Courtesy and cold fusion

One yardstick of wealth is how much you give away. It’s easy to run out of time and money, but there are no hard limits to your supply of courtesy and consideration.

I’ve had several interactions with courteous, engaged service people this week, and they made a huge difference to a difficult week – I still feel glad about them. Being courteous – assuming the best, being polite, giving respect and space to people before you’re forced to concede ground or fight for it – is a wonderful form of generosity. It makes almost everything better, feels great, and almost always creates more energy than it costs.

It’s cold fusion.

Tom Peters on ‘People Stuff’

I’ve made a start on The Excellence Dividend and really like what Tom Peters has to say, and how he says it. Here he is in his inimitable ALL CAPS style:

WHILE I’VE BEEN ON THE EXCELLENCE DIVIDEND  BOOK TOUR–MOSTLY PODCASTS — I’VE BEEN ASKED OVER AND OVER TO EXPLAIN MY “OBSESSION” WITH THE “PEOPLE STUFF.”

I USUALLY ANSWER, SNIPPILY, “WELL WHAT THE HELL ELSE IS THERE?”

ORGANIZATIONS, NO MATTER HOW MUCH TECHNOLOGY THEY USE, ARE NO MORE AND NO LESS THAN ‘PEOPLE SERVING PEOPLE’.

AND AS A LEADER, YOUR JOB IS: SERVE THE PEOPLE WHO SERVE THE PEOPLE.

(ONE LAST THING: THE PEOPLE WE SERVE ARE OUR EMPLOYEES AND OUR CUSTOMERS AND OUR COMMUNITIES.)

Tom PetersExcellence Dividend Fundamentals Slideshow

As powerful as a smile

Real marketing is built into what you do and why you do it. It’s part of your story, something that you do organically when your business is aligned with your mission and values. Kept promises, free returns, obsession with the details, returned emails, clean tables, and attentive staff – all of this is your real marketing.

Real marketing creates a deeper impact, leaves a lasting impression, and is as powerful as a smile.

Bernadette Jiwa – The Fortune Cookie Principle

Why do people come to you for the thing you provide?
What do they get? Why do they want it? How does it make them feel?
What makes them come back?
Do they tell other people about you? What do they say?

What do your actions / words and tone of voice / website / way you dress / your office / commitment to doing things well say about who you are and what you’re doing? Do they say the same thing?
For a non-profit organisation, do you smile at your donors and your clients in the same way? (you should)
Are you an example of these things for your team? How do you articulate them to the team, to new members, to partners?

What if it was free?

What if your the thing you do could be free? If the cost of all your inputs dropped to nothing – what would you charge?

If someone down the street started giving it away – why would people still come to get yours?

The answer is probably, because they want to buy it from you. They like you, the way you do your thing, the story you tell about what you do – and the way these things make them feel.

They feel good about you because you’re: more reliable / cutting edge / traditional / safe / fun / surprising / caring / professional / energetic / calm and collected / place a higher value on X / more educative / a long-term solution / like them.

Better than free

In a world of abundant free – or nearly free – copies, what makes something worth paying for?

In The Inevitable Kevin Kelly suggests eight “generatives”: attributes of goods or services that add value:

  • Immediacy (I can have it now – before the crowd)
  • Personalisation (it’s special to me)
  • Interpretation (how to understand or use the free thing)
  • Authenticity and trust (it’s the real deal, not an imitation. Quality)
  • Accessibility and convenience (so that it’s easier to access the free thing any time)
  • Embodiment (e.g. the luxury of a physical book, or of doing something in person)
  • The feeling and status of paying for it (patronage)
  • Findability and curation (“a work has no value unless it’s seen”)

…these new eight generatives demand an understanding of how abundance breeds a sharing mindset, how generosity is a business model, how vital it has become to cultivate and nurture qualities that can’t be replicated with a click of the mouse.

In short, the money in this networked economy does not follow the path of the copies. Rather it follows the path of attention, and attention has its own circuits.

Kevin Kelly – Better than Free

The acid test

If my potential…

customer / employer / client / donor / partner / supplier

knew what I know about my…

product / last job / service / organisation / attitude / manners

would they still…

buy it / hire me / use it / give / join me / want my business ?

Better still…

Would they be eager to do so?

Hat tip: SG

In their hands

Make something people can use.

Put it in their hands.

See what happens.

If they’re eager to pay – attention, time, money – you’re onto something.

Watch them. Listen to them. Tweak it. Make more of it. See what they think.

If they tell their friends – and if their friends tell their friends – then you’ve got it.

What change do you seek in the world? Who are the people you seek to serve?

You’ve got it when they’ve got it.

You’ll know you’ve got it when you meet someone for the first time, and the thing you made is already in their hands.

Team Performance (1)

I’ve just been listening to Richard Hackman on teams and team performance. His first lens for evaluating team performance is straight forward:

Delivering the goods

Did you get the job done? How well did you do it?

Who is the legitimate receiver, user, reviewer of this performance and what to they think of it? Did you serve the client first?

At a non-profit leader you might have several ‘customers’: the people you serve, donors, the team itself. If you can’t keep everyone happy, where do your priorities lie?

I listened to Andy Kaufman interviewing Richard Hackman on the People and Projects Podcast.

Bootstrapping the non-profit organisation Rule 7 (part 4)

This is the seventh-and-a-quarter post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation.

Rule 7: Charge a lot (but be worth more than you charge)

A last argument for applying this rule in non-profit context is that if your clients pay, your resources go further, and you can serve a lot more people. We covered this principle in Rule 3 (see ‘Eager to pay and scaling the non-profit), but it’s worth repeating here.

I’ve just been listening to an interview with One Acre Fund‘s Andrew Youn on Rob Reid’s After On podcast where Andrew spoke about the importance of a revenue model in their work, where the farmers they serve receive credit, but ultimately pay for the services they receive:

Rob Reid: Some people might say that these folks are extremely poor, why don’t you deliver these services for free? Part of it is that there’s only so much money in your organisation, and that 98.5% payback means that you’ve got a lot more dollars put to work. What percentage of One Acre Fund’s annual budget comes back to it through repayments?

Andrew Youn: Most of One Acre Fund is core program delivering all these services… Within that core program, about 70% of our budget is covered by farmer payments, and 30% from donors.

RR: You’re literally serving three times as more as many people as you could if you were a purely charitable organisation.

AY: It makes us so much more cost effective… we can serve three, four times as many people by charging for our services. I think it also makes us a little more beholden, as an organisation, to the customer that we serve. So we use, for example, repayment as a customer service quality metric. [see Rule 1 for more on this idea]

After On Podcast, Episode 35

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So here’s the final reformulation of Rule 7:

Rule 7 of bootstrapping the non-profit organisation: Find the right price (and be worth more than you charge)

Bootstrapping the non-profit organisation Rule 7 (part 3)

This is the seventh-and-a-third post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation.

Rule 7: Charge a lot (but be worth more than you charge)

How does this rule apply to what a charity charges its clients? Is it ethical to charge your clients a lot?

Shakespeare’s Prospero said it best:

This swift business

I must uneasy make lest too light winning

Make the prize light.

The Tempest, Act 1 Scene 2

I’m not a subscriber to the argument that free things are always un- or underappreciated, but there’s truth in the sorcerer’s words: we value what is dear.

Or perhaps we should say, we value things that cost a lot as long as long as they’re worth more than we paid.

Think about the times you’ve felt frustrated by a cheap purchase that wasn’t worth it. Or the more costly, high-quality item that brought you satisfaction each and every time you used it. Rule 7 follows this logic – just as it’s possible to be cheap and still rip people off, it’s possible to charge a lot and still be generous.

In fact, charging a lot might be what gives you the space to be generous. It’s hard to give people the time and attention they require if you’re cutting corners and pinching pennies. Rule 7 asserts that it’s fine for a charity to charge its clients for its services – even to charge ‘a lot’ – as long as the client makes the most profit from the transaction.

And the fact is, even if the service that you provide to your clients costs them nothing in financial terms, they always pay something – time, attention, the effort of showing up.

When your clients pay a bit more of those things for what you provide, they think more about whether they really want it, and take it a bit more seriously. And just as if you’d charged more money for something, when people have bought in to what you’re doing, there’s a lot more that you can do, so you open up a lot of extra ways to create value for and with them.

As another poet put it,

Where your treasure is, there your heart will be also.

Bootstrapping the non-profit organisation Rule 7 (part 2)

This is the seventh-and-a-half post in a series applying Seth Godin’s rules of bootstrapping (see also here) to building a non-profit organisation.

Rule 7: Charge a lot (but be worth more than you charge)

The point here is that your organisation’s selling point – we’re still looking at things from the perspective of donors and supporters – should never be how cheap you are (your price), but how much value you create for your clients.

It doesn’t matter what your price is, as long as you’re worth it – or Seth would say, worth as long as you’re worth more.

This might be about how many people you serve and how many things you do.

Or it might just as well be about how you do what you do – the values that you bring to the table that make you special. The things that would:

Make peoplemiss youif you were gone.