SVP's First Investment Remembered
SVP Portland co-founder Eli Lamb was the Lead Partner on SVP Portland's first ever investment in Morrison Child and Family Services. We asked him some questions about his experience in the selection and execution of the investment.
What was the Investee selection process like for Morrison Child and Family Services (Morrison)?
We sent a letter and brochure to all of the child-oriented nonprofits we could identify in the Portland metro area inviting them to apply for an SVP Investment by sending in a Letter of Intent. After winnowing them down to about a half-dozen, we sent them an application to complete. Each of the nonprofits up for selection had a “champion” on the Investment Team. After reviewing the proposals, we met with the finalists. Then we voted and Morrison won.
Did you inherit that model from SVP Seattle?
When SVP was founded, we were mainly all ex-Intel partners. So we were inculcated with the “copy exactly” philosophy: we followed the SVP Seattle model as closely as possible.
Now, we collaboratively develop a Memorandum of Understanding with the leadership of our new nonprofit partner to outline goals, roles, and deliverables of the investment. What was the protocol for deciding upon these factors then?
We did an annual plan that stated the end goals as well as one year of quarterly goals. We then reported progress against that annual plan.
We’ve built a hefty support system for our Lead Partners. They have a strong team of volunteers, quarterly meetings with other Lead Partners, and the “Lead of Leads” that provides counseling and coaching. What did the Lead Partner role entail back when you were one?
The Lead Partner then was pretty much on their own. We had no office support and no committee other than the Investment Team. We asked for a quarterly report and an annual plan (also stolen from SVP Seattle).
How did you land the Lead Partner role?
Hmm. I probably volunteered in order to seal the deal in the Investment Team. One of our criteria then that has since changed was that a Lead Partner needed to be assigned before we voted in the investment.Can you talk a little bit about the parameters of the investment? The goals, the investment amount (time and $)...etc. Did those change over time?
Our stated investment amount was $30-60K annually, I believe. The goal of the investment was to build Morrison a modern IT system, including an electronic patient database. We set a schedule of 2 years I believe. Almost immediately, the economy took its toll on Morrison so that they could not spend as much on their side as was planned. Therefore, the schedule slipped. We also had to first build a new financial reporting system, which was not originally planned. The whole investment ended up spanning four years.
What were the major successes and achievements of the investment?
It was a great partnership between SVP Portland and Morrison. It served as a role model for many years. In the end, we accomplished all that we had intended. Our biggest impact was actually on the financial side: we put in a new financial system that vastly improved their billing cycles, outsourced their building maintenance (saving $50K/quarter), and revamped their real estate management. Overall we calculated we did all of the above and saved them almost $2 million over the four years. We also contributed many, many hours of volunteer time. I can’t recall the total.
What lessons did you and SVP learn from this first investment?
Be sure you have a concrete goal and a great nonprofit partner.
What was the investment and Lead Partner experience like for you personally?
Since I was a complete newbie to the nonprofit world, it was a huge learning experience and personally transformative. I very much enjoyed the work and delighted in how rewarding it was. We made a huge difference with relatively small amounts of money and time.