Motivate Your Team! Spend 15 Minutes Per Month Doing This!
A handful of years ago, I learned a critical (and rare) nonprofit leadership technique that I quickly put in my leadership toolbox. Shout out to my boss at the time, Christine Ross, now CEO of the Maryland Chamber of Commerce. She inspired this blog post.
Fast forward to today, where I work with the fabulous Chantal Sheehan, Founder & CEO of Blue Fox, an accounting firm that proudly serves nonprofits and social impact organizations. The stars align! So I want to share this technique with our readers because it really is a gamechanger.
What Is it?
The magic leadership tool I’m talking about is sharing your organization’s financial information (yes, the financial statements) with your staff. Trust me, this data doesn’t just motivate you and (hopefully) your board of directors. Your organization’s financial picture will motivate your team members, too. I promise it works!
Print it. Share it. Discuss it. Teach it. And review it. Do this on a regular basis; monthly at least.
Here’s My Story
Picture this. I’m sitting in my third staff meeting in my new role as Director of Marketing and Communications (responsible for sales too) at one of the top Chambers of Commerce in the state of Florida. Our high-powered CEO sits down and slides the financial statements to each team member.
Hmm, what are we looking at I asked myself? I’m not a dummy… I’m an MBA, and I aced my accounting classes in undergrad and grad school but I’d never had a boss show me the organization’s financial statements. And from what I hear this does not happen often in the nonprofit sector.
I didn’t know it but I was about to be empowered, held accountable, and educated all in one sitting.
Our CEO went through the YTD (year-to-date) budget and income statements line by line. We discussed where money flowed into the organization, where we invested in services, who was responsible for what, and what it takes to keep the lights on.
I left this meeting with my printed statements in hand, went into my office and started making a chart on my whiteboard. I wrote down the line items I was responsible for (sponsorship sales, memberships, renewals, digital ad revenue, etc.) and recorded percentage-wise where we were. And that’s the magic. In an instant, I could see where I was ahead and where I needed to hustle. I updated these numbers after each staff meeting and looked at it every day.
Yes, I know most sales teams have their budget numbers for the year but this approach is different.
Somehow by seeing those big picture numbers in financial statements made it real. Maybe that’s because financial statements show you where your paycheck is coming from and how the organization’s well-being fits together. All I knew is that I had to meet my numbers for the sake of those statements.
How This Promotes Teamwork
As our team continued to review financials together, our bond grew stronger. As I said before the “statements” showed how interwoven our duties and successes really were. Any time a staff member was falling behind we all pitched in to brainstorm how to help. Maybe we needed to talk-up golf tournament sponsorship at our next networking event or cross promote digital advertising. And then there were membership drives - duh, duh, duhhnnn. Kidding, I actually enjoyed them.
The practice of reviewing financial data with the entire staff is not simply a way of assigning line items to the responsible party. It’s a practice that engages the entire team to participate in, and feel accountable for the overall budget together.
Benefits of Sharing Financials with Staff
You can probably already see the many benefits of this oh-so-wonderful nonprofit management practice from my story but there are so many positives that I needed to make a list (plus, I'm a big fan of lists):
Do You Have Hesitations? Well, Don’t!
Are you thinking some of your staff might be too young or inexperienced to understand? Well, then this is a great opportunity to help develop minds and our future leaders’ business acumen.
Is it too much pressure for your department heads? Not if they are already meeting their goals. And, if they are not performing, then this might be the type of accountability, perspective, and motivation they need. We’re not talking about pointing out mistakes or putting failure to meet budget on display for all to see. This is all about positive motivation. Celebrate the wins and troubleshoot the shortfalls as a team.
Do you believe financials are best kept private? Not anymore. Nonprofit leaders find that greater transparency breeds trust and a sense of camaraderie. Here are a few statistics to showcase our point (from our recent blog post, How Nonprofits Build Donor Trust: Be Transparent):
So, Get Going!
I cannot speak highly enough on this practice. Try it and see what happens. Our team at Blue Fox would love to hear the results in comments, or on our Facebook, Twitter, and LinkedIn pages.
And here comes my inner sales person. It’s important that your nonprofit’s financial data is in order before you share it with anyone. So, if you’re seeking support for your back office and accounting functions (bookkeeping, payroll, tax prep, etc.) give us a call at (321) 233-3311 or email Hello@YourBlueFox.com.
We are proud to refer you to ask our clients about their experience with our team. If you would like a contact for a referral, just ask!
If you’re not sure it is the right time to outsource your back office? Here are a few blog articles that might help you make that decision:
Author: Chelsea Clementi, MBA, Director of Marketing & Business Development, Blue Fox
If you’ve been following along with our blogs and posts this spring, you know that I was energized and inspired at two national conferences this year, NTEN's Nonprofit Tech Conference and Cause Camp by Nonprofit Hub. One common thread in the programs of both was the power of storytelling and video.
Now obviously, storytelling is not a new concept, but I was surprised that even now in the age of YouTube it seems that folks are still trying to figure out how best to execute and leverage its power. Then I got to thinking: Could video and storytelling be something we use at Blue Fox?
Those of you who know me well know that I’m passionate about educating and empowering others. But you also know that I dread being in the spotlight. So what’s a girl to do?? Apparently putting my “big girl pants on” is involved! ;) So here we go – we’re launching a YouTube channel (that we hope will reach more than 12 people) to get all the stuff that’s in our pea brains into yours.
Tell me: what do you want to see me ramble about online? What do you think would be useful content for you and your team – nonprofit or for profit – to see? Come on – don’t be shy. Tell us what you think!
If you’re like us, your daily inbox is jam-packed with newsletters and educational opportunities from like-minded social impact leaders. These spectacular humans work around the clock to foster positive change in their communities. Then, somehow, find time to share their story. We tip our hat to them! Here are just a handful of our favorite resources this month:
Thanks for stopping by to explore our picks for social enterprise news this month! If you’re interested in hearing more from us, subscribe to our newsletter today!
[Data and statistics courtesy of QuickBooks Prospective Client Infographic]
Did you know that most small businesses owners spend 10 hours per week balancing their books? That equates to about 25% of a 40-hour work week spent on non-revenue generating or mission-related tasks. We know social impact executives often work longer hours than most but still - 10 hours is probably 9 hours too many don’t you think?
But are you ready to outsource your nonprofit accounting function?
How do you know when the time is right?
Ask yourself these questions:
Most nonprofit leaders were not born to be CFOs. Many social impact executives come from a marketing or fundraising background. The choice to hire an accounting firm can give marketing-minded executives piece of mind. It’s like bringing on the perfect business partner with complementary expertise. A ‘balanced’ partnership (accounting pun intended). ;)
So, what exactly can an outsourced accounting firm do for your organization?
Our team at Blue Fox offers all of those services and more! Blue Fox is an accounting firm specifically for nonprofits and social enterprises. Our team members have broad expertise in the social impact space, with backgrounds as nonprofit leaders, board members and volunteers. The entrepreneurial spirit runs deep on our team. This means we manage your back-office from the same perspective as you would. Not sure about it; just ask our clients and read what they have to say about us.
If you think it may be time to hire an accounting firm, let’s have a chat and see how Blue Fox can help you reach your goals. Call us anytime at (321) 233-3311 or click here to request more information and/or a quote.
Welcome to the Blue Fox Blog! A fairly entertaining source of info and news related to our company, nonprofits, social sector trends, and, of course, accounting. Enjoy!
Back to Basics: How to Set Up Your Nonprofit Chart of Accounts
How "Small" Payroll Mistakes Cause Multi-Year S#!t Storms for Nonprofits
Behind the Scenes, New Client Onboarding Call
When to Hire a Tax Professional - 10 Factors to Consider
40+ Ideas to Light a Fundraising Fire Under Your Nonprofit Board Members
Why Outsource Your Nonprofit Accounting to Blue Fox? Ask One of Our Newest Clients
Client CASE STUDY: One of The Most Financially Sustainable Nonprofit Orgs We Know
The Magical Nonprofit Financial Ratio Matrix
10 Reasons to Outsource Your Nonprofit Accounting
How to Make Your Nonprofit Recession-Proof
How to Engage Your Board of Directors in Financial Conversations
QB Tip of the Month: How to Use Classes for Painless Grant Writing
When to Hire an Accountant for Your Social Impact Org
Are You Paying Too Much for Payroll?
Blue Fox Teams Up With Bloomerang to Develop Nonprofit Resources
Blue Fox Earns Better Business Bureau Accreditation
Blue Fox Launches Protected By Logo
Blue Fox - The Origin Story