Story
Unleash The Power of For Impact Math
Do The Math: For Impact Guiding Principle #7
The following helps define the difference between “NOT-FOR-PROFIT” MATH and FOR IMPACT MATH.
NOT-FOR-PROFIT MATH: THE STORY
“Woe is us. The need is great.”
”Yes, we are only helping fix 12% of the problem.”
“BUT, we have:
- limited resources …
- a small staff …
- no money…”
“We need money for payroll.”
“Please help us SURVIVE.”
“WOW!!!”
“We are only touching 12% of the need …”
“BUT, we have:
- a proven solution …
- a dedicated staff …
- a way to deliver this solution.”
“All we need is an increase in resources to close this gap.”
“Will you help us FUND THIS VISION?”
NOT-FOR-PROFIT MATH: VOCABULARY
The PROBLEM
The DENOMINATOR
(Cut Costs)
SUBTRACTION
KAIZEN/INCREMENTALISM
ARITHMETIC
TWEAK THE NUMBERS
SIMPLE ADDITION
(3 + 33 = 36)
5-YEAR STRATEGIC PLANS
(Driven by ‘Bean Counters’)
CREATIVE FINANCING
(To Hide Problems)
RANDOM TRANSACTIONS
HUGE EFFORT; LOW RETURN
(Special Events)
SAME OLD, SAME OLD
(Expecting Different Results)
20%/80%
(20% of Income from 80% of Effort)
FOR IMPACT MATH: VOCABULARY
The SOLUTION
The NUMERATOR
(Increase Revenue)
ADDITION
QUANTUM LEAP
GEOMETRY
EXPONENTIAL GROWTH
COMPOUND GROWTH
(3 + 33 = 333)
1,000-DAY ACTION PLANS
(Driven by ‘Sales People’)
CREATIVE FINANCING
(To Maximize Impact)
COLLECTIVE IMPACT
SMART EFFORT; HUGE RETURN
(Memorable Experiences)
REALLOCATION OF RESOURCES
(To Maximize Relationships, and Significantly Increase Income)
97%/3%
(97% of Our Income from Top 3% of Our People)