MISSION OR MONEY?MISSION OR MONEY?
Natalie Chen, chair of the Fallsville Economic Council, was preparing for the next board meeting. The Council had recently broadened its mission from training and placing disadvantaged workers (primarily minorities) to facilitating their movement into management positions. Natalie was excited about the potential community benefit of the Council’s new mission and the opportunity to set a national example.
The Council’s executive director, Frank Baxter, had been a major factor in achieving program results and corporate support. Over the past few months, however, Natalie not only began to doubt Frank’s commitment and support of the new mission, but also his understanding. Natalie was, in fact, convinced that Frank was only giving lip service to the new mission. Moreover, Frank had continued to raise funds for the new initiative in much the same way as he had for the training and placement programs, which were now self-sustaining. His approach assured the Council’s financial security but could conflict with the Council’s new mission if corporations felt their new donations bought them positive images while maintaining the status quo.
Natalie felt strongly that the way to achieving the mission was, first and foremost, to live the mission. After all, how could you work for Pepsi, but drink Coke? Secondly, the board, because of its mission, also had a responsibility to be a catalyst for change. Now that she was chair, she felt an enormous sense of responsibility for the Council’s future. Just as the anti-smoking groups had taken on the tobacco companies for the sake of Americans’ health, Natalie believed that the Council must be a strong advocate of change.
The Council had been established six years ago to increase the job skills of disadvantaged citizens, largely racial minorities, and to place trained candidates in productive positions. Given its successful track record in training, the Council sought new challenges. After diversity training and raising its own awareness through a series of carefully planned sessions, the Council had examined the changing demographics of the city. Their research highlighted obvious examples of economic disparity between the majority and the minority populations. As a result, the board adopted a new mission that focused on promoting positive corporate environments that embraced diversity, and facilitating the upward mobility of minorities (primarily African Americans and Hispanics) into middle and upper management positions.
The board recognized diversity as a key element to the community’s continuing economic success. Natalie felt she had the board’s commitment and support to move forward on the new mission. As the Council’s first Asian American and first female chair, she felt a personal commitment to empowering the minority population.
Natalie sighed, and said aloud, “I have to develop a workable strategy for this situation by the time the board meets. How can I help the board understand that it is compromising its mission in order not to rock the boat, and for the sake of financial security?”
Natalie again reviewed the three specific issues that were particularly troublesome to herissues that she could not reconcile in her own mind.
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1. Walk ing th e talk : d ive rsity as an in-h o use issue .
In her close review of the Council’s internal records, Natalie noted the unusually high staff turnover of African American and Hispanic employees. The numbers looked quite stark: out of a staff of nine, four minorities had left in the last three years. Even the training director, Marcus Kennedy, an African American manager with an impressive corporate history, had come to Natalie expressing his tremendous frustration and his intention to leave the Council (after a scant nine months) if changes were not forthcoming. Natalie shuddered as she remembered how much the executive search for Marcus had cost the Council.
When Marcus called last week, Natalie detected his dissatisfaction. She suggested coffee at the Grille after the Rotary Club meeting. Marcus was not known for mincing his words.
“Natalie, did it ever occur to you that the Council needs to get its own house in order before it can clean anybody else’s house?”
Natalie leaned forward. “Meaning. . . ?”
Marcus sighed. “Look, I am only the third African-American staff member at the Council in its entire existence. The other two only lasted six months, and both of them were clerical employees. Maria, my executive assistant, has given notice. Maria is the only Hispanic on staff. Don’t you think the Council has internal diversity issues that it needs to address?”
Natalie remembered when she was recruited for the board. The Council took great pride in always having a racially diverse board. Lately, the definition of diversity had expanded to include gender and socio-economic levels. But she had to admit that diversity on the staff was lacking. “What do you think is the real problem, Marcus?”
“There seems to be no genuine commitment to develop minorities and utilize them to their full potential,” Marcus replied. “I have two degrees from highly-regarded educational institutions and a successful corporate career in two Fortune 500 companies that includes extensive diversity training and strategic planning experience. Yet I have been here almost a year, toiling in the trenches of facilitating workshops.
“I want to set up leadership development programs for minorities in mid-management. And, I want to develop a strategic marketing plan for the Council’s future in Fallsville. There are some critical demographic changes that must be addressed to position the Council as a leader in diversity and economic development, if it is to be true to its mission.
“But Frankbless his ‘good ol’ boy heartwill not let me near the corporate executives or the board. I know how to make this new mission happen. For example, we need to develop mentoring and career pathing programs for our corporate clients to place minority candidates on a faster track. I need the Council to take the moat out of its own eye.”
Natalie nodded. “I wondered why we always seemed to have a search underway for “qualified” minority candidates.”
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Marcus shook his head. “I moved here for my wife, not for me. I took early retirement at Jessup Corporation just to get away from messes like this. If the Council means what it says, then I will work hard to make it happen. But if you are not serious, then say so, and I’ll resign and get on with my life.”
“Is Maria feeling similar frustrations?” Natalie asked.
“Maria is a very sharp woman. She read between the lines of an annual review that says she is a capable office administrator with good management and organizational skills, but lacks the managerial potential to move into training.”
Natalie asked herself if Marcus’s comments were sour grapes or paranoia. No, clearly Marcus’s concern was appropriate. As board members, should they not be sensitive to both the appearance and the reality of the staff’s diversity? If not, how could the Council ever embrace its mission?
2. Fund ing th e status q uo o r a culture ch ange ?
Frank Baxter raised over $10 million in private funds to run the job readiness program and had solicited pledges from the business community for an additional $2.5 million to fund the new economic thrust. But Frank seemed to be raising money from old contacts in the same old ways. By not clearly defining the organization’s new mission to corporate donors, Frank allowed them to believe that the Council was only in the training and placement business. Would corporations continue to give if they were challenged to change their culture? Something had to be done about his approach, but it would be difficult. The board viewed him as an effective administrator and fundraiser, and he was well liked.
At every board meeting, members were satisfied with Frank’s reports announcing the amount of money raised, and the number of companies signing up for diversity training. Board members slapped Frank on the back and beamed. Natalie could hear Harry Hastings once again saying, “No need to say more, Frank. You’re doing a great job for us!” While financial commitments and program participation were important, had the board overlooked the issue of changing corporate culture?
Natalie remembered the joint call with Frank at the Garrett Corporation. “The good news, Roger,” she said, “is that the Fallsville Economic Council has the staff, the tools, and the support services to help you move your company from a vision of pluralistic management to a reality of inclusive management, one which will take you comfortably and profitably into the next century.”
Roger Wright, the CEO, looked at her, and then turned to Frank. “We don’t need more tools, just support in finding qualified minority candidates.”
Frank said, “Yes, the Council is very aware of the difficulty in making progress and encouraging change without the right material.”
Natalie said, “ It could be difficult for some corporations, but the Garrett organization has a few minorities at mid-management levels. We could assist you in strengthening your career
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assessment process and support systems. A successful partnership between the Council and your company to develop more minority managers would make your structure all the stronger. It would also be a model for the entire community.”
Frank then said, “Still, we understand the need for the Garrett Corporation to flatten its pyramid, rather than add more management types.
Roger jumped on that quickly. “Exactly, Frank. You know what I mean.” Roger pulled out the pledge form. “What are you looking for?”
“How about stepping up a bit this time, Roger? We would like a three-year commitment from you: $100,000 per year. This would make you the lead in this new effort and bring some special benefits that I can outline for you later.” At Roger’s nod, Frank stood. Roger had simply buzzed his assistant with the news, and asked Natalie and Frank to inform the senior vice- president of human resources of the Council’s diversity training schedule for their senior managers.
Natalie did not believe the Garrett call was unique. She was concerned about an ethical issue: Could an organization deliberately subvert its own mission? Clearly, challenging the corporation to change was a much harder sale. Natalie knew corporations would be happy merely to give, but no pain would mean no ultimate economic gain for Fallsville. It was impossible to achieve a socially noble mission without any social cost. The board had more than a fiscal responsibility; it had a social responsibility as well.
3. Mino rity co m m unity sup p o rt.
Frank seemed unwilling or unable to reach out to the growing African American and Hispanic business communities in raising funds for the new programs. Minority businesses were small, with limited financial resources. But they had to be approached to solicit their philosophical buy-in as well as their contributions. Frank would be hard pressed to manage these solicitations if he could not articulate the new mission, much less believe in it. As a publicly-supported organization, Natalie felt the Council had an obligation to reach out.
Natalie had seen James Hawkins, the president of the African American-owned insurance company, at a recent cocktail party. The president had commented that he heard about the Council’s new focus and was pleased about the direction. Hawkins mentioned that when he saw Frank at a Chamber-sponsored program two months ago, he had commended Frank on the diversity effort. He also had invited Frank for a visit to discuss the Council’s program, indicating that he was interested in participating. Frank had not called him. “I know,” Hawkins had said to Natalie, “that all your funds are coming from the white community.”
Natalie wanted the board to understand the implications of such negative goodwill. Could the Council be a publicly-supported organization and not seek genuine, equal partnerships with all of its constituencies?
When Natalie approached Frank yesterday about her concerns, he seemed genuinely surprised, even incredulous. Despite her careful explanation of the issues, Frank quickly became sarcastic.
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“Let me get this straight,” he said, using his fingers to tick off each point. “I keep the office running smoothly, with the majority of the staff still on board after six years at substandard pay, but I am not a good manager. I need to spend more solicitation time with non- contributors and simply ask for their blessings. And instead of forming strong relationships with those who do give, I should be more confrontational and point out all their organizational faults. In short, you don’t like how I do my job.”
Since she had not made headway with a one-on-one conversation with Frank, how could Natalie expect the largely white male board to understand? With his affable personality and his stellar fundraising record, most board members only wanted to clone Frank for all of their other community organizations. Still, raising money while losing a sense of the organization’s mission gave Natalie some serious problems. Should an organization stay with its mission and risk alienating potential contributors? What was survival worth?
