Presenting: Strategic Planning
Choosing the Right Method for Your Nonprofit Organization
By Michela M. Perrone, Ph.D. and Janis Johnston
Presentation Text
Section 1: Strategic Planning: The Basics
Slide 3:
Strategic Planning:
The Basics
· What is strategic planning?
· What is a strategic plan?
· Why should we participate in the planning process?
· Are we ready to begin a planning process?
· Who should be involved?
Slide 4:
What Is Strategic Planning?
A Process That:
· Is filled with decisions and actions that shape and guide what an organization is, does, and why it does it
· Requires broad-scale information gathering
· Explores alternatives and emphasizes the future
What Is a Strategic Plan?
· A tangible written document
Slide 5:
Why Participate in a Planning Process?
· For organizational focus
· To concentrate on priorities and key strategies
· For a systematic approach to future thinking
· To compete in marketplace
· To determine priorities
· To have accountability and evaluate organizational effectiveness
Slide 6:
Why Participate in a Planning Process? (cont.)
· To clarify vision, mission, critical issues, and strategies
· To prepare for possible partnerships
· To provide guidance to staff
· To stay on track during leadership transitions
Slide 7:
Why Be Strategic?
· To find best approach to implementing mission
· To identify organization’s unique niche to success
· To build on assets
· To identify weaknesses
· To anticipate problems
Slide 8:
Where Are We Now?
· Is the organization clear about its primary purpose?
· Are new strategic approaches needed for implementing the mission?
· Can existing strategies be implemented in a more effective way?
· Are organizational goals and outcomes clear?
Slide 9:
Where Are We Now? (cont.)
· Should any of our major programs be eliminated?
· Is there a need for new programs and services?
· Is it necessary to consider a totally new approach to our mission?
· Should we consider a merger or collaboration?
Slide 10:
Are We Ready To Plan?
· Is the organization stable?
· Does a strategic plan already exist?
· Have key strategies been determined?
· Is there time to plan?
· Is funding available?
· Are board and staff committed to planning?
· Who should facilitate the process?
Slide 11:
Is the Organization Stable?
Crisis Mode
· Major funding shortage
· Chief executive leaving
· Majority of board resigns
· Unexpected loss of board chair
· Financial scandal
Slide 12:
Does a Plan Already Exist?
Board Satisfaction
· Consider reorganizing existing strategies and activities
· Keep existing strategic initiatives
Board Dissatisfaction
· A new or revised planning process should begin
Slide 13:
Have Key Strategies Been Determined?
Yes
· Board decides how its input will be included in planning
· If outcome already determined, additional input unnecessary
No
· Incorporate into strategic planning process
Slide 14:
Is There Time To Plan?
Average Time Frame for Planning
· Six to nine months to complete planning and have a document approved by board
Time Is Needed For
· Gathering data
· Research and analysis
· Attending meetings
Slide 15:
Is Funding Available?
Funding Is Needed To
· Support information gathering, analysis, and research
· *Contract for consulting and facilitating services
· *Cover logistical expenses
Slide 16:
Is Funding Available? (cont.)
Developing a Budget
· Type of process chosen
· Size and complexity of organization
· Number of people involved
· Geographic spread of mission
Slide 17:
Is Funding Available? (cont.)
If Funding is Not Available
· Create a plan to access funding
· Seek donated services and meeting space
· Look to board for financial support or planning
Slide 18:
Are Board and Staff Committed?
The Board
· Commitment absolutely essential
· Should have willingness to
§ spend time planning
§ support expenses of planning process
§ monitor implementation of plan’s strategies and goals
Slide 19:
Are Board and Staff Committed? (cont.)
The Staff
· Commitment essential
· Should have willingness to
§ spend time planning
§ earmark funds for planning process
§ monitor implementation of strategies and goals of plan
§ commit to new and diverse roles and responsibilities
Slide 20:
Are Board and Staff Committed? (cont.)
Board/Staff Partnership
· Determine how to access needed information
· Share research and interview assignments
· Discuss issues that arise in planning
· Communicate disagreements and differences of opinion
Slide 21:
Who Should Facilitate the Process?
Should a Consultant Be Hired?
· Assess whether there is a need
· Determine if funding is available
· Seek referrals for consultants who work best with specific organizations
Slide 22:
Who Should Facilitate the Process? (cont.)
Should a Board Member Act as Facilitator?
· Caution: Board members are not the best option
· If board member facilitates, he/she must
§ remain objective
§ limit insights and ideas
§ act as catalyst in planning process
Slide 23:
What Is a “Plan to Plan”?
· Strategic planning approach to follow (contextual or revolutionary)
· Key tasks and who performs them
· Time frame for completion of strategic plan
· Plan for implementing strategies
Slide 24:
Who Should Be Involved in the Planning Process?
· Full board
· Chief executive
· Key staff members
· External stakeholders
· Consultant
· Steering committee
Slide 25:
Board’s Role
· Commits to planning
· Ensures adequate resources
· Decides on approach
· Coordinates steering committee
· Helps prepare and approves “plan to plan”
· Ensures full board participation
Slide 26:
Board’s Role (cont.)
· Conducts board self-assessment
· Reviews and approves vision, mission, critical issues, and strategies
· Ensures strategies become operational
· Is familiar with plan and has final approval
· Ensures plan is fully implemented
· Oversees accomplishment of goals
Slide 27:
Chief Executive’s Role
· Seeks board’s buy-in for planning
· With the board, ensures adequate resources
· With the board, decides on planning approach
· With the board, coordinates steering committee
· Participates in “plan to plan”
Slide 28:
Chief Executive’s Role (cont.)
· Ensures participation of staff
· Informs staff; encourages feedback and input
· Prepares operational plan with staff
· Evaluates accomplishment of strategies, goals, and objectives
· Regularly reports status to board
Slide 29:
Staff’s Role
Staff <20:
· Expect participation from every staff member
Staff >20:
· Create leadership team more directly involved in planning
Slide 30:
Staff’s Role (cont.)
· Analyzes internal capacity
· Formulates and distributes surveys
· Organizes data collection
· With chief executive, identifies critical issues (vision, mission, strategies)
· With chief executive, prepares operational plan
· Implements plan
Slide 31:
Stakeholders’ Role
Who?
· Clients, staff, funders, members, community
What?
· Involvement with internal/external assessments
· Outsider’s perspective
Slide 32:
Consultant’s Role
· Guides decision-making process
· Focuses board’s thinking
· Guides “plan to plan”
· Supplies examples of other plans
· Ensures key stakeholders’ participation
Slide 33:
Consultant’s Role
As Facilitator
· Plans/leads steering committee meetings and retreat
· Asks the “hard” questions
· Focuses group on critical issues
· Facilitates discussion on long term
· Reflects thoughts and ideas back
Slide 34:
Steering Committee’s Role
Who?
· Board members, staff members, consultant
What?
· Guides planning process
· Determines approach
· Plans retreat
· Writes surveys and analyzes data
· Prepares final document
Slide 35:
Next Steps
· Assess readiness to move forward by answering all questions in previous slides according to the specific organization.
· If the organization is not ready to move forward, follow suggested steps on all previous slides and take the time to get there.
Slide 36:
Next Steps (cont.)
· If organization is ready to move forward
· Determine expected involvement from all parties and define roles and responsibilities.
· Schedule meeting time with appropriate persons to determine proper planning method (see Section 2).
· Incorporate outcome of discussions and questionnaires from this section into Section 2.
Section 2: Approaches to Strategic Planning
Slide 2:
Developing Strategies
Strategic Planning
· Contextual approach
· Revolutionary approach
Strategic Thinking
· Insightful approach
Slide 3:
Strategic Planning
Contextual Approach
· Develops strategies from present context
· Focuses on fine-tuning and better implementation of mission and vision
· Approaches to Strategic Planning
Slide 4:
Strategic Planning
Contextual Approach (cont.)
Best When
· Stable and mature organization
· Leadership rooted in mission
· Organization to keep basic structure
· Need for improved management capacity
· No radical changes desired
Slide 5:
Strategic Planning
Contextual Approach (cont.)
Helps To
· Clarify vision and mission
· Understand impact of programs and services
· Identify perception of others in field or sector
· Unify approach to developing and implementing strategies by board, staff, and stakeholders
Slide 6:
Strategic Planning
Revolutionary Approach
· Develops strategies outside of present context
· Strategies challenge present practices and assumptions
· Looks at future possibilities
· Seeks to incorporate change
Slide 7:
Strategic Planning
Revolutionary Approach (cont.)
Best With Realization That
· World is not static
· Societal and organizational dynamics are interdependent
· Past practices brought several costly surprises
Slide 8:
Strategic Planning
Revolutionary Approach (cont.)
Best When
· New vision or mission needed
· New image in field or sector desired
· Differing opinions for implementing strategies divide board and staff
· More dynamic plan needed
Slide 9:
Strategic Thinking
Insightful Approach to Strategy Development
· Not a process but a mindset
· Incorporates ideas of staff and board members
· Elicits and supports discovery and expression of innovation and continual growth
Slide 10:
Strategic Thinking
Insightful Approach to Strategy Development (cont.)
Best When
· Organization is stagnated
· Planning cycle doesn’t support changes
· Meetings do not stimulate creative thinking
· Shift in funder’s priorities
Slide 11:
Strategic Thinking
Insightful Approach to Strategy Development (cont.)
Use When
· New strategies and tactics needed
· More creativity and innovation needed
· Potential for more flexibility in program planning and implementation
· Lacking constant involvement
Slide 12:
Next Steps
· Assess pros and cons of strategic planning in the organization’s history.
· Identify the current needs of the organization according to each discussed approach.
· Revisit the outcomes of break-out discussions and questionnaires from Section 1 to compare to descriptions of organizations in this section.
· Review the two different strategic planning approaches presented here, looking for similarities and differences as they apply to the organization.
Slide 13:
Next Steps (cont.)
· If it is clear which strategic planning approach is appropriate, move on to either Section 3(a) for the Contextual or Section 3(b) for the Revolutionary.
· If there is disagreement on how to proceed, or more discussion and/or a deeper understanding of the two approaches is necessary, consider viewing both parts of Section 3 before determining which is best.
· Discuss as a group whether Section 4 is appropriate to view at this time. If not, consider applying strategic thinking ideas in the future and revisit that section.
Section 3(a): Contextual Approach
Slide 2:
What Is the Contextual Approach?
· Clarifies mission and vision
· Provides insight on impact programs and services have in community
· Clarifies perceptions held by field or sector
· Unifies approach to accomplishing goals
· Creates a plan for implementation of strategies
Slide 3:
Eight-Step Process
1. Establish parameters for planning
2. Assess external environment
3. Identify internal strengths and weaknesses
4. Clarify vision and mission
Slide 4:
Eight-Step Process (cont.)
5. Identify critical issues
6. Analyze strengths, weaknesses, opportunities, and threats (SWOT)
7. Formulate strategies to address issues
8. Create operational plan
Slide 5:
Step 1: Establish Parameters for Planning
· Agree on preferred steps, form, and timing of all reports
· Establish roles of participants
· Commit necessary resources
Slide 6:
Step 2: Assess External Environment
· Conduct in-depth study
· Determine opportunities and threats or obstacles
§ examine trends and forces
§ research needs of clients/beneficiaries
§ analyze impact of collaborators and competitors
Slide 7:
Step 3: Identify Internal Strengths and Weaknesses
· Inventory strengths and weaknesses
· Evaluate effectiveness of resources
· Assess present strategies
· Survey human and physical resources
· Determine satisfaction of members and other stakeholders
· Research needs and expectations of clients
Slide 8:
Step 4: Clarify Vision and Mission
Vision
· Embodies values and beliefs, motivations and inspiration
Mission
· What needs to be accomplished: where, why, for whom, and how
Slide 9:
Step 4: Clarify Vision and Mission (cont.)
Vision
· Defines success
· Determines shared beliefs, values, and philosophy
· Communicates dreams and images of future achievements
· Inspires, challenges, and stretches the imagination
· Captures dreams of capabilities and possibilities
Slide 10:
Step 4: Clarify Vision and Mission (cont.)
· Mission
· Expresses distinctive identity, essence, and purpose of organization
· Usually brief, easily recognized, repeated, and remembered
Slide 11:
Step 4: Clarify Vision and Mission (cont.)
Mission Statement
· Identity of organization
· Basic social needs it exists to fill
· Geography served
· Population served
· Programs and services
Slide 12:
Step 4: Clarify Vision and Mission (cont.)
Mission Statement
· Ensures consensus on purpose
· Provides reference for decision making
· Communicates identity and purpose to the public
· Guides evaluation of programs and priorities