The MacMillan Matrix
A Tool for Program Analysis
Presentation to the
YWCA Mid-Atlantic Region
Shelly M. Schnupp
SMS and Associates
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Why Program Analysis?
Greater demand for accountability
 More competition….for funding and
customers
 Changing needs, evolving
environments
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…Nonprofits are Responding
Refocusing on mission
 Competing where appropriate
 Avoiding duplication
 Maximizing strengths
 Increasing partnerships and
collaborations
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The MacMillan Matrix
 Developed
by Ian MacMillan
 Designed to help nonprofits assess
their programs for sustainability,
especially in light of scarce resources
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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
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Key Questions MM Helps
Nonprofits Answer
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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?
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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?
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Matrix Criteria
1. Fit
2. Economic Attractiveness
3. Alternate Coverage
4. Competitive Position
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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?
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2. Economic Attractiveness—
revenue availability (High or Low)
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Current stable funding?
High appeal to funders,
supporters?
High market demand?
Measurable, reportable
outcomes/results?
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3. Alternate Coverage competition
(High or Low)
Are similar services provided?
 Do customers have many other
choices?
 Competitors now and future?
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4. Competitive Position stronger
capability and potential to deliver the service
than current or emerging competitors
(Strong or Weak)
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Good location,
logistical delivery
system?
Will customers
remain? Grow?
Is quality superior?
Record of securing
grants, funding?
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Stable staffing?
Ability to maintain and
continually increase
competency?
Cost effective?
Strong connections
with consumers and
stakeholders?
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Program Analysis
Steps
1. Preparation
2. Implementation
3. Analysis
4. Action
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Step 1. Preparation
Assemble analysis team
Staff
Board
Assemble Program Profiles
Identify additional data
Mission, Vision
Strategic Plan
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Program Profile
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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
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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
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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
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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
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MacMillan Matrix Worksheet
Program
Fit
Good
Economic
Attractiveness
Poor
High
Low
Alternate
Coverage
High
Low
Competitive
Position
Strong
Weak
Child
Tutoring
Racial
Justice
Job
Training
Women’s
Leadership
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MacMillan Matrix
High Economic
Attractiveness
(Easy to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Low Econonic Attractiveness
(Difficult to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Strong
Competi
tive
Position
1.
Aggressive
Competition
2. Aggressive 5. Reinforce
Growth
Best
Competitor
or Find
Partner
6. “Soul of the GOOD
Agency”
FIT
Weak
Competi
tive
Position
3.
Aggressive
Divestment
4. Invest,
Find Partner
or Divest
8. Find
Partner or
Divest
9. Aggressive Divestment
7. Consider
Partner or
Divest
10. Orderly Divestment
POOR
FIT
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MacMillan Matrix Worksheet
Program
Fit
Economic
Attractiveness
Good Poor
Child
Tutoring
X
High
Alternate
Coverage
Low
High
X
X
Low
Competitive
Position
Strong
Weak
X
Racial
Justice
Job
Training
Women’s
Leadership
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MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for
support)
Low Econ. Attractiveness
(Difficult to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Alternate
Coverage
HIGH
Strong
Competi
tive
Position
1. Aggressive
Competition
2. Aggressive
Growth
5. Reinforce
Best
Competitor or
Find Partner
6. “Soul of the
Agency”
Weak
Competi
tive
Position
3. Aggressive
Divestment
4. Invest, Find
Partner or
Divest
7. Consider
Partner or
Divest
8. Find Partner
or Divest
9. Aggressive Divestment
Alternate
Coverage
LOW
10. Orderly Divestment
CHILD TUTORING
GOOD
FIT
POOR
FIT
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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.
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MacMillan Matrix Worksheet
Program
Fit
Good
Child
Tutoring
Racial
Justice
Economic
Attractiveness
Poor
X
X
High
Alternate
Coverage
Low
High
X
X
X
Low
Competitive
Position
Strong
Weak
X
X
X
Job
Training
Women’s
Leadership
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MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for
support)
Low Econ. Attractiveness
(Difficult to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Alternate
Coverage
HIGH
Strong
Competi
tive
Position
1. Aggressive
Competition
2. Aggressive
Growth
5. Reinforce
Best
Competitor or
Find Partner
6. “Soul of the
Agency”
RACIAL
JUSTICE
Weak
Competi
tive
Position
3. Aggressive
Divestment
4. Invest, Find
Partner or
Divest
7. Consider
Partner or
Divest
8. Find Partner
or Divest
9. Aggressive Divestment
Alternate
Coverage
LOW
10. Orderly Divestment
GOOD
FIT
POOR
FIT
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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

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MacMillan Matrix Worksheet
Program
Fit
Economic
Attractiveness
Good Poor
Child
Tutoring
High
X
Racial
Justice
X
Job
Training
X
Low
High
X
X
X
X
Alternate
Coverage
Low
Competitive
Position
Strong
Weak
X
X
X
X
X
Women’s
Leadership
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MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for
support)
Strong
Competi
tive
Position
Weak
Competi
tive
Position
Low Econ. Attractiveness
(Difficult to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Alternate
Coverage
HIGH
1. Aggressive
Competition
2. Aggressive
Growth
5. Reinforce
Best
Competitor or
Find Partner
6. “Soul of the
Agency”
3. Aggressive
Divestment
4. Invest, Find
Partner or
Divest
JOB
TRAINING
7. Consider
Partner or
Divest
8. Find Partner
or Divest
9. Aggressive Divestment
Alternate
Coverage
LOW
10. Orderly Divestment
GOOD
FIT
POOR
FIT
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Cell 4. Invest, Find Partner, or
Divest.
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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.
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MacMillan Matrix Worksheet
Program
Fit
Economic
Attractiveness
Good Poor
Child
Tutoring
High
X
Alternate
Coverage
Low
High
X
X
Low
Strong
Weak
X
Racial
Justice
X
Job
Training
X
X
X
Women’s
Leadership
X
X
X
X
Competitive
Position
X
X
X
X
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MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for
support)
Low Econ. Attractiveness
(Difficult to attract resources
for support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Alternate
Coverage
HIGH
Strong
Competi
tive
Position
1. Aggressive
Competition
2. Aggressive
Growth
WOMEN’S
LEADERSHIP
5. Reinforce
Best
Competitor or
Find Partner
6. “Soul of
the Agency”
Weak
Competi
tive
Position
3. Aggressive
Divestment
4. Invest, Find
Partner or
Divest
7. Consider
Partner or
Divest
8. Find
Partner or
Divest
9. Aggressive Divestment
Alternate
Coverage
LOW
10. Orderly Divestment
GOOD
FIT
POOR
FIT
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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.
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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.
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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?

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MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for
support)
Strong
Competi
tive
Position
Weak
Competi
tive
Position
Low Econ. Attractiveness
(Difficult to attract resources for
support)
Alternate
Coverage
HIGH
Alternate
Coverage
LOW
Alternate
Coverage
HIGH
1. Aggressive
Competition
2. Aggressive
Growth
WOMEN’S
LEADERSHIP
5. Reinforce
Best
Competitor or
Find Partner
6. “Soul of the
Agency”
RACIAL
JUSTICE
3. Aggressive
Divestment
4. Invest, Find
Partner or
Divest
JOB
TRAINING
7. Consider
Partner or
Divest
8. Find Partner
or Divest
9. Aggressive Divestment
Alternate
Coverage
LOW
10. Orderly Divestment
CHILD TUTORING
GOOD
FIT
POOR
FIT
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Exercise 3
1. See sample Program Rating Worksheet for
Association X.
2. Place rated programs on the MacMillan Matrix.
3. Discuss results.
• What are the implications for organizational
sustainability?
• What next steps should be considered by
Association X?
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4. Take Action
 Develop
plan for implementing
results
 Implement Plan
 Use results in strategic planning
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Program Analysis Applications
Generate data for strategic planning
 Check on “hunches” or assumptions
 Analyze programs against new vision,
strategic plan
 Develop new programs
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Program Analysis Benefits
Increase understanding
 Develop consensus
 Encourage objectivity
 Build organizational capacity
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Tips for Engaging in Program
Analysis
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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!
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QUESTIONS?
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Contact:
Shelly Schnupp 414-412-0408
shellyschnupp@aol.com
SMS and Associates
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