The Economic Crisis:The Economic Crisis:Organizational & Programmatic Organizational & Programmatic

RedesignRedesign

Rick Aranson, COOJewish Family & Career Services of

Atlantararanson@jfcs-atlanta.org

770-677-9307May, 2009

Copyright 2004-2009 JF&CS Atlanta. All Rights Reserved.

Overview

JF&CS is relying heavily on shifts in the agency culture introduced and reinforced over the last several years.

These shifts have enabled the organization to navigate the organizational and programmatic changes required in this economic crisis.

The Challenge

In this fiscal year, JF&CS is experiencing:• Funding losses estimated in excess of 1 million

dollars• 15-20% cuts from United Way and Federation• Dramatically increased community need.• Loss of administrative and direct service support.• Burdens from compliance.• Fundraising challenges• A call to action to increase service delivery.

The Response

Recent operational & programmatic shifts include:

• Implement workforce reduction of approximately 30 FTEs.• Replaced individual printers with network printers• Replaced our profit sharing plan with a matching 401K• Cut back significantly on print advertising and media, impacting postage as well• Cut back on conferences and out of town meetings• Delayed updating our MIS system• Sought funding for new vehicles to reduce maintenance expenses on an older fleet for

our transportation services• From current FY09 budget, we anticipate a reduction in budgeted operating expenses

of almost $600,000 and a reduction in budgeted payroll of $400,000 (part of this is a result of not hiring for many budgeted positions)

• Switched phone service providers to obtain savings• Cut back on technology costs and upgrades• Divest from programs

The Methodology

JF&CS has utilized the following strategies when approaching the shifts:

• Preserve direct service• Focus on impact• Prioritize cuts as follows:

– FIRST – Expense Reduction– SECOND – Non-Critical Administrative Layoffs– THIRD – Non-Critical Program Layoffs– FOURTH – Targeted direct service layoffs– FIFTH – Program Divestment

• Communicate openly, honestly, and frequently.• Replace lost funding through aggressive fundraising efforts.• Seek grants to cover infrastructure and facility expenses• Justify tough calls/messages and build consensus with data.

The Strategy

Key organizational & programmatic strategies assisting us in navigating through the crisis include:

• Developing & nurturing a “business-like culture.”• Building a program planning and evaluation

methodology that is data and measurement driven.• Enhancing inter and intra-agency collaboration.• Focusing on agency impact.• Aggressively seeking new avenues for support.• Developing & implementing a communications

strategy.

Organizational Redesign - The ‘B’ Word

JF&CS’ current business-like strategy includes the following characteristics:

• Eliminating barriers to service• Creating feeders for services• Developing earned income initiatives• Diversifying revenue streams• Shifting people and infrastructure based on impact.• Using board and other volunteers effectively.• Being data driven.• Engaging in Program Quality Improvement• Creating a learning/testing/training environment• Optimizing service delivery model (the “production system”)• Prioritizing customer service at every level.• Adapting to changes in environment.

Organizational Redesign - Impact Focus

Challenging times require people to focus on the impact; not just on the activities. Always ask “Why?” and “What are we trying to accomplish.”

– Nietsche: “The most common form of human stupidity is forgetting what we are trying to do.

– Covey: “Start with the end in mind and work backwards.”

Organizational Redesign - Development/Support

JF&CS established a multi-pronged development plan.

• Rely on community ambassadors.• Seek connections to funders through board. • Rely on the power of the mission to garner support.• Work to build support from all key stakeholders.• Invest in grant writing• Capitalize on awareness from multiple sources

(BMDC example)• Cultivate individual donors• Seek corporate sponsorships • Executive Director should devote substantial time to

resource development.

Organizational Redesign - Communications

Communication is critical in times of crisis.• Rely on community ambassadors.• Use data to help tell the story.• Capitalize on increased awareness.• Use success in one area to generate interest and

credibility in other areas.• Communicate consistently, openly, and honestly.• Focus on communication to all stakeholders.

– Funders/Donors– Clients/Consumers– Board/Volunteers– Staff

Program Redesign

JF&CS relies on several tools to enforce and support program redesign.

Collectively, these tools measure effectiveness, impact and causality of programs.

Program Redesign

Program planning and evaluation tools include:• PEPs (including NewProg, ExistProg, EndProg)• Operations Dashboard• Program Scorecard• Strategic Triangle• PP&E Committee• Program Committees

TM

Program Scorecard• Need - Fits with our mission. * Meets a proven need in the community. * Fills a

previous gap in services. * • Staffing/Facilities/Technology - Has experienced, competent staff. * Has

experienced, competent management. * Has the administrative support needed. * Provides ongoing professional training for staff. * Requires heavy administrative support. * Has sufficient office space available. * Technology needs are met. *

• Financial Viability - Is funded by renewable grants. * Is funded by grants. * Is funded by fees. * Is funded by third party income (Medicare, Medicaid) * Is funded by major donors (including corporations) * Can support overhead costs. *

• Programmatic Analysis - Is based on best practices in the field. * Easily reaches target population. * Client satisfaction is high. * Has measurable outcomes & indicators. * Has system in place for tracking outcomes. * Meets or exceeds set outcomes. * Strengths outweigh weaknesses. * Can be expanded. * Has a market share (% of market for a service) of 25% or more. * Knows and addresses competition. *

• Planning/Sustainability - Uses outcome results to improve program. * Has a three-year vision. * Has a short-term plan. * Planning includes financial sustainability.

Program Redesign

Program Redesign

Utilize strategic triangle to evaluate agency programs.

1. Does initiative fall within the existing capacity of the organization?

2. Do people who are relevant support the initiative?

3. Does the initiative fit within the mission?

Mission

Support/$

Field of Dreams

Capacity/

Best At

Just Do It!

We Dream!

Mission Shear

Program Redesign

Utilize mission money matrix to evaluate agency programs

Requires funding Clear winner

Potential Distraction Generates Funding

Financial Contribution

Negative Positive

Mis

sion

Matc

h

High

Low

One must balance the inherent conflict between social mission and earned income (eg. Limiting number of low income clients to make greater margins).

““A crisis is an opportunity A crisis is an opportunity riding the dangerous riding the dangerous wind.”wind.”

-Chinese Proverb