OUTCOME INVESTING

A BRIEF INTRODUCTION FOR NEW BOARD MEMBERS

Based on the Rensselaerville Institute’s Outcome Framework

A DIFFERENT APPROACH TO ASSIST INVESTORS & RESULTS

MANAGERS TO BECOME:

• Energized

• Focused on results

and learning

• More effective

CORE ASSUMPTIONS

•Success means result achievement

•The Investor must be clear in terms of the outcomes they want to achieve through their investments

•Planning and doing are inseparable.

• Partnership of investor and results manager greatly enables success.

•Outcome thinking encourages innovation and learning.

RESULTS vs. PROCESS

• RESULTS are quantifiable changes that happen for customers because of the interactions they have with the program or service

•PROCESSES are the activities, strategies, services, tactics or other action that is engaged in - in order to implement a program

What Goes In What Comes Out 1. Goals .......................................... Targets/ Outcomes

2. Work Plans ................................. Milestones

3. Programs .................................... Products

4. Organization ............................... Key Persons

5. Budgets ....................................... Accounted Costs

6. Reports ....................................... Data Use

7. Compliance ................................. Course Correction

8. Evaluation .................................. Learning & Verification

Outcome Management System

ROLESThe role of Investor - allocating and managing

resources aimed at achieving success for consumers.

The role of Results Manager - committed to achieving specified results for consumers and to change as required to get those results.

INVESTOR ROLES

• Direct Investor – Invest funds in programs with the intent of achieving results that contribute to Outcomes

• Indirect Investor – Invest resources (technical assistance, information, staff time, training) in programs with the intent of influencing their commitment and enhancing their capacity to achieve results that contribute Outcomes

DIFERENT TOOLS FOR DIFFERENT TASKS

• Strategic Planning (Strategic Mapping)• Funding Application (Call for Co-Investors)• Application (Performance Target Outline)• Review & Selection (Due Diligence)• Grants Report (Portfolio Review)

STEPS TO MOVE FROM BEING A FUNDER TO BEING AN INVESTOR

• Pre-Contract

• Contract

• Post Contract

STEPS TO MOVE FROM BEING A FUNDER TO BEING AN INVESTOR

• Pre-Contract• Step 1: Investor Clarity & Approach

• Step 2: Provider Community Communication: Change is Coming

• Step 3: A Different Request for Applications; Call for Co-Investors

• Step 4: Informational Workshop

• Step 5: A Different Application (Performance Target Outline)

STEPS TO MOVE FROM BEING A FUNDER TO BEING AN INVESTOR

• Contract• Step 6: Different Review System

• Step 7: Clarity Questions & Responses

• Step 8: Board Review Committees

• Step 9: Post-Investment Session

STEPS TO MOVE FROM BEING A FUNDER TO BEING AN INVESTOR

• Post-Contract• Step 10: Quarterly Results and Learning

Reporting and Interaction

• Step 11: Program Audit

• Step 12: Best Practices Session

• Step 13: Annual Report – Reflection

• Define the Vision

• Provide the boundaries

• Guide without dictating

• Create an environment that facilitates learning

• Use Results & Learning

Embracing an Outcome Investment Systemrequires one to

LEAD CHANGE BY EXAMPLE

OUTCOME INVESTING FLOWCHART

VISION

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Outcome

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Target area

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