How and why I went to work for Goodwill Industries

In the last piece I wrote for this blog, I offered some reflections upon retiring from a 45-year career as a Goodwill Industries executive. In this piece, I will write about how that career began.

I joined Goodwill four years after I graduated from Georgia Tech with a degree in Industrial Engineering. However, if anyone had told me then that I would spend all but a few of the next 50 years working for Goodwill Industries, I would have considered them delusional. Yet, I cannot imagine a career that would have been a better fit for someone who’s wired the way I am.

Most successful careers are not planned. Peter Drucker put it this way: Most successful careers are a result of understanding what your values are, what you’re good at, what you’re not good at, what kinds of situations you work well in and what kinds of situations you don’t work so well in. Then you try to find a fit with all of that. That’s not necessarily easy to do and sometimes it comes only after a succession of not-so-good experiences.

But a good fit can also come from being open to possibilities you never really thought about before – perhaps as a result of a part-time job, a volunteer experience, or just by getting to know people with backgrounds and experiences different from yours. And then, when you do find a fit that seems promising, you continue to learn as much as you can through whatever means you can. The results can be tremendously rewarding in a number of ways. At least, that’s been the case with me for over four decades.

My career path started with a volunteer experience. Two years after I graduated from college, I was living in Washington D.C. while completing my military commitment. I was single, had a lot of free time, and attended a church that was heavily involved in community service. Every Saturday morning, they had a two-hour program for children with disabilities. Nearly all of the kids lived in low income households, and they relied on the church for transportation. I volunteered, and every Saturday morning I went to the homes of some of the children, picked them up, took them to the church, then took them back home again. They were great kids, and I got a lot of satisfaction from doing that.

The church also offered a tutoring program on Thursday evenings for teenagers who lived in low income neighborhoods. I volunteered and for more than a year I tutored two boys 13-14 years old, one-on-one. I had never done anything like that before, and I got so much satisfaction from the experience I started wondering if I could find a place where I could use my industrial engineering skills, get a similar kind of satisfaction, and get paid for it. I called several not-for-profit organizations that were headquartered in the Washington area, described my background, and asked them if they had any jobs for someone like me. Goodwill Industries was one of those organizations.

That initial conversation turned into a six-month process that included numerous meetings with national Goodwill staff and several Goodwill CEOs, interspersed with visits to two local Goodwills and a Goodwill convention. After much procrastination, I eventually decided to enter an executive training program offered by what is now Goodwill Industries International. It meant taking a 25% pay cut, accepting the lowest of three job offers I had at the time, and making a four-year commitment to work in a field that was totally foreign to me and that certainly carried no prestige with it – at least not in those days. I was 26 years old at the time.

The decision to go to work for Goodwill was the hardest decision I’ve ever made in my life and was, at its core, a faith-based decision. Simply put, I believed this was what I was supposed to do. Over the past forty-five years, that belief has been confirmed in ways I never would have imagined.

JMMcollage

Some thoughts upon retiring from a long career

The “farewell” tour I’ve made during the months leading up to my retirement has been one of the highlights of my entire career. Listening to the stories and hearing the comments of hundreds of employees and students, I’ve never felt better about the organization – our people, our culture, and what we are doing.

JMMcollage

There’s no doubt that the impact Goodwill is having is far greater than ever. The way we are linking services internally and with other organizations in a holistic, multi-generational approach is, I’m confident, going to have lasting impact and help begin to reduce some major social problems. And yet, there’s so much more that needs to be done.

My career has been a constant learning and growing process, but the learning really began accelerating in 2004 when we became directly involved in public education by opening the Indianapolis Metropolitan High School.

imet

Since then, Goodwill has evolved at a rapid rate that has further accelerated the learning throughout the organization. And while we don’t claim to have all the answers, based on our experiences as well as what we’ve learned from others during the past decade, I’m convinced that if we are ever going to substantially reduce a lot of the social problems that are plaguing U.S. society today, we must:

  • Continue working vigorously to raise education attainment levels, and we must ensure that at every step along the way we’re preparing students well for what comes next.
  • Greatly increase the number of affordable, accessible, high quality early childhood development opportunities for children in low income households. Because of the way the brain develops, the years 0-3 are even more important than ages 3-5. The earlier we start, the better.

In addition, to break a cycle of poverty, we need to take a long-term, holistic, multi-generational approach that leverages the resources and capabilities of multiple organizations within and across the sectors in focused ways designed to prevent problems, help kids develop, strengthen families, and make much more effective use of existing resources.

Goodwill in central Indiana is taking such an approach with a growing number of families and organizations, and that approach is attracting a growing amount of national attention. But while others can learn from our experiences, we must also continue to learn from others.

And while Goodwill’s board of directors and new CEO, Kent Kramer, will determine the organization’s direction going forward, there’s a strong base of knowledge and experience to build on and a lot of resources that can be deployed to further increase impact.

I don’t know what the organization we’ve built will look like ten years from now, but I know it will be different. Goodwill must continue trying new ways to grow its businesses and accomplish its mission; it must continue to learn; and it must continue to adapt as the world around it changes. Yet while I can’t predict what the organization will look like a decade from now, I do hope to be around watching from the sidelines, and I fully expect to be amazed!

Goodwill’s evolution – an organic process

For years, I’ve considered the most unique aspect of Goodwill to be the way and the extent to which we blend business and a social mission. More recently, though, perhaps equally unique is the extent to which we are leveraging our resources and capabilities with those of others to create new opportunities that benefit people and communities. I’ll explain.

A lot of social problems have become worse over the last forty years despite massive increases in public spending and a huge proliferation of not-for-profit organizations. Part of the problem lies in the “silo” structure of the public sector and the fragmented nature of the not-for-profit sector. In many cases, organizations are doing very good work addressing pieces of a larger problem, but seldom have we been connecting the pieces well. As a result, we have not been solving the big problems.

A lot of our work at Goodwill is now focused on connecting pieces. Some of those exist within our own organization and some involve other organizations that have complementary capabilities. We see numerous examples of this, as Goodwill retail employees and Nurse-Family Partnership (NFP) moms enroll in an Excel Center or begin working toward a certification through a class taught by Ivy Tech or Vincennes University.

More examples: We have Eskenazi Health referring expectant mothers to NFP and also hiring graduates of The Excel Centers. We see Indianapolis Day Nursery Association offering employment to NFP moms, helping them work toward certifications, and providing high quality care for their children. And we see graduates of Goodwill-operated schools becoming employed with help from TalentSource, Goodwill’s job preparation and placement service.

The extent to which Goodwill is evolving into an array of networks that link services across organizational boundaries in a holistic, often whole family manner is unique. This approach brings high quality services together to make more effective use of existing community resources and result in greater lasting impact. With sufficient scale, this approach can play a role in reducing generational poverty.

The way we are evolving into this array of networks is not the result of a brilliant grand plan. Rather, it’s an organic process that is ongoing, and it’s largely a product of three primary factors:

  • A lot of smart, talented people who bring to their work not just their knowledge and skills, but also a strong commitment to what we are about – in other words, they bring their heads and their hearts.
  • A culture characterized, in part, by a constant desire to find ways to improve and further increase our long term impact in the lives of people and the communities where we operate. It’s also a culture in which people generally work well with each other.
  • Strong relationships with a lot of people in a lot of other fine organizations across all the sectors.

It’s also important to note that everything we do is built on a solid financial foundation that depends largely on the oldest part of Goodwill – our retail system, which provides jobs for 1300 people whose options are limited by disability or other significant barrier and that is, in turn, dependent on donations of used goods from and purchases by hundreds of thousands of central Indiana residents.

This organic evolutionary process results in a Goodwill that is constantly changing. We try things, we learn, we adapt as the world around us changes, and we evolve as an organization. It’s the approach we take to continue increasing long term impact and help reverse some of the negative trends we’ve seen in our society over the last forty years.

Forty years experience summarized on one chart

Forty years after starting my Goodwill career, I attempted to summarize on one chart the essence of what I have learned about the ingredients necessary to sustain organizational success over a long period of time. Here’s a brief explanation of what appears at the end of this post.

  • Every organization exists in a larger context and is affected by many external factors, including changes in the economy, demographics, technology, competition, laws or regulations, the political climate, and external shocks, which can be natural or man-made disasters. Organizations must be able to adapt quickly and effectively to such changes or risk becoming ineffective, irrelevant, or extinct.
  • It can be useful to keep in mind that organizations change for three reasons: They see a need or an opportunity; they have a sense or fear of something that might happen; or they change in response to something that’s already happened.
  • Organizational leadership in the not-for-profit sector is a function of three components: governance, management, and aspirations (or vision). The organization’s leaders should begin with the end in mind, i.e. by asking how they will measure success. They should translate the aspirations into concrete, measurable goals and align everything toward the goals, including organizational structure, business models, products and services, resource development and allocation, recruitment and hiring, training and development, performance reporting, recognition and reward systems, policies and practices, internal and external communication, and organizational culture. The leaders should be aware that most organizations are perfectly aligned for the results they are getting, and if any major factor is significantly out of alignment, it will be nearly impossible for the organization to excel.
  • The leaders must also recognize that none of the above is static. Everything is subject to change as new opportunities or challenges arise and as the external environment changes.
  • Success is a function of three elements: (1) impact, which is a function of mission-related results, (2) sustainability, which is a function of financial strength, and (3) adaptability, which is a function of the organization’s culture. An organization can be successful for a time with just the first two, but it will cease being so if its culture does not enable it to adapt effectively as the world in which it operates changes.
  • A good overall objective for a not-for-profit organization is to maximize mission-related impact while maintaining a financial position that enhances long term viability.
  • The leaders of a successful organization must constantly be aware that sustained success can result in succumbing to the demons of inertia, complacency, myopia, or arrogance. They must remind themselves of the old proverb, “Whom the gods would destroy they give forty years of success.” Today, though, it doesn’t take anywhere near forty years for any of those demons to cause an organization to be destroyed by outside forces or to self-destruct.
  • In the final analysis, the most important factor determining the success or failure of an organization is the quality of its leadership or lack thereof. Successful organizations have leadership that:
    • understands its context
    • knows what it wants to accomplish
    • aligns everything toward that end
    • is never content with the status quo
    • and continues to learn, adapt, and evolve

This is one model of the ingredients necessary for sustained organizational success. But it’s good to keep in mind George E. P. Box’s admonition, “All models are wrong. Some models are useful.”

mcclellandmodel

Adapting to Technological Changes

The fastest growing part of our organization is our ecommerce unit. By enabling us to sell many items for substantially more than they would sell for in a Goodwill store, our ecommerce operations enable us to be better stewards of the goods people give us. The growth of our ecommerce operations has also created a lot of jobs, as we currently have nearly 100 employees at clickgoodwill.com – over twice as many as we had at the beginning of this year.

Down through the years, technological changes have eliminated some jobs and created new ones. At Goodwill, for example, when I started my career we repaired radios and television sets. Doing so wasn't too difficult in those days. The sets used vacuum tubes (younger readers, look it up on Wikipedia), and we had a tube tester. Check the tubes, replace the bad ones, and many of the sets would work just fine. Vacuum tubes were eventually replaced by solid state electronics, and this effectively put an end to our repairing radios and TVs.

During those same years, we also repaired toasters and other small appliances. Over time, though, technological improvements in the manufacturing processes and increased sophistication of the products, coupled with rising labor costs, made many new small appliances less expensive than the cost of repairing broken ones. Fortunately, in more recent years, technological improvements have also helped create recycling and secondary markets for many products that can no longer be repaired economically.

Another example: From 1974 till 1992, we manufactured high quality oak file boxes for 3×5 and 5×8 cards for the federal government. For quite a few years we had 18 employees – most of them people with disabilities – who produced an average of 50,000 boxes a year. But over time, as the use of personal computers rose, the use of file cards fell and, consequently, the government didn’t need as many of the boxes. Eventually, the volume declined to the point where we exited that business.

Our involvement in online retailing began very slowly about twelve years ago after Goodwill in Orange County, CA created shopgoodwill.com. The Orange County Goodwill continues to maintain that 7-day auction site, which is designed to enable any Goodwill organization to post items on it. About five years ago, we began to increase our use of shopgoodwill.com, and we also began posting some books on several book-selling Web sites. We subsequently added CDs, DVDs, video games, and jewelry to the array of items we could effectively sell online. Better software and packaging equipment have improved our efficiencies to a remarkable degree, and we believe there is enormous additional growth potential in that part of our organization.

Of course, as is the case at most relatively large organizations, new technologies have created other entirely new departments at Goodwill. Known in many companies as IT (Information Technology), in our organization it’s TS (Technology Solutions). Composed of bright, talented people, TS keeps us connected, helps develop and optimize uses of technology to improve our effectiveness, and helps us be good stewards of our resources. As the organization continues to evolve, so too do the services of the Technology Solutions department.

While we’ve come a long way, we can be sure that technological changes will continue to create new challenges and opportunities for us. We can also be sure that if we do not adapt well enough to those changes, we will be left behind – less effective, perhaps irrelevant, and in a worst-case scenario maybe even extinct.