The Nationwide Strategic Plan for The Journey to One Million - Phase 2: Leadership, Linkage and Leverage

Transcription

1 The Nationwide Strategic Plan for The Journey to One Million - Phase 2: Leadership, Linkage and Leverage

2 Table of Contents I. Introduction pg. 3 II. BBBS Guiding Principles pg. 4 III. Executive Summary pg. 5 IV. Background pg. 9 V. The Journey- Phase 2: Leadership, Linkage and Leverage pg. 12 VI. Appendices pg. 18 2

3 Introduction The year is our 100 th Anniversary. Big Brothers Big Sisters is on a Journey to serve one million children nationally- 10 times the number we served in Our Journey to One Million represents a long-term process, building on our 100-year history and our strengths. This Journey defines a new scale and even a new purpose for Big Brothers Big Sisters. Our mission, as always, is focused on one-to-one mentoring. We are now driven by the huge number of children and families who need our life-changing program and the potential of our organization to have profound impact on our schools and neighborhoods. While Big Brothers Big Sisters is becoming a very different organization during this Journey, our roots and heritage will always shine through. This Nationwide Strategic Plan provides direction and priorities for the 460 BBBS agencies and the national organization for the second phase of our Journey, the period The plan has been developed by a cross-section of national and local volunteer and executive leaders. It was approved in draft form by the BBBSA Board of Directors in February, The Regional Officers and National Professional Association Leadership Council have helped refine the plan and they endorse it. We are now getting input and support from the entire BBBS network. We expect the BBBSA Board to approve and launch the plan in June at our National Conference and Centennial Celebration. BBBS agency board and staff leaders should focus on the proposed direction and priorities in this nationwide plan. All of us should agree in principle with this plan if we are going to accomplish our goals for this nation s children, schools and communities. The key plan elements include: A set of Guiding Principles, Five strategies for quality growth, A plan to invest in organization capacity building, and Proposed nationwide BBBS mission and vision statements. These plan elements are summarized in the next few pages and explained in more detail on page 12. 3

4 BBBS Guiding Principles As we continue our Journey, we affirm the principles that have served us for 100 years, that have propelled us to re-invent ourselves into a performance-oriented, growth organization and that are key to achieving our long-term goals. We will stay true to our mission, our unique brand of youth mentoring- one-to-one, professionally supported, safe mentoring with proven, measurable outcomes. There are a huge number of children and families in our country who need our program. Our vision is that children who need and want a mentor will have successful mentoring relationships, contributing to better schools and neighborhoods for all. We feel an urgent need to significantly increase the number of children we serve, especially those at high risk. Our children, schools and neighborhoods need us now more than ever. We value diversity and inclusion; our families, children, boards, staff and volunteers will reflect the communities we serve. BBBS will continue to stress and improve the safety and quality of our programs while we increase the number of children we serve. We are a performance-oriented organization striving to achieve results in terms of quality mentoring relationships, excellent efficiency and stewardship for our supporters, aggressive growth goals for the number of children served and cumulative impact for our schools and neighborhoods. We will continuously transform and improve every aspect of our business from the programs we offer to the way we recruit volunteers, deliver our services and raise funds for growth. The transformation of BBBS will be a continuous journey. We will be a learning organization, constantly striving for the next level of performance. BBBS will create lasting long-term value for our children and communities by investing in our organization s assets and capacities- our people, our brand and our ways of doing business. 4

5 Executive Summary This BBBS Nationwide Strategic Plan moves our organization to the second phase of our new vision and bold Journey to serve one million children. This journey, begun in 2000, builds on our century long mission for quality, results-oriented one-to-one youth mentoring. But it calls us to a new level- Think Big and Imagine the Results. The results for the children have always been evident; they were independently substantiated in the mid- 90 s in the PPV Impact Study. While we continue to focus on making a difference one child at a time, we are now striving to touch many more lives and to achieve a scale that will have demonstrable impact on our schools and neighborhoods. Phase 1: A New Strategic Plan, Initial Big Results Our goal for the first phase of this journey was to become a serious growth and performance-oriented organization. We did. We nearly doubled the number of children served in just four years. Our cost per match declined by 20% during this period. However, our revenues only grew 3%+ annually. We accomplished quality growth and positioned BBBS for the future with five strategies that began to transform the way we do business in every basic area: The programs we offer- BBBS in Schools became our second core program, reaching a new segment of children and volunteers and providing us with a lower cost program. We were also able to continue to grow our community program, our focus throughout our history. The way we recruit volunteers- We now recruit many Bigs wholesale through partnerships with corporations, schools and affinity groups that have complementary community service goals. The way we market and position our brand- We undertook BrandNewThinking about our volunteers as customers and decided to focus our brand essence on the universally understood concept of shared every day experiences which lead to friendship and impact for the children. This brand essence broadens our appeal and is relevant to many more adults. We launched our first national marketing campaign to attract volunteers under our new theme Little Moments. Big Magic. The way we deliver our programs and support services- We developed a performance-oriented Service Delivery Model (SDM) in order to have consistent, systematic, constantly improving program quality and efficiency and to lay the foundation for automating many of the matching and support processes. Over one half of our agencies are working on SDM implementation and we have begun to rollout an exciting new Agency Information Management (AIM) system. Our focus for revenue growth- We developed and began to implement a new fund development strategy to achieve the largest share of our growing revenue needs from individual lifelong mission donors, a historically under-developed but high-potential source for BBBS. 5

6 Phase 2: Leadership, Linkage and Leverage In the next phase of our Journey, our goals are to: Continue strong match growth, doubling again in four years to 440,000, Begin to grow our revenues by 10%+ annually, Maintain and improve our outcomes and child safety, while driving down our costs per match through program mix and operating efficiencies. In order to accomplish these goals, we will continue to pursue and refine the five growth strategies mentioned above. We have made the most progress in the expansion of BBBS in Schools, volunteer recruitment and marketing strategies. We will concentrate during the next four years on our two core functions- fund development and program/service delivery. These areas represent huge challenges to reaching our Journey s goals- raising the hundreds of millions of dollars we need and turning our small-scale agency program function into a large-scale performance-oriented operating business with many successful partnerships. Success in these areas requires huge new organizational capacity. This plan includes investments to develop critical organization capacities in three areas, the three L s: Leadership- We will develop passionate, bold executive and board leaders who are extremely competent at their respective core functions- executives who can set the direction and lead their teams and boards who can open doors and assist in acquiring the resources we need. Linkage- We will link our agencies and our national office into an effective network (internal linkage) and build our base of volunteers, donors, and alumni into a large community of lifelong supporters of our mission (external linkage). Leverage- We will develop a new level of operating efficiency and effectiveness through 1) a powerful brand, 2) strong partnerships and 3) a new agency operating model incorporating a large-scale school based mentoring program, performance management systems, technology and a more consolidated agency configuration. These investments will accelerate our progress in becoming a more integrated, unified nationwide organization. In addition, we will adopt a common set of guiding principles, maintain our focused mission, articulate a new vision of societal impact and be clear how our organization will continue to evolve. We will all come together and each of us will be part of something Big! 6

7 The Big Brothers Big Sisters Mission is to help children reach their potential through professionally supported, one-to-one relationships with measurable impact. The Big Brothers Big Sisters Vision Successful mentoring relationships for all children who need and want them, contributing to better schools, brighter futures, and stronger communities for all. 7

8 The Evolution of the BBBS Organization Our nationwide organization has gone through many changes in 100 years. It began as a gender specific local grassroots movement, spread to most cities and communities across the country, formed national offices to establish standards and share practices, merged into one youth mentoring entity serving both boys and girls, and has begun to become a more integrated network of agencies driven to take our life-changing program to many more children. Our organization dynamics and management approaches must continue to evolve in order to accomplish our goals. In the next four years, we will accelerate our change: From being internally focused to externally focused on our customers, clients and supporters and the best of class organizations in the non-profit sector, who are our competitors for resources- donors, volunteers, board members and staff. From a federation of independent affiliates to an enterprise of interdependent, interconnected agencies with one mission, vision, and set of guiding principles operating as a wired network sharing information and resources. From nationwide decision making that tends to be slow, political and constituent-based to a dynamic, fact-based process based on shared principles and trust. From nationwide leadership based on structure to issue- and expertise-oriented leadership through teams of individuals from all parts of the organization. It is important that the roles of each part of the nationwide organization be clear. The roles of the local BBBS agencies are: Carry out the BBBS mission and vision in their service area. Deliver a high quality mentoring program and services to children in their local community consistent with the requirements and standards of BBBSA. Raise the necessary funds and develop donors in the local service area. The roles of BBBSA are: Establish the requirements and standards. Build and protect the brand. Enhance agency performance through management systems and information flow. Provide shared agency support services, especially training and technology. Raise funds and build federal public policy to support these shared services and provide funds to agencies. 8

9 Background Some readers will want and need background and historical context for this plan. This section provides a brief history of the first 95 years of BBBS and a snapshot of the first phase of our Journey, including this year, our Centennial. The First 95 years: Throughout the history of Big Brothers Big Sisters, our program has been based on one conceptcaring volunteer adults matched one-to-one with children to share experiences and develop positive youth development outcomes. The idea for Big Brothers and for Big Sisters began in major industrial centers in the early 1900 s. Caring adults intervened to prevent the risks of that time, such as surging rolls of reformatories, caused by the strains of the Industrial Revolution and the tide of immigration. People from all walks of life are drawn to the BBBS mission. That was the case from the beginning when organizers of initial chapters included a clerk of children s court in New York City, a businessman in Cincinnati and aristocratic women in Manhattan. BBBS programs sprang up independently around the industrial Northeast and Midwest. The founders must have seen what they knew in their hearts- these caring adults make a difference in the lives of the children; intervention makes much more sense than punishment. Our roots took hold and we have never wavered from this core concept. Big Brothers and Big Sisters agencies sprang up all across the USA and by the 1950 s were established in most major urban areas. Leaders from the local agencies formed separate national organizations of Big Brothers and Big Sisters to support the local efforts. In the 1970 s, Big Brothers and Big Sisters merged into one organization nationally. Mergers occurred locally, and programs continued to be created in all localities. By the 90 s, over 500 BBBS agencies existed serving over 5,000 communities. BBBS became the only national youth mentoring organization and our one-to-one mentoring program developed into one of the largest social services in our country. A seminal event occurred in the mid 90 s when the leaders of BBBSA agreed with Public/Private Ventures to conduct an Impact Study to measure the results for the at-risk children who had a Big Brother or Big Sister. The proof of positive impact for youth was so persuasive that it propelled Big Brothers Big Sisters to plan an unprecedented move toward growth. The results of this study were Big and as they say, the rest is history. By the late 1990 s, we were ready to embark on a new journey. Think Big, Imagine the Results The Journey to One Million Matches Under the leadership of Judy Vredenburgh, our new CEO, the BBBSA board and many local agency leaders, BBBS decided to undertake an exciting and ambitious journey in the first decade of the new millennium. The new vision was that every child who needed and wanted a Big should have one. 9

10 We challenged our organization to Think Big- serve ten times the number of children by the end of the decade, one million by Imagine BBBS reaching many times the number of children and making a significant, measurable impact on schools and communities, as we grow our life-changing program to scale. In some organizations, this charge could have fallen on deaf ears. But at BBBS, the passion for helping children led our people to accept the challenge of this rather audacious goal. We needed a plan that would transform our 95-year old grass roots social service into a powerful, unified national organization, a new blueprint for all aspects of our organization. We needed evidence that we could become a growth business after almost 100 years. We launched that plan and achieved the initial Big results in the first phase of our journey, This first phase was launched with a new Strategic Growth Plan, adopted by the BBBSA board in June of We are very proud of our progress and results. The Journey - Phase 1 A New Strategic Plan, Initial Big Results In the last four years ( ), we have accomplished some great nationwide results. We have started to become a performance-oriented growth organization and have begun to transform the way we do business. We have also gained confidence in our ability to achieve our Journey s goals. We have nearly doubled the number of one to one matches. We have consistently grown at a double-digit rate. Big Brothers Big Sisters in Schools has accounted for most of this growth, resulting in a second core program that serves as many children as our traditional community program. This program reaches a new segment of at-risk children and has lower recruiting and service delivery cost where it has achieved scale. We have found some of the keys to attracting many more volunteer Bigs by treating them as customers, partnering with volunteer-rich organizations, offering more convenient program options (BBBS in Schools) and launching our first ever national marketing campaign. Donated media coverage of $40 million resulted in over 70,000 volunteer inquiries in the campaign s first year. Our cost per match has declined by 20% primarily due to the growth of BBBS in Schools and to greater economies of scale, giving us the capacity to serve more children with our current resources. Fourteen of our agencies, representing various sizes and locations, helped us develop a new performance-oriented Service Delivery Model resulting in higher quality and greater efficiency. More than 200 of our agencies are already adopting the model. We embraced a new fund development strategy focused on individual, lifelong mission donors. We adopted a systematic approach to leadership giving, Raising More Money, which 100 agencies have begun to implement. Independent agencies have come together around a shared vision and strategic plan to develop and implement these nation-wide initiatives and to bind us into a more powerful and interdependent network. Pulling together, certain myths about why we couldn t serve more children are fading away. Our larger agencies that once dreamed of 1,000 matches now have passed that mark and have plans for 5-10,000. We are finding many more volunteers. We are achieving high quality and strong growth. 10

11 We cannot, however, sustain our recent strong program growth without higher revenue growth. Our Centennial year, 2004, is a time to celebrate our past, but more importantly to make Big progress in fund raising. This is a unique opportunity to raise our visibility, stature and support to a new level. Our Centennial: A Time to Celebrate and Accelerate The 100 th Anniversary of Big Brothers Big Sisters is a time to celebrate our rich history. Our original mission has endured and we have had an impact on so many lives. Our Centennial theme is to: Celebrate the lives of all the Bigs, Littles and families that have shared experiences in the first 100 years of Big Brothers Big Sisters, demonstrating the joy, impact and relevance of our program and communicating the essence of our brand- Little Moments. Big Magic. During the Centennial, BBBS will raise our visibility and stature and have the opportunity to demonstrate our new focus on individual lifelong mission donors. Our Centennial gives us the opportunity to take thinking Big to a whole new level for the purpose of accelerating our fund raising and launching several new initiatives, which include: An online reunion of our alumni Bigs and Littles in partnership with Yahoo!, and initial cultivation of these excellent prospects for lifelong support, the creation of a treasure of alumni match stories and results, using them to establish a Big public relations presence in support of our national, major market and local efforts for donor development and volunteer recruitment, a direct response fund raising initiative to attract hundreds of thousands of small online donations to complement the base of leadership and major gifts we are developing at the local and national levels, our second national marketing campaign with the Ad Council, focused on increasing the awareness of what we do and gaining supporters in our Centennial year, donors as well as volunteers, new corporate sponsorships that raise more $ s and support our marketing initiatives, an aggressive lobbying effort in Washington to increase federal funds for mentoring five-fold, and, a nationwide Centennial campaign to bring in five, six and seven figure multi-year gifts. This focus on fundraising in our Centennial continues into the next phase of our Journey. 11

12 The Journey- Phase 2 Leadership, Linkage and Leverage The BBBS Nationwide Strategic Plan for calls for continued quality growth which we will accomplish through a continuation and refinement of our strategies and through new investments for building the key organizational capacities- Leadership, Linkage and Leverage. Our Goals Our major goals for this planning period are to: 1) Double the number of children we serve again in four years, reaching 440k matches by 2007, 2) Achieve a 10% annual revenue growth, reaching $300 million nationwide by 2007, 3) Maintain our positive outcomes (POE) and develop a comprehensive set of quality measures (Becoming performance oriented requires that we measure all aspects of quality more consistently throughout BBBS.), 4) Reduce our cost per match through continued improvement in our program mix and operating efficiencies Children Served (000) Revenue (mm) $209m $225m $248m $273m $300m POE/Quality Implement consistent nationwide quality measures and set goals Refining our Quality Growth Strategies As mentioned in the description of our Strategic Plan, we set out to transform every aspect of our business. There are five strategies that have led to quality growth. Each of them, with certain refinements, is key to future growth. 1. BBBS in Schools- a second core program and the source of most of our recent growth targeting a large number of children in need and reaching a huge, different segment of volunteers. 2. Volunteer rich partnerships- wholesale recruitment of volunteers, mostly for BBBS in Schools, through partnerships with corporations, high schools and colleges, churches and various affinity groups. 3. Building our brand- improving the awareness and relevance of the BBBS brand so that we can attract large numbers of donors and volunteers. 12

13 4. Performance management systems- systems for measuring ongoing performance against our goals and for developing and constantly improving operating models for the two core functions of BBBS agencies- program/service delivery and fund development. 5. Individual fund raising- a comprehensive plan for developing a large base of lifelong, mission donors of all sizes that becomes our primary source of revenue. In the next phase of our Journey we will continue to focus on and refine these quality growth strategies. 1. BBBS in Schools BBBS in Schools will continue to be our major growth opportunity. Overall, our growth will come more from greater penetration of individual schools than from increasing the number of schools. We plan to strengthen our school relationships and have greater school impact by increasing the percentage of their children we serve. We expect to penetrate and build critical mass in the major urban school districts, where our progress generally has been slower. Partnering with schools will become a core BBBS competency. A major impact study with P/PV is under way as part of our efforts to develop best practices and substantiate the impact of our school-based program. We expect our community program to continue to grow through the marketing, recruitment, fund development and operating strategies outlined in this section of the plan. 2. Volunteer Rich Partnerships We have made significant progress recruiting students as Bigs from high schools which view BBBS as a great way to meet their community service goals. We expect greater growth in each of the other targeted segments- corporations, African American and Hispanic groups, seniors and churches/religious organizations. Investments are necessary to build the organizational capacity for partnering at the national and local levels with organizations in these segments. 3. Brand Marketing Our initial national marketing initiatives focused on volunteer recruitment. Now, we are making an important shift in support of our new fund development strategy. We need to have many more donors than volunteers. It s going to be a challenge. Donor research tells us that most people understand what BBBS does, one-to-one youth mentoring, have high regard for our brand and know we need volunteers. But very few know we need money or consider BBBS as a potential cause to support financially. We have to overcome years of not asking. In order to accomplish this shift, we will focus our brand marketing on becoming relevant to a much larger audience, demonstrating that they should and can support BBBS. We ve confirmed that Little Moments, Big Magic (the universal concept of shared experiences between an adult and child with its impact on positive youth development) resonates with donors as well as volunteers. In order to market to donors, we have to broaden our brand message so that prospects know that there is a professional organization that makes and supports the matches and that they can impact the children in their community by donating to BBBS as well as volunteering. 4. Performance Management and a Service Delivery Model We are developing performance management systems, standardized processes and automation for the two critical functions of BBBS agencies - the Program/Service Delivery function that enrolls, matches and supports the Bigs and Littles and the Fund Development function that raises the money. We have developed and piloted the standardized performance measures and processes for the program function, our Service Delivery Model. Now, we are transforming the 13

14 way this function works in all BBBS agencies. Soon, we will have nationwide measures of quality and efficiency. We have begun to rollout a technology solution (AIM) that will give our program staff the automation they need so that they can focus on creating and supporting an efficient, quality program for the children and volunteers. We are now beginning to address management systems, standardized processes and automation for Fund Development. 5. Fund Development Our new fund development strategy focuses on building a large base of individual, lifelong mission donors. We will acquire and cultivate individual donors in three segments and support these efforts with synergistic events that help us attract, engage and thank our supporters. Currently, events and individual giving comprises 35% of our nationwide revenues. We expect these sources to grow to 43% by Of the $91 million increase reflected in our goals for nationwide revenues during these four years, we expect that $60 million will come from individuals and special events. Other sources will continue their single digit annual growth rates, except for United Way, which will remain flat. The three individual donor segments will give every adult an opportunity to be a part of the BBBS community, giving according to his/her means. - Direct-response donors, making smaller donations (below $1,000 and mostly $ annually), acquired and cultivated centrally, primarily through online media. Alumni are one of the prime prospects, as well as other targeted leads from our web site, our marketing partners and qualified prospect lists. The vast majority of these funds will be distributed back to the communities in which the donors live. And the agency in the community where the donor or alumni lives will be given the contact information in order to engage them and cultivate them in person. - Leadership gift donors, making annual donations of $1,000+ and multi-year commitments. These donors will primarily be developed locally, employing the Raising More Money system. These donors are acquired and cultivated in small groups and asked at an annual event. - Major gift donors, giving a minimum of $10,000 annually at the local level and $25,000 annually at the national level. The donors are cultivated individually, primarily through coordinated local/national efforts. A nationwide Centennial fund raising campaign will accelerate major donors for Big Brothers Big Sisters. The critical success factors for this fund development strategy are board, CEO and fund development staff leadership, the recognition that this is priority #1 and systematic processes supported with automation. All these factors are addressed in our capacity building investment priorities- Leadership, Linkage, and Leverage. 14

15 Building Leadership, Linkage and Leverage The major initiatives we will undertake to build these essential long-term capacities in the next four years are as follows: I. Leadership Leadership matters most - bold, highly competent and diverse, reflecting the communities we serve. Executive Leadership - We will invest in the development of our executive leaders, identifying the core competencies for agency CEO s and establishing a nationwide, comprehensive program for developing them. We will establish a similar process for leadership of the program and fund development functions. In addition, we will continue to develop the leadership capacity of our national staff. Board Leadership - We will institute a common vision for the roles and competencies of our local and national boards and will give them the direction and support they need to develop their capacity. II. Linkage Internally we will connect agencies into a more integrated network with - Common mission and vision statements and a set of guiding principles. - Information exchanges for staff and board peer groups, regionally and nationally, for similar size agencies. These peer group exchanges build on the successful Large Agency Alliance (a peer group of the 30 largest agencies with staff and board participation). - An improved internal communication and resource system relying heavily on online technology, the Agency Development staff (regional BBBSA staff) and more effective regional leadership structures. - Revamped and updated national standards, affiliation agreements and agency review process to reflect our current focus and way of doing business. - Performance reporting and peer comparisons as well as an overall scorecard, at least annually, for agency board and executive leadership. Externally, we will build a community of supporters- donors, volunteers, alumni and partnerslinked to BBBS even when they change locations and linked with one another if they choose. - We will utilize online media to complement local agency in-person efforts to communicate with our supporters Also, we will build a nationwide web-based system for contact relationship management 15

16 - We will have one integrated set of agency and national web sites that make it easy and seamless for all constituents to find their way among the parts of BBBS. - Our agencies will promote the brand, BBBS, more than the name of the territory, counties, and towns they serve. - We will establish the nationwide systems and ground rules for sharing donors, partners, alumni and volunteers. No one of us owns any one supporter. If they support our cause, they should decide where and how they contribute and we all should feel honored. - BBBS will link with other youth serving organizations and demonstrate our leadership position. III. Leverage The Brand - BBBS will continue to develop a relevant and powerful brand at the local, major market and national levels for purposes of attracting donors and volunteers. We expect to continue to be an Ad Council cause, to build a strong PR capability, to use interactive online media to help build a national community and to use major marketing partnerships to assist in accomplishing our objectives. Partnerships - We will build stronger, deeper partnerships with schools, corporations, churches and affinity groups locally and nationally for purposes of supporting our mentoring programs. A New Agency Operating Model - We believe that leadership is the key agency performance factor. We also believe that our operating model- factors such as programs, performance management systems, training, technology and agency configuration/scale- makes a huge difference. - BBBS in Schools. This program will continue to be our lead growth program. It will achieve scale in local markets and school systems and will represent 60%+ of our matches by At scale, this program will have significantly lower per match cost than our community program. - Performance-based Management Systems. We are creating performance based, systematic processes for the core functions of program/service delivery and fund development. We expect all agencies to adopt the SDM during this plan. Over 200 are already in process. We are confident that this model will help agencies increase their customer yield (the percentage of those who apply that get matched) and their match retention, improve outcomes and customer service and reduce costs. Raising More Money is the starting point for systematic fund development of individual donors. - Technology - The SDM technology solution (AIM) will be fully implemented in all major markets and 200+ of our agencies during this period. We also will select a fund development solution(s) and implement it at the national office and a similar set of agencies. 16

17 - A More Consolidated Agency Configuration - We will develop much larger agency scale through growth and consolidation. Agency size and related dedicated, specialized leadership has huge impact on revenues, growth, and costs. We are confident that we can consolidate certain functions while keeping service delivery local. We plan to continue to consolidate agencies in the top 50 markets. With growth and consolidation, average agency size in these markets will increase three-fold and there will be one hub agency for each market. Ten to fifteen states that are less populated and in which the BBBS network is fragmented will consolidate into one statewide agency or into regional agencies with 6 or fewer agencies per state. These state consolidations increase average agency size by 5+ times. The appendices provide historical results and data that substantiates the leverage from agency size, program mix, improved service delivery/customer yield and match retention. This Nationwide Strategic Plan provides a focus for leadership throughout the BBBS organization. It outlines our mission, vision, guiding principles, quality growth strategies and the capacity building investments we need to make for the next three years. We expect our entire organization to come together behind this plan for the benefit of this nation s youth, schools and communities. We are all a part of something Big! 17

18 STRATEGIC PLAN APPENDICES I. Nationwide Results II. Agency Performance Drivers 18

19 I. Nationwide Results: Children Served Revenue Cost per Match 19

20 CHILDREN SERVED Program (,000) (,000) +/- % (,000) +/- % (,000) +/- % (,000) +/- % Community School+Site Total CORE % % 101 1% 107 6% % 80 90% % % % % % %

21 REVENUE $Rev $Rev % Growth $Rev % Growth $Rev % Growth Agency $165,400,000 $182,600,000 10% $187,900,000 3% $191,500,000 2% National $17,300,000 $16,000,000-7% $16,300,000 2% $17,900,000 10% Total Rev $182,700,000 $198,600,000 9% $204,200,000 3% $209,400,000 3% Notes: Agency Revenue is total revenue minus grants from National 21

22 COST PER MATCH Cost/Match $1,110 $1,040 $960 $900 Change from Prev Year -6% -8% -6% School+Other site matches % of Total 31% 45% 50% 52% Notes: Cost = Total Agency Costs divided by CORE Matches (Community + School + non-school Site) 22

23 23

24 II. Agency Performance Drivers Commentary Agency Size Program Mix Customer Yield and Match Retention

25 Agency Performance Drivers This section of the appendices quantifies factors that drive agency performance. We believe that leadership and talent is the number one factor. These other business factors also have a significant impact. Agency Size Large agencies have significant advantage and are performing at a higher level. - They are growing faster - Their unit costs are lower - They have more diversified revenue sources, developing more funds from foundations, corporations and individuals. - They have higher level and dedicated talent in the fund development and administrative areas yet they spend a smaller percentage of their $ s on there areas. Therefore, they spend a higher % of their funds on serving children as compared to smaller agencies. 25

26 Program Mix We do not report agencies cost per match by program on a nationwide basis. However, average per match cost for the combined community and school matches varies directly with the absolute and relative size of the BBBS in Schools program. Select agencies that have grown BBBS in Schools to scale have achieved a per match program cost that is as much as 50% lower than community matches. 26

27 Service Delivery/Yield/Match Retention By increasing yield and match retention through the SDM and AIM, we simultaneously improve our quality and reduce our cost per match. The new Service Delivery Model has enabled agencies to increase their volunteer yield from 20-30% to 50%. Increasing match retention will take longer but we are confident that it can be done. First year attrition is exceptionally higher - over 40%. Some of the attrition is caused by transient customers but a substantial % is controllable. We estimate that almost 50% of our cost are in making the matches (customer relations and enrollment and match) partially due to: - low customer yield - match turnover 27

28 CHILDREN SERVED BY AGENCY SIZE Quintile TOTAL # Matches Largest 20% -> -> -> Smallest 20% 2002 Total Matches 102,400 37,300 21,300 13,000 3, ,100 Average 1, Growth 24% 17% 12% 10% 12% 20% 2003 Total Matches 115,700 42,800 24,700 15,000 6, ,775 Average 1, Growth 12% 10% 10% -1% -13% 9% Notes: Data based on 90% of agencies reporting

29 COST PER MATCH BY AGENCY SIZE Quintile Average 2002 Cost per Match $910 $880 $1,010 $1,310 $1,320 $960 % change from % -8% -2% -4% -7% -8% 29

30 REVENUE SOURCES BY AGENCY SIZE Agency SIZE by Revenue $0- $75K $76- $150K $151K- $250K $251K- $500K $500- $1.0M $1.0M- $2.0M $2.0M+ TOTAL 2002 Revenue Source: Events 32% 30% 28% 25% 29% 23% 25% 27% United Way 29% 27% 28% 28% 20% 16% 17% 21% Government 14% 18% 22% 22% 21% 21% 8% 17% Foundations 6% 10% 10% 11% 13% 16% 19% 14% Individual 7% 6% 6% 6% 6% 8% 11% 8% Corporate 4% 2% 2% 3% 4% 6% 12% 6% Other, Div/Int 8% 7% 4% 5% 7% 10% 8% 7% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 30

31 EXPENSE CATEGORIES BY AGENCY SIZE Agency SIZE by Expense $0- $75K $76- $150K $151K- $250K $251K- $500K $500- $1.0M $1.0M- $2.0M $2.0M+ TOTAL 2002 Expense Category: Program 56% 62% 65% 72% 74% 72% 76% 68% Administration 25% 22% 20% 15% 15% 16% 13% 18% Fund Development 19% 16% 15% 13% 11% 12% 11% 14% TOTAL 100% 100% 100% 100% 100% 100% 100% 100% 31

32 PROGRAM MIX COST PER MATCH ANALYSIS Name N CBM SBM OSB TOT Expenses Cost/Match % Site Cost/Match > $1500 Group Total 63 13,700 3,900 1,300 18,800 $35,600,000 $1,890 27% Group Average $566,500 Cost/Match $ Group Total ,400 13,300 1,400 43,100 $52,900,000 $1,230 34% Group Average $504,200 Cost/Match $750-$1000 Group Total 99 23,100 18,000 2,000 43,200 $37,900,000 $880 46% Group Average $382,900 Cost/Match $500-$750 Group Total ,000 25,100 3,800 53,000 $33,700,000 $640 55% Group Average $343,700 Cost/Match $1-$500 Group Total 70 8,800 25,300 3,400 37,400 $12,700,000 $340 77% Group Average $181,000 32

33 GRAND TOTAL ,331 81,749 10, ,628 $137,207,775 $780 52% Total Average $368,838 33

34 MATCH ANALYSIS "ACTIVE MATCHES" AND "TOTAL CHILDREN SERVED" Community School + Site TOTAL (,000) (,000) % (,000) % (,000) (,000) % (,000) % (,000) (,000) % (,000) % ACTIVE at Beginning % 69 7% % 50 30% % % NEW % 38 5% % 64 3% % 102 4% CLOSED % 35 11% % 57 12% % 92 11% Closure Rate 36% 31% 33% 54% 51% 50% 44% 41% 41% ACTIVE at End 64 Total Children Served % 72 4% % 57,098 15% % 129 9% % 107 6% % % % % Note: "Total Children Served" equals "Active at beginning of Period" PLUS NEW matches or "Active at end of period" PLUS CLOSED matches. 34

35 PROGRAM MIX BBBS COST STRUCTURE "Function" Annual Program Costs/Match Management/Administration $155 Fund Development $115 Program Customer Relations $70 Enrollment & Match $270 Match Support $350 Program TOTAL $690 TOTAL COSTS $960 35