“It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.” Warren Buffett
There is a bridge in Melbourne that’s notorious. The gap between the road and the railway bridge is low, meaning that big trucks don’t fit underneath. That hasn’t stopped 140 vehicles, including a passenger bus, hitting the bridge and getting stuck. The Montague Street bridge is still known as a ‘truck eater’, despite local government installing warning signs, overhead gantries and speed restrictions.
As humans we’re all prone to mistakes, and each one teaches us a lesson. I’ve learned not to remove my contact lenses whilst drunk (30 mins of clawing at my eyeballs before remembering that I hadn’t worn my lenses that night!). Sometimes we learn more from other people’s mistakes (apart from truck drivers in Melbourne, who think they’re invincible). Partnership executives can improve their chances of success by learning from the failures that have held back other organisations.
Here are the most common mistakes.
- Failure to execute. Non-profits are keen to diversify income and think that corporate partnerships are a viable option. They develop a strategy, pay for some expert advice, build the foundations, and then do nothing. Sometimes it’s a case of losing momentum, when a key champion leaves or is redeployed. More often it’s because corporate partnerships are not a fit within the organisational culture. The corporate sector looks strange, scary and unfamiliar if you’re used to government grants. You may like the idea of more money, but there is little confidence, experience or understanding of how to deal with corporates. In this case, you need to consider if you’ve got a real appetite for corporate partnerships and if so, bring in someone with the right skills and experience.
- Stopping at the yes. We all love a win, and getting to a yes with a corporate partner is a milestone to be celebrated. But it’s when the real work begins. There needs to be consistent relationship management to nurture the partnership, guide it down the right path and ensure that the corporate feels thanked and appreciated. Banking the cheque and ignoring them is unlikely to get you a renewal next year.
- Too much program speak. Partnerships need a mixture of head and heart. There is a temptation to overwhelm the corporate with technical information, program speak or jargon. You can show how the partnership is making a real impact but mix up the data with emotional content and storytelling. Otherwise, you just look like a bunch of patronising smart asses, talking down to your partner. You’re trying to inspire them, not teach them how little they know.
- Trying to build a program from workplace giving. It looks like an extension of regular giving, so many non-profits think about starting a partnerships program from WPG. It’s like declaring your goal to rule the world and starting by taking over Wagga Wagga. Workplace or payroll giving is a useful tool in a suite of partnership activities, but not a realistic place to grow strategic relationships. Too many small gifts, with no direct access to donors and an annoying amount of admin to keep it going make it an amuse bouche, not a whole meal.
- Internal disconnection. You’ll need colleagues from across the organisation to help with winning and nurturing partners. If they’re not briefed properly they can sabotage opportunities. Like the CEO who spent the gala event thanking a local business donor rather than the main corporate partner. Or the program person who told a billion dollar corporate prospect that the non-profit didn’t really need the money, they could do it by themselves. Make the connections with your colleagues and make sure they’re briefed to support you, not destroy opportunities.
- Being an over eager speed date. You’ve got a glossy pitch deck, a video, a brochure and partnership tiers. You spend 99% of the meeting talking at the prospect and asking for money. And you wonder why you don’t get the call back. That’s because you didn’t ask a single question about what was important to them. If you don’t ask, you can’t show how a partnerships with you helps with those priorities. Don’t be a terrible speed date; be curious and spend more time listening than talking.
- Leading with price, not solutions. You may think that your brand is worth $100k. You may have crafted tiered pricing options. But you’re just giving your corporate prospect an easy way to say no. Never lead with pricing. If you uncover their pain points and ambitions and what value means to the corporate, you will uncover an opportunity that goes beyond price. Hard truth- they’re not interested in your brand or logo, it’s all about them.
- Not every frog is a handsome prince. Some are just warty pond dwellers who will suck your time and energy dry. Be realistic about the size of the opportunity and how much effort to invest. Start-ups are especially notorious, because they need your brand and goodwill to build their businesses. Shake off the approaches that will be low ROI and a drain on your resources.
- Internal competition. Fighting with other departments for the same corporate is an exercise in self-destruction. Your social enterprise arm, events team or fee for service department may do great work, but corporates are tired of hearing different stories from the same non-profit. It undermines your organisational credibility and professionalism. Federated orgs, I’m looking at you. Build a coalition for major partners and stop competing against yourselves.
- Allowing internal blockers to survive. There’s always someone in every organisation who starts their sentences with ‘the problem with that is…’ The real problem is when the Negative Nancy is allowed a veto or becomes a block for partnership opportunities. They are often a long serving staff member or have a critical role in delivery. It’s up to leadership to get them out of your way and make them understand that being consulted doesn’t mean a right of veto over partnership decisions.
You can be like the truck drivers on the Montague Street bridge and think that you’ll just wing it and see. Or you can look at the wreckage on the road and choose another approach. There’s no shame in trying something new, but there’s no profit in choosing to repeat someone else’s mistakes.