FIELD GUIDE TO NONPROFIT PROGRAM DESIGN, MARKETING AND EVALUATION
Fifth Edition By Carter McNamara, MBA, PhD
Authenticity Consulting, LLC Minneapolis, MN USA
Copyright © 2002, 2017 Authenticity Consulting, LLC, Minneapolis, Minnesota. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means now known or to be invented, electronic or mechanical, including photocopying, recording, or by an information storage or retrieval system without written permission from the author or publisher, except for brief inclusion or quotations for review. For reprint permission, more information on Authenticity Consulting, LLC, or to order additional copies of this or any of our other publications, please contact: Authenticity Consulting, LLC 4008 Lake Drive Avenue North Minneapolis, MN 55422-1508 USA
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Trademarks “Authenticity Circles”, “Free Management Library”, “Free Nonprofit Micro-eMBA” and “Free Micro-eMBA” are service marks of Authenticity Consulting, LLC, Minneapolis, Minnesota. “Authenticity Consulting” and “Leveraging the Power of Peers” are registered marks of Authenticity Consulting, LLC, Minneapolis, Minnesota. “Leaders Circles” is a registered trademark of MAP for Nonprofits in St. Paul, Minnesota. Credits Cover design by Erin Scott/Wylde Hare Creative, Minneapolis, Minnesota. Photographs © 2005 JupiterImages Corporation/Comstock.com, primary cover photo; © Teri McNamara/ Impressions & Expressions and Erin Scott/Wylde Hare Creative, other photos. Illustrations by Erin Scott/Wylde Hare Creative. Clip art by Nova Development Corporation Art Explosion 750,000 Images. Printed by Graphic & Printing Services, Big Lake, Minnesota. Manufactured in the United States of America First Edition, June 2002 Second Edition, February 2003 Third Edition, June 2003 Fourth Edition, May 2006 Fifth Edition, June 2017 Waiver of Responsibility Various web addresses are referenced in this book. The author and publisher have no legal responsibility or liability for the currency or accuracy of these web addresses or the content at these addresses. Information in this book is not to be considered as legal, tax and/or financial advice as if from an expert specifically in those areas. In-depth and technical advice needed in those areas should be obtained from professionals in those areas. Publisher’s Cataloging in Publication Data McNamara, Carter, 1953 Field Guide to Nonprofit Program Design, Marketing and Evaluation / by Carter McNamara ISBN 1-933719-34-6 ISBN 978-1-933719-34-4 1. Nonprofit programs. 2. Marketing. 3. Evaluation. I. Title
Table of Contents Table of Figures.................................................................................vi Introduction ......................................................................................vii Focus of this Field Guide.............................................................................................................. vii Uses for this Field Guide .............................................................................................................. vii Updates to Produce this Fifth Edition........................................................................................... vii How to Use this Field Guide ....................................................................................................... viii Get Help – Do Not Do It All By Yourself...................................................................................... x About the Author ........................................................................................................................... xi About Authenticity Consulting, LLC ............................................................................................ xi Acknowledgements....................................................................................................................... xii
PART I: BACKGROUND AND PREPARATION ............................... 1 Understanding Nonprofit Organizations and Programs..................3 Benefits of a Systems View............................................................................................................ 3 Understanding the “System” of Organizations and Programs ........................................................ 4 System Direction: Mission, Vision, Values, Goals and Strategies ................................................. 8 Nonprofits Programs, Configurations and Types ........................................................................... 8 Organization Chart of a Typical Start-Up Nonprofit.................................................................... 11 Organization Chart of a Typical Small Nonprofit with a CEO .................................................... 12 Organization Chart of a Typical Medium-to-Large Sized Nonprofit ........................................... 13 Depicting the “System” of a Nonprofit Program.......................................................................... 14 Theory of Change – How a Program Really Works ..................................................................... 14 Understanding Life Cycles of Organizations and Programs......................................................... 20
Understanding the General Planning Process ...............................24 Basic Planning Process and Terms ............................................................................................... 24 Guidelines to Ensure Successful Planning and Implementation................................................... 25 Guidelines for Successful Program Development and Evaluation ............................................... 28 Use Board Committees or Task Forces ........................................................................................ 30 How to Acculturate the Processes of Planning, Marketing and Evaluating ................................. 31
Common Approaches to Program Planning ..................................33 “Build It and They Will Come” Approach ................................................................................... 33 Seat-of-the-Pants Approach.......................................................................................................... 34 Incremental Planning Approach ................................................................................................... 35 Business Planning Approach ........................................................................................................ 35 A Business Development Approach – Earned Income or Social Enterprise ................................ 37 Good Program Development Is Good Program Management ...................................................... 38 Considerations to Ensure Sustainable Programs .......................................................................... 38
Strategic Planning: Overall Direction for All of Your Programs ..40 What Is Strategic Planning?.......................................................................................................... 40 All Else Flows from Strategic Planning ....................................................................................... 41 Developing Your Basic Strategic Plan ......................................................................................... 42
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PART II: PROGRAM PLANNING ............................................... 45 Chronology of Activities in Program Planning .............................. 47 General Guidelines ....................................................................................................................... 47 Use a Board Programs Committee ............................................................................................... 48
Importance of a Strong Marketing Orientation .............................. 51 Good Program Marketing Is Good Program Management........................................................... 51 Critical Role of Market Research ................................................................................................. 51
Developing Your Program Framework ........................................... 53 Assessment of Community Needs and Interests........................................................................... 53 Vision for Program Participants ................................................................................................... 56 Desired Outcomes for Program Participants ................................................................................ 57 Program Methods to Help Participants Achieve the Outcomes ................................................... 59 Outcomes Goals/Targets and Indicators Toward Hitting the Targets .......................................... 60 Outputs/Tangibles Produced by the Program Methods ................................................................ 62 Preliminary Program Logic Model............................................................................................... 62
Conducting Your Marketing Analysis ............................................ 64 Use a Board Marketing Committee .............................................................................................. 64 Target Markets and Their Unique Features .................................................................................. 67 Perceived Program Benefits to Each Target Market .................................................................... 68 Packaging ..................................................................................................................................... 69 Unique Value Proposition ............................................................................................................ 70 Naming and Branding................................................................................................................... 71 Pricing Analysis............................................................................................................................ 72 Know Your Competition .............................................................................................................. 73 What Current or Potential Collaborators Exist? ........................................................................... 74 Applicable Laws and Regulations ................................................................................................ 75 Intellectual Property – Copyrights, Trademarks and Patents ....................................................... 76 Summary Description of a Program ............................................................................................. 76 Remaining Marketing Analysis Tasks and Considerations .......................................................... 77 Marketing Goals ........................................................................................................................... 77
Planning Your Program Development............................................ 78 Guidelines for Estimating Your Program Costs ........................................................................... 78 Starting Your Program ................................................................................................................. 81
Planning Your Program Operations ............................................... 83 Advertising and Promotions ......................................................................................................... 83 Sales.............................................................................................................................................. 85 Customer Service.......................................................................................................................... 86 Delivery of Services ..................................................................................................................... 87 Personnel Management ................................................................................................................ 88 Materials (Supplies, Tools, Equipment and Facilities)................................................................. 89
Planning Your Program Finances................................................... 91 Key Financial Concepts................................................................................................................ 91 How to Develop a Summary Program Budget ............................................................................. 92
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PART III: PROGRAM EVALUATION........................................ 101 Understanding Program Evaluation..............................................103 Myths About Program Evaluation .............................................................................................. 103 What Is Program Evaluation? ..................................................................................................... 104 Reasons to Do Program Evaluations .......................................................................................... 104 Basic Ingredients for a Program Evaluation ............................................................................... 105 Major Considerations in Designing Your Program Evaluation.................................................. 106
Common Types of Program Evaluations......................................108 Implementation Evaluation – What Are We Actually Doing? ................................................... 108 Process Evaluation – How Does Our Program Actually Work? ................................................ 109 Goals-Based Evaluation – Are We Achieving Our Goals? ........................................................ 110 Outcomes Evaluation – What Are the Impacts On Our Clients?................................................ 112
Planning Your Program Evaluation...............................................114 Should You Hire a Program Evaluator? ..................................................................................... 114 Who Is the Audience for Your Program Evaluation?................................................................. 115 What Management Decisions Do You Need to Make? .............................................................. 115 What Evaluation Questions Should You Ask? ........................................................................... 117 What Information Is Needed to Answer Your Evaluation Questions?....................................... 118 What Are the Best Sources of this Information? ........................................................................ 119 What Are the Best Methods to Collect the Information? ........................................................... 119 How Will You Analyze and Interpret Your Results? ................................................................. 121 How Will You Report Your Evaluation Results?....................................................................... 122 Who Should Conduct Your Evaluation? .................................................................................... 123 Test Your Evaluation Plans ........................................................................................................ 124 Ensure Ethical Collection of Information................................................................................... 124 Another Approach to Evaluation: Participatory Evaluation ...................................................... 125
PART IV: ASSEMBLING AND IMPLEMENTING PLANS ............. 127 Role of Leadership .........................................................................129 Assembling Your Plans .................................................................130 Sections Common to Many Plan Documents ............................................................................. 130 Assembling Your Program Development Plan........................................................................... 132 Assembling Your Program Marketing Plan................................................................................ 133 Assembling Your Advertising and Promotions and Your Sale Plans......................................... 134 Assembling Your Program Operations Plan............................................................................... 135 Assembling Your Program Staffing Plan ................................................................................... 136 Assembling Your Nonprofit Business Plan ................................................................................ 137 Assembling Your Program Evaluation Plan............................................................................... 141 Assembling Your Fundraising Proposal ..................................................................................... 142 Have Your Plans Reviewed By Others....................................................................................... 146 Get Your Plans Approved........................................................................................................... 146
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Implementing Your Plans .............................................................. 147 Tools to Track the Status of Your Implementation .................................................................... 147 Capture the Learning from Your Implementation ...................................................................... 148
APPENDICES ............................................................. 149 Appendix A: Glossary .................................................................. 151 Appendix B: Free Resources for Nonprofits .............................. 157 Free Management LibrarySM ...................................................................................................... 157 Free Nonprofit Micro-eMBASM Organizational Development Program................................... 158 Organizations Assisting Nonprofits............................................................................................ 159 Free, On-Line Newsletters and Forums...................................................................................... 160
Appendix C: Tools to Measure Health of Nonprofits.................. 161 How to Select the Best Assessment Tool ................................................................................... 161 One Example of a Very Good Assessment Tool ........................................................................ 163
Appendix D: Worksheets ............................................................. 177 Assessment of Community Needs and Interests......................................................................... 179 Vision for Program Participants ................................................................................................. 182 Desired Outcomes for Program Participants .............................................................................. 184 Methods to Help Participants Achieve Desired Outcomes......................................................... 186 Outcomes Goals/Targets and Indicators Toward Hitting Targets .............................................. 188 Preliminary Program Logic Model............................................................................................. 190 Target Markets, Their Features and Benefits They Perceive ..................................................... 191 Packaging Analysis .................................................................................................................... 192 Unique Value Proposition Description....................................................................................... 193 Program Name Analysis............................................................................................................. 194 Pricing Analysis.......................................................................................................................... 195 Competitor Analysis................................................................................................................... 197 Collaborator Analysis................................................................................................................. 199 Laws and Regulations................................................................................................................. 200 Description of Service ................................................................................................................ 202 Summary of Remaining Marketing Analysis Tasks and Considerations ................................... 204 Marketing Goals ......................................................................................................................... 205 Program Planning Development................................................................................................. 206 Advertising and Promotions Planning........................................................................................ 210 Sales Planning ............................................................................................................................ 211 Customer Service Planning ........................................................................................................ 212 Delivery of Services ................................................................................................................... 213 Personnel Needs ......................................................................................................................... 217 Materials (Supplies, Tools, Equipment and Facilities).............................................................. 220 Summary Program Budget ......................................................................................................... 223 Planning Your Program Evaluation............................................................................................ 227
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Appendix E: Basic Methods in Business Research....................231 Planning Your Business Research .............................................................................................. 231 Overview of Methods to Collect Information............................................................................. 233 Ethics: Information Release from Research Participants............................................................ 235 Guidelines to Conducting Observations ..................................................................................... 236 Guidelines to Writing Questionnaires ........................................................................................ 239 Guidelines to Conducting Interviews ......................................................................................... 241 Guidelines to Conducting Focus Groups .................................................................................... 245 Guidelines to Completing Case Studies...................................................................................... 247 Should You Test Market Your New Program? .......................................................................... 248 Convenient Methods to Collect Information .............................................................................. 249 Major Sources of Trends Information About Nonprofits ........................................................... 250 Major Sources of Market Research Information ........................................................................ 250 Guidelines to Analyzing and Interpreting Your Research Data ................................................. 252
Appendix F: Major Methods of Communications, Advertising and Promotions ..............................................................................253 Formats for Your Message ......................................................................................................... 253 Methods to Distribute Your Message ......................................................................................... 255 Social Media and Social Networking ......................................................................................... 257 Promotional Activities through the Media.................................................................................. 260 Other Promotional Activities and Methods ................................................................................ 261
Recommended Readings – an Annotated List.............................263 Index................................................................................................269
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Table of Figures Figure I.1: Major Parts and Processes in the “System” of a Nonprofit Organization .......................... 7 Figure I.2: Organization Chart of a Typical Start-Up Nonprofit ....................................................... 11 Figure I.3: Organization Chart of a Typical Small Nonprofit with a CEO........................................ 12 Figure I.4: Organization Chart of a Typical Medium-to-Large Sized Nonprofit............................... 13 Figure I.5: Example of a Logic Model for a Nonprofit Program....................................................... 15 Figure I.6: Example of a Logic Model for a Community-Based Collaborative Program.................. 16 Figure I.7: Example of a Theory of Change ...................................................................................... 17 Figure I.8: Life Cycles of Organizations and Programs .................................................................... 21 Figure I.9: Organizational Life Cycles as Phases .............................................................................. 22 Figure I.10: Sample Questionnaire to Support the Acculturating Process......................................... 32 Figure I.11: An Analogy to Strategic Planning.................................................................................. 41 Figure II.1: Sample Board Programs Committee Work Plan ............................................................ 49 Figure II.2: Sample Board Marketing Committee Work Plan ........................................................... 65 Figure II.3: Sample Summary Program Budget Format .................................................................... 98 Figure E.1: A Comparison of Primary and Secondary Sources....................................................... 232 Figure E.2: Methods to Collect Information.................................................................................... 234 Figure E.3: Sample Information Release Form ............................................................................... 235
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