January 2008 Archives
By Aaron Hurst on
January 24, 2008 10:34 AM
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There appears to be a correlation between the age of a profession and its adoption of a pro bono ethic. The medical and legal professions are two of the oldest professions in this country. We look at them now and we assume that they have always had a strong sense of identity and a code of conduct. The reality is 
that both started as very informal professions that took decades (if not centuries) to evolve to the point where there was a common definition for a lawyer or a doctor. It was at this point that medical schools and law schools could form and have a standard curriculum. It also enabled standards that could license a professional as a member of the field. This sense of the collective profession and a need for each member to serve as an ambassador for the profession also led to alignment on a code of conduct over time. Part of this code addressed the responsibility to serve the population who couldn't afford their professional services.
The core professions engaged in corporations are not nearly as evolved. 100 years ago, very few companies existed and little was known about marketing, finance, management and the other core functions at the modern company. It wasn't until roughly 50 years ago that we saw a real explosion in graduate schools to train these professions and trade associations to organize and study them. We are just now starting to look at the code of conduct of these professions. What is the vow marketing professionals make to their profession and to society about their conduct and responsibilities? What is the vow an HR professional makes? An engineer? A designer? An accountant?
These are tough questions, but as they are answered, the professions should develop a much deeper sense of identity and pride in their craft. With this we hope will also come an awareness of the needs of the organizations that are underserved (e.g. nonprofits) and the ethical responsibility to support their work.
By Aaron Hurst on
January 16, 2008 5:40 PM
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I just read the Deloitte Community Involvement annual report that included a description of their amazing work for the United Nations Development Programme (UNDP) in 2004 in the wake of the tsunami. The UNDP was apparently overwhelmed in its efforts to disburse aid and ensure assistance reached those in need after the tsunami in Indonesia. Their systems simply couldn't handle the outpouring of support from around the globe. Deloitte provided 60 consultants across six member firms to work for over seven months and provide over 14,000 hours of consulting help for the UNDP ($5 million in pro bono services). The consultants made recommendations on business and operations processes, as well as financial controls to strengthen the capacity and accountability of the UNDP.
In a word--wow. That is the kind of compassion, smarts and commitment that all companies should use to set the bar. It also illustrates that while financial contributions are critical, without the systems to leverage the funds, the value is diminished. In this case, these pro bono services were likely much more valuable than Deloitte just writing a check for $5 million. Right cause. Right time. Right investment.
By Aaron Hurst on
January 8, 2008 8:52 AM
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Last year I gave up on the lose weight resolution and decided instead to make it a resolution to simply wear more black--it is slimming. It has enabled me to do more shopping, work out less and eat anything I want. It has really worked out well for me (at least until I die of a heart attack at 49 like my mother did).
The other common resolution is to start getting involved in the community--to be a better person. For those who are making this a priority for 2008, you can use my strategy and not change any behavior, but simply visit the Gap and buy some of the "red" product line and show the world you care. While, luckily, this move is unlikely to lead to your early death, it is also unlikely to make you reflect positively on your impact on this planet.
Another way to get involved in the community is for you to do it pro bono this year and put your skills to work making a real impact in the community. Not only does it lead to happy death bed reflection, but most people actually report that it is fun. It could also enable you to achieve your goals of making new friends and advancing your career this year--who knows.
do it pro bono.
By Xavier Fan on
January 2, 2008 10:46 AM
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Where do you think the nonprofit sector could effectively use financial management resources?
Some thoughts:
- To start with, for volunteers from the corporate finance world to be useful to nonprofits, they need to understand how nonprofit finance works. Taproot could provide a primer: nonprofit accounting, grant process, reports, etc. This way the volunteer starts with some of the tools to speak their language.
- Ability to "measure/quantify results" is one of the biggest gaps for nonprofits (and corporations as well, to a lesser extent--since the bottom-line is usually the baseline).
- As applied to financial management for nonprofits, I wonder if "developing good financial hygiene" or "understanding where their money is going" or "introducing measurement mechanisms for their resource expenditures" might be good goals for Taproot projects.
- In other words--have Taproot volunteers go in (properly prepped as to how nonprofit finances work), do a quick, high level audit (starting with the annual report).
- Where is the money going? If it's not clear, then you need better accounting controls.
- How does the resource allocation align with the nonprofit's goals? If it's not aligned the way they thought, some recommendations can be made as to how to improve them.
- Are the results commensurate with the amount of resources expended? If the answer is not clear, then better ways to measure results are needed.
- I think one of the biggest contribution corporate resources can make (on the financial management front) is introducing a systematic mindset of accountability and measurement, and helping to put in place the processes and tools to execute and improve on it.
that both started as very informal professions that took decades (if not centuries) to evolve to the point where there was a common definition for a lawyer or a doctor. It was at this point that medical schools and law schools could form and have a standard curriculum. It also enabled standards that could license a professional as a member of the field. This sense of the collective profession and a need for each member to serve as an ambassador for the profession also led to alignment on a code of conduct over time. Part of this code addressed the responsibility to serve the population who couldn't afford their professional services.
