Servant Leadership and 3 Other Lessons Learned for Achieving Operational Excellence from First Children’s Finance

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Last week I had the honor of attending a retirement party for Jerry Cutts, the CEO who founded First Children’s Finance (FCF), a non-profit organization he started 33 1/3 years ago.

As I observed people’s interactions with Jerry and listened to the stories that people shared about him, it dawned on me that he epitomizes the qualities of a well-rounded, stable leader who knows how to get results without leaving a path of destruction.

We often hear or read about leadership and management strategies to better ourselves, but to see them in practice is, frankly, magical and extraordinary. As someone who regularly studies, practices, and advises on what it takes to scale an organization's operations, it’s always a treat to get a front-row seat to observe it in action.

In the two years I’ve known Jerry, here are four lessons I’ve learned from him that made FCF’s growth and scale possible.

1 - Vision

In 1991, Jerry Cutts had a grand and unique vision – to create a mission-focused and solutions-based organization that combined:

• Childcare: investing in early childhood development
• Economics: increasing the supply side of childcare business owners
• Finance: providing capital to childcare business owners

This concept behind this trifecta was bold and radical, and, 33  years later, FCF remains the “…only national organization focused exclusively on a sustainable child care supply.

“We increase the sustainability of child care businesses by engaging entrepreneurs, communities, and state and federal systems to address the business and finance needs of child care businesses.”  Source: FirstChildrensFinance.org

Learn more about FCF’s mission and vision.

2 - Servant Leadership

A servant leader exhibits traits like unconditional empathy, active listening, keen awareness, continuous stewardship, and a profound commitment to other’s growth. Unlike traditional leaders who tend to hyperfocus on their career advancement and thrive in a hierarchical structure; servant leaders like Jerry instead focus on adding value to their teams and the customers they serve.

Sadly, some may criticize and wrongfully doubt a servant leader’s ability to grow and scale an organization. However, Jerry is living proof that it is possible. There’s something to be said for folks who can galvanize a team to take action and achieve remarkable feats without fear, threats, intimidation, and narcissism.  

3 - Mission-Focused A-Team

“We’re a nonprofit CDFI that lends capital exclusively to child care businesses.”  Source: FirstChildrensFinance.org

Under the U.S. Department of the Treasury, a Community Development Financial Institution, or CDFI, is a fund that invests “…federal dollars alongside private sector capital…” to serve “…mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities.”

With a vision to increase the supply of child care businesses, FCF also has the fiscal responsibility to issue loans based on certain criteria. This balance of finance, economics, and mission-driven operations requires having a knack for spotting talent that understands the macro and micro impact that FCF can have in the communities it directly serves and, on the economies at large.

Consider FCF’s stats from Fiscal Year 2024:

• 3,367 small business clients served
• 5,743 new child care slots created by small business and loan clients served
• 254 trainings provided
• 5,060 hours of consultation provided

FCF is managed by a group of incredible, dedicated executives with deep experience and expertise in their respective fields. FCF is governed by a board that comprises experts in government funding, education, operations, finance, and banking.

4 – Process Driven Operations  

Don’t let FCF’s non-profit status fool you. Increasing the supply of child care business requires money. When Jerry personally found and reached out to me on LinkedIn, he shared his concern of fast, unmanageable growth. This is something he correctly perceived would become a problem not only for FCF but for their small business clients and their operations as well.

Since joining the board of FCF, it’s been refreshing to have conversations with so many of their employees who openly embrace the need for the elements of business infrastructure – competent people, streamlined processes, and integrated technologies. So many executives are slanted towards sales and marketing at the expense of operations.

Leading by Example    

Jerry isn’t one for the spotlight. His actions speak louder than words. During his 33 years as CEO, he’s written 200 letters to the Board of Directors. Under his leadership, FCF grew from a few people in Minnesota to nearly 90 people across the U.S. with five regional offices.

He’s created an organizational culture that recognizes the value of business infrastructure, operational excellence, and continuous process improvement. This foundation paves the way for the next CEO’s success and will support FCF’s future growth.  Kudos to Jerry and the entire team at FCF!

With all their successes, the best is yet to come. I encourage you to follow Jerry here on LinkedIn to watch his next career moves. One thing is for sure, it will be groundbreaking. Take advantage of an opportunity to interact with a business legend. Treat him to a virtual coffee, interview him, or simply congratulate him on a job well done.

Here’s to you, Jerry!

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About the Author

Alicia Butler Pierre is the Founder & CEO of Equilibria, Inc. – an operations management firm specializing in increasing enterprise value for fast-growing small businesses. She’s a TEDx speaker, software inventor, two-time Amazon bestselling author, and producer of a top 2% podcast.

Alicia is an adjunct instructor of Lean Principles at Purdue University. She also serves on the boards of two education-focused organizations and is the USA Chair of the G100’s Micro, Small, and Medium Enterprises. The Process Excellence Network recognized her as a Global Top 50 Thought Leader in Operational Excellence. A chemical engineer turned entrepreneur, she’s designed and optimized processes for small businesses, large enterprises, non-profits, and government organizations alike.