The Matrix Map Process Intended Impact Steve Zimmerman

Our conversation ü ü ü ü Introductions Sustainability Overview Nonprofit Business Models Intro to

Introductions • Name • Organization • Role with the organization • How long involved?

Introductions ü Line up by budget size… ü …then by mission… ü …then by

Defining Business Models What is a business model? “A business model is a company's

Defining Business Models But, nonprofit business models work differently than for-profit models v Those

Defining Business Models Nurturing the business model requires constant consideration of: - Nonprofit Quarterly

Defining Business Models Your hypothesis about which impacts will engage human and financial participation

Defining Sustainability encompasses both: Financial sustainability (the ability to generate resources to meet the

Profitability Determining Profitability Organization Surplus Deficit Surplus

The Matrix Map What is the right revenue strategy for our organization?

“Maintaining multiple, highly diverse revenue streams can be problematic when each requires, in essence,

How do we find the “right revenue” strategy?

SUSTAINABILITY is an orientation, not a destination.

Sustainability involves ongoing decision making about your business model.

Leadership Financial Strategy Impact Strategy

Tools for Decision Making Mission Impact Assessment Matrix Map & Strategic Imperatives True Cost

Matrix Map Process Articulate Intended Impact Define Programs Assess Mission Impact Determine Profitability Analyzing

Cohort Goals ü An in-depth understanding of your organization’s business model as picture by

Cohort Goals Your Turn What are your goals for this project?

Intended Impact Defining Intended Impact A statement or series of statements about what the

Intended Impact Mission Intended Impact Improve the lives of poor children in America’s most

Intended Impact Mission Intended Impact To guide the growth of at risk youth in

Indented Impact Questions to Ask 1. What is the specific anticipated change our organization

Intended Impact WHO HOW IMPACT LONG-TERM VALUE MEASURE

Determining Programs What are your core programs or services? Programs / Services Intended Impact

Determining Programs What are your core programs? Programs Mission-Specific Programs Fund Development Programs Anything

Next Session In-Person o Mission Impact and Profitability

You’re not alone. . The Spectrum team is here to help: Steve Zimmerman Steve

Homework • Complete intended impact outline & statement • Finalize program listing Submit to

Steve Zimmerman stevez@spectrumnonprofit. com 414 -226 -2322 www. spectrumnonprofit. com

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The Matrix Map Process & Intended Impact Steve Zimmerman, CPA, MBA Spectrum Nonprofit Services @Spectrum. Steve

Our conversation ü ü ü ü Introductions Sustainability Overview Nonprofit Business Models Intro to the Matrix Map Strategic Issues Articulating Intended Impact Defining Programs Next Steps

Introductions • Name • Organization • Role with the organization • How long involved?

Introductions ü Line up by budget size… ü …then by mission… ü …then by role in your organization.

Introductions

What is Sustainability?

Defining Business Models What is a business model? “A business model is a company's plan for making a profit. It identifies the products or services the business will sell, the target market it has identified, and the expenses it anticipates” --- Investopedia

Defining Business Models But, nonprofit business models work differently than for-profit models v Those paying for funds are often not the same as those receiving services and may value the service differently v Donors can restrict funds v We often “price” work at below actual cost v We may draw on volunteers and in-kind donations v We are not expected to be profitable, but we must be.

Defining Business Models Nurturing the business model requires constant consideration of: - Nonprofit Quarterly

Defining Business Models Your hypothesis about which impacts will engage human and financial participation § From here, a chosen set of mission specific and fund development activities that work together to achieve BOTH mission impact and financial viability. § Every organization’s set of activities is unique and represents management’s and the community’s best thinking of how to be sustainable.

What is Sustainability?

Financial Strategy

Impact Strategy Financial Strategy

Defining Sustainability encompasses both: Financial sustainability (the ability to generate resources to meet the needs of the present without compromising the future) and Programmatic sustainability (the ability to develop, mature, and cycle out programs to be responsive to constituencies over time. ) - - Nonprofit Sustainability: Making Strategic Decisions for Financial Viability

Impact Strategy Financial Strategy

The Matrix Map

Sample Matrix Map Impact Profitability

Relative Impact

Profitability Determining Profitability Organization Surplus Deficit Surplus

The Matrix Map What is the right revenue strategy for our organization?

SHOW ME THE MONEY!

“Maintaining multiple, highly diverse revenue streams can be problematic when each requires, in essence, a separate business. Each calls for specific skills, market connections, capital investment, and management capacity. ” Clara Miller “Shattering the Myth About Diversified Revenue” Chronicle of Philanthropy, September 2010

How do we find the “right revenue” strategy?

Sample Matrix Map Impact Profitability

The Nonprofit Market

SUSTAINABILITY is an orientation, not a destination.

Sustainability involves ongoing decision making about your business model.

Leadership Financial Strategy Impact Strategy

Tools for Decision Making Mission Impact Assessment Matrix Map & Strategic Imperatives True Cost / Profitability Template Intended Impact Statement Market Analysis Questions Revenue Assessment Templates Decision Making Implementation Templates

The Matrix Map

Matrix Map Process Articulate Intended Impact Define Programs Assess Mission Impact Determine Profitability Analyzing Your Map Plotting Your Map • Revenue Strategies • Market Analysis Making Strategic Decisions

Cohort Goals ü An in-depth understanding of your organization’s business model as picture by the matrix map, and a framework for making ongoing strategic decision to strengthen your business model. This includes: – A statement or outline of intended impact; – Knowing the true full costs and profitability of your programs; – A structured discussion to assess the relative impact of each program; – Knowledge of the organization’s revenue mix; – Understanding how the market has influenced the business model. ü Initial strategic priorities to strengthen the organization’s business model and sustainability.

Cohort Goals Your Turn What are your goals for this project?

Strategic Issues

Intended Impact Defining Intended Impact A statement or series of statements about what the organization is trying to achieve and will hold itself accountable for within some manageable period of time. It identifies both the benefits the organization seeks to provide and the beneficiaries. - - - Susan Colby, Nan Stone & Paul Carttar Bridgespan Group

Intended Impact Mission Intended Impact Improve the lives of poor children in America’s most devastated communities. Harlem Children’s Zone (HCZ)will focus on children aged 0 to 18 living in the HCZ making a successful transition to an independent, healthy adulthood, reflected in demographic and achievement profiles consistent with those in an average middleclass community.

Intended Impact Mission Intended Impact To guide the growth of at risk youth in order that they reach their potential and live responsibly. Youth and young adults up to age 26 and their families with a lack of formal support and resources who have experienced trauma and exhibit maladaptive behaviors will be productive members of society as measured by being: • Financially stable • Connected with the community • In healthy relationships • Law abiding

Indented Impact Questions to Ask 1. What is the specific anticipated change our organization hopes to achieve as a result of our efforts? 2. If we went away, who would it matter to and why? 3. Who are our direct beneficiaries? Who or what are we ultimately trying to serve? 4. What is the geographic region of our impact? 5. What does success look like and how can it be measured?

Intended Impact WHO HOW IMPACT LONG-TERM VALUE MEASURE

Intended Impact

Determining Programs What are your core programs or services? Programs / Services Intended Impact • How our organization accomplishes impact. • How our organization finances impact. • Day-to-day activities. • The outcome of our efforts.

Determining Programs What are your core programs? Programs Mission-Specific Programs Fund Development Programs Anything on which your organization spends a significant amount of effort or resources (time or money) on.

Determining Programs

Our Timeline

Next Session In-Person o Mission Impact and Profitability

You’re not alone. . The Spectrum team is here to help: Steve Zimmerman Steve Strang Chris Fink

Homework • Complete intended impact outline & statement • Finalize program listing Submit to tampa@spectrumnonprofit. com And let us know if you have any questions!

Steve Zimmerman stevez@spectrumnonprofit. com 414 -226 -2322 www. spectrumnonprofit. com