View
2.397
Download
0
Category
Tags:
Preview:
DESCRIPTION
Strategies for competitive advantage in charities and non-profits
Citation preview
nfpSynergySummer Insights
Wednesday 16th June 201020 Cavendish Square
How does your organisation stay competitive?
Joe Saxton
How is competition different between for-profits and non-profits?
Structure of for-profit and non-profit organisations
Provision of goods and services
Income greater than costs
Profit
For-profit
Non-profit
Income greater than costs
ProfitProvision of services
• Influence of external world and rapid change
•Focused strategy•Responsive and adaptable to change•Excellent people•Excellent funding
The inside world The outside world
The specific competitive arena
•Your culture, strategy and competences
What factors influence competition and your organisation ability to succeed
How do charities say they stay competitive?
Strategies for maintaining a competitive advantage Organisations earning less than £500k
“Which of the three following strategies do you believe are the most important in maintaining a competitive advantage for your organisation?”
Base: 38 peopleSource: How does your organisation try to get a competitive advantage? nfpSynergy Feb 2010
5%
7%
7%
7%
7%
13%
18%
36%
36%
36%
36%
42%
42%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Other
Investing in a highly skilled workforce
Strong branding and corporate postioning
Large database of loyal supporters
Emotive issue on which to fundraise
High level of public awareness
Having a unique purpose and activities
Strong organisational beliefs and values
Ensuring a breadth of income sources
Constant innovation and development
All of these strategies are important
Ability to demonstrate success and achievement
Keeping close to the needs of stakeholders
8Base: 56 peopleSource: How does your organisation try to get a competitive advantage? nfpSynergy Feb 2010
5%
3%
10%
12%
16%
16%
19%
21%
28%
30%
37%
41%57%
0% 20% 40% 60%
Other
Emotive issue on which to fundraise
High level of public awareness
Strong branding and corporate postioning
All of these strategies are important
Large database of loyal supporters
Constant innovation and development
Investing in a highly skilled workforce
Having a unique purpose and activities
Ensuring a breadth of income sources
Keeping close to the needs of stakeholders
Strong organisational beliefs and values
Ability to demonstrate success and achievement
Strategies for maintaining a competitive advantage Organisations earning between £500k and £5 million
“Which of the three following strategies do you believe are the most important in maintaining a competitive advantage for your organisation?”
9Base: 58 peopleSource: How does your organisation try to get a competitive advantage? nfpSynergy Feb 2010
6%
5%
12%
17%
20%
24%
24%
24%
25%
25%
27%
39%
46%
0% 20% 40%
Other
Large database of loyal supporters
Emotive issue on which to fundraise
Ensuring a breadth of income sources
Constant innovation and development
High level of public awareness
Keeping close to the needs of stakeholders
Strong organisational beliefs and values
All of these strategies are important
Investing in a highly skilled workforce
Having a unique purpose and activities
Strong branding and corporate postioning
Ability to demonstrate success and achievement
“Which of the three following strategies do you believe are the most important in maintaining a competitive advantage for your organisation?”
Strategies for maintaining a competitive advantage Organisations £5 million +
10
How does your organisation try to get a competitive advantage?Strategies for maintaining a competitive advantage under all categories
“Which of the three following strategies do you believe are the most important in maintaining a competitive advantage for your organisation?”
Base: 170 peopleSource: How does your organisation try to get a competitive advantage? nfpSynergy Feb 2010
0% 20% 40% 60%
Other
Large database of loyal supporters
Emotive issue on which to fundraise
High level of public awareness
Strong branding and corporate positioning
All of these strategies are important
Investing in a highly skilled workforce
Ensuring a breadth of income sources
Having a unique purpose and activities
Strong organisational beliefs and values
Keeping close the needs of stakeholders
Constant innovation and development
Ability to demonstrate success and achievement
Less than £500k£500k - £5 million
Over £5 million
The research from 1994
STRATEGY Resp Rate (% resp)
£££< 500K (% resp)
£500K- £5000K (% resp)
£££ > £5000K (% resp)
High level of public awareness
37 37 31 42
Ability to demonstrate success
31 35 37 23
Unique purpose 30 41 29 19
All of the strategies 28 21 29 36
Strong branding 24 23 25 21
How can organisations measure their competitive position?
• Media mentions• Awareness• Search engine results• Voluntary income growth
Number of media mentions per month Nov 2009 – March 2010
Marie Curie
Red Cross
Royal British Legion
British Heart Foundation
Amnesty International
0
1000
2000
3000
4000
5000Dogs trustMarie Curie Red CrossBattersea Dogs HomeRoyal British LegionBritish Heart FoundationBreakthrough Breast CancerAmnesty InternationalSt John AmbulanceWoodland TrustVoluntary Service Overseas
Number of media mentions per month Nov 2009 – March 2010
Dogs trust
Marie Curie
Battersea Dogs Home
Royal British Legion
British Heart Foundation
Breakthrough Breast Cancer
Amnesty International
St J ohn Ambulance
Voluntary Service Overseas
0
250
500
750
1000
Nov '09 Dec'09 Jan '10 Feb '10 Mar '10
Dog
s tr
ust
Dog
s tr
ust
Briti
sh R
ed C
ross
Briti
sh R
ed C
ross
Red
Cro
ss
Red
Cro
ss
Mar
ie C
urie
Can
cer
Care
Mar
ie C
urie
Can
cer
Care
Mar
ie C
urie
Mar
ie C
urie
Batter
sea
Dog
s H
ome
Batter
sea
Dog
s H
ome
Popp
y D
ay
Popp
y D
ay
Briti
sh H
eart
Fou
ndat
ion
Briti
sh H
eart
Fou
ndat
ion
Brea
kthr
ough
Bre
ast
Canc
er
Brea
kthr
ough
Bre
ast
Canc
er
Amne
sty
Inte
rnat
iona
l
Amne
sty
Inte
rnat
iona
l
St J
ohn
Ambu
lanc
e St J
ohn
Ambu
lanc
e
Woo
dlan
d Tr
ust
Woo
dlan
d Tr
ust
VSO
VSO
Volu
ntar
y Se
rvic
e O
vers
eas
Volu
ntar
y Se
rvic
e O
vers
eas
10000
100000
1000000
10000000
100000000
1000000000
Google Search Bing Search
Google and Bing searchNumber of hits
Spontaneous awareness of certain charities
Amnesty
British Heart Foundation
British Legion/Poppy Appeal
Red Cross/The British Red Cross
Marie Curie
0%
5%
10%
15%
20%
Jul-98
Mar-99
Nov-99
Jul-00
Mar-01
Nov-01
Jul-02
Mar-03
Nov-03
Jul-04
Mar-05
Nov-05
Jul-06
Mar-07
Nov-07
Jul-08
Mar-09
Amnesty British Heart Foundation British Legion/Poppy Appeal Red Cross/The British Red Cross Marie Curie VS0/Voluntary Service Overseas Dog's Trust Woodland Trust Battersea Dogs Home Breakthrough Breast Cancer
Oxfam
Red Cross
CAFOD
Help the Aged
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Oxfam
Christian Aid
ActionAid
Save the children
Red Cross
World Vision
Tearfund
CAFOD
Help the Aged
Growth patterns of development charities since 1980
Vol In
com
e
£ ,
00
0s
Year
Measuring your competitive position
• Media mentions, awareness, search engine results and growth patterns are only suggestions
• Our forthcoming fundraising benchmark – released July 6 will provide another way to compare yourself with other charities
• All our monitors help organisations understand how their compare with their peers
• But each organisation needs to decide for itself what measures make senseo Number of applicants per jobo Staff turnover rateo Success rate in tenderso Direct marketing response rateso And many more
But the outside world is changing too
Budget deficitPublic Sector Net Borrowing as a percentage of GDP
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%19
48-4
919
50-5
119
52-5
319
54-5
519
56-5
719
58-5
919
60-6
119
62-6
319
64-6
519
66-6
719
68-6
919
70-7
119
72-7
319
74-7
519
76-7
719
78-7
919
80-8
119
82-8
319
84-8
519
86-8
719
88-8
919
90-9
119
92-9
319
94-9
519
96-9
719
98-9
920
00-0
120
02-0
320
04-0
520
06-0
720
08-0
920
10-1
120
12-1
3
Base: UKSource: HM Treasury/nVision
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
1945 1950 1951 1955 1959 1964 1966 1970 1974(Feb)
1974(Oct)
1979 1983 1987 1992 1997 2001 2005
Declining Voter TurnoutAs percentage of the UK electorate
Base: UK electorateSource: British Electoral Facts: 1832-2006, Parliamentary Research Services, House of Commons Library data
Type of household in EnglandTrend and forecast, 2006-based projection
Base: UK 2005 Source: Social Trends, National Statistics/nVision
0
2,000
4,000
6,000
8,000
10,000
12,000
married couple cohabitingcouple
lone parent other multi-person
one person
1979 1989 1999 2009 2019 2029
Age structure of the UK populationNumber of people and proportion of total UK population of each age, 2009 projection
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
0-14 15-29 30-44 45-59 60-74 75+
0%
5%
10%
15%
20%
25%
Millions 2009 Millions 2019 Millions 2029% population 2009 % population 2019 % population 2029
Base: UKSource: National Statistics/nVision
-600
-400
-200
0
200
400
600
80019
91
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Inflow Outflow Net migration
International migrationNumber of people moving into and out from the UK, in thousands
Base: UKSource: International Migration, National Statistics/nVision
Household disposable income growthTotal increase from 1980 in real terms – January 2010 nVision forecast
Base: UKSource: National Statistics/nVision
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%19
8119
8219
8319
8419
8519
8619
8719
8819
8919
9019
9119
9219
9319
9419
9519
9619
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
0920
1020
1120
1220
1320
1420
15
Proportion who have internet access By age, gender and social grade
“Personally, do you have internet access…At home; At work; At school/college, none of these?”
Base: 1,200 respondents aged 15+, GBSource: nVision
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%To
tal
Mal
e
Fem
ale
15-2
4
25-3
4
35-4
4
45-5
4
55-6
4
65+ AB C1 C2 DE
Spring 01 Spring 03 Spring 06 Spring 09
0%
10%
20%
30%
40%
50%
60%
Tota
l
Mal
e
Fem
ale
15-3
4
35-5
4
55+
ABC1
C2D
E
Autumn 2006 Spring 2008 Spring 2009
Participation in social networking websitesAs percentage of total population, by gender, age and social grade
“Which of the following, if any, have you done on the internet in the last 6 months…? Created / updated a personal profile on a social networking site (e.g. facebook / myspace / bebo)”
Base: 1,200 respondents aged 15+, GBSource: nVision Research
Volume of SMS messages on UK cellular networks among the four main operatorsIn millions
Base: UKSource: OFCOM/nVision
0
5,000
10,000
15,000
20,000
25,00019
99 Q
1Q
2Q
3Q
420
00 Q
1Q
2Q
3Q
420
01 Q
1Q
2Q
3Q
420
02 Q
1Q
2Q
3Q
420
03 Q
1Q
2Q
3Q
420
04 Q
1Q
2Q
3Q
420
05 Q
1Q
2Q
3Q
420
06 Q
1Q
2Q
3Q
420
07 Q
1Q
2Q
3Q
420
08 Q
1Q
2Q
3Q
420
09 Q
1Q
2
Orange
T-Mobile**
O2*
Vodafone
But what does the changing external world have to do with competition?
• Other organisations may become more adept at dealing with the new world
• Existing stakeholders may become more distant or more engaged as a result of the changing world
• New stakeholder groups may become important
• Older/younger/rich/poorer may change their outlook in a changing world – so the old ways of communications will no longer work as well
Awareness and communication strategies
What does a generic strategy need to do?
• Provide a framework for all of the marketing and communications
• Act as an architect’s plan, not a builder’s toolkit
• Allow the entire organisation to understand how competitive advantage will be achieved
• Not specifically about service provision
Four strategies
• NICHE
• EXTERNALLY/FUNDING-DRIVEN
• DIFFERENTIATION
• AWARENESS
33
Four strategies
• Niche• Externally/Funding-Driven• Differentiation• Awareness
Niches
• Differentiation based on the actual work of the charity
• Work can also be done by larger charities
• Single mindedness is the key
• Use PR and fundraising to own the niche
• Geographically distinct - but the same work as others• • High local awareness - the local charity
• e.g. Donkey Sanctuary, Woodland Trust, Cats Protection League, County Naturalists Trusts
35
Four strategies
• Niche• Externally/Funding-Driven• Differentiation• Awareness
Externally-driven strategy
• Carried along by external sources of revenue
• Legacies, grants, investments make fundraisers marginalised
• React to the news, not make it
• Pervasive feeling that ‘money grows on trees’
• Trustees and Directors focused elsewhere
• In marketing terms, there is little to recommend it
• Most charities are moving (slowly) towards other strategies
Four strategies
• Niche• Externally/Funding-Driven• Differentiation• Awareness
Differentiation through audience
• A clear audience based on lifestyle or demographics or attitude
• The audience needs to be coherent and stable
• All activities centred around relationship with audience
• e.g. Christian Aid, Jewish Care, CAFOD
Differentiation through product
• Product means recognisable communications relationship
• Membership, child sponsorship, etc.
• Product used as basis for other marketing e.g. legacies
• e.g. National Trust, Action Aid
Differentiation through beliefs
• Strong beliefs can build a distinctive organisation
• Beliefs about working method, about symptoms and causes, about new ideas
• e.g. Greenpeace - non-violent direct action
Pure product strategy
Pure audience strategy
Spectrum of differentiation strategies
Mix of product and audience strategy
ActionAid
National Trust
RSPB
Christian Aid
CAFOD
42
Four strategies
• Niche• Externally/Funding-Driven• Differentiation• Awareness
Awareness strategy
• All communications directly or directly increase awareness
• Awareness is not the same as advertising
• Regular monitoring of awareness
• Have a clear set of beliefs and values
• Make all your activities work together
• Structure is important
Awareness strategy
• PR must be very strong
• Be prepared to be visible
• Create activities to get in the news
• You should have a spokesperson
• Comment on everything
• Be prepared to be outspoken
Externally- driven strategy
Awareness strategy
Differentiation strategy
Niche strategy
The development sequence of competitive strategies
KEY TO ARROWS
UNCOMMON DEVELOPMENT
USUAL DEVELOPMENT
COMMON DEVELOPMENT
Strategies in context
AWARENESS• Oxfam or Save the Children
DIFFERENTIATION• CAFOD - audience• Action Aid - product• Practical Action - beliefs
EXTERNALLY-DRIVEN• World Emergency Relief
NICHE• WaterAid
The challenge of competition
Our task is to envisage the future and prepare for it, to make our organisations ready for the changes and the competitive times ahead. Our task is to create strategies that make our own organisations excel, and to communicate those strategies across the organisation from trustee to volunteer.
Our task is to prepare a vision of a better world and share it with our supporters. We are not charity workers, but fulfillers of people’s dreams about who they are and what they believe in.
2-6 Tenter GroundSpitalfields
London E1 7NH
(w) www.nfpsynergy.net (t) 020 7426 8888
(e) insight@nfpsynergy.net
Registered office: 2-6 Tenter Ground Spitalfields London E1 7NH Registered in England No. 04387900
VAT Registration 839 8186 72
Recommended