FINANCIAL SUSTAINABILITY

Goal:

The Financial Sustainability Domain assesses the steps the agency has taken to evaluate the “current state” of agency operations and projecting a “future state” based on the financial implications of the changes noted in the Strategic Plan. This fiscal analysis leads to a determination of the likelihood of the fiscal viability of projected plans.  

Learning Objectives

The Financial Sustainability domain will help in gaining a comprehensive understanding of the steps necessary to complete the assessment of the organization’s current financial status and the fiscal viability of the changes planned through the transformation:
  • Understanding and conducting an assessment of the organization’s current financial state
  • Recognizing all external factors to include in financial projections for business models
  • What is included in fiscal modeling to align costs/revenues with strategic plan objectives

Audience

Agency Leadership:

  • Executive Team
  • Board of Directors
  • Program Directors

Tools and Processes

Group Discussion Exercise – Financial Sustainability  

The following group discussion exercise is structured to help the agency gain a better understanding of the importance of detailed financial analysis, business planning and having a comprehensive understanding of internal and external factors that affect the agency’s ability to establish a venture that is financially sustainable.

1.

Get a sense of the agency’s baseline score by completing the Mini ESTA.

2.

This brief podcast defines the “Financial Sustainability Domain” and why the questions in the full self-assessment are important.

3.

Complete the ESTA or move to the next step.

4.

Assemble a group of your agency’s Leadership stakeholders; minimally include Executive Leadership (e.g. CEO, CFO, HR, COO), Board of Directors and Program Directors. For a more expansive group include external participants (individuals and families, community partners, etc.). 

A.) Note: This process may also be conducted using multiple groups with each group comprised of discrete stakeholders (e.g. Board members only; Executive Team only).​

5.

Review the self-assessment of Financial Sustainability from the Mini ESTA (or ESTA if completed).

A.) By reviewing the rating/score from the assessment, the agency will see where they fall on the continuum of progress towards transformation in the Financial Sustainability Domain. Keep in mind the responses to the individual items in the assessment during discussion.

6.

Continue discussion using the prompts below. During discussion, consider potential actions that may be undertaken to make further progress in the transformation process.
​Approximate Time for Exercise:
​60-90 minutes
A). Begin discussion by identifying your agency’s experience/competency in business planning/ the development of a Business Plan for a new/different venture that is not a “funded” program. What is the status of the agency’s current business plan?

B.) Discuss the various options for expanded employment opportunities and/or projected product/service lines that the agency is considering and the rationale behind those choices. Is this based on sound business planning, including workforce capabilities, pricing, and supply/demand?

C.) Have you done fiscal analyses and modeling based on your current operations and strategic plan objectives? Discuss how your strategic plan objectives affect your financial ‘bottom line’ in the various scenarios you’ve chosen.  

D.) Discuss the potential financial impacts, as well as program impacts, that the transformation has on other aspects of the agency and of the consumer’s life (e.g., residential services, transportation, individual “down time” due to less than full day activity, etc.).
©2019 • All rights reserved. • For more information email us at [email protected]