4 Foundations: Part of the 6+4 Nonprofit Management System
THE 4
The 6+4 system is designed to incorporate the fundamentals of business management into a nonprofit organization’s DNA, so that the business itself runs smoothly in the background while mission drives the work
1
BIG Questions
What it is: This first of The Four Foundations is the fundamental reason your organization exists. At its heart, businesses are the answer to a client’s problem. Clarity around what EXACTLY you are trying to accomplish is critical - for your work, for your messaging. It also keeps you focused and mission-centered.
Key Elements:
What problem are you trying to solve?
Who are you trying to solve it for? (Who is your target market?)
Do they want it solved?
Will they pay for a good solution to the problem?
Pro Tips: Questions 3 and 4 are often overlooked. You may be right that a problem exists and you have a solution - but assuming that your solution is welcome - and that people will spend time or money to get it - is risky.
2
Ethos
What it is: This is your north star. Your direction, Your core values set and your culture. This is all about who you are and the kind of world you want to see assuming you could solve the problem you’ve articulated in the Big Questions.
Key Elements:
Vision - how do you see the world if the problem went away?
Mission - what solution are you presenting to solve the problem?
Values - what are the guiding principles through which you filter every decision?
Culture - what kind of organization do you want to create? What is it’s personality, vibe and community norms?
Pro Tip: You can get hung up on defining your ethos and brainstorming key words and pithy statements. You can also get caught choosing words that depict what you wish you were instead of what you actually are. Spend some time on this - but then set it aside and come back to it. Test the values. Try them on for size. Tweak them. Once you can articulate your ethos, and be confident in it, it is easier to wield the power it offers.
3
Positioning
What it is: This is how you position yourself in the market, or the environment in which you exist. How do you tell your story? What personality are you putting on display for all to see - and are you intentional about it? How do you stack up against competition and why are you different?
Key Elements:
Market differentiation - how are you different from other providers?
Point of View - how do you see the world?
Brand - what is your organization’s voice, personality, value statement? What feeling does it elicit from your stakeholders?
Core messaging - what are the 1,2 and no more than 3 points you are always trying to communicate?
Pro Tip: You cannot do good marketing without working through this - at least not in a team. Once more than one person is “marketing” or telling your organization’s story to external audiences, you absolutely need to make sure everyone is on the same page with respect to Positioning. Otherwise, you confuse people as to who you are and what you stand for.
4
Strategy
What it is: This is how you are going to get it all done. How, exactly, are you going to fulfill your mission, which is an answer to the problem you’ve identified in your Big Questions. For example, if your organization exists to address food insecurity, your mission might be to make fresh produce available to all and your strategy could be to build urban gardens in city parks. Your goal might be to open 4 new gardens per year and your plan is the specific set of tasks that it is going to take to both run the organization and build 4 new gardens. Your budget anticipates how much that will cost and how much fundraising you need to do to raise enough money to finance those costs.
Key Elements:
Strategy (or strategic plan)
Goals
Annual Plan
Annual Budget
Pro Tip: Try not to think about the budget as a magical scary spreadsheet that exists separate from everything else. Done well, your budget is the dollars-and-cents manifestation of your strategy, goals and plans.
Need help?
We can consult for your organization and help you figure out how to plan and manage any of the Four Foundations. Let’s set up a call and talk through what you need.