; and last year, in DC, on Requests for Proposals. While these topics aren’t quite as trendy as data visualization and the mobile web, they are focused on the job skills that allow us to do all of the cool stuff. As a nonprofit technology executive, I’ve bought and deployed a lot of systems. Sharing what I’ve learned along the way is the least I can give back to a great Community like NTEN. What are the things that have to be in place in order to successfully roll out software and systems?

  1. Good project management: in particular, the right methodology for the job
  2. A thorough selection process, one that doesn’t let the desire for a low-fixed bid trump the priority of selecting the right system or partner
  3. A contract with that vendor that fairly establishes the remedies should things with the vendor go wrong

I try and bring a few things to these sessions to make them memorable. In this case, the move from server rooms to cloud-based server farms has changed the dynamic of our customer/vendor relationships. Software contracts need to reflect that. In the cloud, we have new issues to negotiate, such as:

  1. What happens to customer data when a vendor goes out of business?
  2. Do our negotiated terms apply to subcontractors, when, say, the vendor’s service uses Amazon as a storage platform?
  3. Who is responsible when something breaks?

Mostly, I want to impress upon everyone that terms can be negotiated. In these days of shrink wrap software licenses, many nonprofits forget that we can protect ourselves from nasty terms. Here are some quick thoughts:

  1. Vendors should tie termination fees to strong service level agreements, or waive them altogether in cloud contracts, where they should merit your monthly payments by providing a  solid service
  2. Who benefits from automatic renewals? Should you sign a contract that renews automatically at the original term if the original term is three years or more?
  3. The jurisdiction that governs the remedies should be your home state or, at worst, theirs.  Beware: some vendors are fine about choosing obscure courts that they know will protect their interests

And, finally, I’ll offer a few tips on the negotiating process. Some co-workers of mine have expressed concerns that bickering over contract details can hurt the vendor relationship. Done right, the contract negotiation establishes a tone in the relationship that will last throughout the engagement, and it’s one of mutual respect and a commitment to confront key issues, rather than to avoid them.

So don’t be afraid to get wonky! Join me at the 15NTC for a session that might not be the sexiest you attend, but will provide you with the tools you need to protect your technology investments.

About the author:

By day, Peter Campbell is the CIO at Legal Services Corporation, America’s Partner for Equal Justice. At other times, he can be found blogging and talking about all things nptech at Techcafeteria or on Twitter.

Image credit: “The Land of Contracts” by David Anthony Colarusso

13 Lessons On Building Your Nonprofit Technology Culture

This article originally appeared on the Exponent Partners blog on December 19th, 2014. It was written by Kerry Vineburg, based on a phone interview with me.

EXPONENT PARTNERS SERIES: SMART PRACTICES

Is your nonprofit thinking about implementing a large database project like Salesforce? Nonprofit and technology veteran Peter Campbell, CIO at Legal Services Corporation, recently shared his valuable insights on how to prepare your team and culture for long-term success. His organization, the top funder of civil legal aid for low-income Americans in the country, is developing Salesforce as a data warehouse for their grantee information and document management. 

We asked Peter to tell us more about what practices he uses to help ensure a successful technology implementation. As you’ll see, it’s just as much about working with people! 

Embarking On Your Project

1. When beginning a technology project, agree on the problem you’re solving, that all staff can relate to. Organizational readiness is critical. I’ve worked at organizations that didn’t recognize that their casual approach to data management was a problem, and they weren’t looking for a solution. If your staff don’t understand why they need an application, then you’re in danger of installing something that won’t be utilized. When starting a new organizational project, I identify 2-3 core bullet points that will explain the goals of the project, and repeat them often. For example: “The new system will provide one-step access to all information and documents related to a grantee.” That’s the high-level goal. It should be something where the product users all agree, “Yes, I need that!”
2. When planning technology upgrades and projects, schedule the changes. Plan for gradual change. Early in my career, I had to deal with the Y2K bug and replace every system at a mid-sized law firm in a short period. It led me to this philosophy: replace only one major system each year. It’s a myth that people hate change — people hate disruption. Change is good, but needs to be managed at steady level. If you’re doing regular implementations every year, people can get used to that pace. If you do nothing for 3 years, then switch out everything: 1) you’re putting too much of a burden on your implementers to achieve everything at once and 2) you’re making too big of an imposition on staff. Suddenly, everything they know is gone and replaced.

Getting Buy-In

3. Gain full executive sponsorship. There’s a common misconception that a new system will just work for you once it’s installed. To fully realize the benefits of a CRM requires cultural change. Every level of the organization needs to buy into the project. You’ll need to harness a lot of attention and energy from your team to develop requirements, manage the project, learn the new system and adapt processes. Otherwise, you’ll invest in a big database implementation and only one or two people will use it.
The importance of a major system upgrade should be set by the executive director and/or board. Everyone should know that the system is a priority. At nonprofits, our executive directors are often better at fundraising than managing a business, and many are somewhat technophobic. They don’t need to be technology gurus, but they do need to understand what the technology should be doing for them, and to take ownership of those goals. The last thing that I want to hear from my boss is, “Here’s a budget — go do what you think is best.” Without their interest in my projects, I’m bound to fail.
4. If one buy-in approach needs help, try a combo. If you can’t convince your executive director or other leadership to be regular active participants, power users can sometimes help convince your team. I’m not recommending an either/or approach, there should be some of both, but power users can engage staff in cases where management isn’t setting clear expectations. For any project that impacts staff, I will invite key users to be on our evaluation team, help with product selection, and potentially be on our advisory committee during the project. For example, we have a grants department liaison, who is charged with getting the right people in the room when we need input from the staff that know much better than we do what the system should ultimately do for them.
5. Incorporate perspectives from around the table. In addition to power users, I also want feedback from “standard” users. Maybe they don’t love technology so much, and maybe they wouldn’t volunteer for this. But they have an important perspective: you need to understand their reactions and what they’re going to find difficult. As the IT director and CIO, I know important things about managing a project. The users know important things that I don’t. If we don’t have views from multiple sides of the table, the project will fail.

Working With Good People

6. Look for partners (vendors and consultants) who understand your mission, not just the technology. In the ideal situation, you want people who not only get database and programming work, but also really understand your mission and business priorities. I’m blessed to have developers on my team who not only understand grants management but are also sympathetic to what the people coming to them are trying to accomplish. When they get a request, they can prioritize with a good understanding of our organization’s requirements. They’re able to answer, “How can I make the most out of what this person needs with my available time?” while being skilled enough to capably choose between the technical options. Getting people that have a broader mindset than just technology is really important.
7. Vary your team and role strategy with your size. At nonprofits, we don’t usually have big internal teams. Someone becomes our accidental techie/database guru. Even large nonprofits are hurting for staff. It’s always been less “here’s the best practice and ideal way to staff this,” and more “let’s see what budget and people I have, and make it work as well as I can.” Not many nonprofits have developers on staff. Hiring can be challenging. It’s a popular skillset, and won’t be cheap. If you’re tiny, you probably won’t hire full-time, you’ll outsource to consultants. But if you have 30 people or more using the CRM, you might benefit from in-house expertise, even if it’s a half-time role.
If you already have developers on staff, that’s great. If they don’t have experience with, say, Salesforce, but they do know database design and a programming language or two, it’s not hard to pick up the concepts. You’re modeling a database, designing it, and then scripting on top of it in a similar language. They can probably adapt.
8. Practice good compensation and retention strategies for your technically savvy (and/or newly trained) staff. I’ve seen a trend over the past 10 years. A nonprofit decides to use a solution like Salesforce and they charge their accidental techie with the task of implementing. The accidental techie gets the implementation done, becomes a guru on it, trains all the users, and then because the organization is paying them an entry-level salary, they leave and go get a much higher paying job as a consultant! It’s a valuable skillset, so don’t be short-sighted about compensating them for what they do for you. You need to be careful and invest properly. Give them raises along with the skillset, to make sure they are fully motivated to stick with you.

Project Management

9. Avoid surprises with good communication. My rule of IT management now is: “No one should ever be surprised by anything I do.” From experience with good mentors, I learned important lessons about communication: if you’re going to make a change, communication is critical. Say it 3 times in 3 different mediums (in email, on the internet, on flyers on the wall on every floor!). Be sure staff know how the technology contributes to the well-being of the organization, rather than being a time-waster, so they are motivated to keep working with it. Communicate well.
10. If possible, hold out for the right team. I put off projects to have the right people in place, rather than hold tight to a project deadline with the wrong people in place. See above for how to find and keep the right people.

Training and Baking The Technology Into Your Culture

11. Don’t reinvent the wheel; take advantage of the ecosystem. It can be really common for staff not to reach out for help. They may feel like their job is to learn the technology on their own. They should know there are many resources available to them! For example, with Salesforce, I recommend making use of peer support in the community, the Power of Us Hub, and local user groups. When they do seasonal updates, they do a lot of webinars and are good about providing information about how the app is growing. Salesforce also offers training (the Salesforce Foundation discounts by half) and every consultant I’ve spoken with is capable of doing some customized training. I know that other technologies offer resources like this also. It also behooves anybody on staff to know the specific implementation that you’ve done.
12. Allocate a training budget. I always push to have a staff training budget. For my organization, we even hired for a role of training and implementation specialist. We wanted to have a person on staff whose full-time job was training and strategizing how users use software and how to involve them in the implementation process. This should be part of your budget. I can’t emphasize enough how important it is to have people in your organization who know how to train on your applications.
13. Engage staff and help them understand the big picture of the technology. It’s good to get your team working with the database early on in the process, learning what it’s capable of and what it looks like. Engage your users: get people involved in every step of the process, from selecting products to implementation to training and rollout. Make the product demos big group activities, so that everyone can envision how similar systems work and what they might do with the product beyond what they’re doing today. Beta-test your implementations, giving staff lots of opportunities to provide input. Take an Agile approach of regularly showing what you’re developing to the people who will be using it, and adjusting your development per their feedback.
With a committed team that understands your mission, great communication, well-allocated resources, and gradual change, your organization can lay the foundations for a successful solution that will actually be adopted!
Thanks to Peter Campbell for these great insights. Peter also blogs at techcafeteria.com
For even more strategies on ensuring that your culture is ready for your system, check out our free report Nonprofit Technology Adoption: Why It Matters and How to Be Successful.

– See more at: http://www.exponentpartners.com/building-your-nonprofit-technology-culture#sthash.QPFll78h.dpuf

Should You Outsource Your IT Department?

This post was originally published on the MAP Techworks Blog in November of 2014. 

agreement-303221_640For a nonprofit that’s reached a size of 25 or more staff, a key question revolves around how to support technology that has grown from a few laptops and PCs to a full-blown network, with all of the maintenance and troubleshooting that such a beast requires. Should you hire internal IT staff or outsource to a more affordable vendor for that support? I’d say that the key question isn’t should you — that’s more a matter of finances and personal preferences. But what you outsource and how you go about it are critical factors.

The IT departments that I’ve worked on provided a range of services, which I’ve always broken down into two broad categories.  The first is the plumbing: computer maintenance, installation, database input, training, and tech support.  These functions can, with a few caveats, be successfully outsourced. The caveats:

  • You can’t just hire the outsourced IT firm and expect them to understand your needs after an initial meeting and walk-through.  They should be micro-managed for the first month or two.  Their inclination will be to offer a generic level of support that may or may not work for your application mix or your company culture. Orient them; set clear expectations and priorities; and check their work for a good while. If you don’t, your staff might immediately lose faith in them, setting up a situation where they don’t use the service you’re paying for and, when they do interact, do it begrudgingly.  The outsourced staff should be on your team, and you need to invest in onboarding them.
  • Everyone has to remember that it’s your network. Don’t give the outsourced service the keys to your kingdom.  You should keep copies of all passwords and they should understand that changing a system password without your prior knowledge, consent, and an updated password list is a fire-able offense.  And be ready to fire them — have a backup vendor lined up.

The other bucket is strategic tech planning. In-house infrastructure or cloud. Data management strategy. How tech integrates into a broader strategic plan and supports the mission.  How tech plays into the strategies of our partners, our clients, and our communities. These components can benefit from the advice of a good consultant, but are too integral to the work and culture of an organization to be handed off to outsiders wholesale.

Outsourcing your tech strategy can be a dangerous gamble.  If you have a great consultant who really cares about your mission, they can offer some good advice. But, in most cases, the consultants are more interested in pushing their tech strategy than developing one that works well with your organizational culture.  I find that my tech strategy is heavily informed by my understanding of my co-workers, their needs, and their ability to cope with change.  To get all that from outside of an organization requires exceptional insight.

Let me make that point another way — if you don’t have a tech strategist on your internal, executive team, you’re crippled from the start. These days, it’s as essential as having a development director and a finance person. Consultants can inform and vet your ideas, but you can’t outsource your tech strategy wholesale to them. It’s core to the functionality of any successful nonprofit.

The right outsourcer can be cost effective and meet needs. But be very thorough in your selection process and, again, do some serious onboarding, because your dissatisfaction will be tied completely to their lack of understanding of your business and your needs. There are a number of NP-specific vendors (Map for Nonprofits, former NPowers and others, like DC’s CommunityIT) that get us and are better choices, in general, than the commercial services.