Moving Forward with Strategic Planning

NorthSky Nonprofit Network

© Copyright 2008, NorthSky Nonprofit Network. All rights reserved.

“The future just doesn’t happen. It’s shaped by decisions.”

Paul Tafliabue, former commissioner National Football League

Workshop Objectives

• Describe the purpose & benefits of creating a strategic plan • Define: strategic plan, business plan, & annual plan • Discuss the timing for creating a strategic plan • Review the planning process • Discuss how to involve the Board & staff • Outline how to prepare & get started • Discuss the use of consultants • Provide time for questions & discussion

Why create a strategic plan?

Articulates a shared vision for the future and a blueprint for achieving it. Defines the internal and external environment that either advances or hinders the NPO from achieving its vision Assesses the value of the NPO to its constituents Provides time to visualize, ponder, and debate the future within the context of known realities and facts

Definition: strategic plan

Outlines what the organization should do, why it should do it, and how it’s planning to do it.

Includes broad strategic goals and strategies, not specific action steps.

Is developed and used primarily by the Board of Directors and staff.

Definition: business plan

Business plan: takes a business concept and outlines how to organize and deliver the service/product in a financial viable manner; it always includes financial statements.

Often focused on development of a new program or in generating earned income.

Strategies heavily focus on operations, marketing, and financial performance.

Definition: annual or operating plan

Is a conversion of the strategic goals and vision into an annual action plan.

Outlines the specific action steps, timelines, budget requirements, person or are by a responsible for implementation, and evaluation plan.

Generally developed by staff and volunteers; approved by Board.

Definition: balanced scorecard

Balanced scorecard: is a one-page snapshot of the strategic measures for an organization.

Generally includes objective, initiative, measure, owner, status.

When is it the right time?

Something has changed Change in leadership - Change in funding - Change in client base - Change in regulatory requirements Big questions & issues are facing the organization Need to affirm your nonprofit is on the right path Need to ensure that the Board, management, & staff are aligned

Checklist: When is the right time?

_ Is there confusion or conflicting debate about the how to respond to opportunities or prepare for threats; or differing views of the direction to lead the NPO ?

_ Is a change in leadership eminent? _ Are there concerns about the organization’s ability to survive long term?

_ Are funders asking for your strategic plan?

_ Is there pressure from staff, clients, or other constituents to develop a new service/program?

_ Are you being asked to partner on a major initiative?

Three approaches

The traditional strategic plan The LaPiana Real Time Planning Process The Balanced Scorecard

How do you involve the Board and staff?

• Planning retreat • Surveys/ interviews • Discussion teams • Planning committee

The planning process

Step 1: Educate Board and staff Identify the planning team- full Board? Subcommittee?

Step 2: Decide- will you use an outside facilitator or consultant?

Step 3: Collect background information - Environmental assessment - Organizational capacity assessment - Needs assessment Step 4: Select and use a planning template Step 5: Identify meeting schedule – -One-day planning retreat and/or series of meetings

Planning templates

Strategic plan: www.northskynonprofitnetwork.org

Business plan: www.score.org/business _ toolbox.html

Environmental Assessment

1) What does the local market for your program/service look like?

How many potential clients?

What is their profile – age, sex, ethnic group, education, etc.

Sources: US Census

What is your client profile versus that of the market?

Sources: internal client data

2) Who is the competition? What are their strengths & weaknesses?

Sources: NPO team, newspapers, websites

Environmental Assessment

3) What is your market share versus that of the competition?

Sources: your use data versus that of the total market

4) What will change in the environment? What are the funding trends? New advances? Social trends? Legal/ regulatory?

Sources: experts in the field, publications, papers

Community Needs Assessment

Collects information from the community via surveys, interviews, focus groups, or existing information/ reports What programs, services, or service features are needed?

Which segments of the community are in need? What other options/ providers are available?

How likely are your target segments to use your programs, services, or features?

What are the critical success factors?

Organizational Capacity Assessment

A self assessment of your organization’s capacity to survive and grow long term.

A survey completed by Board and staff.

Includes assessment of: leadership, adaptability, management, operations, and technology.

Consultants can be helpful

• Set agendas prepare materials, and facilitate discussions.

• Pose tough questions.

• Keep things moving along.

• Introduce new concepts or techniques. • Bring in external information.

• Provide neutrality.

• Author the document

Selecting consultants

• Define the desired outcome and deliverables. • Develop a request for proposal and obtain competitive bids.

• Obtain references and look at work samples.

• Create a contract or “scope of work” that outlines the project deliverables, working relationship, timeline, and pricing.

• Conduct a project evaluation.

Critical success factors

Strategic planning must include the Board; ideally it is led by the Board.

The organization must be willing to scrutinize all aspects of the organization and change direction.

The approach to planning must fit into the culture of the organization.

Keep things moving along; don’t get bogged down.

A concise, focused plan will be more useful than long, detailed document that addresses every contingency.

Questions

Thank You

Contact NorthSky at: 231.929.3934

Pam Evans 231.929.3934, x 208 [email protected]

Special Thank you to: