Markets Collaboration Assessing Your Market Identifying Partnerships Steve
Markets & Collaboration: Assessing Your Market & Identifying Partnerships Steve Zimmerman, CPA, MBA Spectrum Nonprofit Services @Spectrum. Steve
Impact Strategy Financial Strategy
Matrix Map Process
Pursuing Sustainability Market Analysis Intended Impact Mission Impact Assessment Matrix Map True Costs Determine Profitability Revenue Alloc. Revenue Strategies Strategic Decisions
Our Conversation Today ü Sustainability and markets ü Understanding your market: – – – Direct beneficiaries Other beneficiaries/funders Other organizations/partners Inputs/labor market Political and social environment ü Assessing your market to identify opportunities
Has your revenue changed?
Pursuing Sustainability Community
What do we do? A framework for understanding your market Prioritizing where to begin
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
The Nonprofit Market Direct Beneficiaries The core constituents with whom an organization works.
Direct Beneficiaries IMPACT WHO HOW LONG-TERM VALUE MEASURE
Direct Beneficiaries: Example At risk youth between the ages of 8 -16 Alumni up to age 25 Families of youth
Direct Beneficiaries What do we want to know? • What are their demographics and how are they changing? • What are their needs? Are they changing? • Where else do they go for services? • How engaged with your organization are they? • Are they satisfied?
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
The Nonprofit Market What is an “Other Beneficiary? ” Those who benefit from a nonprofit’s impact Other Corporations Government / General Public Schools Statement in Demographics 24 point font / Interest Groups Nearby Residents / Homeowners
Other Beneficiaries: Example Runaway and Homeless Youth Center. Youth Symphony Orchestra 1. Families 1. Schools 2. Court system / Government 2. Families 3. Neighborhood 3. Music teachers 4. Schools 4. Music businesses 5. Counselors 5. Corporations (school activities) 6. Businesses
Other Beneficiaries Questions to ask: o How do they benefit from your organization’s impact? o Are they aware of your organization and its impact? o What other interests do they have? o Is your organization’s impact an emerging or declining interest for them?
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
Collaboration Other organizations: Nonprofits, For-Profits, Government Agencies Organizations you partner or collaborate with or who may offer complementary services to your constituents Organizations that offer similar services or programs that you compete with for constituents or funders. Who do they serve? o Constituents? o Geography? What programs do they offer? o How are we different from them? o Where are we creating program duplication? o In what ways are the problems our organizations are trying to redress being met by other market forces/ideas? How are they funded? Could we partner with this organization?
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
Where to begin? 1. How quickly is the market component changing? 2. How significantly will the change impact the organization’s sustainability?
Prioritizing On a scale of 1 to 5, with 5 being high, answer the following questions: Aspect Direct Beneficiaries Other Organizations Inputs / Labor Market Political and Social Environment How quickly is the market changing? How significantly will the change impact the organization’s sustainability? Total
Prioritizing On a scale of 1 to 5, with 5 being high, answer the following questions: Aspect How quickly is the market changing? How significantly will the change impact the organization’s sustainability? Total Direct Beneficiaries Other Beneficiaries 8 to 9: Understand more in-depth Other Organizations Inputs / Labor Market Political and Social Environment 5 to 7: Monitor closely 2 to 4: Monitor Periodically
Prioritizing On a scale of 1 to 5, with 5 being high, answer the following questions: Aspect How quickly is the market changing? How significantly will the change impact the organization’s sustainability? Total Direct Beneficiaries 3 5 8 Other Beneficiaries 4 5 9 Other Organizations 2 4 6 Inputs / Labor Market 1 1 2 Political and Social Environment 2 3 5
Prioritizing On a scale of 1 to 5, with 5 being high, answer the following questions: Aspect How quickly is the market changing? How significantly will the change impact the organization’s sustainability? Total Direct Beneficiaries 3 5 8 Other Beneficiaries 4 5 9 Other Organizations 2 4 6 Inputs / Labor Market 1 1 2 Political and Social Environment 2 3 5
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
• Does our staff reflect the constituents we serve? • Do we have a diverse and inclusive culture? • What is our turnover rate? • Are we conducting exit interviews with people leaving and what do they tell us? • How long does it take to fill open positions? • Are we having trouble recruiting talented individuals? • What is the ratio of our lowest to highest salary? • How much do we invest in professional development? • Do we partner with and empower our staff to lead, valuing their experience and input in guiding the organization?
• Is there public awareness about the importance of the organization’s mission? • Has that awareness increased or decreased? • Is the issue controversial? • Is there general social support for the organization’s intended impact? • Is there support for the organization’s strategies to accomplish impact? • Is there political support for the organization’s impact and strategies for accomplishing impact? • Who are the key voices on the organization’s issue in the local, state and federal government and do we have any contact or connection with these people? • Are our board members adequately briefed and do they understand their role in advocacy?
The Nonprofit Market Social / Political Environment Direct Beneficiaries Other Beneficiaries / Funders Inputs / Labor Other Organizations
Who to engage?
Summary 4 Quick Take Aways Recognize the influence that external forces have on your organization’s business model. Expand your definition of “Market Analysis. ” Social / Political Environm ent Direct Benefici aries Inputs / Labor Other Organizati ons Engage your board and staff in thinking about external influences on your organization. Focus on those segments that are changing quickly and have significant impact on your sustainability. Other Benefici aries / Funders
Next Session In-Person o Key messages of the Matrix Map
Pursuing Sustainability Market Analysis Intended Impact Mission Impact Assessment Matrix Map True Costs Determine Profitability Revenue Alloc. Revenue Strategies Strategic Decisions
Strategic Decision Making ü Intended impact ü Matrix map – Program impact assessment – Program profitability ü ü ü Revenue map Market analysis Strategic inquiries Business model statement Strategic priorities
Homework Reminder If you haven’t already done so: üSubmit your mission impact scores, profitability information, and revenue source ratings to tampa@spectrumnonprofit. com And let us know if you have any questions!
You’re not alone. . The Spectrum team is here to help: Steve Zimmerman Steve Strang Sofia Jonas
Steve Zimmerman stevez@spectrumnonprofit. com 414 -226 -2322 www. spectrumnonprofit. com
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