leading with innovation, learning from failure
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Leading with Innovation, Learning from Failure . The Corps Network 2014 National Conference February 11, 2014. Introduction. Presenters: Wendy Butts – Los Angeles Conservation Corps Dan Knapp – Los Angeles Conservation Corps Jeff Parker – Northwest Youth Corps. LA Conservation Corps. - PowerPoint PPT PresentationTRANSCRIPT
Leading with Innovation,
Learning from Failure
The Corps Network 2014 National Conference
February 11, 2014
February 11, 2014
Introduction
Presenters:
• Wendy Butts – Los Angeles Conservation Corps
• Dan Knapp – Los Angeles Conservation Corps
• Jeff Parker – Northwest Youth Corps
February 11, 2014
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LA Conservation CorpsMission: LA Corps’ primary mission is to provide at-risk young adults and school-aged youth with opportunities for success through job skills training, education and work experience with an emphasis on conservation and service projects that benefit the community.• 400 18- to 24-year-old Young Adult Corps corpsmembers who receive on-
the-job training, paid work experience and attend our charter school site to complete their high school education
• 500 14- to 17-year old corpsmembers who perform paid community beautification work in Clean & Green
• 250 14- to 18-year-old students enrolled in two full-time charter high school sites (operated by The Education Corps)
• 6,000 elementary and middle school students (ages 10 to 14) from 16 LAUSD schools who participate in after school enrichment activities and receive tutoring services in our After School Program
February 11, 2014
Northwest Youth Corps
Mission: To help youth and young adults learn, grow, and experience success.• Work in 5-state area• 800 16- to 19-year-old participants• 150 18- to 24-year-old participants• 60 full-time high school students• Residential and non-residential formats
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Introduction
Workshop outline:
1. Discuss the drivers of innovation2. Discuss the potential risks of innovation3. Case Study Analysis4. Lessons Learned5. Share risk reduction and analytical tools
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What Drives Innovation in the Corps Industry?
• Diversify Funding Streams• Increase Participant Outcomes/Services• Integrate Operations• Particular Staff Expertise and/or Passion• Opportunity• Other?
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What is the Risk of Failure?
• Financial shortfall• Unmet participant outcomes• Mission drift• Harm to brand• Bad public relations• Other?
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What is Your Organizational Risk Tolerance Level?
• Risk Tolerance Spectrumo Staffo Boardo Participantso Other Stakeholders
• Difference between “need to” and “want to”• Size of the opportunity• Organizational culture• Organizational experience – positive and negative
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Case Study: Los Angeles Conservation Corps’
Weatherization Program
Challenges and Lessons Learned
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The Program Design
1. Long Beach Community Action Partnership2. Los Angeles Conservation Corps Network• LA Conservation Corps – lead• Long Beach Conservation Corps• San Gabriel Valley Conservation Corps• California Conservation Corps
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Wx Program Organizational Chart
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Benefits for LA Conservation Corps• Good platform for on-the-job training for
corpsmembers• Mechanism for accessing and capitalizing on
the influx of ARRA funding• Good source of contract funding with a
sustainable infrastructure for growth• Potential profit-generating social enterprise
project
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What We Knew/Didn’t Know in Planning Phase
• Cash flow was going to be an issue• Partnership lacked key expertise/was co-dependent • Staff training was extensive and time-consuming• CSD was bogged down with ARRA-funded projects
and couldn’t provided needed support• Not enough skilled professionals were available• LBCAP would choose to inspect all homes at 100%• Collaboration with LBCAP would be difficult
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A Problematic Implementation• Multiple trips to homes meant low or no profit-
margin• Billing cycle was too short; LACCN missed
opportunity to bill for services provided• Higher than expected standard of work quality
created issues
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The Intervention
• Harsh financial realities • Requests for reimbursement/
programmatic changes unaddressed• Analysis/realistic expectations/forecasting
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The Final 18 Months
Measurable losses + Questionable management changes +
Issues with financial reporting = Unsuccessful program
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What We Didn’t Know/Should Have Done (in Retrospect)
• Relationship with partner difficult to manage• 6- to 8-year recovery of start-up costs• Depleted human capital/low skills levels of staff• Ensured conflict resolution process at start• Delineated clear expectations at start• Created exit plan during Planning & Design• Better plan for contingencies• Build in checks & balances/better reporting to stakeholders• Reported on finances throughout implementation
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Primary Causes of Failure
• Lack of control of primary functions, inc. marketing
• Lack of oversight of and systems for program• Insufficient program modeling of costs,
finances & operations• Management structure of partner
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Lessons Learned• Buy-in & collective responsibility• The importance of planning• The power of partnership• Looking forward & looking back• It’s ok to make mistakes/knowing when to say
when• Power in the wrong hands
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Where Do We Go From Here?• Leadership has changed the way it works
together and what it reports to the Board• Business plans for any off-mission programming
and/or new endeavors• Creation of simple to read and understand
financial, programmatic and strategic reporting tools with monthly info. on unbilled receivables, profit & loss (by project), hidden & uncovered costs and administrative expenses.
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Where Do We Go From Here? (cont.)
• Information on new projects shared during planning phase/key strategic planning info. reported on by quarter
• Financial management infrastructure reviewed/checks and balances integrated
• Collaborative approach to decision making• Continue to work on relationship building/only
enter into contracts/situations that make good business sense
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Process for Program Innovation
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Opportunity Market Study
Due Diligence
Testing Assumption
sInnovation
Analytical Tools for Innovation
Market study
• Market size• Market growth rate• Market profitability• Cost structure• Market trends• Key factors for success and sustainability
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Analytical Tools for Innovation
Due Diligence Research
LACC Project Evaluation Questionnaire
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Analytical Tools for Innovation
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Revenues 2014 Budget 2015 Budget 2016 Budget Optimized Budet Optimized Budet
Total Revenue $ 452,865 $ 508,830 $ 581,400 $
713,400 $ 840,300
Indirect Charges
Direct Expenses
2014 Budget 2015 Budget 2016 Budget Optimized Optimized
Total Expense $ 452,686 $ 505,420 $ 581,394 $ 701,237 $ 815,228
Total Revenues $ 452,865 $ 508,830 $ 581,400 $ 713,400 $ 840,300
Subtotal Income (Loss) $ 179 $ 3,410 $
7 $ 12,164 $ 25,072
Pro Forma –Test Every Assumption
Analytical Tools for Innovation
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Cash Flow –Test Every Assumption
Year 1 Revenue Starting Surplus September October November December January February March April May June $ 70,522 $ 54,785 $ 51,881 $ 29,381 $ 38,381 $ 48,881 $ 50,381 $ 47,381 $ 48,881 $ 32,381 Year 1 Expense September October November December January February March April May June $ 50,382 $ 46,382 $ 46,382 $ 42,882 $ 43,882 $ 45,382 $ 43,882 $ 45,382 $ 46,882 $ 42,382 Year 2 revenue Starting Surplus September October November December January February March April May June
$ 19,032 $ 85,434 $ 64,144 $ 61,065 $ 51,065 $ 55,065 $ 59,732 $ 60,400 $ 59,065 $ 59,732 $ 52,400 Year 2 Expense September October November December January February March April May June $ 65,185 $ 59,851 $ 59,851 $ 55,185 $ 56,518 $ 58,518 $ 56,518 $ 58,518 $ 60,518 $ 54,518 Year 3 revenue Starting Surplus September October November December January February March April May June
$ 41,961 $ 102,590 $ 79,064 $ 75,602 $ 63,102 $ 68,102 $ 73,935 $ 74,768 $ 73,101 $ 73,935 $ 64,768 Year 3 Expense September October November December January February March April May June $ 80,055 $ 73,389 $ 73,389 $ 67,555 $ 69,222 $ 71,722 $ 69,222 $ 71,722 $ 74,222 $ 66,722
Analytical Tools for Innovation
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Working Capital –Test Every Assumption
September October November December January February March April May June
Year 1 $ 20,140 $ 28,543 $ 34,042 $ 20,540 $ 15,039 $ 18,537 $ 25,036 $ 27,034 $ 29,033 $ 19,031
Year 2 $ 39,281 $ 43,574 $ 44,789 $ 40,670 $ 39,218 $ 40,433 $ 44,315 $ 44,863 $ 44,078 $ 41,960
Year 3 $ 64,495 $ 70,170 $ 72,384 $ 67,931 $ 66,812 $ 69,025 $ 74,572 $ 75,951 $ 75,665 $ 73,711
September October November December January February March April May June $-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Year 1Series2Year 2Series4Year 3
Discussion
Examples from the Group
What were the lessons learned?
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Contact Us:• Wendy Butts, Managing Director, LACC
213/362-9000 x206/[email protected]
• Dan Knapp, Deputy Director, LACC213/362-9000 x242/[email protected]
• Jeff Parker, Executive Director, NYC 541-349-7500 [email protected]
February 11, 2014