MODULE 2: Strategic Planning and Generating Support through Strategic Communications
Overview:
We generally have not used our strategic planning as a serious core element of our preparations for the future. David LaPiana has noted in his work on strategic planning that it is estimated that 40% of the goals in most Strategic Plans are never touched, let alone successfully implemented. Strategic Plans have often been criticized for gathering a lot of dust and inspiring very few dynamic changes. We must change the way we view Strategic Planning.
Perhaps the best definition of strategy is: “The efforts we put forth to change our organizational behaviors to increase our competitive advantage in support of our Mission.” This is a paraphrase from the work of David LaPiana. This definition of strategy is fully consistent with the thrust of transformational change: If it’s strategic, then it’s all about making changes in our organizational behaviors.
A transformational plan is not the same thing as a Strategic Plan, but the two plans must be consonant with one another. There is a finite amount of change energy within any organization. Transformational Change Initiatives produce a lot of positive energy, but they also consume a lot of energy. Organizations need to limit the “energy competition” to protect staff from excessive demands on their time. Everyone needs to all be working in support of one consistent direction.
A good rule of thumb is: If an organization isn’t fully committed to doing something, don’t put it in the Strategic Plan. If organizations focus on what they absolutely must be able to do and focuses on the capacities that will have to be developed to be successful as an organization in three years, a Strategic Plan is an invaluable tool. Organizations must commit to developing Strategic Plans that are realistic, targeted and fully consonant with and fully supportive of our transformational plan.
1. DEVELOP A STRATEGIC PLAN
Developing a comprehensive strategic plan can be a very time-consuming activity for an organization. Organizations should consider using a consultant to help develop their plan, recognizing that consultants can do some of the legwork, such as interviewing external constituents and gathering data. Consultants can sometimes also help the organization break through long-standing perspectives that might otherwise hold it back from transformation. It is imperative that Boards of Directors are well-informed the about trends in the field and that their strategic thinking and expertise is incorporated into the strategic planning process. Well-designed plans also involve participation from all levels of the organization. Not only the Board of Directors should participate in the process, but also staff from all departments and in all roles (from leadership to support staff) should have an opportunity to contribute to the plan. It is also essential to assure that youth and family and community voices are considered and incorporated into the plan. The final strategic plan should be shared and discussed throughout the organization. Strategic planning will often update or revise the agency’s mission and vision statements and organizational values. While revisions may not occur with every plan cycle or update, these items should be minimally reviewed to assure they reflect the current organization. A successfully developed strategic plan reflects out for a period of no longer than three years and its goals are limited, achievable, and are updated on an annual basis. Organizations might also consider utilizing scenario planning, with accompanying short- and long-term financial projections, as part of the process. Scenario planning can be helpful for an organization to think about the future even if the final product may be inherently flawed.
STRATEGIES
- Develop a Strategic Plan
- Develop Annual Planning Process
- Goal Setting
RESOURCES
Nonprofit Strategy Revolution – David LaPiana
The Bridgespan Group – Strategic Planning
National Council of Nonprofits
Steps in Developing a Strategic Plan
Various approaches are utilized by organizations as they develop their strategic plan. The development of a formal strategic plan can be a time-consuming process and the initial steps of data and information gathering can take a number of months. Below is an example of the possible strategies an organization can implement:
- Interview a number of your staff, asking them to discuss their greatest challenges and most rewarding experiences.
- Interview a number of your referral sources and ask them to share their views on the trends in the field, their greatest needs, and how your organization can help them meet these needs.
- Collect additional information on the trends in the field and develop an understanding of the impact each might have on your organization.
- Discuss the trends in the field with all your leaders and Board members and get their thoughts on the skills and capacities your organization need to develop to address various trends.
- Formally announce to the organization and community partners the initiation of your Strategic Planning process and share that you want it to be an inclusive process.
- Determine the role your Board will play in the process of the plan development and adjust the following steps accordingly.
- Identify the Transformational Goals from this toolkit, or other sources, that your organization could undertake and select the three that your leaders (and Board) collectively believe will best prepare your organization.
- Recruit some of your “rising star” staff to participate as full partners in your Strategic Planning process.
- Create three work groups to develop draft plans for each of the three Transformational Goals that your leaders (and Board) have selected.
- Include direct service staff, leadership staff and members of your Senior Leadership Team on each of the three work groups.
- Convene the three work groups and discuss the process and timelines you will follow, including the format you will all use.
- Establish that anything included in the plan must have an objective measure to allow everyone to follow its progress.
- Advise the work groups to “front-end load” their plans with 50% of the progress to be expected in the first 12 months.
- Advise the work groups to develop monthly objectives for the first year and quarterly objectives for years two and three.
- Give the work groups 30 days to develop their drafts for their respective Transformational Goals.
- Gather your Senior Leadership Team when the drafts have been completed and engage in the process of integrating the three drafts.
- Share the integrated draft of the Strategic Plan with the planning teams and Board for their feedback and input.
- Finalize your plan and distribute it broadly.
Components of a Strategic Plan
Many organizations are abandoning the 50+ page document, that often just sits on the shelf, for a shorter PowerPoint like version of a plan. This format is easier to update on an annual basis, keep current and allows for a full-blown plan to be conducted every three years. Whatever format is chosen for the plan there are a number of components to include. An organization needs to carefully determine what the critical component of the strategic plan should include. A possible outline for a plan could include:
- Mission-Vision-Values
- Acronym List
- What Does the Organization Do?
- List of Services Provided and Locations
- Strategic Planning Process Utilized
- Agency Analysis (SWOT):
- Critical Environmental Changes Taking Place in the Field
- Strategic Advantages and Sustainability
- Key Strategies
- Organizational Goals for coming Fiscal Year
- Attachments
“Strategic Plans provide us with a bridge from our past to our future. Without them, there’s no way to get over the canyon.”
2. DEVELOP AN ANNUAL PLANNING PROCESS
Since a strategic plan is typically not conducted on an annual basis (however some organizations may choose to update their strategic plans annually), an annual review process is recommended to assure that real-time planning for the organization is occurring. Often this planning process is accompanied by annual staff performance reviews where staff goals are tied with the organizational goals for a given year. Below is an example of an Annual Planning Process.
*Environmental Scan Includes:
- Staff Satisfaction/Feedback Surveys
- Outcome data
- Workforce Demographics
- HR Data (turnover/leaves/worker comp/training, etc.)
- Referral Data
- Youth and Family Census Data
- State/County Review
- SWOT of External Environment
- SWOT of Technology Needs
- Review of last year’s priorities
**Items to be Considered in Priority Setting
- Accreditation Reviews
- Strategic Plan
- Risk (Financial, Patient Safety, Agency Reputation, Agency Liability, etc.)
- Resources
- Agency Values
- Environmental Influences
- Capacity to Address the Issue (People, Money, Time, Knowledge, Skill, etc.)
- Lost Opportunity
3. GOAL SETTING
The process of setting goals annually is both an opportunity to ensure your plan is current and also allows an organization to carefully track its progress and outcomes. Goal setting should incorporate the following components:
- Know the Vital Few areas the organization must pay attention too
- Identify key areas around which to establish goals –these will come from the annual planning process
- Keep the number of goals reasonable and achievable – ideally 3- 5 goals
- Look out no more than three years for any goal
- Many goals can’t be completed in 1 year – identified what will be done in subsequent years and update annually
- Establish quarterly tasks and assign responsibility
- Report quarterly on progress
- Goals for each completed year should roll off (update those extending into the next year), and new goals added or
- Once organizational goals are established, they should be communicated widely throughout the organization and assignments should be made on how various departments or individuals will go about working on achieving the goals. Minimally progress results should be reported quarterly, and monthly updates to leadership help keep the goals on track. Progress on goals also needs to be reported to appropriate board committees the full Board of Directors at regular meetings.
“For many years I suppose that I looked on Strategic Planning as just a task. Now I look on it as a life raft.”