The document provides an overview of a presentation by Donny Shimamoto on managing information for impact in nonprofits. Donny is the founder and managing director of an IT consultancy focused on nonprofits. He has expertise in IT management and is a recognized speaker on using information and technology to strengthen nonprofits. The presentation covers developing an IT strategy aligned with mission and business needs, understanding the value of information and how to collect the right data, developing an information architecture and enterprise architecture, and selecting information systems.
2. Speaker Biography
Donny C. Shimamoto, CPA.CITP, CGMA
Donny Shimamoto, CPA.CITP, CGMA, is the founder and managing director of
IntrapriseTechKnowlogies LLC, a CPA consultancy focused on organizational
development and advisory services for the middle market and nonprofits.
Donny is a recognized national expert in IT management and international
author/speaker on business intelligence initiatives. Donny helps many
nonprofits by bridging accounting and IT to strengthen organizational
governance and risk management, improve business processes through
technology, and increase the effectiveness of decision-making through
business intelligence and evidence-based management.
In addition to being a frequent speaker for the Nonprofit Technology Network
(nten.org), Donny is the chairman of the AICPA’s Information Management &
Technology Assurance Executive Committee and past Governing Council
member. Donny was recognized as one of the 2013 Top 100 Influential
People by Accounting Today, Top Thought Leaders by CPA Practice Advisor in
2012, 2013 & 2014, received the 2009-2010 President’s Award from the
Hawaii Society of CPAs, was named to CPA Technology Advisor’s 40 Under 40
list in 2007 & 2009, and was also a Hawaii Top High Tech Leader in 2004.
Donny works with a variety of nonprofits including foundations, social service
agencies, educational institutions, and membership associations.
10. Shifting the Sustainable Value Chain
A shift is required in the Sustainable Value
Chain of nonprofit competencies
Historically nonprofits could be very operationally
driven. As the need for transparency and impact
increases, nonprofits must be more strategic to
be sustainable and achieve their mission10
Adapted from: CIMA’s Sustainable Value Chain of Organizational Competencies
Mission,
business
strategy, and
constituent
needs
Brand, values
and
organization
positioning
Develop
service
offerings and
value/benefit
proposition
Obtain
funding and
source
resources
Deliver
services and
measure
impact
Constituent
satisfaction
and retention
Operations driven
Mission/strategy driven impact
11. Benefits of Better Information
The potential benefits from business intelligence
(better information) depends on your ambition.
11
13. • Information is the most important asset
of an organization, after its people.
• Collecting the “right” information is
essential to making better decisions.
• Evidenced-based decisions are usually
better than “gut feel” decisions.
Understanding the
Value of Information
13
14. Information is an Important Asset
Nonprofits use better information to
– Increase reach and highly engage its donors
– Understand the needs of its service recipients
– Quantify the outcomes and impact it is having
on its constituents
As we transition from the Information Age
to the Knowledge Age
– Better information = Competitive advantage
– Competitive advantage in the nonprofit world
can mean more funding and better outcomes
14
15. Collecting the “Right” Information
It is important to ensure that you’re
gathering the “right” information and
tracking the “right” metrics
– Tracking the wrong metrics can result in
undesired outcomes
– Tying performance to the wrong metrics can
incent the wrong behaviors
– Both of the above can lead to incorrect decisions
Consider different types of information
– quantitative and qualitative data
– positive and negative indicators
15
16. Collecting the “Right” Information
Management Information
– Financial Statements – Managerial/Budget
– Key Performance Indicators
– Key Predictive Indicators
Tactical Information
– Service delivery (e.g. # of constituents served)
– Service quality (e.g. constituent satisfaction)
– Messaging/outreach (e.g. # opens/open rate)
– Fundraising (e.g. total $, $ per donation)
– Outcomes indicators
16
17. Evidence-based Decision Making (EbDM)
EbDM is generally better than “gut feel” decisions and
evidence can be gathered to validate “gut feel” decisions
17 Source: Evidence Based Decision Making: using Business Intelligence to drive value, Bernard Marr, Management Accounting Guideline CMA, AICPA, CIMA 2009
18. • How you collect, store, maintain, archive,
and dispose of your data is important.
• Use an Information Architecture model to
manage the flow of information.
• Use an Enterprise Architecture model to
visualize the processing of information.
Developing Your
Enterprise Architecture
18
19. Understanding the Information Life Cycle
All information follows a lifecycle and must
be managed throughout its lifecycle
19
Source: Information Integrity, AICPA, January 2013
Source: Information Integrity, AICPA, January 2013
22. Understanding the Processing of Info
Use an Enterprise Architecture model to
understand the processing of information
22
General
Ledger
Sage
Budgeting &
Forecasting
CPM
Accounts
Payable
e-AP
Cash
Disbursements
e-AP Sage
Corporate
Expense
Reporting
P-Card
Contract
Administration
DWFM
Case
Operations
SMS
Board
Oversight
ExtNet
Case
Collaboration
CPortal
Operational
Reporting
ODS
Budget
· Budget & Forecasts
Plan
· Estimates & Intentions
· Soft Commitments
· Hard Commitments
· Cash Flow Projections
Actual
· Expenditures
Performance Management
Financial
Budget
· Corporate Strategic Plan Goals &
Targets
· Program Strategic Plan Goals &
Targets
Plan
· Program Goals & Targets
· Contract Goals & Targets
· Other Quantitative Targets
Actual
· Actual performance measures
· Actual outcomes measures
Non-Financial
Management
Oversight
Intranet
Case Document
Management
SMS
CPM
Commitments
Management
CPM
Employee
Expense
Reporting
e-Exp
Timekeeping
SMS
SMS
Quality
Assurance
SMS
Sage
Constituent
Management
CRM
Fiscal
Program
Management
Intranet
Payroll
ADP
HR
DMS
ADP
23. Understanding the Processing of Info
Capture major operational processes (rectangles),
supporting systems (cylinders) and flow of data (arrows)
23
24. Understanding the Processing of Info
Look at management needs, including the non-
financial information needed to improve program
management and achieving of outcomes/impact
24
25. Understanding the Processing of Info
Obtain an understanding of the flow of information
needed to optimize the organization’s performance
25
26. Using the Enterprise Architecture
An Enterprise Architecture model allows
you to see the entire org on one page
– Use it to analyze the current state of the org
– Use it to visualize the future state of the org
Identify the functional needs of the org and
the systems supporting those needs
– Identify which areas may not be optimized or
have additional complexity
– Assess the impact of any information system
changes to business processes and info flow
26
27. • Your Mission, IT Strategy, Information
Needs, and Information Architecture drive
your Information Systems selection.
• Each element of the Information
Architecture has different types of
systems supporting it; some systems
support multiple elements.
Selecting Your
Information Systems
27
32. Integrating Information Systems
Integration Options
– Manual – usually via batch export and import
using Excel or CSV file
– Automated Point-to-Point – direct system to
system usually using APIs, web services, or
back end database triggers
– Automated Synchronization Tool – intermediary
tool connects to various systems usually for
pre-defined data exchanges
– Automated Hub & Spoke – data warehouse or
master data serves as “hub” and “spoke”
systems report change to and query changes
from “hub”
32
34. To Customize or Not to Customize…
Customization is often a bad word
– In general it results in higher total cost of
ownership over the long run
Differentiate between:
– Custom Configurations – works within the
built-in functionality of the vendors system
(e.g. custom fields and macros)
– Platform Customizations – works within the
vendor’s application platform to add tables or
functionality to the purchased system
– Custom Development – adding functionality
developed “from scratch” and integrated into
or along side the purchased system
34
35. To Customize or Not to Customize…
35
Source: Idealware via NTEN Technology Leadership Academy
Use of broad CRM system with
customizations to meet specific needs
36. To Customize or Not to Customize…
36
Source: Idealware via NTEN Technology Leadership Academy
Use of best of breed in two areas and
custom app and API for integration
37. Tie Back to Enterprise Architecture
Map your info sys strategy and customization decisions back
to your Enterprise Architecture to validate the “big picture”
37
General
Ledger
Sage
Budgeting &
Forecasting
CPM
Accounts
Payable
e-AP
Cash
Disbursements
e-AP Sage
Corporate
Expense
Reporting
P-Card
Contract
Administration
DWFM
Case
Operations
SMS
Board
Oversight
ExtNet
Case
Collaboration
CPortal
Operational
Reporting
ODS
Budget
· Budget & Forecasts
Plan
· Estimates & Intentions
· Soft Commitments
· Hard Commitments
· Cash Flow Projections
Actual
· Expenditures
Performance Management
Financial
Budget
· Corporate Strategic Plan Goals &
Targets
· Program Strategic Plan Goals &
Targets
Plan
· Program Goals & Targets
· Contract Goals & Targets
· Other Quantitative Targets
Actual
· Actual performance measures
· Actual outcomes measures
Non-Financial
Management
Oversight
Intranet
Case Document
Management
SMS
CPM
Commitments
Management
CPM
Employee
Expense
Reporting
e-Exp
Timekeeping
SMS
SMS
Quality
Assurance
SMS
Sage
Constituent
Management
CRM
Fiscal
Program
Management
Intranet
Payroll
ADP
HR
DMS
ADP
38. • Follow the methodology for a structured
approach to system selection.
• Go past reporting and analysis for impact.
• Better information increases the
sustainability of the organization and its
ability to achieve its mission.
Managing Information
for Impact
38
39. Managing Information for Impact
Recap of methodology
– Identify your information needs (IN)
– Understand your information architecture (IA)
– Understand your enterprise architecture (EA)
– Visualize your future state IA & EA
– Strategically select your information systems (IS)
– Implement the (new) information systems
Remember that things change over time
– Reassess your IN, IA, and EA periodically
– Reassess IS capabilities periodically
39
41. Impact Must Be Mission/Strategy-Driven
Don’t let only Operations drive information needs
Drive information needs from the org’s
mission and strategy to increase org
sustainability and overall IMPACT.
41
Adapted from: CIMA’s Sustainable Value Chain of Organizational Competencies
Mission,
business
strategy, and
constituent
needs
Brand, values
and
organization
positioning
Develop
service
offerings and
value/benefit
proposition
Obtain
funding and
source
resources
Deliver
services and
measure
impact
Constituent
satisfaction
and retention
Operations driven
Mission/strategy driven impact
42. Thank you for your
attention and participation!
Any Questions?
Donny C. Shimamoto, CPA, CITP, CGMA
Email = donny808@cpa.com
Voice = (808) 735-8324
Twitter = @donnyitk