Tales of Unrealistic Expectations: When CEOs Assign New KPIs Without Support

Like most sectors, the not-for-profit world is undergoing change.

The government has altered the way it funds many charitable activities, including aged care and disability services. Meanwhile, the surge in donations during the COVID pandemic has faded in response to economic shifts and changing donor preferences towards social justice and environmental causes.

Competition for funding has naturally driven a more corporate approach to income generation (aka sales targets). Within this context, I've seen a recurring pattern in how not-for-profit CEOs attempt to drive change—by transforming service delivery teams into profit centres.

In these cases, the team leader is now responsible for more than service delivery—they're also on the hook for generating revenue.

The Problem: Unrealistic Expectations Without Support

The first issue I've observed is that team managers receive new KPIs and significant job changes without consultation about how best to implement them. There's often an assumption that the manager wants the expanded role—which, in multiple instances, wasn't true.

The next challenge is expecting the team to instantly develop new sales and marketing skills. Logically, they can't excel at tasks they weren't hired for. Yet, I've repeatedly witnessed service delivery managers suddenly expected to generate leads (marketing) and close deals or attract donations (sales), without any relevant experience.

In one case, a training delivery manager was tasked with selling the training as well as delivering it—with targets doubling overnight. They had nominal support from the marketing team, but that team had competing priorities and didn't report directly to them. Predictably, several training sessions were cancelled because marketing campaigns weren't completed in time.

This situation is the ultimate demotivator—holding people accountable without giving them the autonomy or resources to succeed.

A Simple Approach to Avoid These Pitfalls

1. Engage the Service Delivery Team in the Decision
   Actively involve the team in setting goals about becoming a profit centre, or agree to hire a new manager with the right skills.
   

2. Invest in the Manager's Development
   If managers are expected to adopt new responsibilities, provide clear plans and adequate funding for essential training (e.g., sales, marketing or business development).
   

3. Provide Resources and Autonomy
   Allocate budget for external activities that exceed the team's current expertise, such as graphic design and advertising, and grant them the autonomy to get the job done.
   

Agency and autonomy are powerful motivators. A small investment in these areas can yield disproportionately positive results.

Andrew Walker
Consulting to for-purpose CEOs to deliver more impact with existing teams and systems - by freeing humans up from admin.
https://www.linkedin.com/in/andrew-walker-the-impatient-futurist/

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