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United Way Finds Success through Relationship Building

By any measure, the Minneapolis-St. Paul area is among the most charitable in the nation. Yet, by 2002, donations to the Greater Twin Cities United Way had declined for the tenth consecutive year.

Drastic steps needed to be taken.

The problem wasn't that the United Way was losing community support or that the community's charitable donations were declining. Rather, more non-profits were competing for the financial support of the same pool of major donors and organizations, explained Tim Deuitch, vice president of donor relations for the United Way.

"Ten years ago, charitable giving was transactional. Donors wanted an annual visit and no more. Today, major donors want to make sure their charitable contributions are invested wisely. They want information about how the donation will be used, how it fits with their personal values and priorities and the results they can expect. They are much more intimately involved in the process," said Deuitch.

The Greater Twin Cities United Way is one of the largest in the United States. In 2005, it was responsible for a budget of millions of dollars in donations from corporate, employee, leadership and planned giving campaigns used to fund community service agencies. All agencies focus on one of three core areas: Nurturing children and families, meeting basic human needs and supporting health and independence. Deuitch's staff includes over 100 permanent and temporary campaign consultants, plus thousands of workplace volunteers.

Seeking Inspiration

Faced with the prospect of changing the sales process for the organization, Deuitch turned to an obvious source for inspiration - the business world, specifically Strategic Enhancement Group. For several years, Deuitch had been discussing United Way's challenges with Bob Parks, Managing Partner for Strategic Enhancements. Parks strongly believed that Counselor Salesperson training would offer the perfect answer to the issues confronting the United Way.

"The Counselor Salesperson process focuses on building relationships and identifying the buyer's personal values and needs. It was exactly what the United Way campaign consultants needed to increase annual giving and, even more importantly, create strong relationships and customer loyalty that would stand up against the pressures of a more competitive marketplace," explained Parks.

Deuitch acknowledges that initially he "didn't believe that a sales process could apply to charitable contributions. After all, we're selling intangibles, not a specific product. We're selling social responsibility, a brighter future, human dignity, respect, independence and self-reliance, stronger communities," said Deuitch.

"Bob showed us that building relationships is the key to success, whether to selling a product or selling a vision. The Counselor process applies to any situation," he said. "Strategic Enhancement has been a great asset. Bob is definitely more partner than vendor. He's taken on our mission as his own and that commitment shows."

A Dramatic Departure

"The Counselor Salesperson approach was a dramatic departure from our traditional approach," said Deuitch. "In the past we went in, made our case, asked for financial support and got it. There was no in-depth understanding of the donor's point of view because there was no need."

Under the old system, the United Way conducted an annual six-week campaign that ended with a one-time request for financial support. Adopting the Counselor Salesperson process meant completely changing the group's mindset to focus on building long-term relationships and extensive discovery about the donors.

"It took a while to exorcise our old habits. Our staff was used to ending every meeting with a financial request. It took a lot of discipline to focus on learning more about the donors and their personal values," he noted.

Strategic Enhancement introduced the Counselor Salesperson process to a small group of managers in August 2003 and to remaining staff several months later. Parks then shifted his focus to identifying reinforcement and recognition opportunities and working with individual consultants to fine-tune their skills.

As part of the training, the team reengineered the donor relations group to support Counselor Salesperson principles. This included establishing "affinity groups" and assigning team members to build relationships with key leaders and emerging leaders.

Building Bridges

Deuitch said that the transition hasn't always been easy. Not everyone was comfortable with the new process and, initially, staff turnover was high.

Bill Marcella, a United Way senior donor consultant, acknowledges having some reservations at first. "I could see how the Counselor approach would boost conventional sales but wasn't sure how it would translate in a non-profit environment. I was wrong."

"The discovery process makes so much sense. The relationships I've developed since I started using Counselor Salesperson are stronger and the foundation is deeper."

Marcella offers several examples that support his belief. In one situation, Marcella met with a local business executive and, through discovery, learned that the executive's wife had a background in public finance and was passionate about the need for affordable housing. Marcella offered to arrange for the executive's wife to tour some of United Way's local housing initiatives and she eventually joined the board that made funding decisions. The executive has increased his gift substantially every year for the past three years and, as important, is a strong supporter of United Way programs.

In another instance, Marcella used information learned during discovery to engage the support of a newly-relocated executive and his wife. In this case, the executive's wife had an advanced degree in education and was interested programs for at-risk youth. Marcella arranged several agency tours that eventually led to a board appointment. As a result, the family made a substantial contribution and, as important, the community as a whole has a chance to benefit from her expertise.

"Both situations stand out," said Marcella. "In fact, one of the executives still brings it up whenever we meet. A lot of people and organizations are pulling at these donors. If we can keep them engaged in United Way's activities by showing how our vision supports their personal interests, we'll go a long way toward building loyalty. That's at the heart of the Counselor sales approach."

A Common Foundation

While the transition was challenging, the results have been worth the challenges, Deuitch said. Since individual donor visits began two years ago, gifts have increased five percent, compared with a loss of one percent where no discovery visits occurred. Three years ago, campaign consultants typically spent the majority of their time in the office, doing paperwork, administrative tasks and responding to telephone requests. Today, consultants spend the majority of their workday visiting donors.

And, said Deuitch, the group shares a common language that allows them to address issues more efficiently. "Everyone understands 'discovery.' I can ask about 'Ben Duffys' and everyone knows what I mean. We're all working from the same foundation."

The Counselor Salesperson discipline has helped managers identify critical skills and training gaps and is reflected in the group's hiring process. Today, managers focus on relationship skills rather than administrative and analytical skills when hiring potential consultants. In fact, many of the questions asked in the interview relate to the core competencies required by the Counselor Salesperson process.

"Bob was right. Counselor Salesperson was a perfect fit. It's all about relationships and building trust and so is the United Way," said Deuitch.

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