The MacMillan Matrix A Tool for Program Analysis

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The MacMillan Matrix A Tool for Program
Analysis

• Presentation to the
• YWCA Mid-Atlantic Region

Shelly M. Schnupp
SMS and Associates
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Why Program Analysis?

• Greater demand for accountability
• More competition.for funding and customers
• Changing needs, evolving environments

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Nonprofits are Responding

• Refocusing on mission
• Competing where appropriate
• Avoiding duplication
• Maximizing strengths
• Increasing partnerships and collaborations

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The MacMillan Matrix

• Developed by Ian MacMillan
• Designed to help nonprofits assess their programs
  for sustainability, especially in light of scarce
  resources

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Guiding Principles

• Unnecessary duplication fragments limited
  resources weakens providers, decreases quality
• Greater focus, instead of being all things to all
  people, can result in higher quality
• Increasing demand for resources requires change
  in approaches

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Key Questions MM Helps Nonprofits Answer

• Are we engaged in any services which, if
  eliminated, would cause consumers irreplaceable
  loss?
• Are we spreading ourselves too thin, without the
  capacity to sustain ourselves?
• Should we work cooperatively with another
  organization to provide services?

• How well does our program portfolio fit with our
  mission and vision?
• Are we the best organization to provide this
  service?
• What is the competitive strength of each of our
  programs?

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Matrix Criteria

1. Fit
2. Economic Attractiveness
3. Alternate Coverage
4. Competitive Position

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1. Fit -- degree to which a program "belongs" or
fits within an organization (Good or Poor)

• Congruence with mission/purpose vision?
• Organization has existing skills and
  competencies?
• Able to share resources and coordinate activities
  with other programs?

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2. Economic Attractiveness revenue availability
(High or Low)

• Current stable funding?
• High appeal to funders, supporters?
• High market demand?
• Measurable, reportable outcomes/results?

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3. Alternate Coverage competition (High or Low)

• Are similar services provided?
• Do customers have many other choices?
• Competitors now and future?

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4. Competitive Position stronger capability and
potential to deliver the service than current or
emerging competitors (Strong or Weak)

• Good location, logistical delivery system?
• Will customers remain? Grow?
• Is quality superior?
• Record of securing grants, funding?

• Stable staffing?
• Ability to maintain and continually increase
  competency?
• Cost effective?
• Strong connections with consumers and
  stakeholders?

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Program Analysis Steps

• 1. Preparation
• 2. Implementation
• 3. Analysis
• 4. Action

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Step 1. Preparation

• Assemble analysis team
• Staff
• Board
• Assemble Program Profiles
• Identify additional data
• Mission, Vision
• Strategic Plan

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Program Profile

• Program purpose and history
• Customer Profilewho is targeted, served, trends,
  challenges
• Primary program activities
• Outcomes--customer and other
• Fundingsources, trends, issues
• Staffingrequirements, status and issues

• Competitionothers currently providing or
  planning to provide the same or similar services
• Factors that distinguish this program from
  similar or other efforts
• Other groups/ organizations the program does or
  should interact with and how
• Other special Issues both positive and negative

See Program Profile Format and Example
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Exercise 1
1. Find a partner to work with. 2. Identify a
program. 3. Complete a Program Profile using
Worksheet 1. 4. See example program profile in
handouts packet p. 4
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Step 2. Implementation

• Present, review program data
• Classify each program according to 4 criteria
• Alone, silently
• Discuss, reach group consensus
• Note classifications on worksheet
• Place programs on matrix
• Review results

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MacMillan Matrix Worksheet
Program Fit Fit Economic Attractiveness Economic Attractiveness Alternate Coverage Alternate Coverage Competitive Position Competitive Position
Program Good Poor High Low High Low Strong Weak
Child Tutoring
Racial Justice
Job Training
Womens Leader-ship
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MacMillan Matrix
High Economic Attractiveness (Easy to attract resources for support) High Economic Attractiveness (Easy to attract resources for support) Low Econonic Attractiveness (Difficult to attract resources for support) Low Econonic Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment 10. Orderly Divestment POOR FIT
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MacMillan Matrix Worksheet
Program Fit Fit Economic Attractiveness Economic Attractiveness Alternate Coverage Alternate Coverage Competitive Position Competitive Position
Program Good Poor High Low High Low Strong Weak
Child Tutoring X X X X
Racial Justice
Job Training
Womens Leader-ship
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MacMillan Matrix
High Econ. Attractiveness (Easy to attract resources for support) High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment CHILD TUTORING 10. Orderly Divestment CHILD TUTORING POOR FIT
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Cell 10. Orderly Divestment.

• This program is both unattractive and a poor fit.
  However, it is desirable to eliminate these
  services gradually and if at all possible without
  harm to consumers.

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MacMillan Matrix Worksheet
Program Fit Fit Economic Attractiveness Economic Attractiveness Alternate Coverage Alternate Coverage Competitive Position Competitive Position
Program Good Poor High Low High Low Strong Weak
Child Tutoring X X X X
Racial Justice X X X X
Job Training
Womens Leader-ship
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MacMillan Matrix
High Econ. Attractiveness (Easy to attract resources for support) High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency RACIAL JUSTICE GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment 10. Orderly Divestment POOR FIT
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Cell 6. Soul of the Agency.

• Do not have easy access to resources on their own
  
• Agency is committed to delivering even at the
  cost of subsidizing with resources from other
  programs
• Makes special or unique contribution to customers
  and mission
• No organization can afford to support an
  unlimited number of "soul" programs

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MacMillan Matrix Worksheet
Program Fit Fit Economic Attractiveness Economic Attractiveness Alternate Coverage Alternate Coverage Competitive Position Competitive Position
Program Good Poor High Low High Low Strong Weak
Child Tutoring X X X X
Racial Justice X X X X
Job Training X X X X
Womens Leader-ship
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MacMillan Matrix
High Econ. Attractiveness (Easy to attract resources for support) High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest JOB TRAINING 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment 10. Orderly Divestment POOR FIT
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Cell 4. Invest, Find Partner, or Divest.

• Worthwhile investment when resources available
  for improving its competitive position -- after
  programs in Cell 1 have been taking care of.
• If investment resources do not exist, become
  candidates for finding a partner.
• There is opportunity here due to the availability
  of resources and low competition that could be
  pursued with a strategic partner.
• If neither alternative works out, abandon the
  programming -- it is unlikely to assume a
  competitive position on its own.

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MacMillan Matrix Worksheet
Program Fit Fit Economic Attractiveness Economic Attractiveness Alternate Coverage Alternate Coverage Competitive Position Competitive Position
Program Good Poor High Low High Low Strong Weak
Child Tutoring X X X X
Racial Justice X X X X
Job Training X X X X
Womens Leader-ship X X X X
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MacMillan Matrix
High Econ. Attractiveness (Easy to attract resources for support) High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth WOMENS LEADERSHIP 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment 10. Orderly Divestment POOR FIT
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Cell 2. Aggressive Growth.

• There are substantial resources, plentiful
  consumers, and few competitors
• High priority for attention as the organization
  given significant opportunity to build market
  share.
• As others recognize the organization's success,
  the competition will increase -- so timely
  investment in growth is imperative.

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Exercise 2

• 1. Resume work with previous partner.
• 2. Refer to program profile completed in Exercise
  1. (Worksheet 1).
• 4. Apply the 4 MacMillan Criteria to the program.
  
• Use criteria definitions (Handouts packet p. 5).
• Note the program ratings on Worksheet 2.
• 5. Place the program in the appropriate cell on
  the MacMillan Matrix.
• See Applying Results (Handouts packet p. 7).
• 6. Find the cell definition that corresponds with
  the Matrix Cell. (Handouts packet p. 9).
• Discuss the results.

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Step 3. Analyze Results

• Implications for Individual Programs?
• What does our Program Portfolio Look Like?
• What are the implications for the future? For
  organizational sustainability?

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MacMillan Matrix
High Econ. Attractiveness (Easy to attract resources for support) High Econ. Attractiveness (Easy to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support) Low Econ. Attractiveness (Difficult to attract resources for support)
Alternate Coverage HIGH Alternate Coverage LOW Alternate Coverage HIGH Alternate Coverage LOW
Strong Competitive Position 1. Aggressive Competition 2. Aggressive Growth WOMENS LEADERSHIP 5. Reinforce Best Competitor or Find Partner 6. Soul of the Agency RACIAL JUSTICE GOOD FIT
Weak Competitive Position 3. Aggressive Divestment 4. Invest, Find Partner or Divest JOB TRAINING 7. Consider Partner or Divest 8. Find Partner or Divest GOOD FIT
9. Aggressive Divestment 9. Aggressive Divestment 10. Orderly Divestment CHILD TUTORING 10. Orderly Divestment CHILD TUTORING POOR FIT
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Exercise 3

• See sample Program Rating Worksheet for
  Association X.
• Place rated programs on the MacMillan Matrix.
• Discuss results.
• What are the implications for organizational
  sustainability?
• What next steps should be considered by
  Association X?

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4. Take Action

• Develop plan for implementing results
• Implement Plan
• Use results in strategic planning

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Program Analysis Applications

• Generate data for strategic planning
• Check on hunches or assumptions
• Analyze programs against new vision, strategic
  plan
• Develop new programs

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Program Analysis Benefits

• Increase understanding
• Develop consensus
• Encourage objectivity
• Build organizational capacity

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Tips for Engaging in Program Analysis

• Base analysis on data develop program profiles
• Challenge assumptions
• Use a facilitatorespecially for existing
  programs
• Avoid second guessing results
• Document issues that surface
• Develop a plan and act on it!

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QUESTIONS?
. . .
. . .

• Contact
• Shelly Schnupp 414-412-0408
• shellyschnupp_at_aol.com

SMS and Associates