Program Analysis Using the MacMillan Matrix and Related Tools Shelly M. Schnupp SMS and Associates Program Analysis Using the MacMillan Matrix and Related Tools YWCA Great Lakes Alliance July 2012

Why Program Analysis? Greater demand for accountability More competition….for funding and customers Increasing demand for fewer resources Changing needs, evolving environments Few are no programs are forever

…Nonprofits are Responding Facing facts 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 Modifications and complementary tools developed by SMS and Associates

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? Address ywca brand? Hallmarks? 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? (consider all costs, including overhead) 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

1. Preparation Assemble analysis team Staff Board Assemble Program Profiles— distribute to team in advance

Program Profile Program purpose and history Customer Profile—who is targeted, served, trends, challenges Primary program activities—addresses hallmark areas? Outcomes--customer and other Funding—sources, trends, deficits Staffing—requirements, status and challenges 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

1. Preparation (continued) Assemble analysis team Staff Board Assemble Program Profiles— distribute to team in advance Distribute first part of Program Analysis handouts (Overview, steps, Program Profile form and example, Criteria & Ratings Worksheet) Identify additional information Mission, Vision Strategic Plan

2. Implementation Present, review program profiles and discuss Classify each program according to 4 criteria Alone, silently Discuss, reach group consensus

Matrix Criteria Fit Economic Attractiveness Alternate Coverage Competitive Position

2. Implementation (continued) Present, review program profiles and discuss Classify each program according to 4 criteria Alone, silently Discuss, reach group consensus Note decisions on Worksheet

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Program A x Program B Program C Program D

2. Implementation Present, review program profiles and discuss Classify each program according to 4 criteria Alone, silently Discuss, reach group consensus Note decisions on MM Worksheet Place Programs on the M Matrix (distribute remaining sections of Program Analysis handouts—Applying Results, Matrix and Cell Definitions.)

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” Program A 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

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

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

Using the Criteria to Rate Programs

Matrix Criteria Fit Economic Attractiveness Alternate Coverage Competitive Position

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Job Training Other program Other Program

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

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Job Training X Other program Other Program

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

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Job Training X Other program Other Program

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

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Job Training X Other program Other Program

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?

MacMillan Matrix Worksheet Economic Attractiveness Program Fit Economic Attractiveness Alternate Coverage Competitive Position Good Poor High Low Strong Weak Job Training X Other program Other Program

Placing Programs on the MacMillan Matrix

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

Job Training Fit: GOOD High Econ. Attractiveness 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 POOR FIT

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

Econ. Attractiveness: HIGH Job Training Econ. Attractiveness: HIGH 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 POOR FIT

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

Alternate Coverage: LOW Job Training Alternate Coverage: LOW 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 POOR FIT

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

Job Training High Econ. Attractiveness MacMillan Matrix Job Training 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 Job Training X Racial Justice Women’s Leader-ship Child Tutoring

Racial Justice Fit: GOOD High Econ. Attractiveness 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 POOR FIT

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

Econ. Attractiveness: LOW Racial Justice Econ. Attractiveness: LOW 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 POOR FIT

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

Alternate Coverage: LOW Racial Justice Alternate Coverage: LOW 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 POOR FIT

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

Competitive Pos: STRONG Racial Justice Competitive Pos: STRONG 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 Job Training X Racial Justice Women’s Leader-ship Child Tutoring

Women’s Leadership Fit: GOOD High Econ. Attractiveness 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 POOR FIT

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

Econ. Attractiveness: HIGH Women’s Leadership Econ. Attractiveness: HIGH 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 POOR FIT

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

Alternate Coverage: LOW Women’s Leadership Alternate Coverage: LOW 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 POOR FIT

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

Competitive Position: STRONG Women’s Leadership Competitive Position: STRONG 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.

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

Child Tutoring Fit: POOR High Econ. Attractiveness 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 POOR FIT

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

Econ. Attractiveness: LOW Child Tutoring Econ. Attractiveness: LOW 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 POOR FIT

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

Alternate Coverage: HIGH Child Tutoring Alternate Coverage: HIGH 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 POOR FIT

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

Competitive Pos: STRONG Child Tutoring Competitive Pos: STRONG 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.

Reviewing Results How sustainable is our service portfolio? Can and should we do something to improve the position of some programs? What are our next steps?

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

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 FINANCIAL LITERACY 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. “Soul of the Agency” RACIAL JUSTICE TEEN GIRLS 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 AQUA FITNESS POOR FIT

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 FINANICAL LITERACY 5. Reinforce Best Competitor or Find Partner WOMEN’S FITNESS 6. “Soul of the Agency” RJ EDUCATION 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

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

Tips for Engaging in Program Analysis Base analysis on data; develop high quality “program profiles.” Be clear about programs’ financial status, including income, overhead. Challenge assumptions. Use a facilitator to assist with objectivity—especially for existing programs. Avoid second guessing results. Document issues that surface; helpful for future planning. Develop a plan and act on it! Re-apply criteria in the future.

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