|| Print ||
|Archives - October 2009|
|Thursday, October 01, 2009|
As CEO of Portland-based Mercy Corps, Neal Keny-Guyer has seen enough rickety elevators in Third World countries to think of them as likely death boxes, and takes the stairs even in the organization’s shiny new global headquarters in Old Town.
The congenial 55-year-old sees a lot of failing infrastructure as Mercy Corps’ globe-trotting top ambassador — a fitting role for a Tennessee-born, North Carolina-educated gentleman who has retained his Southern graciousness as well as a slight twang. Keny-Guyer might fly one week to Zimbabwe, where Mercy Corps, an international aid nonprofit, pays for school improvements and medical supplies for orphans, and the next week to a Denver event sponsored by Western Union, which has partnered with Mercy Corps on programs that improve financial literacy. But he wasn’t always the agency’s public face.
“When I first came here, Mercy Corps was very different,” Keny-Guyer says. “I was involved much more in operations… I can remember the days when I read every single proposal.” He adds, laughing, “Now I’m lucky to even know what we’re doing half the time.” When he joined as CEO 15 years ago, Mercy Corps was in about 15 countries with a budget of $30 million. Today Mercy Corps is in 40 countries with a budget of $278 million.
The most recent growth spurt happened virtually overnight. Revenue quadrupled from 2004 to 2005 because the agency happened to have staff in Indonesia when the Indian Ocean tsunami hit. Mercy Corps workers were on the ground in the Sumatran city of Banda Aceh, ground zero of the disaster, within 24 hours. Donations rolled in thanks to an aggressive Web fundraising campaign and the agency’s reputation as a tight ship. Keny-Guyer, who was a director at the behemoth international aid agency Save the Children before joining Mercy Corps, refuses to take credit for Mercy Corps’ growth spurt. “I wouldn’t underestimate the importance of being in the right place at the right time,” he says.
But luck can’t explain how Mercy Corps scaled up so quickly without major growing pains. There were a few bumps, most notably the end of one of Mercy Corps’ proudest claims to fame: its unusually low overhead.
Non-program costs ballooned from 5% to between 11% and 13% as Mercy Corps expanded its internal auditing department and improved employee benefits. The increase made some of Mercy Corps’ staff and board members wonder if the organization was growing too fast, but Keny-Guyer says it’s necessary in order to remain accountable to donors and the government. “As long as we can stay roughly between 10% and 15%, we’ll feel like we’re meeting all the best standards out there,” he says.
But there is no sign that Mercy Corps has overextended itself. The organization seems poised for steady growth with its solid corporate partnerships, high marks from ratings agencies and the opening of its global headquarters this month. Keny-Guyer says Mercy Corps has the edge in what he calls “Web-based storytelling” — using Web and social media to explain aid efforts to donors using videos, pictures and blog posts from the field.
Catastrophic change is routine for Mercy Corps, which adapted smoothly to its new size and scope. Revenue fluctuates wildly due to world events, so much that the agency calculates two budgets: a core budget that includes unrestricted private donations that don’t vary much, and a restricted budget of donations made to programs. (In 2007, when there were no major disasters, revenue was $26 million; it jumped to $49 million in 2008 after the Chinese earthquake.) Keny-Guyer says Mercy Corps’ greatest long-term challenge is climate change, which causes migration, conflicts over resources and freak natural disasters.
Mercy Corps’ greatest short-term challenge is another disaster, the recession. Lehman Brothers collapsed a month before the grand opening of the first Mercy Corps Action Center, an open lobby designed to educate high school students in Manhattan about Mercy Corps’ efforts, and patrons abruptly pulled or reduced their pledges. Other donors didn’t cut back as much as Keny-Guyer expected, but the agency had to cut costs everywhere but field operations. Travel and consultants were reduced, almost all the executives took voluntary salary freezes, and 22 employees were laid off in January.
The ability to mobilize and demobilize efficiently is one of the arts of international aid, Keny-Guyer says. Mercy Corps’ disaster training seems to have translated to its business strategy. The same flexibility and levelheadedness it uses in emergencies has kept the young organization on its feet and moving forward.
Thursday, July 30, 2015
BY JASON E. KAPLAN | STAFF PHOTOGRAPHER
Greenpeace activists suspended themselves from the St. John's Bridge in an attempt to prevent a ship from heading to the Arctic.
Monday, July 13, 2015
BY KIM MOORE
Revenues in Oregon's private, for profit sector maintained solid growth as the economy continued to rebound.
Thursday, June 18, 2015
While most categories of commercial real estate have performed well, one of the most robust has been apartment buildings.
Tuesday, June 23, 2015
Oregon’s new marijuana law is expected to lead to a bevy of new business opportunities for the state. And not just for growers. Law firms, HR consultants, energy efficiency companies and many others are expected to benefit from the decriminalization of pot, according to panelists at an Oregon Business breakfast meeting on Tuesday.
Friday, July 17, 2015
Photographer Jason Kaplan takes a look at Murray's Pharmacy in Heppner. The family owned business is run by John and Ann Murray, who were featured in our July/August cover story: 10 Innovators in Rural Health Care.
Friday, July 10, 2015
BY JOE CORTRIGHT
The false promise of economic impact statements.
Wednesday, July 15, 2015
Oregon's roads are crumbling, and revenues from state and local gas taxes are not sufficient to pay for improvements. We asked readers if the private sector should help fund transportation maintenance and repairs. Research partner CFM Strategic Communications conducted the poll of 366 readers in February.
"I feel private enterprises are capable of operating at a higher efficiency than state government."
"This has been used in Oregon since the mid-1800s. It is not a new financing method. This form of financing may help Oregon close its infrastructure deficit by leveraging funds."
|10 Innovators in Rural Health|
|The Private 150: From Strength to Strength|
|Flattery with Numbers|
|Farm in a Box|
|Preserving the Legacy|
|Downtime with Debra Ringold|
|Study supports Uber's drunk-driving claims|
|Is Twitter a takeover target?|
|Washington to add 7 cents to gas tax|
|Wages, benefits grow at slowest pace in 33 years |
|Amazon earns $92M in profit|
|Under Armour bests Q2 earnings expectations|
|More than a hundred passengers forced to stay overnight at PDX|
One of the many reasons why businesses fail is due to the lack of attention to analytics. Sure, you can go on running your business, but mastering the science of analytics will translate into a business advantage.
Court experience helps legal firm anticipate potential problems for clients and prevent expensive litigation.
When Garmin AT needed to consolidate operations for its 550 employees, it scanned its entire corporate map for possible sites.
Strategic Economic Development Corporation (SEDCOR) has announced a new strategic plan to guide the organization in its planning, activities, and initiatives. The strategic plan, released at the start of its new fiscal year, includes the organization’s mission and key objectives.
Professional and Continuing Education (PACE) and the College of Business at Oregon State University is offering “Business Analytics for Competitive Advantage”, a two-day intensive workshop.
A look back at the shifting sands of Portland’s growth and development.