1 Program Analysis Using the MacMillan Matrix and Related Tools YWCA Great Lakes Alliance July 2012 Shelly M. Schnupp SMS and Associates

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Program Analysis Using the MacMillan Matrix and

Related Tools

YWCA Great Lakes AllianceJuly 2012

Shelly M. Schnupp SMS and Associates

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Why Program Analysis?

Greater demand for accountability More competition….for funding and

customers Increasing demand for fewer resources Changing needs, evolving

environments Few are no programs are forever

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…Nonprofits are Responding

Facing facts Refocusing on mission Competing where appropriate Avoiding duplication Maximizing strengths Increasing partnerships and

collaborations

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The MacMillan Matrix

Developed by Ian MacMillan Designed to help nonprofits assess

their programs for sustainability, especially in light of scarce resources

Modifications and complementary tools developed by SMS and Associates

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Guiding Principles

1. Unnecessary duplication fragments limited resources; weakens providers, decreases quality

2. Greater focus, instead of being all things to all people, can result in higher quality

3. Increasing demand for resources requires change in approaches

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Key Questions MM Helps Nonprofits Answer

How well does our program portfolio fit with our mission and vision?

Are we the best organization to provide this service?

What is the competitive strength of each of our programs?

Are we engaged in any services which, if eliminated, would cause consumers irreplaceable loss?

Are we spreading ourselves too thin, without the capacity to sustain ourselves?

Should we work cooperatively with another organization to provide services?

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Matrix Criteria

1. Fit

2. Economic Attractiveness

3. Alternate Coverage

4. Competitive Position

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1. Fit -- degree to which a program

"belongs" or fits within an organization (Good or Poor)

Congruence with mission/purpose vision? Address ywca brand? Hallmarks?

Organization has existing skills and competencies?

Able to share resources and coordinate activities with other programs?

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2. Economic Attractiveness—

revenue availability (High or Low)

Current stable funding? (consider all costs, including overhead)

High appeal to funders, supporters?

High market demand? Measurable, reportable

outcomes/results?

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3. Alternate Coverage-- competition (High or Low)

Are similar services provided? Do customers have many other

choices? Competitors now and future?

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4. Competitive Position-- stronger capability and potential to deliver the service

than current or emerging competitors (Strong or Weak)

Good location, logistical delivery system?

Will customers remain? Grow?

Is quality superior? Record of securing

grants, funding?

Stable staffing? Ability to maintain and

continually increase competency?

Cost effective? Strong connections

with consumers and stakeholders?

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Program Analysis Steps

1. Preparation

2. Implementation

3. Analysis

4. Action

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1. Preparation

Assemble analysis teamStaffBoard

Assemble Program Profiles— distribute to team in advance

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Program Profile Program purpose and

history Customer Profile—who is

targeted, served, trends, challenges

Primary program activities—addresses hallmark areas?

Outcomes--customer and other

Funding—sources, trends, deficits

Staffing—requirements, status and challenges

Competition—others currently providing or planning to provide the same or similar services

Factors that distinguish this program from similar or other efforts

Other groups/ organizations the program does or should interact with and how

Other special Issues both positive and negative

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1. Preparation (continued)

Assemble analysis team Staff Board

Assemble Program Profiles— distribute to team in advance

Distribute first part of Program Analysis handouts (Overview, steps, Program Profile form and example, Criteria & Ratings Worksheet)

Identify additional information Mission, Vision Strategic Plan

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2. ImplementationPresent, review program profiles and

discussClassify each program according to 4

criteriaAlone, silentlyDiscuss, reach group consensus

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Matrix Criteria

1. Fit




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2. Implementation (continued)

Present, review program profiles and discuss

Classify each program according to 4 criteriaAlone, silentlyDiscuss, reach group consensus

Note decisions on Worksheet

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MacMillan Matrix Worksheet

Program Fit Economic Attractiveness

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Program A

x x x x

Program B

Program C

Program D

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2. Implementation Present, review program profiles and discuss Classify each program according to 4 criteria

Alone, silently Discuss, reach group consensus Note decisions on MM Worksheet

Place Programs on the M Matrix (distribute remaining sections of Program Analysis handouts—Applying Results, Matrix and Cell Definitions.)

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MacMillan MatrixHigh Economic Attractiveness(Easy to attract resources for support)

Low Econonic Attractiveness(Difficult to attract resources for

support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW

Strong Competitive Position

1. Aggressive Competition

2. Aggressive Growth

5. Reinforce Best Competitor or Find Partner

6. “Soul of the Agency”

Program A

GOOD FIT

Weak Competitive Position

3. Aggressive Divestment

4. Invest, Find Partner or Divest

7. Consider Partner or Divest

8. Find Partner or Divest

9. Aggressive Divestment 10. Orderly Divestment POOR FIT

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3. Analyze Results

What do cell recommendations suggest?

Implications for Individual Programs?What does our Program Portfolio Look

Like?What are the implications for the future?

For organizational sustainability?

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4. Take Action

Develop plan for implementing results Implement PlanUse results in strategic planning

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Using the Criteria to Rate Programs

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Matrix Criteria

1. Fit




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Alternate Coverage



Job Training

Other program

Other program

Other Program

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1. Fit -- degree to which a program

"belongs" or fits within an organization (Good or Poor)

Congruence with mission/purpose vision? Address ywca brand? Hallmarks?

Organization has existing skills and competencies?

Able to share resources and coordinate activities with other programs?

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Alternate Coverage



Job Training

X

Other program

Other program

Other Program

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2. Economic Attractiveness— revenue availability (High or Low)

Current stable funding? (consider all costs, including overhead)

High appeal to funders, supporters?

High market demand? Measurable, reportable

outcomes/results?

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Alternate Coverage



Job Training

X X

Other program

Other program

Other Program

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3. Alternate Coverage-- competition (High or Low)

Are similar services provided? Do customers have many other

choices? Competitors now and future?

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Alternate Coverage



Job Training

X X X

Other program

Other program

Other Program

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4. Competitive Position-- stronger capability and potential to deliver the service

than current or emerging competitors (Strong or Weak)

Good location, logistical delivery system?

Will customers remain? Grow?

Is quality superior? Record of securing

grants, funding?

Stable staffing? Ability to maintain and

continually increase competency?

Cost effective? Strong connections

with consumers and stakeholders?

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Alternate Coverage



Job Training

X X X X

Other program

Other program

Other Program

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Placing Programs on the MacMillan Matrix

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Alternate Coverage



Job Training

X

Racial Justice

Women’s Leader-ship

Child Tutoring

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MacMillan Matrix

High Econ. Attractiveness(Easy to attract resources for support)

Low Econ. Attractiveness(Difficult to attract resources for

support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Job Training

Fit: GOOD

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Alternate Coverage



Job Training

X X

Racial Justice


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Job Training

Econ. Attractiveness: HIGH

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Alternate Coverage



Job Training

X X X

Racial Justice


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Job Training

Alternate Coverage: LOW

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Alternate Coverage



Job Training

X X X X

Racial Justice


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT



4. Invest, Find Partner or DivestJOB TRAINING




Job Training

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Cell 4. Invest, Find Partner, or Divest. Worthwhile investment when resources available

for improving its competitive position -- after programs in Cell 1 have been taking care of.

If investment resources do not exist, become candidates for finding a partner.

There is opportunity here due to the availability of resources and low competition that could be pursued with a strategic partner.

If neither alternative works out, abandon the programming -- it is unlikely to assume a competitive position on its own.

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Alternate Coverage



Job Training

X X X X

Racial Justice

X


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Racial Justice

Fit: GOOD

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Racial Justice

Econ. Attractiveness: LOW

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Racial Justice

Alternate Coverage: LOW

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW





6. “Soul of the Agency”RACIAL JUSTICE

GOOD FIT







Racial Justice

Competitive Pos: STRONG

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Cell 6. Soul of the Agency.

Do not have easy access to resources on their own

Agency is committed to delivering even at the cost of subsidizing with resources from other programs

Makes special or unique contribution to customers and mission

No organization can afford to support an unlimited number of "soul" programs

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X

Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Women’s Leadership

Fit: GOOD

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X

Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Women’s LeadershipEcon. Attractiveness: HIGH

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X

Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Women’s LeadershipAlternate Coverage: LOW

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X X

Child Tutoring

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW



2. Aggressive GrowthWOMEN’S LEADERSHIP



GOOD FIT







Women’s LeadershipCompetitive Position: STRONG

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Cell 2. Aggressive Growth. There are substantial resources, plentiful

consumers, and few competitors High priority for attention as the

organization given significant opportunity to build market share.

As others recognize the organization's success, the competition will increase -- so timely investment in growth is imperative.

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X X

Child Tutoring

X

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Child Tutoring

Fit: POOR

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X X

Child Tutoring

X X

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Child Tutoring

Econ. Attractiveness: LOW

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X X

Child Tutoring

X X X

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT







Child Tutoring

Alternate Coverage: HIGH

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Alternate Coverage



Job Training

X X X X

Racial Justice

X X X X


X X X X

Child Tutoring

X X X X

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW






GOOD FIT






9. Aggressive Divestment 10. Orderly DivestmentCHILD TUTORING

POOR FIT

Child Tutoring

Competitive Pos: STRONG

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Cell 10. Orderly Divestment.

This program is both unattractive and a poor fit. However, it is desirable to eliminate these services gradually and if at all possible without harm to consumers.

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Reviewing Results

How sustainable is our service portfolio? Can and should we do something to

improve the position of some programs? What are our next steps?

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MacMillan MatrixHigh Econ. Attractiveness(Easy to attract resources for support)


support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW



2. Aggressive GrowthWOMEN’S LEADERSHIP


6. “Soul of the Agency”RACIAL JUSTICE

GOOD FIT



4. Invest, Find Partner or Divest JOB TRAINING



9. Aggressive Divestment 10. Orderly DivestmentCHILD TUTORING

POOR FIT

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW


1. Aggressive Competition FINANCIAL LITERACY



6. “Soul of the Agency”RACIAL JUSTICETEEN GIRLS

GOOD FIT






9. Aggressive Divestment 10. Orderly Divestment AQUA FITNESS

POOR FIT

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MacMillan Matrix



support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW



2. Aggressive GrowthFINANICAL LITERACY

5. Reinforce Best Competitor or Find PartnerWOMEN’S FITNESS

6. “Soul of the Agency”RJ EDUCATION

GOOD FIT



4. Invest, Find Partner or Divest JOB TRAINING




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Program Analysis Applications

Generate data for strategic planning Check on “hunches” or assumptions Analyze programs against new vision,

strategic plan Evaluate new program ideas,

opportunities

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Tips for Engaging in Program Analysis

Base analysis on data; develop high quality “program profiles.”

Be clear about programs’ financial status, including income, overhead.

Challenge assumptions. Use a facilitator to assist with objectivity—especially for

existing programs. Avoid second guessing results. Document issues that surface; helpful for future planning. Develop a plan and act on it! Re-apply criteria in the future.

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QUESTIONS?

Contact:

Shelly Schnupp [email protected]

Documents

1 Program Analysis Using the MacMillan Matrix and Related Tools YWCA Great Lakes Alliance July 2012 Shelly M. Schnupp SMS and Associates