1. The MacMillan Matrix A Tool for Program Analysis
Presentation to the
YWCA Mid-Atlantic Region
Shelly M. Schnupp
SMS and Associates

2. Why Program Analysis? Greater demand for accountability
More competition….for funding and customers
Changing needs, evolving environments

3. …Nonprofits are Responding
Refocusing on mission
Competing where appropriate
Avoiding duplication
Maximizing strengths
Increasing partnerships and collaborations

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

5. 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

6. 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?

7. Matrix Criteria Fit Economic Attractiveness Alternate Coverage
Competitive Position

8. 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?

9. 2. Economic Attractiveness— revenue availability (High or Low)
Current stable funding?
High appeal to funders, supporters?
High market demand?
Measurable, reportable outcomes/results?

10. 3. Alternate Coverage competition (High or Low)
Are similar services provided?
Do customers have many other choices?
Competitors now and future?

11. 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?

12. Program Analysis Steps
1. Preparation
2. Implementation
3. Analysis
4. Action

13. Step 1. Preparation Assemble analysis team Staff Board
Assemble Program Profiles
Identify additional data
Mission, Vision
Strategic Plan

14. See Program Profile Format and Example
Program purpose and history
Customer Profile—who is targeted, served, trends, challenges
Primary program activities
Outcomes--customer and other
Funding—sources, trends, issues
Staffing—requirements, status and issues
Competition—others 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

15. 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

16. 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

17. MacMillan Matrix Worksheet Economic Attractiveness
Program
Fit
Economic Attractiveness
Alternate Coverage
Competitive Position
Good
Poor
High
Low
Strong
Weak
Child Tutoring
Racial Justice
Job Training
Women’s Leader-ship

18. High Economic Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Economic Attractiveness
(Easy to attract resources for support)
Low Econonic Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
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
9. Aggressive Divestment
10. Orderly Divestment
POOR FIT

19. MacMillan Matrix Worksheet Economic Attractiveness
Program
Fit
Economic Attractiveness
Alternate Coverage
Competitive Position
Good
Poor
High
Low
Strong
Weak
Child Tutoring X
Racial Justice
Job Training
Women’s Leader-ship

20. High Econ. Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for support)
Low Econ. Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
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
9. Aggressive Divestment
10. Orderly Divestment
CHILD TUTORING
POOR FIT

21. 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.

22. MacMillan Matrix Worksheet Economic Attractiveness
Program
Fit
Economic Attractiveness
Alternate Coverage
Competitive Position
Good
Poor
High
Low
Strong
Weak
Child Tutoring X
Racial Justice
Job Training
Women’s Leader-ship

23. High Econ. Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for support)
Low Econ. Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
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
9. Aggressive Divestment
10. Orderly Divestment
POOR FIT

24. 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

25. MacMillan Matrix Worksheet Economic Attractiveness
Program
Fit
Economic Attractiveness
Alternate Coverage
Competitive Position
Good
Poor
High
Low
Strong
Weak
Child Tutoring X
Racial Justice
Job Training
Women’s Leader-ship

26. High Econ. Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for support)
Low Econ. Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
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
9. Aggressive Divestment
10. Orderly Divestment
POOR FIT

27. 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.

28. MacMillan Matrix Worksheet Economic Attractiveness
Program
Fit
Economic Attractiveness
Alternate Coverage
Competitive Position
Good
Poor
High
Low
Strong
Weak
Child Tutoring X
Racial Justice
Job Training
Women’s Leader-ship

29. High Econ. Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for support)
Low Econ. Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
WOMEN’S 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
9. Aggressive Divestment
10. Orderly Divestment
POOR FIT

30. 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.

31. 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.

32. 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?

33. High Econ. Attractiveness (Easy to attract resources for support)
MacMillan Matrix
High Econ. Attractiveness
(Easy to attract resources for support)
Low Econ. Attractiveness
(Difficult to attract resources for support)
Alternate Coverage
HIGH
LOW
Strong Competitive Position
1. Aggressive Competition
2. Aggressive Growth
WOMEN’S 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
9. Aggressive Divestment
10. Orderly Divestment
CHILD TUTORING
POOR FIT

34. 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?

35. 4. Take Action Develop plan for implementing results Implement Plan
Use results in strategic planning

36. Program Analysis Applications
Generate data for strategic planning
Check on “hunches” or assumptions
Analyze programs against new vision, strategic plan
Develop new programs

37. Program Analysis Benefits
Increase understanding
Develop consensus
Encourage objectivity
Build organizational capacity

38. Tips for Engaging in Program Analysis
Base analysis on data; develop “program profiles”
Challenge assumptions
Use a facilitator—especially for existing programs
Avoid second guessing results
Document issues that surface
Develop a plan and act on it!

39. QUESTIONS? Contact: Shelly Schnupp 414-412-0408 shellyschnupp@aol.com
SMS and Associates