Presented by Sam Davis Principal, The Davis Group

COURSE OUTLINE AND TIMEFRAMES 9:00 - 9:30Introductions; Objectives/Expectations 9: :15Nonprofit Lifecycles 10:15-10:45Case Study #1 10:45 -11:30Characteristics of Small & Early-Stage NPs 11:30-12:00Review Self-Assessment Survey Results 12:00-1:00Lunch 1:00 - 1:30Capacity Building 1:30-2:00Case Study #2 2:00-2:45Strategically Building Sustainability 2:45-3:45Working on Your Sustainability Plans 3:45-4:00Taking it Home; Adjourn 2

OBJECTIVES To gain an understanding of Nonprofit Lifecycles and capabilities required at each stage To understand the benefits of self-assessments and assessments of internal strengths and weaknesses To learn to think strategically about capacity building. To enhance your ability to strategically build long- term sustainability for your organization. 3

NONPROFIT LIFECYCLES Source: Nonprofit Lifecycles by Susan Kenny Stevens 4 Turnaround RENEW

LIFECYCLE PRINCIPLES Source: Susan Kenny Stevens  Diagnostic, not deterministic  May not be evolutionary or sequential  Not age or size dependent  Some capabilities may be at different stages  Used to set realistic expectations  Characterizes capabilities in an objective fashion  Sets the context for strategic thinking and action 5

7 STAGES OF NONPROFIT CAPACITY Source: Susan Kenny Stevens 1. Idea Stage – Magnificent Obsession 2. Start-Up Stage – The Labor of Love 3. Growth Stage – Becoming Who You Are 4. Maturity Stage – Maintaining Your Edge 5. Decline Stage – Someone You Used to Be 6. Turnaround Stage – The Rubber Meets the Road 7. Terminal Stage – Alive in Name Only 6

LIFECYCLE STAGE 1: IDEA Governance – None Strategy – Inspired vision; vague strategies Program – Not clearly defined but commitment to serve Management – Founders are committed volunteers Marketing – General audiences; lack of resources Resources – Sweat equity; limited access to capital Infrastructure – Generally lacking; borrowed services 7

LIFECYCLE STAGE 2: START-UP Governance – Members with personal connection Strategy – Focused initiatives; outcomes lacking Program – Simple, experimental; breadth not depth Management – Founder led; part-time staff; volunteers Marketing – Founder is the brand; trial and error Resources – Low budget; grant dependent Infrastructure – Financial and admin weak or outsourced 8

LIFECYCLE STAGE 3: GROWTH Governance – Board formalizes; board committees Strategy – Simple strategic plan; priorities change rapidly Program – Defined programs; differentiation from others Management – Leaders see potential and manage change Marketing – Begin build brand, target audiences Resources – Diversified income sources; expand donor base Infrastructure – Financial systems maintain accountability 9

LIFECYCLE STAGE 4: MATURITY/STABILITY Governance – Board sets direction; policy oriented Strategy – Formal strategic plan; outcome measures Program – Organized; results focused; meet community needs Management – Strong executives; staff development Marketing – Targeted audiences; diverse media; resources Resources – Multiple revenue sources; broad donor base Infrastructure – Effective financial, program and IT systems 10

LIFECYCLE STAGE 5: DECLINE/RENEW Governance – Board unaware; hands-off; status quo Strategy – Outcomes not achieved; need turnaround Program – Program costs high, losing clients to competitors Management – Lacking strategic vision; blaming others Marketing – Brand value in decline; not reaching audiences Resources – Fixed costs heavy; cash management challenges Infrastructure – Systems antiquated, upgrades not funded 11

LIFECYCLE STAGE 6: TURNAROUND Governance – Committed core lead call for strategic change Strategy – Creative, entrepreneurial thinking emerges Program – Restructured in light of market needs and financial viability Management – Turnaround leader sets clear direction, inspires others to follow Marketing – Brand revitalized; key audiences targeted Resources – Key donors engaged; cost structure revamped Infrastructure – Financial and information systems revitalized 12

LIFECYCLE STAGE 7: TERMINAL Governance – Board unaware; hands-off; status quo Strategy – Outcomes not achieved; strategies stale Program – Results unreliable and seriously underfunded Management – Lacking strategic vision; blaming others Marketing – Brand value in decline; not reaching audiences Resources – Donors have given up; deficits accumulate Infrastructure – Systems virtually abandoned; ad hoc workflow 13

THINKING STRATEGICALLY, WHAT DOES YOUR ORGANIZATION’S LIFE STAGE SUGGEST? Do board members assume roles and responsibilities consistent with the requirements of your life stage? Do you (does your organization) have a clear vision of the future and a roadmap for getting there? Do you provide essential services that are different from other organizations and delivered in a cost effective manner? Is your ED a visionary leader who inspires others to follow? Is your brand understood by clients and donors alike? Are you generating the financial resources you need to attract and retain key employees and deliver high quality programs? Are your financial and other information systems optimal? 14

NONPROFIT LIFECYCLES AND YOUR ORGANIZATION Where are you today on the Lifecycle graph? Where is the momentum in your organization? What are the core strengths and weaknesses of your organization? Thinking strategically, what challenges lie ahead? What options might you consider for addressing these challenges? How might you ensure your organization is thinking strategically and building sustainability? 15

16 MAINTAINING THE STATUS QUO IS NOT AN OPTION

CASE STUDY #1 17

CHARACTERISTICS OF START-UP AND EARLY STAGE NONPROFITS Crawl, Walk, Run Mission, Values and Culture Size Matters o Board, Staff, Volunteers o Programs o Systems Business Model; Theory of Change Financial Resources Setting Priorities Role of the Executive Director 18

REVIEW OF SELF-ASSESSMENT SURVEY RESULTS AT WHAT STAGE IS YOUR ORGANIZATION TODAY? WHAT ARE YOUR KEY STRENGTHS AND WEAKNESSES? WHAT CAPABILITIES DO YOU NEED TO DEVELOP? HOW WILL YOU FIND THE NECESSARY RESOURCES? HOW WILL YOU MEASURE YOUR PERFORMANCE? 19

LUNCH 20

BUILDING NONPROFIT CAPACITY Which comes first the chicken or the egg? 1. MISSION AND PROGRAMS 2. GOVERNANCE 3. FINANCIAL RESOURCES 4. STAFF AND OUTSOURCED CAPABILITIES 5. BRANDING AND STRATEGIC COMMUNICATIONS 6. SUPPORT SYSTEMS 7. EXECUTIVE FUNCTIONING 21

CASE STUDY #2 22

STRATEGICALLY BUILDING SUSTAINABILITY FIVE PHASES OF GROWTH HAND-OUT 23

STRATEGICALLY BUILDING SUSTAINABILITY Board Development Strategic Planning & Management Programs, Evaluation, Impact Financial Capacity Marketing & Strategic Communications Talent Management Infrastructure 24

STRATEGICALLY BUILDING SUSTAINABILITY Board Development Generative, Strategic and Fiduciary Responsibilities Setting Expectations Time, Talent and Treasure Selection Criteria and Diversity Leadership Succession Governance vs Volunteer Roles Board Committees Effective Meeting Management Self-Assessment 25

STRATEGICALLY BUILDING SUSTAINABILITY Strategic Planning & Management Strategic Thinking; Generative Thinking Setting Priorities Internal Analysis; Environmental Scan Strategic Planning & Implementation Strategic Business Plans Measuring Outcomes; Tracking Success Emergent Strategies 26

STRATEGICALLY BUILDING SUSTAINABILITY Programs, Evaluation, Impact Needs Assessments Service Delivery and Quality Program Evaluation and Impact Diversifying Programs Strategic Partnerships Cost Per Unit of Service 27

STRATEGICALLY BUILDING SUSTAINABILITY Financial Capacity Fund Development Diversification of Funding Sources Resource Development Financial Management o Budgeting o Cash Management o Forecasting Operating Reserves and Endowments o Restricted and Unrestricted Funds 28

STRATEGICALLY BUILDING SUSTAINABILITY Marketing & Strategic Communications Building Your Brand Messaging Understanding Your Audiences o Donors o Clients o Stakeholders; etc. Communications Strategies Matching Media to Each Audience o Print; F2F; Broadcast; Online; Social Media Securing Expertise and Resources 29

STRATEGICALLY BUILDING SUSTAINABILITY Talent Management Executive Director, Role and Authority o Development Plan & Performance Review Senior Management Staff Development Volunteers Outsourced Expertise and Staffing o Fund Development o Financial Management o Strategic Communications/Marketing o Information Technology 30

STRATEGICALLY BUILDING SUSTAINABILITY The Importance of Volunteers Part-time and Volunteer Staff Board Members who volunteer What hat are they wearing? Meaningful Work Recruiting and Managing Volunteers Software can be helpful 31

STRATEGICALLY BUILDING SUSTAINABILITY Infrastructure Financial Management & Reporting Systems Donor Databases and Other Development Systems Strategic Communications Performance Evaluation and Staff Development Other Information Systems Administrative and Program Space Requirements Teambuilding, Meetings and Other Group Processes 32

SUSTAINABILITY PLANS FOR INDIVIDUAL ORGANIZATIONS IN-CLASS EXERCISE 33

TAKING IT HOME Receiving Feedback and Support Peer Groups Additional Resources to Consult 34

PLANNING FOR SUSTAINABILITY IN EMERGING NONPROFITS THANK YOU! (804)