The Matrix Map Process & Intended Impact

1. The Matrix Map Process & Intended Impact Steve Zimmerman, CPA, MBASpectrum Nonprofit Services @SpectrumSteve

2. Our conversation • Introductions • Sustainability Overview • Nonprofit Business Models • Intro to the Matrix Map • Strategic Issues • Articulating Intended Impact • Defining Programs • Next Steps

3. Introductions • Name • Organization • Role with the organization • How long involved?

4. Introductions • Line up by budget size… • …then by mission… • …then by role in your organization.

5. Introductions

7. What is Sustainability?

8. Defining Business Models • What is a business model? • “A business model is a company's plan for making a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses it anticipates” • --- Investopedia

9. Defining Business Models • But, nonprofit business models • work differently than for-profit models • Those paying for funds are often not the same as those receiving services and may value the service differently • Donors can restrict funds • We often “price” work at below actual cost • We may draw on volunteers and in-kind donations • We are not expected to be profitable, but we must be.

10. Defining Business Models • Nurturing the business model requires constant consideration of: - Nonprofit Quarterly

11. Defining Business Models • Your hypothesis about which impacts will engage human and financial participation • From here, a chosen set of mission specific and fund development activities that work together to achieve BOTH mission impact and financial viability. • Every organization’s set of activities is unique and represents management’s and the community’s best thinking of how to be sustainable.

12. What is Sustainability?

15. Defining Sustainability • Sustainability encompasses both: Financial sustainability (the ability to generate resources to meet the needs of the present without compromising the future) and Programmatic sustainability (the ability to develop, mature, and cycle out programs to be responsive to constituencies over time.) - - Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

17. The Matrix Map

18. Sample Matrix Map Profitability Impact

19. Relative Impact

20. Profitability • Determining Profitability Organization Surplus Surplus Deficit Surplus Deficit Surplus Deficit Surplus Deficit

21. What is the right revenue strategy for our organization? • The Matrix Map

22. SHOW ME THE MONEY!

23. “Maintaining multiple, highly diverse revenue streams can be problematic when each requires, in essence, a separate business. Each calls for specific skills, market connections, capital investment, and management capacity.” Clara Miller “Shattering the Myth About Diversified Revenue” Chronicle of Philanthropy, September 2010

24. How do we find the “right revenue” strategy?

25. Sample Matrix Map Profitability Impact

26. The Nonprofit Market

27. SUSTAINABILITY is an orientation, not a destination.

28. Sustainability involves ongoing decision making about your business model.

30. Tools for Decision Making

31. The Matrix Map

32. Matrix Map Process

33. Cohort Goals • An in-depth understanding of your organization’s business model as picture by the matrix map, and a framework for making ongoing strategic decision to strengthen your business model. This includes: • A statement or outline of intended impact; • Knowing the true full costs and profitability of your programs; • A structured discussion to assess the relative impact of each program; • Knowledge of the organization’s revenue mix; • Understanding how the market has influenced the business model. • Initial strategic priorities to strengthen the organization’s business model and sustainability.

34. Cohort Goals • Your Turn • What are your goals for this project?

36. Strategic Issues

37. Strategic Issues

38. Matrix Map Process

39. Intended Impact • Defining Intended Impact • A statement or series of statements about what the organization is trying to achieve and will hold itself accountable for within some manageable period of time. It identifies both the benefits the organization seeks to provide and the beneficiaries. • - - - Susan Colby, Nan Stone & Paul Carttar • Bridgespan Group

40. Intended Impact • Intended Impact Mission Improve the lives of poor children in America’s most devastated communities. • Harlem Children’s Zone (HCZ)will focus on children aged 0 to 18 living in the HCZ making a successful transition to an independent, healthy adulthood, reflected in demographic and achievement profiles consistent with those in an average middle-class community.

41. Intended Impact • Intended Impact Mission • To guide the growth of at risk youth in order that they reach their potential and live responsibly. • Youth and young adults up to age 26 and their families with a lack of formal support and resources who have experienced trauma and exhibit maladaptive behaviors will be productive members of society as measured by being: • Financially stable • Connected with the community • In healthy relationships • Law abiding

42. Indented Impact • Questions to Ask • What is the specific anticipated change our organization hopes to achieve as a result of our efforts? • If we went away, who would it matter to and why? • Who are our direct beneficiaries? Who or what are we ultimately trying to serve? • What is the geographic region of our impact? • What does success look like and how can it be measured?

43. Impact Who Measure • Intended Impact How Long-Term Value

44. Intended Impact

45. Intended Impact

46. Matrix Map Process

47. Programs / Services Intended Impact The outcome of our efforts. What are your core programs or services? Determining Programs • How our organization accomplishes impact. • How our organization finances impact. • Day-to-day activities.

48. Determining Programs • What are your core programs? Programs Anything on which your organization spends a significant amount of effort or resources (time or money) on. Mission-Specific Programs Fund Development Programs

49. Determining Programs

50. Determining Programs