Sustainability in
Troubled Waters
presented by:
Debra Thompson, President & CEO
April 26, 2012
[email protected]
www.getstrategy.com
©Strategy Solutions, 2009
Strategy
Solutions exists
to create healthy
communities.
©Strategy Solutions, 2011
Healthy Communities
Private Sector
Wealth Creating Companies
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Healthy Organizations
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We help our clients
“unlock their potential”
by providing three things:
• Strategic Planning
• Market Research
• Project management to support
implementation of key initiatives
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Objectives for Today
• Outline an integrated approach to
sustainability in “troubled waters”
• Identify strategies to cover your BASES to
ensure sustainability:
–
–
–
–
–
Build a Business Case,
Adapt and align,
Scale your business,
Execute, and create
Synergy
©Strategy Solutions, 2011
Keys to Sustainability
•
•
•
•
Industry lifecycle fit
Product lifecycle fit
Organizational lifecycle fit
Appropriate fundraising (to fill in the
gaps)
©Strategy Solutions, 2011
Where Are We Now?
The Non-Profit Organizational Lifecycle Model
Sustain
Mature
Gr
ow
nt
e
c
es
g
Be
in
ne
cli
De
Stagnant
ol
d
A
Renew
Di
ss
ol
ve
Start-Up
Source: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
Where are we now?
©Strategy Solutions, 2011
How Sustainable Is
Your Organization?
• How well do you identify and meet
your fundraising goals?
• How knowledgeable are you about
industry best practices?
• How knowledgeable are you about
consumer expectations?
• How mature is your organization?
• How “mature” is your board?
©Strategy Solutions, 2011
Where do we want to be?
• Sustainability by covering all your
“BASES”
• Begin with the end in mind
–
–
–
–
–
Build a Business Case,
Adapt and align,
Scale your business,
Execute, and create
Synergy
©Strategy Solutions, 2009
Build a “Business Case”
• Mission: What business are you
in?
• What is the “compelling cause”
that drives your organization?
– what “evidence” do you have that
this is true?
• What is the “operational definition”
of the vision of your organization?
©Strategy Solutions, 2011
Strategic Profile
Defining the Vision
• Driving force - MISSION
• Business concept - “What business are
we in?”
• Competitive strategy
• Future product scope
• Future market scope
• Future client scope
• Size/growth guidelines
• Return/profit guidelines
• Timeframes
Source: Strategy Pure & Simple by Michel Robert
©Strategy Solutions, 2009
Build a “Business Case”
• To what extent does your “story”
evoke strong feelings/emotions?
• What “return on investment” do your
outcomes “deliver” to the clients,
community and donors?
• Do you have this written down
(succinctly) in summary format?
– This may be impossible without the
appropriate elements in place
©Strategy Solutions, 2011
Adapt and Align:
4 Components of Capacity
Adaptive
Management
Leadership
Technical
Source: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
Key Characteristics:
• Any group that aims to deliver successfully on its
mission must attain the mature lifecycle stage –
and sustain itself there.
• Capacity is an abstract term that describes a
wide range of capabilities, knowledge and
resources that organizations need in order to be
vital and effective in staying true to their
missions.
• SSI’s approach attempts to teach clients to
“build capacity to achieve a sustainable
business model”
©Strategy Solutions, 2011
Capacities
Adaptive
• The ability to
monitor, assess,
respond to and
stimulate internal
and external
changes
Leadership
• The ability of
leadership and
staff and to
inspire, prioritize,
make decisions,
provide directions
and innovate
Source: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
Capacities
Management
• Ensure the
effective and
efficient use of
organizational
resources
Technical
• The ability to
implement all of
the key
organizational
functions and
deliver products
and services
Source: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
Adapt & Align
• Industry lifecycle fit
– How well have you integrated industry
best practices into your service delivery
model?
• Do we even know what they are?
– To what extent are you “building a
new best practice?”
– How do you “stay ahead” of the curve?
©Strategy Solutions, 2011
The Non-Profit Organizational Lifecycle Model
4
3
2
Sustain
Mature
5
1
Gr
ow
nt
e
c
es
g
Be
in
ne
cli
De
Stagnant
ol
d
A
Renew
Di
ss
ol
ve
Start-Up
Many are here
Adapted from: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
The Non-Profit Organizational Lifecycle Model
4
3
2
Sustain
Mature
5
1
Gr
ow
nt
e
c
es
g
Be
in
ne
cli
De
Stagnant
ol
d
A
Renew
Di
ss
ol
ve
Start-Up
Many are here
Adapted from: Navigating the Organizational Lifecycle
by Paul Connolly
©Strategy Solutions, 2009
Adapt & Align
• Product lifecycle fit
– To what extent are you listening to the
“voice of your customers” to know what
they want/need expect?
– How well have you integrated meeting
consumer needs and expectations into
your products/service delivery model?
©Strategy Solutions, 2011
Adapt & Align
• Product lifecycle fit
– What is your product “niche” and how it
is integrated across the “continuum” of
services?
– How “relevant” are your products/
services?
• Who would “miss you” if you were gone?
©Strategy Solutions, 2011
“Scale” Your Business
• What does it “actually cost” to deliver
our programs/services?
• How much of the true cost is
administrative overhead versus
service delivery?
• What will it take to achieve the
lowest possible unit cost?
©Strategy Solutions, 2011
“Scale” Your Business
• In what ways can we collaborate to
expand services, lower cost and/or
improve quality?
• In what ways can we share
resources to build capacity or lower
costs?
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Execute: Management
• Build/Execute Technical Capacities:
– Program
– Finance
– Human Resources
– Marketing
– Planning
– Fundraising
– Outcomes Measurement
– Information Technology
– Other
©Strategy Solutions, 2011
Execute: Management
• Ensure “the right people in the right
seats on the bus.”
• Develop a culture of performance
excellence and customer service
focused on the mission
• Zero tolerance for non-supportive
behaviors
©Strategy Solutions, 2011
Execute: Governance
•
The board is responsible for its’ own
operations, including the education, training
and development of board members, annual
evaluation of its own performance, and
where appropriate, the selection of new
board members.
•
The board should establish stated
expectations for board members,
including expectations for participation
in fundraising activities, committee
service, and program activities.
©Strategy Solutions, 2011
Execute: Board Roles
•
•
•
•
Governance
Fundraising
Management Volunteer
Direct Service Volunteer
Source: BoardSource
©Strategy Solutions, 2009
Execute: Governance
• Stage 1: Start-up Organizing Board:
Board is either “follow the leader” (friends
of the founder, cheerleader, rubber
stamper) or strong volunteers who share
board/ management functions
• Stage 2: Adolescent Volunteer
Governing Board: Power and authority
is shared between board and staff
• Stage 3: Mature Institutional and
Fundraising Board: Board roles are
distinct from management; board sets
policy and supports fundraising
New Reality
There is new recognition that business
exists to serve the ongoing evolution
of human civilization and the care
and support of the global family.
New Reality
Tachi Kiuchi, former Chairman and
CEO
Mitsubishi Electric America
“We must be AGILE and CREATIVE
and operate our businesses in new
ways. In the past we operated our
businesses like machines, but
machines do not respond well to
change.”
21st-Century Business
Service to and alignment with the
greater good as the top priority,
coupled with sound business
practice, results in significantly
higher profits.
Why is this happening
now?
• Greater percentage of the population
is over 45
• Gen Y (late teens – early 30s) more
interested in work-life balance
• Gen Net predicted to be even more
focused on service, social
responsibility, meaning, balance.
Societal Shifts
• Significant increases in sociallyresponsible investing
• Less tolerance for corruption,
misuse of funds, dishonesty
• Greater demand for transparency,
leveling the playing field, opening
lines of communication
Success in 21st
Century
Alignment of thought, belief, intention,
decisions, and actions with values,
essence or soul, and reason for
being or soul mission, as well as
with the greater good—the positive
evolution of our collective
consciousness and collective wellbeing.
Success in 21st
Century
Moving from “what I want”
or “what the company wants”
to “what wants to happen.”
“Partnering with Potential”
Create Synergy
• Never doubt that a small group of
committed citizens can change
the world, because indeed, it is
the only thing that has ever had.
Margaret Mead
©Strategy Solutions, 2011
In Summary
• Strategies for sustainability in “troubled
waters”
• Cover your BASES to ensure
sustainability:
–
–
–
–
–
Build a Business Case,
Adapt and align,
Scale your business,
Execute, and create
Synergy
©Strategy Solutions, 2011
Questions/Discussion
©Strategy Solutions, 2009
How SSI Can Assist You
Strategic Planning:
• Board governance
assessments, board
development plans, board
training
• Facilitating board retreats,
strategic planning
processes
• Facilitate the development
of specific implementation
action plans, human
resource requirements
and budgets
©Strategy Solutions, 2009
Market Research:
• SSI conducts and
facilitates research in
support of community
needs assessment
activities
– Surveys
– Focus groups &
stakeholder forums
– Secondary research
• SSI will teach clients to
conduct stakeholder
forums and gather data as
resources allow
Implementation Support
•
Strategy Solutions can:
– prepare business plans with
financial modeling, breakeven analysis and return on
investment
– develop marketing plans
based on market research
that are critical tools in the
implementation of strategic
initiatives
– work closely with advertising
agencies to assist with the
implementation of branding
strategies and marketing
plans
©Strategy Solutions, 2009
•
Strategy Solutions helps to
build organizational capacity
and build organizational
effectiveness by helping to:
– Define the organizational
model for the achievement
of the company’s strategic
initiatives
– Assess current
management and employee
skills and goals
– Align these to the goals
envisioned in the company’s
strategic initiative and the
skills required to achieve it
– Define the gaps that must
be filled
– “Fill” in the gaps with staff
support when required