Mission & Profitability

1. Mission & Profitability A Model for Sustainability

2. Brent Wilcoxson, Business DirectorBram Roberts, Program Director Grand Rapids Kroc Center

5. This is Your Department Only so much mission Only so much money

6. Dual Bottom Line: Mission Impact and Financial Responsibility

7. Example

8. Theory behind the Matrix Map model How to develop and use the model Case study Review of the Grand Rapids Kroc Center. Our Agenda

9. Better understanding of the relationship between mission and profitability through the introduction of the Matrix Map tool. Ability to develop strategies for increased financial security and enhanced program alignment with the Kroc Center’s mission. Delegates will be equipped with knowledge and worksheets of how they can develop a matrix map at their Kroc Center Session Outcomes

10. Identify all business lines Assess Relative Impact Determine Profitability Map the Results Matrix Maps Steps

11. Identifying Business Lines

12. What’s Important…. • Size • Focus • Feedback/Recognition

13. Potential Business Lines to Review • Recreation & Sports Programming • Parks • Aquatics • Day Camp • Fine Arts • Rentals • Fitness • Golf Course • Ice Arena • Membership • Food Service • After School Programming • Senior Programming • Millage • City allocations • Skate Park

14. Functional vs. Financial Data Limitations Potential Problems

15. Impact Scores Y Axis Assessing Impact Impact

16. Determining Impact

17. Determining Impact • Why are we doing what we are doing? • Who are we targeting? Who do we hope to impact? • Who are we trying to impact? What will success look like? • There is an importance of understanding and having a defined meaning and collective understanding when we say a program is ‘missional’.

18. Developing An Internal Impact Statement • An impact statement is… “a statement or series of statements about what the organization is trying to achieve and will hold itself accountable ……” (The Bridgespan Group, 2015).

19. Impact Statement vs. Mission Statement Mission Statement • Broad statements about the overall work and purpose of the organization. More aspirational in character. Impact Statement • Specific and clear • Includes the desired outcomes that the organization wants to accomplish. • Helps you identify the proof that your nonprofit is accomplishing its mission. • Answers, why do we exist? • Impact is what matters. It’s how you know you are achieving something.

20. Main Ingredients • Who benefits ?(the target) • What are the benefits? (how will they change?) • How will it be done?

21. A good impact statement will… • Provide direction for your department • Staff training • Program Development • Customer Service • Give specific areas for you to measure how well you are doing. Help you know if you are meeting the departments objective. • Hold yourself accountable

22. Department Impact Statement Program Department The program department provides opportunities for members, guests and residents of the SE Grand Rapids community to enhance and develop new skills, improve wellness, inspire creativity, and grow spiritually through quality programming, fun activities and memorable special events. Aquatics: To provide people of all ages and backgrounds with the opportunity to learn how to swim, improve health, increase knowledge of water safety, provide lifesaving skills and share the love of water in a welcoming environment. Fitness: The fitness department exists to empower, educate and improve both member and the community wellness through group exercise, personal training, programs and positive member engagement. Day Camp: Provide children of all ability levels ages 5-17 the opportunity to grow spiritually through bible lessons and worship, physically through active sports and games and emotionally through structured group activities that aid in developing socialization and enhancing self-confidence in a positive and safe environment.

23. Department Impact Statement Program Department The program department provides opportunities for members, guests and residents of the SE Grand Rapids community to enhance and develop new skills, improve wellness, inspire creativity, and grow spiritually through quality programming, fun activities and memorable special events. Aquatics: To provide people of all ages and backgrounds with the opportunity to learn how to swim, improve health, increase knowledge of water safety, provide lifesaving skills and share the love of water in a welcoming environment. Fitness: The fitness department exists to empower, educate and improve both member and the community wellness through group exercise, personal training, programs and positive member engagement. Day Camp: Provide children of all ability levels ages 5-17 the opportunity to grow spiritually through bible lessons and worship, physically through active sports and games and emotionally through structured group activities that aid in developing socialization and enhancing self-confidence in a positive and safe environment.

24. Department Impact Statement Seniors: To be a welcoming environment for adults ages 55 and older providing opportunities to improve physical fitness, educate on influential topics, fellowship in a positive atmosphere, and inspire through expressive and creative arts in an effort to increase longevity and quality of life for a population of aging adults. Education: The education department provides unique, high quality educational opportunities to underserved populations and supports the academic, social, and emotional needs of at-risk children. Fine Arts: Inspiring an appreciation for fine art by providing people of all ages the opportunity to develop and enhance creative expression through 2D and 3D visual art classes as well as empowerment through performing arts education in an inclusive and encouraging environment. Recreation & Sports: The Grand Rapids Kroc Center Sports and Recreation department exists to provide all members and guests the opportunity to develop skills, enhance athletic ability, improve physical fitness, and create and grow friendships through sports and friendly competition.

25. Contribution to Intended Impact Excellence in Execution Scale or Volume Depth Significant Unmet Need Community Building Leverage Impact Criteria

26. Contribution to Intended Impact • How well are we achieving the stated impact of the organization/business line? • Do we have evidence of this?

27. Offered in an outstanding, superior way Programs executed in an amazing way Sources Program evaluation data Feedback Observation Staff performance evaluations Staff turnover and exit interviews Excellence in Execution

28. Scale or Volume • Does it reach a large number of people? • Population groups or communities reached. • Sources • Programs sold or completed • Utilization records

29. Does program have a high impact on the people involved? Sources Logical models and theories of change that articulate specific desired impacts and how the program generate them. Program evaluation data Observations Depth

30. Significant Unmet Need • Competition and other providers • Being sole provider does not mean a high score.

31. Does it help build the community around the center? Is community engaged in delivery of the program? Does it offer a level of inclusion to an often isolated group or population? Community Building

32. Leverage • How does one program or business line increase the impact of other programs/business lines? • One particular program strengthens the organization’s standing and ability to raise funds for other programs. Gives organization high and positive visibility and branding • Creates tools or audiences that enable other programs to be effective

33. Rating System • Each program and business line • 1 to 4 rating system • Not much impact • Some impact • Very strong impact • Exceptional impact • Scoring individual vs. team approach

34. Mission Impact Scores

35. Revenue vs. Expense X Axis Determining Profitability Profitability

36. Revenue allocation received from membership Expenses from areas tied to membership such as: Open Swim Drop-In Fitness Classes Open Gym Child Watch Overhead Expenses Administrative Expenses (including manager’s salaries) Things to consider…..

37. Finances

38. Mapping Results

40. Reading Your Map

41. The Star Quadrant Invest and Grow

42. The Heart Quadrant Keep and contain costs

43. The Money Tree Quadrant Water and Harvest, Increase Impact

44. The Stop Quadrant Close or Give Away

46. Case Study: Grand Rapids Kroc Center

47. Five Years – What should we be doing? Define business lines to review Managers/Directors present Went through the matrix mapping process and examined results Had managers drill down and map their areas Developed suitability strategies to guide the department Case Study: Grand Rapids Kroc Center

49. Business Model Statement The Grand Rapids Kroc Center engages the community in aquatics, health & wellness, day camp and recreation programs through program service fees, while our congregational life , education programs and facility operations are supported through membership dues, program revenue and endowment funds.