Transcript Introduction to United Way Business Model

United Ways of Washington
Introduction to the United Way Business Model
July 20, 2011
Agenda
•
Community aspirations, challenges and the role
of the United Way
•
Work of the traditional UW and the need for
change
•
United Way Business Model
•
Discussion
2
Why We Exist and the Value We Add
Mission
To improve lives by mobilizing the
caring power of communities around the
world to advance the common good.
Value Proposition
We galvanize and connect a diverse set
of individuals and institutions, and
mobilize resources, to create long-term
change.
3
Our environment
We face internal and external challenges
•
We’re losing donors
•
Companies moving to “strategic philanthropy” approach
•
Overreliance on old economy business
•
There is a large trust gap across age groups
•
We have low public trust compared to other large nonprofits
But we also have real assets
•
Strong brand
•
Large footprint
•
We can and do bring people together
•
Millions of supporters
4
What does this all mean?
• We are going to have to work very differently,
building on our assets
• We have to do this with our communities
• Figure out what makes a difference, bring folks
together to get it done, and raise money to do it
• We’ve always been an intermediary and we still
are, but we have to add value
5
United Way Business Model
What will it take to become a
United Way mobilizing for community impact?
A deeper focus on certain elements of the Standards of Excellence
Engage and
align with the
community
Create &
deepen
relationships
with
individuals &
institutions
Develop
strategies
and focus
actions
Mobilize
resources
Align and
execute on
plans and
strategies
Measure,
evaluate &
communicate
results
If we wish to be effective, we will need to:
Operate as an
integrated
and aligned
organization
Have the right
skills,
competencies
& leadership
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Engage and align with the community
What it means:
• Working with stakeholders to set community-wide goals and
priorities
What United Way does:
• Builds community knowledge through conversations
• Builds coalitions of multi-sector partnerships
• Communicates how people’s input is making a difference
• Identifies people wanting to do more – the “hand raisers”
What needs to change:
• Base United Way decisions on community priorities
• Listen first, and not just once
7
Create & deepen relationships with
individuals & institutions
What it means:
• Understanding and deepen relationships with individuals and
institutions aligned around long-term community goals
What United Way does:
• Puts processes in place to make relationships work
• Collects data on supporters and uses it
• Uses technology to track relationship interactions
What needs to change:
• Expand beyond institutional focus to include individual focus
• Building and managing relationships becomes a core
competency
8
Develop strategies and focus actions
What it means:
• Using community and expert knowledge to set bold community
goals and build strategies with community partners that get at the
root causes of education, income, and health challenges
What United Way does with partners:
• Sets meaningful community goals
• Builds action plans
• Gets agreement on which partners will play what role
What needs to change:
• Strategies are community-wide, comprehensive strategies, not
United Way strategies
• Strategies have to get at root causes – we can’t direct service
our way into social change
9
Mobilize resources
What it means:
• Identifying what it will take to get to your results and giving
donors, volunteers, and advocates a chance to support the work
What United Way does:
• Identifies the resource needs of the community change
strategies
• Develops multi-year plans to mobilize resources
• Gives supporters things to do that will lead to results –GAV
What needs to change:
• Create ways for people to do more than just give, especially in
the workplace
• Generate resources aligned to results
• Money is not the only resource that matters in social change
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Align and execute on plans and strategies
What it means:
•
Aligning United Way activities and resources to deliver on our
roles in community change efforts; implementing community
strategies; and sharing accountability
What United Way does:
•
Aligns operations and processes to support community
strategies
•
Execute in a cross-functionally aligned manner
What needs to change:
•
Integrated execution replaces siloed behavior
•
Creating community change is long-term with interim metrics
of progress
11
Measure, evaluate & communicate results
What it means:
• Evaluating results of the community change strategies, adjusting
them, and sharing successes
What United Way does:
• Sets up a system of ongoing data collection and review
• Shares stories of progress to build public will
• Adjusts strategies as needed
What needs to change:
• Measure in populations improved, not just clients served
• Use storytelling to connect your efforts to the larger change over time
• United Way doesn’t take the credit-celebrate partners
12
How we execute against the Business
Model
• Work on things that matter to people
• Connect with more people - get them
involved
• Get agreement on strategies
• Give everyone a chance to support the plan
• Tell people about the results
13
Some implications for our work
•
New skills – change management leadership, grassroots organizing,
issues management, strategic communications, advocacy,
relationship management, social media
•
New content expertise – education, income, and health
•
Executing according to value proposition – conveners,
“mobilizers”, “aligners” of efforts towards long-term community
change
•
Diversification of revenue streams – complex grants (federal,
state, and private), individual gifts, etc.
•
Technology – new platforms to enable individual giving, advocacy,
and volunteering; new relationship management tools; back
office/financial systems for a new era
•
Full organizational alignment – functional teams must work
seamlessly
•
Network alignment – we must operate as a truly interdependent
network that coordinates appropriately
14
Small size not necessarily a disadvantage
Smaller size often provides:
• Greater agility
• Quicker buy-in
• Greater reliance on community resources
• Closer relationship with stakeholders
15
Discussion
What are your reactions to the Business Model?
How would your board and your community
respond to these ideas?
What are the opportunities in your community to
implement some of these business practices?
16
Thank You
17
United Ways of Washington
Executing on the Business Model
July 20, 2011
18
Session Purpose
Share effective approaches and practices that
help United Ways become more relevant in their
communities as well as increase revenue and the
number of donors.
19
Agenda
Executing on the business model
Touchstones for executing on the business framework
•
Turn Outward
•
Build deep, meaningful, ongoing relationships
•
Go beyond funding services to true Impact Strategies
•
Connect investors to strategies
•
Measuring success
Discussion
20
Our Response to Changes in Our
Environment
If we’re going to add value in communities, we have to:
Galvanize and connect a diverse set of individuals and
institutions, and mobilize resources, to create long-term change.
•
•
•
•
•
Listen to what the community cares about
Figure out what’s going to make a difference
Raise money and bring supporters together
Get it done – with your partners
Talk about your progress, the role you play, and adjust
when you need to
21
United Way Business Model
ENGAGE WITH
COMMUNITY
MEASURE AND
COMMUNICATE
BUILD
STRATEGIES
EXECUTE
GATHER
RESOURCES
22
Execution to what end?
Brand positioning
and promise
Pillars or
Focus areas
Target issues
Intended results
Indicators
Advancing the common good by creating
opportunities for a good life for all
Education
Income
Health
Helping children and
youth achieve their
potential
Promoting financial
stability and
independence
Improving people’s
health
e.g., academic
achievement
e.g., Young people graduate
from high school
e.g., Public on-time high
school graduation rate*
*As measured by the averaged freshman graduation rate
23
Touchstones for Executing on the Business
Framework
1. Turn Outward
2. Build deep, meaningful, ongoing relationships
3. Go beyond funding services to true Impact
strategies
4. Connect investors to strategies
5. Measuring success
24
Touchstone 1: Turn Outward
• The act of seeing and hearing those in the
community and acting with intentionality to create
change.
• A reorientation toward the public.
25
Turn Outward: The Quiz
1. Complete the Turn Outward Quiz individually
2. Within your group, compare observations
3. Identify three benefits of turning outward
4. Identify three concerns
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Touchstone 2: Build deep, meaningful,
ongoing relationships
• Relationship Management (RM) is an organizational
strategy to put the constituent at the center of everything
we do.
• The goal of relationship management is to better
understand, relate to and engage a constituent to (a)
improve their experience with our brand and (b) generate
longer-standing and more significant relationships with
them.
27
Touchstone 2: Build deep, meaningful,
ongoing relationships
• Relationship management success is contingent on
everyone in the organization, from the CEO to each and
every staff and Board member and volunteer, buying into
and supporting the effort.
• Requires shifting the organization’s mindset to center on
relationships rather than transactions.
Relationship management is a way of doing business across the
organization that tailors the constituent experience in order to
forge lasting relationships.
28
Touchstone 2: Build deep, meaningful,
ongoing relationships
Build more personal and relevant connections with current and
prospective individuals so that…
they become inspired
to sign on for the cause and
commit to act
on the impact work and/or
with United Way.
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Touchstone 3: Go beyond funding services to
true Impact Strategies
program
clients
program
clients
program
clients
program
clients
program
clients
program
clients
program
clients
program
clients
program
clients
program
clients
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Many Factors Contribute to Pressing
Community Issues
Economic
conditions
Public
attitudes
Historical
trends
Media
messages
Public
sector policies/
practices
Private
sector policies/
practices
Health care
system policies/
practices
Education
system policies/
practices
System
relationships
Neighborhood
conditions
Personal
choices
Family
dynamics
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Changing community conditions
Schools,
NGOs,
Hospitals,
Businesses,
Churches and
Civic Groups
Systems
Areas
Surrounding
Homes,
Workplaces,
Schools, and
Service
Providers
Community
population
Government
Agencies,
Health Care
Systems, the
Media, and
the School
System
Friends, Family,
Neighbors, Other
Close Associates
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Example
TARGET OUTCOME:
Children from
families earning
under 125%
poverty
receive appropriate vaccinations before entering school
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Example
PROBLEM: Clinic
is opened when
caregivers are
working
Clinics begin
operating during
evening hours to
accommodate
working parents
PROBLEM:
Vaccines aren’t
accessible for
people
Schools and
public health
systems begin
integrating their
services so that
caregivers can
access them in
one location
Systems
PROBLEM: Can’t
locate clinics
Signs are put up
alerting people to
the location of local
children’s clinics
Children from
families earning
under 125%
poverty
PROBLEM: Caregivers
don’t know vaccines are
important: Caregivers take
their children to the doctor
to receive vaccinations
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Examples of Changes in Community
Conditions that can Benefit Populations
Target outcome
Single mothers not taking advantage of public and employer
benefits begin to use those benefits to increase their incomes
Supporting changes in community conditions
• in organizations Employers adopt opt-out policies for benefits
that increase employee income
• in systems Public benefit programs adopt uniform eligibility
requirements and applications, 1-visit application procedures
• in neighborhoods Neighborhood associations put information
on public benefits in places where mothers go frequently
• in personal networks Friends and family members encourage
low-income mothers to use free tax-preparation services
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Touchstone 4: Connect investors to
strategies
Develop & implement
impact strategies
that improve lives
Segment, prioritize, and
understand interests of
investors and build
ongoing relationships
with them
Frame strategies as
investment products and
connect them to investor
interests/aspirations
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What are United Way’s “Products”?
• Issues
• Goals
• Strategies
• Parts of strategies
that individuals and institutions - organizations,
businesses, foundations, governments - are willing
to GIVE, ADVOCATE, or VOLUNTEER to support
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Example 1: Connecting contributor interests
with investment products
Financial support
Needed for
impact strategy
Board member
connected to
health care
Potential contributor
with related interest
38
Example 1: Connecting contributor interests
with investment products
Financial support
Board member
connected to
health care
Board member
secured $75K from a
pharmaceutical
company, $10K from
another health care
company
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Example 2: Connecting contributor interests
with investment products
Volunteers for
after-school
program
Needed for
impact strategy
Employees of
companies in
school’s
neighborhood
Potential contributors
with related interest
40
Example 2: Connecting contributor interests
with investment products
Volunteers for
after-school
program
Employees of
companies in
school’s
neighborhood
Adults investing
time and talents
in neighborhood
youth
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Example 3: Connecting contributor interests
with investment products
Space
for tax
preparation
services
Needed for
impact strategy
Organizations
with
accessible,
unused space
Potential contributors
with related resource
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Example 3: Connecting contributor interests
with investment products
Space
for tax
preparation
services
Organizations
with
accessible,
unused space
Multiple sites
convenient to
lower-income
populations
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Measuring Program Outcomes
Getting Started
• Learned about program elements: inputs, activities,
outputs and outcomes
• Why we measure outcomes
• Benefits for agencies and their programs
• Benefits for United Ways
• How to implement outcome measurement in your
community
• How to use outcome information in funding decisions
44
Continuing Value of Program Outcome
Measurement
Does this mean that United Ways should stop funding programs?
Definitely not! Improving lives by supporting direct-service programs is
one of the investment strategies of community impact UWs.
Does it mean that United Ways should phase out program
outcome measurement?
Again, no! It has proven to be a valuable tool for agencies and the
human service system.
Does it mean that program outcome measurement does not have
a role in the work of achieving community impact?
Emphatically, no! In fact, the value of program outcome measurement
will increase as United Ways and their community partners move
forward with creating community change.
45
What does this mean?
Understanding the relationship between program outcomes
and community outcomes encourages United Ways to:
•
Avoid creating expectations that funding programs alone
will produce community outcomes.
•
Develop more comprehensive approaches that are
effective in achieving community change.
•
Identify the ways that program outcome measurement can
contribute to community impact.
•
Create mechanisms for maximizing that contribution.
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A Community Impact Plan Lays Out Your
“Theory of Change”
Target
outcome
Population
change
Population
change
Change in
community
condition
Change in
community
condition
Change in
community
condition
Change in
community
condition
Change in
community
condition
Change in
community
condition
Change in
community
condition
Partnership’s mobilizing activities
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There’s No Room for Domestic Violence in Madison County
Target
Outcome
People in danger have
places to go to be safe
and get connected to
further assistance.
Community Condition
Changes
People who experience domestic violence are not abused again.
Population
Changes
Theory of Change Highlights
Businesses, hospitals,
& fire departments
provide safe haven to
DV victims.
Law enforcement officers
are trained in “pro-arrest”
response to DV.
DV victims take
action to avoid
further abuse.
DV shelters help
victims assess
options, take action.
Abusers do not
repeat abuse.
LE agencies
consistently
arrest alleged
DV offenders.
All county LE agencies
adopt “pro-arrest” policy
regarding DV.
Courts closely
supervise
convicted DV
offenders.
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A Community’s Research-based Framework for
Education
Priority community issue: Helping children and youth succeed
Research-based components of the issue:
School
readiness
Early-grade
reading
proficiency
Successful
middleschool
transitions
Research-based components of school readiness:
Health &
physical
development
Social,
emotional &
intellectual
development
Language &
literacy
development
On-time
high school
graduation
Completion of
college or
advanced
training
Populations of special concern
in this community:
 Children from families with
English as a second language
 Children from low-income
families
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One Component of a Community’s
Comprehensive School Readiness Initiative
Target outcome:
Children from low-income families enter school with age-appropriate language/literacy skills
Strategy 1: Ensure that parents and
family, friend, and neighbor (FFN) caregivers interact with young children in
ways that research shows build
language/literacy skills.
• Equip pediatricians, child care & other
service providers, faith leaders, and peer
leaders to:
- Disseminate materials on how to
build language/literacy skills;
- Teach/coach/motivate language/
literacy-building behavior;
- Make referrals to needed speech &
language, parenting, or other
services.
• Distribute Born LearningSM and other
research-based materials where parents
and FFN caregivers live, work, shop,
play, and pray.
• Ensure that social services provide lowincome clients who have young children
with language- and literacy-building tools.
• Advocate for increased state funding for
library system education and outreach to
low-income families with young children.
Strategy 2: Ensure that young children’s
environments are literacy rich, containing
age-appropriate books, paper, crayons,
markers, etc.
• Enlist individuals and organizations
across the community in ongoing efforts
to gather age-appropriate books and art
supplies for distribution to environments
of young children from low-income
families.
• Distribute children’s books and art
supplies to homes and other care
settings of young children from lowincome families.
• Arrange for the public television station to
air “A Place of Our Own” series.
• Equip home visitors with research-based
materials and training to help parents
provide a literacy-rich environment and
use books and art supplies to build
young children’s language/literacy skills.
• Advocate for a state policy change to
make FFN caregivers eligible for training
and supplies available through state child
care resource and referral networks.
Strategy 3: Prepare family-based child
care providers and Head Start staff to
interact with young children in ways that
research shows build language/literacy
skills.
• Implement a “Mind in the Making” trainthe-trainer program to increase skills of
family care/Head Start providers.
• Facilitate public-private collaboration on
developing an Early Reading First grant
proposal to support early literacy
development in child care settings .
• Enroll family care/Head Start providers in
Dolly Parton’s Imagination Library to
place children’s books in these settings.
• Connect family care/Head Start providers
with research-based story extenders and
model their use in building on story
concepts to expand children’s understanding and vocabulary.
• Advocate for the state child care quality
rating system (QRS) assessment to
include provider competence in
extending children’s language and
promoting literacy skills.
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How can we deliver with scarce resources?
Be efficient
• Really leverage volunteer support
• Collaborate and share deeply with other United Ways built
on a strong foundation of trust
• Use grant-funded positions
Engage the community
• Have the right investment opportunities
• Built on a case of urgency
• Relentlessly focus on improving lives in the community
51
Start slow to go fast later because
buy-in is critical
When making changes in your United Way’s
business model take time to lay the necessary
groundwork with:
• Your board and volunteers
• Your staff
• Partner organization staff and volunteers
Articulate “what’s in it for them”
52
It’s all about managing risk
Risks of changing
–Stakeholders may not understand the new approach
–Possible short-term loss of donors and supporters
–Dissatisfaction of currently funded organizations
–Loss of staff
Risks of not changing
–UW not as effective in addressing priority community
issues and changing lives
–UW becomes less relevant to the community
–Continuous loss of funds and donors
53
Discussion
54
In conclusion
Ask for help!
• Nearby United Ways
• United Way State Organizations
• Tools available on United Way Online
• United Way Worldwide staff:
• Roger Wood, UWW Small Cities Director
[email protected]
• Mike Wood, Vice President, Field Engagement
[email protected]
55
Thank You
56