Saying No

Introduction

In the nonprofit sector, innovative fundraising initiatives are crucial to increasing donor engagement and enhancing flexibility. GNP leadership aimed to create a custom gift card system to attract more donors and boost donations. However, faced with limited team skills, tight timelines, budget constraints, and uncertainties about the program's success, it was essential to evaluate the feasibility of this initiative. As the Product and Engineering Manager, I led this evaluation to ensure informed decision-making.

Situation

GNP leadership had prioritized the creation of a custom gift card system that would allow users to purchase gift cards for making donations. The initiative aimed to increase donation flexibility and attract more donors. However, the organization faced several challenges, including:

• Limited team skills

• Tight timelines

• Budget constraints

• Uncertainty about the potential success of the program

Task

My task was to evaluate the feasibility of the custom gift card system and advise the leadership team on whether to proceed with the plan. This involved a thorough analysis of the organization's capabilities, expected costs and time investment, and potential return on investment compared to similar initiatives in other organizations like Global Giving.

Action

Feasibility Study:

1. Comprehensive Feasibility Study:

   • Assessed the organization’s capacity to develop and maintain a custom gift card system, including evaluating the technical skills of the team, available resources, and current workload.

   • Analyzed the cost implications of developing the system, including initial development, ongoing maintenance, and potential marketing expenses.

Benchmarking and Research:

1. Benchmarking and Research:

   • Researched the performance of gift card programs in peer organizations, gathering data on their success rates, user adoption, and overall impact on donations.

   • Interviewed stakeholders from these organizations to understand the challenges they faced and the reasons behind their programs' underperformance.

Risk Assessment:

1. Risk Assessment:

   • Identified key risks associated with the project, such as the possibility of low user adoption, technical implementation challenges, and potential diversion of resources from other critical projects.

   • Evaluated the impact of these risks on the organization’s overall mission and strategic goals.

Presentation to Leadership:

1. Presentation to Leadership:

   • Compiled the findings into a detailed report highlighting the feasibility study results, benchmarking insights, and risk assessment.

   • Presented the report to the leadership team, providing clear evidence that the custom gift card system was not a viable option due to the identified constraints and risks.

   • Suggested alternative strategies to increase donations, such as optimizing the existing donation platform, launching targeted fundraising campaigns, and leveraging partnerships with other organizations.

Result

Based on the evidence presented, the leadership team decided to pause the custom gift card system. This decision had several positive outcomes:

• Resource Optimization: The organization avoided a potentially costly and time-consuming project that could have strained its limited resources.

• Focus on Core Activities: The team was able to focus on optimizing the existing donation platform and other high-impact fundraising activities, leading to more effective use of their skills and time.

• Risk Mitigation: The organization mitigated the risk of investing in a program with a high likelihood of underperformance, as evidenced by peer organizations’ experiences.

• Strategic Alignment: The decision aligned the organization’s efforts with its strategic goals, ensuring that resources were directed towards initiatives with a higher probability of success and greater alignment with their mission.

Key Takeaways

1. Comprehensive Feasibility Studies: Conducting thorough feasibility studies is crucial before embarking on new initiatives. It helps identify potential risks and ensures that resources are allocated wisely.

2. Benchmarking: Comparing your organization’s plans with those of similar entities can provide valuable insights and help avoid common pitfalls.

3. Risk Assessment: Identifying and evaluating risks can save your organization from investing in potentially unsuccessful projects.

4. Strategic Alignment: Ensuring that all initiatives align with the organization's strategic goals maximizes the chances of success and effective resource utilization.

By sharing this case study, I hope to provide insights and strategies that other product managers can apply in their own decision-making processes. Remember, thorough evaluation and strategic alignment are key to successful product management.