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Developing Your
Business Plan
for Sustainability
What it Takes &
What We Learned
NAZ MISSION:
North Minneapolis
children will graduate
from high school
ready for college
“Join this vitally important work by aligning
your funding and human capital to support
NAZ in changing the odds for thousands of
disadvantaged children and breaking the cycle
of generational poverty.”
- Geoffrey Canada,
President of Harlem Children’s Zone
JAQUAN’S OPPORTUNITY GAP
Like a quarter of his peers, he
may face homelessness
Nearly three-quarters of his
classmates do not perform at
grade level
His odds of not graduating high
school are 64%
1/4
70%
64%
LONG-TERM GOALS
28%
80%
16%
70%
29%
70%
51%
80%
Kindergarten
readiness
3rd grade reading
performance
8th grade math
performance
Graduation rates
Goal: 1,000 Families & 2,500 Scholars
FAMILIES ENROLLED SCHOLARS ENROLLED
2012
2013
2012
2014
2013
2014
584 217
548 1390
1740 740
BRINGING IMPACT TO SCALE
MULTIPLYING THE IMPACT
BUILDING THE TEAM
FAMILY DEMOGRAPHICS
Race
FAMILY DEMOGRAPHICS
Income
TWO GENERATION APPROACH
• Parents of over 1,200 scholars working on
goals to support achievement
• 9 NAZ enrolled parents hired full-time
• 43 parents reached leadership level by end
of 2014
• 12 parents serving as the NAZ Parent
Advisory Board
• 200+ parents completed parenting classes
HIGH-TOUCH, HIGH TECH PARTNERSHIP
DATA SYSTEM
Achievement planning and data
collection system
• Drives Achievement
• Supports coordination across partners
• Tracks individual, program and
longitudinal data
TEAM JAMES
SHARED BEST PRACTICES
• Partners follow evidence-based plans
• Track real-time results for programs
and individuals
• Blueprint for replication
SHARED BEST PRACTICES
Solution Plans
✓
✓
✓
✓
✓
✓ ✓
Building Culture of Accountability
• Monthly convening
• NAZ staff, Board, parents, partners
• Analysis to find solutions
RESULTS NAZ
ROUNDTABLE DATA ANALYSIS
RESULTS
SIGNIFICANT RETURN TO SOCIETY
ROI is 6X
• $16.7M in social gains per
100 participants
SIGNIFICANT RETURN TO SOCIETY
• Lower health care costs
• Fewer Arrests
• Less Special Education
• Reduced drug use
Increased earnings & tax
revenue
OUR APPROACH IS WORKING
59%
73
%
Reading Only 2013-
2014
83%
Reading and Math
Kindergarten
Readiness Increasing
2011 Zone Baseline
28% 35
%
49% 2014 Zone-wide
2014 NAZ-enrolled
Growth Target
Zone-wide
NAZ-Enrolled
NAZ-Enrolled with
Scholarship
OUR APPROACH IS WORKING
18% 22%
Zone-wide Children
NAZ Scholars
Growth Target
Third Grade MCA
Reading Proficiency
Rises
16%
14%
2012-13 2013-14
OUR APPROACH IS WORKING
23%
31% Enrolled > 6 Mo.
Enrolled 6-17 Mo.
Enrolled 18+ Mo. 14%
18%
Reading Math
22%
37%
MCA Scores Rise with
Length of Enrollment
26% 30%
Not NAZ-enrolled
Enrolled 6-17 Mo.
Enrolled 18+ Mo.
MCA Reading and Math Proficiency
increases with length of enrollment
22% 30%
Reading Math
42%
58%
SCHOOL SUCCESS SNAPSHOT
Elizabeth Hall School
FISCAL PICTURE
NAZ ECOSYSTEM COSTS
DISTINCT BUSINESS COMPONENTS
NAZ backbone organization
NAZ partners—aligned funding
NAZ BACKBONE COST
NAZ BACKBONE REVENUE
NAZ
PARTNER
COSTS
PARTNER COST
SUSTAINING NAZ: WHAT’S NEEDED
NAZ CHALLENGE CAMPAIGN
Total Increased Investment Needed
$5.6M NAZ backbone
$5.2M NAZ partners
$10.8M Additional annual need
INVESTING IN THE NAZ BACKBONE
Two Ways that Funders Can
Support the NAZ Backbone
1. Significantly increase current
funding level
2. Multiple year funding
Total Cost: $7.6M
Current Funding: $2.0M
Additional Funding Goal: $5.6M
INVESTING IN NAZ PARTNERS
Two Ways that Funders Can Support
NAZ Partners
1. Aligned funding: Funders provide
resources directly to a partner
organization to specifically support
NAZ children and their families
2. NAZ funder pipeline: Funders
provide resources to NAZ, which then
contracts with a partner organization
to implement the work
Total Cost: $11.6M
Current Funding: $6.4M
Additional Funding Goal: $5.2M
VISION BECOMING REALITY
Benefits of our long-term strategy
• Quality of life in N. Mpls. rivals affluent
neighborhoods
• 2,500+ college graduates & parent “alumni”
throughout the community
• Neighbors stay in N. Mpls., or return after college
• Highly skilled workforce for region
KEY LEARNINGS
1. It is never too early to start planning
2. Get the right advice & support
3. Create a Task Force
4. Show results
5. Engage your stakeholders
6. Weigh hiring a consulting firm
KEY LEARNINGS
7. Invest in a ROI study
8. Expect everything to take longer
9. Get testimonials from people who matter to others
10.Let savvy marketers edit your draft
11.Re-write until you get it right, not perfect
12.Remember: You and your team are the experts!
2012
Begin PN Implementation Award
1/13
Begin planning
3/13
PNI Technical Advisors
4/13-9/14 Sustainability Task Force meets bi-monthly
4/14-10/14
ROI Study
10/14-12/14 Engage consultant
1/15-5/15
NAZ staff complete Business Plan and create communications plan
BUSINESS PLAN TIMELINE
Value
proposition
Impact
Financial plan
Overview of
NAZ
BC
G-le
d
NA
Z-le
d
Approach Component
• Collect stakeholder input
– Partner workshop
– Parent focus group
– 1:1 Board interviews
– Sustainability committee
• Conduct internal working sessions
– Leverage previous work
(ROI study, development audit)
– Partner with key NAZ contacts
• BCG to synthesize and refine findings
Status
• Partner and parent
feedback received
• Value proposition
being refined
• Working session to
draft impact section
• Financial plan to be
discussed today
• Consolidate existing documents and
create roadmaps for each section
• Refine with NAZ leaders
• Key components in
place in existing
documents
• First draft complete Operating
model
CONSULTING FRAMEWORK