1 the macmillan matrix a tool for program analysis presentation to the ywca mid-atlantic region sms...

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The MacMillan Matrix A Tool for Program Analysis

Presentation to the

YWCA Mid-Atlantic Region

SMS and Associates

Shelly M. Schnupp

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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

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?

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)

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)

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?

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Program Analysis Steps

1. Preparation

2. Implementation

3. Analysis

4. Action

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Step 1. PreparationAssemble analysis team

StaffBoard

Assemble Program ProfilesIdentify additional data

Mission, VisionStrategic Plan

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Program Profile 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

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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

Exercise 1

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Step 2. Implementation Present, review program data Classify each program according to 4 criteria

Alone, silentlyDiscuss, reach group consensusNote classifications on worksheet

Place programs on matrix Review results

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MacMillan Matrix Worksheet

Program Fit Economic Attractiveness

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Child Tutoring

Racial Justice

Job Training

Women’s Leader-ship

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MacMillan MatrixHigh Economic Attractiveness(Easy to attract resources for support)

Low Econonic Attractiveness(Difficult to attract resources for

support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

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

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MacMillan Matrix Worksheet

Program Fit Economic Attractiveness

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Child Tutoring

X X X X

Racial Justice

Job Training

Women’s Leader-ship

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MacMillan MatrixHigh 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

Alternate Coverage

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 DivestmentCHILD TUTORING

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 Economic Attractiveness

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Child Tutoring

X X X X

Racial Justice

X X X X

Job Training

Women’s Leader-ship

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MacMillan MatrixHigh 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

Alternate Coverage

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

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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

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Child Tutoring

X X X X

Racial Justice

X X X X

Job Training

X X X X

Women’s Leader-ship

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MacMillan MatrixHigh 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

Alternate Coverage

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 DivestJOB TRAINING

7. Consider Partner or Divest

8. Find Partner or Divest

9. Aggressive Divestment 10. Orderly Divestment POOR FIT

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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.

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MacMillan Matrix Worksheet

Program Fit Economic Attractiveness

Alternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Child Tutoring

X X X X

Racial Justice

X X X X

Job Training

X X X X

Women’s Leader-ship

X X X X

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MacMillan MatrixHigh 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

Alternate Coverage

LOW

Strong Competitive Position

1. Aggressive Competition

2. Aggressive GrowthWOMEN’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

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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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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.

Exercise 2

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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 MatrixHigh 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

Alternate Coverage

LOW

Strong Competitive Position

1. Aggressive Competition

2. Aggressive GrowthWOMEN’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 DivestmentCHILD TUTORING

POOR FIT

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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?

Exercise 3

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4. Take ActionDevelop plan for implementing

results Implement PlanUse 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

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?

Contact:

Shelly Schnupp 414-412-0408

shellyschnupp@aol.com

SMS and Associates