Building Capacity in Early Childhood
About the client
Now in his late 50s, Simon had made his fortune as a stockbroker. His broking partnership was bought out by a large local bank over 20 years ago at what was then the top of the market. Up until 4 years ago when he semi retired, he had continued to work for the bank in the venture capital area but always recognized how fortunate he had been. He set up a charitable foundation 7 years ago with just under $5m as capital and intended it to survive him.
With good investment $5m had risen to $6m and he was now giving away $350,000 a year. In the set up process he allocated some time to research what interested him and how he was going to manage the Foundation. He wanted to do more than just give money away but wasn’t sure what that would look like.
He became interested in indigenous issues. He was perplexed as to why health and employment conditions for Aboriginal Australians were so poor compared to the rest of the population. He decided to direct his Foundation’s grants to charities that supported programs in indigenous health and education.
After a couple of years, despite attending their various fundraising events, he found it hard to connect generally with the charities he was supporting, let alone the recipients of his funds, and become increasingly less confident that his money was as wisely spent as he had initially intended. At many points the ambition to get more personally involved seemed too hard. He was also surprised how little time he had to devote to his philanthropy, and how difficult it seemed to become engaged.
Connecting with PSI Managers
He was introduced to Keith at PSI Managers about 3 years ago. Simon wasn’t giving away enough money to justify his own full time staff, and in any case he wanted something that got him more involved. For the last 2 years he has worked consistently with Keith for a couple of days a month, expanding his thinking about what purposes within the indigenous landscape made sense, what types of programs were the most effective and getting Keith to follow up when his own time was short.
Amongst other things, Keith introduced Simon to the research around the importance of early childhood brain development. Youth training still made sense to Simon but the ‘bang for buck’ that early childhood spending delivered resonated with his investment experience. If we could identify the disadvantaged infants early, the costs to the whole system would be lower and the education and employment programs more effective.
The ‘bang for buck’ that early childhood spending delivered resonated with his investment experience.
An opportunity presents itself
Simon attended a fundraising dinner with a friend for a small indigenous charity, Wyamalee, that provided training support for staff from rural-based, indigenous child care centres. Simon was very impressed with the CEO.
He asked Keith to meet with the management and Board Chair and make a recommendation. Keith agreed with Simon that the CEO was impressive, and recognized the power of the support the organisation provided in uplifting the skills of child care workers. But Keith was concerned with the depth of the Board (which effectively had only 3 engaged members) and the sustainability of their funding sources. There was no strategic plan that the Board could reference in its discussions with the CEO and operationally there appeared to be poor processes.
More than just a financial grant
Keith and Simon both agreed that a grant of $70,000 seemed appropriate for one year. Keith talked through with Simon about how they should frame their grant and wondered about using Simon’s venture capital experience to think of a different way to assist Wyamalee. Both Keith and Simon felt their best contribution beyond a grant would be made at the governance level of the organization – this would help both the Board and the CEO.
Simon proposed that their grant be dependent on Keith supporting the CEO and the Board in forming a strategic plan. The Board and the CEO were very supportive. Keith was careful not to overplay his role, and used this opportunity to build trust within the Board and CEO over the four months that it took to complete the plan. Simon was involved in the final draft of the plan and attended, with Keith, the Wyamalee Board meeting when the plan was adopted.
Simon proposed that their grant be dependent on Keith supporting the CEO and the Board in forming a strategic plan. The Board and the CEO were very supportive.
Keith and Simon decided to let events transpire at Wyamalee and indicated that they would come back for a review meeting prior to the Foundation resolving whether to repeat the grant the following year.
Problem located, plan conceived
6 months later, Keith and Simon met informally with the Board Chair. The Chair confided that in spite of having lots of external interest in the strategic plan, the Board was still having trouble using the plan effectively.
Keith and Simon realized that the lack of depth on the Wyamalee Board was becoming a real problem. They proposed to the Chair that for the upcoming year the grant would be repeated on the basis that the Foundation would also contribute to a Board refresh program. The Chair had seen enough of what Simon’s Foundation could offer to be very supportive of this. Keith then devised a comprehensive plan that included a review of the current Board’s skills and their future requirements. A subcommittee of the Board was formed to undertake the recruitment process. Keith assisted, devising an advertisement that was widely distributed.
Keith then devised a comprehensive plan that included a review of the current Board’s skills and their future requirements.
The process surprised all with the quality and number of applicants received. In the end the Board resolved to appoint 4 new Directors. Simon however expressed concern that adding 4 new directors might create a very challenging dynamic. He suggested to the Chair that the first 12 months be primarily about enhancing the Board subcommittees, as a way for the new Board to know one another better. The Chair liked the idea. The Foundation resolved to repeat the grant of $70,000 and gave an in principal commitment to funding the Wyamalee for that amount for a further three years.