Closing Session with Bill Millett â Scope View Strategic Advantage

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43. Generational Differences.The issue here is not the rise of social media, and how that isinfluencing the field of philanthropy. Certainly that is an importantmatter, and one that many UWs have responded to very well.Rather, the point is that social scientists generally concur on thefollowing point about the generations that are replacing BabyBoomers in positions of influence in the American workforce: Theyare more independent-minded and have different sets ofphilanthropic priorities, frequently focusing on single issues thatare the most important to them.This generational factor coupled with the two issues discussed immediately below-- workplacedemocratization and mass customization -- have tremendous implications for United Ways.4. Workplace Democratization.United Ways have long offered employers a simple consolidated way of handling the issue of companyand employee philanthropy-- one-stop shopping as it were. The United Way has allowed for minimaldisruption to company operations while insuring that dollars collected have gone to a reputableorganization with solid community leadership.There has, however, been a downside to this in those instances where company officials have used aheavy hand to meet internal and external money targets. While the United Way has had a formal noncoercionpolicy in place for many years, would anyone seriously contend that it has not been violatedwithin many workplaces, or that the United Way stance in such situations could often be accuratelycharacterized as quiet acquiescence?Many in the generations now moving into positions ofauthority were once subjected to that pressure, resented itthen and resent now. They even have a name for it: “CharityShakedown.” And they will not be prone to giving UnitedWays special access within their companies.This will only increase the growth of alternative workplacegivingfunds and federations that utilize payroll deduction forpublic and private sector employees to make charitablecontributions. Around since the late 1960’s, they haveprovided options for workplace givers seeking to supportsomething other than the mainstream list of United Way-affiliated agencies. They will find an increasedreceptivity within many companies, and United Ways need to be ready with answers as to why theinvestments should be made to the UW.There is another important factor to consider. With theyounger generations being more independent than theirparents, companies wanting to recruit the best and brightestof them will be more democratic and less autocratic thanpreviously. This is especially true of knowledge-intensiveand innovation-centered companies-- the predicted centersof employment growth. And this will hold for the way inwhich those companies approach philanthropy.The individuals they want to hire frequently do not want to betold which philanthropies are worthy of their dollars. Theywant to make that assessment on their own.And as younger people tend to do, they are inclined to look for new ways of doing things. The UnitedWay is many things; new is not one of them. Any part of the United Way movement that ignores new andsometimes seemingly radical strategies and tactics of advocacy and marketing does at its own peril. Justbecause certain approaches have worked before does mean they will now. In fact, it may well be anindication that they won’t.©
55. Mass Customization Replacing Mass Markets.Many of us grew up in a time when there were three major television networks, consumers who were atthe mercy of product manufacturers, and commercials that pretty much delivered the same “why to buy”message to everyone.It was an era of mass markets and mass marketing. In the 1960s, 80% of adult Americans could bereached through an ad airing simultaneously on NBC, CBS and ABC. It would be impossible to matchthat penetration in 2013 even if the spot ran on over 100 channels, as television stations now competenot only against dozens of often highly specialized counterparts, but also against thousands of websitesas well as other digital media catering to customers with specific interests.The marketplace has been transformed as the mass market has been replacedby an ever-growing number of micro markets catering to the precise needs andspecial interests of groups or individuals.What has happened to the media is just one example of what is occurring inalmost every functional marketplace. The evolution from mass to micro-marketsis a fundamental societal change. The United States today is a far more diverseand consumer-empowered country than it was as recently as ten years ago.The country has disaggregated into countless market sectors defined not onlyby such traditional measures as geography, age, race, ethnicity and gender, butalso by increasingly nuanced and self-determined product preferences.Burger King was one of the first companies to recognize this trend when it originated its highly successfuland fast-food altering “Have It Your Way” campaign more than thirty years ago. One of the initial slogansfor the Whopper said there were 1,024 ways to order one, a mathematically correct claim that was lateraccurately expanded to 221,184 as ingredients were added. The customer, not the restaurant, was nowin charge. And the restaurant better be prepared to deliver.That customized approach with products tailored to individual customersis an integral part of thousands of successful organizations. You order acomputer and it is assembled with the exact components you want. Youpurchase a new car and you can have it assembled at a plant accordingto your preferences. You choose golf clubs by brand, and then havethem custom made to your specifications through such options as shaftlength and composition, flex and grip size and type.The rapid development of micro-markets, or markets of one, is an accelerating social force, and one thatshows absolutely no signs of abating. That same trend increasingly applies to volunteerism andphilanthropy. More and more people have precise single-focus causes to which they are committed andin which they invest. They want to drive the decision… they want to do it their way. And what is theopposite of their way? The United Way.Therefore… One Person’s Priority is Another Person’s “I Could Care Less.”The combination of workplace democratization and the rise of mass customization lead to oneinescapable conclusion: Relevance is a moving target. Not only does it change over time as socioeconomicconditions change, but it can also vary from one individual to another depending on theinterests of each.Using a singular message to advocate the relevance of the United Way in today’s highly segmentedmarketplaces is an inherently flawed strategy. It is analogous to using a car’s safety features as the onlyelement of a dealer’s pitch to every one of its potential customers.For some nonprofits, instilling a more specific marketing mentality does not come naturally. But for UnitedWays to reach their full potential in today’s philanthropic environment, it must be done. It starts withidentifying those individuals and organizations you want to influence. That’s the easy part, and you’veprobably already done that and have a solid prospect list in hand.©
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Closing Session with Bill Millett â Scope View Strategic Advantage

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Closing Session with Bill Millett â Scope View Strategic Advantage