1. Mission & Profitability
A Model for Sustainability
This session presents a model that helps determine the strategic steps necessary to sustain a Kroc Center

2. Brent Wilcoxson, Business Director Bram Roberts, Program Director
Grand Rapids Kroc Center

3. Bram is the program director at the Grand Rapids Kroc
He oversee the areas of Recreation, Day Camp, Health and Fitness, Aquatics and Education
Each of these areas has a department manager who reports to Bram
Brent is the business director at the Grand Rapids Kroc
He oversee Finance, HR, IT, Rentals and Food Service
GR Kroc has one professional in each of Finance, HR and IT and, currently a rentals manager and a kitchen supervisor who report to Brent.

4. The model we are presenting today comes, in large part, from this book by Steve Zimmerman and Jeane Bell. A core component of the sustainability mindset is the use of a visual representation of our centers called the Matrix Map.

5. This is Your Department
Only so much mission
Only so much money
An initial way to visualize your center is with a circle. Like the circle, there are boundaries and limitations in a Kroc Center. There are only so many resources and so much that can be done. We must determine the most effective and efficient way we can use our resources to achieve the greatest amount of impact given these boundaries and limitations. We must meet present needs without compromising the future.
The Sustainability Mindset/Matrix Map model can lead us to achieve that goal.

6. Dual Bottom Line: Mission Impact and Financial Responsibility
The model is a method to make strategic decisions for the long term sustainability of the Kroc Center - both
impact (mission) and profitability (margin)
The key component of this model is the Matrix Map which is used to "plot" all of our business lines or key elements
using impact (misssion) as the vertical axis and profitability (margin) as the horizontal axis.
The four quadrants are represented by Star, Heart, Money Tree, and Stop Sign. These will be explained in detail later.
Again, the Matrix Map is a visual representation of the business model/operations of the entity.

7. Example
Here is an example of a Matrix Map. Each of the different business lines/key activities are plotted based on their
contribution to impact (mission) and profitability (margin).
This is a snapshot in time. Not ‘what you want it to be’, but what it actually is.

8. Our Agenda Theory behind the Matrix Map model
How to develop and use the model
Case study Review of the Grand Rapids Kroc Center.

9. Session Outcomes
Better understanding of the relationship between mission and profitability through the introduction of the Matrix Map tool.
Ability to develop strategies for increased financial security and enhanced program alignment with the Kroc Center’s mission.
Delegates will be equipped with knowledge and worksheets of how they can develop a matrix map at their Kroc Center

10. Matrix Maps Steps Identify all business lines Assess Relative Impact
Determine Profitability
Map the Results

11. Identifying Business Lines
The first step in the process is to determine what are the business lines of the Kroc Center - what are the key
activities that make us who we are?

12. What’s Important…. Size Focus Feedback/Recognition
What are the lines, activities, programs, etc that are most important to the Kroc Center. Some criteria to determine
importance could be; Size - number of participants, number of employees allocated to that activity, dollars invested, etc
Focus - time invested, who and how many people are paying attention to it, etc.; Feedback/recognition -
areas where the Kroc has received awards, accolades, recognition, or areas where members/general public perceive you to be important etc. You may have different or additional determinants but whatever you
use, you are looking for those key activities that make the place hum. We would also recommend
that as you begin this process you limit yourself to major activities. While ultimately you will want to drill down
to very specific events, programs, etc., the first approach needs to be from a larger, more general perspective.

13. Potential Business Lines to Review
Recreation & Sports Programming
Parks
Aquatics
Day Camp
Fine Arts
Rentals
Fitness
Golf Course
Ice Arena
Membership
Food Service
After School Programming
Senior Programming
Millage
City allocations
Skate Park
At the GR Kroc we identified eight lines that were, we believed, the key drivers of our operations. In alphabetical
order - Aquatics, Congregational Life, Day Camp, Education, Health & Wellness, Membership, Recreation and Rentals

14. Potential Problems Functional vs. Financial Data Limitations
As we went through the process of defining our business lines to map, we discovered some caveats. Often when we
talk about "business lines" we immediately think of finances. While, in most cases, our lines were actually
separate departments with TSA assigned GL codes, it is more important that you think of how lines/activites function
and make the finances fit.
Another problem that occurs is data limitations. As we identified our business lines and components that
went into their makeup, we discovered that how we "grouped" things from a financial operation
standpoint was not necessarily how they operated from a functional standpoint and so we didn't have the
proper information in the proper place to make good financial decisions. Likewise, our center operating software
has some deficiencies in the information available and so makes the process more difficult.
It is important that the business lines are a good reflection of who you are so that you can take the next step of determining each line’s missional impact.

15. Assessing Impact Impact Scores Y Axis Impact Bram The vertical axis.
Emphasis on impact that our programs and operations are having right now. NOT what they could or we imagine them to be.
Before we decide on how much impact we are having and rating our programs, we need to make sure we understand the impact we are supposed to be having, what its supposed to look like, and who we are supposed to be impacting.
One of the more meaningful steps in matrix map process is discussing impact.
Impact

16. Determining Impact

17. Determining Impact Why are we doing what we are doing?
Who are we targeting? Who do we hope to impact?
Who are we trying to impact? What will success look like?
There is an importance of understanding and having a defined meaning and collective understanding when we say a program is ‘missional’.
These are some of the of the questions need to make sure we have an answer to
AND is this ‘shared purposed’ understood in the organization.
What is it we are trying to do?
What will it look like when it is happening?
This leads us to the development of an impact statement to drive this. These are different than mission statements.

18. Developing An Internal Impact Statement
An impact statement is…
“a statement or series of statements about what the organization is trying to achieve and will hold itself accountable ……”
(The Bridgespan Group, 2015).

19. Impact Statement vs. Mission Statement
Broad statements about the overall work and purpose of the organization. More aspirational in character.
Impact Statement
Specific and clear
Includes the desired outcomes that the organization wants to accomplish.
Helps you identify the proof that your nonprofit is accomplishing its mission.
Answers, why do we exist?
Impact is what matters. It’s how you know you are achieving something.
An intended impact is a statement or series of statements about:
what specifically the organization is trying to achieve and will hold itself accountable to.
It succinctly identifies what results the organization will accomplish, for whom, and in what time frame.
Articulating the intended impact requires specifying the change or social benefit the organization is committed to achieving, for whom, and in what timeframe. For example, "We will serve X population in Y geography to accomplish Z outcomes by 20XX." This requires thoughtful consideration regarding what level of progress is actually feasible and trade-offs among different potential goals (e.g., depth vs. breadth) (The Bridgespan Group, 2015).

20. Main Ingredients Who benefits ?(the target)
What are the benefits? (how will they change?)
How will it be done?
An intended impact is a statement or series of statements about what specifically the organization is trying to achieve and will hold itself accountable to. It succinctly identifies what results the organization will accomplish, for whom, and in what time frame. While these frequently serve as complements to mission statements that tend to be fairly aspirational in character, they may actually be the same as mission statements where expected outcomes are set forth with sufficient clarity.
Articulating the intended impact requires specifying the change or social benefit the organization is committed to achieving, for whom, and in what timeframe. For example, "We will serve X population in Y geography to accomplish Z outcomes by 20XX." This requires thoughtful consideration regarding what level of progress is actually feasible and trade-offs among different potential goals (e.g., depth vs. breadth) (The Bridgespan Group, 2015).

21. A good impact statement will…
Provide direction for your department
Staff training
Program Development
Customer Service
Give specific areas for you to measure how well you are doing. Help you know if you are meeting the departments objective.
Hold yourself accountable

22. Department Impact Statement
Program Department
The program department provides opportunities for members, guests and residents of the SE Grand Rapids community to enhance and develop new skills, improve wellness, inspire creativity, and grow spiritually through quality programming, fun activities and memorable special events.
Aquatics:
To provide people of all ages and backgrounds with the opportunity to learn how to swim, improve health, increase knowledge of water safety, provide lifesaving skills and share the love of water in a welcoming environment.
Fitness:
The fitness department exists to empower, educate and improve both member and the community wellness through group exercise, personal training, programs and positive member engagement.
Day Camp:
Provide children of all ability levels ages 5-17 the opportunity to grow spiritually through bible lessons and worship, physically through active sports and games and emotionally through structured group activities that aid in developing socialization and enhancing self-confidence in a positive and safe environment.
To be determined once we know the profitability. In this sense, we are doing it backwards.

23. Department Impact Statement
Program Department
The program department provides opportunities for members, guests and residents of the SE Grand Rapids community to enhance and develop new skills, improve wellness, inspire creativity, and grow spiritually through quality programming, fun activities and memorable special events.
Aquatics:
To provide people of all ages and backgrounds with the opportunity to learn how to swim, improve health, increase knowledge of water safety, provide lifesaving skills and share the love of water in a welcoming environment.
Fitness:
The fitness department exists to empower, educate and improve both member and the community wellness through group exercise, personal training, programs and positive member engagement.
Day Camp:
Provide children of all ability levels ages 5-17 the opportunity to grow spiritually through bible lessons and worship, physically through active sports and games and emotionally through structured group activities that aid in developing socialization and enhancing self-confidence in a positive and safe environment.
To be determined once we know the profitability. In this sense, we are doing it backwards.

24. Department Impact Statement
Seniors:
To be a welcoming environment for adults ages 55 and older providing opportunities to improve physical fitness, educate on influential topics, fellowship in a positive atmosphere, and inspire through expressive and creative arts in an effort to increase longevity and quality of life for a population of aging adults.
Education:
The education department provides unique, high quality educational opportunities to underserved populations and supports the academic, social, and emotional needs of at-risk children.
Fine Arts:
Inspiring an appreciation for fine art by providing people of all ages the opportunity to develop and enhance creative expression through 2D and 3D visual art classes as well as empowerment through performing arts education in an inclusive and encouraging environment.
Recreation & Sports:
The Grand Rapids Kroc Center Sports and Recreation department exists to provide all members and guests the opportunity to develop skills, enhance athletic ability, improve physical fitness, and create and grow friendships through sports and friendly competition.
To be determined once we know the profitability. In this sense, we are doing it backwards.

25. Impact Criteria Contribution to Intended Impact
Excellence in Execution
Scale or Volume
Depth
Significant Unmet Need
Community Building
Leverage
Once we know the impact we desire to have in all of our programs and operations, we can determine if that is actually happening.
Through the matrix map process, this happens by rating our programs/business lines against seven criteria. Once we’ve rated our programs, this will determine where they land on the Y AXIS.
This will be some of your most difficult conversations, however what we’ve found is that they are perhaps the most honest, liberating, and healthy conversations we’ve had as a team. THESE CONVERSATIONS ARE HAPPENING behind closed doors, at lunch, etc. This process brings them to light.
The scoring is certainly going to be subjective in nature, however like the map, the most important thing isn’t necessarily getting a final product, it’s the conversations around the map and that the map creates.

26. Contribution to Intended Impact
How well are we achieving the stated impact of the organization/business line?
Do we have evidence of this?
Relates back to the statements that you’ve created for your programs/operations.
Do we actively evaluate our program, services, activities to make sure they are ‘doing’ what they are supposed to be doing?
Can we produce proof?
I have no problem saying that our ‘_______’ department is about making disciples. The key is then, is that happening?

27. Excellence in Execution
Offered in an outstanding, superior way
Programs executed in an amazing way
Sources
Program evaluation data
Feedback
Observation
Staff performance evaluations
Staff turnover and exit interviews
Note: Relevant programs, but poorly executed are doing harm by underserving constituents and, in cases where there are other options, absorbing resources that could be deployed elsewhere.
Do we do it the best?
Is it well known in the community?

28. Scale or Volume Does it reach a large number of people?
Population groups or communities reached.
Sources
Programs sold or completed
Utilization records
Program will have higher impact if it reaches two hundred people than if it reaches fifteen.
Are the programs at capacity.
Membership – we’ve have 5,000 however how does that relate to what we could have.

29. Depth Does program have a high impact on the people involved? Sources
Logical models and theories of change that articulate specific desired impacts and how the program generate them.
Program evaluation data
Observations
May not have scale, but has depth

30. Significant Unmet Need
Competition and other providers
Being sole provider does not mean a high score.
Are we the sole provider?
What would happened if we went away, would the service not be provided anymore?
Is the program helping solve a problem?
High Demand/Short Supply
Examples:
Community Gardens – They are trending thing in our area….
Swim Lessons – No one is offering swim lessons in our part of town or in our neighboring city.
Sources
Review of competitors websites
Asking clients where else they could get the service

31. Community Building Does it help build the community around the center?
Is community engaged in delivery of the program?
Does it offer a level of inclusion to an often isolated group or population?
Is the community better because of this program? Safer, healthier, etc.
Is the program a collaboration or partnership, helping bring the organizations together to serve the community.
Is it serving underserved groups of people?
What would happen if it went away? Would it matter?

32. Leverage
How does one program or business line increase the impact of other programs/business lines?
One particular program strengthens the organization’s standing and ability to raise funds for other programs. Gives organization high and positive visibility and branding
Creates tools or audiences that enable other programs to be effective
Day Camp = Swim Lessons
Kids Club = Sports Leagues
Fundraising: Do you have fundable programs? Outcome based?
Creates audiences: Day camp – children’s events and vice versa.
Does the program create a buzz, good PR that increases the Kroc’s community standing.
Do people want to work with you because of the program?

33. Rating System Each program and business line 1 to 4 rating system
Not much impact
Some impact
Very strong impact
Exceptional impact
Scoring individual vs. team approach
1 – 4 system forces you to have a deeper question. Can’t select a ‘5’ or a ‘7’
Scores will be subjective.
There is no 0. If it was a 0, you would hopefully not be doing it.

34. Mission Impact Scores
Subjective
Takes time

35. Determining Profitability
Revenue vs. Expense
X Axis
Profitability
After deriving the impact score for each of the business lines the next step is to determine each line's profitability.
Again, from a visual standpoint, profitability is plotted on the horizontal axis.
(To be determined once we know the profitability. In this sense, we are doing it backwards?)

36. Things to consider….. Revenue allocation received from membership
Expenses from areas tied to membership such as:
Open Swim
Drop-In Fitness Classes
Open Gym
Child Watch
Overhead Expenses
Administrative Expenses (including manager’s salaries)

37. Finances

38. Mapping Results

39. Size of the bubble is the gross expense of the of the business line.

40. Reading Your Map
Business Model Statement

41. The Star Quadrant Invest and Grow Starting Point: Invest and grow
Do we understand the needs and motivations of stakeholders who make the star possible?
Are there opportunities (i.e. new geography, new population, complementary programming) to expand the program’s impact and revenue?
We need to sustain these programs. They are important to our mission and our bottom line. How can we grow these for more impact and more revenue?
Need to protect!

42. The Heart Quadrant Keep and contain costs
Starting Point: Keep and contain costs
Can we envision this program achieving the same impact – or very close to it – with a different cost structure?
Is there a different revenue strategy to consider?
Are we getting the ‘most’ impact for the cost of the program?

43. The Money Tree Quadrant
Water and Harvest, Increase Impact
Starting Point: Water and harvest, increase impact
Can the net surplus be increased and, if so, what investment will that growth require?
Are there means to reducing the program’s cost and improve the margin?
Are there ways to achieve greater impact by making the program stronger?
Incredibly important to our heart programs. These sustain the heart programs. They are interdependent.
Can we improve impact?

44. The Stop Quadrant Close or Give Away
Starting Point: Close or give away
Can we innovate this program to move out of this quadrant?
How long will we give ourselves to move the stop sign?
Is that the best use of resources?
One GR Kroc Center’s best example’s of this is Food Service. Also, our efforts in certain sports. There are people in our community that do it better, have a better reputation, and the have the resources and history of doing it well.

45. Size of the bubble is the gross expense of the of the business line.

46. Case Study: Grand Rapids Kroc Center

47. Case Study: Grand Rapids Kroc Center
Five Years – What should we be doing?
Define business lines to review
Managers/Directors present
Went through the matrix mapping process and examined results
Had managers drill down and map their areas
Developed suitability strategies to guide the department

48. Reading the map.
Use worksheet. Map with questions to consider.

49. Business Model Statement
The Grand Rapids Kroc Center engages the community in aquatics, health & wellness, day camp and recreation programs through program service fees, while our congregational life , education programs and facility operations are supported through membership dues, program revenue and endowment funds.
This is our business. Its how we operate and are sustainable.
Describes our center’s revenue strategies and how they are linked to impact.
Capture the fundamentals of what we do and how it drives your resource engine.
Example:
“XYZ engages the community in our organizing efforts through membership dues and an annual donor campaign, while our convening and advocacy work is supported through restricted grants f rom state and national foundations.”

50. Star:
Do we understand the needs and motivations of stakeholders who make the star possible?
Are there opportunities (i.e. new geography, new population, complementary programming) to expand the program’s impact and revenue?
Heart:
Can we envision this program achieving the same impact – or very close to it – with a different cost structure?
Is there a different revenue strategy to consider?
Money Tree:
Can the net surplus be increased and, if so, what investment will that growth require?
Are there means to reducing the program’s cost and improve the margin?
Are there ways to achieve greater impact by making the program stronger?
Stop:
Can we innovate this program to move out of this quadrant?
How long will we give ourselves to move the stop sign?
Is that the best use of resources?

51. In Our Team Days…. Developing a narrative. The most important themes.
Organizational truths – both flattering and potentially threatening
Reading the map and asking questions.
Messages from the Map
Key messages
Top five priorities
Further departmental level mapping
A story
Organizational truths – both flattering and potentially threatening
Questions
How do our bubbles cluster?
Do we have the ‘right’ revenue?
Are the dynamics of our market landscape changing in critical ways?

52. GR Kroc Strategic Imperatives Examples
STARS
Organizational structure of membership department.
Day Camp marketing opportunity and leadership structure
MONEY TREE
Rental Dept. Organizational Structure
Develop mission branding for rentals
HEART
Pricing of after school program and develop a program specific fundraising campaign

53. GR Strategic Imperatives

54. Department Example - Recreation
Change to rec

55. Department Example - Recreation

56. Department Example - Recreation

57. Strategic Maps

58. Questions and Closing Comments

59. For a copy of today’s presentation: