OC Funders Roundtable 2014
Scaling Presentation
Why Scale?
 Theoretical and Practical Approaches
– Research, Organic, Opportunity Driven Approaches
 Growth Readiness Factors
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Strategic Plan & Impact Vision
Clear about Why Grow? – Not growth, for growth sake
Successful Model with a proven Theory of Change
Organizational Health & Wellness
Strong Leadership
• Board, CEO and Staff
– Evaluation & Outcome Measurement
– Stakeholder Support (internal and external)
 Scaling – Transformative Growth
Why Scale?
 Further implementing the six practices of high-impact nonprofits may
require going to scale:
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5.
6.
Work with government and advocate for policy change
Harness market forces and see business as a partner
Convert individual supporters into evangelists for the cause
Build and nurture nonprofit networks, treating other groups as allies
Adapt to the changing environment
Share leadership, empowering others to be forces for good
Types of Impact
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Increase outcomes for the same constituents
Add new types of outcomes for the same constituents
Serve more constituents
Diversify constituents
Serve a larger geographic area
Influence new leaders or communities
Create a new norm, standard, or model
Shift mass attitudes or behaviors
Change policies to reduce or eliminate need
Process of Scaling
What and How to Scale
Ideas/
Innovation/
Principles
Technology/
Skills
Replication in new markets
(franchise, affiliates, online)
KIPP
(franchise)
KaBOOM!
(online)
Technical assistance (training
talent, licensing, knowledgesharing, advice)
KIPP
KaBOOM!
How to
Scale
What to
Scale
Program
Comprehensiveness (longer or
wrap around services)
HCZ
Expansion within market (more
services or branches)
Green Dot
HCZ
Dissemination
(model or idea)
Social change, attitude shifts,
new markets
Policy
Luna Dance
The
Wooden
Floor
Luna
Dance
Change Management
Frank Talarico, Jr.
President & CEO
Goodwill of Orange County
Communication Strategy
• Taking Care of Your Organization’s Future
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Prepare for Change
Customize Targeted Messages
Ensure Change Communication is Timely
Listen & Keep Listening and Support Employees
Ensure Face-to-Face
Paint a Picture of the Future
• Prepare for Change
– Reinforce key messages
– Reinforce proper delivery and trickle down of message to keep its integrity
– Measure effectiveness of training by randomly visiting employees and
implementing a feedback system
– Influence attitudes with scenarios for the positive effect from org change
Communication Strategy
• Customize and Target Messages
– During organizational change, customize and target messages to meet
the needs of the different employee groups within your organization
• Ensure Change Communication is Timely
– Fast and effective message cut-through
– Use email alerts from CEO, Board Chair and/or key Sr. Leaders to draw
employees’ attention to important or urgent messages
– Prepare and pre-schedule messages
– Set up change communications in advance to prepare for, and respond
quickly to, staff feelings and feedback.
– During change, pre-schedule messages to ensure that employees hear
about changes at the same time, especially if you share news with the
media.
3/16/2012
Balance Score Card - Marketing
Communication Strategy
• Prepare for Change
– Change is inherently unsettling for people at all levels of an organization.
– All eyes are on leadership for guidance and support when organizational
change occurs.
– For change to be successful, the key stakeholders must model the way.
• Listen and Keep Listening
– Gauge employee attitudes to change
– Survey employees to gauge their attitudes towards organizational changes and
assess how well they understand them
– Keep your finger on the pulse
– Survey employees regularly as a temperature check and test that change
strategies are working every step of the way. Target dedicated surveys to
specific groups of staff (i.e. check whether you are making progress with a
resistant group).
– Set up Virtual Meetings for remote locations (i.e. webcams)
– Manage rumors and collect feedback
3/16/2012
Balance Score Card - Marketing
Communication Strategy
• Support Employees & Supporters
– Create FAQ’s to help offset fear and negative behaviors
– Make calls to key supporters and constituents
• Ensure Face-to-Face
– Have mandatory attendance
– Require managers to submit a brief survey about how and when
employees received messages
• Paint a Picture of the Future
– Describe how the changes will support your strategic plan and increase
your ability to achieve your mission
3/16/2012
Balance Score Card - Marketing
Case Study 1
A Start-Up Organization
The PGA Foundation
– How do you convince board members of an 86 year old brand to take
active part in the new organization and how entrepreneurs act
strategically to obtain other resources, human as well as financial?
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Pure start-up
Provided minimal seed capital
Given short runway for success
High probability for failure
Staff had to be hired, motivated
Board had to be reassured
Attitudes were supportive but elitist
Sponsors had to understand and believe
PGA FoUNDATION
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Show Wins Early
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Provide Real Services
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Attack Competition
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Toyota Tour Cup Series
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Local, smaller, junior tour association acquisitions
Largest operating foundation of its kind in the United States in 1997-2003
Accounted for more PGA Tour players than any other similar organization
Accounted for more NCAA Division I golf scholarships - boys and girls - than any other similar organization
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Board had to be reassured
Attitudes were supportive but elitist
Sponsors had to understand and believe
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NCAA Compliance Seminar
Create FAQ’s to help offset fear and negative behaviors
Make calls to key supporters and constituents
Ensure Face-to-Face
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Radio Disney
Inner city youth programs
Have mandatory attendance
Require managers to submit a brief survey about how and when employees received messages
Paint a Picture of the Future
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3/16/2012
Describe how the changes will support your strategic plan and increase your ability to achieve your mission
Balance Score Card - Marketing
Case Study 2
Planned Succession
Goodwill of Orange County
– How do you reinvigorate a household name brand organization with
only four CEO’s in the past 80 years—all retired as senior citizens?
• A nonprofit organization founded in Orange County in 1924, that
helps people gain greater independence for a more successful life
• Budget of $100M+
• More than 90¢ of every dollar spent supports programs and
services
• 16,133 People Served in 2013
• $10.6M Earned in 2011 by people who found jobs through Goodwill
• 23 Retail Stores and 24 Donation Sites
Goodwill of orange county
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Establish a Transition Overlap Plan
Engage outgoing leader
Schedule meetings with existing relationships & partners for hand-off
Appreciate everyone’s anxiety
Articulate vision early
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Articulation isn’t necessarily execution
Listen and learn
Meet the board individually, casually
Be visible – internally & externally
Show motion
Remember two clichés:
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Old Habits Die Hard
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Imitation is NOT the Fondest Form of Flattery
Board had to be reassured
Attitudes were supportive but elitist
Sponsors had to understand and believe
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Ensure Face-to-Face
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–
•
Create FAQ’s to help offset fear and negative behaviors
Make calls to key supporters and constituents
Have mandatory attendance
Require managers to submit a brief survey about how and when employees received messages
Paint a Picture of the Future
–
3/16/2012
Describe how the changes will support your strategic plan and increase your ability to achieve your mission
Balance Score Card - Marketing
Goodwill of orange county
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Goodwill of Orange County (GOC) transition required acceleration
GOC transition focused on “focus”
GOC transition was intended to make a great organization truly spectacular
Show motion
GOC, for me, is mutually inspiring
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Board had to be reassured
Attitudes were supportive but elitist
Sponsors had to understand and believe
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Create FAQ’s to help offset fear and negative behaviors
Make calls to key supporters and constituents
Ensure Face-to-Face
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“Wake up every morning, think about what truly spectacular thing we can do for our clients, and then go out and DO it!”
Have mandatory attendance
Require managers to submit a brief survey about how and when employees received messages
Paint a Picture of the Future
–
3/16/2012
Describe how the changes will support your strategic plan and increase your ability to achieve your mission
Balance Score Card - Marketing
Scaling and Innovation
May 22, 2014
Growth Policy
Adopted 2005
Helping families help themselves” is at the core of Families
Forward’s mission and values. While we recognize that there
are limitations to the extent of service reach and programs
that can be offered, we none the less believe that helping
families must always be our primary concern. In so far as
families will continue to need such assistance, Families
Forward will continue to consider new ways and
opportunities to provide assistance. We recognize that this
statement implies a willingness to let the agency’s reach
extend and its programs broaden.
However, this willingness must be governed by prudence.
Therefore the Families Forward Board will consider new
opportunity proposals as long as such proposals:
Growth Policy
• Complement our core mission
• Correspond to our philosophy of service delivery
• Sustain the quality of existing services without
compromise
• Demonstrate the financial support necessary to
grow without jeopardizing existing programs
• Support the infrastructure necessary to carry the
additional load
Recession 2007
Social Services faced with incredible demand
Limited resources
Innovation Resource Fair
Housing First
Community Cares
Planning 2014
• Move Complete to 8 Thomas, Irvine
• Balance sheet and assets positive
• Many opportunities but where is the biggest
impact
• Collaborations
• Mission
• Value
THINKtogether.org
The Importance of Scale
“While small may be beautiful, size matters when it comes to having
a substantial impact on society’s pervasive problems. By leveraging
economies of scale and management talent, large nonprofits can
deliver services at lower cost. They can offer their staff
compensation and career opportunities. They have greater capacity
to conduct experiments, assess innovations and share best practices
across multiple locations. In an effective [philanthropic capital]
system, innovative nonprofits with the best management and social
change agenda would grow in scale and scope while less effective
one would diminish and eventually disappear.”
Robert S. Kaplan
Allen S. Grossman
Harvard Business Review
October 2010
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SCALING
IMPACT
Policy
Perception
Practice
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Shalimar Story
25
60
50
$ in Millions
40
30
20
10
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Fiscal Year Ending
SD Contracts
Individual Giving
Corp & Foundation
26
California’s Achievement Gap
1000
900
2013 California API by Student Subgroup
American
7%
906
Asian
9%
Target = 800
853
800
CA Student Enrollment Demographics
African (grades 2-11)
744
700
Caucasian
28%
708
Hispanic
56%
600
500
Asian
Caucasian
Hispanic
African
American
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5 PILLARS OF THINK TOGETHER’S
STRATEGIC PLAN
Deliver High
Quality
Programs
Build
Financial
Sustainability
Measure Our
Results
Leverage Our
Platform
Strengthen
the Platform
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