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Effective approaches to strategic planning Wirral Trustee Network 5 September 2012 21/07/2015 NAVCA 1 Things we’re going to look at… • • • • • • • • What is strategy and strategic planning? What trustees need to know and do about strategic planning? Potential barriers to effective planning. Planning to plan. The planning process. Building blocks of a plan. Effective approaches to planning. Getting help and support. 21/07/2015 21/07/2015 NAVCA 2 2 But first… What’s your BIG question for tonight? 21/07/2015 21/07/2015 NAVCA 3 3 What is strategy? • Rooted in the idea of competition. • Military heritage –from the Greek ‘strategos’ – overcoming an enemy during combat. • Focus on competition remains a common feature of business strategy today. – Fujifilm famously had a very simple mission statement – “Kill Kodak” • How does this relate to our world in the voluntary sector? 21/07/2015 21/07/2015 NAVCA 4 4 Strategy in the voluntary sector LESS ABOUT… Outperforming rivals MORE ABOUT… Delivering our missions 21/07/2015 21/07/2015 NAVCA 5 5 What is strategy? • ‘A broad formula’ not a detailed plan. • A coherent set of ideas explaining how the organisation will carry out its mission and pursue its vision in the year’s ahead. 21/07/2015 21/07/2015 NAVCA 6 6 What is strategic planning? • A tool for rethinking and refreshing how an organisation conducts its business. • It makes the strategy ‘come to life’. • Part of a continuous cycle… 21/07/2015 21/07/2015 NAVCA 7 7 Why do strategic planning? • Resetting our aspirations and strategy is often the first step to amplifying our impact. • It creates a new narrative for all people and all parts of the organisation – what’s out story? • It achieves clarity – about who we are, what we do and why that matters. • Helps us focus on our “thing” – what is unique and unrivalled about our approach? • It achieves consensus about what will and won’t be priorities for the organisation. 21/07/2015 21/07/2015 NAVCA 8 8 Why do strategic planning? • It helps us take account of the world around us – looking outside at trends, developments and opportunities. • It helps us look at our structures, systems, processes and people and think about whether they could be better organised to achieve a greater impact. • It identifies how our income, resources, people, activities and relationships will operate and interrelate. 21/07/2015 21/07/2015 NAVCA 9 9 Why do strategic planning? • Once we have a plan we can: – Stay focussed. – Avoid distractions and diversions. – Make better decisions in future when opportunities and challenges arise. – Measure and evaluate progress and impact. 21/07/2015 21/07/2015 NAVCA 10 10 What do trustees need to know? “Trustees must agree the strategic direction of the charity which may involve input from the charity’s staff, and whom are likely to implement such long-term plans.” ICSA 21/07/2015 21/07/2015 NAVCA 11 11 What do trustees need to know? “An effective charity…has a clear idea of its mission, and the strategies and steps that it will take to achieve it, set out in written documents that are regularly reviewed, giving the charity focus, direction and clarity.” Charity Commission – Hallmarks of an effective charity 21/07/2015 21/07/2015 NAVCA 12 12 What do trustees need to know? “An effective charity…is able to explain how all of its activities relate to and support its purposes, strategy and mission, and benefit the public.” Charity Commission – Hallmarks of an effective charity 21/07/2015 21/07/2015 NAVCA 13 13 What do trustees need to know? “The board will ensure that the organisation delivers its stated purposes or aims by: • Ensuring that organisational purposes remain relevant and valid • developing and agreeing a long term strategy • agreeing operational plans and budgets • monitoring progress and spending against plan and budget • evaluating results, assessing outcomes and impact • reviewing and/or amending the plan and budget as appropriate.” Code of Good Governance: 2nd Edition 21/07/2015 21/07/2015 NAVCA 14 14 Potential barriers to effective planning • Too much focus on the plan and not the strategy. • Planning with too many audiences in mind. • Not involving the right people in the right way – all parts and people are interrelated. • Scepticism about the benefits of planning and being involved. • Trying to deal with fault-lines or deep-seated problems through the planning process. • Not planning to plan. 21/07/2015 21/07/2015 NAVCA 15 15 What should planning to plan include? 21/07/2015 21/07/2015 NAVCA 16 16 Planning to plan • Number one rule – plan to plan. • A strategic review needs to be done at the right time and under the right conditions. • You need to know what you want to accomplish and what resources are required. • You need to create a positive and productive working environment for the review process… • …and a safe and supportive environment for tackling complex and sensitive issues. 21/07/2015 21/07/2015 NAVCA 17 17 Planning to plan • Things to consider… – – – – Is this the right time? What’s driving our review? Are we ready? What big questions do we need a strategic review to answer? – What is fixed and where do we have freedom and flexibility? 21/07/2015 21/07/2015 NAVCA 18 18 Planning to plan • Practical activities… – Detailed analysis • Trends • External environment • Income – Setting realistic and achievable timescales for the review. – Try to fix any fault lines or deep-seated problems which might derail the review. – Developing processes and criteria for choosing between alternative ideas and approaches 21/07/2015 21/07/2015 NAVCA 19 19 Involving others • Many people are reluctant to involve themselves in activities that are seen as distractions from day to day delivery. • People are used to seeing lots of strategies and little change. • People feel committed to the process and the plan if they can see their individual role and responsibility in contributing to its success. • Involve everyone and make it ok for them to be subjective. • Go to where people are and fit in with what they’re doing already. 21/07/2015 21/07/2015 NAVCA 20 20 Planning process • Clarification of mission, vision, values • Review of: – – – – Current and predicted trends. Current programmes and services. Current stakeholder and service-users. Current income types and sources. • Assessment and analysis of current market and competition. • Identifying your competitive advantage. 21/07/2015 21/07/2015 NAVCA 21 21 Planning process • Consideration of: – Future programmes and services. – Future stakeholder sand service-users. – Future income types and sources. • Creating a strategy statement which is your ‘broad formula’ from which goals and plans can be developed. • Sense check – have we answered our big questions? 21/07/2015 21/07/2015 NAVCA 22 22 Basic Building Blocks of a plan Vision Assessment and analysis Mission Values Key objectives Aims/goals Programme work plans Project plans Individual work plans Performance framework 21/07/2015 21/07/2015 NAVCA 23 23 Effective approaches to planning • Think more about strategy and less about a detailed plan. • It’s a chance to get everyone on the same page. • The process is critical – you need to be looking outward and forward. • Plan to be agile and adaptive. • Clarity about what needs to be fixed also creates clarity about where the flexibility can be. • See it as creating a framework for making decisions in the future, not just making decisions about the future. 21/07/2015 21/07/2015 NAVCA 24 24 Getting help from outside What do you think the benefits of getting help from outside might be? 21/07/2015 21/07/2015 NAVCA 25 25 Getting help from outside • Facilitating the development and decision making process. • Bringing objectivity and a fresh pair of eyes. • Helping to build consensus among stakeholders with different perspectives and viewpoints. 21/07/2015 21/07/2015 NAVCA 26 26 Getting help from outside • Bringing some sense and order to diffuse and contradictory issues and ideas • Providing expert advice – based on detailed involvement with other organisations in one area of policy. • Bring specialism in elements of the planning process – financial modelling. 21/07/2015 21/07/2015 NAVCA 27 27 Strategy on a shoestring • Think about what you can do for yourselves. • Look at what free resources and pro-bono support are available. • Can you fit it in with things you’re doing already? • Think about what you can afford and how that translates into the time you can buy from someone. • So…if you can afford two days of consultant time what might you get them doing? 21/07/2015 21/07/2015 NAVCA 28 28 Sources of support • Your local support and development organisation. • Freelance consultants. • National bodies: – NAVCA. – NCVO. • Research bodies and universities: – Third Sector Research Centre. – Institute for Voluntary Action Research (IVAR). 21/07/2015 21/07/2015 NAVCA 29 29 NAVCA • We are the national membership body for local support and development organisations. • We strengthen and champion the work of our members in representing, supporting and developing voluntary and community action. • We provide services to voluntary and community organisations and public bodies. These include consultancy, specialist advice, policy information, performance improvement support and training and networking opportunities. • Email: [email protected] • Web: www.navca.org.uk 21/07/2015 NAVCA 30