1 the macmillan matrix a tool for program analysis presentation to the ywca mid-atlantic region sms...
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The MacMillan Matrix A Tool for Program Analysis
Presentation to the
YWCA Mid-Atlantic Region
SMS and Associates
Shelly M. Schnupp
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Why Program Analysis?
Greater demand for accountability More competition….for funding and
customers Changing needs, evolving
environments
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…Nonprofits are Responding
Refocusing on mission Competing where appropriate Avoiding duplication Maximizing strengths Increasing partnerships and
collaborations
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The MacMillan Matrix
Developed by Ian MacMillan Designed to help nonprofits assess
their programs for sustainability, especially in light of scarce resources
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Guiding Principles
Unnecessary duplication fragments limited resources; weakens providers, decreases quality
Greater focus, instead of being all things to all people, can result in higher quality
Increasing demand for resources requires change in approaches
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Key Questions MM Helps Nonprofits Answer
How well does our program portfolio fit with our mission and vision?
Are we the best organization to provide this service?
What is the competitive strength of each of our programs?
Are we engaged in any services which, if eliminated, would cause consumers irreplaceable loss?
Are we spreading ourselves too thin, without the capacity to sustain ourselves?
Should we work cooperatively with another organization to provide services?
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Matrix Criteria
1. Fit
2. Economic Attractiveness
3. Alternate Coverage
4. Competitive Position
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1. Fit -- degree to which a program
"belongs" or fits within an organization (Good or Poor)
Congruence with mission/purpose vision?
Organization has existing skills and competencies?
Able to share resources and coordinate activities with other programs?
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2. Economic Attractiveness— revenue availability (High or Low)
Current stable funding? High appeal to funders,
supporters? High market demand? Measurable, reportable
outcomes/results?
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3. Alternate Coverage competition (High or Low)
Are similar services provided? Do customers have many other
choices? Competitors now and future?
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4. Competitive Position stronger capability and potential to deliver the service
than current or emerging competitors (Strong or Weak)
Good location, logistical delivery system?
Will customers remain? Grow?
Is quality superior? Record of securing
grants, funding?
Stable staffing? Ability to maintain and
continually increase competency?
Cost effective? Strong connections
with consumers and stakeholders?
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Program Analysis Steps
1. Preparation
2. Implementation
3. Analysis
4. Action
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Step 1. PreparationAssemble analysis team
StaffBoard
Assemble Program ProfilesIdentify additional data
Mission, VisionStrategic Plan
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Program Profile Program purpose and
history Customer Profile—who is
targeted, served, trends, challenges
Primary program activities
Outcomes--customer and other
Funding—sources, trends, issues
Staffing—requirements, status and issues
Competition—others currently providing or planning to provide the same or similar services
Factors that distinguish this program from similar or other efforts
Other groups/ organizations the program does or should interact with and how
Other special Issues both positive and negative
See Program Profile Format and Example
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1. Find a partner to work with. 2. Identify a program.3. Complete a Program Profile using
Worksheet 1.4. See example program profile in
handouts packet p. 4
Exercise 1
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Step 2. Implementation Present, review program data Classify each program according to 4 criteria
Alone, silentlyDiscuss, reach group consensusNote classifications on worksheet
Place programs on matrix Review results
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MacMillan Matrix Worksheet
Program Fit Economic Attractiveness
Alternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Child Tutoring
Racial Justice
Job Training
Women’s Leader-ship
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MacMillan MatrixHigh Economic Attractiveness(Easy to attract resources for support)
Low Econonic Attractiveness(Difficult to attract resources for
support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly Divestment POOR FIT
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MacMillan Matrix Worksheet
Program Fit Economic Attractiveness
Alternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Child Tutoring
X X X X
Racial Justice
Job Training
Women’s Leader-ship
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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)
Low Econ. Attractiveness(Difficult to attract resources for
support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly DivestmentCHILD TUTORING
POOR FIT
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Cell 10. Orderly Divestment.
This program is both unattractive and a poor fit. However, it is desirable to eliminate these services gradually and if at all possible without harm to consumers.
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MacMillan Matrix Worksheet
Program Fit Economic Attractiveness
Alternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Child Tutoring
X X X X
Racial Justice
X X X X
Job Training
Women’s Leader-ship
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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)
Low Econ. Attractiveness(Difficult to attract resources for
support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”RACIAL JUSTICE
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly Divestment POOR FIT
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Cell 6. Soul of the Agency.
Do not have easy access to resources on their own
Agency is committed to delivering even at the cost of subsidizing with resources from other programs
Makes special or unique contribution to customers and mission
No organization can afford to support an unlimited number of "soul" programs
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MacMillan Matrix Worksheet
Program Fit Economic Attractiveness
Alternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Child Tutoring
X X X X
Racial Justice
X X X X
Job Training
X X X X
Women’s Leader-ship
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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)
Low Econ. Attractiveness(Difficult to attract resources for
support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or DivestJOB TRAINING
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly Divestment POOR FIT
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Cell 4. Invest, Find Partner, or Divest. Worthwhile investment when resources available
for improving its competitive position -- after programs in Cell 1 have been taking care of.
If investment resources do not exist, become candidates for finding a partner.
There is opportunity here due to the availability of resources and low competition that could be pursued with a strategic partner.
If neither alternative works out, abandon the programming -- it is unlikely to assume a competitive position on its own.
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MacMillan Matrix Worksheet
Program Fit Economic Attractiveness
Alternate Coverage
Competitive Position
Good Poor High Low High Low Strong Weak
Child Tutoring
X X X X
Racial Justice
X X X X
Job Training
X X X X
Women’s Leader-ship
X X X X
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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)
Low Econ. Attractiveness(Difficult to attract resources
for support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive GrowthWOMEN’S LEADERSHIP
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly Divestment POOR FIT
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Cell 2. Aggressive Growth. There are substantial resources, plentiful
consumers, and few competitors High priority for attention as the
organization given significant opportunity to build market share.
As others recognize the organization's success, the competition will increase -- so timely investment in growth is imperative.
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1. Resume work with previous partner.2. Refer to program profile completed in Exercise 1.
(Worksheet 1).4. Apply the 4 MacMillan Criteria to the program.
• Use criteria definitions (Handouts packet p. 5).• Note the program ratings on Worksheet 2.
5. Place the program in the appropriate cell on the MacMillan Matrix.• See Applying Results (Handouts packet p. 7).
6. Find the cell definition that corresponds with the Matrix Cell. (Handouts packet p. 9). • Discuss the results.
Exercise 2
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Step 3. Analyze Results Implications for Individual Programs? What does our Program Portfolio Look
Like? What are the implications for the future?
For organizational sustainability?
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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)
Low Econ. Attractiveness(Difficult to attract resources for
support)
Alternate Coverage
HIGH
Alternate Coverage
LOW
Alternate Coverage
HIGH
Alternate Coverage
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive GrowthWOMEN’S LEADERSHIP
5. Reinforce Best Competitor or Find Partner
6. “Soul of the Agency”RACIAL JUSTICE
GOOD FIT
Weak Competitive Position
3. Aggressive Divestment
4. Invest, Find Partner or Divest JOB TRAINING
7. Consider Partner or Divest
8. Find Partner or Divest
9. Aggressive Divestment 10. Orderly DivestmentCHILD TUTORING
POOR FIT
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1.See sample Program Rating Worksheet for Association X.
2.Place rated programs on the MacMillan Matrix.3.Discuss results.
• What are the implications for organizational sustainability?
• What next steps should be considered by Association X?
Exercise 3
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4. Take ActionDevelop plan for implementing
results Implement PlanUse results in strategic planning
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Program Analysis Applications
Generate data for strategic planning Check on “hunches” or assumptions Analyze programs against new vision,
strategic plan Develop new programs
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Program Analysis Benefits
Increase understanding Develop consensus Encourage objectivity Build organizational capacity
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Tips for Engaging in Program Analysis
Base analysis on data; develop “program profiles”
Challenge assumptions Use a facilitator—especially for existing
programs Avoid second guessing results Document issues that surface Develop a plan and act on it!