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TRANSCRIPT
Mission Driven Sustainability: How to Make Strategic Decisions in
Programs
December 7, 2018
Program Lifecycle Model
Stage: I II III IVIntro Growth Maturity Decline
Contr
ibution
of
Re
so
urc
es
Time
Phase I: Introduction
Characteristics
• Brand new programs
• Little established infrastructure
• Few, if any competitors
• Unmet demand for the service
• High level of internal and external
excitement
• Resource intensive
Introduction Strategies
• Invest in:
• Tap national/institutional learning – best practices
– Infrastructure
– Processes
– Program Administration
• Enlist volunteers
• Identify appropriate donors and sponsors – those
whose long-term vision is aligned with the program
and who invest in new ideas
Phase II:
Growth Characteristics
• Fast-growing, relatively new program
• Has achieved initial successes
• Gaining efficiencies
• Attracting external attention
• High internal excitement
• Community acceptance
• Program is featured in agency literature
Growth Strategies
Goal: Increase size, scope, efficiencies
• Invest in
– Recruitment
– Training – program specific capital
• Increase capacity to respond to demand while
minimizing fixed asset investments
• Begin lobbying process for government and/or other
funding
• Adapt offering based on stakeholder feedback
Phase III:
Peak Characteristics
• Program has reached maximum capacity
• Net contributor of resources to the agency
• Processes are well established
• Solidified, dedicated funding
• Competition may be present
– Players come into and out of the market
• Slackening internal excitement – things have
become routine
Flow of Resources
Time
Co
ntr
ibu
tio
n o
f
Re
so
urc
es
Finances VisibilityHuman Resources Differentiated services
Shared best-practices Mission reinforcement in community Institutional knowledge & in CC
Peak Strategy
Goal: Maximize contributions to the agency
• Maximize resource contributions
– Maximize efficiencies (economies of scale,
cost cutting) to provide financial resources
– Serve as internal consultants, mentors,
trainers to newer programs
• Share best practices at national level
Phase IV:
Decline Characteristics
• Losing funding/net loss/requiring
subsidies
• Overcapacity
• Managerial headache; low excitement
• No longer low-cost or highest quality
provider
• Shifted social priorities or needs
• Employee satisfaction low
Stage IV Programs
are not “bad programs!
Usually the move to
stage IV is outside of
your control:
• Alternatives appear
• Socio-political priorities change
• Need diminishes
• Internal priorities change
The Portfolio Needs Balance:
Unbalanced Portfolios
Time
The Balanced Portfolio
Time
Co
ntr
ibution o
f
Re
so
urc
es
Nimble Responsive
Adaptive Sustainable
Future-focused
Questions and Thoughts?
Program Review ProcessCleveland Catholic Charities
Sustainability Review and Decision Making Process for Improving
Existing Services
Cleveland Catholic Charities
• History: 106 years of service to the eight counties of the Diocese of Cleveland serving 3,500 square miles and over 400,000 individuals
• Populations Served: Children & Families, Older Adults, Persons with Disabilities and Persons with Emergency and Transitional Needs
• Operational Budget: $95,000,000• Funding:
– 61% Governmental Funds– 15% Fee for Service– 14% Philanthropy– 11% Contributions
Catholic Charities Cleveland’s Sustainability Model
Program
Analysis
Decision
Making
Sustainable Mission-Centric
NP Business Model
What Do We Mean By “Sustainability”?
Sustainability includes a focus on financial health, programmatic performance, community impact, and mission impact over time.
Programmatic and financial performance are intertwined elements that co-exist to successfully support the organization’s mission to provide value to the community and persons served.
Stewardship
Strategy Discussion and
Implementation
Mission
Impact
What is the Purpose of Sustainability?
• Provides for a standardized approach to evaluate the relative health of a program;
• Allows staff to assess the impact of targeted strategies on improving the performance of programs and services against mission impact and financial viability measures; and,
• Affirms continuous decision making regarding programs that exist in a constantly changing environment.
Why Sustainability?
• It helps us make strategic decisions to maintain the health of our programs and services
• It provides program managers with data to support their work
• It provides executive leaders with data to make decisions about programming
• It helps the board see the organization’s program and financial strategies in a visual image that assists them in a strategic partnership with leadership
• It affirms the idea and process of continuous decision making that supports our best work
How Do We Evaluate Services Based on Mission Impact and Stewardship?
• We have developed a tool to assess the dual bottom line of program sustainability based on:– Mission Impact
– Stewardship
• By quantifying a program’s mission impact and stewardship, we can analyze programs in a more equitable fashion
The Steps
1
Select the Programs & Gather Data
2
Evaluate Programs
3
Select Goals and Set
Strategies
4
Monitor Goals
STEP 1: Select the Programs and Gather the Data
• We review programs that have been active for more than one year
• We gather data that is already collected for other purposes:– Outcomes– Customer Service– Contract Deliverables– External Audits– Staffing Information– Demographic Information– Financials– Needs Assessment Data
STEP 2: Evaluate Programs
We evaluate along 2 assessment categories with 4 elements and 22 targeted evaluation statements:• Mission Impact
– Excellence in Execution - “To what degree does the program reflect the best work that we can do?”
– Filling an Important Gap – “To what extent is this program filling a need in the community?”
• Stewardship– Volume and Outcomes – “ To what degree does the
program reach and impact peoples lives?”– Meeting Budget Expectations – “To what extent is or has
the program been able to meet budget expectations?”
STEP 3: Select Goals and Set Strategies
• In a discussion format, teams score each program and select a Matrix Symbol which determines a broad goal for each program. The team then develops a specific strategy(ies) that will be worked on for each program.
• The Senior Director of each of our 5 divisions has final approval on all selected strategies.
• Strategies are entered into a database for monitoring.
How We Categorize Our Services
High Mission Impact/
Low Financial Viability (Stewardship)
High Mission Impact/
High Financial Viability (Stewardship)
Struggling Mission Impact/
Struggling Financial Viability (Stewardship)
Struggling Mission Impact/
Low Financial Viability (Stewardship) Over Time
How We Select Goals For Programs
• Heart – These services are dear to our heart, spot on with our mission, but costs us dollars to run.– Goal: Keep, but contain costs
• Star – These services are spot on with our mission and have exceeded budget expectations. They can support themselves and potentially other programs.– Goals: Invest and Grow
• Caution – These programs are struggling in their mission impact and/or in meeting budget expectations. They may be able to turn it around with targeted strategies for sustainability.– Strategy: Explore strategies to increase sustainability with deadlines
• Stop – These programs are suffering and making little or no impact related to mission and meeting budget expectations. They have struggled over time.– Strategy: Close or Give Away
STEP 4: Monitor Strategies
• Strategies are tracked and monitored quarterly by:– The division leader in supervision with the site
director– The Program Committee of the Board– Programs that are seriously underperforming are
more closely evaluated at the Board Committee level (Finance and Program Committees)
• Programs and previously developed strategies that are not achieved are reviewed annually using the Sustainability Evaluation process
Analysis of a Heart Program: Out-Patient Mental Health
Evaluation Elements
Program NameM
issi
on
Imp
act:
Exce
llen
ce in
Exe
cuti
on
Stew
ard
ship
:
V
olu
me
& O
utc
om
es
Mis
sio
n Im
pac
t:
Fi
llin
g an
Imp
ort
ant
Gap
Stew
ard
ship
:
M
eets
Bu
dge
t Ex
pec
tati
on
s
20
18
Mat
rix
Sym
bo
l
(Hea
rt, S
tar,
Cau
tio
n,
Sto
p)
OPMH - Ashland 3.5 3.4 3.3 3.7 HeartOPMH - Geauga 3.5 3.5 3.4 2.8 CautionOPMH - Lake 3.5 3.3 3.4 2.4 CautionOPMH - Medina 3.7 4.0 3.5 4.0 HeartOPMH- Summit 3.6 2.0 3.3 3.1 Heart
OPMH - Wayne 3.4 3.7 3.4 3.0 Heart
Analysis of a Stop Program: Early Childhood Education
Evaluation Elements
Program Name: Early
Childhood Mis
sio
n Im
pac
t:
Exce
llen
ce in
Exe
cuti
on
Stew
ard
ship
:
Vo
lum
e &
Ou
tco
mes
Mis
sio
n Im
pac
t:
Filli
ng
an Im
po
rtan
t G
ap
Stew
ard
ship
:
Mee
ts B
ud
get
Exp
ecta
tio
ns
Mat
rix
Sym
bo
l
(Hea
rt, S
tar,
Cau
tio
n, S
top
)
2016 3.4 1.8 2.2 2.0 Caution
2017 3.5 1.7 2.1 1.8 Stop
Questions and Thoughts?
Program Review Process Catholic Community Services of Southern
ArizonaDecision Making for New, Expanded
Program Opportunities Assessment of Programs with
Operational Challenges
Catholic Community Services
• History: 85 Years in 9 Counties Covering 44,000 Square Miles started with Child Welfare and Basic Needs Support Programs
• Populations Served: Pregnant Teens and Babies to Older Adults in Adult Day Health Centers
• Operational Budget: $26,000,000
• Funding: 68% Government Funds
– 17% Fees For Services
– 15% Philanthropy
Program Review Process
Operationalizes Decision Making According to:
• Programs Mapped in the 4 quadrants
• Stage IV Programs
• Funnel for New Programs
• Financial and Operational Analysis
• Defines Roles and Responsibilities
• Significance of the Decision
High Mission Impact, Low Profitability
High Mission Impact, High Profitability
Low Mission Impact, Low Profitability
Low Mission Impact, High Profitability
Mis
sio
n Im
pac
t
Profitability
Capturing Dual Bottom Line
What can we do with
Stage IV programs?
Recycle assets
Move to Stage III
Keep: Sacred Cows
Transition/Hand off
New Program Funnel
Stage I
The Future of the
Organization
Mission
Competence
Fit
Ideas f
rom
Constitu
ents Financial
Viability
Common Elements
Operational StandardsMission and Valued Action Alignment
Needs Analysis
Capability Analysis: Program and Administrative
Community and Stakeholder Support
Operational Liabilities
Obligation and Risk
Timeline Analysis
Common Elements
Financial Risk Analysis
• Viable Sustainable Funding Stream
• Contract Provisions, Labor Costs
• Capital Requirements
• Cash Flow Requirements
• Commitment to Fund Raise
• Timeline
Roles and Responsibilities
• Executive Leadership Team and Program Management
• Continuous Assessment Improvement Process Committee
• Finance Committee
• Board of Directors
Mitigating Factors
Stage IV Programs
• Facility Obligations
• Contract Penalty Clauses
• Loan Commitments
• Risk to Reputation
Stage IV Alternatives
Consolidation Within the Organization
Financial, Quality, Diversification,
External Stakeholder Concerns
Disengage
Transfer to Another Organization
Partner with Another Organization
Discontinue: Program is neither Financially or Operationally Sustainable Over Time
Stage IV Examples
• Rural Home Health Program
• Rural Transportation
• Casa de Crianza
• St Elizabeth Health Center
Stage IV Challenge
Case Study: St. Elizabeth Health Center
50 year old agency serving uninsured and medically underserved groups with primary care and dental services. A signature program of the organization.
Expense Budget: $2.5 Million Revenue Loss: $ 1 million – State eliminated fundingFacility Commitments: 15 year to donor for remodelCumulative Loss over 2 years: $2.3 millionMission Value: HighQuality: Patient Care HighSacred Cow
Stage IV Challenge
Case Study: Community Living Program Program provides residential support services to persons who have significant disabilities to live independently in the community. 35 year history in the community.
• CCS is the sole provider for persons deaf and blind
• Expense Budget: $4,000,000- $149,000 deficit
• Rate reduction from state risked increasing the budget.
• Quality high – program ratings above 98%
• Contract Exit Clauses
• Facility Commitments
New Program Funnel
• Financial Risk Analysis
– Start Up Costs: Sunk or Recoverable
– Administrative Capacity: Infrastructure Investment
– New Capital Acquisitions
– Long Term Financial Obligations
• Operational Analysis
– New Partnerships
– Organizational Experience
New Program Funnel
Case Study Medical Respite
In 2015 CCS was approached by the Catholic Health
System to consider establishing a Medical Respite
Program for people who are experiencing
homelessness. To respond to this request CCS
would need to establish the need, create a model of
care, build a facility and determine if an operational
funding stream could be established.
New Program Funnel
The Deaf community approached CCS in 2016 to consider establishing an assisted living program for people who are Deaf, Deafblind, or with other physical and mental challenges. Deaf people who use American Sign Language have a deep concern they will be isolated as they age and are placed in facilities where they cannot communicate. Our task was to evaluate the need, evaluate a facility and establish financial viability.
Questions and Thoughts?
Contact Us
• Jean Beil, SVP of Programs & Services, CCUSA [email protected]
• Patsy Holian, Executive Vice President, Catholic Charities Diocese of Cleveland [email protected]
• Peg Harmon, CEO, Catholic Community Services of Southern Arizona [email protected]