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The Role of Technology in Managing the Operations of a Nonprofit
Kelly Bleach – American Foundation for the BlindPeggy Duvette – NetSuite Social Impact (Oracle) – @PeggyDuvette
Steve Heye – NetSuite Social Impact (Oracle) @SteveHeye
HASHTAG #17NTCoperations Collaboration Notes Link: http://po.st/17NTCoperationsMarch 2017
Time to buildUse the Legos to build a car.
Improve our Legos?What could we do to solve our problem in building the final car?
Define OperationsWe took a survey to see how people defined operations:• Managing resources directed to programs – 0 votes• Managing day to day activities of organization – 3 votes • Administration of business practices to create efficiency – 0 votes• All of the Above – 5 votes• Managing resources directed to programs and Managing day to day
activities of organization – 2 votesWrite in vote for
“Transformation of resources to
meet mission, efficiently”
What is the purpose of Operations?
StrategyBudget
Performance
Outcome Driven -
What you care about has to be
articulated in terms of impact
Drive Plan
PolicyManagement
Data
Govern and drive the structure and
controls across organization
Administrate
PeopleProcess
Tools
Manage activity across
organization
Manage
LegalReporting
Finance
Table Stakes – CFOs of today expect FP&A
(financial planning &
analysis)
Comply
Peggy DuvetteDirector of Social Impact
NetSuite – Oracle
• 15 years nonprofit tech experience
• Wrote Chapter 6 in Nonprofit Fundraising 101
• Previous job was ED of WiserEarth
• Failed many times with tech implementation
Kelly Kern Bleach, PMPChief Business Officer
American Foundation for the Blind
• 30+ years nonprofit operationsexperience
• Oversees finance, facilities, information technology, web development,
& product fulfillment• Certified PMP “for the fun of it”
Steve HeyeSolution Consultant Social Impact
NetSuite – Oracle
• 20 years nonprofit tech experience• Wrote Chapter 1 in Managing
Technology to Meet Your Mission• Previous job was Manager of
Technology at The Cara Program• Taught Windows 3.1 at one of his
previous jobs
Perspective
IT & FinanceOperationsExecutive
Role of the Strategic Plan
Strategic Plan
• Sets the direction
Operating Plan
• Outlines “how”
Budget • Resources available
Tools:Policies
ProceduresProcessSystems
Mission-Vision
Goals for Depts.
Progression
– this is a gradual process
Decide what to change
Things to review• Processes• Structure• Governance• Policies• Systems
High Level Strategy• Impact Analysis• Balanced
Scorecard• Gap Analysis
Simple Tools• ROI• Benefit Analysis• Audit• Assessment
Decide what to change - examples
Simple Complex
Use Internal Resources
Pro Bono or Volunteer (Taproot)
Consultant
External Assessment
Audit
Intern
Fellowship
Bookkeeping System
OPERATIONS DEBT DATA
Organization needs
Work Around Spreadsheet
This other free tool we foundWork AroundSpreadsheet
Online Tool
Spreadsheet to pull spreadsheets together
OPERATIONS DEBT DATA
2014
2014
Program Growth Operating Systems
2016
2015
2016
2015
As our programs grow we adjust and scale our processes, systems and plans to manage them.
But as our operations reporting and tracking needs grow we look for work-arounds and push to stay in the same system as long as possible.
This leads to a major project to replace it.
Scale Operations Continuously
2014
2014
Program Growth Back Office Growth
2016
2015
2016
2015
VS
Strategic Plan
Program Growth
Evaluate Operation
s
Scale Operation
s
Modern Finance/ERP System
Organization needs
FINANCES – START SIMPLE BUT ON A PLATFORMKeep Records• Track income and expense• Simple lists• Daily Transactions
Reporting• Compliance• Basic Statements
Starting simple in a cloud platform will allow you to scale, even if you only use base functionality to start
MIND & MELODY – NETSUITE.ORG GRANTEE
Bookkeeper Role• Track income and expense• Simple lists of daily transactions
Reporting• Compliance• Basic Statements
Tools• Excel
http://www.mindandmelody.org/
Staff Overview• No paid staff, 3 key leaders (tech savvy -
virtual team), volunteers are key• Basic financial skills
Mind & Melody is a 501(c)(3) organization focused on using music to improve the lives of people experiencing dementia and other forms
of memory loss. We create and implement interactive music programs at healthcare
facilities across Florida!
MIND & MELODY – THE CHALLENGE
Bookkeeper Role• Track income and expense• Simple lists• Daily Transactions
Reporting• Compliance• Basic Statements
Tools• Excel
Challenges:• Limited analysis & depth of detail• Not real time• Lack of access & visibility to staff-board• Isolated from other data• Relies on manual processes
MIND & MELODY – THE SOLUTION
Financial Management• Customizable Accounting• Full budgeting process
Reporting• Financial Statements• Real time dashboards
Tools• NetSuite
Benefits:• Formal reports builds credibility for us, telling
our donors “This is not a side job”• Stronger financial insight & understanding• Allows collaboration for virtual team• Ready to scale for org growth
AFB’s ContinuingJourney
2005: still used a DOS based accounting system
2013: migrated order-processing away from warehouse
2015: customized CRM to manage donor database
2006: implemented MS Dynamics Navision
2010: switched to NetSuite accounting platform
2017: key relationships initiative integrating vendors, customers, and donors
Operations Systems Reality• How do I convince management and board to invest?• Where does the money come from?• How do I invest in a system but not increase my overhead ratio?• Where do we get the skills and tech to manage the system?• Where do we find the time?
Data-process-system
Plan tracked with FinancialsBudget
Financials shared with
staffBudget
Vs Actual
All staff use resources
wiselyDecisions
Plan tracked in PM tool
Operating plan
Set milestones and goals
Project Manage
Progress toward goal measured
Work the Plan
Stored digitally
Strategic plan
Measure changes with
dataSet KPIs- Metrics
Adjust Operating and
BudgetAdjust
So what can we do?
Scale Operations Continuously
Evaluate In-House,
Outsourcing and Automation
Balance Sophistication
and Simplification
Change Management
Evaluate In-House, Outsourcing and Automation
In-House
• Builds org capacity
• Allows shared roles
Outsource
• Deeper expertise• Best Practices
Automation
• Scalable• Dependable
• Limited expertise• Single Point of
Failure
• Lose some control • Cost
• Need to maintain• Needs consistency
Examples In-House, Outsourcing and AutomationNew Org Grows Expands
Human Resources
Single Exec staff person does multiple roles
Outsource payroll & HR, hires office manager
Hire HR team, buys HR software, outsource payroll
Technology Single Exec staff, free hosted tools, volunteer helps
One IT staff to keep things running, outsource rest
Tech team, automated support tools & integrated solutions
Finance Single Exec staff with spreadsheets and an outside accountant
Simple system with a bookkeeper and outside auditor
Integrated financial management with CFO
Data Systems Excel, assortment of free tools and maybe a database
Multiple systems for functional areas
Centralized data analysis and business intelligence
What does it look like on a day to day basis to track your operations in a system?
youth programs which tracked daily participation -- since the
strategic goal was to divert youth during the high crime
after school hours -- the linkage between recreation capacity &
strategic goals (crime reduction) was fairly simple. - David Geilhufe
Client demographics in case management system to measure if demographic trends are consistent
with service delivery & funding priorities. – Ken Montenegro
membership goals / tracked via BI website - John Merritt
We track the number of each type of client interaction, fee for service revenues, types of clients
served, etc. - Cindy Leonard
A local Kids Museum measures daily visitor stats and tracks their strategic growth goals.
They have POS system that's connected to their membership system to correlated tracking of
members benefits – Birgit Pauli-Haack
We (an ESOP not a non-profit) track progress toward strategic goals at our business unit level. We set annual
goals, but reevaluate quarterly based on changing business objectives and environment. We don't have a
unified goal management system as a company but delegate responsibility to each business unit and team to
operationalize their work. - Matthew Eshleman
70% of the survey respondents said they had been successful leadership team (as a staff or board member of an NGO) to invest in an operational system
CONNECT DOLLARS TO OUTCOMES
WorldVision, 2016
NonprofitERP like NetSuite
• Real Time• Link financials to outcomes• Manage to the mission
That investment generates around70 cents worth of grants anddonated goods.
So about 40 cents invested becomes around 70 cents in care for children and communities.
The bottom line?
Every $1 you donate = $1.30 in impact
175% return
DevelopmentExperts
DisasterReadiness
DonatedGoods
ReliableSystems
Fundraising &Administration
Tools Avoid the stack of individual solutions (when possible, but look to integrate back when you can’t)
Find a platform (like NetSuite) to centralize your data and operations
Operational Needs• Project
Management• Expense Reports• Timesheets• Budget• Forecasting and
planning• KPI – performance
reporting
So what does this solve• More visibility to financials• Track progress on goals and
impact• Drive better strategic planning
and budgeting• Save time and allocate
appropriately• Stronger information for Boards
to drive high level conversation• Reducing the gap between the
Board and Operations
Operations
Dollars to Outcomes
Data Informed Decisions
Change Management
Transparency
Increased Sustainability through Data
Informed Decisions
Strengthen donor
support through
transparency
Increased Program
Effectiveness by tracking dollars to outcomes
Harmony across
departments through Change
Management
Thank you, please take the survey!• Session Specific Hashtag: #17NTCoperations• Collaboration Notes Link: http://po.st/17NTCoperations • Session Evaluations: http://nten.org/17ntc-evals/
Kelly [email protected]
Peggy [email protected]
Steve [email protected]
The following slides are extra information we didn’t have time to present but wanted to share
So why don’t we think about this more?
Knowledge
• Expertise• Skills
Fear
• Experience• Risk
Status Quo
• History• Comfort
No Urgency
• Not broken• Hidden
BALANCE SOPHISTICATION AND SIMPLIFICATION
Simple Complex
Specialization
Unique Process
Levels of Management
Basic
Best Practice
Is it mission critical or mission
impact?Is it a common process or challenge?
Balance the Strategic and Operations
Figure 1: Stephen R. Covey's Time-Management Matrix from The 7 Habits of Highly Effective People, New York: Simon & Schuster, 1989, p. 146.