Developing Your Business Plan for Sustainabilityapps1.seiservices.com/pn/2015pd/ThursdayPM/115_Salon...

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