Your SlideShare is downloading. ×
  • Like
Charter School Association Myths and Science of Sustainability
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Now you can save presentations on your phone or tablet

Available for both IPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Charter School Association Myths and Science of Sustainability

  • 884 views
Published

Creating Sustainability …

Creating Sustainability
The Science and Myths of Building High Performance Non-Profits by E. Ted Fujimoto, President
Landmark Consulting Group, Inc.

Published in Economy & Finance , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
884
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
11
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. LET YOUR NON-PROFIT GROW Creating Sustainability The Science and Myths of Building High Performance Non-Profits E. Ted Fujimoto, President Landmark Consulting Group, Inc.
  • 2. LET YOUR NON-PROFIT GROW
  • 3.  
  • 4.  
  • 5. “ Sustainability” LET YOUR NON-PROFIT GROW Earned Revenues Philanthropic Funding Your Mission Your Core Operations
  • 6. “ Sustainability” LET YOUR NON-PROFIT GROW Core Operations Your Mission Opportunities Scaling Risks Philanthropic Funding Earned Revenue
  • 7. “ Sustainability”
    • Enough capital ($) generated from earned revenue to:
      • Pay for core operations to fulfill mission
      • Surplus to pay for scaling, risks/mistakes, as well as new opportunities
    • Dependency on philanthropic funding only for:
      • Scaling, Risk Mitigation, and New Opportunities
    LET YOUR NON-PROFIT GROW
  • 8. “ Sustainability-Principle”
    • Sustainability is about creating more “perceived” value by customers than the cost to operate that activity and business.
    LET YOUR NON-PROFIT GROW
  • 9. “ Five Sustainability Killers” LET YOUR NON-PROFIT GROW
  • 10. LET YOUR NON-PROFIT GROW Meet Mark
    • Real estate agent
    • Mortgage Broker
    • Organize your move
    • Interior Designer
    • Home Insurance
    • Life/Health Insurance
    • Financial Advisor, Securities Broker
    • Tax Preparer
    • House cleaning
    • Yard Service
    • Pest Control
    • Auto mechanic
    • Windshield repair
    • Kids tutoring
  • 11. LET YOUR NON-PROFIT GROW MYTH – To be a great Association, we must solve as many member needs as possible. To be a great Non-Profit, we must solve as many constituents needs as possible. To be a great CMO, we must solve as many of our school site needs as possible.
  • 12. “ Hedgehog Concept” LET YOUR NON-PROFIT GROW
  • 13. Association LET YOUR NON-PROFIT GROW Advocacy Events Services Products
  • 14. Radical Idea Case Study LET YOUR NON-PROFIT GROW
  • 15. How to LET YOUR NON-PROFIT GROW Core Operations: Membership Products & Services Events Marketing & Sales Finance HR Board State B-Member Council State A-Member Council State B Advocacy State A Advocacy State B – Unique Services/Support State A – Unique Services/Support CEO State B ED State A ED VP/COO State A Association State B Association
  • 16. CMO LET YOUR NON-PROFIT GROW
  • 17. LET YOUR NON-PROFIT GROW MYTH – The association will be a near-automatic first choice by members for solutions . MYTH – The non-profit/CMO will be a near-automatic first choice to receive help for customers/schools.
  • 18. “ Survey Myth” LET YOUR NON-PROFIT GROW
  • 19. “ The Perfect Fit” LET YOUR NON-PROFIT GROW Marketability Significant Value Profitability Do charters perceive a huge need and want to buy a solution? Does the business model support creating short-term and long-term profit? Does the solution save charters significant costs and/or create huge additional value? What we can be deeply passionate about? What we can be the best in the world at? Passion Expertise
  • 20. “ How To Get Real Market Input LET YOUR NON-PROFIT GROW Be Humble Your best ideas
    • Talk to 50 customers
    • Open conversation of biggest issues they feel like they need help with
    • Association won’t be able to solve all their issues
    • Which issues do they think the Association is or can be capable of providing the most value
    • One on one, small groups
    • Validate needs and perceived value with broader customers
    • Larger groups, survey
  • 21. Value Principle
    • Perceived value is what counts
    • Too expensive to change perceived value
    • Customer does NOT have to purchase with the “right motives” to receive benefits/value
    • Your offering does NOT need to be a complete solution to be the right product
    • Thirst/Desire/Comfort is why people buy from one versus another
    LET YOUR NON-PROFIT GROW
  • 22. Product Mix LET YOUR NON-PROFIT GROW Entry Entry Mid-Level/Partial Solutions Mid-Level/Partial Solutions Big Complete Solutions Entry Entry Mid-Level/Partial Solutions Big Complete Solutions Customer Perceived Needs
  • 23. “ Myth of Earned Revenue” LET YOUR NON-PROFIT GROW $1M additional expense to generate $1.4M in earned revenue (71% profit margin) Core Operating Base Line
  • 24. “ Myth of Earned Revenue-CMO” LET YOUR NON-PROFIT GROW Need as much contributions as they did at the beginning or more Number of Schools
  • 25. “ Myth of Earned Revenue” LET YOUR NON-PROFIT GROW MYTH – More earned revenue = less philanthropic funding needed
  • 26. Earned Revenue Principle LET YOUR NON-PROFIT GROW Activity
    • More perceived value than actual cost
    • Generates more cash than it costs
    • Generates margin – for risks, growth, and opportunities
    Activity Activity Activity
    • Examples:
    • Services – 2-3x times cost = minimum 30% margin
    • Products – higher volume = 5-10% margin
  • 27. Cash Flow – Generating more cash inflow than outflow LET YOUR NON-PROFIT GROW Biggest enemy of cash flow is TIMING! Q1 $100K Expense Q2 $100K Expense Q1 $0K Revenue Q2 $0K Revenue $ (100K) $ 0 $ 100K $ 200K $ (200K) $ (200K) $ (100K) $ 100K Q3 $100K Expense Q4 $100K Expense Q1 $200K Expense Q2 $300K Expense Q3 $400K Expense Q3 $100K Revenue Q4 $200K Revenue Q1 $400K Revenue Q2 $600K Revenue Q3 $800K Revenue $ (100K) Period $ (100K) Cumulative $ 300K $ 400K $ 400K $ 800K Year 1 Year 2 Planned Launch Profitable Cash Positive
  • 28. Cash Flow – Generating more cash inflow than outflow LET YOUR NON-PROFIT GROW Biggest enemy of cash flow is TIMING! Q1 $100K Expense Q2 $100K Expense Q3 $100K Expense Q4 $100K Expense Q1 $0K Revenue Q2 $0K Revenue $ (100K) $ 0 $ 100K $ 200K $ (200K) $ (200K) $ (300K) $ (100K) Year 1 Year 2 Planned Launch $ 100K $ (100K) $100K Expense $200K Expense $300K Expense $100K Revenue $200K Revenue $400K Revenue $600K Revenue $800K Revenue $ (100K) Period $ (100K) Cumulative $ 300K $ 400K $ 400K $ 800K Profitable Cash Positive
  • 29. Cash Flow – Generating more cash inflow than outflow LET YOUR NON-PROFIT GROW Biggest enemy of cash flow is TIMING! Q1 $100K Expense Q2 $100K Expense Q1 $0K Revenue Q2 $0K Revenue $ (100K) $ (100K) $ 0 $ 50K $ (200K) $ (400K) $ (300K) $ (400K) Year 1 Year 2 Planned Launch $ (350K) $ (100K) $400K Expense Q3 $100K Expense Q4 $100K Expense $100K Expense $200K Expense $300K Expense $100K Revenue $200K Revenue $400K Revenue $600K Revenue $800K Revenue $ (100K) Period $ (100K) Cumulative $ 200K $ 400K $ (150K) $ 800K Profitable
  • 30. LET YOUR NON-PROFIT GROW Team Team Team
    • Timing
    • Commitments
    • Volume
    • Skill/Exprience
    • Staffing
    • Rhythm
    Advocacy Business Event Business Procurement Business Consulting Business Etc Business Advocacy Business Event Business Procurement Business Consulting Business Etc Business
  • 31. LET YOUR NON-PROFIT GROW Team Team Team
    • Timing
    • Commitments
    • Volume
    • Skill/Exprience
    • Staffing
    • Rhythm
    CMO Advocacy Business Event Business Procurement Business Consulting Business Etc Business Advocacy Business Event Business Procurement Business Consulting Business School daily operations Business
  • 32. LET YOUR NON-PROFIT GROW MYTH – Having smart/experienced people is enough to launch/operate multiple businesses.
  • 33. “ In Action” LET YOUR NON-PROFIT GROW Organization Focus Business Team Business Team Team Business
  • 34. “ Using Small Teams” LET YOUR NON-PROFIT GROW Each Business Team Team Leader (Owner – Accountable – Authority) Team Members – Resource Pool
  • 35. “ No Silos” LET YOUR NON-PROFIT GROW Dependable Specific Deliverables Timelines Quality Levels Business/Team Business/Team Deliberate and Structured Relationships, Cooperation, Collaboration
  • 36. Governance LET YOUR NON-PROFIT GROW Business Business Business Board of Directors Board of Directors Advisory Board Association Association Contracts Internal Staff A B C
  • 37. LET YOUR NON-PROFIT GROW MYTH – Build it and they will come!
  • 38. “ Know your customer” LET YOUR NON-PROFIT GROW
  • 39. How to LET YOUR NON-PROFIT GROW
    • Know how many have need
    • Create 100% awareness
    • 7 multi-mode communication hits
    • Communicate value /benefits
    • Stay on message/Keep it simple
    • Create predictable rhythm
    • Use entry and up-sell opportunities
    • Build trust/credibility
    • Don’t wait for perfection
  • 40. LET YOUR NON-PROFIT GROW
  • 41. “ Generate Results” LET YOUR NON-PROFIT GROW 50% qualified lead rate 25-50% close rate
  • 42. “ Five Sustainability Strategies” LET YOUR NON-PROFIT GROW
  • 43. More than Sustainability Increased Capacity, Scale, Growth! LET YOUR NON-PROFIT GROW
  • 44. LET YOUR NON-PROFIT GROW Discussion/Q&A E. Ted Fujimoto, President Landmark Consulting Group, Inc. [email_address] 415-963-4406 www.ConsultLandmark.org
  • 45.  
  • 46. LET YOUR NON-PROFIT GROW CharterConnect
    • State Association
    • Advocacy
    • Events
    • P&S offerings
    • Visits/Meetings
    Charter School Leaders 100% Immediate Awareness Rapid, Personal, and Informed Communications to all your members Hi Joe, this is Gwen from the association…how are you? George wanted me to give you a quick call to let you know the bill AB 231 actually passed…this means $100 more per student next year…how do you like that? We thought you would love to know because I know you had helped us with your letter to Senator Brown.
  • 47. LET YOUR NON-PROFIT GROW Thank you!!! E. Ted Fujimoto, President Landmark Consulting Group, Inc. [email_address] 415-963-4406 www.ConsultLandmark.org