The art of Wealth Decision Making
PLANNING FOR SUSTAINABILITYIN EMERGING NONPROFITS
A course offering of the Center for Nonprofit ExcellenceMarch
20, 2015Presented by Sam Davis Principal, The Davis Group
1COURSE OUTLINE AND TIMEFRAMES9:00 - 9:30Introductions;
Objectives/Expectations9:30 - 10:15Nonprofit
Lifecycles10:15-10:45Case Study #110:45 -11:30Characteristics of
Small & Early-Stage NPs11:30-12:00Review Self-Assessment Survey
Results12:00-1:00Lunch1:00 - 1:30Capacity Building1:30-2:00Case
Study #22:00-2:45Strategically Building
Sustainability2:45-3:45Working on Your Sustainability Plans
3:45-4:00Taking it Home; Adjourn2OBJECTIVESTo gain an understanding
of Nonprofit Lifecycles and capabilities required at each stage
To understand the benefits of self-assessments and assessments
of internal strengths and weaknesses
To learn to think strategically about capacity building.
To enhance your ability to strategically build long-term
sustainability for your organization.
3NONPROFIT LIFECYCLESSource: Nonprofit Lifecycles by Susan Kenny
Stevens4
TurnaroundRENEWLIFECYCLE PRINCIPLESSource: Susan Kenny Stevens
Diagnostic, not deterministic
May not be evolutionary or sequential
Not age or size dependent
Some capabilities may be at different stages
Used to set realistic expectations
Characterizes capabilities in an objective fashion
Sets the context for strategic thinking and action57 STAGES OF
NONPROFIT CAPACITYSource: Susan Kenny StevensIdea Stage Magnificent
Obsession
Start-Up Stage The Labor of Love
Growth Stage Becoming Who You Are
Maturity Stage Maintaining Your Edge
Decline Stage Someone You Used to Be
Turnaround Stage The Rubber Meets the Road
Terminal Stage Alive in Name Only6LIFECYCLE STAGE 1:
IDEAGovernance None
Strategy Inspired vision; vague strategies
Program Not clearly defined but commitment to serve
Management Founders are committed volunteers
Marketing General audiences; lack of resources
Resources Sweat equity; limited access to capital
Infrastructure Generally lacking; borrowed services7LIFECYCLE
STAGE 2: START-UPGovernance Members with personal connection
Strategy Focused initiatives; outcomes lacking
Program Simple, experimental; breadth not depth
Management Founder led; part-time staff; volunteers
Marketing Founder is the brand; trial and error
Resources Low budget; grant dependent
Infrastructure Financial and admin weak or outsourced
8LIFECYCLE STAGE 3: GROWTHGovernance Board formalizes; board
committees
Strategy Simple strategic plan; priorities change rapidly
Program Defined programs; differentiation from others
Management Leaders see potential and manage change
Marketing Begin build brand, target audiences
Resources Diversified income sources; expand donor base
Infrastructure Financial systems maintain accountability
9LIFECYCLE STAGE 4: MATURITY/STABILITY Governance Board sets
direction; policy oriented
Strategy Formal strategic plan; outcome measures
Program Organized; results focused; meet community needs
Management Strong executives; staff development
Marketing Targeted audiences; diverse media; resources
Resources Multiple revenue sources; broad donor base
Infrastructure Effective financial, program and IT systems
10LIFECYCLE STAGE 5: DECLINE/RENEW Governance Board unaware;
hands-off; status quo
Strategy Outcomes not achieved; need turnaround
Program Program costs high, losing clients to competitors
Management Lacking strategic vision; blaming others
Marketing Brand value in decline; not reaching audiences
Resources Fixed costs heavy; cash management challenges
Infrastructure Systems antiquated, upgrades not
funded11LIFECYCLE STAGE 6: TURNAROUND Governance Committed core
lead call for strategic change
Strategy Creative, entrepreneurial thinking emerges
Program Restructured in light of market needs and financial
viabilityManagement Turnaround leader sets clear direction,
inspires others to followMarketing Brand revitalized; key audiences
targeted
Resources Key donors engaged; cost structure revamped
Infrastructure Financial and information systems
revitalized12LIFECYCLE STAGE 7: TERMINAL Governance Board unaware;
hands-off; status quo
Strategy Outcomes not achieved; strategies stale
Program Results unreliable and seriously underfunded
Management Lacking strategic vision; blaming others
Marketing Brand value in decline; not reaching audiences
Resources Donors have given up; deficits accumulate
Infrastructure Systems virtually abandoned; ad hoc workflow
13THINKING STRATEGICALLY, WHAT DOESYOUR ORGANIZATIONS LIFE STAGE
SUGGEST?Do board members assume roles and responsibilities
consistent with the requirements of your life stage?Do you (does
your organization) have a clear vision of the future and a roadmap
for getting there?Do you provide essential services that are
different from other organizations and delivered in a cost
effective manner?Is your ED a visionary leader who inspires others
to follow?Is your brand understood by clients and donors alike?Are
you generating the financial resources you need to attract and
retain key employees and deliver high quality programs?Are your
financial and other information systems optimal?
14NONPROFIT LIFECYCLESAND YOUR ORGANIZATIONWhere are you today
on the Lifecycle graph?Where is the momentum in your
organization?What are the core strengths and weaknesses of your
organization?Thinking strategically, what challenges lie ahead?What
options might you consider for addressing these challenges?How
might you ensure your organization is thinking strategically and
building sustainability?1516
MAINTAINING THE STATUS QUOIS NOT AN OPTIONCASE STUDY
#117CHARACTERISTICS OF START-UPAND EARLY STAGE NONPROFITSCrawl,
Walk, RunMission, Values and CultureSize MattersBoard, Staff,
VolunteersProgramsSystemsBusiness Model; Theory of ChangeFinancial
ResourcesSetting PrioritiesRole of the Executive Director18REVIEW
OF SELF-ASSESSMENT SURVEY RESULTSAT WHAT STAGE IS YOUR ORGANIZATION
TODAY?
WHAT ARE YOUR KEY STRENGTHS AND WEAKNESSES?
WHAT CAPABILITIES DO YOU NEED TO DEVELOP?
HOW WILL YOU FIND THE NECESSARY RESOURCES?
HOW WILL YOU MEASURE YOUR PERFORMANCE?19LUNCH20BUILDING
NONPROFIT CAPACITYWhich comes first the chicken or the egg?1.
MISSION AND PROGRAMS
2. GOVERNANCE
3. FINANCIAL RESOURCES
4. STAFF AND OUTSOURCED CAPABILITIES
5. BRANDING AND STRATEGIC COMMUNICATIONS
6. SUPPORT SYSTEMS
7. EXECUTIVE FUNCTIONING21CASE STUDY #222STRATEGICALLY BUILDING
SUSTAINABILITYFIVE PHASES OF GROWTH
HAND-OUT23STRATEGICALLY BUILDING SUSTAINABILITYBoard
DevelopmentStrategic Planning & ManagementPrograms, Evaluation,
ImpactFinancial CapacityMarketing & Strategic
CommunicationsTalent ManagementInfrastructure24STRATEGICALLY
BUILDING SUSTAINABILITYBoard DevelopmentGenerative, Strategic and
Fiduciary ResponsibilitiesSetting ExpectationsTime, Talent and
TreasureSelection Criteria and DiversityLeadership
SuccessionGovernance vs Volunteer RolesBoard CommitteesEffective
Meeting ManagementSelf-Assessment
25STRATEGICALLY BUILDING SUSTAINABILITYStrategic Planning &
ManagementStrategic Thinking; Generative Thinking
Setting Priorities
Internal Analysis; Environmental Scan
Strategic Planning & Implementation
Strategic Business Plans
Measuring Outcomes; Tracking Success
Emergent Strategies26STRATEGICALLY BUILDING
SUSTAINABILITYPrograms, Evaluation, ImpactNeeds Assessments
Service Delivery and Quality
Program Evaluation and Impact
Diversifying Programs
Strategic Partnerships
Cost Per Unit of Service27STRATEGICALLY BUILDING
SUSTAINABILITYFinancial CapacityFund Development
Diversification of Funding Sources
Resource Development
Financial ManagementBudgetingCash ManagementForecasting
Operating Reserves and EndowmentsRestricted and Unrestricted
Funds28STRATEGICALLY BUILDING SUSTAINABILITYMarketing &
Strategic CommunicationsBuilding Your BrandMessagingUnderstanding
Your AudiencesDonorsClientsStakeholders; etc.Communications
StrategiesMatching Media to Each AudiencePrint; F2F; Broadcast;
Online; Social MediaSecuring Expertise and Resources
29STRATEGICALLY BUILDING SUSTAINABILITYTalent
ManagementExecutive Director, Role and AuthorityDevelopment Plan
& Performance ReviewSenior Management Staff
DevelopmentVolunteersOutsourced Expertise and StaffingFund
DevelopmentFinancial ManagementStrategic
Communications/MarketingInformation Technology30STRATEGICALLY
BUILDING SUSTAINABILITYThe Importance of VolunteersPart-time and
Volunteer Staff
Board Members who volunteer What hat are they wearing?
Meaningful Work
Recruiting and Managing Volunteers
Software can be helpful31STRATEGICALLY BUILDING
SUSTAINABILITYInfrastructureFinancial Management & Reporting
Systems
Donor Databases and Other Development Systems
Strategic Communications
Performance Evaluation and Staff Development
Other Information Systems
Administrative and Program Space Requirements
Teambuilding, Meetings and Other Group Processes32SUSTAINABILITY
PLANSFOR INDIVIDUAL ORGANIZATIONS
IN-CLASS EXERCISE33TAKING IT HOMEReceiving Feedback and
Support
Peer Groups
Additional Resources to Consult34PLANNING FOR SUSTAINABILITYIN
EMERGING NONPROFITS
THANK YOU!
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314-1836
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