Kathy Macdonald

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COMMUNITY PARTNERING
Kathy Macdonald
Workbook TAB 7
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Todays trip

• Part 1 The Typical Path Followed
• Part 2 Mapping a New Route to Community
  Relations
• Why its worth the trip
• How to get there
• Part 3 Caution Signs and Preparation

p. ii
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What I hope you take away

• An appreciation for what you are doing
• A sense of how you could do more perhaps with
  less
• The difference between philanthropy and Community
  Partnering
• One good idea that will work for you

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Kathy Macdonald
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Community Relations ...
Philanthropy ...

• Community Partnering

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You are ...

• Share the following
• Name
• Dealership
• Location
• One example of community relations from YOUR
  store. Stick to one sentence
• We lease bikes to the County Sheriffs
  Department.
• We teach a Drivers Education class at the local
  high school.

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Think about the examples shared ...

• What do you hope to get in return?

• Goodwill
• Manage persistent negative/positive impressions
• Expand your reach to new customers
• Find new business opportunities
• Assure collaboration/support when you need it

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Lets start ...

• Open the Envelope everyone gets ONE bag of MMs
  
• Turn to the Bingo Card or page 2

• Open your MM bag and sort your MMs
• RED Cash/Money
• GREEN Your Time
• YELLOW Employee Time
• BLUE Involvement of H.O.G. Chapter
• BROWN Use of your Facility
• ORANGE Product, Merchandise or Service

• Decide where you are going to place your
  resources
• You have 4 minutes

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Placing your resources ...
Assist at a Local Hispanic Festival
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The reality

• Not everyone has the same resources
• There are lots of worthy causes
• You can run out of resources before you run out
  of requests
• Not everyone has the same choices
• You need some criteria for judging
• There is more than one form of return on
  investment

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What are some of the potential ROIs?
Assist at a Local Hispanic Festival
p. 3
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Return on Investment (ROI)
Loven it!
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How would you rate the ROI?
Dealership 1 Six months ago you purchased the
dealership. Sales have not been keeping pace
with the national trends. The facility is 25
years old and looks it. You know you will need
to rebuild within the next 2 years. You know you
need to drive up floor traffic, gain local
exposure as a new management team, and improve
community relations.
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How would you rate the ROI?
Low Moderate High Highway Litter Pickup
? ? ? Attend City Council
Meeting ? ? ? Write Column
for Paper ? ? ? Fourth of
July Parade ? ? ? Assist at
Hispanic Festival ? ?
? MDA Promotion ? ?
? Donation to Local Parks ? ?
? Pee-Wee Baseball League ? ?
?
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How would you rate the ROI?
Dealership 1 Six months ago you purchased the
dealership. Sales have not been keeping pace
with the national trends. The facility is 25
years old and looks it. You know you will need
to rebuild within the next 2 years. You know you
need to drive up floor traffic, gain local
exposure as a new management team, and improve
community relations.
p. 4
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How would you rate the ROI?
Dealership 2 Sales have been good. You have
nothing to complain about other than a sense that
you keep selling to the same sort of customers
you were selling to 10 years ago. Youve another
decade on the mortgage you took out to refurbish
the dealership 2 years ago, and you want to make
sure business stays strong. You know you need to
reach into the growing minority community, sell
to a younger buyer and keep a polished image
within a community that seems increasingly
concerned with environmental issues.
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The ride to Freebie Paradise

• Begins with the best of intensions

• Picks up momentum more more requests

• Creates new expectations that are hard to meet

• Creates a potential for avoidance or resentment

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Freebie Victims

• The Scrooge Response
• Sporadic giving, usually tied to an event (e.g.,
  holidays) and with a sense of obligation or
  fear of repudiation (when I have to)

• The Ohh Dear (AKA Oh S---) Reaction
• Infrequent a sense forced or pressured giving,
  done at the last minute and delegated if possible

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Freebie Victims

• The Ad Hoc (AKA Loose Cannon) Reply/Reaction
• Sporadic, usually spontaneous, not always
  organized actions (He/Shes been watching PBS!)

• The Whatever Syndrome (AKA I give up)
• Zen-like actions dictated or performed at the
  request of others (e.g., H.O.G. Chapter,
  employees)

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Freebie Victims

• The Shot Gun Reply/Response
• Lots of actions, spread out like pellets across
  the community Were bound to hit something!

How can these help or hurt a community relations
effort?
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Harvard Business Review December
2002 Conclusion to a study on philanthropy
Most companies feel compelled to give to
charity. Few have figured out how to do it
well.
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Alternatives to Freebie Paradise
Need Desire to do Something
Freebie Paradise Plus Side ?Highly
Responsive ?Can Feel Really Good Negative
Side ?One-Way Giving ?No Clear Pattern ?No
Measure of Impact
Values Beliefs of Owner(s) Personal
Tragedy Strong Community Need

Stage 1 Philanthropy ?Charitable
Giving ?Volunteer Work ?Donations ?Episodic or
Frequent
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Making a Bigger Difference
One way and not much connection
Low Impact
Moderate Impact
High Impact
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Making a Bigger Difference
Involves more people/time and Seeks a community
connection
Low Impact
Moderate Impact
High Impact
p. 9
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Making a Bigger Difference
Business link that is measured and collaborative
Low Impact
Moderate Impact
High Impact
p. 9
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Coffee Break
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Welcome Back!
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What one word do the packages have in common?
Real Cheddar Cheese
Real Fruit Juice
Real
100 Real Cheese
Real Chocolate!
Made with Real Fruit
Real Peanut Butter
Real Butter Cream
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Making an impact
Low Impact
Moderate Impact
High Impact
Real
Fake
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The Business Case for Community RelationsWhy it
is worth the trip the business case

• PART ONE ALIGNMENT WITH THE BRAND
• at the Corporate
• at the Local level
• PART TWO PAYOFF
• in tangible
• in intangible benefits

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Alignment with the Brand at the Corporate Level

• Six Key Stakeholders those we care about
• Customers and dealers
• Society
• Employees
• Investors
• Government
• Suppliers

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Alignment with the Brand at the Corporate Level
The Harley-Davidson Mission
how we do business
We fulfill dreams through the experience of
motorcycling, by providing to motorcyclists and
the general public an expanding line of
motorcycles and branded products and services in
selected market segments.
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Alignment with the Brand at the Local Level

• SAME Six Key Stakeholders
• Customers those who use your service or buy your
  products
• Society your community
• Employees your employees their families
• Investors your local bank or financial
  institution
• Government your local judicial, legislative
  enforcement agencies
• Suppliers those who provide you with services
  products

The strength of your community relations impacts
EVERY one of these.
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Alignment with the Brand at the Local Level

• Customer Expectations
• 45 years old
• 70 are married
• Household income of 78,000 (median) 91,000
  (mean)
• 70 have attended or graduated college
• More than half are professional or own their own
  business
• Where do community relations fit?

• 92 say they are much less or somewhat less
  likely
• to buy from a company that is not socially
  responsible.
• 88 say they are much more or somewhat more
  likely
• to buy from a socially responsible company.

p. 11
2002 Model Year Demographics
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Alignment with the Brand at the Local Level
Compliance

• Meeting Community Expectations
• Zoning and building codes
• Filing payroll information paying taxes
• Compliance with local ordinances (signage,
  lighting, storage, traffic, noise, etc.)
• Maintaining business standards (exterior
  maintenance, appearance, etc.)
• Cultural fit
• Where do community relations fit?

Compliance today is a given. Compliance is
NOT Community Relations
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PAYOFF The Tangible Benefits

• These can be measured

• Lower turnover morale 3 times higher in firms
  heavily involved in their communities
• Higher employee morale 90 of Ben Jerrys
  employees
• Enhanced recruiting attractive to potential
  employees in a tight labor market (top 3 reasons)
• Steadier revenue stream steady sales when
  national sales down (94 97 studies)
• Stronger floor traffic reliable source of new
  potential customers (88 more likely to buy)
• Predictable responsiveness to business needs
  responsiveness to business needs time saved

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PAYOFF The Intangible Benefits

• These are more often felt than measured

• Builds culture a sense of who we are
• Reinforces employee commitment
• Expands networks into the community building
  goodwill and equity
• Helps build brand identity
• Uncovers new business opportunities sources of
  revenue
• Provides opportunities for organizational
  learning

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Lessons from the Real World
It doesnt have to cost more The transition
was hardest for me A sense of relief for the
whole store The transition was easiest for
those on the front line It takes time
initially to set up I would never go back
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Where would you place these efforts?
Case 1 Fred, the Service Manager, is in early.
This afternoon 2 more kids from the high school
start in the shop. This will be the fifth year
of the program. He can hardly believe that the
first 2 kids are both married and one of them
is now working for him full time.
Stage 1? Stage 2? Stage 3?
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Where would you place these efforts?
Case 2 Its the pre-Christmas crazies. The
merchandising manager feels like she has given
away as much as she has sold and here is another
request for a church lottery. Does it never
end?
Stage 1? Stage 2? Stage 3?
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Where would you place these efforts?
Case 3 Its Tuesday and Jan is on her way to
the Chamber of Commerce meeting. She has the
brochures on the Rider Safety classes that a
couple of folks asked about at last months
meeting. She was surprised to see several of the
members attending a general open house at the
dealership last week.
Stage 1? Stage 2? Stage 3?
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Where would you place these efforts?
Case 4 It was one of the worst biking accidents
in recent memory. It was out on the interstate
and had traffic tied up for hours. Sid from the
local radio station called to let you know and to
warn you just in case the local TV stations came
by for comment. You had already heard from the
Sheriffs Department. They were good enough to
let you know the riders were from out of state
and not local.
Stage 1? Stage 2? Stage 3?
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How to Get There Begin with knowing where you are

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Mapping a New Route
1. How to get out of Freebie Paradise

• Announce that you are changing directions to
  employees and to all those you have T-Shirted
  in the past year
• Teach everyone how to politely say no

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Six Polite Ways to say No
1. Use a form
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Sample Form
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Six Polite Ways to say No
1. Use a form
2. Offer an alternative e.g., revenue from our
food concession, all of our bottle deposits
others?
3. Place on a considerations list We have
made our commitments for 2003, would like to be
placed on our consideration list for next year?

• Prepare a statement. Thank you for the
  opportunity Thank you again for inviting us to
  be a part of your effort.

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Sample Letter
Your Logo Your Dealership Street Address City,
State, Zip Date Dear Thank you for the
opportunity to participate in your fundraiser.
We believe in working with local organizations to
strengthen the social, educational, and cultural
fabric of our community. We recognize there are
many causes worth of our support, but we have
chosen to focus our resources in order to have a
greater impact. Our primary focus is
Unfortunately, we will not be able to
participate due to Thank you again for inviting
us to be part of your effort. Sincerely,
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Six Polite Ways to say No
1. Use a form
2. Offer an alternative e.g., revenue from our
food concession, all of our bottle deposits
others?
3. Place on a considerations list We have
made our commitments for 2003, would like to be
placed on our consideration list for next year?

• Prepare a statement. Thank you for the
  opportunity Thank you again for inviting us to
  be a part of your effort.

5. Have a community relations statement / policy
in place.
6. Establish a community board.
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Mapping a New Route
2. How to Succeed at Stage 1

• Decide what is important to YOU, to your
  employees, and to your customers
• List what youve done
• Determine your passions
• Decide what makes sense for your business

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Mapping a New Route
2. How to Succeed at Stage 1

• Decide what is important to YOU, to your
  employees, and to your customers
• List what youve done
• Determine your passions
• Decide what makes sense for your business
• Set a target and limitations.
• Start by looking at the past
• Set targets for the YEAR break down by month

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Mapping a New Route
2. How to Succeed at Stage 1

• Review the targets/limits adjust
• Keep a scrap book recognition is good!
• Thank those who recognize your efforts

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Mapping a New Route
2. How to Succeed at Stage 1

• Review the targets/limits adjust
• Keep a scrap book post thank you notes on
  website or use as screen savers recognition is
  good!
• Thank those who recognize your efforts
• Continue to say no
• Periodically review/discuss how to say no with
  staff
• Dont assume new or old employees are doing it

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Mapping a New Route
3. Moving to Stage 2

• Write a community relations statement.
• Short simple (see notebook) or steal one

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Mapping a New Route
3. Moving to Stage 2

• Write a community relations statement.
• Short simple (see notebook) or steal one
• Develop a basic community relations system.
• Time requirements for requests
• Format of request
• How requests will be reviewed
• How requests will be acknowledged

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Mapping a New Route
3. Moving to Stage 2

• Seek out two-way partners.
• Who needs the help?
• Who will care as much as you do?
• Who will be thankful for help?
• Who will do their fair share of the planning
  work?
• NOTE You might get it wrong its OK to
  experiment.

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New Hampshire Businesses for Social Responsibility
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Mapping a New Route
4. How to Succeed at Stage 2

• Decide who your partners are
• Should be linked to your community relations
  statement
• The connection to your business should pass the
  Dah test

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Sauk PrairieHarley-DavidsonSauk
CityWisconsin
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Mapping a New Route
4. How to Succeed at Stage 2

• Decide who your partners are
• Should be linked to your community relations
  statement
• The connection to your business should pass the
  Dah test
• Stage 2 reaches beyond charity to a new
  community-wide awareness mindset
• Involves time beyond philanthropy
• Need to expand targets/limits to include time
• Need to develop community relations calendar

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Community-wide awareness mindset
Exterior Dealership Sound
Exterior Lighting
Landscaping
Local Tech/Co-op Programs
r
Shadow Programs
Seeds for Highways
Rider Noise
Buy everything we can locally down to donuts
Parking
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Mapping a New Route
4. How to Succeed at Stage 2

• Leave T-Shirts behind
• Keep successful Stage 1 behaviors in place
• Find ways to simplify
  philanthropic gifts

V.I.B. Card Very Important Biker
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Mapping a New Route
5. Moving to Stage 3

• Evaluate your efforts in terms of your business
  needs
• What are the key needs of the business?
• Assess current efforts against these needs
• Find stronger measurements

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• 2004 Model Year Dealer Ad Planner
• Objective Broaden your customer base
• Targets
• General Public
• Dreamers
• Women
• Teens Gen Y
• Gen X
• Ethnic / Minority Groups

B
C
C
D
B-
E
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Mapping a New Route
5. Moving to Stage 3

• Establish long-tem planning with partners
• In stage 3 you could be doing less
• In stage 3 you could be involved in fewer things
• In stage 3 you are likely to see the greatest
  impact

p. 19
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Mapping a New Route
6. How to Succeed at Stage 3

• Decide who are your long-term partners with
  business impact

p. 20
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Motor CityHarley-DavidsonFarmington
HillsMichigan
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SeacoastHarley-DavidsonNorth HamptonNew
Hampshire
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Mapping a New Route
6. How to Succeed at Stage 3

• Decide who are your long-term partners with
  business impact
• DreamWorks SKG training low-income students
• Apple Computers school computer programs
• AOL noncommercial school sites
• Pfizer trachoma drug program in third world
• Have clear measurement of results

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• Measurement Guidelines

• Give NOTHING away without paperwork
• If you dont have a form make one up

• 3. REVIEW the forms within 30 days
• Did it build goodwill or awareness?
• Did it impact traffic?
• Did it impact sales? Etc.

4. Decide within 60 days if you should do it again
5. This responsibility may be better handled by
someone other than the owner
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Mapping a New Route
6. How to Succeed at Stage 3

• Decide who are your long-term partners with
  business impact
• Have clear measurement of results
• Remember this stage is about shared
  collaboration, skills, knowledge and competencies
  and impacting the business

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Maximizing Value
Pure Philanthropy
Social Benefit
Pure Business
Economic Benefit
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Guidelines for investing
1. The rule of difference avoid herds
2. The rule of a few less can be more
3. The rule of balance you / employees /
customers time / money / resources / etc.
4. The rule of passion follow your heart

• 5. The rule of repetition start slow, do it
  again

6. The rule of timing pace yourself

• 7. The rule of commitment / preparation youre
  known by your last effort

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Part 3 Caution Signs and Preparation

• Recognizing the Caution Signs
• When to Stop and Reassess

• No one say thanks
• Lack of participation
• Increased community resistance
• When the nature of the partnership shifts
• No measurable outcomes for you or the community

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Avoiding the Pitfalls

• from those who have learned the hard way.

1. Trying to do it alone
2. Not keeping score
3. Proceeding if it doesnt feel right
4. Always saying yes
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Three Reasons to Move to a Higher Stage
1. Stop the waste of resources
2. Position yourself for the business
challenges that lie ahead e.g., noise
3. Reach critical new buying segments
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What are the challenges ahead?
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Finding Help and Learning More
p. 24
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What I hope you take away

• An appreciation for what you are doing
• A sense of how you could do more perhaps with
  less
• The difference between philanthropy and Community
  Partnering
• One good idea that will work for you

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One final thing
PLEASE complete the evaluation form. The
Course Code for this session is 7535
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Thank You! The Macdonald Group www.macdgroup.com