UNITED WAY ENTERPRISE-WIDE STRATEGY

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1 UNITED WAY WORLDWIDE UNITED WAY ENTERPRISE-WIDE STRATEGY THE UNITED WAY VISION AND MISSION VISION United Way envisions a world where all individuals and families achieve their human potential through education, income stability, and healthy lives. MISSION To improve lives by mobilizing the caring power of communities around the world to advance the common good. UNITED WAY ORGANIZATIONAL POSITIONING WHO WE ARE United Way advances the common good by creating opportunities for all. Our focus is on education, income, and health - the building blocks for a good quality of life. We engage people and organizations from all across the community who bring passion, expertise and resources needed to get things done - We invite everyone to be part of the change. WHAT MAKES US UNIQUE Willingness to Embrace the Complexity of the Challenge in Communities - We appeal to people/donors that are frustrated that one-off solutions don t improve big problems Community Solutions at Scale - We are the #1 platform for community impact driving positive outcomes in 1,800 communities around the world Unparalleled Relationships across Sectors - We engage all sectors in sustainable, high quality, and cost effective solutions Powerful Brand with Millions Engaged - We influence policy and drive public engagement of a diverse set of stakeholders AN IMPACT GROWTH IMPERATIVE FRAMES OUR STRATEGY Impact Growth Imperative: To achieve our mission, we must grow our position as the #1 platform for community impact. Scale and complexity of our mission demands it Our communities need us; Our assets and our cross-sector, collaborative approach provide the greatest promise for driving positive outcomes Our leadership position and relevance depends on it Our best days are ahead of us We are exploring defining the Impact Growth Imperative by setting an internal goal of doubling network community resources to $10 billion by FIVE BOLD PLAYS WILL DRIVE SUCCESS OF IMPACT GROWTH IMPERATIVE Maximize Impact Bold Play 1: Commit to and Implement a Single Business Model that Drives Impact AND Increases Revenue Donor-Centered Bold Play 2: Create a World-Class Individual Experience with Mobile Capability Bold Play 3: Formalize Community-Partner-Of-Choice Agreements with Top 100 Corporate Partners Bold Play 4: Develop New $10 million Leadership Giving Society Network Performance Bold Play 5: Create Additional Partnership Group of United Ways to Execute Our Enterprise-Wide Strategy

2 United Way Enterprise-Wide Strategy May 2014

3 2 Strategy Context

4 Strategy Context This document is a simple, universal strategy that seeks to help align the network 1. Drive greater consistency in how we talk about United Way mission and positioning 2. Prioritize the bold plays that are most critical to the future we are jointly pursuing including clarifying the roles of UWW and Individual United Ways The strategy reflects the best thinking in the network Strategy driven from interviews with hundreds of network leaders and synthesizing of top insights and shared actions-to-take including recommendations from previous taskforces The strategy is designed as a reading document not a visual/external presentation It is intended to help align and advance the internal planning of the United Way network Strategy provides focus for today and envisioned to be a dynamic document as United Way makes progress and as the environment continues to change 3

5 Strategy Purpose The Positioning and Bold Plays articulated in this strategy are rooted in the most pressing issues and insights occurring across the network The purpose of the strategy is: 1. Help Individual United Ways see the key common challenges and opportunities they face and where focus and sharing of insights/best practices can be most valuable 2. Pursue opportunities where collaboration offers greater quality/efficiency in developing solutions that can be owned and implemented locally 3. Identify and advance solutions that potentially can be delivered centrally for the benefit of Individual United Ways 4

6 Operating Plans Business Model Single Strategy Designed to Help Align Network Single strategy is intentionally simple and rooted in most pressing enterprise-wide insights. It is critical that depth, customization, and alignment occur within plans across the network. United Way Enterprise-Wide Strategy Organizational Positioning and Bold Plays Impact Products and Tools Revenue Products and Tools UWW Operations Plan Geography Plans Priority regions Marketing Plans Infrastructure Plans Talent/Technology/etc. Individual United Way Plans 5

7 6 Executive Summary

8 United Way Vision and Mission Vision: United Way envisions a world where all individuals and families achieve their human potential through education, income stability, and healthy lives Mission: To improve lives by mobilizing the caring power of communities around the world to advance the common good 7

9 United Way Organizational Positioning Critical to Convey in a Compelling, Consistent Manner Who We Are 1. United Way advances the common good by creating opportunities for all. 2. Our focus is on education, income, and health -- the building blocks for a good quality of life. 3. We engage people and organizations from all across the community who bring passion, expertise and resources needed to get things done -- We invite everyone to be part of the change. What Makes Us Unique Willingness to Embrace the Complexity of the Challenge in Communities We appeal to people/donors that are frustrated that one-off solutions don t improve big problems Community Solutions at Scale We are the #1 platform for community impact driving positive outcomes in 1,800 communities around the world Unparalleled Relationships across Sectors We engage all sectors in sustainable, high quality, and cost effective solutions Powerful Brand with Millions Engaged We influence policy and drive public engagement of a diverse set of stakeholders 8

10 An Impact Growth Imperative Frames Our Strategy Impact Growth Imperative: To achieve our mission, we must grow our position as the #1 platform for community impact Scale and complexity of our mission demands it Our communities need us; Our assets and our cross-sector, collaborative approach provide the greatest promise for driving positive outcomes Our leadership position and relevance depends on it Our best days are ahead of us! We are exploring defining the Impact Growth Imperative by setting an internal goal of doubling network community resources to $10B by

11 Five Bold Plays Will Drive Success of Impact Growth Imperative Bold Plays Maximize Impact Bold Play 1: Commit to and Implement a Single Business Model that Drives Impact AND Increases Revenue Bold Play 2: Create a World-Class Individual Experience with Mobile Capability Donor-Centered Bold Play 3: Formalize Community-Partner-Of-Choice Agreements with Top 100 Corporate Partners Bold Play 4: Develop New $10M Leadership Giving Society Network Performance Bold Play 5: Create New Partnership Group of United Ways to Execute Our Enterprise-Wide Strategy 10

12 11 Organizational Positioning

13 Critical to Convey Our Mission Consistently Who We Are 1. United Way advances the common good by creating opportunities for all We believe that a healthy community exists when everyone succeeds We re about change, not charity; We help communities optimize their resources to drive better results 2. Our focus is on education, income, and health -- the building blocks for a good quality of life We address the entire picture of what a person needs to be successful Our focus is on increasing opportunity; We see Education-Income-Health outcomes as integrated 3. We engage people and organizations from all across the community who bring passion, expertise, and resources needed to get things done -- We invite everyone to be part of the change We engage people and leaders from all sectors to be part of the solution We do this community by community to create sustainable capacity to solve current and future needs 12

14 No Other Organization Brings What We Bring Our Unique Positioning Willingness to Embrace the Complexity of the Challenge in Communities o Many nonprofits have great E-I-H program outcomes that are a piece of the puzzle; We are unique in our ability to focus on the entirety of what is needed to create Opportunity for All We appeal to people that are frustrated that one-off solutions don t improve big problems Community Solutions at Scale o Breadth and depth to influence policy while also mobilizing on-the-ground action in 1,800 communities We appeal to people that want to solve problems at scale through informed, coordinated action Unparalleled Relationships/Trust across Sectors o We are rooted in the nonprofit sector, drive business action and shared value in the community, understand government, and are able to drive collaboration across all players We appeal to people who want to engage all sectors in sustainable solutions Powerful Brand with Millions Engaged o We raise awareness and drive capital (financial and human) towards critical issues We appeal to people who want to influence policy and drive greater, more diverse public engagement 13

15 Mission and Positioning Narrative Our Theory of Change: Stronger Communities You can t improve people s lives or create community change working on one issue or in silos. Challenges are complex and require smarter practice, greater collaboration, and better efficiency across the E-I-H delivery system. Lasting change requires deep cross-sector engagement including leadership from business (shared value). We want partners who are serious about outcomes. Change comes from ability to go deep in local communities while also connecting communities to a strong worldwide network of success. We engage millions of people to help change the world. There is no reason why good cannot triumph as often as evil. The triumph of anything is a matter of organization. If there are such things as angels, I hope that they are organized along the lines of the Mafia. Kurt Vonnegut We organize the angels 14

16 Where We Are Today Communities need us now more than ever Our solutions are what is needed We are a well-known brand but there is limited understanding of what we do External factors are putting pressure on our business model No organization has our capabilities but our network needs to work together better Strengths Unmatched scale/leadership in communities Program and community change results Deep relationships across sectors Brand awareness in US Millions of donors/volunteers engaged Opportunities Significant interest in holistic solutions to opportunity inequality Engagement of donors/millennials; Mobile Rise in global philanthropy and HNWI giving Platform ripe for adding strategic partners Potential to influence policymakers Challenges Multiple strategic frameworks cause confusion Tough to act as one, aligned network Limited brand/developing model internationally Not where we want to be re performance/innovation Trust stalled by lack of understanding of what we do Threats Economy exacerbating challenges in community Changes in philanthropy/technology altering historical United Way value position Significant competition for charitable dollar and smaller, more focused competitors move faster Corp. Citizenship looking broader than philanthropy 15

17 Competitive Environment *comprehensive analysis in development Type of Competitor Key Insights & United Way Differentiation (+/-) Philanthropic vehicles Such as donor advised funds, community foundations, and direct online platforms Macro NGOs That focus on a broad set of community needs/issues Issue-Focused NGOs That focus exclusively on education, income, or health Other Such as government, policy thought leaders, and selfrun corporate platforms Rapid growth in donor-advised funds; 40% of High Net Worth Individuals use financial advisor for charity (represents competition as well as potentially part of access to/supply chain for donors) Online/mobile giving growing fast United Way is the leading worldwide network offering both donor services and clear impact mission/human services programming Competitors often better able to target specific asks/benefits as they aren t focused on a broader, more comprehensive mission Many Macro NGOs experiencing similar environment/challenges United Way has strong brand awareness, corporate relationships, and local partner-based approach Flat growth and some confusion about our mission/impact work Highly specialized but fragmented market of niche issue offerings United Way offers more comprehensive solution Mission harder to describe and pinpoint/engage interested donors Corporations increasingly defining corporate social responsibility much broader than philanthropy/community Corporations looking for customized, integrated solutions 16

18 Impact Growth Imperative and Bold Plays 17

19 An Impact Growth Imperative Frames Our Strategy Impact Growth Imperative: To achieve our mission, we must grow our position as the #1 platform for community impact Scale and complexity of our mission demands it Our communities need us; Our assets and our cross-sector, collaborative approach provide the greatest promise for driving positive outcomes Our leadership position and relevance depends on it Our best days are ahead of us! We are exploring defining the Impact Growth Imperative by setting an internal goal of doubling network community resources to $10B by

20 Impact Growth Imperative: Grow Position as #1 Platform for Community Impact UWW Actions 1. Articulate the case for growth Make the case and build support for setting a bold revenue growth target for network 2. Define path to $10B with solid data Commit to doubling network resources over next 10 years with clear revenue drivers (donors, channels, products, markets, etc.) 3. Invest in strategic growth Pursue proactive strategic alliance/ acquisitions to extend capacity/reach 4. Manage to growth Report on progress against growth goal Individual United Way Considerations 1. Articulate the case for growth Make the case and build support for a bold revenue growth target for your region 2. Set local growth goal and define path Commit to significant revenue growth over next 10 years with clear revenue drivers 3. Invest in strategic growth Pursue proactive local alliances/acquisitions that can add strategic value and growth 4. Manage to growth Report on progress against growth goal 19

21 Five Bold Plays Will Drive Success of Impact Growth Imperative Actionable Insights To drive impact and trust, we need to evaluate our portfolio of programs through the discipline of maximizing impact and sustainable revenue To drive impact and revenue, we need greater engagement with millennials and deeper, lifetime relationships with all individual donors To drive impact and revenue, we need to move our corporate relationships to a value proposition rooted in delivering shared value To drive innovation and capacity, we need to leverage the leadership of High Net Worth Individuals in our efforts to scale the United Way s impact work around the world To drive performance, we need to deliver on the compelling promise of quality, scale, and efficiency of being a worldwide network Bold Plays Bold Play 1: Commit to and Implement a Single Business Model that Drives Impact AND Increases Revenue Bold Play 2: Create a World-Class Individual Experience with Mobile Capability Bold Play 3: Formalize Community Partner-Of- Choice Agreements with Top 100 Corp Partners Bold Play 4: Develop a New $10M Leadership Giving Society Bold Play 5: Create New Partnership Group of United Ways to Execute Our Enterprise-Wide Strategy 20

22 Bold Play 1 Drives Impact and Trust Bold Play 1: Commit to and Implement a Single Business Model that Drives Impact AND Increases Revenue We need to connect all we do to generate impact-revenue and strengthen model Clarify universal United Way Theory of Change in communities Eliminate false tensions that exist in our network Each United Way will have a different combination of impact products and revenue drivers based on situation Collective Impact is at forefront of our impact work but it doesn t represent all we are Ensure all impact products drive outcomes and are tied to clear revenue models Strengthen Advocate and Volunteer components of impact work Drive network performance of business model Bold Play 1 will help stakeholders understand what United Way does Trust increases when people understand what we do and outcomes we generate Critical to share outcomes we generate as well as powerful, tangible impact stories Deliver -- with consistency across the world -- that which is core to United Way 21

23 Bold Play 1: Single Business Model UWW Actions 1. Articulate single business model that captures diversity of United Way efforts Publish Theory of Change and report annually on network outcomes 2. Make business model more navigable Connect impact products with revenue drivers and update universe of products Launch UW 3.0 to enable network to access tools/best practices and collaborate 3. Drive network performance Enhance measurement systems, communicate results/recognize success 4. Develop effective marketing to build trust Sell stronger communities approach with data and tangible, emotional stories Individual United Way Considerations 1. Customize business model Clarify local approach/focus with clear impact goals connected to revenue drivers Report annually on outcomes 2. Participate in network performance Share proven practices and help develop impact-revenue products Utilize UW 3.0 to collaborate 3. Drive individual United Way performance Manage/measure performance and communicate results 4. Develop effective marketing to build trust Engage in key network brand/marketing efforts Tell local impact with data and stories 22

24 Impact & Revenue Visual of Single Business Model Community Solutions (Frappuccinos) Top Out Point Program Solutions (Coffee) Time & United Way/Community Capacity There is no old or new model. United Way s engage in Program AND Community Solutions Both components drive compelling impact and revenue. Program Solutions are our foundation and Community Solutions represent our growth potential

25 Bold Play 2 Drives Impact and Revenue Bold Play 2: Create a World-Class Individual Experience with Mobile Capability An opportunity exists to position United Way as the platform for how individuals engage with community over their lifetime Similar to relationship people develop with banks for wealth management, United Way has breadth, depth, and scale to manage individuals lifetime community engagement Currently, we struggle to develop deep relationships with individuals Developing quality, long term relationships with individuals is critical to future success Need to solve data challenges and build stronger ties to the individuals that support us Network efforts are advancing our Individual Engagement thinking and work Taking a portfolio approach to test key components across the network is critical Cost/quality requires we work together so promising solutions can be identified/scaled It is critical to make the shift to mobile Engagement/philanthropy is moving rapidly to a mobile experience 24

26 Bold Play 2: World-Class Individual Experience with Mobile UWW Actions 1. Set a vision for Individual Engagement Work with network to define elements needed to deliver world-class experience 2. Take a portfolio approach to develop Individual Engagement experience Invest in a series of coordinated network tests to develop key components Develop new UWW Innovation Team to run point on efforts and help scale what works 3. Focus on mobile Develop/partner with leading mobile platform to drive individual experience Solve donor data challenge 4. Develop targeted marketing approach Develop/market new products and messaging aimed at individuals Advance affinity group strategies Individual United Way Considerations 1. Focus on Individual Engagement experience and share learnings Emphasize IE in your United Way 2. Participate in portfolio approach Lead/engage with series of coordinated tests to develop key platform components Share insights/infrastructure developed Participate in roll-out of network solutions 3. Focus on mobile Make it a priority Share insights/infrastructure developed Participate in roll-out of network solutions 4. Develop targeted marketing approach Develop new products aimed at individuals Advance affinity group strategies 25

27 Bold Play 3 Drives Impact and Revenue Bold Play 3: Formalize Community Partner-Of-Choice Agreements with Top 100 Corporate Partners Environment and motivations/behaviors of our corporate partners have changed Must move corporate relationships from sacred cow status to delivering shared value Must address their key business/community needs Corporations are focused on outcomes and on relationships Need formal agreements that articulate the specific social impact and business value outcomes we are committed to achieving together and requisite inputs Need stronger account management and communication protocols including strategies for engaging C-Suite 26

28 Bold Play 3: Formal Agreements with Top 100 Corporate Partners UWW Actions 1. Develop and sign formal Agreements Work with Individual United Ways to define and secure corporate agreements Establish account lead role for each corporate partner (UWW or Individual United Way on point) including reporting/ communications protocols Embed C-Suite strategy in each agreement 2. Develop targeted marketing approach Develop new corporate products (Community Solutions product, Impact- Campaign product, etc.) Develop new Innovation Fund Develop new channels for giving 3. Create stronger recognition platform Enhance awards strategy and develop Business-in-Community thought leadership 4. Strengthen key markets worldwide Individual United Way Considerations 1. Develop and sign formal Agreements Participate in efforts for top 100 Engage in similar approach for top local companies 2. Develop targeted marketing approach Develop and share new corporate products Develop new channels for giving 3. Create stronger recognition platform Evaluate/Improve local awards and recognition strategy Develop thought leadership approach locally that advances commitment to Business Role in Community 4. Strengthen key markets worldwide As applicable 27

29 Bold Play 4 Drives Innovation and Capacity Bold Play 4: Develop New $10M Leadership Giving Society The Tocqueville society has been transformational for United Way; We have the opportunity to create a new society at an even greater level of investment that can be equally transformational for our future We have proven the ability to attract high net worth donors at this level and can strengthen this ability by creating a new society This base of support is critical to United Way s ability to innovate and scale These individuals and families are more willing to fund our innovation agenda and help scale around the world There are a variety of compelling, emerging investment options that United Ways are developing for High Net Worth Individuals that round out this bold play Impact Initiatives that Change the Future and Endowments that Sustain It 28

30 Bold Play 4: $10M Leadership Giving Society UWW Actions 1. Identify and recruit core group of initial founding members of New Society 2. Set vision for impact Engage new Society leaders to define goals and membership expectations 3. Develop initiatives for investment Work with Network to develop/showcase local, regional, and worldwide initiatives for investment Encourage endowment campaigns that provide sustainable funding 4. Support Society and grow leadership Grow high net worth individuals programs, offerings, and supports Individual United Way Considerations 1. Identify and recruit core group of initial founding members of New Society 2. Set vision for impact Help define goals and membership expectations 3. Develop initiatives for investment Participate in development/execution of initiatives for investment Encourage endowment campaigns that provide sustainable funding 4. Support Society and grow leadership Grow high net worth individuals programs, offerings, and supports 29

31 Bold Play 5 Drives Performance Bold Play 5: Create New Partnership Group of United Ways to Execute Enterprise-Wide Strategy Need to fulfill promise of one of our most compelling differentiators -- Scale There are times when it is to all of our advantage to act as a $5B organization Quality and efficiency demand it Current membership structure provides foundational level of connectivity but new Partnership Group is critical to advance certain collective solutions A number of Individual United Ways and UWW have raised interest in this deeper co-investment to advance a shared set of strategic/operational objectives Current network Performance Partnerships approach is building a stronger overall network culture and advancing specific priorities Investment in this approach should be continued Other specific shared agendas should also continue to be pursued across the network such as a shared Talent Management strategy 30

32 Bold Play 5: New Enterprise Partnership Group UWW Actions 1. Design Enterprise Partnership Group Work with a group of United Ways to define new terms for stronger co-investment Secure participation of core number of Individual United Ways Clarify expectations and funding model 2. Continue to advance broader Network Performance Partnership program Adjust individual compacts based on progress/lessons learned over first year 3. Develop single Strategy with sub-plan alignment across UWW and network Enable all United Ways to see their connectivity to the entire enterprise 4. Advance network-wide Talent Management strategy Including UWW culture/high performance UWW Actions 1. Engage with Enterprise Partnership Group As Appropriate Work with UWW to define new terms Determine participation as appropriate Work with UWW to clarify overall expectations and funding model 2. Continue to advance broader Network Performance Partnership program Participate as appropriate 3. Align Individual United Way Strategy to Enterprise-Wide Strategy Inform UWW/Enterprise-wide strategy of necessary adjustments 4. Participate in development/execution of Talent Management strategy Emphasize investments in talent and other improvements to organizational culture 31

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