Don’t chase the money: live your values instead

This is a longer version of a post I wrote for the Winnipeg Humane Society last week.

Our fiscal-year end is almost here. And as I watch nervously our finances to ensure we balance revenues and expenditures, I realized something that may sound counter-intuitive: chasing money is usually not the best way to make your organization succeed.

For those readers working in leadership positions, this may sound familiar: You have budgeted for your revenues -donations, sponsorship, events, sales- and for the expenses you estimate you will have.

And all of the sudden, your revenue projections are far short than budget

Has this ever happened to you? And how do we get more revenues to get our jobs done, or to keep our shareholders or bosses happy?

Let me start this blog with one of my most memorable work stories:

My then boss and I were meeting with a potential sponsor for a public event we were getting ready to launch.

I was in charge of pitching the program, for the first time.

We went over the figures and the value we have placed to sponsor a large event with thousands of participants expected to attend.

The sponsor looked at us and said:

“Javier, thank you for the presentation. We are not prepared to give us the requested amount. Instead we can give you half of what you ask, but we can sign a 3-year contract and give you a cheque right now”.

Without hesitation, not even looking at my boss, I answered immediately:

“We sincerely value your interest, but this event and our organization are worth more than what you are offering. So we respectfully and regrettably have to decline. If you guys change your mind, please let us know.”

The look in the person’s face could only be described as angry. He shook his head and stormed out of the room.

My boss looked at me, slightly agitated, and asked me:

Javier!!! Are you out of your mind? We can lose it all!

The good news (for the organization and for my job security!) was that the company came back at the number we respectfully requested.

And to this day the event and the sponsorship continues to thrive.

We all need money. Without revenue, we cannot operate or be successful in our jobs. One of the most common phrases I hear, especially in the charitable sector, is “We should take what we can get”.

The bottom line. It’s all about the bottom line.

But is it?

I would argue that the bottom line for any modern organization (profit or non-for-profit) is being transparent, staying true to our core values

Organizations, irrespective of their ownership structure dedicate their existence to fulfill a vision and a mission; to make a positive difference. We have a duty to our staff and to donors or shareholders. And every stakeholder has high expectations we must meet.

When someone, be it a person or a company, gives you money or does business with you, they should be doing so in great part because the values of the company align with your company, and of course because there are benefits in associating a brand with a respected charity; or because the product or service they are buying is great.

Anything above and beyond this would cross certain lines that no organization should ever cross.

Now before you picture me as an idealistic dreamer working for a charity, I am as a CEO most certainly concerned about money.

I loose sleep thinking about the fact that the Winnipeg Humane Society needs over 7 million dollars to operate.

We do not take any donor for granted.

But we know that in order to sustain ourselves in the long-run we need to prove to our supporters that our values, our core mission and our commitment to transparency and fairness won’t come with strings attached.

In other words, we must live by our values.

We love our donors and corporate partners. We appreciate their generosity and their trust. And we owe it to them and to the thousands of supporters we have to act according to our values.

Sometimes, we need to decline a potential sponsorship. Sometimes we do not chase the dollar even when our revenues are down and we are offered an amount that is not fair market value.

It is a tougher path. It may make some people upset. Doing what is right is not the same as doing what may be easier.

So yes, dear reader, your organization may desperately need more money or sales because there are so many needs in the community we cannot fulfill, or we need to keep our company afloat.

But we also need to go home every night and feel that we have not traded money from what the organization you lead stands for.

I would rather lose sleep trying to find ways to raise funds or generate sales in alignment with our values than stay awake all night because we accepted money we should not have taken in the first place.

And, after twenty years of working in both the private and charitable sectors, I can tell you that if you seek out those who share your values... you will find them.

And they will be ready and willing to give generously and to support you; or become lifetime customers if you work in the private sector.

Because these donors and customers believe in what the organization does, and the way the organization lives their values.

Trust me on this one. It does work out in the end.

Javier