The MacMillan Matrix A Tool for Program Analysis Presentation to the YWCA Mid-Atlantic Region Shelly M. Schnupp SMS and Associates

Why Program Analysis? Greater demand for accountability More competition….for funding and customers Changing needs, evolving environments

…Nonprofits are Responding Refocusing on mission Competing where appropriate Avoiding duplication Maximizing strengths Increasing partnerships and collaborations

The MacMillan Matrix Developed by Ian MacMillan Designed to help nonprofits assess their programs for sustainability, especially in light of scarce resources

Guiding Principles Unnecessary duplication fragments limited resources; weakens providers, decreases quality Greater focus, instead of being all things to all people, can result in higher quality Increasing demand for resources requires change in approaches

Key Questions MM Helps Nonprofits Answer Are we engaged in any services which, if eliminated, would cause consumers irreplaceable loss? Are we spreading ourselves too thin, without the capacity to sustain ourselves? Should we work cooperatively with another organization to provide services? How well does our program portfolio fit with our mission and vision? Are we the best organization to provide this service? What is the competitive strength of each of our programs?

Matrix Criteria Fit Economic Attractiveness Alternate Coverage Competitive Position

1. Fit -- degree to which a program "belongs" or fits within an organization (Good or Poor) Congruence with mission/purpose vision? Organization has existing skills and competencies? Able to share resources and coordinate activities with other programs?

2. Economic Attractiveness— revenue availability (High or Low) Current stable funding? High appeal to funders, supporters? High market demand? Measurable, reportable outcomes/results?

3. Alternate Coverage competition (High or Low) Are similar services provided? Do customers have many other choices? Competitors now and future?

4. Competitive Position stronger capability and potential to deliver the service than current or emerging competitors (Strong or Weak) Good location, logistical delivery system? Will customers remain? Grow? Is quality superior? Record of securing grants, funding? Stable staffing? Ability to maintain and continually increase competency? Cost effective? Strong connections with consumers and stakeholders?

Program Analysis Steps 1. Preparation 2. Implementation 3. Analysis 4. Action

Step 1. Preparation Assemble analysis team Staff Board Assemble Program Profiles Identify additional data Mission, Vision Strategic Plan

See Program Profile Format and Example Program purpose and history Customer Profile—who is targeted, served, trends, challenges Primary program activities Outcomes--customer and other Funding—sources, trends, issues Staffing—requirements, status and issues Competition—others currently providing or planning to provide the same or similar services Factors that distinguish this program from similar or other efforts Other groups/ organizations the program does or should interact with and how Other special Issues both positive and negative See Program Profile Format and Example

Exercise 1 1. Find a partner to work with. 2. Identify a program. 3. Complete a Program Profile using Worksheet 1. 4. See example program profile in handouts packet p. 4

Step 2. Implementation Present, review program data Classify each program according to 4 criteria Alone, silently Discuss, reach group consensus Note classifications on worksheet Place programs on matrix Review results

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Child Tutoring Racial Justice Job Training Women’s Leader-ship

High Economic Attractiveness (Easy to attract resources for support) MacMillan Matrix High Economic Attractiveness (Easy to attract resources for support) Low Econonic Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment POOR FIT

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Child Tutoring X Racial Justice Job Training Women’s Leader-ship

High Econ. Attractiveness (Easy to attract resources for support) MacMillan Matrix High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment CHILD TUTORING POOR FIT

Cell 10. Orderly Divestment. This program is both unattractive and a poor fit. However, it is desirable to eliminate these services gradually and if at all possible without harm to consumers.

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Child Tutoring X Racial Justice Job Training Women’s Leader-ship

High Econ. Attractiveness (Easy to attract resources for support) MacMillan Matrix High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” RACIAL JUSTICE GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment POOR FIT

Cell 6. Soul of the Agency. Do not have easy access to resources on their own Agency is committed to delivering even at the cost of subsidizing with resources from other programs Makes special or unique contribution to customers and mission No organization can afford to support an unlimited number of "soul" programs

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Child Tutoring X Racial Justice Job Training Women’s Leader-ship

High Econ. Attractiveness (Easy to attract resources for support) MacMillan Matrix High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest JOB TRAINING 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment POOR FIT

Cell 4. Invest, Find Partner, or Divest. Worthwhile investment when resources available for improving its competitive position -- after programs in Cell 1 have been taking care of. If investment resources do not exist, become candidates for finding a partner. There is opportunity here due to the availability of resources and low competition that could be pursued with a strategic partner. If neither alternative works out, abandon the programming -- it is unlikely to assume a competitive position on its own.

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Child Tutoring X Racial Justice Job Training Women’s Leader-ship

High Econ. Attractiveness (Easy to attract resources for support) MacMillan Matrix High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth WOMEN’S LEADERSHIP 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment POOR FIT

Cell 2. Aggressive Growth. There are substantial resources, plentiful consumers, and few competitors High priority for attention as the organization given significant opportunity to build market share. As others recognize the organization's success, the competition will increase -- so timely investment in growth is imperative.

Exercise 2 1. Resume work with previous partner. 2. Refer to program profile completed in Exercise 1. (Worksheet 1). 4. Apply the 4 MacMillan Criteria to the program. Use criteria definitions (Handouts packet p. 5). Note the program ratings on Worksheet 2. 5. Place the program in the appropriate cell on the MacMillan Matrix. See Applying Results (Handouts packet p. 7). 6. Find the cell definition that corresponds with the Matrix Cell. (Handouts packet p. 9). Discuss the results.

Step 3. Analyze Results Implications for Individual Programs? What does our Program Portfolio Look Like? What are the implications for the future? For organizational sustainability?

High Econ. Attractiveness (Easy to attract resources for support) MacMillan Matrix High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Alternate Coverage HIGH LOW Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth WOMEN’S LEADERSHIP 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” RACIAL JUSTICE GOOD FIT Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest JOB TRAINING 7. Consider Partner or Divest 8. Find Partner or Divest 9. Aggressive Divestment 10. Orderly Divestment CHILD TUTORING POOR FIT

Exercise 3 See sample Program Rating Worksheet for Association X. Place rated programs on the MacMillan Matrix. Discuss results. What are the implications for organizational sustainability? What next steps should be considered by Association X?

4. Take Action Develop plan for implementing results Implement Plan Use results in strategic planning

Program Analysis Applications Generate data for strategic planning Check on “hunches” or assumptions Analyze programs against new vision, strategic plan Develop new programs

Program Analysis Benefits Increase understanding Develop consensus Encourage objectivity Build organizational capacity

Tips for Engaging in Program Analysis Base analysis on data; develop “program profiles” Challenge assumptions Use a facilitator—especially for existing programs Avoid second guessing results Document issues that surface Develop a plan and act on it!

QUESTIONS? Contact: Shelly Schnupp 414-412-0408 shellyschnupp@aol.com SMS and Associates