Nonprofits Post COVID-19

In Jamie Hechinger‘s excellent post: The Climb Ahead! — she writes about the “definable skills that set apart the most impactful nonprofit leaders”. Jamie also cites New York Times columnist David Brooks in which he “explores the common experience of those who have spent the primary half of their lives ascending the “first mountain” — the mountain of material success and professional ambition — only to find themselves unfulfilled.

David notes that “it is often only after the experience of true adversity, be it an acrimonious divorce, struggle with addiction or any other human hardship (a global pandemic must now be included), that we are able to find our “second mountain” — the mountain of service and other-centeredness — and achieve the elusive fulfillment so many of us seek”

And Jamie concurs that: “In our work recruiting and advising senior leaders of the world’s most dynamic social sector organizations, we have witnessed this phenomenon first-hand. Several of the most successful leaders have pivoted to mission-driven organizations following long careers in the private sector”.

IMHO, post-COVID-19 priorities of the nonprofit sector will drastically change. This year’s imminent recession may turn into the greatest depression the world ever knew. So, what are the nonprofits to do when the donations crawl to a halt?

The Coronavirus pandemic changes EVERYTHING, and we now live in a post-pandemic reality. Many nonprofits recognize the need to rapidly re-assess these new circumstances and quickly adapt. Others do not.

My message: in a CRISIS MODE, the nonprofits need to look at CRISIS INNOVATION. What are such unique strategies? My advice: don’t delay! Get help from experienced Operating Advisors/Mentors NOW — before it’s too late!

All innovation challenges are unique. There is no one-size-fits-all solution. So, nonprofits must stop imitating their competitors. After all, imitation works well in karaoke bars — not in business…

Moreover, I am convinced that the experience of going through a major market crash was never as important as it is today. If nonprofit CEOs recovered from the collapse of the financial markets of 2008 — you can say it was a random event. If the rapid recovery also followed the 9/11 & dotcom crash — you can still claim that it’s a coincidence. But if it also included the recovery from the recessions of the 1980s — it’s a PATTERN!

And it’s a perfect time for the agile, mission-driven organizations — to tap into a vast pool of know-how and experience of the private sector. I can’t emphasize enough that to survive & evolve, the nonprofits need help to “stretch” their existing dollars (the bottom line) and to accelerate the growth of future revenues (the top line).

“Business-as-usual” is not an option, anymore. Instead of twisting itself into a pretzel, the entrepreneurial nonprofits must also generate revenues — in addition to receiving donations. And if it was the philanthropic pool that defined your “customers” in the past — it’s time to look at a much larger pool of… NONCUSTOMERS!

Experienced, battle-tested Operating Advisor can help the nonprofits to sharpen their Value Propositions and boost their appeal in times of calamity. Confused? Don’t be. You’re not alone! Even some of the most established industries are going through the same challenges. Take Corporate Venture Capital (CVC) as an example…

For years, I advised open-minded corporation to start using Corporate Venture Capital more intelligently — see: LeanCVC

When the going gets tough, overcoming CVC’s proverbial difficulty to convince its corporate parent to allocate hundreds of millions of dollars for investment purposes is EXTREMELY DIFFICULT! After all, any CVC budgets will significantly affect both the top and the bottom line of a corporate balance sheet. There is no free lunch when innovation budgets are created and approved.

Besides, if CVCs are co-investing with other VCs, corporations must also swallow the 2% Annual Management Fee charged by the GPs, and stomach the 20% Carry — on all the successful exits. Ouch! So, welcome to the brave new world of a LeanCVC™!

Traditionally, CVCs would invest in startups at various growth stages in exchange for a minority position in the company. In contrast, PE firms would often take a majority position in mature companies in traditional industries. However, such practice is changing as PE firms increasingly look-out for more deals and buy out CVC-backed tech companies. Similarly, CVCs are now open to buy more mature startups — if such companies fit their strategic objectives.

So, here comes my BIG REVELATION: instead of spending hundreds of millions of dollars on acquisitions, CVCs can simply focus on “grooming” the startups for PE’s investment! Small to mid-size PEs need a $5MM EBITDA and at least $30MM in Revenues before making their move. With the right strategic fit, CVC can issue a Purchase Order (PO) to a startup — and satisfy PE’s need!

My LeanCVC™ Value Innovation reduces costs and increases value — SIMULTANEOUSLY! In essence: CVCs could acquire more strategically positioned but early-stage companies — with “Other People’s Money” (OPM). PE industry could also significantly increase its Investment Pools and consider many more acquisitions than ever before — by dealing with a larger number of entrepreneurial companies with a REAL revenue in place — and not just the proverbial “Letters of Intent”…

I have little patience toward the nonprofit BODs that are not open-minded and curious. It was Dorothy Parker who said it the best: “Curiosity is the cure for boredom. There is no cure for curiosity”

And besides, mission-driven nonprofits fit very well the famous 4C’s defined by the father of modern management theory — Peter Drucker: Competence, Character, Compassion, and Community.

Yet, it was the same Peter Drucker who also said: “Ideas are cheap and abundant; what is of value is the effective placement of those ideas into situations that develop into action”.

So, instead of just asking for donations, I encourage nonprofits to also offer ground-breaking, turn-key revenue acceleration strategies to their mission-driven corporate partners. And such pragmatic proposals should also include Design, Structure, Finance, and Deployment of Opportunistic Joint Ventures. “Live long and prosper”, nonprofits!

I am in the business of joining Advisory Boards/BODs of the most innovative companies all around the world. And as one of the ultimate BusinessAI™ veterans on the planet w/ over 30-yr hands-on AI expertise — I also bring supreme business savvy to separate the wheat from the chaff & deliver results.

In addition to focusing on organic growth, my ground-breaking RedCarpet™ revenue acceleration strategies include Design, Structure, Finance, and Deployment of Opportunistic Joint Ventures. It is at no cost to the client company, as we leverage “other people’s money” — an ingenious alternative to costly acquisitions…

My turnkey approach helps to raise 10X more capital at 1/10 of the cost and it is based on structured finance expertise. We financed over $1B of Renewable Energy infrastructure projects in the past and now offer a similar methodology to financing Healthcare, Fintech, Construction & Manufacturing products, and services. And if our unique value innovation does not generate the desired results — we do not get paid…

What I learned over the years is that it is not just technology innovation, but also the exponential increase in the value offered to clients at a much lower cost — that makes all the difference. Yet I see too many companies focused on pushing their product out the door — while losing ~70% of additional revenue streams. My proprietary “The Push, The Pull and The AI Bull™” process, generates huge secondary and tertiary revenue streams. And such a strategy is scalable and sustainable.

As an Operating Advisor/Jack of All Trades, I work with VC/CVC/PE funds and the companies they support — at a granular as well as strategic levels. It allows me to tackle rapid innovation issues; disruptive marketing strategies; operational efficiency improvements; brand enhancement; and securing growth capital.

In some cases, I step-in as an interim CEO to significantly accelerate scale-up and expansion. The emphasis is on EBITDA Growth, Revenue Acceleration, Margin Enhancement & Opening New Channels in diverse markets. Unique pattern recognition abilities allow me to see what is still missing & how to maximize business offerings & profitability.

SELECT ACCOMPLISHMENTS: My project finance expertise covered solar, wind, WTE, energy efficiency, etc. It included: equity, non-recourse debt, balance sheet financing, and tax equity. I also took a tiny startup public, building a $135MM enterprise & received grants from NRC & DND. Academic R&D collaborations included: UW, UofG, UofT, and MCC Consortium in Texas.