Posts from the ‘Organizational Clarity’ Category

All Aboard!: A Tool for Changemakers to Create Impact

by: Marcelo Pinell

Setting sail on the sea of social impact can be a daunting and overwhelming feat. Some, out of fear, have yet to leave shore while others have been tossed and turned by the challenging waves of the social sector. As the newest member to step on board Blue Garnet, I have been privileged to navigate these vast waters with a team of skilled and experienced social impact geeks who have steered through the rough seas, withstood the storms and driven the high winds of strategy to help leaders and their teams chart their ultimate impact.

Recently, I had the opportunity to witness these social impact geeks in action as I provided support for our Impact Formula Strategy Lab series. We had three eager organizations initially commit to investing in the development of their strategic thinking for three sessions spread across May through July. I was able to join the second session in June and watched the teams progress all the way up to a fourth session this November, which was later added due to popular demand. As it turns out, the work done during this Lab series was not what I expected. The following are some key insights that I walked away with after the Lab. I hope my reflections serve as a fresh perspective on the value of this Lab series in helping leaders create impact.

 

The right dosage can help leaders and their teams address their outcomes

Truth be told, not every nonprofit can afford consultants who can extensively work with them one-on-one for months on end. Plus, some nonprofits may not even need the full services of a consulting firm. Strategy Lab Session 4 PhotoThe Strategy Lab proved this point for me. Providing the correct dosage of support can help leaders and their teams address their outcomes. From May through July (and then once more in November), we trained and educated teams from three organizations. Once a month, they attended a half-day session in which they actively learned, participated, and worked through their Impact Formula. These teams would then go back to their organizations to work on assignments from the session and would return for another session the following month to gain more clarity and continue to build on their work. It was an iterative process that demanded hard work, but after the Lab series, these teams left with the tools and confidence they needed to head back as change agents for their organizations.

 

Consultants are not the changemakers, leaders are!

I’m sure you’ve heard this proverbial saying before: “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime.” I began to see this proverb unfold before my eyes as I watched the Lab participants wrestle with strategic questions. More than giving them a business model, the Lab gave participants the time and space to work as a team with other people in their organization, which is typically difficult to do due to competing priorities and schedules. Additionally, the Lab allowed participants to gain awareness of a holistic view on achieving their “ends,” ask key learning questions and acquire strategic tools so they could think critically about their organization’s impact.

The assumption so often is that the professional consultant creates the impact. Though there is a place for consultants, no one can replace the passion and hours that these leaders give to the people they serve. If you can help equip a leader and deputize them as a change agent, then he or she can build a culture of change.

 

Reaching your intended impact is an intense, iterative and invaluable process

During the Lab, all of the teams got on board and steered through some serious strategic questions. As they sought to gain clarity, though, I noticed that their comfort articulating their theory of change interestingly and surprisingly took a slight dip during the second session. Strategy Lab Session 2 photoOn a scale of 1 (low) to 5 (high), the teams rated their comfort articulating their theory of change a 3.6 after the first session, which then dropped down to a 3.3 after session 2. By the third session, however, the rating jumped back up to a 3.8. The data seems to point to the reality of the intense and iterative nature in building discernment. From my perspective, the teams were initially shocked by some big waves regarding their theory of change, but they gained more confidence and clarity over time to create a vision for impact.

The teams were able to create a vision for impact not only because they iterated on their own work, but also because they learned from each organization’s different approach to tackling its Impact Statement. The value of peer learning was so great that the teams asked for a fourth session, which we completed last week. This additional session allowed the teams to check-in and hold each other accountable to their work.

Navigating the waters of social impact can be overwhelming, but the opportunity to help these organizations map out their impact was an invaluable journey for both them and me. I jumped on board the Lab and saw that it provides the right dosage to help these changemakers “zero in on impact.” Great job, teams! I look forward to the impact that comes forth as a result of your labor. Keep on sailing!

Making Strategic Planning Real

by: Shannon Johnson

It’s time to get real…about making social impact in Los Angeles. That’s exactly what The John Gogian Family Foundation did on January 27th, 2016, in Torrance, CA. Lindsey Stammerjohn, Executive Director, understands that long-term sustainable social change doesn’t just happen – it needs to be carefully planned. So she and the foundation stepped up to the plate and hosted a forum for all their grantees (70+ in attendance, their highest ever) focused on “Making Strategic Business Planning Real.” Pretty awesome, huh? We thought so too.

I don’t mean to be Debbie Downer, but strategic business planning is (and should be) hard. You are asking and answering tough, strategic qDilys Garciauestions. Want to know what helps? Learning from others who have been there. That’s why we interviewed Dilys Tosteson Garcia, Executive Director at Court Appointed Special Advocates Los Angeles (CASA), throughout the forum. She candidly painted a real-life picture of the struggles and triumphs in her organization’s strategic planning process. Their process was of particular interest to the attendees as she and her team developed a bold and visionary plan to TRIPLE their impact while simultaneously undergoing a complete shift in their funding model. In the process, they strengthened their program model, invested in data systems and elevated their internal culture!

Thinking of starting a strategic planning process? As we shared during the forum, here are few tips to keep in mind:

  • A Strategic Business Plan becomes REAL when you not only define your desired impact in a measurable way but also align it with your business model, make sure you can afford it, develop a plan for how you’re going to implement it, measure your progress, learn along the way, and hold yourself accountable to it. PS – when all is said and done, it is a very, very powerful and beautiful thing and worth all the effort!

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  • Process is as important as content. Building a strategic business plan takes time, but it can be “chunked” out into 3 main steps:

Where are we today?

  • Engaging the “right” people at the “right” time is critical. Think about whom, when, and how different stakeholders (e.g. Board, staff, clients, funders, supporters) should be involved. Our motto: involve “early and often.”
  • Your plan should be adaptive. Strategies and plan can (and should) change over time. (Read more about emergent strategies here.)

A big thank you to The John Gogian Family Foundation, Dilys Tosteson Garcia, and all the inspiring nonprofit leaders who attended for an engaging, productive day!

Are you interested in Making Strategic Business Planning Real? Click here to learn more about Blue Garnet’s Impact Accelerator Strategy Labs.

Does your (legal) form follow function?

by: Way-Ting Chen (with Giselle Timmerman and Taylor Chamberlin)

Deciding on the right legal structure for your social purpose organization or social enterprise can be a taxing process (pun intended), with many trade-offs to consider. Figuring out the differences between a Low-Profit LLC, Social Purpose Corporation, Benefit LLC, or traditional exempt organization is difficult enough to untangle, much less being certain of making the right choice for what your organization needs.

When considering legal structure decisions, start with the end in mind

Before deciding on a legal structure, consider your ultimate “ends”: your impact.

We’d like to help make this decision a little less tangled and a little better informed for you, and the first step is to answer the question, “legal structure for what?” Remember that in the world of social impact, your legal structure is just another means to achieving your ultimate ends: your impact. Simply put, your “ends” is your long-term organizational strategy, or intended ultimate impact. With the end in mind, you will have clarity about which legal status will help you to achieve your intended impact.

Let’s look at two client examples to put this approach into practice.

A supportive housing organization and a start-up apparel company both want to increase their financial sustainability while also growing their services. The supportive housing organization (let’s call it “Safe Haven”) is presented with the opportunity to develop a real-estate property adjacent to its building. The apparel company (we’ll call it “Sustainawrap”) is presented with the opportunity to create and sell products. How does each organization move forward with assessing the merits of these opportunities and their legal implications?

Safe Haven weighed the pros and cons of leasing market rate rental units or providing permanent supportive housing for homeless individuals. Their discussions landed on a critical question: Real-estate property for what end? They needed to define their intended ultimate impact in order to get clear and unified on what purpose the real estate property needed to serve. Ultimately, they realized they did not need a “cash cow” to generate unrestricted cash flow, so they committed to using this real estate for permanent supportive housing (using a hybrid legal model to minimize legal liability) to directly further their mission.

Safe Haven’s impact statement provided strategic direction: By 2023, North County homeless population will be reduced by 50%.

Sustainawrap weighed the pros and cons of launching a social enterprise to sell baby products. They struggled at first with defining how the social enterprise would contribute to their overall organizational strategy. After agreeing that their “ends” must be women’s self-sufficiency, they used their impact statement to help filter and guide decision-making.

Sustainawrap impact statement: By 2025, 100 homeless women living below the poverty line in LA County will be on the path to financial self-sufficiency. The means to their ends became creating jobs and selling unique baby products, so that impoverished women were employed. With this strategic goal in mind, business planning for their social enterprise was much easier, and they decided that a for-profit legal structure provided the simplicity and flexibility needed to achieve their ends. 

Organizations with similar mission statements may have very different impact statements. But, with clarity on their long-term strategic direction, the legal structure decision (along with many other critical choices) becomes simpler.

Finally, the expectations and perceptions we have of various legal structures is evolving. Based on the most recent Edelman trust barometer report, a full 80% of people agree that business must play a role in addressing societal issues.

"Scrooge McDuck"

A “for-profit” legal structure doesn’t make you a Scrooge McDuck

A for-profit structure doesn’t make you a Scrooge McDuck, just as a nonprofit status doesn’t put a halo over your head.  So, setting aside any expectations or stereotypes, make the hard decisions to figure out your intended impact and strategy, then make the legal structure decision that follows.

Click here for our briefing on what an impact thinking mindset is, and here for how you can become a better ‘impact do-er’. For further help with your social enterprise’s legal structure, check out Sustainable Law Group, and the webinar series we presented together with the Society for Nonprofits.

Tackling the “impact question”

By Jennifer Shen 

How many times have you heard the word “impact” or “outcomes” this week? We’re betting quite a few — we’d even say they’re buzzwords of the year.

In fact, at the recent 2015 Green Hasson Janks Nonprofit Conference, the discussion touched on these themes. We heard, “data is king […,] you need to measure results and understand your true costs […,] create case studies that highlight impact […,] and exceptional leaders are always looking 3-5 years out. Yup, though Panelists Fred AliRegina BirdsellPegine Graysonand Scott Pansky were addressing different issues like leadership, marketing and volunteerism, we heard all their observations as related to creating exceptional impact.

These themes are centered on a critical question that still begs to be answered: so what? Or put less provocatively: What is the specific impact your organization seeks? And how does what you do create that impact?

We believe a different approach is necessary to operate in today’s outcomes-focused world. One that aligns your intentions with what you do and the results of your efforts. Here are three tidbits to get you started:

impact, biz model, and learning are linked

Your impact, business model, and evaluation can and should be linked

1) Start with the end in mind. Creating social change is complex and takes a long time. Start by focusing on what you want your outcome to be over the long term, then develop your strategies to achieve that impact, rather than taking a quick-fix approach to answering “the impact question” on your latest grant report.

2) Link your strategy for impact, your business model, and your learning and evaluation efforts (see visual to the right). This link creates alignment and integration — you don’t have to separate the work of creating social change from figuring out whether or not that work is indeed making an impact. These elements are and should be mutually reinforcing.

3) Develop a common language. We need a shared language and reasonable expectations for funders and nonprofits to talk about output, outcomes and impact. Our current system incentivizes short-term thinking, and expectations around impact are often unrealistic. By creating opportunities for communication on this topic with both funders and nonprofits, we can begin a conversation that will create a more honest and effective social sector.

If you’re interested in taking this approach at your organization, take the next step by attending our upcoming workshop, “What You Need to Know about Outcomes as a Nonprofit Leader,” on October 23rd at First 5 LA’s downtown offices. Register now as space is limited, and learn more on our webpage.      


About Green Hasson Janks

Green Hasson Janks is one of the premier accounting firms serving nonprofits in Southern California. We have over 30 years of experience serving public charities and private foundations, and we are well-versed on current nonprofit benchmarking and governance issues. We offer our nonprofit clients a wide range of professional services including accounting, auditing, management consulting and tax planning and compliance.

Thank you to Donella Wilson and Green Hasson Janks for sharing this post on their blog!

Local Leader Spotlight: Colleen Mensel on sharpening your business model

El Viento provides children and young adults with opportunities for success in life through long-term relationships based upon: Mutual Trust and Respect, Exemplary Character, Skills Building, Leadership, Teamwork, and Learning. El Viento Foundation’s success will be measured by the happiness and fulfillment of our participants.

El Viento provides children and young adults with opportunities for success through long-term relationships. El Viento Foundation’s success is measured by the happiness and fulfillment of its participants.

What does it take for an organization to move from good to truly exceptional? For starters, it takes leaders willing to tackle tough strategic questions. Colleen Mensel, President and Chief Executive Officer of El Viento, is one such leader.

Colleen, along with Julie Taber, El Viento’s Operations Manager, participated in a bootcamp on “Sharpening Your Business Model” taught by Blue Garnet and sponsored by the Fieldstone Foundation. The bootcamp focused on how impact and business models fit together, what the key components of a business model are, and how to measure success. Simply put, the bootcamp experience “was something to help us with our compass and how to move forward.” When we spoke with Colleen in May, she shared why this process has mattered so much.

Taking an integrated view

Blue Garnet: Ultimately, why did you feel it was important to spend time sharpening your business model?

Colleen: When you look at how typical nonprofits move forward with their “business plans,” they really see many different plans, rather than seeing how they are all related on a more basic level. We now have an overarching model and everything plugs into that. We were able to share our model with our board and get their buy-in, and to take this model to our funders.[1]

Blue Garnet: Why was Board engagement in this process so essential?

Colleen: We were able to set realistic goals, down to the level of annual performance objectives. Before, our dashboard was all financial; now we are looking at multiple moving parts of the organization (e.g. kids’ retention rates, GPA). We’ve worked with the board to understand that our business model includes every aspect of the organization, not just finances.

Screen Shot 2015-08-17 at 1.45.02 PM

Developing a growth mindset, creating mindshifts

Blue Garnet: Having an overarching business model really seems to have shifted the way you and your organization think.

Colleen: Yes, it has. The business model [framework] helped us look at our core competencies and refine what we think is good, but good wasn’t enough for us. We are constantly asking ourselves how we can be better. This model integrates all the work we do, and following it has helped us to grow. In fact, it has helped us better think through future growth – we can see where we are and use the model to help us grow in different areas. We’ve decided to put together an Academy, and we went back to the [business model] framework to help us think through this decision.

Blue Garnet: Can you give me another example?

Colleen: We’ve looked differently at our measures. We make a 10-year commitment to our kids, and over the years we used to lose about 50%, which most thought was a good retention rate. But we asked how we could become better. The business model helped us look at our core competencies, especially how we interact with the students, and as a result last year our retention rate was 94%.

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Having the courage to change, taking risks

Blue Garnet: What does it mean to you to be an “impact thinker”?[2]

Colleen: You have to be aware of the dollars that are coming in so you can make the most of that generosity. If you aren’t an impact thinker, you’re doing a disservice to your contributors. We encourage everyone at El Viento to be impact thinkers, from staff to board to the people we collaborate with out in the community. We have to make the most out of the tools, time, and dollars we have—knowing that has made us a little braver.

Blue Garnet: Were there any challenges to making this shift?

Colleen: Impact thinking means always looking, having an idea of where you want to be, but also having the courage to change to improve. People questioned our change, and yet we pushed forward and now are in a better place. A year later, they can see the improvements. Working on our business model helped forge the way.

Blue Garnet: Can you share a specific benefit of this change?

Colleen: We looked closely at what we were doing. For example, we decided to do fewer, more meaningful and educational field trips. That was a hard change, but everyone sees the benefits now. Having a tool for assessing decisions, particularly with staff, helps you analyze and understand what you’re doing to be most effective.

Screen Shot 2015-08-17 at 1.55.07 PM

Seizing opportunities

Blue Garnet: What were some other tangible actions or results from this work?

Colleen: We now use our business model as a tool to assess decisions. We have used our model to evaluate a new opportunity that arose to get reimbursed from school districts for the tutoring we provide. Going back to the model helped us understand that we could take this opportunity and make it a social enterprise. We are also doing a pilot of another social enterprise and are looking at tailoring the learning experience to be more proactive rather than reactive. We are using our business model to understand how what we learn from this pilot fits into El Viento’s long-term strategy for impact. Having the basics on how to assess these opportunities is very helpful.

Screen Shot 2015-08-17 at 1.59.04 PM

We applaud Colleen for openly and generously sharing part of her leadership journey, as well as to El Viento for its tenacious commitment to helping children and young adults succeed. If you would like to dive deeper into how exceptional funders and nonprofit leaders become better “impact doers,” check your inbox in a few weeks for our Impact Doing Briefing or sign up to learn more about one of our upcoming Impact Accelerator workshops.

Related Links and Resources

  1. How El Viento makes a difference
  2. Blue Garnet’s Impact Accelerator Workshops
  3. Connect with El Viento on Twitter (@ElVientoFndtn)

[1] Blue Garnet defines three components of an organization’s business model: 1) what you do, 2) for whom you do it, 3) how you afford it.

[2] See Blue Garnet’s Impact Thinking Briefing for more on how to be an “impact thinker.” Link to briefing: Blue Garnet’s Impact Thinking Briefing.

The “Un-sexy” Work of Making Strategy Real

by Way-Ting Chen (December 19, 2014)

At heart, I am a strategist. I have a bit of a confession to make: over the course of years, I have witnessed it over and over again—in my years as a research analyst, a corporate management consultant, and now a social entrepreneur. But despite having the soul of a strategist, I have found what I am about to share with you to be undeniably true.

Strategy matters. It matters a lot. Strategy that bridges aspiration with a grounding in what it takes to make that strategy happen is the most effective of all. But here’s the secret that “strategy consultants” don’t always tell you: strategy means nothing if you can’t make it real. How you do something will define success for what it is you set out to do. In the end, implementation trumps strategy every time.

But do not fear, my strategy-minded friends. Implementation planning (i.e. pacing and calibration of how to achieve your strategy) builds the bridge between what you’ll do and how you’ll do it, but its power goes beyond articulating how you are going to make your strategy real. If done as part of a thorough strategic planning process, it can help inform the strategy too. It’s not linear; rather, it is an iterative conversation. And it makes what you’re trying to do more likely to come true.

Think of it this way: it starts with the planning. Implementation happens in one form or another whether or not we plan intentionally for it, and I’ve seen my fill of “strategic plans” that define the what (e.g., strategy) without any reference to the how (sustaining the business model, organizational implications, implementation roadmap, etc.).

One of the leading strategy firms in the world, McKinsey, wrote about implementation of corporate strategy, but I believe it applies to the field of social impact as well: “good implementers retain more value at every stage of the process than poor implementers do, and the[ir] impact is significant.”

To be clear, I’m not advocating for implementation without strategy. Nor am I advocating for implementation planning without strategic planning. That would be like trying to map directions without knowing where it is you’re trying to go.

What I believe in is defining strategy in tandem with an implementation roadmap. Let strategy frame implementation, and let implementation ground strategy. When this intentionally and methodically occurs during the planning process, you get increased organizational clarity, healthier economics to sustain your organization, and greater accountability to drive results.

Check out McKinsey’s article to learn more about their findings regarding what sustains strategy throughout implementation. We want to know: what has been your experience with implementation and planning for implementation? How much have you invested in implementation planning has it related to your organization’s strategy? Tell us in the comments section or by emailing hello@bluegarnet.net!

Impact Thinking: How Does Your Organization Compare?

by Jennifer Shen (11/26/14)

Thank you all for the incredible response to part one of our Impact Thinking brief!  Some say this paper has made them think about impact amidst rapid growth, others have used it to launch discussions of overall organizational effectiveness. We are thrilled to have ignited a conversation around the critical mindset we call “impact thinking.”

Impact thinking is an organization’s longer-term, holistic view of achieving its desired social impact. It is characterized by continuous learning and accountability practices that deliberately, doggedly, and effectively measure performance against intended impact. In part one of this briefing, we explain why impact thinking can be challenging and examine some common misconceptions.

Your feedback got us wondering: where are others on the path to impact thinking? Let us know where you or your organization falls, and see where your peers rated themselves by participating in the poll below!

[polldaddy poll=8459046]

 

We know you’re excited to read part two of the briefing (we are too!), so we will be publishing it in mid-December. In part two, we’ll share how you can get “un-stuck” from limiting practices and become an impact thinker, some of the benefits you can expect, and leading examples of impact thinking in the sector. Stay tuned!

Beyond Satisfaction, Learn What Your Clients Value

Who really does client surveys these days? Well, we do! And most other learning organizations. Find out what we learned from ours, and how we are using it to help serve our clients and the sector better.

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How to Be Exceptional in 4 Easy Steps

You work hard to create social change in your communities, for those most in need and those who have fallen through traditional safety nets in our society. But at some point, you need more than the passion and commitment that drive your work.

Challenges emerge. You plateau. It happens to all of us.

So what does it take to achieve great impact over good enough?

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Moving Our Own Needle: Adapting Blue Garnet

What happens when the changing environment forces a firm to re-evaluate their business model and impact? Innovation! Well, as long as that firm is willing digest the learning and course correct... Take a peek at some of the things we learned at Blue Garnet this last year.

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