progressive leadership in a disruptive digital age - #fro16

PROGRESSIVE LEADERSHIP IN A

DISRUPTIVE DIGITAL AGE

Nick Torday

@nicktorday

@nicktordayfundraisingonline.com

The components of a perfect storm

● Huge market disruption caused by technology

● Customer / supporter behaviours have changed radically

● Reputational integrity of the sector is under threat

● New data regulatory framework imminent (in the UK)


“Digital technology has fundamentally

changed two things: the dynamics of the

markets in which you operate and the speed

needed to remain competitive and relevant.”

Forrester Research, December 2015


Market context


“A key challenge identified in the 2015 Index is the

continued lack of engagement with digital amongst many

charities. Over half of all charities do not believe that

having a website would help increase their funding and

nearly 70% state the same about social media. With the

level of basic digital skills falling, in contrast with UK

trends, attitudes are of key concern.”

Lloyds Bank UK Business Digital Index 2015


UK: Charities marketing spend vs total marketing spend: 2007


Tracking ROI

● For 77% of the overall marketing spend, DM has represented 9% of overall

annual growth in voluntary income

● For 2% of the overall marketing spend, Digital has represented 6.2% of

overall annual growth in voluntary income

Source: Institute of Fundraising 2013 Fundratios Report


Leadership


Digital leadership

● Rise of the Chief Digital Officer in commercial sectors

● No equivalent roles in charity sector (a few CIOs)

● In 2015 alone, 10 CDOs have gone on to become CEO

● Charities Aid Foundation (CAF) Social landscape study: sector CEOs ranked

digital as 16th out of 18 in their strategic priorities


Core themes to consider

● Sector leadership is not recognising the digital opportunity

● Responsibility for the process has been delegated away from senior levels

● Digital leaders are often focused on delivery not strategy

● Siloed working means limited collaboration between digital and fundraising


Digital trustees?

● Very patchy tech / digital representation at board level

● Only 2.1% of trustees are under the age of 30, the average age being 57

● Tendency to risk aversion - tech investment usually has a chunky price tag

● Specialist recruitment is a challenge but essential


Governance checklist


Checklist for good governance

Does your organisation:

● Have the right skills and capabilities?

● Ensure that audience needs drive commissioning?

● Have a consensus around organisational priorities?

● Have effective workflow in place?

● Have good internal comms and collaboration?


Blurring boundaries

● The lines between digital, marcomms and IT are becoming increasingly

blurred - this is largely a good thing

● However, there are still disconnects between fundraising, digital and data

functions that result in massive missed opportunities


What the new looks like...

charity: water


charity: water in numbers

● 10 years old

● Turnover of $44m in 2014/15

● 100% model - every cent raised spent on delivering water

● Operational costs (approx $9m) paid by corporate partners

● Funded 16,000 clean water projects, reaching 5m people


charity: water - innovative model for the sector

● More tech start-up than traditional NGO

● Fully engaged with ‘millennials’ - a digital first mission

● Highly transparent and data-driven

● Innovation in service delivery - well monitors

● Micro-financing & crowdfunding models


What can you do?


It has to start with you...

● Take full ownership of the digital agenda

● Open up the pathways to management for digital and technology ‘natives’

● Bring digital planning to the heart of the strategic process in fundraising

● Set yourself and your team clear KPIs around digital transformation


Be prepared to learn

● Seek guidance and mentoring from your peers in other sectors - who has adapted

well to digital and how?

● Bring in industry expertise at board level - actively address the skills imbalance

● Acquire enough knowledge to be comfortable with the strategy, not the

implementation - and the semantics!


Unpick the DNA

● This is the hardest part - if your organisation is over 50 years old, the

cultural behaviours will be hard to change

● Be brave - it is no longer acceptable for people to be fearful of or

obstructive to technological innovation

● Lead by example: develop pilot innovation programs that meet specific

needs and demonstrate how you can evolve

THANK YOU!

progressive leadership in a disruptive digital age - #fro16

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