GETTING THERE:CREATING A STRATEGIC ROADMAP TO THE FUTUREKansas Health Foundation

Grant Recognition Conference

April 9, 2015

Presented by:

Lynne BrownVP Strategic ConsultingiBossWell, Inc.

Agenda for the Day• The philosophy of growth and

change• An overview of research tools to

inform the planning process• A review of best practices in

nonprofit strategic planning• Defining an effective plan

structure• Writing quality performance

measures• Building a culture of assessment

Why Plan?

“When it comes to the future, there are three kinds of people: those who let it happen, those who make it happen, and those who wonder, what happened?”

John M. Richardson, Jr.

SUCCESSFUL PRACTICES IN STRATEGIC PLANNINGASP Survey of Successful Strategic Planning Practices in the Nonprofit Sector

RESEARCHSuccessful organizations conduct research prior to the planning process

Getting Out of Our Own Heads

• Staff• Board• Stakeholders

• Funders• Partners

• Constituents• Twitter/LinkedIn, Facebook

• Journals/Conferences

PEST ANALYSISPolitical, Economic, Social and Technological

• criteria examples •  • ecological/environmental current legislation • future legislation • international legislation • regulatory bodies and processes • government policies • government term and change • trading policies • funding, grants and initiatives • home market pressure- groups • international pressure- groups • wars and conflicts •  •  •  •  • political• economic

• criteria examples•  

• home economycriteria examples •  • ecological/environmental current legislation • future legislation • international legislation • regulatory bodies and processes • government policies • government term and change • trading policies • funding, grants and initiatives • home market pressure- groups • international pressure- groups • wars and conflicts •  •  •  •  • political• economic

• criteria examples•  

• home economy • economy trends• overseas economies • general taxation • taxation specific to product/services• seasonality issues• market/trade cycles• specific industry factors• market routes trends• distribution trends• customer/end-user drivers• interest/ exchange rates• international trade and monetary issues•  •  •  •  •  •  •  •  

PROGRAM ASSESSMENTMacMillan Matrix and Matrix Mapping

Program Assessment: Why

Guides organizations in:• Assessing their programs against trends of increasing

demand for smaller resources • Gaining greater focus • Avoiding duplication of services• Exploring and increasing opportunities for collaboration• Determining prioritization and divestiture of programs• Advancing organizational sustainability through

comparative view of mission-impact: financial sustainability ratio

• Apples-to-apples comparison to guide objective discussion

Two Approaches• MacMillan MatrixMacMillan Matrix

• Developed by I.C. MacMillan, “Competitive Strategies for Not-for-Developed by I.C. MacMillan, “Competitive Strategies for Not-for-Profit Agencies,Profit Agencies, Advances in Strategic Management 1 (London, JAI Advances in Strategic Management 1 (London, JAI Press, Inc., 1983): 61-82Press, Inc., 1983): 61-82

• The Matrix MapThe Matrix Map• Developed by: Jeanne Bell, Jan Masaoka, Steve ZimmermanDeveloped by: Jeanne Bell, Jan Masaoka, Steve Zimmerman

Nonprofit Sustainability: Making Strategic Decisions for Financial Nonprofit Sustainability: Making Strategic Decisions for Financial Viability. Jossey-Bass, San Francisco. 2010Viability. Jossey-Bass, San Francisco. 2010

MacMillan Matrix Program Assessment: HowAssess each current or prospective program based upon

four key criteria: Fit/Alignment with MissionFit is the degree to which a program “belongs” or fits within an organization. 

Program Strength – (Competitive Position )Degree to which program has a strong capability; delivers outcomes

Alternative Provider(s) - (Alternative Coverage)Number of other organizations attempting to/delivering similar program in same region to similar constituents

Program Resource AttractivenessDegree to which program is attractive to the organization from an economic perspective, as an investment of current/future resources. How easily it attracts resources.

Based on response of the 4 bottom-line questions for A thru D, Plot the program on the Matrix

MacMillan MatrixMacMillan Matrix D.HIGH PROGRAM RESOURCE D.HIGH PROGRAM RESOURCE ATTRACTIVENESS:ATTRACTIVENESS:

““EasyEasy”” Program Program

D.LOW PROGRAM RESOURCED.LOW PROGRAM RESOURCEATTRACTIVENESS:ATTRACTIVENESS:““DifficultDifficult”” Program Program

C.AlternativeC.AlternativeProviderProvider

HighHigh

C.AlternativeC.AlternativeProviderProvider

LowLow

C.AlternativeC.AlternativeProviderProvider

HighHigh

C.AlternativeC.AlternativeProviderProvider

LowLow

A. GOOD FITA. GOOD FITWith MissionWith Mission

& Abilities& Abilities

B. StrongB. StrongProgramProgramStrengthStrength

1. 1. CompeteCompete aggressivelyaggressively

2.2.Grow Grow AggressivelyAggressively

5. 5. Support theSupport theBest CompetitorBest Competitor

6.6.““Soul of theSoul of theOrganizationOrganization””

B. WeakB. WeakProgramProgramStrengthStrength

3.3.Divest Divest aggressivelyaggressively

4.4.Build strength Build strength

ororGet OutGet Out

7.7.Divest Divest SystematicallySystematically

8.8.WorkWorkcollaborativelycollaboratively

A. POOR FITA. POOR FITWith MissionWith Mission

& Abilities& Abilities

9. Aggressive 9. Aggressive DivestmentDivestment

10. Orderly 10. Orderly DivestmentDivestment

11 Aggressive 11 Aggressive DivestmentDivestment

12 Orderly 12 Orderly DivestmentDivestment

The Matrix Map: Assuring Impact & Financial Sustainability

Purpose and Structure of the Matrix Map: •What are our core business lines—the dual bottom line

--How do we determine--How do we determine ProfitabilityProfitability

--How do we determine relative --How do we determine relative Impact Impact of our programs & efforts of our programs & efforts

Basic Approach for Matrix Map1. Identify your "lines of business" or activities, programs,

services2. Determine profitability

• Determining Full Costs/Expenses:• Direct costs

• Share of common or shared costs• Rent, technology, insurance, supplies, etc.

• Share of full administrative costs• FTEs• Some gov. grants limit the overhead

3. Determine types of revenue• Earned Income• Contributed Income

4. Assess relative mission Impact5. Map the results

Mission Impact Criteria (Rated: 1=low impact – 4=very high impact)

1. Alignment with core mission: How closely does this program align with our core goals? Some programs may be excellent, but not as central to our mission.

2. Excellence in execution: How good are we at delivering this program? Do we have the skills/resources to implement with excellence?

3. Scale: How many people does the program/business line affect?4. Depth: How deep an intervention or contact does the program

provide? Can we measure that?5. Building community or constituency: How does this program

contribute to building/advancing the greater good? For example, connection to the Latino community or strengthening a neighborhood (not just the organization)?

6. Fills an Important Gap (FIG): If the program were to go away, would our constituents be able to go across the street to another agency or would they have nowhere to go?

7. Leverage: refers to the degree to which the program increases impact of other programs; e.g. the demand/funding in a field is increasing rapidly; when audiences of one program carry over to other programs; or when a program has marquee value by giving the organization higher visibility and helping with the entire organization’s branding.

Mapping the Matrix

CREATING THE PLANHigher performing organizations engage in strategic planning as a routine, periodic process

It starts with a vision…

• Why do we do what we do? What’s our cause? Vision/Mission?

• How do we do that? Big picture strategies and intentions.

• What are we going to do to make it happen? What tactics will we employ?

*adapted from Sinek’s Golden Circle

Strategic Planning – Structure* & Focus Vision/Mission

1. Strategic Initiative 2. Strategic Initiative 3. Strategic Initiative

2.1. GoalFocus: Strategic

2.2. Goal Goal Goal

2.2.1. ObjectiveFocus: Tactical

2.2.2. Objective Objective

Action Action2.2.2.1. Action

“KPM” Key Performance

Measures /Outcomes

Accountabilities: Responsible Party, Dates, Resources

with

Individual Actions

Individual Actions

Individual Actions

Individual Actions *Nomenclature can be customized

Focus: Individual Performance Individual actions tie to Plan Goals

Values Overarching KPMs/Outcomes

Environmental/ Needs Assessment & SWOT to inform

Example

• Strategic Initiative 1: Programs & Services

Provide high quality services and supports that are innovative and responsive to changing community needs and that promote individual choice and an enhanced quality of life consistent with XYZ values, mission and resources.

• Goal 1.1: Quality Assurance/Outcomes Program:

Quality Assurance/Outcomes Program: Develop, implement and maintain a quality improvement and outcomes measurement program and process.

• Objective 1.1.1: Address Service Capacity Issues:

Develop and maintain a process by which we address our service capacity issues and needs, including attendance, interest lists, projected capacity.

• Action 1.1.1.1: Measure Service Capacity:

A weekly report will be made to the program management teams.

Build in Accountability

• Assign Primary & Secondary Responsible Parties• Drive plan implementation to

every level of the organization • No man, or woman, is an

island.

• Assign Timeframes• Establish priorities

• Consider additional resources required

MEASURING SUCCESSHigher-performing organizations have an explicit focus on measuring success.

Performance Measurement• “The board, management, and staff take on the challenge of

collecting and using information, not because it’s a good marketing tool, and not because a funder said they have to. They believe it is integral to ensuring material, measurable, and sustainable good for the people or causes they serve.”

• Management and staff make the collection, analysis, and use of data part of the organization’s DNA. They ensure that people throughout the organization understand the key metrics.

• Leaders draw a clear distinction between outputs (e.g., meals

delivered, youth tutored) and outcomes (meaningful changes in knowledge, skills, behavior, or status)

From the Performance Imperative, A Framework for Social-Sector Excellence, February 2015

Evidence of Success:An Important Continuum and Distinction

Activities Outcomes Impact

•How do you identify measures of success, while avoiding analysis paralysis?•Impact vs Outcomes vs Activities – What’s really important?

• What do your stakeholders care about? • And what really matters at the end of the day?

onto on to

Examples for a Local Health Department

Goal: Decrease incidence of diseases preventable through immunization.•Activities: Increase in number of immunization clinics offered monthly.•Outcomes: Increase by five percent annually the number of children receiving AAP recommended immunizations.•Impact: By 2020, no cases of immunization preventable diseases reported in county.

How to handle all three elements in your plan

• Activities: are the “Action” needed to reach Outcomes/Impact • Document in the tactical section of plan (implementation)

• Outcomes: are evidence of success, sometimes the desired endpoint• Document in Goal related Key Performance Measure/Success

Measure section of plan

• Impact: highest level of evidence that you are meeting your Mission/Goal• Document in Overarching Key Performance Measure or Goal Key

Performance Measure/Success Measure section of plan

THE SECRET TO SUCCESS…Higher performing organizations are committed to a regular schedule of plan assessment and reporting

"Vision without execution is hallucination"

Thomas Edison

The Philosophy of Implementation & Assessment: Continuous Improvement

Build a Culture of Implementation

• Make plan assessment a habit: Establish a calendar for assessment • How often to assess?• Who needs to see results

and when?

• Align board committees with plan initiatives

Assessment Practices

• Assess from the bottom, up

• Clearly define staff/board roles and responsibilities in the assessment process• Who assesses at what

level?• Typically:

• Staff/board committees at Tactical Level

• Staff leadership/board at Goal/Metric level

• Sharing the reports• Establish P&Ps on how

plan changes will be suggested/approved

WePlanWellTM

Plan Assessment & Scorecard

Honest, Open,

Thoughtful and Fair

Discussion

“Greatness is not a function of circumstance.

Greatness, it turns out, is largely a matter of conscious choice, and discipline.”

Jim CollinsGood to Great in the Social Sector

Copyright iBossWell, Inc. 2006

For additional informationand/or Copyright Use Permission

Contact:Lynne BrownVP Strategic ConsultingiBossWell, Inc.5600 W. 95th Street, Suite 108Overland Park, KS 66207Lbrown@iBOSSWELL.com913-642-1416www.ibosswell.com

This presentation is copyright of iBossWell, Inc. 2015. All rights reserved.