Board of Directors Meeting
June 13, 2017
Program Department Report
1
FY17 Program Dept. Plan Overview
Overall Goal: Headcount Growth of 16,500 to 104,500 children served
Develop infrastructure to support growth in the areas of:
 Staff including “Boots on the Ground”
 Program Support Strategy
 Pricing Structure
 Enhanced Volunteer Support
 Food Logistics
 Chapter Structure Implementation
All others,
27,596 ,
29%
Publix,
2,316 ,
3%
Optimum
Foods,
3,855 , 4%
Meijer,
11,649 ,
12%
Walmart/Sa
m's Club,
Sysco,
25,370
, 27%
21,812
,
23%
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FY17 In Review: Children Served
Budget
Beginning
Headcount Actual
National Managed
Relations (1)
NUDM
Dale Jr.
New Regional
Directors (2)
Grass Roots:
New Programs
Legacy
Total Grassroots
Less Estimated
Attrition (3)
Grassroots, net of
attrition
FY Ending Balance
Projected
Variance
88,000
88,039
39
4,000
2,200
1,422
1,721
2,200
1,422
(2,279)
-
2,180
2,209
29
-
13,400
1,921
5,552
7,473
(5,927)
(6,700)
(8,565)
(1,865)
6,700
104,502
(1,092)
94,499
(7,792)
(10,003)
(1) Includes appx. 4,000 children from Ohio Dept. Of Health, an increase of appx. 3,000
(2) Includes all children in programs assinged to RMD, even if outside target market.
i.e. RMD for Jacksonville also has responsibility for program oversight for Alabama and select areas in FL
(3) Actual attrition for FY17 will be determined once 6/30/17 childcount numbers are available
3
FY17 Year in Review: Program Team Footprint
4
FY17 In Review: Children Served
Primary Reasons Growth Objectives Were Not Achieved
Hiring program team staff took longer than anticipated
• New Regional Managing Directors (RMDs) in place for 9 months or less
• New Program Managers (PMs) in place for 8 months or less
See slide 7 for comparison of MD vs. PM responsibilities
New pricing roll-out was a significant distraction in moving forward
Higher attrition than anticipated in the FY17 Plan
• Pricing structure changes
• Expiring commitments for previous growth spurred by People Magazine
• Historical lack of proactive outreach to support program volunteers due to PM
coverage limitations (3.1 FTEs for 88,000 children)
• Some programs are serving fewer children as the need has decreased at
individual schoolsimproving economy?
Let’s look at these factors in further detail
5
FY17 in Review: Staff Additions = “Boots on the Ground”
2017 Approved Plan
•
•
•
•
Establish boots on the ground to grow regional base in the following areas:
 Southwest Florida (PT to FT) – 7/1/16 target, implemented 11/1, once Jacksonville RMD was hired and trained
 Jacksonville Florida – 8/1/16 target, hired 9/21/16
 Chicago – 8/1/16 target, hired 9/11/16
 Louisville – 1/1/17 target, implemented 1/1/17
Selection criteria included strong local advisory board in place (except Chicago where overseeing NUDM funding was
a key requirement)
Hire in advance of positions being able to support their own costs. Expected year 2 to be self-funding.
Expected cost was $66K ($56K salary + $5K travel + $5K misc.)
2017 Results/Findings
•
•
•
•
Regional Managing Directors in FL markets spend more time
than anticipated on local advisory board development and
Region
maintaining existing programs vs. fundraising and program
growth
Southwest Florida
Actual RMD cost higher than expected. FY 2018 budget
Jacksonville Florida
$84K average or $18K higher than FY 2017 expected
Chicago
Positions require financial support for marketing and PR,
geographic-specific website, etc. in addition to
Louisville
salary/benefits/travel
* Projected
Each market has different attributes that impacted growth
Headcount Growth FY 2017
Begin
End*
Change % change
2,752
3,295
543
20%
9,772
10,700
928
9%
4,987
5,564
577
12%
7,457
7,303 - 154
-2%
Plan
4,615
11,731
7,236
9,250
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Roles and Responsibilities of Managing Directors vs. Program Managers
Summary
FY18
Fundraising
Goal
Fundraising
Strategic
Operational
Regional Managing Director
•Implement Blessings in a Backpack strategic
plan in assigned geographic territory with
oversight for all local fundraising, program
operations and execution. "Boots on the
Ground"/face of BIB in the local community.
$237,000
•Act as the liaison between resources of the
National office and local volunteer program
coordinators. (PCs).
$0
•Work with the local advisory board to develop
needed resources.
•Build partnerships, establishing relationships
with the funders, political and community
* Corporate asks
* Grant writing
•Complete the strategic business planning
process for program expansion.
•Seek and build board involvement with
strategic direction.
•Support start-up of new programs:
•Menus
•Food logistics
•How to run a program
•Working with volunteers
•Ongoing support of programs
•Food logistics solutions, as needed
•Provide donor and financial reports
•Field ongoing questions
* Chapter board liason & advisor
* Local board & school event support
* Volunteer coordination
Coverage
Program Manager
Serve 50-200 schools, <10k children
Specified region
•Support start-up of new programs:
•Menus
•Food logistics
•How to run a program
•Working with volunteers
•Ongoing support of programs
•Food logistics solutions, as needed
•Provide donor and financial reports
•Field ongoing questions
* Represent the national office at local
events when feasible. i.e. local program
fundraisers, check presentations, etc.
•Act as a spokesperson at external programs
and events for constituents and the general
public, when feasbile
* Volunteer coordination
Serve 200-300 schools, 20-30K children
Multi-state geographical footprint
7
FY17 Year in Review: Regional Managing Director Model—Current State
Key Responsibilities:
• Interface with local Advisory Boardlimited structure or succession planning; no
established give/gets; work of committees loosely defined (if at all)
• Program Operationsoversee an average of 6,400 children, 17-61 programs, with an
average of 140 children per program. (RMDs with larger counts also have some Program
Management responsibilities.)
• Fundraising in the local community to cover operating expenses and feed additional
children
Average cost of Regional Managing Director direct expenses = $82,000
Includes Salary/benefits, Marketing, Phone, Supplies, Travel
Breakeven @ $10/child = 8,200 childrenhigher than current assignment
Unrestricted $s expected to be raised to help cover costs.
Realities:
• Targeted Salary for this position is extremely low given the skillset required
• 8,200 children is higher than current assignments-->MDs are at capacity
• On average, 77 % of children covered by MDs are legacy, not $10/child (varies greatly by
market
8
FY17 in Review: Program Support—Pricing Strategy
2017 Approved Plan
Major initiative: New Pricing Rollout
2017 Findings/Results
•
$10 per child nonfood program support to take effect in the 17-18 school year was announced in
October 2017
•
Backlash from existing “legacy” programs was extremely negative
•
Following Board of Directors input, a Pricing Task force convened in December 2017
•
A revised price structure for legacy programs was approved and implemented 2/1/17
•
Impact is effectively $2/child vs. $10/child; however, risk of losing children served was lessened
9
FY17 in Review: Program Support—Volunteer Resources
2017 Approved Plan
Major initiatives: Enhanced Volunteer Support
2017 Findings/Results
•
PC newsletter was launched in May to coincide with National Volunteer Week
•
Significant enhancements to the PC Toolkit for volunteer Program Coordinators (PCs)
•
Comprehensive updated Operations Manual to be released by June 30, 2017
•
Possible National PC Conference was delayed to 2018 to focus on reaching PCs through
newsletter and PC Toolkit and to ensure adequate sponsorship support
10
FY17 in Review: Food Logistics
2017 Approved Plan
•
Create a National agreement with incumbent Sysco or other appropriate food vendor
•
Pilot a prepackaged solution with Champion Foodservice
•
Create an advisory committee to weigh in on possible solutions
2017 Findings/Results
•
A National agreement with Sysco would have added 10% to food cost
•
Prepackaged solution with Champion was piloted in Florida and Louisville through Sysco
 Very successful in Florida
 Mixed results in Louisville
 Sysco’s lack of willingness to stock both prepackaged solution and “line item” menu was a
significant obstacle to further roll-out
•
Attempts to address food logistics with probono consultants were not successful
•
ERA hired to support food logistics reengineering in April. Detail analyses completed in May.
Initial recommendations expected by the end of June
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FY17 In Review: Chapter Structure Implementation
2017 Approved Plan
•
Develop a model to replicate in new markets
•
Standardize local advisory boards
2017 Findings/Results
•
Initiative was assumed by Director, Strategy and New Initiatives in connection with new market
roll-outs
•
Templates developed included:
 Operating Practices and Principles
 Advisory Board Member Job Description
 Advisory Board Member application
•
Regional Managing Directors are using templates as guidelines in working with established local
advisory boards in moving to best practices, modifying as appropriate for local market needs.
Some cultural resistance to overcome (i.e. no prior “dues” or “give or gets”)
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FY18 Program Priorities
Overall: Breaking the Code to Sustainable Growth to serve 106,400 by 6/30/18
Maximize assets already in place:
Regional Managing Directors
•
Fundraising plans are being developed by each RMD for their respective markets
•
RMDs to identify key memberships that will enhance their networking for purposes of
fundraising
•
Further collaboration with the National Fund Development Department to enhance local
fundraising skills and opportunities
Identify opportunities for collaboration and partnerships to significantly increase growth:
• Develop a comprehensive list of prospective collaborators, preferably national in scope (I.e.
Share Our Strength/No Kid Hungry, Feeding America, United Ways, Boys & Girls Clubs, large
religious groups, police departments.)
•
Conduct research to identify feasibility/pros and cons of collaboration
•
Create partnerships aimed at significantly increasing numbers of children served as well as
funding opportunities.
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FY18 Budget Student Headcount Growth
Children Served
7/1/17 Projected Balance
Existing Legacy Programs
New Grassroots Growth
Program Staff Driven
Less Attrition
6/30/18 Projected Budget
94,499
6,693
5,408
5,408
(5,600)
106,408
Notes:
• Increase of appx. 12,000 students, net of attrition, is nearly double FY17 growth
• Looking for increased productivity of assets put in place
• Need to identify partnerships that will DRAMATICALLY increase the number of
children served per programcan’t rely on grassroots growth with 50
children/school
• The 5 year strategic plan called for FY17 ending headcount to be 140,000 225,000
for FY17 and FY18, respectively
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FY18 Program Priorities:
New Regional Managing Directors in New Geographic Target Markets
Los Angeles and Washington, D.C. Revenue Goals before hiring a local RMD
• Raise $135K (LA) and $105K (DC) through Advisory Boards, Sponsorship, and
Personal Donations
Atlanta Revenue Goals before hiring a local RMD
• Raise $135K through Advisory Board, Sponsorship, and Personal
Donations
Target hire dates, depending on fundraising goals, are late Spring/early
Summer of 2018
In the year following the hire of a new RMD in each new market, the goal
is to increase child count by 1,500.
Once a new market has a RMD in place, then National BIB would start the
new market process over, by adding another city.
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FY18 Program Priorities
Overall: Breaking the Code to Sustainable Growth
Establish Food Logistics Solutions as a Competitive Advantage over other weekend food
programs
• 50% of food purchases are at retail prices
•
60% of food purchases require volunteers to pick up food (vs. delivery to packing site)
•
Food purchases from 220 sources monthly do not leverage total food spend
A cost-effective and efficient food logistics solutions:
• is key to minimizing attrition for those who believe they can run their programs more costeffectively on their own
• is necessary to accelerate future growth in children served
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FY18 Budget Implications
FY18 BUDGET AS PREPARED DOES NOT INCLUDE FUNDING FOR CONSULTANTS TO
CONTINUE FOOD LOGISTICS REENGINEERING WORK ($7,500/month = $90k annual + travel)
 Will inhibit future growth unless another solution for food logistics is identified
 Will continue to require staff time in areas where there is no “value-added”
 Agreement negotiated in April 2017 does provide an out if project funding is not
approved
Excerpt from ERA Report dated May, 22, 2017 Based on our initial analysis, we believe that the potential for
process improvement, vendor consolidation, and both hard and soft cost reduction is significant. Recognizing that
achieving maximum results will require change throughout the BIB organization, we recommend a series of
conference calls / webinars with BIB field leaders to present the initial data and the project plan, followed by a
detailed market assessment to determine potential issues / obstacles by market, as detailed in the project
timeline below:
Task
Phase 1 – Data Collection, Market Analysis,
Prioritization
Collect data, summarize findings
Identify process improvement opportunities by
market
Review opportunities, evaluate requirements
Qualify existing markets (easy / moderate / Difficult)
Incumbent supplier analysis / evaluation
Responsibl
e
Completion
April – July 2017
ERA, BIB
ERA
May 2017
June 2017
ERA, BIB
BIB
ERA, BIB
July 2017
July 2017
July 2017
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FY18 Budget Implications
A COST EFFECTIVE AND EFFICIENT FOOD ACQUISTION AND DISTRIBUTION SOLUTION
HAS GREAT POTENTIAL TO BE OUR COMPETITIVE ADVANTAGE IN ATTRACTING AND
RETAINING OTHERS TO PARTICIPATE IN BLESSINGS IN A BACKPACK PROGRAMS
What is the value-added BIB provides?
For those who have:
 another way to accept tax-deductible donations (i.e. church, community
foundation)
 are buying groceries from local retailers
 have volunteers available and a packing methodology…
There may be no compelling reason to be a part of BIB!
RECOMMENDATION: Continue ERA project at least through the end of July 2017
complete the strategic assessment of where we’re at.
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