SOCW 6070 WK 5 Discussion: Addressing Change
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Administration in Social Work
ISSN: 0364-3107 (Print) 1544-4376 (Online) Journal homepage: https://www.tandfonline.com/loi/wasw20
From Needs-Based Segmentation to Program Realignment: Transformation of YWCA of Calgary
Donna S. Finley , Gayla Rogers , Michael Napier & Jill Wyatt
To cite this article: Donna S. Finley , Gayla Rogers , Michael Napier & Jill Wyatt (2011) From Needs-Based Segmentation to Program Realignment: Transformation of YWCA of Calgary, Administration in Social Work, 35:3, 299-323, DOI: 10.1080/03643107.2011.575346
To link to this article: https://doi.org/10.1080/03643107.2011.575346
Published online: 31 May 2011.
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Administration in Social Work, 35:299–323, 2011 Copyright © Taylor & Francis Group, LLC ISSN: 0364-3107 print/1544-4376 online DOI: 10.1080/03643107.2011.575346
From Needs-Based Segmentation to Program Realignment: Transformation
of YWCA of Calgary
DONNA S. FINLEY Framework Partners, Inc., Calgary, Alberta, Canada
GAYLA ROGERS Faculty of Social Work, University of Calgary, Alberta, Canada
MICHAEL NAPIER Framework Partners, Inc., Toronto, Ontario, Canada
JILL WYATT United Way of Calgary & Area, Calgary, Alberta, Canada
This article delineates how a social service organization was transformed, enabling the transition from severe financial strain to healthy financial sustainability, now eight years running. By applying a client needs-based segmentation that informed a pro- gram and service realignment, the YWCA of Calgary significantly improved its program and service delivery.
KEYWORDS needs-based segmentation, program and service alignment, process improvement, strategy implementation, perfor- mance improvement, organizational effectiveness, transformation
In memory of Judi Osborne, YWCA of Calgary Board Chair, 2001–2003. Judi had the vision, courage and foresight to lead YWCA of Calgary to a whole new level of performance and impact in the community.
The authors would like to recognize the contributions of Mario Siciliano, formerly COO of YWCA of Calgary.
Address correspondence to Gayla Rogers, Faculty of Social Work, University of Calgary, 2500 University Drive NW, Calgary, Alberta, Canada T2N 1N4. E-mail: [email protected]
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300 D. S. Finley et al.
INTRODUCTION
Segmentation is a concept often used in public and corporate planning that can also be applied in a nonprofit context. Specifically, nonprofit organiza- tions can benefit by segmenting their stakeholders (including clients) into needs-based clusters to more effectively serve them. This paper describes how in 2001, a struggling nonprofit organization, the YWCA of Calgary,1
implemented a segmentation model based on the needs of its clients to strategically realign its programs and services, and emerged as a leading social services organization in the community.
Segmentation, in this context, involves arranging the current and poten- tial clients of an organization into clusters according to their current and evolving needs. These clusters of needs underpin their motivations for using various programs and services. In the case of the YWCA of Calgary at the time of this strategic planning initiative, multi-barriered women2 made up the largest demographic client segment (72%). Historically, the YWCA of Calgary approached serving these women with a standard menu of services based on what the organization traditionally offered rather than what the women may have actually required. Programs and services were typically designed around funding availability, not necessarily around the organi- zation’s strategic direction and clients’ needs. The array of programs and services being offered in 2001 did not evolve from actual client needs and, therefore, over time the programs increasingly underserved the YWCA of Calgary’s client base. These misaligned programs and services were not com- prehensive, lacked coordination and integration, and had unclear financial viability. Increased demand for services by clients, fierce competition for dol- lars, the search for a niche in the sector, and the hiring of a new CEO created the conditions required for transformational change within the organization. Success was quickly realized. By 2003, post-program realignment, the YWCA of Calgary was stabilized and the threat of financial disaster from 2001 was averted.
This paper describes the types of segmentation used by the YWCA of Calgary as the basis from which realignment of core programs and services could occur. It offers a model for linking such a strategic framework to operational priorities as the means for making decisions about expanding, contracting, creating, or outsourcing programs and services. In the subse- quent sections, this paper reviews the relevant literature, presents the needs- based segmentation applied by the YWCA of Calgary, discusses the program realignment that occurred, and assesses the success of this organizational transformation.
Transformation of YWCA of Calgary 301
SEGMENTATION LITERATURE REVIEW
Market Segmentation
Segmentation involves assessing and then clustering a group of individuals (e.g., clients, members, funders, partners) based on a predetermined set of criteria. There are multiple forms of segmentation, each of which provides value toward strategy setting and/or operational planning.3
Traditionally, social service organizations segment their clients by demo- graphics such as age, income, ethnicity, gender, and health status. This observation is consistent with McCarthy and Jinnett (2001), who found that other types of nonprofit organizations typically define their client groups geographically, demographically, or by some behavioral character- istics. These methods of classifying clients, while useful at an operational level, cannot account for the increasing complexity or the evolving nature of clients’ situations. Furthermore, these models do not enable a strategic overview of the multiplicity of products and services offered within a given community.
In the past 40 years, segmentation has taken many forms, each specific to its intended use, and each with a different level of operational or strate- gic intensity. Frank, Massy, and Wind (1972) are among the first researchers to develop a taxonomy of segmentation in the nonprofit sector. This tax- onomy was set up as a matrix, which is based on variables either directly measurable (observable) or inferred (unobservable), and variables indepen- dent of or related to goods and services (general and product-specific, respectively). While this method can be effective for segmenting clients demographically based on service use, it is operationally focused because it has limited application when reconceptualizing a full range of service offerings.
In a later paper, Robbins and Robbins (1981) use a frequency-of- participation segmentation method. This model allows organizations to segment participants into three common categories: those not disposed to participate, those disposed to participate but are not currently doing so, and those already participating. While this method allows an organization to develop strategies to increase participation, it does not determine why people are participating. Therefore, developing strategies to target one of these three groups will be challenging without knowing what motivates one’s decision to participate.
Todd and Lawson (2001) use attitude, interest, and opinion variables to segment patrons in the arts; these variables focus on demographics and statistics. While this method provides valuable insight as to who is attend- ing events or partaking in services, it does not directly inform strategy; it
302 D. S. Finley et al.
does not help us understand who is not attending and why. This method does, however, help in defining sub-segments and setting tactics that support strategic outcomes.
After employing a straight statistical demographic segmentation and only finding semi-interesting results, Pawson and Troy (2004) investigated an aesthetic approach to segmentation. The authors use product-specific unobservable (inferred) variables and are largely concerned with the aes- thetic appeal of organizational offerings. Sewall (1978) claims that aesthetic interest is a key decision-making factor when deciding whether to attend an event/program. Therefore, segmentation based on preferences is intuitive as consumer reactions to product and/or service attributes are not indicative of functionality.
Clopton, Stoddard, and Dave (2006) build on preference-based model- ing by conducting a survey of patrons of arts events. The survey contained basic demographic questions in addition to questions on preferences. Data were used to segment customers based on their relative prefer- ences for the arts in general. This allowed the authors to compare and contrast how each of the segments behaved based on the other survey questions. Furthermore, the authors tested the significance and nature of the relationships between the market segments that emerged and typi- cal demographic variables. While the comparison with demographics is interesting to the organization, it is what can be learned from the preference- based segments that effectively repositions the strategic direction of the organization.
Similar to preference-based segmentation is a needs-based segmen- tation model described by Rogers, Finley, and Galloway (2001), who explained how social service organizations can benefit from conducting and implementing a needs-based segmentation approach. Using this seg- mentation method and learning from other nonprofit sectors, such as the performing arts, social service organizations can better serve the commu- nity. Furthermore, the organization’s staff, board, and volunteers will be better equipped to meet the current and evolving needs of clients. As Greengrove (2002) described, needs-based segmentation is fundamentally a strategic process that drives product and service development, and brand strategy.
Performance-based segmentation is defined by fundamental needs that may or may not be explicitly expressed by the client. Nonprofit organizations typically struggle to define who their clients are and are generally pre- occupied with chasing funding. Identifying and understanding core needs enables the organization to take the next step: identify the clusters of client needs the organization is best equipped to serve and the clusters of client needs that are better served by (or jointly with) other service providers.
Transformation of YWCA of Calgary 303
Needs-Based Segmentation
The reason for employing a needs-based segmentation approach is that the needs that individuals would like to have satisfied are “the basic reasons for the existence of true market segmentation” (Haley, 1968).
In order to best serve their clients and achieve their mandate while doing so, nonprofit organizations must think and act with strategic intent. A needs-based segmentation allows service providers to understand the groups of clients it currently serves, should serve, and can best serve based upon clients’ and potential clients’ current and evolving needs, backgrounds, motivations, and expectations, as well as the organization’s desired future state.
Such a needs-based segmentation approach was employed by Finley, Gralen, and Fichtner (2006) to pull a performing arts organization out of bankruptcy protection and reposition it into a sustainable organization4 that maintains a sizable surplus. Needs-based segmentation guides the design, growth, and closure of programs, services, and processes to meet the targeted needs of clients. Figure 1 is a depiction of the movement from demographic-based to needs-based segmentation.
Typically when organizations develop strategies, they focus on demo- graphics and firmographics (demographics of organizations or “firms,” rather
Demographics • Age • Gender • Language • Geography
Firmographics • Size of organization
• Sector • Size of client-
base
Behaviours • Convenience
sensitivity • Quality
sensitivity • Price sensitivity
Needs-based • Security • Power • Esteem • Confidence • Tangible
resources
Powerful in defining sub-segments and setting tactics.
Powerful in setting strategy and designing programs and processes.
Traditional Focus
FIGURE 1 Process from demographics to needs-based segmentation (color figure available online). Source: Framework Partners Inc. planning tool.
304 D. S. Finley et al.
than of people). When using demographics and firmographics to develop strategy, organizations become focused on “doing things right,” and out- comes tend to be operational details. Organizations can also segment their markets by behaviors (e.g., what do my clients consider when deciding to access my program or service?). However, even behavioral segmenta- tion tends to be tactical; it informs the implementation of the organization’s promotional strategy and does not contribute to that strategy’s development.
Using needs-based segmentation, organizations can think of the clients they serve and could serve (prospective clients) at a higher level—“are we doing the right things?” The needs-based segmentation approach helps define an organization’s target market, or more specifically, target client. A primary target client is a segment of the market that the organization can best serve with its programs and services, which are provided with the highest level of expertise and/or lowest cost of implementation. An organization’s secondary target client is generally served with programs and services complementary to the organization’s primary breadth of services that are less actively promoted. Lastly, the organization will opportunisti- cally serve clients; those needs-based segments that the organization can efficiently serve, however, are not part of the organization’s target market.
By identifying and deeply understanding an organization’s primary tar- get clients, programs and services can be tailored to meet all the needs of the target client. An organization can become more effective and focused, and achieve better client retention because the organization now understands and appreciates the depth and breadth of the programs and services it must deliver.
Once the strategically focused needs-based segmentation is complete, demographics, firmographics and behavioral characteristics can be used to sub-segment the needs-based segments for operational decisions/purposes.
One case example is provided by the YWCA of Calgary. One needs- based segment might include anyone (i.e., women, children, and men) who requires abuse counseling. This segment of the market can be tar- geted and served with focused programs and services. However, it could be that women require a female counselor and men require a male counselor. While the entire needs-based segment is targeted and served in the same way, the sub-segment of gender plays an important role and informs strat- egy to ensure that when hiring counselors the appropriate ratio of female to male counselors is considered.
Ideally, an organization would differentiate clients by their needs and create as many specific needs-based segments as possible in order to exhaus- tively meet every need of every client. In reality, this is not feasible and it is recommended to limit the number of needs-based segments from six to nine. One must consider weighing the increased revenue/expenses from better meeting the needs of one’s clients with the increased cost of altering
Transformation of YWCA of Calgary 305
promotion, funding, and/or HR plans (Peltier & Schrobrowsky, 1997), or realigning programming.
Greengrove (2002) discussed a needs-based segmentation from the medical sector where it was discovered that needs-based segments can be independent of pathology. In other words, it is better for doctors to treat the patient and not the pathology (e.g., in some cases, the needs of a breast cancer patient are more aligned to those of a gastric cancer patient opposed to the needs of other breast cancer patients).
A more relevant example to social services of using needs-based segmentation is the United Way (UW) of Las Vegas who examined the “exchange” relationship between donors and fundraisers in the 1990s. Donors and non-donors were clustered based on “needs” that included gen- eral attitudes toward charities, reasons for giving, perceptions of the UW, and individual ranking of particular causes. The UW of Las Vegas’ needs-based segmentation approach increased donations nearly 25% in the first year of implementation, and UW Las Vegas was instantly the fastest growing UW in the United States (Peltier & Schrobrowsky, 1997).
This example of the UW of Las Vegas also applies to program and service alignment. Caramanica, Cousino, and Petersen (2003) argue that pro- gram and service alignment to an organization’s strategic direction is the first step to success. If different departments are implementing programs and services that do not align with the mandate of the organization, then this misalignment creates uncertainty amongst its staff, clients, funders, and the programs and services. Furthermore, the risk of mission-drift arises as the organization or departments within the organization lose focus as to the purpose of the organization. Aligning organizational objectives to the organization’s strategic direction is akin to and just as important as aligning programs and services to target clients.
Ideally, an organization defines its mission and then identifies its pri- mary and secondary target clients before developing the programs and services it intends to offer. However, most social service organizations have been operating for several years (even decades) and suffer from legacy client targets that have evolved with the operation of the organization, not through strategic thought and mission alignment. Employing the ‘strategy’ of pro- viding programs and services “because those are the programs we have always offered” will likely lead to offering programs and services that do not sufficiently meet clients’ needs.
In 2001, the YWCA of Calgary experienced this same series of legacy issues. However, through its program and service realignment analysis (dis- cussed later in this paper), the organization clustered all programs under one of three categories: growth, restructuring, and divestiture. After this analysis, the YWCA of Calgary was better equipped to realign its current program and service offerings with the needs of its target clients.
306 D. S. Finley et al.
THE PROCESS OF NEEDS-BASED SEGMENTATION
The needs-based segmentation process describes how an organization can move from traditional segmentation methods to identifying needs-based seg- ments, determining which clusters of client needs can be served best by the organization and which client segments are best left to be served by other organizations. Box 1 in Figure 2 illustrates how most organizations assume they are serving one type of client with one primary need or a limited set of common needs. Box 2 shows how clients can be segmented into clusters based on their differentiating needs. Some of these clusters may develop overlap, while some clusters may be very distinct and separate from all oth- ers. Box 3 highlights that by deliberately selecting specific groups (segments) of clients that the organization can best serve, the organization defines a unique value proposition and becomes more effective at serving the clients within the chosen segment(s) (the dark circles in Box 3). The value proposi- tion is a tight explanation that staff and volunteers can use when advocating for the organization or explaining to clients, funders, and the community how the YWCA of Calgary can help.5 This focus on unique value proposi- tions increases the opportunity for forging partnerships with other service providers in order to better serve clients’ needs (the light circles in Box 3). Partners and potential partners also become more aware of the services of the original partnering organization (in this case, YWCA of Calgary) and can redirect/refer clients as well.
The internal process of moving an organization’s client focus from Box 1 to Box 3 usually takes time and encompasses lengthy discussions for those engaged in the organization’s strategic planning. Nonprofit organiza- tions typically do not have the resources for internal strategic reflection—a systemic weakness in the nonprofit sector. However, as nonprofit orga- nizations face increasing client wait lists and decreasing funding, a more
Segmentation divides clients into clusters with similar needs.
Many organizations perform assuming one cohesive set of client
needs
In reality, there can be multiple sets of
differing client needs
Understanding differing expectations and
consciously targeting selected needs to serve is
key to effective performance
Value Proposition 1
Value Proposition 2
Value Proposition 3
Value Proposition 4
FIGURE 2 Segmentation model (color figure available online). Source: Framework Partners Inc. planning tool.
Transformation of YWCA of Calgary 307
systematic re-examination of their strategic direction leading to program and service realignment is warranted.
Once an organization has segmented its clients and identified those clusters it can best serve, there is an opportunity to streamline and redesign programs and services to meet the needs of the target segments. This step in the process may include divesting programs and/or services that are no longer required because they no longer meet the needs of the organization’s target segments or because these programs/services are not effective from a cost-benefit perspective. This process of restructuring and repositioning may be revolutionary for some organizations and, therefore, it is vital that consen- sus is reached within the group so that the actions to take will be supported by the organization. It is also important to engage key stakeholders in the realignment process to build commitment and understanding of the need for restructuring. These stakeholders will more likely support such a poten- tially disrupting change (in the short run) if they are included throughout the realignment process, kept abreast of progress, and encouraged to sub- mit input. Also, by including updates throughout the process, revaluation of a large restructuring plan is not unveiled on unsuspecting staff, volunteers, clients, and funders.
Over-streamlining an organization’s focus so that it leads to stagna- tion, or the prevention of expansion and/or renovations is not common nor much of a threat to an organization undergoing such a transformation. However, planners are advised to be aware of this possibility. To avoid this risk, significant client analysis (including a re-evaluation of the needs-based segmentation) should be completed about every five years to ensure the organization remains in line with evolving client needs. Also, preventing large expenditures such as renovations could be a positive outcome if the organization would have otherwise dissolved before the renovations are complete, or shortly thereafter.6
The act of dividing clients into distinct segments allows an organization to selectively develop programs, tailor services, and communicate specific messages to targeted groups of clients (and funders) in order to maxi- mize organizational effectiveness. Thus, in the face of declining financial resources and increasing demand for quality service, a client needs-based segmentation can be an effective and efficient strategy when nonprofit orga- nizations are making decisions about program priorities, best uses of limited resources, and/or better methods of targeting funders due to the clarity gained from the client-focused programs and services.7
THE CASE OF YWCA OF CALGARY
While the academic literature on using needs-based segmentation to align programs and services within primary and secondary target client markets is limited, it is this very path that the YWCA of Calgary took in 2001 to achieve
308 D. S. Finley et al.
a new level of sustainability. The motivation for the YWCA of Calgary to ini- tiate such a strategic planning initiative was that the organization was facing severe cash shortfalls. The organization’s board agreed that quick action was required. As part of a comprehensive strategic planning effort, the board approached the bank to refinance the organization’s debt; a decision was made to sell its camp at Sylvan Lake; a serious cost-cutting program was implemented so that payroll could be met; and a systematic rethink of the YWCA’s programs and services was initiated to significantly improve ser- vice to clients. The staff was highly engaged in the restructuring process, which created buy-in and commitment during the implementation phase. While defining the strategic positioning is vital to the process, implementa- tion follow-through on the part of the staff is equally important. The role of the CEO during this sensitive time to take the board’s strategy work and implement it with the staff was paramount to the transformation’s success. Furthermore, the CEO (newly hired at the start of the transformation process) had to skillfully manage the relationships between the board, senior manage- ment, and a third-party strategic planning consultant. The YWCA of Calgary implemented its renewed strategic direction over five years (2001 to 2005).
Background
The YWCA advocates on behalf of women and children, particularly in the areas of economic autonomy and domestic violence. The YWCA of Calgary is one of the 36 YWCAs in Canada. Throughout its more than 150-year his- tory, the YWCA in Canada has been a pioneer in meeting women’s emerging needs (see Figure 3)
At the end of the 20th century, the YWCA of Calgary was struggling to overcome a number of growing issues within the organization, including long-term operation in a state of chronic financial vulnerability. With finan- cial and human resources continuously constrained, the YWCA of Calgary experienced difficulty in delivering its services. Changes to internal fundrais- ing models also became a challenge for the organization; the need for greater attention to donor stewardship, including reporting to donors and the demonstration of program and service sustainability, stretched available resources to the limit. Furthermore, competition in the market for additional fundraised dollars was fierce at the time when the organization was attempt- ing to decrease its dependence on government funding. In addition, while the YWCA of Calgary’s profile in the local community remained relatively high, public awareness and appreciation of the organization’s role within the community and its implementation of programs and services were very limited. The roles of the YWCA and YMCA remained significantly unclear to the public, and their relationship with each other appeared competitive opposed to collaborative.
Prior to initiating a strategic planning process, the YWCA of Calgary’s programs and services were spread across a broad client base of women,
Transformation of YWCA of Calgary 309
Lending libraries
(Montreal, Quebec
City)
Evening classes for employed
women (English, bookkeeping)
• School of Cookery (Toronto) • School of Domestic Science (Hamilton)
• Hostess Houses (for wives of service men)
• Farm Service Force (camps for women and girls doing farm labour)
Daytime Programs for Young Mothers Researching and educating
on the role of women in Canadian Society
1985 Community Model approved (to accommodate co-ed programs)1870 First
Canadian YWCA
(St. John)
1894 World YWCA
1893 National YWCA
1919 Canadian
Women Get Vote National Centennial
Shelter For Women and Children
Employment & Education Programs
Programs for Unemployed Women
Prayer and Shelter for Women
Education & Shared Resources
Social Advocacy
YWCA’s History
1995 First Community
YWCA Established
1954 First YMCA/YWCA
Established
18 50
–6 0s
18 70
–8 0s
19 10
–2 0s
19 30
–4 0s
19 50
–6 0s
19 70
–8 0s
19 90
–
20 00
s 18
90 –
19 00
s
FIGURE 3 Evolution of the YWCA of Calgary from 1850–2000 (color figure available online). The YWCA of Calgary’s planning initiative, 2001.
children, and men. Multi-barriered women were the traditional focus for pro- grams and services, which represented the largest client segment (72%) of the YWCA of Calgary. Also, 70% of the YWCA of Calgary’s clients lived below the poverty line. At the onset of the segmentation initiative, the YWCA of Calgary’s programs and services fell into four categories: family violence pre- vention, housing, education and employment, and health and recreation. It is evident that these categories were demographic—as described in Figure 1; YWCA of Calgary was operating in Box 1 of Figure 2—and attempted to serve the broadest array of individuals possible. This ultimately led to the YWCA of Calgary being opportunistic in following funding sources and, therefore, offering some programs and services that the target clients did not require and from which they derived marginal benefit.
YWCA of Calgary’s Strategic Planning Initiative
STRATEGIC ISSUES
With the urgency for change on YWCA of Calgary’s horizon in 2001, the organization began the process of renewing its strategic direction. The first significant step in achieving a new strategic direction was the
310 D. S. Finley et al.
identification of strategic issues (i.e., the fundamental drivers for change). To do this, the organization completed a situation assessment that exam- ined its current strategy and how it fit within the current environment. The organization’s strengths and weaknesses were articulated; a com- parative assessment of other service providers was undertaken; a key stakeholder analysis was completed; and key trends in six areas of focus emerged.
From the aforementioned analysis and the YWCA of Calgary staff con- sultations, consensus was reached that two significant strategic issues were eminent and needed to be urgently addressed:
1. Strategic positioning and clear market focus needed to be determined by: a. Identifying the types of clients the YWCA of Calgary can best serve
(perform a needs-based segmentation analysis); b. Reframing core programs and services that reflect the evolving needs
of targeted clients (increase client satisfaction); and c. Increasing public awareness and understanding of the YWCA of
Calgary and its services in the community. 2. Debt-restructuring and revenue enhancement needed to be addressed
and implemented by:8
a. Significantly enhancing the YWCA of Calgary’s ability to fundraise to ensure the organization’s sustainability;
b. Articulating the means to realize organizational growth through trans- formational repositioning; and
c. Developing new revenue streams to support long-term sustainability.
The key driver for the YWCA of Calgary’s transformation was reframing core programs and services to better reflect the evolving needs of targeted clients. Addressing this fundamental issue allowed the YWCA of Calgary to gain a better understanding of who its current and potential clients were and what these clients needed the organization to deliver. By addressing this issue first, a foundation was established for addressing other issues affecting the organization. To better understand its clients, the YWCA of Calgary, with the solicited support of a third-party strategic planner, initiated a needs-based segmentation process.
NEEDS-BASED SEGMENTATION
In the recent years leading up to YWCA of Calgary’s strategic planning initia- tive in 2001, the number of multi-barriered women coming to the YWCA of Calgary had increased and continues to increase today. Clients seeking ser- vices at the YWCA of Calgary have increasingly higher levels of needs, more barriers, and gaps in their ability to meet their most basic living requirements.
Transformation of YWCA of Calgary 311
Over the years, programs and services had mushroomed in an attempt to meet all needs of all persons seeking service at YWCA of Calgary.
The first step included identifying the needs common to all clients as well as the needs that distinguished groups of clients. Common needs to YWCA of Calgary clients include: access to a continuum of programs and services; transportation; access to other services (e.g., health care); and a non-discriminatory and non-judgmental environment. The YWCA of Calgary also identified seven categories of clients distinguished by unique needs. Table 1 lists each client segment and describes the associated needs. The board and staff worked together to determine which of these seven segments the YWCA of Calgary could best serve given the organization’s strategic direction, resources, capabilities, and differentiated position within the sector.
The YWCA of Calgary’s segmentation model can be seen as a contin- uum of services that supports a client from intervention through to transition, stabilization, and finally self-sustaining (from being “dependent” through to the ultimate goal of “sustained independence”) as depicted in Figure 4. Although there are multiple entry points along the continuum, multiple exit points also exist. However, if the organization were able to provide a seam- less continuum of service, every client would (theoretically) be successfully transitioned to be self-sustaining and independent. The YWCA of Calgary would provide all of the program and service support required, either on its own or jointly with other service providers.
TABLE 1 YWCA of Calgary Client Segments and Associated Needs
Segment Distinguishing key need(s)
Crisis Sufferer Immediate safety, shelter (food), timely support, crisis counseling, hope, emotional support, continuity of care for “family,” convenience, legal assistance, emotional support, self-esteem and self-sufficiency.
Employment Seeker Job/career counseling, specific skills development/upgrading, network to gainful employment, gainful employment.
Solution Seeker Information, access to networks, recommendations, coordinated/integrated approach, convenience, legal assistance.
Transition Seeker Hope, personal counseling, time for stabilization, emotional support, shelter (food), life skills development, independence, continuity of care for “family,” sense of direction, legal assistance, emotional support, validation, self esteem, peer network.
“Social” Support Seeker
Safe interaction, interesting (engaging) activities, peer network, emotional support, camaraderie/friendship, sense of belonging, fun, validation, self esteem, peer network.
Community Leader Make a difference, opportunity for action, peer network. Trouble Free Peer network, recreation.
YWCA of Calgary’s Strategic Planning, 2001 (working model).
312 D. S. Finley et al.
Intervention Transition Stabilization Self-Sustaining
Dependence Sustained
IndependenceTime or Progress
FIGURE 4 The YWCA of Calgary’s continuum of services (color figure available online). YWCA of Calgary Strategic Planning, 2001.
Transition SeekerCrisis Sufferer
“Social” Support Seeker
Community Leader
Trouble Free
Intervention Transition Stabilization Self-Sustaining
Dependence Sustained
Independence
Employment Seeker
Solution Seeker
Continuum of Services is Essential
YWCA of Calgary’s Focus
Time or Progress
FIGURE 5 The YWCA of Calgary’s focus of continuum of services (color figure available online). YWCA of Calgary Strategic Planning, 2001.
Once the common and differentiating needs of clients are hypothesized and placed accordingly along the continuum, target clients are selected from these possible segments. Figure 5 identifies the needs-based segments that the YWCA of Calgary can best serve (highlighted by “YWCA of Calgary’s Focus” in the figure). In general, and as seen below with employment seek- ers and solution seekers, it is possible for segments to fall into more than one target area. Identification of where along the continuum a type of client lies, even if it is across the continuum, helps align programs and services to better fit client needs.
Figure 5 demonstrates where the YWCA of Calgary’s efforts were focused at this stage in its strategic planning work in 2001. It is understood that once a client is in the “self-sustaining” box, they no longer require
Transformation of YWCA of Calgary 313
the YWCA of Calgary’s primary services and will no longer be considered a target client of the YWCA of Calgary. This is not to say that this client may not return to the organization for additional services at some time in the future. Also, people already in this segment will not be targeted. This analysis helped the YWCA of Calgary narrow its focus on those who the organization could best serve.
The YWCA of Calgary recognized the need to assist clients with a smooth and integrative transition between intervention, transition, and stabi- lization in order for the clients to achieve sustained independence. As such, the YWCA of Calgary aligns its programs and services to range from crisis intervention to proactive and preventative crisis management. To support its delivery of services along the continuum, the YWCA of Calgary works in collaboration with partners to support any client needs outside the area of the YWCA of Calgary’s target focus.
One example of such collaboration is within the emergency shelters serving victims of domestic violence. Shelters within Calgary stay in close contact to ensure that when women arrive at a shelter, they are either taken in or directed to the shelter that would best serve their needs. A second example from Calgary is that two or more agencies will collaborate in response to a funding application request and indicate how they will use the funding to work together. A successful example of this type of collab- oration is the Parent Link Centre, a thriving partnership between Calgary Family Service, Calgary Urban Planning Society (CUPS), and the YWCA of Calgary.
Based on the above analysis, the YWCA of Calgary chose its primary tar- get market as “women who are seeking economic well-being and/or safety from violence,” i.e., it chose the segments crises sufferer, transition seeker, social support seeker, solution seeker and employment seeker). The YWCA of Calgary also selected a secondary target market—“children and other family members of the client.” This secondary target market will be pursued only once a client from the primary target market has been identified and has asked for the YWCA of Calgary’s services.
REVISITING YWCA’S VISION AND MISSION
With the identification of key strategic issues and target client segments, the YWCA of Calgary refined its desired future state (vision) and distinct identity within the sector (mission).
Through the planning process, the original mission statement was simplified and elevated to a higher level. Its mission is to:
Offer programs and services for women and their families, providing them with the skills, abilities, and opportunities to contribute to and benefit from healthy communities.
314 D. S. Finley et al.
Prior to the revised mission statement, the YWCA of Calgary was focused on being a recognized advocate for women, providing services from centralized locations, providing ad hoc service facilitation, delivering programs and services as opportunities arose, and targeting funding sources reactively. The updated mission signaled a shift for the YWCA of Calgary from these tactical operations to being focused on strategically engaging clients and donors, providing an integrated and coordinated continuum of programs and services, managing facilitation of service provision (in partner- ship with other service providers), leveraging impact on their clients and the community, and being a recognized advocate for women seeking economic well-being and safety from violence. This change in direction was vital to the YWCA of Calgary’s revitalization because the organization began shifting its focus from chasing funding to better serving clients.9
ALIGNMENT OF PROGRAMS AND SERVICES
After completing the needs-based segmentation, selecting target client seg- ments, and re-evaluating its strategic framework, the YWCA of Calgary was set to align its programs and services with its renewed strategic direction. This process ensures that all programs and services are offered because they tailor to the needs of YWCA of Calgary’s primary target clients. As a starting point, the YWCA of Calgary asked itself a series of questions about its cur- rent programs and services (see Table 2) to guide the decisions regarding which programs and services should be enhanced, maintained, or removed. From these questions, a series of summary implications were derived (see Table 2), which informed subsequent realignment of programs and services.
ACTION PRIORITIES
Based on the YWCA of Calgary’s goals and strategic issues, the board and staff agreed on six action priorities—three for year 2002 (i.e., program align- ment, process improvement, and brand & image) and three for year 2003 (i.e., facilities, fundraising, and partnerships). The board and staff reached consensus that it was necessary to: discern the programs and services to be provided directly by the YWCA of Calgary or be facilitated by the orga- nization; align the service provision to ensure a “continuum of service” to clients, and recognize multiple points of entry and the need to create client care teams; and identify and consider merger and/or de-involvements with other service providers, where appropriate.
During these discussions, emotions were very high. In the past, pro- grams were typically designed around funding availability and community development priorities, not necessarily around the organization’s strategic direction and targeted clients’ needs.
Transformation of YWCA of Calgary 315
TABLE 2 Questions of Focus and Resulting Implications
Questions Implications
1. Based on our strategic direction and available resources, is the program/service on our list of priorities?
2. Is there someone else better able/financed to deliver this program/service? If so, what is the best way to access this service (partnership or referral)?
3. How does this program/service support the “continuum of service”?
4. Are we accessible to those in the greatest need?
5. Do our actions align with the national and international organizations?
● Need to narrow current client focus and refocus the services delivered.
● Develop a system to manage program/service priorities to support the YWCA of Calgary’s strategic direction while considering the resources available.
● Need to form partnerships with other service providers to promote facilitation of referrals for people with needs outside the YWCA of Calgary’s focus.
● Funding partnerships will be driven by client needs.
● Change in organizational culture toward more integrated, facilitative, and collaborative approaches inside the organization and with outside partners.
● Invest in staff/volunteer development and training to allow for effective needs assessment, implementation of care teams and support the continuum of service.
● Invest in the infrastructure (systems, processes, organization) of the business.
YWCA of Calgary, Strategic Planning, 2001.
PROGRAM ALIGNMENT
Program alignment, outcome measurement, and performance management can be coordinated into one continuous process that fosters an organiza- tional culture of learning, growth, and accountability to stakeholders. For the YWCA of Calgary to undertake a process of program alignment and the ensuing need for outcome measurement and performance management, a guiding model was required. A number of models were reviewed from a wide variety of choices available to the nonprofit sector. These models included a balanced scorecard (a corporate-based model), a logic model (an outcome measurement-based approach), and formal research (a model from the academic community).
The basis for the YWCA of Calgary’s program alignment model (see Figure 6) was an adaptation of a number of logic model approaches. The logic model approach was selected due to its ease of use and accessibility to all staff levels, as well as its ability to capture the many intangible benefits of programs that balanced scorecards might not accommodate. It is relatively accessible in terms of the resources required to implement and can develop the foundation from which more intensive formal types of evaluation can occur. The logic model was a tool that a number of YWCA of Calgary staff had already received training for and had worked with for several years, and
316 D. S. Finley et al.
Evaluation Criteria/ Strategic Framework/
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FIGURE 6 The YWCA of Calgary’s Program Alignment Model (YWCA of Calgary, Strategic Planning, 2001; color figure available online).
it was the dominant model used by the YWCA of Calgary’s funders at this time. Management discussed its program alignment model with a number of its larger funders and received enthusiastic responses. The discussions between the board, staff, and third-party consultant concluded that a pro- gram alignment tool (see FIGURE 7) would be necessary to support the thinking of the logic model.
For discussions to evolve further and the successful development of the program alignment tool, it was necessary to identify and reach con- sensus on the board and staff’s roles and responsibilities throughout the process. Ideally, the board would be responsible for its own effectiveness, ensuring it had knowledgeable, effective board members; the right structure and processes in place; good relationships with management; and a means of monitoring its own performance. Secondly, the board and management should work together to ensure strategic and organizational effectiveness; that a solid strategic direction is articulated; that risk management is in place; that ethical standards are upheld; and that quality senior management are employed. Lastly, operational excellence is primarily the responsibility of management and other employees. It is this last point that underscores a sys- temic weakness in the nonprofit sector: Boards frequently have misguided viewpoints as to who is responsible for operational excellence. The daunting
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task of the incoming CEO at the YWCA of Calgary in 2001 was to build inter- nal alignment and to use the newly articulated strategic plan for infusing a planning discipline into the organization. Once the YWCA of Calgary’s board and senior staff accepted this model, implementation of the new strategic direction and program realignment became less problematic.
Both the board and staff had input into the development of the program alignment tool. In Figure 7, the board defined the priority strategic criteria (i.e., strategic alignment), while the staff defined the operational criteria (i.e., operational alignment). See Table 3 for a list and description of all the criteria in Figure 7. Concurrently, all of the YWCA of Calgary’s existing programs and services were clustered under one of the four existing service areas. Each program and criterion could be labeled as: 3 = high priority, 2 = medium priority, or 1 = low priority. It was decided that the strategic criteria provided the foundation necessary to complete the operational criteria, so (most of) the strategic criteria were labeled 3. The operational criteria were mostly assigned 1. One of the strategic criteria was deemed less important than the others, and two of the operational criteria were deemed more important than the others, so all three were assigned 2.
The staff market evaluated each program and service based on its appli- cability to the YWCA of Calgary’s redefined target. The process of involving the staff was critical because it created buy-in, accountability, and momen- tum, as these same staff would be required to implement the results of the strategic planning. To engage the staff effectively, they were invited to participate in surveys, attend meetings, and participate in workshops.
TABLE 3 Description of Balanced Scorecard Criteria
Criteria Description
Strategic Criteria Market Alignment Is this program aligned with our new target market (addresses
strategic issue 1)? Unique Programs How unique is this program in the Calgary area? Impact for Clients How much does this program impact our current clients? Partners Can the program be complemented by our key partnerships?
Operational Criteria Image Does this program present a positive image for the YWCA? Facilities Can the program be implemented in our current facility? Staff Capacity Do we have a sufficient number of staff members to implement
and/or do they have the necessary skills? Volunteer Capacity Do we have a sufficient number of volunteers to implement
and/or do they have the necessary skills? Cost Recovery Can we recover some/all costs of the program (addresses
strategic issue 2)? Core Funding Is this program part of our core funding (addresses strategic
issue 2)?
YWCA of Calgary, Strategic Planning 2001.
Transformation of YWCA of Calgary 319
Furthermore, the chief operations officer discussed with each staff mem- ber how each of the programs with which they were actively involved aligned with all evaluation criteria of the program alignment tool (i.e., strate- gic alignment and operational alignment). From these discussions, the staff assigned each program the weight thought to be most appropriate under each alignment option.
The formula for determining ultimate value of a program or service (as depicted in Figure 7) was calculated by taking its priority value and multiplying it by each of the values of the criteria. An example from Figure 7 is childcare, which was given a priority of 2 for market alignment, and the strategic alignment criteria was previous agreed upon as a priority of 3, giving that combination a score of 6 (i.e., 2 times 3). Once each program or service is combined with each criteria and a score is calculated, all the scores for that program or service are summed and a total out of a maximum of 5710 is recorded. Looking again at the example of childcare, the total for this program is 41/57, and it ranks 9th most important overall. This tool proved valuable as it became very clear very quickly how the YWCA of Calgary’s programming could be reprioritized going forward.
Once programs and services were evaluated, key staff members were invited to attend the board meeting in which the program alignment tool was presented. The staff and board made adjustments to the tool together and reached consensus.
After the evaluation of all its programs and services was complete, the YWCA of Calgary ensured that its core programs (defined as having the highest priority) fully met clients’ needs. This led to the further expansion of some programs and services. Secondly, the YWCA of Calgary re-evaluated the relevancy of its lowest priority programs and services given the strategic intent of the organization and its current capability to deliver. This led to the devolution of some programs and services, as well as the transfer of some programs and services to other more appropriate service providers. Lastly, the organization reviewed its key performance indicators to start measuring the impact of its strategic realignment.
CONCLUSION
After struggling with resource issues for many years, the YWCA of Calgary solicited the guidance of a strategy facilitator who led it through a needs-based segmentation process of its clients, which informed program realignment and the rest of the strategic planning initiative undertaken by YWCA of Calgary.
YWCA of Calgary came from a challenging financial situation to having achieved relative financial stability just one year after completing its strate- gic restructuring. The needs-based segmentation process proved invaluable
320 D. S. Finley et al.
as a tool for achieving several objectives including organizational learn- ing, cultural shift, and process improvement. In addition, needs-based segmentation supports ongoing and future work in the areas of resource development, branding and image, facilities management, and partnerships. The tools and processes developed for program realignment provide a tem- plate for implementing the strategic direction at a systematic level in the organization.
Prologue
Today, eight years after the onset of transformation, the YWCA of Calgary is a leading social service organization in Calgary. In 2008, the organization served more than 15,000 Calgarians. Recently, the YWCA of Calgary teamed up with the Royal Bank of Canada for the first annual “RBC Keep A Roof Over Their Heads” fundraiser. The YWCA of Calgary has also developed a relationship with Vermilion Energy Trust that has resulted in significant fund- ing, and ARC Resources is contributing to infrastructure needs. CTV Calgary, Energy 101.5, and Golden Acre Garden Centre chose YWCA of Calgary for its first-ever Christmas fundraising campaign. For the fifth consecutive year, the Calgary Herald selected the YWCA of Calgary’s women’s emergency shelter as the recipient of the Calgary Herald Christmas Fund. While many other partners exist, the overwhelming support for the YWCA of Calgary is a direct reflection of the strength and impact of the organization in the Calgary community.
The year 2008 ended a three-year strategic planning cycle, the first cycle post-transformation. The increase in clients served and funding are indicative of the success of the initial transformation and the ability to keep the momentum strong with ongoing strategic planning focused on implemen- tation and operational excellence. The 2009–2011 strategic planning cycle will keep clients at the forefront while focusing on site development, the organization’s centennial milestone, human resources development, succes- sion planning, service growth and impact, and increasing brand awareness and profile.
NOTES
1. Founded in 1910. 2. Multi-barriered women of YWCA of Calgary suffer from the consequences of poverty,
homelessness, and abuse. 3. The difference between strategy and operations is that strategy can be described by the question,
“Are we doing the right things?” while operations can be described by the question, “are we doing things right?”
4. “Sustainable” for the YWCA of Calgary is defined as six years of posted surpluses, cash reserves of more than $574,000CAD, and endowment re-established to more than $23,000,000CAD.
5. For a more detailed definition of the value proposition and the YWCA of Calgary’s value proposition, see Appendix A.
Transformation of YWCA of Calgary 321
6. At times, large expenditures occur for the wrong reasons. Right reasons include to meet sustain- able demand or that a detailed business case proves the move to be economically viable and sustainable. Wrong reasons include “because we can get the funding” and “because prices are only going up.” If such an expenditure is made for the wrong reasons, it is likely that the organization is not aligned with its clients’ needs.
7. Many other factors contributed to the transformation of the organization, such as new leadership, an external third party to lead the strategic planning initiative, the new Canadian focus on home- less women after the murders of homeless women in east Vancouver, new Calgary and Alberta police forces, and others. However, while these factors enabled the change to be successful, the needs-based segmentation was the mechanism for the transformational change.
8. The topic of debt restructuring is out of scope for this paper. However, successful debt restruc- turing occurred because the bank was aware of and fully supportive of the YWCA of Calgary’s efforts to realign core programs. This was a contributing factor in the success of the transformation.
9. A carefully crafted needs-based segmentation reinforces the mission and vision. If major mis- alignment is found upon completing a needs-based segmentation, do not fret. Strategic planning is an iterative process; therefore, a revaluation of the vision and mission is likely in need to allow for realignment with the outcome of the needs-based segmentation.
10. A maximum score of 60 is obtained for a program/service if all criteria earn a priority of 3 multiplied by all 10 criteria’s respective priority weightings.
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Transformation of YWCA of Calgary 323
APPENDIX
Appendix A: The YWCA of Calgary’s Value Proposition
A value proposition is a statement that describes the benefits a client will receive and how the client will receive such benefits when enrolling in the services of an organization (Rogers, Finley, & Galloway, 2001). It is possible that an organization will have a series of value propositions directed at specific target markets, or a statement that consists of a list of value descriptions.
The YWCA of Calgary developed the following value proposition after completing its needs-based segmentation and selecting its target clients.
YWCA of Calgary provides benefits to clients through:
● A holistic approach (integrated, coordinated, encompassing); ● Timely needs assessments performed by experienced staff; ● A safe, inclusive, non-judgmental environment; and ● A larger national and international network of YWCAs.
