Leading with Innovation, Learning from Failure

1. Leading with Innovation,Learning from Failure The Corps Network 2014 National Conference February 11, 2014 The Corps Network 2014 National Conference

2. Introduction Presenters: Wendy Butts – Los Angeles Conservation Corps Dan Knapp – Los Angeles Conservation Corps Jeff Parker – Northwest Youth Corps The Corps Network 2014 National Conference

3. LA Conservation Corps Mission: LA Corps’ primary mission is to provide at-risk young adults and school-aged youth with opportunities for success through job skills training, education and work experience with an emphasis on conservation and service projects that benefit the community. • 400 18- to 24-year-old Young Adult Corps corpsmembers who receive on-the-job training, paid work experience and attend our charter school site to complete their high school education • 500 14- to 17-year old corpsmembers who perform paid community beautification work in Clean & Green • 250 14- to 18-year-old students enrolled in two full-time charter high school sites (operated by The Education Corps) • 6,000 elementary and middle school students (ages 10 to 14) from 16 LAUSD schools who participate in after school enrichment activities and receive tutoring services in our After School Program The Corps Network 2014 National Conference

4. Northwest Youth Corps Mission: To help youth and young adults learn, grow, and experience success. • Work in 5-state area • 800 16- to 19-year-old participants • 150 18- to 24-year-old participants • 60 full-time high school students • Residential and non-residential formats The Corps Network 2014 National Conference

5. Introduction Workshop outline: Discuss the drivers of innovation Discuss the potential risks of innovation Case Study Analysis Lessons Learned Share risk reduction and analytical tools The Corps Network 2014 National Conference

6. What Drives Innovation in the Corps Industry? Diversify Funding Streams Increase Participant Outcomes/Services Integrate Operations Particular Staff Expertise and/or Passion Opportunity Other? The Corps Network 2014 National Conference

7. What is the Risk of Failure? Financial shortfall Unmet participant outcomes Mission drift Harm to brand Bad public relations Other? The Corps Network 2014 National Conference

8. What is Your Organizational Risk Tolerance Level? Risk Tolerance Spectrum Staff Board Participants Other Stakeholders Difference between “need to” and “want to” Size of the opportunity Organizational culture Organizational experience – positive and negative The Corps Network 2014 National Conference

9. Case Study: Los Angeles Conservation Corps’Weatherization Program Challenges and Lessons Learned The Corps Network 2014 National Conference

10. The Program Design • Long Beach Community Action Partnership • Los Angeles Conservation Corps Network • LA Conservation Corps – lead • Long Beach Conservation Corps • San Gabriel Valley Conservation Corps • California Conservation Corps The Corps Network 2014 National Conference

11. Wx Program Organizational Chart The Corps Network 2014 National Conference

12. Benefits for LA Conservation Corps • Good platform for on-the-job training for corpsmembers • Mechanism for accessing and capitalizing on the influx of ARRA funding • Good source of contract funding with a sustainable infrastructure for growth • Potential profit-generating social enterprise project The Corps Network 2014 National Conference

13. What We Knew/Didn’t Know in Planning Phase • Cash flow was going to be an issue • Partnership lacked key expertise/was co-dependent • Staff training was extensive and time-consuming • CSD was bogged down with ARRA-funded projects and couldn’t provided needed support • Not enough skilled professionals were available • LBCAP would choose to inspect all homes at 100% • Collaboration with LBCAP would be difficult The Corps Network 2014 National Conference

14. A Problematic Implementation • Multiple trips to homes meant low or no profit-margin • Billing cycle was too short; LACCN missed opportunity to bill for services provided • Higher than expected standard of work quality created issues The Corps Network 2014 National Conference

15. The Intervention • Harsh financial realities • Requests for reimbursement/ programmatic changes unaddressed • Analysis/realistic expectations/forecasting The Corps Network 2014 National Conference

16. The Final 18 Months Measurable losses + Questionable management changes + Issues with financial reporting = Unsuccessful program The Corps Network 2014 National Conference

17. What We Didn’t Know/Should Have Done (in Retrospect) • Relationship with partner difficult to manage • 6- to 8-year recovery of start-up costs • Depleted human capital/low skills levels of staff • Ensured conflict resolution process at start • Delineated clear expectations at start • Created exit plan during Planning & Design • Better plan for contingencies • Build in checks & balances/better reporting to stakeholders • Reported on finances throughout implementation The Corps Network 2014 National Conference

18. Primary Causes of Failure • Lack of control of primary functions, inc. marketing • Lack of oversight of and systems for program • Insufficient program modeling of costs, finances & operations • Management structure of partner The Corps Network 2014 National Conference

19. Lessons Learned • Buy-in & collective responsibility • The importance of planning • The power of partnership • Looking forward & looking back • It’s ok to make mistakes/knowing when to say when • Power in the wrong hands The Corps Network 2014 National Conference

20. Where Do We Go From Here? • Leadership has changed the way it works together and what it reports to the Board • Business plans for any off-mission programming and/or new endeavors • Creation of simple to read and understand financial, programmatic and strategic reporting tools with monthly info. on unbilled receivables, profit & loss (by project), hidden & uncovered costs and administrative expenses. The Corps Network 2014 National Conference

21. Where Do We Go From Here? (cont.) • Information on new projects shared during planning phase/key strategic planning info. reported on by quarter • Financial management infrastructure reviewed/checks and balances integrated • Collaborative approach to decision making • Continue to work on relationship building/only enter into contracts/situations that make good business sense The Corps Network 2014 National Conference

22. Process for Program Innovation The Corps Network 2014 National Conference

23. Analytical Tools for Innovation Market study • Market size • Market growth rate • Market profitability • Cost structure • Market trends • Key factors for success and sustainability The Corps Network 2014 National Conference

24. Analytical Tools for Innovation Due Diligence Research LACC Project Evaluation Questionnaire The Corps Network 2014 National Conference

25. Analytical Tools for Innovation Pro Forma –Test Every Assumption The Corps Network 2014 National Conference

26. Analytical Tools for Innovation Cash Flow –Test Every Assumption The Corps Network 2014 National Conference

27. Analytical Tools for Innovation Working Capital –Test Every Assumption The Corps Network 2014 National Conference

28. Discussion Examples from the Group What were the lessons learned? The Corps Network 2014 National Conference

29. Contact Us: • Wendy Butts, Managing Director, LACC 213/362-9000 x206/wbutts@lacorps.org • Dan Knapp, Deputy Director, LACC 213/362-9000 x242/dknapp@lacorps.org • Jeff Parker, Executive Director, NYC 541-349-7500 jeffp@nwyouthcorps.org The Corps Network 2014 National Conference