Allies for Community Business Strategic Direction 2021 2023 - Allies for Community Business 2021
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Allies for Community Business
Strategic Direction
2021 – 2023
Allies for Community Business │ 2021 – 2023 Strategic Direction
Table of Contents
Executive Summary 4
Planning Overview 12
• Planning Need
• Internal and External Drivers
• Engagement Timeline
Summary Findings from Primary and Secondary Research 16
Strategic Direction Summary 31
• Strategic Themes
• Articulating Strategic Direction
• Executing on Strategy Direction
• Knowns and Unknowns
Implementation Guidance 64
• Immediate Next Steps
• Budget Summary
• Plan Risks
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 2
Executive Summary
Allies for Community Business
2021 – 2023 Strategic Direction
Allies for Community Business provides the capital, coaching,
and collaboration entrepreneurs need to grow great businesses
in their communities.
Allies for Community Business is launching its new brand alongside
its updated strategic direction that will guide the organization in
creating meaningful client outcomes, engaging deeply in
communities, and building a strong and sustainable
organization.
Ultimately, success of this strategic direction and the organization
overall will be defined in 2023 by the success of its clients, the
value of its community partnerships, the solidity of the
organization's finances and operations, and the effectiveness
of the team and culture.
12/4/2020 Allies for Community Business │ 2021 - 2023 Strategic Direction 3
EXECUTIVE SUMMARY
In July 2020, Allies for Community Business commenced a
strategic planning process to address two foundational
questions.
What will A4CB offer to help entrepreneurs grow? How will A4CB improve in helping entrepreneurs grow?
• How will we provide capital to small business owners? • How should we find more entrepreneurs to serve in
• How will we provide high-quality business coaching to underserved neighborhoods?
small business owners? • How should we provide our services to entrepreneurs
• How will we collaborate with partners to help small more effectively?
business owners grow? • How should we raise money more effectively?
• What additional services should we provide that will
improve our economics by generating fee income that
would reduce our reliance on fundraising?
• How should we organize ourselves to maximize the value
we can provide?
The planning process addressed these questions in the larger context of growing obstacles
entrepreneurs of color faced in 2020.
Source: Strategic Plan Request for Services, June 3, 2020
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 4
EXECUTIVE SUMMARY
This plan articulates key changes in how the organization will
advance its Vision, Mission, and Outcomes
Vision │ Entrepreneurs from any Mission │ We provide the capital, coaching, and
background can start and grow businesses collaboration entrepreneurs need to grow great
that create wealth for their families and businesses in their communities.
communities.
GEOGRAPHY CUSTOMERS PRODUCTS AND SERVICES CHANNELS
Concentrate more heavily on Continue to focus on Black, Provide an integrated client Leverage new capital and coaching
East Garfield Park and the rest Hispanic, women, and low- experience around capital, platforms and deepen community
of the West Side of Chicago, income entrepreneurs. coaching, and collaboration. and banking relationships in
while continuing to support underserved neighborhoods.
underserved entrepreneurs
throughout Chicagoland and
beyond.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 5
EXECUTIVE SUMMARY
The strategic planning process was informed and inspired by the
stark economic realities for families and communities of color…
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 6
EXECUTIVE SUMMARY
…further impacted by the COVID-19 pandemic and resulting
economic fallout for small business revenues and closures.
Source: Chetty, Friedman, Hendren, Stepner, and the Opportunity Insights Team. 2020.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 7
EXECUTIVE SUMMARY
To address the systemic challenges target entrepreneurs and
business owners face, A4CB’s strategic direction anchors on three
audiences.
Our Success Will Be Defined By*
Clients achieving their desired business goals for revenues, profits, take home pay,
For Clients and growth
Clients receiving the capital, coaching, and collaboration services they need to
achieve their goals
Promote our clients, their businesses, and their needs
For Communities Partners making best fit client referrals
Partners valuing our relationship so that we are as critical to their work as they are to ours
Building an engaged, valued, coordinated, and high-performing team
Improving the unit economics and volume of lending
For the Organization Improving our self-sufficiency and sustainability
Growing awareness of our new name, brand, and strategic direction
Growing and diversifying our revenues
*Benchmarks to be developed as part of measurement planning in 2021.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 8
EXECUTIVE SUMMARY
The strategic direction is articulated by Vision, Mission, and
Outcomes and is captured in a Results Frame.
Vision │ Entrepreneurs from any background Mission │ We provide the capital, coaching, and
can start and grow businesses that create collaboration entrepreneurs need to grow great
wealth for their families and communities. businesses in their communities.
Results Frame (Outcomes)
• The Results Frame incorporates 10 outcomes
that are of highest priority for the organization
• They inform progress towards creating
meaningful change.
• The Results Frame includes both internal/
organizational outcomes (five) and social
outcomes (five) recognizing that they are
interrelated and codependent.
• The Results Frame is not intended to capture all
of an organization's activities, but rather provide
‘flexibility within a framework’ of what it can
achieve.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 9
EXECUTIVE SUMMARY
The strategic direction also identifies priority initiatives and
progress indicators that drive implementation.
Priority Initiatives launch across the three-year plan period, focusing on foundational needs first.
Highlights of 2021 Priority Initiatives
Build a Strong and Sustainable Engage Deeply in Communities Create Meaningful Client Outcomes
Organization
• Focusing on our team and culture • Launching our new brand while • Implementing new lending and
• Improving and enhancing account emphasizing our investment in coaching platforms
systems, technology, and data communities of color • Designing new team roles to
strategy • Enhancing our offerings to West support clients
• Generating new revenues through Side of Chicago businesses at The • Launching the Regional Business
individual giving Hatchery Center with the City of Chicago
• Promoting clients and their • Tracking client outcomes and
businesses milestones
• Improving our value exchange with
partners
Details on Priority Initiatives are included later in these materials along with Progress Indicators for Results Frame outcomes.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 10Planning Overview Overview of Planning Need Internal and External Drivers Engagement Timeline 12/4/2020 Allies for Community Business │ 2021 - 2023 Strategic Direction 11
Allies for Community Business sought strategic planning support
in summer 2020 to address several questions.
What will A4CB offer to help entrepreneurs grow? How will A4CB improve in helping entrepreneurs grow?
• How will we provide capital to small business • How should we find more entrepreneurs to serve in
owners? underserved neighborhoods?
• How will we provide high-quality business • How should we provide our services to
coaching to small business owners? entrepreneurs more effectively?
• How will we collaborate with partners to help • How should we raise money more effectively?
small business owners grow? • What additional services should we provide that will
improve our economics by generating fee income
that would reduce our reliance on fundraising?
• How should we organize ourselves to maximize the
value we can provide?
A4CB presented these questions in the context of growing racial wealth gaps in Chicago and nationally, large scale protests
during summer 2020, and the ongoing COVID-19 pandemic.
Source: Strategic Plan Request for Services, June 3, 2020
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 12Informed by planning questions, the process was also rooted in internal
and external drivers that provide context for the strategic direction.
INTERNAL DRIVERS EXTERNAL DRIVERS
• Better economic model – A4CB’s economic • COVID-19 – The pandemic and related economic
model needs to be adjusted to increase fallout have and continue to wreak havoc on small
sustainability, minimize loan losses, improve businesses, and particularly those led by minority
lending efficiency, and be responsive to clients. entrepreneurs in underinvested communities.
• Renaming and rebranding – A4CB ran a These realities have further restrained business
concurrent renaming and rebranding process to capital access from traditional sources.
become independent of its affiliate • Racial reckoning – 2020 has featured an
relationships. increased focus on the racial wealth gap and the
• Continued integration – Initial integration of inequities that impact minority populations in the
lending and coaching has additional steps to U.S. and specifically how minority-owned and led
take to create a more seamless experience for businesses remain systemically challenged in
clients. access to capital, supports, relationships, and
services they need to succeed.
• Understanding data and outcomes – Data
access and usage is a recognized organizational • Online lenders – A4CB is seeing prospective
gap requiring a shift to be data-informed and clients opt to borrow from online lenders who can
outcomes-focused in order to guide investment, provide capital quickly, even if at less favorable
forecasting and planning, products and services, terms and with fewer if any supports.
staffing, and governance decisions.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 13To address the outlined questions and drivers, Revolution Impact
facilitated a three-phase process that ran over a five-month
period.
Phase 1 Phase 2 Phase 3
Discovery and Problem Definition Strategic Strategic Direction*
What did we do? How did we do it? Framework How should we accomplish it?
• Stakeholder interviews What should we • What is our winning aspiration?
• Strategy review accomplish? (Strategic Framework)
• Secondary research • Vision • Where will we play?
• Mission • How will we succeed?
• Outcomes • What competencies must we have,
• Results Frame build, and improve?
• Client Interviews • What management systems do we
• Referral partner need?
interviews • Budget and operational planning
July 2020 August 2020 September 2020 October 2020 November 2020 December 2020
*Source: Adapted from Lafley, A.G. and Roger L. Martin. Playing to Win: How Strategy Really Works. HBR Press. 2013.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 14Summary Findings from Primary and Secondary Research 12/4/2020 Allies for Community Business │ 2021 - 2023 Strategic Direction 15
Primary and secondary research, combined with facilitated
working sessions, were critical to the planning process.
PRIMARY RESEARCH INPUTS SECONDARY RESEARCH INPUTS
Stakeholder interviews Strategy Review
40 participants across staff, board, funders/ Determining strengths and opportunities for A4CB
supporters, clients, and referral partners based on current strategies and outcomes
Facilitated engagement Selected Research
Co-creative working sessions with the Leadership Focused research to inform strategic direction,
Team (11) and All Staff (4) along with periodic determine emerging opportunities for capital access,
updates and input from the Board of Directors and unpack measurement challenges in the sector
Facilitated group engagement was complemented
by deeper dive discussions with content and
functional leads in the organization as planning
progressed.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 16The strategic planning process was informed and inspired by the
stark economic realities for families and communities of color…
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 17…with localized effects that show dramatic underinvestment in
low-income communities and communities of color…
Market-driven investment in Chicago from 2011-2017
High Income Low Income
Mission-driven lending (including CDFIs) is the converse, with the highest investment in majority low-income
and Black neighborhoods. Yet it represents just $4 billon compared to $67 billion in market lending.
Source: Adapted from Theodos, Brett, et al. “Neighborhood Disparities in Investment Flows in Chicago.” Urban Institute.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 18…further impacted by the COVID-19 pandemic and resulting
economic fallout for small business revenues and closures.
Source: Chetty, Friedman, Hendren, Stepner, and the Opportunity Insights Team. 2020.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 19Stakeholders identified meaningful strengths that the
organization can build upon into 2021 – 2023.
Stakeholders have clarity on the funding and Stakeholders see A4CB as a reliable partner to
coaching role A4CB strives to play in the sector government and funders eager to support
and in the geographies where it works. entrepreneurs of color and those otherwise
unable to secure capital and resources.
Stakeholders see the staff as highly committed
to the mission and to the clients they serve; A4CB is recognized and well-respected; many
stakeholders specifically referenced the shifts the think A4CB is a much larger organization than it
organization made in 2020 to support clients and is suggesting the potential for outsized impact
other entrepreneurs and business owners with going forward.
emergency aid during COVID-19.
Sources: Stakeholder interviews and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 20Stakeholders also identified areas of attention for A4CB during
the planning process.
Stakeholders first and most frequently cited the While stakeholders recognize that A4CB is a
market realities that A4CB and micro/small lender first, there is a feeling that there are too
busines lenders face, suggesting a need for many distractions that are taking staff attention
ongoing refinement of the economic model while away from the core business which must be
still driving mission. successful.
Several stakeholders shared that A4CB is behind Several stakeholders saw a need for increased
on technology that can improve client outreach, partnerships, and marketing to find
engagement and loan processing/ management. potential clients. Stakeholders also recognized
Addressing technology limitations are a that A4CB cannot compete with marketing
priority as the organization considers growth budgets of fintech firms to build awareness.
and scale in the future.
Sources: Stakeholder interviews and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 21Finally stakeholders shared opportunities for growth going
forward.
Stakeholders shared a variety of perspectives Stakeholders broadly understand A4CB’s focus
on where A4CB should operate geographically. on underserved entrepreneurs, but also want to
Responses ranged from neighborhood level deep be clearer on what populations are of focus
focus to continued work across Illinois and even if other populations are being served by
Indiana and potentially beyond. virtue of geographic reach.
Stakeholder shared questions on the right Stakeholders acknowledged the deep reliance of
combination of current services (capital, A4CB on partnerships. Stakeholders shared that
coaching, and connections) and the degree to choosing partners well and aligned to
which they should be offered independently or in geographies and customer segments must be
combinations based on client needs. explicit in future plans.
Sources: Stakeholder interviews and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 22As Phase 1 interviews concluded, several stakeholder profiles
emerged.
Experts/ Influencers/ Board of
Policymakers Staff
Peers Directors
• Have high regard for A4CB • See A4CB as critical to the • Clear on governance role, • Believe in the mission and
and its work local economy and even if some operational work; feel their colleagues do
• Local experts and peers feel ecosystem; see A4CB as safe focus is required/ requested as well; ready to rally around
A4CB needs closer and reliable • High level of belief in the role results
community ties • Want to see the organization of A4CB • Want to attract and retain
• Impressed by its emergence grow and have more • Donors and board members high-performing staff and
from a tough financial influence whose organizations are staff and leaders that
situation • Encourage A4CB to explore supporters also see A4CB as represent the community
• Recognize the challenges of new types of businesses to a safe investment • Eager to become more
microlending support and dig deeper into • Concerned about the trend technologically savvy and
• Understand A4CB’s role but community in loan volume; want to see responsive to community
not its higher purpose the organization grow • Want to be more connected
• Impressed by the response to communities
Sources: Stakeholder interviews and Revolution Impact synthesis.
to COVID-19
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 23During Phase 2 of the engagement, clients also shared
perspectives on their needs from A4CB going forward.
ASSETS AND CAPABILITIES OPPORTUNITIES FOR GROWTH STRATEGIC POSSIBILITIES
• Critical Source of Capital – Participating • Grant Support – Clients want support • Intersecting Client Interests – Clients’
clients know A4CB as a lender, and the accessing grants. Especially during the desire for more strategic connections,
capital they’ve received has been pandemic, many have unmet capital both with peers and potential partners,
integral to the success of their needs but are wary of taking on aligns with their interest in the creation of
businesses. additional debt. affinity groups. There is potential to
intentionally cultivate networks that
• Network Connector – Clients expressed • Increased Connector Role – While support clients and the mission.
that A4CB has a valuable network and clients already value the connections
has been helpful in making connections A4CB offers, they believe there is • Assets Illuminate Advantages – Clients
to new business opportunities, vendors, potential to amplify this work. In universally appreciate the benefits of
and advisors. particular they see A4CB: (1) facilitating working with A4CB and named points
connections to prospective institutional of distinction in its approach. This
• Genuine Care for Clients – Clients highlights A4CB’s competitive
believe that A4CB has a real customers and (2) convening peer
cohorts through which clients share advantages and possibilities for clarifying
commitment to helping their and accessing its target market.
businesses flourish. This is reflected in experiences and learn from one another.
sustained relationships, understanding of • Affinity-Based Verticals – Clients are • Building Wealth – Client concerns
client experience, and responsiveness. interested in a program model with around borrowing raise an important
verticals organized around shared question: What forms of capital best
experience, either in industry sectors or balance wealth creation for clients and
phase of development. financial viability for A4CB?
Sources: Stakeholder interviews and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 24From the strategy review, nine outcome themes emerged that
informed the planning process.
Produce organizational
Advocacy and
Donor Awareness and outcomes that are
Movement
Cultivation Brand measured via leading
Building
indicators of future
success
Produce direct and
enabling organizational
Client Loan Portfolio Operational
outcomes that can be
Acquisition Characteristics Effectiveness
measured in part via
financial health
indicators
Produce social outcomes
Client Business Client Personal Community
and outline critical success
Success Success Benefit
factors for core work
Sources: A4CB provided strategy, program, financial, and organizational documents and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 25Today, A4CB strives to achieve multiple social outcomes for clients
and communities through capital, coaching, and connections.
CLIENT BUSINESS SUCCESS CLIENT PERSONAL SUCCESS COMMUNITY BENEFIT
• Lead with Lending – Success • Revenue and Employment – A4CB • Macro Effects – Inherent in A4CB’s
focuses on the degree to which demonstrates a focus on the mission and strategy is the idea that
access to capital is producing impact of revenues and investing in local entrepreneurs
business outcomes that are employment on clients (and their creates larger benefits for
meaningful to clients. employees). neighborhoods and communities.
• Coaching and Connections – • Meeting Client Needs – The longer • Raising Employment Rates – A4CB
Furthermore, coaching and arc of the work is about how also discusses the aggregate wage
connections should also produce changes in client income create increases that are attributable to
meaningful outcomes for clients more personal opportunity for the businesses and entrepreneurs it
to accelerate past and overcome entrepreneurs and their families. supports.
barriers they may face beyond • Urgent Supports – A4CB responded • Community Revitalization – There
access to capital. to COVID-19 by supporting is less evidence on the impact of
• Capturing Additional Client entrepreneurs as people and A4CB’s work on community
Outcomes – A4CB considers on jobs individuals; this approach is key to revitalization, though this is clearly
that are created and retained as a relationship and trust building. critical to mission.
key business success metric.
Sources: A4CB provided strategy, program, financial, and organizational documents and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020
26In materials provided, there is evidence of a desire to find new
clients through tighter connections to communities and partners.
CLIENT ACQUISITION LOAN PORTFOLIO CHARACTERISTICS OPERATIONAL EFFECTIVENESS
• Connecting through Partners – • Small Loans for Most – 97% of • Speed – Several strategy review
Prior strategy and subsequent A4CB’s lending is for loans under documents acknowledged the need
visioning work identified additional $25,000. National research shows to move more quickly including
opportunities to enhance banking that 81% of small business needs loan processing, servicing, and
partner referrals, explore online are for funding over $25,000. (2019) partner referrals.
lending partners, and engage with • Supporting Diverse Borrowers – • Access – Today, 5% of funding
government partners. 76% of A4CB borrowers are people sources used in the past five years
• Connecting through Communities of color; 70% are Black or Latino. by small businesses were nonprofit/
– Additionally, prior work 54% of borrowers are low income. community-based funding source
acknowledged the need for (2019) and 1% were CDFIs.
stronger ‘on the ground’ • Tying Geography to Industry –The • Technology – Both speed and
partnerships with community Hatchery represents the potential access can be enabled by
organizations. for place-based work – a focus on technology and require investment
• Competing with ‘Online First’ – an industry in a geography. Does by A4CB into the ‘moments of truth’
Analysis revealed the challenge of this approach have merit in other for prospective clients.
competing with online lenders. parts of A4CB’s work?
Sources: A4CB provided strategy, program, financial, and organizational documents and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 27Future success for A4CB will rely on great execution of operations
and how the organization sees itself in the broader ecosystem.
DONOR CULTIVATION AWARENESS AND BRAND ADVOCACY AND MOVEMENT
BUILDING
• Opportunities for Growth Funding • Ties to Larger Brand – It is unclear • Beyond Operations – Provided
– Microlending is a tough business, from strategy review the discrete strategy review documents feature
producing limited if any free cash value of the A4CB brand. We the outputs of lending and
flow. Growth funding (i.e., capital presume any value comes as a providing capital. However,
campaign) will be necessary to ‘stamp of approval’ among messaging strives for higher order
drive certain strategic planning institutional partners macro outcomes.
recommendations. knowledgeable about the field. • In Response to COVID-19 – A4CB’s
• Opportunities for Individual • Client Connections and response to COVID-19 provides an
Giving – Several strategy Fundraising – Branding generally opportunity to shed light on how
documents reference more active has the benefit of making client the pandemic has adversely
individual giving and outreach connections and fundraising impacted its clients and why.
campaigns. Nationally, individual (including with individuals) more • Addressing Racial Wealth Gaps –
donors have engaged to support robust. Strategy documents reference
small businesses and Black and • Rebranding Opportunities – racial disparities in opportunity
Latino-owned small businesses. Rebranding creates a moment to and wealth, and there is referenced
engage with communities, clients, interest to address these realties.
partners, and donors.
Sources: A4CB provided strategy, program, financial, and organizational documents and Revolution Impact synthesis.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 28Finally, secondary research uncovered opportunities for even
greater impact around three areas of selected investigation.
INFORMING STRATEGIC DIRECTION ACCESSING CAPITAL FROM OUTPUTS TO OUTCOMES
• Scale – Increasing assets and volume • Racial Wealth Gap Inhibits • Outputs as an Industry Norm – Number
shouldn’t be conflated with greater Entrepreneurs of Color – Individuals of loans originated or number of clients
impact or scale. By clearly articulating with less wealth have less ability to self- served – both commonly tracked CDFI
the problem they aim to solve, CDFIs can fund, typically fewer connections to outputs – show progress toward
build their own definition of scale and others with wealth, and less collateral to outcomes, yet they are not indicators
set impact-aligned outcomes. This is a secure credit. The result is that Black of an actual change.
foundation for effective strategy. and Latino business owners have less • Measuring Outcomes Is Challenging –
• Market share – CDFIs prioritize low- capital than White peers, are less likely Contextual factors make moving from
income Black and Latino communities in to receive loans, and often pay more outputs to outcome challenging for
Chicago but represent a tiny portion of when they do. This holds true even when CDFIs. Most are relatively small, so it’s
the market. There continues to be an controlling for credit scores. difficult to understand a CDFI’s role in
essential local role for CDFIs • Novel Approaches to Addressing the community-level outcomes. Gathering
Racial Wealth Gap for Entrepreneurs – outcome data from borrowers remains
• Absorptive capacity – Some resource intensive
ecosystems have more absorptive There is much need for additional
capacity, meaning they are more able to experimentation in this area, but there • Deeper Understanding – There is a need
make the most of new capital. INVEST are emerging ideas for addressing the for more external evaluations carried
South/West and other local initiatives are effect of the racial wealth gap on small out by academic and research personnel
cultivating hubs of absorptive capacity. business owners of color. to move closer attribution models for the
CDFI field.
Sources: Revolution Impact secondary research and synthesis; full research review and
bibliography included in Leadership Team meeting materials dated August 26, 2020.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 29Strategic Direction Summary Strategic Themes Articulating Strategic Direction Executing on Strategic Direction Knowns and Unknowns 12/4/2020 Allies for Community Business │ 2021 - 2023 Strategic Direction 30
Aligning for Outcomes: 2021 – 2023
Strategic Direction is focused on three
strategic themes that drive Mission and
Vision
Create Meaningful Client Outcomes
The organization’s success is that of its clients, their businesses,
and the families and communities that rely on their daily efforts.
Engage Deeply in Communities
The organization will also be connecting more deeply in targeted
communities in order to drive both social and internal outcomes.
Build a Strong and Sustainable Organization
A4CB is committed to building a financially strong, operationally
sound, data-informed, and talent-driven organization in order to
deliver on client outcomes.
12/4/2020 Allies for Community Business │ 2021 - 2023 Strategic Direction 31The plan both articulates strategic direction and discusses how to
execute on the strategic direction.
EXECUTING ON STRATEGIC
ARTICULATING STRATEGIC DIRECTION DIRECTION
ADVANCING
OUTCOMES WE VISION,
GUIDING EXPECT TO MISSION, PRIORITY PROGRESS
ASPIRATIONS ACHIEVE AND INITIATIVES INDICATORS
OUTCOMES
Vision and Mission along with Results Frame that identifies Summary of planned Prioritized initiatives that Recommended quantitative
ideal future states for A4CB, what outcomes A4CB will geographies, offerings, will advance Results Frame indicators of how progress
its clients, and the plan to achieve customers, and channels outcomes can be measured on Results
communities where it works Frame outcomes
Outcomes inform strategic What is new and changing
choices and measurement and what is staying the
approach same across offerings
The strategic direction complements and informs 2021 budget and operational planning.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 32GUIDING ASPIRATION
Vision and Mission are the foundation for the strategic plan.
Vision │ Entrepreneurs from any background can start and grow
businesses that create wealth for their families and communities.
Mission │ Allies for Community Business provides the capital,
coaching, and collaboration entrepreneurs need to grow great
businesses in their communities.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 33GUIDING ASPIRATION
The guiding aspiration includes ideal future states
for A4CB clients, communities, and the organization.
IDEAL FUTURE STATE FOR CLIENTS IDEAL FUTURE STATE FOR COMMUNITIES IDEAL FUTURE STATE FOR A4CB
A4CB clients have access to the capital A4CB communities have abundant A4CB has achieved broad brand
and other resources they need on access to capital and are vibrant, fully- awareness and is the trusted partner of
advantageous terms that fit their stage utilized commercial hubs. choice for clients and partners alike
of business growth. across its footprint.
This is possible through coordination
Client businesses are thriving and among local grassroots organizations, The organization has a robust and
generating resources for the allyship from financial institutions and mission-aligned client base and
community, especially through job capital providers, and engagement with pipeline that enables both ambitious
creation. local residents. social impact and financial self-
sufficiency.
Clients’ business and personal finances Active partnership with government
are strong, enabling readiness for and philanthropy also unlocks capital A4CB delivers on the promise of the
unexpected challenges and providing for the benefit of local communities and ideal future states for clients and
wealth that benefits current and future raises awareness for needed and communities through a diverse,
generations. unique investments. engaged, and passionate team.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 34OUTCOMES WE EXPECT TO ACHIEVE
Expressing outcomes the organization expects to
achieve is the basis for strategic choices and
measurement.
Results Frame (Outcomes)
• The Results Frame incorporates 10 outcomes that are of
highest priority for the organization
• They inform progress towards creating meaningful
change.
• The Results Frame includes both internal/ organizational
outcomes (five) and social outcomes (five) recognizing
that they are interrelated and codependent.
• The Results Frame is not intended to capture all of an
organization's activities, but rather provide ‘flexibility
within a framework’ of what it can achieve.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 35ALLIES FOR COMMUNITY BUSINESS
Vision | Entrepreneurs from any background can start and grow businesses that create wealth for their families and communities.
Create Meaningful Client Outcomes
Strengthen our clients’ businesses by
Reduce funding, knowledge, relationship, Improve the financial position of our
helping them improve operations, attract
Social Outcomes
and service disparities that adversely clients’ businesses by providing the
customers, access markets, grow staff, and
impact underserved entrepreneurs optimal amount and structure of capital
achieve goals
Engage Deeply in Communities
Strengthen partnerships and relationships in the communities Champion the assets, talents, and needs of historically
where we work marginalized entrepreneurs
Internal Outcomes
Build a Strong and Sustainable Organization
Improve operations
Grow and diversify Strengthen financial Foster a dynamic,
through talent, Develop and nurture a
revenues and earned planning, position, and diverse, engaging, and
technology, and high-performing team
income flexibility inclusive culture
measurement
Mission | We provide the capital, coaching, and collaboration entrepreneurs need to grow great businesses in their communities.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 36ADVANCING VISION, MISSION, AND OUTCOMES
To further articulate strategic direction, there are key
changes of how the organization will advance Vision,
Mission, and Outcomes.
GEOGRAPHY CUSTOMERS PRODUCTS AND SERVICES CHANNELS
Concentrate more heavily on Continue to focus on Black, Provide an integrated client Leverage new capital and coaching
East Garfield Park and the rest Hispanic, women, and low- experience around capital, platforms and deepen community
of the West Side of Chicago, income entrepreneurs. coaching, and collaboration. and banking relationships in
while continuing to support underserved neighborhoods.
underserved entrepreneurs
throughout Chicagoland and
beyond.
Additional Chicago community areas, The customer focus remains constant, Offerings are focused on those that help 2020 has forced A4CB to push new
based on demographic makeup with greater intentionality around improve the cash position (revenues and delivery mechanisms for funding,
became a potential focus followed by building the partnerships necessary to expenses) of clients directly and more coaching, and other elements of client
opportunistic supports of reach more prospective clients and broadly improve the operations of their supports. Even with a more
entrepreneurs and business owners ensure A4CB is gathering client insight businesses. All offerings must be concentrated geographic focus, these
outside of Chicago (statewide IL) and to better understand customer informed by client need, what A4CB can new delivery mechanisms are necessary
support of current efforts in Lake segments and needs. raise capital to do, and what A4CB is to reach clients, reach new clients,
County and South Bend (IN) in the uniquely positioned to provide. streamline operations, and get better
near term. data on the outcomes the organization
is achieving.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 37ADVANCING VISION, MISSION, AND OUTCOMES
A4CB will be implementing a modified service model
to drive client outcomes.
Service Model
Term Loans 1:1 Coaching • Clients connect with A4CB through any individual or
Lines of Credit Cohort Coaching combination of products and services
Online content/ training
Grants
• Clients blend products and services based on their
needs and with A4CB’s guidance on the hypothesis
Clients that the right combinations increase likelihood of client
success (e.g., improve revenues) while also improving
Capital Coaching A4CB’s sustainability (e.g., reduce loan losses)
Collaboration Relationships • Clients are stewarded through products and
services by their key contact – an “ally” – who can
bring in specialists as needed
Licensing/ permitting Value chain connections • The service model requires robust data enabled by a
Physical space Prof. services connections variety of platforms
Addl. business services Peer connections
Client promotion
A4CB Family Network
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 38ADVANCING VISION, MISSION, AND OUTCOMES
While many product and service categories will remain
similar, the details and focus will evolve.
Capital – Priority Offerings
2021 Products & Services What’s New or Changing Future Products and Services for R&D
• Loans up to $2,500 • Streamline loan process (reduce time) and improve • Explore offering new borrower benefit
• Loans $2,501 - $25,000 quality of loan applications via LoanWell, time study, features based on servicing capacity
• Loans $25,001 - $100,000 and organizational design and flexibility that can attract
• SBA Community • Increase focus on SBA Community Advantage loans prospective borrowers and create
Advantage Loans and other larger lending opportunities incentives for data sharing
• Term loans and lines of • Integration of all funding clients into LivePlan as a path • Explore loans up to $250,000
credit to improved repayment rates and coaching • Explore offering equity investments
• Improve community-based organization referral with better pricing than current
quality offerings in the market
• Funded grant programs • Streamline design and execution of future grant • Ongoing work with funders to build
programs by creating grant program templates that relevant grant programs for clients and
incorporate lessons from 2020 programs prospective clients
Capital offerings focus on meeting clients’ evolving needs while delivering more efficiently (process) and effectively
(integration with other A4CB offerings) to improve client financial position.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 39ADVANCING VISION, MISSION, AND OUTCOMES
While many product and service categories will remain
similar to today, the details and focus will evolve
(Cont’d).
Coaching – Priority Offerings
2021 Products & Services What’s New or Changing Future Products and Services for R&D
• 1:1 Coaching/ Business • Integration of all coaching clients into LivePlan • Live access to client financials to
Planning (Live) • Adding capacity of experienced coaches and advisors inform coaching and business planning
to support maturing and complex businesses supports
• Formalize milestones in the coaching model
• Bring funding into coaching discussions earlier in the
process
• Cohort-based coaching • Expand Neighborhood Entrepreneurship Lab concept • Partner with incubator programs to
(Live) to additional cohorts identify potential cohort members for
next level coaching supports
• Group webinars (Live) • Address timely business issues with clients via group • Develop A4CB-specific content for on
and On Demand Training webinars demand training purposes
(Prerecorded) • Make on demand training components available to all
clients, rather than just Neighborhood
Entrepreneurship Lab participants
Coaching offerings are focused on building clients’ ability to successfully run their businesses, improve their financial
position, and increase the likelihood of timely loan repayment (reduce loan losses).
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 40ADVANCING VISION, MISSION, AND OUTCOMES
While many product and service categories will remain
similar to today, the details and focus will evolve
(Cont’d).
Relationships – Priority Offerings
2021 Products & Services What’s New or Changing Future Products and Services for R&D
• Value chain partner • Connect clients to potential new customers and • TBD based on early work to formalize
relationships suppliers in a more efficient way value chain partner relationship
support; potential to evolve into a
Services offering
• Professional services • Connect clients to business supports including • TBD based on early work to formalize
partner relationships legal...accounting/ finance, human resources, digital professional services partner
marketing, capital needs, etc. relationships; potential to evolve into a
Services offering
• Client promotion • Promote A4CB clients to help them generate additional
sales
• “A4CB Family Network” • Work with clients to design and develop an approach • Connect A4CB clients through
to formally establishing an A4CB Family Network to technology platform to enhance A4CB
facilitate professional connections, buying, and selling. Family Network
Relationships strengthen connections to clients while also helping to improve client revenues and expenses, meet
critical needs, and extend the reach and awareness of A4CB.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 41ADVANCING VISION, MISSION, AND OUTCOMES
While many product and service categories will remain
similar to today, the details and focus will evolve
(Cont’d).
Collaboration – Priority Offerings
2021 Products & Services What’s New or Changing Future Products and Services for R&D
• Regional Busines Center • Offer business licenses and other services through a • Determine overall value add
new Regional Business Center in partnership with the opportunities of serving in the
City of Chicago Regional Business Center role to
inform related product and services
R&D
• Physical space • Clarify the vision, mission, strategies, operations, and • TBD based on A4CB/ ICNC planning
outcomes of The Hatchery joint venture as the and coordination
incubator approaches capacity, which allows even
deeper investment in West Side food and beverage
entrepreneurs
• Outsourced Solution for • Explore client demand for outsourced professional • Accounting Services
Client Professional serves at a sufficient scale and favorable economics to • Digital Marketing Services
Services justify continued exploration • Human Resources Services
Collaboration services meet immediate client needs and can also help bring new clients to A4CB.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 42PRIORITY INITIATIVES
The A4CB team has identified priority initiatives that
address specific outcomes on the Results Frame.
• Priority Initiatives included are organized by year
Results Frame (Outcomes) when they are expected to commence, based on
current information; all initiatives are associated with
2021 or 2022 with timing to be revised by the A4CB
Leadership Team.
• The Priority Initiatives are not Mutually Exclusive/
Collectivity Exhaustive. Rather, they are focused on
those actions that are necessary to move Results
Frame outcomes beyond day-to-day operations and
current efforts.
• Some initiatives naturally advance multiple
outcomes; for clarity, they are associated with the
outcome they are expected to contribute to the most.
• Priority Initiatives inform budget and operational
planning reflected later in these materials.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 43PRIORITY INITIATIVES
Priority Initiatives
Build a Strong and Sustainable Organization
Build a Strong and Sustainable Organization
Grow and diversify revenues and earned Strengthen financial planning, position, and Improve operations through talent,
income flexibility technology, and measurement
2021 2021 2021
• Design and Deploy Individual Giving • Implement New Accounting System – • Complete Technology Audit – Retain
Strategy – Leverage individual giving Implement new accounting package to outside vendor to complete technology
strategy as a new source of unrestricted support more robust financial planning and audit; improve technology spend, usage,
grant revenue. forecasting. security, and management.
• Research Outsourced Client Service • Commit to Ongoing Modeling and Planning • Develop Data Strategy – Retain outside
Strategy – Complete R&D on what services – Develop organizational approach to timely vendor to develop data strategy to enable
A4CB can offer to clients on a fee-for-service and robust financial modeling and planning, robust data-informed decision-making.
basis, assessing economics and demand. starting with core lending business and then • Complete Loan Process Time Study –
extending to other parts of the organization. Complete time study to improve loan
Modeling and planning should also inform processing efficiency and quality.
2022 go/ no go decision making on programs.
• Deploy Outsourced Client Services – Based • Optimize Office Administration – Ensure
• Engage Team on Financial Understanding supports are in place cost effectively.
on 2021 research, execute on offering – Develop financial engagement approach to
outsourced services to clients. build team understanding of operating • Pursue Hatchery Optimization – Update
model and economics. shared strategy and resource allocations
across A4CB and ICNC for The Hatchery.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 44PRIORITY INITIATIVES
Priority Initiatives
Build a Strong and Sustainable Organization (Cont’d)
Build a Strong and Sustainable Organization
Develop and nurture a high-performing team Foster a dynamic, diverse, engaging, and inclusive culture
2021 2021
• Improve Human Resources Administration – Review, vet, and • Review and Refine Staff Engagement Survey – Develop and deploy
retain firm to support human resources administration; determine revised staff engagement survey based on identified progress
internal human resources staffing to complement outsourced indicators.
partner. • Review and Affirm Core Values – Develop approaches internally to
• Update Succession Planning – Develop succession planning for key engage and strengthen organizational commitment to Core Values.
organizational roles with both prospective internal and external
successors identified.
• Review and Refine Performance Planning – Update performance
review and management approach based on new strategic direction.
• Attract Additional Board Talent – Recruit, onboard, and cultivate
eager new board members who offer the relationships and
experiences A4CB will most value.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 45PRIORITY INITIATIVES
Priority Initiatives
Build a Strong and Sustainable Organization (Cont’d)
Build a Strong and Sustainable Organization
Outcome Priority Initiative 1Q2021* 2Q2021 3Q2021 4Q2021
Grow and diversify Design and Deploy Individual Giving Strategy
revenues and earned Research Outsourced Client Service Strategy
income
Strengthen financial Implement New Accounting System
planning, position, Commit to Ongoing Modeling and Planning
and flexibility Engage Team on Financial Understanding
Complete Technology Audit
Improve operations Develop Data Strategy
through talent,
Complete Loan Process Time Study
technology, and
Optimize Office Administration
measurement
Pursue Hatchery Optimization
Improve Human Resources Administration
Develop and nurture Update Succession Planning
a high-performing
Review and Refine Performance Planning
team
Attract Additional Board Talent
Foster a dynamic, Review and Refine Staff Engagement Survey
diverse, engaging, Review and Affirm Core Values
and inclusive culture
*Start quarter of strategic initiatives is indicated.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 46PRIORITY INITIATIVES
Priority Initiatives
Engage Deeply in Communities
Engage Deeply in Communities
Strengthen partnerships and relationships in the communities where we work
2021
• Optimize Community Based Organization (CBO) Referrals – Work with CBO partners to develop clear criteria for referrals for any provided
services in order to increase the likelihood that A4CB can be supportive of referred clients.
• Commit to Referral Partner Communications – Improve feedback to referral partners on the disposition of their referral and outcomes that
referred clients experienced.
• Plan for A4CB Family Network – Complete internal and client-informed planning of A4CB Family Network concept; determine go/ no go.
2022
• Implement A4CB Family Network – Depending on earlier planning work, A4CB Family Network implementation would commence in 2022.
• Develop Partnership Strength Matrix – Create MOUs with trusted partners, through which A4CB will improve feedback on the referred clients’
outcomes.
• Develop Referral Partner Self-Service Strategy – Explore approach to have partners make referrals directly online and for them to track data
on the path their referral clients are taking within A4CB supports.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020
47PRIORITY INITIATIVES
Priority Initiatives
Engage Deeply in Communities (Cont’d)
Engage Deeply in Communities
Champion the assets, talents, and needs of historically marginalized entrepreneurs
2021
• Complete Renaming/ Branding – See A4CB/ Greater Good Studio developed project plan to support launch of new name and brand.
• Continue to Position the New Brand – Support of renaming and branding will carry throughout year with a coordinated and resourced
marketing plan.
• Promote Clients Proactively – Active awareness building and promotion of client businesses including client mapping, featured small
businesses and connections, if pursued, A4CB Family Network
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 48PRIORITY INITIATIVES
Priority Initiatives
Engage Deeply in Communities (Cont’d)
Engage Deeply in Communities
Outcome Priority Initiative 1Q2021* 2Q2021 3Q2021 4Q2021
Strengthen Optimize Community Based Organization (CBO) Referrals
partnerships and
relationships in the Commit to Referral Partner Communications
communities where Plan for A4CB Family Network
we work
Complete Renaming/ Branding
Champion the assets,
talents, and needs of Continue to Position the New Brand
historically
marginalized
entrepreneurs Promote Clients Proactively
*Start quarter of strategic initiatives is indicated.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 49PRIORITY INITIATIVES
Priority Initiatives
Create Meaningful Client Outcomes
Create Meaningful Client Outcomes
Reduce capital, coaching, collaboration disparities that adversely impact underserved entrepreneurs
2021
• Implement LoanWell – Implement new loan origination system which will be live at the end of January 2021. Implementation tied to Loan
Process Time Study as well.
• Invest in LivePlan – Add more clients to LivePlan platform.
• Launch Regional Business Center – Begin providing city licenses and permits, developing a new source of client relationships and connections
to local community organizations and partners.
• Evaluate Online Training Options – Assess cost effectiveness of existing training providers relative to ‘grow your own’ online training content
strategy or alternative providers.
• Develop Program Strategy For Grants – Determine internal team and process for managing program grants and a process by which grant
opportunities are pursued.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 50PRIORITY INITIATIVES
Priority Initiatives
Create Meaningful Client Outcomes (Cont’d)
Create Meaningful Client Outcomes
Improve the financial position of our clients’ businesses by providing Strengthen our clients’ businesses by helping them improve operations,
the optimal amount and structure of capital attract customers, access markets, grow staff, and achieve goals
2021 2021
• Track Client Outcomes – Via LoanWell, LivePlan, NeonCRM, and • Design and Activate Ally Role – Design “Ally” job function as
related data sources, formalize approach to client outcomes tracking business advisors who can guide clients through the full portfolio of
and related value exchange between A4CB and clients for data. products and services offered by A4CB.
• Track Client Milestones – Formalize approach and data collection
“Develop Data Strategy” is a precursor to Track Client Outcomes. strategy for tracking client milestones and begin to explore how
milestones correlate with outcomes.
• Conduct Client Engagement Survey – Revise or develop client
engagement survey to capture critical client insights.
2022
• Explore Program Evaluation – Initial exploration of formal
evaluation of A4CB’s programs and to test hypothesis of how
combinations of service improve client and A4CB outcomes.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 51PRIORITY INITIATIVES
Priority Initiatives
Create Meaningful Client Outcomes (Cont’d)
Create Meaningful Client Outcomes
Outcome Priority Initiative 1Q2021* 2Q2021 3Q2021 4Q2021
Reduce capital, Implement LoanWell
coaching, and Integrate LivePlan
collaboration
disparities that Launch Regional Business Center
adversely impact Evaluate Online Training Options
underserved
entrepreneurs Develop Program Strategy For Grants
Improve the financial Track Client Outcomes
position of our clients’ Dependent on “Develop Data Strategy”
businesses by
providing the optimal
amount and structure
of capital
Strengthen our clients’ Design and Activate Ally Role
businesses by helping
them improve Track Client Milestones
operations, attract
customers, access
markets, grow staff, Conduct Client Engagement Survey
and achieve goals
*Start quarter of strategic initiatives is indicated.
Allies for Community Business │ 2021 - 2023 Strategic Direction 12/4/2020 52You can also read
