One of the clients I’m working with right now is the Muslim Public Affairs Council (MPAC). This is a group of incredibly smart and passionate people who are committed to improving public understanding and policies that impact American Muslims by engaging the government, media, and communities.
The challenges they face as a nonprofit organization are not unique. So I’d like to share their story as a case study.
I met MPAC in 2013. While they had been around for 25 years and aspired to be a truly national organization, MPAC struggled to build a diversified financial model and a donor base beyond southern California. At the same time the organization lacked a coherent strategy for their future work. They wanted to expand their national presence, grow their networks and influence, strengthen and diversify their funding sources, and ultimately increase their impact on a vibrant American Muslim community, but they didn’t know how to get there.
MPAC hired Social Velocity to conduct a Financial Model Assessment to determine what was holding the organization back from growing their revenue and diversifying their funding sources. I interviewed board and staff members and some external constituents to uncover what was holding MPAC back. I also analyzed MPAC’s past financial history, board and staff structure, marketing materials, fundraising activities and more to understand what was working and what was not. I delivered to board and staff a 30+ page assessment that described how MPAC could strengthen their financial sustainability.
One of the biggest things holding MPAC back financially was the lack of a future organizational strategy around which they could rally donors. Upon hearing my findings, the board voted unanimously to undertake a strategic planning process to chart a focused future direction. We then worked over the next 6+ months to develop a 3-year strategic plan to increase MPAC’s impact and financial sustainability.
Because of the new strategic plan we created, MPAC has focused their efforts and resources and are now working to implement the strategic plan and financial model recommendations. They are working to identify outside investors to help fund a growth campaign, expand the board, hire a Development Director, and streamline operations. Board and staff are excited about the new direction and are actively working to bring it to fruition. And to help MPAC in this critical change and growth phase I am coaching staff and board on how to implement the plan and set the organization up for success.
Outside guidance is sometimes critical to moving an organization forward. As Salam Al-Marayati, MPAC’s President and CEO put it:
Nell’s assessment illustrated how we were wasting resources and not connecting prospective donors with a clear message. After the board and staff read the report, we all decided to proceed with a strategic planning process. That exercise, which spanned over 6 months, opened everyone’s eyes. We now have buy-in from our most important stakeholders in the organization – the board – for change. We realized that in order to achieve growth, we have to change internally. Nell helped us to navigate the road to becoming a national organization by changing how we operate internally. Nell’s experience in nonprofit management and fundraising proved to be invaluable in our planning process. We are now beginning to implement the strategic plan are excited about this new era for the organization.
It doesn’t have to be so hard. The mission your board and staff are so passionate about can be achieved in a sustainable way.
You can learn more about how I work with nonprofits on my Consulting page, and you can read more case studies on the Clients page. If you’d like to discuss how I might work with your nonprofit, let me know.
Photo Credit: Evelyn Simak
As I mentioned last month, the Leap Ambassadors (of which I am a member) recently released the Performance Imperative, a detailed definition of a high-performing nonprofit. Because I think the Performance Imperative is so important and every nonprofit leader should understand it and begin to use it, today I am kicking off a series to describe, one-by-one, each of the seven pillars of the Performance Imperative.
I think the Performance Imperative is so exciting because it can serve as a north star to the nonprofit sector, helping organizations analyze their own performance and create a clear roadmap for improvement.
As Lowell Weiss, one of the leading architects of the Performance Imperative, explained in my interview with him last month:
High performance is all too rare in our sector today. In fact, we don’t even have a commonly accepted definition of the term “high performance.” The Performance Imperative is our attempt to create that common definition and then start the process of creating guideposts to help nonprofits who are motivated to improve their performance for the clients and causes they serve.
So, first up in this series on the Performance Imperative is Pillar #1: Courageous, Adaptive Executive and Board Leadership.
Without true leadership, at both the board and staff level, you will achieve little as a nonprofit. This pillar is about asking hard questions, pushing the organization toward excellence, continuously improving and taking nothing for granted.
You can read the full description of Pillar #1 in the Performance Imperative, but here are a few key elements present in nonprofits that exhibit this pillar:
- Boards “ask probing questions about whether the organization is living up to its promises and acknowledge when course correction is needed.”
- Executives and boards “know that great talent is a huge differentiator between organizations that are high performing and those that aren’t.”
- Executives and boards “know that they haven’t figured it all out and acknowledge that they still have a lot of work to do.”
- Executives and boards “are constantly assessing not only what the organization should be doing but also what it should stop doing…redirecting scarce resources to the highest opportunity areas.”
In other words, nonprofit leaders who embody Pillar 1 of the Performance Imperative, ask hard questions, build a stellar staff, seek continuous improvement, and put resources to their highest and best use.
There is no doubt that there are many examples of this courageous, adaptive leadership in the nonprofit sector. One of those, I believe, is Molly Baldwin, founder and CEO of Roca.
Molly founded Roca in 1988, and by 2004 it was a multi-million dollar teenage pregnancy and violence prevention program. But that year, Molly began asking some hard questions about the results Roca was achieving. She forced board and staff to take a huge step back and examine what they were doing and the ultimate effect that work had. She led her board and staff through a rigorous refocusing and pruning effort to limit their target populations and use data to drive their interventions. Instead of continuing a laundry list of services to many different populations that had limited effect, she helped her organization refocus resources on where they could create real change — transforming the lives of young men in the criminal justice system.
It was a challenging transition to lead, but the results are impressive. An internal study overseen by Harvard’s Kennedy School of Government in 2013 found that Roca reduced recidivism 65% and increased employment by 100% for the men in the program. And Roca was chosen as the lead provider in Masschusetts’ first pay for success effort.
Ten years ago Molly could have continued on Roca’s then current path, continuing to do “good work,” but failing to ask hard questions about whether that work was really resulting in change. But instead, Molly brought everything to a halt and forced board and staff to grapple with some fundamental and incredibly risky questions. In the end Molly’s leadership transformed Roca into an organization that is truly delivering solutions.
That’s the kind of social change leadership we need.
If you want to learn more, download the Performance Imperative and read additional case studies here.
Photo Credit: William B. T. Trego painting depicting George Washington’s army at Valley Forge.
As a general rule, nonprofit leaders are a self-less lot. You are so driven by your passion for social change that you are willing to perform any and all tasks required to get the job done. But there is a critical calculation that so many nonprofit leaders neglect. And that is to understand the value of their time and allocate that most precious resource effectively.
Yes, you read that correctly.
As the leader of your nonprofit your time is your organization’s most precious resource. Sure, board members, other staff members, and donors are absolutely critical to the work. But without you, there would be nothing. You are the visionary, the cheerleader, the linchpin around which everything (and everyone) revolves.
There are only so many productive hours in the day, so any hour you spend on one task is an hour you don’t spend on another task. You must put each hour of your working day to its highest and best use. As the most important connector for your nonprofit, you should be outside the organization as much as possible meeting with allies, funders, prospects, decision-makers, advocates who can help move your mission forward.
If you are stuck inside your organization updating a database, cutting checks, filing, or putting out fires, you are missing a huge opportunity.
So you need to use your time more effectively. Here’s how to start:
Create a Strategy
When a nonprofit creates and then manages to an overall strategy there is less time spent putting out fires and more time achieving outcomes and goals. So convince your board and staff to create a strategic plan and then manage to that plan. Move your organization’s culture from the reactive to the strategic and watch how you (and your staff and board) get more accomplished in the same amount of time.
Manage To Goals, Not Tasks
Once you have a strategy in place, you can manage your staff to goals, instead of discrete tasks. Whenever possible, delegate whole projects instead of specific pieces. Give a staff person the end goal you have in mind and the tools they need to get there and then empower them to do it their way. Check in on a regular basis to see how they are doing, but resist the temptation to micromanage. In so doing you get more off your plate while giving your staff license for creativity and initiative.
Regularly Meet One-on-One With Staff
I know I’ve said it before, but I’m a HUGE fan of the management power of weekly one-on-one meetings with each member of your staff. There are so many benefits. Your staff interrupts you less frequently because they know they have your undivided attention once a week, you are more willing to delegate because you know you have regular check-in points, staff learn how to problem solve on their own, and (most importantly) you have more time to GET OUTSIDE.
Find Administrative Help
As head of your nonprofit you must free yourself, as much as possible, from paper pushing tasks like filing, database maintenance, accounting. If you have the budget, hire an administrative assistant. If you don’t have the budget, recruit a volunteer to provide office support until you can grow your financial model to support administrative help. And while you are at it, outsource your accounting to a freelance bookkeeper or virtual CFO. Don’t put your administrative support at the end of the list of things your nonprofit needs. The sooner you free up your time, the better off your entire organization will be.
Nonprofit leaders, stop selling yourself and your organization short. Your time has tremendous value. So think clearly about how you allocate that limited resource and find solutions that put your time to its highest and best use. Free yourself to be the connector, fundraiser, and leader your nonprofit so desperately needs.
Photo Credit: National Archives
I’ve been leading several strategic planning efforts lately, and I am always amazed at the nonprofit sector’s general fear (borderline hatred) of strategic planning. I get it, strategic planning has traditionally been done so badly that many have just given up on the idea altogether. But that’s a mistake.
Without a long-term strategy for what your nonprofit is trying to accomplish and how you will marshal people and money to reach it, you are just spinning your wheels.
Rather than be a feared and misunderstood exercise, strategic planning can actually be distilled into 7 key questions. Now granted, these are really challenging questions, but they can be the impetus for some thoughtful strategic decision-making among board and staff. These 7 questions must be tackled in the following order because they build on each other.
The 7 questions are:
- What is Our Marketplace Map?
As a nonprofit you will be most successful when your 1)core competencies (what you do better than anyone else) uniquely position you to address 2)a community need, apart from your 3)competitors or collaborators. So the first step in strategic planning is to map those three areas and figure out where your nonprofit lies. But because you cannot create a strategic plan in a vacuum, you need to do market research to see how future trends might impact your place in the market.
- What is Our Theory of Change?
A Theory of Change is an argument for why your nonprofit exists. It helps you articulate who your target populations are and how you employ your core competencies to change outcomes for them. It is a fundamental building block to any strategic plan because if you don’t know what you are ultimately trying to accomplish and for whom, how can you possibly chart a future course?
- What Are Our Vision and Mission?
These two statements are NOT feel-good rallying cries. Rather they are instrumental elements of your future direction. Your nonprofit’s Vision relates to the “Outcomes” section of your Theory of Change and describes how you want the world to be different because of your work. And the Mission relates to the “Activities” section of your Theory of Change and describes your day-to-day work to move toward that Vision. Any good strategic plan takes a hard look at the two statements and revises them as necessary.
- What is Our Mission and Money Mix?
Once you’ve articulated your Theory of Change you need to analyze your current programs to understand how well each one contributes to 1) your Theory of Change, and 2) the financial viability of your organization. This allows you to understand where to grow, cut, or restructure programs to align with your strategy.
- What Are Our 3-Year Goals?
Given your long-term Theory of Change, you then need to determine what 3-5 broad things (goals) you want to accomplish in the next 3-years. A strategic plan is too limited if it only charts 1-2 years out, and 4+ years is so far ahead that it’s probably meaningless. Typically those 3-5 goals break down like this: 1-3 program-related goals, 1 money goal, and 1 infrastructure (board, staff, systems) goal.
- How Will We Finance The Plan?
A strategic plan is not effective without an attached financing plan because there is no action without money. So as part of the “money goal” of your strategic plan you must project how revenue and expenses (and capital investments if necessary) will flow to your nonprofit over the timeframe of the plan. This becomes your financing plan.
- How Will We Operationalize It?
So many strategic plans have started out strong but withered on the vine because they had no implementation or monitoring plans attached. You have to include a way both to track the tactics necessary to achieve your goals and to monitor regularly whether the strategic plan is coming to fruition. Do not overlook this most critical (and often forgotten) piece.
There is a smart way to create nonprofit strategy. But it requires hard questions and the time and effort necessary to thoughtfully answer them.
If you’d like to learn more about the strategic planning process I take my clients through, visit the Social Velocity Strategic Planning page.
Photo Credit: pixabay
Today I am in Sacramento (it’s a busy travel month) speaking at the Nonprofit Resource Center’s 2015 Conference “Building a Mission Focused Community.” I am honored to share the stage with amazing nonprofit sector visionaries like Jan Masaoka from the California Association of Nonprofits and Blue Avocado, Jeanne Bell from CompassPoint, and Robert Egger from LA Kitchen (and past Social Velocity interviewee and guest blogger).
My topic for today’s conference is “Reinventing the Nonprofit Leader.” Amid growing competition, decreased funding sources, and more and increasingly complex social challenges, nonprofit leaders must reinvent themselves. They must unlock the charity shackles, embrace strategy and impact, use money as a tool, refuse to play nice, and demand real help. We need a new kind of nonprofit leader.
Below is a Slideshare synopsis of my talk today, and it joins the growing library of Social Velocity Slideshare presentations.
The year is winding down, and I will be taking some time off to enjoy friends and family (as I hope you are too). But before I go, I want to leave you with a list of the 10 most popular posts on the blog this year, in case you missed any of them.
I feel incredibly lucky to be able to work with you amazing social change leaders. I am grateful for the amazing work you are doing to create a better world. And I appreciate you being part of the Social Velocity community.
I wish you all a happy, relaxing holiday season, and a wonderful new year. I’ll see you in 2015!
- Can We Move Beyond the Nonprofit Overhead Myth?
- 7 Rules For Brilliant Nonprofit Leaders
- How to Move Your Nonprofit Board From Fundraising to Financing
- Why Nonprofits Must Stop Being So Grateful
- 5 Questions Every Nonprofit Leader Should Ask
- Why Do Nonprofit Leaders Get In Their Own Way?
- 3 Questions to Get Your Nonprofit Board Engaged
- 5 Ways Great Strategy Can Transform a Nonprofit
- Does Your Nonprofit Know How To Attract Big Donors?
- It’s Time to Reinvent the Nonprofit Leader
Photo Credit: Steven Depolo
One of the most difficult decisions a nonprofit leader faces is whether to cut a program. The program might be draining staff and offering few results to clients, but once a nonprofit launches a program it becomes almost instantly institutionalized. Even if the program eventually no longer makes strategic sense, it is almost impossible to convince board, staff and donors to end it.
But for a nonprofit to be most effective, its leaders must understand the financial and social impact of all of its programs and make strategic decisions accordingly. And the way to do that is with a Program Analysis Matrix.
Nonprofit leaders are driven by the desire to provide as many services as possible, so to shut down an established program seems so wrong. But nonprofit leaders must regularly analyze their portfolio of programs in order to understand how well each program contributes to the organization’s mission and financial sustainability.
When I assess a client’s financial model, one of the first things I employ is a Program Analysis Matrix that analyzes the social and financial impact of their entire portfolio of programs. I chart all programs and activities comparing each program’s ability to:
- Contribute to the social change the nonprofit is working toward (“Social Impact” on the x axis), and
- Add or subtract financial resources to/from the organization (“Financial Returns” on the y axis).
A Program Analysis Matrix looks like this:
Each program that a nonprofit operates is placed in one of the four boxes depending on how well that program contributes to the social impact (or mission) the nonprofit is working towards and the financial sustainability of the organization. The four options are:
- Sustaining: the program has low social impact (it doesn’t appreciably contribute to the nonprofit’s ability to create social change), but does provide financial resources to the organization.
- Beneficial: the program has high social impact and provides financial resources to the organization—this is the best of both worlds.
- Detrimental: the program provides low social impact and drains financial resources from the organization—this is the worst of both worlds.
- Worthwhile: the program provides high social impact but drains financial resources.
This Program Analysis Matrix helps to surface issues that a nonprofit must address, for example when some programs are providing no benefits, or there are too many mission-related programs that don’t attract funding. Typically, a nonprofit has an abundance of “Worthwhile” programs that are integral to the mission and provide important social impact but are financially draining to the organization. In a situation like that, board and staff need to get strategic about developing programs that are “Sustaining” or “Beneficial” and provide a positive financial return.
Board and staff should work together to plot all current programs in the matrix. Once completed, the matrix can help make the appropriate strategic decisions (labeled as “Strategy” above) about which programs to “cut,” “maintain,” “nurture,” or “expand.”
This analysis can help a nonprofit take a hard look at everything they are doing and start to make some hard decisions. A conversation about cutting programs is always incredibly difficult, but with the right data behind it, the conversation can be a logical, as opposed to emotional, one.
Photo Credit: Bart van de Biezen
I’ve been thinking a lot lately about how networks and institutions must work together to create social change. As I mentioned earlier, social change happens when networks (loose connections of people and groups) organize themselves enough to pressure outdated institutions to adapt (like in the civil rights movement, global democracy movements, and the state-by-state legalization of gay marriage).
But when networks and institutions don’t connect, social change doesn’t happen (like in the Occupy movement). So networks must organize enough to influence institutions, and institutions must open themselves enough to let networks in. Social change requires that the two work in tandem.
David Brooks captured this theme in his recent New York Times column when he talked about the death of the “Organization Man.” He claims that we are witnessing “a failure of governance around the world” because networks are being valued over institutions, as he puts it:
A few generations ago, people grew up in and were comfortable with big organizations — the army, corporations and agencies. They organized huge construction projects in the 1930s, gigantic industrial mobilization during World War II, highway construction and corporate growth during the 1950s. Institutional stewardship, the care and reform of big organizations, was more prestigious. Now nobody wants to be an Organization Man. We like start-ups, disrupters and rebels. Creativity is honored more than the administrative execution. Post-Internet, many people assume that big problems can be solved by swarms of small, loosely networked nonprofits and social entrepreneurs. Big hierarchical organizations are dinosaurs.
Networks are king and institutions are left by the wayside, resulting in chaos. Effective social change happens when networks infiltrate institutions enough to help them adapt.
This is echoed in Jane Wei-Skillern & Sonia Marciano’s groundbreaking Stanford Social Innovation Review article in 2008, “The Networked Nonprofit.” They argued that nonprofit institutions must connect to and become more like networks in order to effectively create social change:
Most social issues dwarf even the most well-resourced, well-managed nonprofit. And so it is wrongheaded for nonprofit leaders simply to build their organizations…By mobilizing resources outside their immediate control, networked nonprofits achieve their missions far more efficiently, effectively, and sustainably than they could have by working alone…Unlike traditional nonprofit leaders who think of their organizations as hubs and their partners as spokes, networked nonprofit leaders think of their organizations as nodes within a broad constellation that revolves around shared missions and values…According to our research, nonprofits that pursue their missions through networks of long-term, trust-based partnerships consistently achieve more sustainable mission impact with fewer resources than do monolithic organizations that try to do everything by themselves.
But it is not just a one-way street. For social change to take hold, institutions must connect to networks and networks must connect to institutions. The Occupy movement is a great example of what happens when a network doesn’t connect to institutions. The movement eventually died because, as The Economist put it, the Occupy Movement “did not become the sort of mass movement that could deliver legislative and regulatory change.”
For real change to happen we need networks and institutions to work together. Networks are fluid, innovative, energetic and quick-moving, while institutions are well-resourced, legitimate, and powerful. So the challenge for social change leaders is to get outside your four walls, figure out where the networks and institutions lie, and forge real connections.
Photo Credit: Berlin Wall, RIAN Archive
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