Lessons - How to Build World-Changing Organizations That Actually Last | Anne Mahlum - Social Impact Innovator & Entrepreneur

Summary

Success Story Podcast: Lessons - How to Build World-Changing Organizations That Actually Last Guest: Ann Mallom – Social Impact Innovator & Entrepreneur
Host: Scott D. Clary
Release Date: May 1, 2025

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Introduction

In this compelling episode of the Success Story Podcast, host Scott D. Clary sits down with Ann Mallom, a seasoned social impact innovator and entrepreneur. Together, they delve into the intricacies of building sustainable, mission-driven organizations. Drawing from Ann's extensive experience in both nonprofit and corporate sectors, the discussion offers invaluable insights into scaling organizations, leveraging individual strengths, implementing replicable systems, and fostering high-impact leadership.

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Understanding the Challenges in the Nonprofit Sector

Ann Mallom begins by addressing a pervasive issue in the nonprofit world: operational inefficiency. She observes that many nonprofits struggle to function as efficiently as their corporate counterparts, often due to a lack of structured processes and disciplined management.

Ann Mallom [04:10]: "I actually think that you're not the normal nonprofit or it's nonprofit or I don't think you're the normal nonprofit founder or nonprofit executive because I see obviously look at what you went on to build. But for some reason nonprofits don't usually operate that efficiently and they don't usually, they try for change, but they're the people that are attracted to them and work for them. They're not the best operators in the business. And I think that's a huge missed opportunity."

Ann highlights that while nonprofits are driven by noble causes, they often lack the organizational rigor necessary for scalability and long-term sustainability. This inefficiency is a significant barrier to achieving their missions effectively.

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Leveraging Strengths to Unlock Fundraising Success

A pivotal theme in the conversation is the importance of "playing to your strengths." Ann emphasizes that understanding and capitalizing on individual and organizational strengths is crucial for fundraising success and overall growth.

Ann Mallom [04:50]: "Everybody, every one of us, Scott, you have certain skill sets and so do I. And we have things that we're not good at and whatever I was really good at figuring out what am I really good at and how does that serve the mission of this organization."

Ann shares her approach to fundraising for her nonprofit, Back on My Feet, which focuses on helping homeless individuals through running programs. Recognizing that traditional causes might not resonate as easily with donors, she strategically targeted runners and executives who shared a passion for running. This alignment of interests facilitated more effective fundraising efforts.

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Building Replicable Systems and Processes

Scaling an organization requires robust systems and processes. Ann discusses how she translated her nonprofit experience into the corporate domain with Solid Core Studio, ensuring consistency and scalability across multiple locations.

Ann Mallom [06:22]: "The thing about scaling is you look at the ecosystem that works, and then you have to say, how do I replicate the ecosystem?"

She outlines the importance of establishing clear structures, such as having local executive directors and standardized training for coaches to maintain brand consistency across different cities. This replicable model ensures that each new location operates seamlessly within the established framework.

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Empowering Teams through Clear Decision Boundaries

Effective delegation and empowerment are critical for sustainable growth. Ann introduces the concept of "red, yellow, and green" zones, a decision-making framework borrowed from corporate training methods.

Ann Mallom [15:30]: "Here are your red, yellow, and green. The things in the red, you don't have authority to make decisions on. Right. Like, you can't change the pricing for the studio."

By clearly defining what decisions managers can and cannot make, Ann fosters trust and autonomy within her teams. This clarity not only streamlines operations but also enhances team morale and accountability.

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Focusing on High-Impact Leadership Tasks

As organizations grow, leaders must shift their focus from operational tasks to strategic initiatives that drive long-term success. Ann shares her personal journey of transitioning from hands-on coaching to high-impact roles such as negotiation and relationship building.

Ann Mallom [12:10]: "I started to figure out what's the best way for me to make the most financial impact for the business based on my skillsets. And that was negotiation with the landlords, right?"

By delegating operational responsibilities and concentrating on areas where she could significantly influence the organization's financial health, Ann exemplifies effective leadership that prioritizes strategic growth over day-to-day management.

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Overcoming Scaling Challenges Through Adaptability

Ann reflects on the pivotal moments that necessitated a shift in her leadership approach. The realization that she could not manage every aspect of the organization herself was a turning point that led to the development of scalable systems.

Ann Mallom [13:46]: "If you want to be involved in everything and want to scale something really big. So you have to do your best to train people to talk about culture, to talk about decision making."

This adaptability is crucial for any leader aiming to scale an organization. By recognizing the limits of personal capacity and proactively addressing them, Ann ensures that her organizations remain resilient and capable of sustained growth.

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Conclusion

In this insightful episode, Ann Mallom provides a blueprint for building world-changing organizations that endure. Her emphasis on leveraging strengths, establishing replicable systems, empowering teams, and focusing on strategic leadership offers a roadmap for entrepreneurs and business leaders alike. Scott D. Clary expertly navigates the conversation, highlighting the practical applications of Ann's experiences and strategies.

For those looking to create impactful and lasting organizations, this episode serves as an essential guide, blending real-world examples with actionable advice to inspire and inform.

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Notable Quotes:

• Ann Mallom [04:10]: "But for some reason nonprofits don't usually operate that efficiently and they don't usually, they try for change, but they're the people that are attracted to them and work for them. They're not the best operators in the business. And I think that's a huge missed opportunity."

• Ann Mallom [04:50]: "Everybody, every one of us, Scott, you have certain skill sets and so do I. And we have things that we're not good at and whatever I was really good at figuring out what am I really good at and how does that serve the mission of this organization."

• Ann Mallom [06:22]: "The thing about scaling is you look at the ecosystem that works, and then you have to say, how do I replicate the ecosystem?"

• Ann Mallom [12:10]: "I started to figure out what's the best way for me to make the most financial impact for the business based on my skillsets. And that was negotiation with the landlords, right?"

• Ann Mallom [13:46]: "If you want to be involved in everything and want to scale something really big. So you have to do your best to train people to talk about culture, to talk about decision making."

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Further Resources

For listeners interested in exploring more about Ann Mallom’s work and the strategies discussed, visit www.successstorypodcast.com to access additional materials and watch the full episode.

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Disclaimer: This summary is based on the transcript provided and aims to highlight key discussions and insights from the episode. For the complete conversation, please listen to the full podcast episode.

Transcript

[Scott]

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[Ann Mallom]

Oh man. So like I love the saying, play a game that you can win, right? Like everybody, every one of us, Scott, you have certain skill sets and so do I. And we have things that we're not good at and whatever I was really good at figuring out what am I really good at and how does that serve the mission of this organization? And then you ask the question, well, who's going to care about these guys? Who cares if they're homeless or not? It's a really difficult issue to get people to get behind, right? There's a lot easier nonprofits and causes babies, kids, kids with cancer, animals, you know, why would you want to help a bunch of 40 and 50 year old men who a lot of people think screwed up their own life, right? Like they're living in homeless shelters. Get a job, get your life together. And so the way we raised money was I'm like, I have to find the runners. I need to find people who understand what this sport has done for themselves and knowing how much they respect themselves when they're out there at six in the morning running. And I need to find the executives who are runners because they have the money. And so I found Inroads. We had this big article on Runners World. It's still one of my favorite articles ever written about Back on My Feet. And Larry Solomon, who was the COO of Accenture, read that article. He lived in Philly, shot me a note saying, this is really cool rooting for you. And I'm like, please say we can get coffee. You know? And Larry was my meal ticket to all these executives. I'm like, introduce me to the runners. You're. Now I need the runners. And then it just snowballed from there. So I got. I built events. I created running events, and I created breakfasts, and I would get you out running with our members, which I'm like, if I can just get you to meet these guys. Darren, James, Joe. I mean, so many of them, you're gonna fall in love with them. It is the ultimate underdog story. And there's nobody, like, Americans love underdog stories. We love rooting for the guy that we think doesn't have a chance. And so I started to realize all of these things in the story and figure out a way to capitalize on all of them to raise money for other organizations.

[Scott]

It's so simple, but so smart. I think a lot of, like, nonprofits, if. If you want to give back and you're in that space, these are good examples to learn from, because I do think that sometimes people have a hard time scaling those types of organizations and attracting the right talent and finding ways to raise money. So, I mean, you just nailed it. What were some of the. What were some of the things that you actually took and you brought into Solid Core from a nonprofit environment?

[Ann Mallom]

Yeah. So the thing about scaling is you look at the ecosystem that works, and then you have to say, how do I replicate the ecosystem? So give you example with the Solid Core studio and the Back on My Feet running team. So when. When the chapters were forming with Back on My Feet, when we had one, we had one group running, right? And then it's like, okay, how do we go to 2? The logistics start to enter, and it's like, well, let's have everybody meet together. It's like, that's not going to work for very long. Because how do we get more homeless shelters to be a part of the program when they're spread across the city? And now we've got to pick people up at four. Like, it's never going to work. We actually need to replicate the shelter. So we had teams, so we would have call it six teams in Philly. Let's say you wanted to volunteer, Scott, you would get place on a team and you would go to that homeless shelter in the morning and then there'd be five other teams that would go to other homeless shelters. Volunteers. And we would all be running at the same time, not together. Right. So like, okay, cool, that can continue to replicate. And then you would take that model into another city and say, okay, we need, we need a local executive director and we need local staff and local funding.

[Scott]

You're building systems all the time.

[Ann Mallom]

Systems, systems, processes. So for a solid core studio, same thing. What do you need to make a solid core studio work? You need a leader of the studio, you need coaches, you need consistency. And so like, great place, the ecosystem, awesome. Well, what about the next one? The next one. It was easy to do that when in D.C. when there was like everybody was there and then it was time to go to another city. Well, how are you going to keep the brand consistent? So it was very evident that the training for the coaches had to stay corporate. Like we would send our people from corporate down there, get bought into the brand, understand the ethos, everything. And that director of training I spent a ton of time with, her name was Joe Gomez. And like we had to be on the same page about this culture, about how we do things, what's rewarded, why we say people's names in class. And so again, it's this replicate replication of what makes this special. And over, just like over and over again.

[Scott]

Hey, everyone, Scott here. I just want to take a second and say thanks for listening to the podcast over the past couple years. Obviously this wouldn't be possible without each and every one of you. I have a favor to ask, so I would love to get some more information about you and why you listen to the podcast and why you listen to the show and why you tune in every week. And I have put together a short survey and we are using this to help us sort of inform what type of content we want to create and the direction of the podcast going forward. Uh, this information is not shared with anyone else. So this is just for us internally and I put together a link so scottdclary.com survey where you can go and you can fill in some information so we can know what kind of content you love. Also, for the first 100 people that respond to the survey, you will be entered into a draw for a hundred dollar Amazon gift card. So we'll be giving out one of those to the first people that respond. It should not take more than two minutes of your time to fill out the WHO survey. It's really not that long and it will help you shape the future of the podcast. So I really appreciate each and every one of you and thank you for listening. I just want to take a second and thank Cornbread Hemp for supporting today's episode. Now, Cornbread Hemp CBD gummies have been this really nice addition to my wellness toolkit. I don't use them every day, just when I want to unwind after those extra busy weeks, but they're perfect for those moments when you want to take the edge off and just find your balance. Really just shut off from work. And what makes them special is how Cornbread Hemp crafts them. They only use a flower of USDA organic hemp plants. That's the best part for the purest, most potent experience. No fillers, no artificial fluff, just clean full spectrum goodness and delicious watermelon, berry and peach flavor. I keep them in my nightstand for those moments when I just need a little extra help relaxing. And I love how transparent they are too. Every batch is third party lab tested so you know exactly what you're getting. And they put together a special offer for all Success Story podcast listeners. All listeners can save 30% off their first order. Just head to cornbreadhemp.com success and use code success at checkout. That's cornbreadhemp.com success code success for 30% off your first order of these amazing gummies. I have to take a second and thank Northwest Registered Agent for supporting today's episode. Now listen. I know a lot of entrepreneurs listen to this show. If you're an entrepreneur, if you're building a business, you have to listen if if you want to get more when you're launching your next big idea, Northwest Registered Agent lets you establish your entire business identity in just 10 clicks and 10 minutes. For nearly 30 years, they've been the secret weapon for entrepreneurs who want to move fast while getting expert guidance. For just $39 plus state fees, they'll handle your formation, create a custom website and establish your local presence wherever your business takes you. As an entrepreneur myself, what I value most is their one stop business solution. You get everything from formation paperwork to custom domains to trademark registration all in one easy to use account. No more juggling all these multiple services or wasting time figuring out the legal stuff. So don't wait, protect your privacy, build your brand and set up your business in just 10 clicks and 10 minutes. Visit northwestregisteredagent.com success and start building Something amazing. Get more with Northwest registered [e-mail] slash success. So everything that you learned to do in the nonprofit world that was like directly applicable, like building these systems, processes keeping like understanding what has to be corporate versus decisions that can be made on the ground. I love it.

[Ann Mallom]

Well, let me give you another quick example of that because it'll help people. Scott. Like for me, I also if you're a founder, right, every six months you have to be looking at how you're spending your time. And if it's the same as it was six months ago, you're in trouble from a scaling perspective. And so at. When I first started software, I was coaching all the time, right? Cause I had one studio that made sense. But when I had five, right? A coaching a class was costing me, call it back then, 60, 70 bucks per coach. If I'm going to be coaching 20 classes a week, I am telling my team that my value to this company is worth 60 bucks an hour. That can't be the job of a CEO. So I started to figure out what's the best way for me to make the most financial impact for the business based on my skillsets. And that was negotiation with the landlords, right? How do I get the best deal on this 10 year lease that I'm going to sign, how do I get tenant improvement dollars and how do I get rent abatement? Because those were two things that were going to affect my cash flow a lot. So I would meet in person with every landlord. I would make you like me, I would get you to root for me. I would explain why I need this rent abatement and ask what's important to you for this deal. And if I couldn't do the deal, I would say, listen, those economics don't work for me, here's why. But I would build relationships with anybody where the financial impact to the company was massive. That's the best use of my time. And then it would just continue to elevate.

[Scott]

So what was the, what was the. So yes, a thousand percent in hindsight looking back is 2020. And that makes perfect sense now when you, when you, what was the thing that happened to you in, in, in your life that made you realize that you have to step out of like the day to day. What was the story that, that forced you or the thing that was breaking or the shit hitting the fan moment or the I can't scale anymore, I'm working a hundred hours a week.

[Ann Mallom]

I think it was that back on my feet when I was continuing to run with all the groups and still running, still running, you know, and like, those runs take place at 5:30 in the morning and like, I'm trying to be at all the social events and do everything else. And at some point I'm like, I just can't do this, do this all. So I have to figure out who, what can I replicate and again, go back to solid core. The coaches I can replicate, right. If I'm the only one that can coach a solid core class, that's a problem. I can't scale that. I didn't think that was true. Right. I knew we could coach coaches and coach trainers, right? But, like, what is the thing that Ann Mallom can do that that nobody else can do? And it is. I'm very convincing and I'm a great negotiator, so I'm going to spend my time doing those things. There really was not like a. A shit, a shit hits the fan moment, but there was moments when I was micromanaging, right? When I was like, trying to be involved in everything. And then you get feedback from your staff on like, how much of a pain in the ass you are, and it comes across that you don't trust them when really you care so much and you want to be involved in everything. But if you want to, you can't have both. You can't want to be involved in everything and want to scale something really big. So you have to do your best to train people to talk about culture, to talk about decision making. And another great tool I learned from a back of my feet board member was this thing called yellow or, sorry, red. Yellow and green. And it's how they trained their staff at Accenture, so they would create a things. Like, if you were a manager at a solid core studio, Scott, we would say, here's your red, yellow and green. The things in the red, you. You don't have authority to make decisions on. Right. Like, you can't change the pricing for the studio. You can't do this and this and this. Here are the things that are in the green that not just you have agency to do, but, like, we need you to feel comfortable doing that. Oh, right. You need to manage the schedule, you need to drive the revenue. Here's your budget, here's your goals. You need to be able to, like, manage this and not come to us at the end of the month and say, like, well, we didn't meet our numbers. Like, that's not going to fly. So I found that it actually makes the relationship between the manager and the one that they're managing a lot better. When expectations are clear, you understand the sandbox you're playing in. You understand the agency that you have to make decisions, and you understand why you can't make decisions. Not just because I said so, but I explained them to you of like why we can't have different pricing at this studio versus studio four blocks down the road.

[Scott]

Thanks for tuning in. If you found this valuable, don't forget to hit that subscribe button so you never miss an episode. And if you want to dive deeper into this conversation, check out the links in the description to watch the full episode. See you in the next one. RA.