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Peter York's slides from the AZENET Conference on Organizational Effectiveness May 8 and 9
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Peter York Senior Partner Chief Research & Learning Officer TCC Group
2
Agenda
1. Nonprofit Effectiveness: Who Are We Talking About?
2. Effectiveness for All
3. Sustainability: How Leading, Adapting and Managing Matter
4. Growth & Scaling: How Program Codification, Replication & Resource Generation Matter
5. Strategic Learning: The Key to Effectiveness
4
The Micro and Macro Impact Ecosystem
Social Problem
or Desired Impact
Macro Strategies Change populations en masse through
adding, changing, monitoring and/or evaluating system and/or institutional laws, regulations, funding allocations, standards,
practices and/or policies
Micro Strategies Change individuals, families and small groups,
through implementation of funded programs, and on-the-ground enforcement and/or adherence
programs for new or improved laws, regulations, policies
Types of Nonprofits:
1. Macro – Policy/Advocacy, Systems
2. Micro – Direct Service
3. Hybrid
4. Intermediaries
5
Types of Nonprofits
Mom & Pops 70%
Small Businesses
20%
Scalers 10%
Neighborhood Organizations Grassroots organizations • Serves local neighborhood • Either macro or micro, narrow set of
services • Addresses basic needs • <$150K Community Organizations • Serve multiple neighborhoods • Broader array of services • Macro, micro and/or hybrid • Employ multiple strategies • Reach $1M+ Scaling Organizations • Work across many communities • Develop replicable models w/in macro
and/or micro • Codify way to achieve goals • Networked/affiliated
7
External Environment
Resources
Organization Adaptive Capacity
the ability of a nonprofit organization to monitor, assess and respond to internal and external
changes .
Organizational Culture
His
tory
La
ngua
ge
Technical Capacity the ability of a nonprofit organization to implement all of
the key organizational and programmatic functions
Key Resources the one or more critically needed resources
that most directly support programs and services
Finances/ Funding
Program Design and
Model
Time Technology
Facilities Human Resources
Management Capacity the ability of a nonprofit
organization to ensure the effective and efficient use of
organizational resources
Leadership Capacity the ability of all organizational leaders to create and sustain
the vision, inspire, model, prioritize, make decisions,
provide direction and innovate, all in an effort to achieve the
organizational mission.
The Four Core Capacities Model
8
The Lifecycle Model
All organizations go through stages of development and have to “get their house in order” (achieve lifecycle stage 3) before they are ready for collective action.
Impact expansion through sharing, collaboration and/or
collective action
Infrastructure/business development to sustain and grow results from the core
program/strategy model
Core program or strategy development for direct targets:
Micro = individuals, small groups Macro = populations, system change agents, etc.
Stage 3
Stage 2
Stage 1
9
Impact Expansion
Infrastructure Development
Core Program Development
Organizational Effectiveness
Leaders Get Resources &
Direct
Leaders Design & Plan
Managers Deploy the Resources
Collaborative Resources
Operational Resources
Program (Micro)/ System (Macro) Resources
Social Impact
Sustain & Grow
Client/Target Changes
Impact Expansion
Business Processes
Program Delivery/ Strategy Deployment
11
Challenged 30%
Strong 28%
Satisfactory 42%
Organizational Resource Sustainability of CCAT Orgs
12
The Sustainability Formula
Leadership Adaptability Program Capacity Sustainability
13
The Sub-Capacities that Matter
Internal Leadership • Applying a mission-centered,
focused, and inclusive approach to making decisions, as well as inspiring and motivating people to act on them
Fundraising Skills • Developing resources
necessary for efficient operations, including management of donor relations
Program Staffing • Making staffing changes as
needed to increase and improve programs and service delivery
Empowering • Promoting proactivity, learning,
and a belief in the value and ability of staff and client
Leader Vision • Formulating a clear vision and
motivating others to pursue it
14
There’s More to Leadership…
• Effectively communicating mission and vision
• Engaging all stakeholders in planning
• Making decisions on cost-effectiveness
• Implementing quick fixes
• Holding leaders accountable for recipient/target results
Only one in four nonprofit organizations are well led…
15
The Key to Leading Is Learning
• Gathering sophisticated program and business data
• Determining formulas for success
• Engaging in data-driven planning
• Measuring and managing performance
Only one in four nonprofit organizations are effective learners…
16
There’s More to Program Capacity…
• Effective staffing
• Infrastructure growth to keep up with program growth
• Continuous program delivery improvement
• Continuous program management improvement
• Facilities
Only one in seven organizations have strong program capacity...
18
Some Nonprofits Grow Faster than Others
• Only 1 in 2 nonprofits grow faster than the annual inflation rate over a three-year period.
• Five measures of organizational capacity explain 20% of the reasons why an organization grows faster than inflation:
1. Program Design (Strategic Learning/R&D) 2. Program Replication 3. Independent Program Resource Generation 4. Program Sustainability 5. Growth Rate Stability
19
How Well Are Nonprofits Doing?
Independent Program Resource Generation (1 in 50)
Program Reliability (1 in 50)
Program Design (1 in 25)
Program Sustainability (1 in 3)
Organizational Stability (1 in 2)
20
The Building Blocks of Nonprofit Growth & Scaling
• Centralized Program Design Leadership
• Program-Centered Independent, Sustainable and Diversified Resource Generation
• Program Reliability and Expansion Management
Centralized Program Design
Leadership
Program-Centered,
Independent, Sustainable, & Diversified
Resource Generation
20
Program Reliability & Expansion
Management
21
The Program Design Leader’s Checklist
q Gather data directly from program recipients to determine how to improve services
q Decide on outcome metrics by first listening to, documenting, and sharing actual client success stories and results.
q Engage key leaders and staff in making meaning out of client-derived data.
q Identify patterns and themes in program data that show which program ingredients worked, for whom, and how.
q Bring program design leaders together to address the resources needed to deliver programs effectively.
q Leverage insights to inform the program implementation team.
22
The Resource Generator’s Checklist
q Make sure the strategic plan is anchored in resourcing, strengthening and improving program impact, which is a significant predictor of plan implementation.
q Diversify the funding streams - particularly if your organization depends on a few large grants from funders who have a say in how programs are delivered.
q Acquire numerous repeat givers, donors or buyers
q Invest your resources into strengthening and improving your programs/program models, and don’t invest in non-programmatic infrastructure until program growth hurts.
q Keep your board and funders “out of the kitchen,” including raising or providing program funding, unless they agree to a “no strings attached” policy.
23
The Program Manager’s Checklist
q Train staff to deliver the program as it is designed.
q Invest in ongoing training for program improvements and/or modifications.
q Assess program implementers based on client results.
q Leverage program data to measure and monitor program delivery.
q Invest in program managers as implementers (staff or volunteers) grow.
q Have clear guidelines to make difficult staffing decisions based on program data.
q Develop cost-per-result metrics to manage accountability.
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The Developmental Model for Growth & Scaling, and The Learning Tools to Get There
Build the Program Model for Those We Serve
Build the Business Model to Grow the Program in Our Community
Build the Expansion Model to Replicate the Model In More Communities
Strategic Learning/Research &
Development
Performance Measurement & Management
Evaluation & Community Impact Studies
Growth
Codification
Scaling
strategies to achieve social impact
The Key to Effectiveness
strategies to achieve social impact
28
The Metrics, Methods & Analyses Are Wrong
• There’s NO outcome synchronicity between the investor and investee
• There’s NO Research & Development for programs/initiatives
• Effectiveness and accountability HAVE TO BE viewed through the measurement of proximate effect
• Proximate cause-and-effect is the ONLY way!
• Learning REQUIRES understanding the cause, NOT the effect
29
The Outcome Synchronicity Problem – A Comparative Example
Investors (Funders)
Business Leaders
Consumers
For-Profit Accountability: Just Give Me (or Show Me) the Direct Results, Please…
Nonprofit Accountability: Just Give Me the Direct Results, But Somehow Prove to “Them” That We Can Do Much More…
Recuperation, parent-child bonding, healthy adjustment to family change, tools for care and
feeding, stress-reducing routines and habits, better communication skills with providers
• Same Direct Results as the For-Profit Business
• Child Development, School Readiness, Crime Reduction
• Parental Reduction in Child Abuse & Neglect, Maternal Health
Nonprofit Business Leaders &
Clients
Funders (Investors)
30
Resources Strategies Short-Term Outcomes
Long-Term Outcomes
Community / Social Impact
Evaluation: Using the Wrong Model
31
Resources Strategies Achievable Outcomes
Research says…
Community / Social Impact
Strategic Learning: Changing the Model
32
The Problems with Comparison Groups C
ontr
ol
Gro
up
Inte
rven
tion
Gro
up
Evaluator It made a significant difference…the
program worked
Yeah! But, three of us
would have
succeeded anyway
What About Us?
Why did the girls do
better?
What About All
of Us?
We Did It On Our
Own
strategies to achieve social impact
34
Five Guiding Principles for Strategic Learning
1. Listen to the client
2. Quantify, then qualify
3. Measure backgrounds, program experiences and direct outcomes
4. Don’t describe, analyze 5. Don’t report, design and re-design
35
The Seven Steps to Strategic Learning
1. Determine the “real” outcomes
2. Find or create the metrics
3. Gather data, quant then qual
4. Make meaning out of patterns
5. Create/modify program models
6. Re-design programs
7. Repeat steps 2-6
36
First, Uncover the “Real” Outcomes
• It’s all about the path to behavior change: – Awareness + – Knowledge + – Attitude + – Motivation + – Skills + – Opportunity + – Behaviors = ___________________
Habits =
37
Analyze Data
Hold one or more meetings and go through the following process:
1. Create outcome buckets – high, medium, low.
2. Ask of this sorted data the following questions:
• What program components and combinations worked? • What background factors played a role? • What preconditions (readiness factors) made a
difference?
3. Finalize conclusions about what worked, for whom and why.
38
Make Meaning
Hold one or more meetings to discuss the following:
1. How should we change our program formulas? What do we leave in, what do we improve and what do we take out?
2. What resources do we need or need to change to improve the program?
3. How can we leverage findings to garner more and/or better resources?
4. How do we better “manage to outcomes,” moving forward?
strategies to achieve social impact
Types of Nonprofits
42
The Micro and Macro Impact Ecosystem
Social Problem
or Desired Impact
Macro Strategies Change populations en masse through
adding, changing, monitoring and/or evaluating system and/or institutional laws, regulations, funding allocations, standards,
practices and/or policies
Micro Strategies Change individuals, families and small groups,
through implementation of funded programs, and on-the-ground enforcement and/or adherence
programs for new or improved laws, regulations, policies
Types of Nonprofits:
1. Macro – Policy/Advocacy, Systems
2. Micro – Direct Service
3. Hybrid
4. Intermediaries
43
Types of Nonprofits
Mom & Pops 70%
Small Businesses
20%
Scalers 10%
Mom & Pops • Grassroots organizations • Serves local neighborhood • Either macro or micro, narrow set of
services • Addresses basic needs • <$250K Small Businesses • Serve multiple neighborhoods • Broader array of services • Macro, micro and/or hybrid • Employ multiple strategies • $250K - $1M Scalers • Work across many communities • Develop replicable models w/in macro
and/or micro • Codify way to achieve goals
44
• Education • Training
• Resources • Tools • Consulting
• Coaching • Mentoring • Technical Assistance • Technical Support
• Awareness • Know-How • Motivation
Capacity Building Effectiveness = “Ready, Set, Go”
Awareness, Knowledge, Attitude, Motivation, Skills Opportunity, Behavior, Habit
Ready Set Go!
“Go” Services ensure that behaviors happen, habits are formed, and changes are sustained
• Plans • Tools • Resources • Instructions
• Assisting • Showing • Doing • Feedback
Skills:
Support:
45
Seven Steps for Capacity Strategy
1. Determine what type of org you are – Mom and Pop, small nonprofit business, or scaler.
2. Assess your organization’s size.
3. Assess your organization’s lifecycle.
4. Assess your organization’s capacity needs.
5. Determine who needs to change.
6. Determine whether the individuals or group are “ready to go” or “need to get ready.”
7. Determine a cost-effective model for supporting capacity building.
46
The Lifecycle Model
All organizations go through stages of development and have to “get their house in order” (achieve lifecycle stage 3) before they are ready for collective action.
Impact expansion through sharing, collaboration and/or
collective action
Infrastructure/business development to sustain and grow results from the core
program/strategy model
Core program or strategy development for direct targets:
Micro = individuals, small groups Macro = populations, system change agents, etc.
Stage 3
Stage 2
Stage 1
47
The New Lifecycle Model: Size Matters
Infrastructure Reduction
Program Reduction
Infrastructure Development
Program Development
$250
,000
$500
,000
$1,0
00,0
00
$3,0
00,0
00
$5,0
00,0
00
$10,
000,
000
$10,
000,
000
$5,0
00,0
00
$3,0
00,0
00
$1,0
00,0
00
$500
,000
$250
,000
of nonprofits sustain at or
below this level
of nonprofits reach or
exceed this point
75%
10% Only
The
Sky
is th
e Li
mit
48
Assessing Lifecycle Stage and Capacity Needs
Core Program Infrastructure Development Collective Impact
Cap
acity
Nee
ds
Leadership Internal leadership and vision to design, sustain and grow program model
Internal leadership to sustain and grow business model
Scalable models for community impact and
system change
Adaptive Needs assessment and ongoing evaluation (SL/
R&D) to sustain and grow
Organizational assessment for
sustainability and business planning for independent resource generation for growth
Evaluation, planning, and process
implementation for community alliances, collaborations, and
system reform efforts
Management Strong program
management and implementation for
sustainability and growth
HR and infrastructure management and
performance measurement for
sustainability and growth
Alliance and partner management
Technical Program delivery,
resources and tools for sustainability and growth
Operational and administrative facilities;
skills and tools for sustainability and growth
Relationships, networks, and resources
49
Who Needs to Change and How?
Who? Does Not Know
How (Ready – Awareness &
Knowledge)
Does Not Want To
(Ready – Attitude and Motivation)
Needs Instructions,
Tools, Systems, Resources (Set)
Needs Practice and Confidence
(Go)
• Executive Director • Board Members • Program Directors • Program Managers • Operational Directors • Operational
Managers • Program
Implementers • Operational
Implementers • Community Outreach
Directors • Community Outreach
Managers • Community Outreach
Implementers
Inform ______________ ______________ ______________ ______________ Educate ______________ ______________ ______________ ______________
Counsel _______________ _______________ _______________ _______________ Direct _______________ _______________ _______________ _______________
Instruct _______________ _______________ _______________ _______________ Resources _______________ _______________ _______________ _______________
Mentor _______________ _______________ _______________ _______________ Coach _______________ _______________ _______________ _______________ Support _______________ _______________ _______________ _______________
The End