OC Funders Roundtable 2014 Scaling Presentation

1. OC Funders Roundtable 2014 Scaling Presentation

2. Why Scale? • Theoretical and Practical Approaches • Research, Organic, Opportunity Driven Approaches • Growth Readiness Factors • Strategic Plan & Impact Vision • Clear about Why Grow? – Not growth, for growth sake • Successful Model with a proven Theory of Change • Organizational Health & Wellness • Strong Leadership • Board, CEO and Staff • Evaluation & Outcome Measurement • Stakeholder Support (internal and external) • Scaling – Transformative Growth

3. Why Scale? • Further implementing the six practices of high-impact nonprofits may require going to scale: • Work with government and advocate for policy change • Harness market forces and see business as a partner • Convert individual supporters into evangelists for the cause • Build and nurture nonprofit networks, treating other groups as allies • Adapt to the changing environment • Share leadership, empowering others to be forces for good

4. Types of Impact • Increase outcomes for the same constituents • Add new types of outcomes for the same constituents • Serve more constituents • Diversify constituents • Serve a larger geographic area • Influence new leaders or communities • Create a new norm, standard, or model • Shift mass attitudes or behaviors • Change policies to reduce or eliminate need

5. Process of Scaling

6. What and How to Scale

7. Change Management Frank Talarico, Jr. President & CEO Goodwill of Orange County

8. Communication Strategy • Taking Care of Your Organization’s Future • Prepare for Change • Customize Targeted Messages • Ensure Change Communication is Timely • Listen & Keep Listening and Support Employees • Ensure Face-to-Face • Paint a Picture of the Future • Prepare for Change • Reinforce key messages • Reinforce proper delivery and trickle down of message to keep its integrity • Measure effectiveness of training by randomly visiting employees and implementing a feedback system • Influence attitudes with scenarios for the positive effect from org change

9. Communication Strategy • Customize and Target Messages • During organizational change, customize and target messages to meet the needs of the different employee groups within your organization • Ensure Change Communication is Timely • Fast and effective message cut-through • Use email alerts from CEO, Board Chair and/or key Sr. Leaders to draw employees’ attention to important or urgent messages • Prepare and pre-schedule messages • Set up change communications in advance to prepare for, and respond quickly to, staff feelings and feedback. • During change, pre-schedule messages to ensure that employees hear about changes at the same time, especially if you share news with the media. Balance Score Card - Marketing

10. Communication Strategy • Prepare for Change • Change is inherently unsettling for people at all levels of an organization. • All eyes are on leadership for guidance and support when organizational change occurs. • For change to be successful, the key stakeholders must model the way. • Listen and Keep Listening • Gauge employee attitudes to change • Survey employees to gauge their attitudes towards organizational changes and assess how well they understand them • Keep your finger on the pulse • Survey employees regularly as a temperature check and test that change strategies are working every step of the way. Target dedicated surveys to specific groups of staff (i.e. check whether you are making progress with a resistant group). • Set up Virtual Meetings for remote locations (i.e. webcams) • Manage rumors and collect feedback Balance Score Card - Marketing

11. Communication Strategy • Support Employees & Supporters • Create FAQ’s to help offset fear and negative behaviors • Make calls to key supporters and constituents • Ensure Face-to-Face • Have mandatory attendance • Require managers to submit a brief survey about how and when employees received messages • Paint a Picture of the Future • Describe how the changes will support your strategic plan and increase your ability to achieve your mission Balance Score Card - Marketing

12. Case Study 1 A Start-Up Organization The PGA Foundation • How do you convince board members of an 86 year old brand to take active part in the new organization and how entrepreneurs act strategically to obtain other resources, human as well as financial? • Pure start-up • Provided minimal seed capital • Given short runway for success • High probability for failure • Staff had to be hired, motivated • Board had to be reassured • Attitudes were supportive but elitist • Sponsors had to understand and believe

13. PGA FoUNDATION • Show Wins Early • Radio Disney • Inner city youth programs • Provide Real Services • NCAA Compliance Seminar • Attack Competition • Toyota Tour Cup Series • Local, smaller, junior tour association acquisitions • Largest operating foundation of its kind in the United States in 1997-2003 • Accounted for more PGA Tour players than any other similar organization • Accounted for more NCAA Division I golf scholarships - boys and girls - than any other similar organization • Board had to be reassured • Attitudes were supportive but elitist • Sponsors had to understand and believe • Create FAQ’s to help offset fear and negative behaviors • Make calls to key supporters and constituents • Ensure Face-to-Face • Have mandatory attendance • Require managers to submit a brief survey about how and when employees received messages • Paint a Picture of the Future • Describe how the changes will support your strategic plan and increase your ability to achieve your mission Balance Score Card - Marketing

14. Case Study 2 Planned Succession Goodwill of Orange County • How do you reinvigorate a household name brand organization with only four CEO’s in the past 80 years—all retired as senior citizens? • A nonprofit organization founded in Orange County in 1924, that helps people gain greater independence for a more successful life • Budget of $100M+ • More than 90¢ of every dollar spent supports programs and services • 16,133 People Served in 2013 • $10.6M Earned in 2011 by people who found jobs through Goodwill • 23 Retail Stores and 24 Donation Sites

15. Goodwill of orange county • Establish a Transition Overlap Plan • Engage outgoing leader • Schedule meetings with existing relationships & partners for hand-off • Appreciate everyone’s anxiety • Articulate vision early • Articulation isn’t necessarily execution • Listen and learn • Meet the board individually, casually • Be visible – internally & externally • Show motion • Remember two clichés: • Old Habits Die Hard • Imitation is NOT the Fondest Form of Flattery • Board had to be reassured • Attitudes were supportive but elitist • Sponsors had to understand and believe • Create FAQ’s to help offset fear and negative behaviors • Make calls to key supporters and constituents • Ensure Face-to-Face • Have mandatory attendance • Require managers to submit a brief survey about how and when employees received messages • Paint a Picture of the Future • Describe how the changes will support your strategic plan and increase your ability to achieve your mission Balance Score Card - Marketing

16. Goodwill of orange county • Goodwill of Orange County (GOC) transition required acceleration • GOC transition focused on “focus” • GOC transition was intended to make a great organization truly spectacular • Show motion • GOC, for me, is mutually inspiring • “Wake up every morning, think about what truly spectacular thing we can do for our clients, and then go out and DO it!” • Board had to be reassured • Attitudes were supportive but elitist • Sponsors had to understand and believe • Create FAQ’s to help offset fear and negative behaviors • Make calls to key supporters and constituents • Ensure Face-to-Face • Have mandatory attendance • Require managers to submit a brief survey about how and when employees received messages • Paint a Picture of the Future • Describe how the changes will support your strategic plan and increase your ability to achieve your mission Balance Score Card - Marketing

17. Scaling and InnovationMay 22, 2014

18. Growth PolicyAdopted 2005 Helping families help themselves” is at the core of Families Forward’s mission and values. While we recognize that there are limitations to the extent of service reach and programs that can be offered, we none the less believe that helping families must always be our primary concern. In so far as families will continue to need such assistance, Families Forward will continue to consider new ways and opportunities to provide assistance. We recognize that this statement implies a willingness to let the agency’s reach extend and its programs broaden. However, this willingness must be governed by prudence. Therefore the Families Forward Board will consider new opportunity proposals as long as such proposals:

19. Growth Policy • Complement our core mission • Correspond to our philosophy of service delivery • Sustain the quality of existing services without compromise • Demonstrate the financial support necessary to grow without jeopardizing existing programs • Support the infrastructure necessary to carry the additional load

20. Recession 2007 • Social Services faced with incredible demand • Limited resources • Innovation Resource Fair • Housing First • Community Cares

21. Planning 2014 • Move Complete to 8 Thomas, Irvine • Balance sheet and assets positive • Many opportunities but where is the biggest impact • Collaborations • Mission • Value

22. THINKtogether.org

23. The Importance of Scale “While small may be beautiful, size matters when it comes to having a substantial impact on society’s pervasive problems. By leveraging economies of scale and management talent, large nonprofits can deliver services at lower cost. They can offer their staff compensation and career opportunities. They have greater capacity to conduct experiments, assess innovations and share best practices across multiple locations. In an effective [philanthropic capital] system, innovative nonprofits with the best management and social change agenda would grow in scale and scope while less effective one would diminish and eventually disappear.” Robert S. Kaplan Allen S. Grossman Harvard Business Review October 2010

24. SCALING IMPACT Policy Perception Practice

25. Shalimar Story

27. California’s Achievement Gap Target = 800

29. 5 PILLARS OF THINK TOGETHER’S STRATEGIC PLAN • Deliver High Quality Programs • Build Financial Sustainability • Measure Our Results • Leverage Our Platform • Strengthen the Platform