Girl Scouts Heart of New Jersey

5 Year Strategy Plan

November 4, 2017

Executive SummaryThe Girl scouts Heart of New Jersey supports the growth of future girl leaders. We currently provide valuable leadership skills to over 17,400 girls representing 8.4% of the eligible population within our council footprint.

The council has a strong and liquid balance sheet and carries no long term debt. The Council income statement reveals stagnant revenue growth, concentrated sources of revenue. The council has experienced negative changes to operating assets (Losses).

Like every organization, GSHNJ has strategic opportunities to drive growth. Membership in the council has dropped significantly since 2012. The leadership team has identified a strategy to designed to drive membership and associated operating results.

The Program delivery universe is changing. Successful councils, in conjunction with GSUSA, have embarked on ambitious STEM strategies. STEM drives awareness of more technical backgrounds. STEM also attracts fundraising from various sources.

In order to drive future sustainability, GSHNJ will need to drive membership, diverse revenue sources and expand programming capabilities.

The following pages contain a path to grow membership to 25,000 in five years. It will require changes to how and where we do business. In addition, each “department” has provided input on how they seek to support the expanded organization. The product, retail, camp and Fund Development teams will provide significant growth opportunities.

Trend of Membership

Overall membership including, girl, adult and lifetime has fallen 22% from 36,000 to 28,000 Girl membership has experienced largest decline

(-29.1%), followed by adult(-10.6%) Lifetime membership has increased 18.3%

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2012 2013 2014 2015 2016 2017 2018

GSHNJ Membership by Year

Girl Adult Lifetime

Important Trends

Girl membership has steadily declined each year since 2012. Since that time our Girl membership has fallen 29% from 24,572 to 17,432

Revenue since 2009 has decreased ~$100K, representing a CAGR of -0.2% 2016 revenue and change in assets excludes a one time gains related to Eagle Island sale ($2.0M)

Revenue since 2014 has grown, albeit slightly, driven by increased product sales and Grant revenue Net change in assets has shown more variation. In 4 of 5 past years the council lost money (excluding EI gain)

Sustainability hinges on membership growth driving positive Net change in assets

$6,068,835 $6,315,242

$6,631,073 $6,305,621

$5,908,876 $5,454,273 $5,600,355 $5,470,724

$5,781,577

0

5,000

10,000

15,000

20,000

25,000

30,000

($1,000,000)

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 Forecast

GSHNJ Financials and Membership

Annual Revenue Net change in Assets Girl Members

Revenue by Source

-41.9%

-23.8%

-16.4%

-7.1%

-3.1%

-0.8%

52.1%

Grants and giving

Retail Sales

Investment Income (Int,real&Unreal)

Camp fees

Rental income

Product Sales

Program fees

Revenue Change since 2009

Grants and giving

9%

Program fees9%

Camp fees16%

Product Sales58%

Retail Sales5%

Investment Income (Int, real&Unreal)

1%Rental income

2%

2017 Revenue by Source

74% of our revenue comes from 2 sources; Product sales and camp registrations. Revenue from these 2 sources has declined 2.26% since 2009

Growth in Program fees represents Council service fee ($15)

Fund Development Trend

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017Forecast

FD Revenue as a % of Total Revenue

Fund Development revenue has fallen to $526K and now comprises (9.1%) of total revenue

According to GSUSA most recent council dashboard, FD is the largest non-cookie source of revenue for councils. Nationally, FD revenue fell 1%. GSHNJJ FD revenue actually grew 10% in same time period

$904K

$526K

Impetus for Change Given the shrinking membership and stagnant income statement, the council

will need to make strategic course corrections. Membership growth and depth are keys to successful council performance

Growing membership leads to high camp registrations Growing membership drives higher participation in product sales, our #1

source of revenue

Membership

Higher SalesSustainability

Council growthThe demographics of the council service area is changing and will impact our membership if we do not change how and where we recruit members.

Population growth is occurring in the eastern part of our council where we have the lowest penetration. In areas where our penetration is the highest, the population is expected to be flat or decline.

Perhaps most importantly, the opportunity exists for the council to grow membership beyond historic levels. Achieving membership of 25,000 girls in 5 years will require thoughtful penetration of these “new” communities:

Multi lingual capabilities People Collateral (e.g. guides, membership paperwork, etc.) Website and content

Physical presence Easily accessible space by public transportation

• Our plan is to grow girl membership to 25K EOY 2022 by:

– Holding current 14.1% market share in non-growth areas (decline of 600+ members)

– Growing market share from current 2% level in growth initiative areas to 10% range

5 Year Membership Plan

3.9% 5.7% 7.7% 9.7%

104.6

105.9

107.3

108.6

102

104

106

108

110

0%

2%

4%

6%

8%

10%

12%

2019 2020 2021 2022

Gir

l Po

pu

lati

on

(K

)

Mar

ket

Shar

e

Growth Initiative Area Share & Girl Population

Share Population

$0.0

$0.8

$1.6

$2.4

$3.2

2019 2020 2021 2022

$ M

illio

ns

Incremental Revenue

Cookies CSF

Background• Population growth occurring in areas with

lowest girl market share• Risk associated with decline occurring in

areas with greatest share and product sales• Growing share in markets with population

growth imperative to health of council• Incremental product sales and council service

fees can add millions to council’s top line

Multi-Cultural Snapshot within GSHNJ

NJ is ranked as the 4th

most diverse state in the U.S

30.8% of NJ total population are native

speakers of a non-English language

Jersey City is the second most diverse city in the

entire country

GSHNJ is home to 3 of our states largest and most diverse cities; Newark,

Jersey City and Elizabeth

The most popular languages in our council

after English are; Spanish, Portuguese and Arabic

0-2 Months

• Multi-Cultural Web content goes live

• Spanish marketing and recruitment materials approved and accessible

• Internal staff with language capabilities to field calls

• Staff training of Language Line

• Develop and post Multi-Cultural Specialist position

3-6 months

• Launch Language Line phone and app support

• Recruit and hire Multi-Cultural Specialist

• Develop multi-prong approach in our three most diverse communities; Elizabeth, Jersey City and Newark

6+ months

• Multi-Cultural Specialist to create fresh web content, materials and events geared towards a specific community

• Provide one-on-one support to families with language needs

• Introduce other aspects of Girl Scouting to these families, such as; camp, programs and product

Multi Cultural timeline

5 Year Plan

Over the next 5 years, our population will continue to grow and diversify, particularly in our urban areas.In order to engage and support our ever-changing population GSHNJ must be invested in the following areas:

• Organizational Structure

• People

• Marketing and Communications

• Girl Experience

Multi-cultural initiative to transition to a department within GSHNJ

Multi-cultural department to have employees that have language capabilities in Spanish, Portuguese, Arabic and Mandarin

Investment in multi-cultural appropriate materials in order to best support our members. Materials include; web content, program and camp guides and curriculum and training

Offerings of family oriented activities and programs within diverse communities in order to build the GSHNJ brand

• GSHNJ currently serves an adult membership of over 8,600 members

– YTD we are running a 5.2% increase in adult renewals vs. LY (71% retention rate)

– Our new adult membership is declining vs. new adults LY (-37%, approx. 600)

Volunteer Engagement

89% 91% 89%88% 90% 90%

0%

20%

40%

60%

80%

100%

Relationshipw/Daughter

Sense of Purpose Sense ofAccomplishment

Good News – Share the Story

16

13

5

8

11

14

17

20

GSHNJ National

Net Promoter Score

47%

15%

38%

54%

15%

31%

0%

15%

30%

45%

60%

Fulfilled Fulfilled and Frustrated Frustrated

Opportunity

40%49% 51%

0%

20%

40%

60%

80%

100%

Digital Tools Program MaterialsSupport & Guidance

Help Remove Barriers

Property ReviewThe council currently operates 3 service centers. They are owned and carry no debt.

• However, the buildings are in poor to fair condition—spend of $160K/annually to maintain and operate

• One property generates rental income

Consolidating footprint into 2 locations could potentially save between $42,000-$60,000/year

Montclair Westfield North Branch

Appraised Value $1.93M $1.45M $0.83M

$/sq. foot $195 $138 $87

Staff 12 14 21

2017 Maint. Costs $42k $60K $59k

Cost/Employee $3,500 $4,285 $2,800

2017 Rental inc. $0 $23k $0

% of Retail Sales 22% 46% 32%

Property Appraisal Summary

Montclair Westfield North Branch

Land (Acres) 0.52 0.49 2.56

Building Sq. Ft 9,900 10,500 9,516

Strength • Good frontage• Parking

• Good frontage• Parking

Location Parking Building well

Maintained

Weakness • Floor Plan• No Elevator

Downstairs bathroomout of order

Building is dated Tertiary location in a

primarily residential area

High Market Vacancy

Valuation $1.93M $1.45M $0.83M

Insurance (Bldg. & Contents)

$0.678M $0.716M $2.1MIncludes $330K for computer hardware

Alternative Property OpportunitiesObjective: Promote girl scouting opportunities in council footprint where we currently have low penetration.

Current Service Center locations vs. potential membership

Solution: Deploy to flexible, low cost locations within growth initiative areas.

Operating Model Mall Space Urban Storefront Property Swap

Concept Multi purpose space in a mall

Rent from/partner with other seasonal tenant

Sell one/more existing properties and purchase property in initiative area

Value Proposition Ability to recruit members, sell camp and products

Ability to recruit and run programs

Cost $6,000-$7,500 $0-$12,000 TBD

Background• Current service center locations reflective of legacy

council alignment• Need greater presence “on the ground” in growth

initiative areas • Lower propensity for car ownership/use of public

transportation requires thoughtful placement strategy• Need space for volunteer meetings, programs and

council staff

Retail Recap

22%

46%

32%

Sales By Location

Montclair Westfield North Branch

2018 Plan Stores will be open 12 months (vs 10.5

today) Increase UPT by providing sales training

to all shop staff Increase virtual capabilities (Kiosk,

web-site) Increase merchandise profitability

through GSHNJ merchandise Convenient retail locations within our

initiative areas (mall kiosks, seasonal leases)

Retail

Operational Improvements underway

• Inventory – Quarterly inventory counts

• August, December, March and May• Purchase inventory scanners and software

– Stockroom and Floor Standards• Each location should have consistency in organization standards• Daily checklist for retail team

– Tracking inventory in real time• Timely receipt and count of all orders• Inter-location transfers to be logged daily in Opsuite

• Selling is Service– Retail Manager to work one-on-one with team to identify areas of

opportunity and growth for each individual– Create a consistent experience for all customers regardless of which

location they shop in– Identify additions functions that would add to the customer experience in

store- Ex: registration support, meeting activity ideas

• Complete additional work on camp master plan

• Continue to drive rental business expansion to monetize investment• Schools• Community group

partnerships

• Monetize new building by fostering fund development/”free rentals”

• Continue to develop rental business

• Build ADA compliant bath house/flush toilet facilities

Camp DeWitt

Strategic Priorities

1. Maximize 2018 summer camp attendance

2. Monetize new building

3. Fully leverage camp GSHNJ rentals/programs

Intermediate Term

• Complete construction of new building

• Develop marketing plan to maximize 2018 summer camp attendance

• Optimize transportation routes

• Further engage SUs/troops to drive camp rental/programs

Short Term Long Term

• Complete additional work on camp master plan

• Initiatives to drive higher attendance/more flexibility• Pool• Dining

• Reimagining of “lower camp”:• CIT cabins• Townley Hall

• Continue asset preservation initiatives:• Evergreen• Heronwood• Berryhill

• Greater ADA access

Camp Hoover

Strategic Priorities

1. Retain focus on strong summer camp

attendance, programs and rentals

2. Asset preservation!

3. Upgrades/master plan initiatives to expand

options/flexibility

Intermediate Term

• Short term asset preservation and safety initiatives

• Upgrades to waterfront area (ex. restroom)

• Optimize transportation routes

• Further engage SUs/troops to drive camp rental/programs

Short Term Long Term

• Complete additional work on camp master plan

• Develop ability to handle larger day camp attendance as we work “Nine Initiative” strategic plan

• Upgrades to program space (STEM initiative)

• Continue asset preservation initiatives

• Expand operational window past October

The OVAL

Strategic Priorities

1. Asset preservation

2. Infrastructure upgrades to drive greater

programming flexibility

3. Ability to handle higher weekly summer camp

attendance

Intermediate Term

• Short term asset preservation initiatives• Electrical• Plumbing• Access areas

• Improve summer camp operations, programming

• Optimize transportation routes

• Camp rental/programs

Short Term Long Term

Program space for council programs, rentals, and troop meetings; targeting troops/SUs in local area especially

Available for overnights as initial steps in Outdoor Progression.

Recent renovations accomplished through funding and manpower from Roselle Rotary Club.

Next steps• Execute grant from Westfield United Fund

to create rentable “program kits” with focus on environmental and outdoor curricula, and install ADA-compliant fire pit.

• Determine rental process and rates for members vs. non-members.

• Determine asset management system.• Promote, market, advertise

Troop 6000• An expansion of GSGNY’s homeless

troop initiative.• Offers programming in community

shelters that provides consistency and community support for girls with unstable housing situations.

• Funding opportunities….

Girl Scouts Beyond Bars• A revival of a legacy program that was retired when funding dried up.• Offers programming that strengthens the mother-daughter bond, empowers girls to create a

positive vision for themselves and their futures, and reduces the impact of incarceration.• Two-part program:

• working with mothers inside Edna Mahan Correctional Facility to plan events when the girls come to visit. Facilitating those events monthly.

• creating and delivering a regular troop experience for girls outside of their visits to the correctional facility.

• Funding opportunities….

Requires one new FTE to recruit, administer, deliver, publicize, and pursue funding for both initiatives.

STEM Center at The OVAL• Repurpose one cabin at The OVAL

to be dedicated solely to STEM program delivery.

• ComcastMobile STEM Unit

• Short term: van to allow mobile program transport.

• Intermediate term: mobile STEM space (tiny house? Bus? RV?) to allow program delivery inside the unit.

• PSE&G, AAUW, Janssen, PNC Foundation, Keane UniversitySTEM Council

• Advisory committee of community partners, potential donors, educators, subject matter experts

• Bell Labs, Verizon Foundation, ComcastDevelop forward-thinking curricula and partnerships, especially in the areas of

• Artificial intelligence • Artificial reality• Virtual reality • Holograms• Nanotechnology

Requires one new FTE to steer the STEM initiative, explore and pursue partnerships, and deliver “mobile” programming on a regular schedule.

Provide rich, robust incentive plans to drive participation and sales

<1 Year

Cookies Fall Product

1-3 Years

>3 Years

Switch vendor to M2 Media from QSP +Profit Guaranteed 1st year

improvement Drive Online customer usage

Introduce Catalog approach to incentives

Increase Cross-departmental incentives Relocate Cupboards to extend reach

Reduce Sale period to decrease volunteer burnout

Direct to parent material mailing Troop/Program focused incentives

Grow digital resources Develop self-directed/on-demand

training curriculum Timely and relevant training videos (JIT)

Reevaluate Ashdon farms vs. trophy nut Create virtual forums Troop/Program focused incentives More volunteer appreciation

items/events

Reevaluate LBB vs. ABC More volunteer appreciation

items/events

Product Growth

80%

4% 5%

11%

2017 Cookie sales by order type

Initial Order Digital Cookie Gift of Caring Cupboards

86%

6%

2%3% 3%

2017 Fall Product Sale by order type

Paper Nuts Online Nuts Paper Magazines Online Magazines Gift of Caring

87,536 92,234 83,113

1,228,339 1,197,018 1,318,691

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2015 2016 2017

YOY Product Sales (Units)

Product Cookie

Product Comments

Overall Units sold has increased 6.5% 80% of orders come from traditional

card/paper ordering Digital cookies (4% of sales) has grown 3X

since 2015 Cookie Gift of caring has grown 2X

Product Sales Trends

Department Goal Description Timing Cost

Finance Build Scale Third party G/L training (Abila)

3 Months $5K

Customer Care Ensure Quality customer experience

Call recording equipment 1 Year $5K-$10K

Human Resources

Applicant Tracking system Help identify and track candidates

6 Months $5K

Streamline recruiting & onboarding process

Integrated Applicant Tracking System and HRIS

3 Months $5K

Attract, motivate, grow and retain talent to advance our mission and strategic plan

Develop best-in-class New Hire Orientation Process

1 year TBD

Provide better employee management tools

Conduct Strength Finder Assessment

6 Months $3K

Build scale to HR and provide employees a repository for critical information

Employee Resource Center (web based central repository for policies, procedures, programs, benefit information, forms, perks, etc.)

6 Months $10K

Actively listen to council staff Engagement/pulse survey's 6 months (ongoing)

$2K

Infrastructure RequirementsThe Council would benefit from basic infrastructure investments

Total Cost =$35k-$40k