By Sarah McCarthy and Emily Joldersma, Ivey Business School
Put simply, a Prospect Management (PM) system is a system for tracking the relationship between a potential donor and the fundraising organization. A PM system has two essential functions: to help fundraisers raise money, and to assist the organization in determining the financial pipeline and the viability of targets.
We’ve probably all heard a horror story or two about a PM system that fails. Perhaps you are living that horror now. Here are some tips on establishing a successful Prospect Management system:
- Think about the big picture
Before you develop a system, think about your goals. What are you trying to accomplish? What is your pie in the sky system? Don’t let your database guide you. First, brainstorm what you want to achieve and then figure out how your database and reporting will facilitate your needs. Often, people make the mistake of developing a system piecemeal and therefore it is never a true system but rather a group of functional or dysfunctional parts.
- Develop the system as a team
Don’t develop the PM system in a vacuum. Everyone on your team needs to believe in the system, as it is intended to make life easier for each of those members. As a researcher, you can lead the development of the system, but you can’t do it alone. There is nothing more important than having the support of your leadership. But second to the leadership, the development officers have to buy-in to the system. When you ask for input from all areas of your team – fundraisers, stewardship officers, and administrative assistants – your system becomes stronger by taking these varying perspectives into account.
- Use the system
Using the system you develop probably seems intuitive. Unfortunately, many times after hours, days, and years of work, your system lies dormant. In order for the system to work, management has to be committed to a data-driven approach to philanthropy. The organization has to believe that the system is an essential tool in meeting your fundraising goals. The PM system must be a benefit and not a hindrance. If the system is not used, the data will go stale and reports will become meaningless. Ideally, if you have developed the system as a team, the entire team has a stake in its success.
- Document the System
It is important to document your system well so that staff understands both the goals of the system and how to enter information into the database to achieve these goals. The documentation should answer the questions: why are we doing this, and how are we doing this? It is helpful to include a list and samples of PM reports so staff understands how the data being entered will be used to help facilitate the fundraising process and develop forecasts. Clear guidance and documentation also ensures consistency in data entry, which in turn supports trust in the data and reports.
- Train people on the system
Use your documentation to develop a training program. When you launch the system be sure to train current staff on new procedures. When a new staff member is brought onboard, meet with him/her to explain the system and train on procedures.
- Tweak the system
Sometimes the system you develop and launch does not work as planned. Don’t be wedded to the original system. Once your plan is launched, there will be inevitable tweaks to be made. Roll with the punches and make changes as needed. Be open and flexible. Don’t forget to update your documentation to reflect changes in system and re-train as needed. You will be building upon your PM system for many years to come. Remember it is always a work in progress.
- Keep it simple.
Above all, keep your system simple. You want people to easily understand what you are trying to accomplish and you want the data entry to be a straightforward as possible.
The Ivey Business School has developed a Prospect Management system including guidelines and procedures. If you would like additional information on our system, feel free to contact us at smccarthy@ivey.ca or ejoldersma@ivey.ca.