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"At the Edge of Chaos": Managing corporate/voluntary
sector relationships
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Charlie Coffey
Executive Vice President
Government & Community Affairs RBC Financial Group
Rotman Conference on Business
and Society
"Managing the Chaotic Interface"
Joseph L. Rotman School of Management
University of Toronto
Toronto, Ontario
Friday, March 7, 2003
Thank you Brad and Francesca. And special
thanks to: Aaron Rashba for inviting me to participate today,
Alison Kemper for an insightful paper on the Chaotic
Interface and Ravi Sreedharan, not to mention the volunteer
conference organizers. I'm especially pleased to join the
likes of David Beatty, Susan Pigott and Bill Young on the
panel. And my message to Dean Roger Martin and all of you
is: this event speaks volumes about the Rotman School of
Management. So let's begin…
"Everything interesting happens at the edge of chaos",
says Canadian writer Jane Jacobs. "The idea that you
can arrive at a state where things are finished, where no
further change is possible or necessary - that's a state
of death, and the only thing that can result from it is
decay." After all, chaos is just another word for confusion
- for disarray. As such, in discussing current/future private
and voluntary sector interaction, I'll draw on the Jane
Jacobs premise from time to time, address the prevailing
environment - along with the importance of building and
strengthening sector relationships (including the public
sector), refer to the Chaotic Interface model outlined
by Alison and use one of our RBC tools - the 2002-2003 Corporate
Responsibility Report - to illustrate the "then and
now" proposition in the model. And finally, based on
some added value advice from Annette Dukszta of RBC Investments
and good friend of Rotman (who has joined us this morning),
I'll focus on strategic philanthropy and partnerships as
win/win scenarios.
A few years ago corporations were dealing with 3Rs: restructuring,
re-engineering and redirection. Particular skills and tools
were needed to respond to various change impacts - "to
help us create rather than react." That was then. Now,
we're operating at a hugely accelerated pace, where additional
skills and tools are needed to deal with another 3Rs: new
realities, realignment and relationships. We may also be
moving from change management strategies to chaos management
strategies! Someone once said: "Change is inevitable
- except from a vending machine." Perhaps chaos is
inevitable too in certain circumstances. Listen to some
recent chaotic headlines:
- "Charity portfolios hit by double whammy. Organizations
are regrouping as increased turbulence and declining donations
take their toll" (Kate MacNamara - January 2, 2003
- Financial Post).
- According to National Revenue Minister Elinor Caplan,
"We have identified predatory fundraisers as a top
priority." The Minister said the Toronto Star's charity
series Give and Take last fall raised many key
issues. The series revealed that more than 12,000 Canadian
charities - almost one in six - spend more money on fundraising
and administration than they do on charitable work"
(March 2, 2003 - Toronto
- "This is as volatile a year as I can recall in
Canadian politics, with three federal leadership contests,
the choice of a new prime minister ahead, as many as six
provincial elections, a big change-of-pace federal budget
and a near critical mass of issues chilling Canada-U.S.
relations." (Douglas Fisher - March 5, 2003, Ottawa
Sun).
Obviously, there's more to headlines than
meets the eye - this is part of the chaos. Some charities
have been hit hard - others have maintained or prospered.
Many smart-branded organizations (just ask our United Way
friends here), operating with the right leadership/people,
well planned/executed campaigns, new initiatives, sponsorships,
foundation-driven donations etc., are reaping rewards and
rising contributions - attracting corporate donors. Turbulent
markets and political volatility are often, not always by
any means, a scapegoat for something else. More times than
not, positive interaction between the private/voluntary
and public sectors is a reflection of the relationship,
more so than the environment. It's usually a matter of managing
the chaos - a juggling act!
I see two significant trends changing the relationship between
the corporate and voluntary sectors. The first trend is
that corporations around the world are increasingly conscious
of the benefit and indeed, the necessity of being, and being
seen as, good corporate citizens. This trend is growing
at a steady pace… The second trend is newer and growing
much more rapidly…corporations are more strategically
and actively engaged - contributing resources and knowledge
as well as dollars in order to help build a healthier society
- they're more focused on building win/win partnerships.
How do these trends impact the building
of volunteer sector relationships and the future of corporate
philanthropy? Whatever happens in the economy, the external
political/social environment and industry, will obviously
impact the private, public and voluntary sectors - it will
impact strategies, decisions and action plans; however,
it's important to remember that solid partnerships offer
more flexibility and collaboration in both good and uncertain
times.
Whether we talk about trends or the future,
I'm convinced you'll see more and more strategic private
sector support, where corporate partners will come to expect
a new kind of relationship with voluntary sector counterparts.
Partners will get to know what makes each other tick; partners
will ask for advice/share knowledge; corporate partners
will look beyond their chequebook to community investment;
and all partners will think more long-term. It's already
happening - we're managing the chaos and inventing more
as we go along. As management guru Peter Drucker says, "The
only way to predict the future is to invent it."
I'm confident that the resources and expertise
of the private sector will continue to converge with the
voluntary sector, including resurgence in government support
(federal, provincial and municipal), which is manifesting
itself. For several years, a tremendous amount of effort
has been spent re-establishing the importance of the voluntary
sector to Canadian quality of life. The federal government's
Voluntary Sector Accord - the Call for a Strategic Investment
Approach, the Voluntary Sector Initiative (VSI) and the
Prime Minister's announcement last October re the appointment
of Minister Sheila Copps as leader of the government's efforts
to strengthen its relationship with this sector, indicate
another trend of sorts. Alison mentioned the critical issue
of child care in her remarks…it's clear that the federal
government (via last month's Budget) made a solid financial
commitment to early childhood education and care and that
Minister Jane Stewart will work closely with each province
(in managing the chaos) during the months ahead. We may
be more inclined to associate child care policy and initiatives
with the public/voluntary sectors - let me remind you that
the private sector has a significant stake in early years
development and child care.
Alison also referenced The Cult of
Efficiency in her presentation…like Janice Gross
Stein, I'm convinced efficiency isn't enough - that new
standards of accountability should also be part of ongoing
dialogue and a call to action. Our discussion has less to
do with any domination by the "cult of efficiency"
and more to do with values and choices that governments,
as well as private/voluntary sectors and Canadians must
make, within the context of scare resources and competing
priorities (major sources at the edge of chaos). I'm sure
Ellen Roseman recalls Janice's forum last year. Speaking
of values, choices and accountability…
In 1999, RBC launched a publication called
Community Report. In 2003, it's been re-named the
Corporate Responsibility Report. (I brought copies
with me.*) And the difference is important. Four years ago
(then), we highlighted caring stories about: RBC people
who give back to the community, support for aboriginal peoples,
youth and education, people with disabilities, as well as
investments in health care, the arts and community economic
development. These stories are still there.
However, four years later (now), corporate responsibility
is more encompassing; it includes good governance, operating
with ethical business practices, creating and maintaining
employment, providing access to products/services for special
needs clients, guarding the environment and protecting clients
with privacy and problem resolution. Our thinking and doing
has evolved.
In 1999, our CEO's message in the Report
was titled Beyond the Bottom Line…and in 2003,
it's Building a Knowledge Society. Again, the difference
is important. Nurturing knowledgeable employees, clients,
business/government/voluntary sector partners, as well as
community infrastructures that consist of bright and innovative
people, is in our interest - the national interest. In terms
of building knowledge, I would enjoy hearing the views of
Marketa Evans (Munk Centre for International Studies), Raymond
Dart (Trent University), Pat Bradshaw (York University),
Sandra Nagy (The Learning Partnership) and many others,
both today and post conference. Our thinking and doing has
evolved.
When we invest in the training and development
of our own employees - that's building knowledge. When our
employees serve on voluntary sector boards, providing business
and financial acumen, and helping these groups devise better
ways to achieve their goals - that's building knowledge.
When corporations support organizations (the voluntary sector)
- from St. Christopher's House and Daily Bread Food Bank,
to Kids.Now, Niagara Women's Enterprise Centre and Imagine,
that's also building knowledge. As I glance around the room,
I say to Susan Pigott, Jim Russell, Zaib Shadini, Betty
Anne Baker, Chris Pinney and all of you: if the choice is
between status quo and managing chaos, there is no choice
- only chaos to manage.
By contributing both financial and human
capital to community institutions, corporations can help
embrace a true knowledge society. RBC's Employee Volunteer
Grants Program is one way we support and encourage vital
community connections. Employees that devote a minimum of
40 hours a year to a registered charity are eligible for
a $500 RBC grant donated to the organization in their honour.
Alison, who also represents The 519 Church Street Community
Centre, is acquainted with this program, as are countless
other organizations.
The time has never been more right for the private/public/voluntary
sectors to create and sustain stronger partnerships. In
all the years I've worked in corporate Canada, I've never
heard so much talk about building relationships/partnerships-and
I've never seen so many in action. I believe that strong
partnerships have immense power across the country, especially
in current economic times - or as Alison might say, "discontinuous"
times.
Working together, getting connected and
staying focused all comes down to leadership and communication
- managing the chaos. We need to invent the future, create
the innovative investments and partnerships that will help
us work toward goals that we can share and achieve - to
maximize the win/win and collective impact results that
we need!
If you're managing the relationships,
you're managing the most important element of the chaos.
So keep in mind what Jane Jacobs said: "Everything
interesting happens at the edge of chaos."
*For convenient access to RBC Financial Group's Corporate
Responsibility Report, Public Accountability Statement and
list of Donations, please check out http://www.rbc.com/pas/index.html.
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