Chart Your Strategic Course
Fiduciary Responsibility
Evaluate
Mission
Effectiveness
•Measure outcomes
•Consider long-term
viability
Ensure
Financial
Viability
• Ensure adequate
resources
• Assure long-term
sustainability
3
BOARD MEMBERS
HAVE LIVES
AND YOU ARE
COMPLICATED
4
5
6
"I always skate to
where I think the puck
is going to be.“
- Wayne Gretsky
4.50
Mission Margin Matrix
4.00
3.50
Program 1
Program 4
Program 2
Program 3
3.00
2.50
2.00
$(60,000)
$(50,000)
$(40,000)
$(30,000)
$(20,000)
$(10,000)
$1.50
$10,000
$20,000
$30,000
Fundraiser 2
Fundraiser 1
1.00
0.50
0.00
$40,000
Mission
Values
Vision
Strategic Plan
Organizational
Objectives
Service
Imperatives

Operations – beginning organization
 Functionality
 What is not working – how do we fix it

Organizational
 What do we need to grow
 Are our systems working

Visionary
 How do we move the needle
 How do we scale
 How do we affect transformational change
Step 1: Identify Core Business Activities
Step 2: Set & Map Mission Impact:
a) Alignment with mission
b) Excellence in Execution
c) Scale or volume
d) Depth
e) Filling an important gap
f) Community/constituent building
g) Leverage
Step 3: Map Fiscal Impact:
a) Profit (Loss)
b) Program Expense
Profit (Loss) = Revenue - (Direct Expenses + Allocated Share + Administration)
Step 4: Create Bubble Chart Impact & Profitability
High
Alignment
With
Impact
Statement
These programs
require funding.
Pursue opportunities
for additional funding
and/or cost
improvements
These programs are
self-sustaining.
Invest and grow
them.
Lower
Alignment
With
Impact
Statement
These programs are
potential
distractions. Find
ways to improve
them or reconsider
participation
These programs
generate income
Pursue them unless
they become a
management
distraction
Negative
Positive
Financial
Contribution
 Alignment with Core Mission
 Excellence in Execution
 Scale/Volume
 Depth
 Filling an Important Gap
 Community Building
 Leverage
Congruent with an organization’s mission, while
also contributing to the impact of the
organization.
How is the program executed, which can be
evaluated through program evaluation data,
feedback from clients, direct observations, staff
performance evaluations, staff turnover.
Client utilization and number of services
completed.
Level of impact on people involved, which can
be measured through program evaluation data
and logic models.
Scaling System
4
3
2
1
–
–
–
–
Exceptional Impact
Very Strong Impact
Some Impact
Not Much Impact
Filling a gap that is really important, which can be
evaluated through reviewing competitors or asking
constituents where else they obtain/could obtain that
service.
How the program helps build community around the
organization, which can be evaluated through
interview with community leaders, reviews of donor
histories, and client surveys.
The degree to which a program or business line
increases the impact of other programs.
MISSION MAPPING
Program:
Criteria
Rating 1 - 4
(2 is on x axis)
Mission Alignment
Excellence in Execution
Scale/Volume
Depth
Filling an Important Gap
Community Building
Leverage
Average
Notes
MISSION MARGIN MAPPING -- Net Profit
Profitability and Impact Scoring ,
Based on Fiscal Year Actual
Business Line /Program/Service
Expenses Profit or Loss Mission Impact
Expenses should include direct expenses, allocation and administrative overhead
Program
Program 1
Program 2
Program 3
Program 4
Fundraiser 1
Fundraiser 2
Profit or Loss
$
$
$
$
$
$
(40,000)
(5,000)
12,000
(7,500)
27,750
5,000
Rating
(1 lowest - 4
highest)
3.86
3.12
3.10
3.57
1.57
1.77
Program Expenses
$
$
$
$
$
$
777,000
157,000
125,000
51,540
75,000
12,000
4.50
Mission Margin Matrix
4.00
3.50
Program 1
Program 4
Program 2
Program 3
3.00
2.50
2.00
$(60,000)
$(50,000)
$(40,000)
$(30,000)
$(20,000)
$(10,000)
$1.50
$10,000
$20,000
$30,000
Fundraiser 2
Fundraiser 1
1.00
0.50
0.00
$40,000
Questions you
should ask
1)
What can you grow?
2)
What should you
reduce or eliminate?
3)
Where are you at risk?
4)
How do you mitigate
risk?
5)
Where can you
collaborate?
6)
Can your fundraising
offset programs that
are not funded?
7)
What is the impact of
reducing a program in
terms of
administrative
allocation?
HOW CAN YOU MOVE THE MATRIX?
Trouble
Ahead ……
How do you
plan for
contingencies?

Forecasting: Predicting the future based on
extrapolating from the present

Scenario Planning: Series of “What If” exercises
 Strategic Planning exercises to test the viability of
alternative strategies
 Evaluate risks and potential upside to new strategies
 Plan if you lose major source of revenue – what programs
can be impacted and still maintain mission
 Plan if you receive an unexpected significant contribution
Crisis Management – worst case scenario – “Plan B”
ORIGINAL
UPDATED
28

Exercises:
 What if Program 1 revenue
was $850,000 with
$950,000 in expenses
 What if program 2 doubled
its size and saw twice as
many people
▪ Mission impact would be
higher
▪ Cost would be 1/3 higher
▪ Revenue would be 70%
higher

You have identified the X factor and it has
happened. What does it look like and what
are your options?
 Your major funding source has pulled the plug
 The volume has dropped 70% on Program 1 –
moving it close to the line relative to mission

Mission is critical – understand and review the
impact you want to have

Finances can shift
 Forecast
 Plan by scenario’s
 Manage crisis well

Plan for the future

Align collaborations well
Go Forth,
Act Decent,
Call Your Mother
From Time to Time
Simcha Fisher
Engaging philanthropy … empowering your cause
Danosky & Associates
helps non-profit
organizations build the
capacity to move their
strategic vision
forward with a solid
foundation
and an army of
support behind them
www.danosky.com
[email protected]
860-799-6330
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