Dennis Blender Diy Strategic Planning


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Dennis Blender Diy Strategic Planning

  1. 1. Do-It-Yourself Strategic Planning Process Dennis Blender, Ph.D Fueling Efficient Nonprofits: Michigan SuperConference 2009
  2. 2. Agenda <ul><li>Benefits of Strategic Planning </li></ul><ul><li>Visionary Companies </li></ul><ul><ul><li>Core Ideology </li></ul></ul><ul><ul><li>Envisioned Future </li></ul></ul><ul><li>Analysis </li></ul><ul><ul><li>SWOT Analysis </li></ul></ul><ul><ul><li>Community and Demographic Data </li></ul></ul><ul><ul><li>Critical Success Factors </li></ul></ul><ul><ul><li>Competitive Analysis </li></ul></ul><ul><ul><li>Business Definition </li></ul></ul><ul><ul><li>Emphasis Statement </li></ul></ul><ul><li>Strategic Action Plans </li></ul><ul><ul><li>Targets and tactics </li></ul></ul><ul><li>Monitoring & Evaluation </li></ul><ul><li>Communication </li></ul>
  3. 3. Benefits of Strategic Planning Clearly define the purpose of the organization and establish realistic goals. Develop a sense of ownership of the plan. Ensure the most effective use of resources by focusing on key priorities. Provide a base from which progress can be measured. Recognize the impact the changing environment has on the organization and affect the needed changes. Further develop staff and board relationships. Develop a mechanism to focus on the organization's future. Provide leadership development training. Provide a framework for decision making in the organization.
  4. 4. Visionary Companies
  5. 5. Jim Collins, Built to Last , 1994 Visionary Companies Preserve the Core Stimulate Progress Core Ideology Core Purpose Core Values Envisioned Future 10-25 Year BHAG Vivid Description
  6. 6. Core Ideology <ul><li>Core Purpose </li></ul><ul><ul><li>The organization's reason for being. </li></ul></ul><ul><ul><li>Reflects people’s idealistic motivations for doing the organization’s work. </li></ul></ul><ul><ul><li>It captures the soul of the organization. </li></ul></ul><ul><li>Core Purpose – Examples </li></ul><ul><li>3M: To solve unsolved problems innovatively </li></ul><ul><li>Mary Kay Cosmetics: To give unlimited opportunity to women </li></ul><ul><li>Merck: To preserve and improve human life </li></ul><ul><li>Nike: To experience the emotion of competition, winning, and crushing competitors </li></ul><ul><li>Sony: To experience the joy of advancing and applying technology for the benefit of the public </li></ul><ul><li>Wal-Mart: To give ordinary folk the chance to buy the same things as rich people </li></ul><ul><li>Walt Disney: To make people happy </li></ul>
  7. 7. <ul><li>Core Values </li></ul><ul><ul><li>The essential and enduring tenets of an organization </li></ul></ul><ul><ul><li>A small set of timeless guiding principles </li></ul></ul><ul><ul><li>Require no external justification; they have intrinsic value and importance to those inside the organization </li></ul></ul><ul><li>Core Purpose - Examples </li></ul><ul><ul><li>Walt Disney </li></ul></ul><ul><ul><ul><li>Creativity, dreams, and imagination </li></ul></ul></ul><ul><ul><ul><li>Fanatical attention to consistency and detail </li></ul></ul></ul><ul><ul><ul><li>Preservation and control of the Disney magic </li></ul></ul></ul><ul><ul><li>Sony </li></ul></ul><ul><ul><ul><li>Elevation of the Japanese culture and national status </li></ul></ul></ul><ul><ul><ul><li>Being a pioneer – not following others; doing the impossible </li></ul></ul></ul><ul><ul><ul><li>Encouraging individual ability and creativity </li></ul></ul></ul><ul><ul><li>Nordstrom </li></ul></ul><ul><ul><ul><li>Service to the customer above all else </li></ul></ul></ul><ul><ul><ul><li>Hard work and individual productivity </li></ul></ul></ul><ul><ul><ul><li>Excellence in reputation; being part of something special </li></ul></ul></ul><ul><ul><li>Philip Morris </li></ul></ul><ul><ul><ul><li>The right to freedom of choice </li></ul></ul></ul><ul><ul><ul><li>Winning – beating others in a good fight </li></ul></ul></ul><ul><ul><ul><li>Hard work and continuous self-improvement </li></ul></ul></ul>Core Ideology
  8. 8. Envisioned Future <ul><li>Big Hairy Audacious Goal (BHAG)   </li></ul><ul><ul><li>A bold mechanism to stimulate growth </li></ul></ul><ul><ul><li>A huge, daunting challenge requiring a high level of commitment </li></ul></ul><ul><ul><li>Clear and compelling: acts as a catalyst for team spirit </li></ul></ul><ul><ul><li>Requires little or no explanation: people “get it” right away </li></ul></ul><ul><ul><li>A specific goal with a timeframe (10-25 years) </li></ul></ul><ul><li>Role-Model BHAGs </li></ul><ul><ul><li>Stanford University, 1940s: Become the Harvard of the West </li></ul></ul><ul><ul><li>Giro Sport Design, 1986: Become the Nike of the cycling industry </li></ul></ul><ul><li>Target BHAGs </li></ul><ul><ul><li>Wal-Mart, 1990: Become a $125 billion company by the year 2000 </li></ul></ul><ul><ul><li>Ford Motor Company, 1950: Democratize the automobile </li></ul></ul><ul><li>Internal Transformation BHAGs </li></ul><ul><ul><li>GE, 1980s: Become number one or two in every market we serve </li></ul></ul><ul><ul><li>Rockwell, 1995: Transform from a defense contractor into the best diversified high-technology company in the world </li></ul></ul><ul><li>Common enemy BHAGs </li></ul><ul><ul><li>Nike, 1960s: Crush Adidas </li></ul></ul><ul><ul><li>Honda, 1970: We will crush, squash, slaughter Yamaha </li></ul></ul>
  9. 9. Envisioned Future <ul><li>Vivid Description </li></ul><ul><ul><li>A vibrant, engaging, and specific description of what it will be like to achieve the BHAG </li></ul></ul><ul><ul><li>Translating the vision from words into pictures: “Painting a picture with words” </li></ul></ul><ul><ul><li>Passion, emotion, and conviction are essential </li></ul></ul><ul><ul><li>An effective envisioned future requires a certain level of unreasonable confidence and commitment </li></ul></ul><ul><ul><li>The envisioned future involves essential questions as: </li></ul></ul><ul><ul><ul><li>Does it get our “juices flowing”? </li></ul></ul></ul><ul><ul><ul><li>Do we find it stimulating? </li></ul></ul></ul><ul><ul><ul><li>Does it spur forward momentum? </li></ul></ul></ul><ul><ul><ul><li>Does it get people going? </li></ul></ul></ul>
  10. 10. <ul><li>Ford Motor Company (Henry Ford) </li></ul><ul><li>I will build a motorcar for the multitude. It will be so low in price that no man making a good salary will be unable to own one – and enjoy with his family the blessing of hours of pleasure. The horse will have disappeared from our highways, the automobile will be taken for granted; and we will give a large number of men employment at good wages. </li></ul><ul><li>  </li></ul><ul><li>Merck, 1979 </li></ul><ul><li>We will be the first drug maker with advanced research in every disease category. Our research will be as good as the science being done anywhere in the world. Our drugs won’t be used by a single person who doesn’t need them. We will be at the leading edge of concern, making contributions to he problems society is struggling with and making a contribution to the environment I in which we live. </li></ul><ul><li>Giro Sports Design, 1991 </li></ul><ul><li>The best riders in the world will be using our products by the year 2000. Winners of the Tour de France, the World Championships, and the Olympic Gold Medal will win wearing Giro helmets. We will receive unsolicited phone calls and letters from customers who say, “Thank you for being in business, one of your helmets saved my life”. Our employees will feel that this is the best place they’ve ever worked. When you ask people to name the top company in the cycling business, the vast majority will say “‘Giro”. </li></ul>Envisioned Future
  11. 11. SWOT Analysis
  12. 12. SWOT Analysis <ul><li>Brainstorming </li></ul><ul><ul><li>Generating many ideas and possibilities </li></ul></ul><ul><ul><li>Strengths, weaknesses, opportunities, threats </li></ul></ul><ul><ul><li>Identify patterns, themes </li></ul></ul><ul><ul><li>Prioritization </li></ul></ul><ul><ul><li>Consensus   </li></ul></ul><ul><li>Rules of Brainstorming </li></ul><ul><li>The more ideas, the better </li></ul><ul><li>The wilder the ideas, the better </li></ul><ul><li>Absolutely no discussion </li></ul><ul><li>Absolutely no evaluation </li></ul><ul><ul><li>Positive or negative </li></ul></ul><ul><ul><li>Verbal or nonverbal </li></ul></ul><ul><li>Hitch-hiking is OK </li></ul><ul><li>Silence is OK </li></ul><ul><li>Identification of </li></ul><ul><li>Strengths, Weaknesses, Opportunities, Threats </li></ul><ul><ul><ul><ul><ul><li>Board </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Staff </li></ul></ul></ul></ul></ul><ul><ul><li>Volunteers </li></ul></ul><ul><ul><li>Other </li></ul></ul>
  13. 13. STRENGTHS Team 1 OPPORTUNITIES Team 3 THREATS Team 4 WEAKNESSES Team 2 SWOT Analysis Round Robin Brainstorm – 4 Teams STRENGTHS Team 4 OPPORTUNITIES Team 2 THREATS Team 3 WEAKNESSES Team 1 STRENGTHS Team 2 OPPORTUNITIES Team 4 THREATS Team 1 WEAKNESSES Team 3 STRENGTHS Team 3 OPPORTUNITIES Team 1 THREATS Team 2 WEAKNESSES Team 4 Round 1 Round 2 Round 3 Round 4 <ul><li>Process – 4 “rounds” </li></ul><ul><li>Brainstorm (4-5 minutes/round) </li></ul><ul><li>Group and prioritize </li></ul><ul><li>Share and gain consensus </li></ul>
  14. 14. Community and Demographic Data
  15. 15. Additional Input <ul><li>People/organizations </li></ul><ul><ul><li>Funders, Foundations </li></ul></ul><ul><ul><li>Business community </li></ul></ul><ul><ul><li>Colleague organizations </li></ul></ul><ul><ul><li>Past-Presidents </li></ul></ul><ul><ul><li>Professional associations </li></ul></ul><ul><li>Quality assurance </li></ul><ul><ul><li>Surveys </li></ul></ul><ul><ul><li>Evaluations </li></ul></ul><ul><li>Questions </li></ul><ul><li>Do they have a strategic plan? What is it? (if appropriate) </li></ul><ul><li>What do they perceive as the strengths, weaknesses, opportunities and threats of our organization? </li></ul><ul><li>What challenges to they perceive for organizations similar to us ? </li></ul><ul><li>What initiatives do they recommend for us over the next 3-5 years? </li></ul><ul><li>Client data/trends </li></ul><ul><ul><li>Client satisfaction surveys </li></ul></ul><ul><li>Demographics </li></ul><ul><li>Financial data </li></ul>Potential Sources
  16. 16. Critical Success Factors
  17. 17. Assessment <ul><li>Functions to Assess </li></ul><ul><li>Human resources </li></ul><ul><li>Information technology </li></ul><ul><li>Finance </li></ul><ul><li>Facilities </li></ul><ul><li>Fund development </li></ul><ul><li>Marketing/public relations </li></ul><ul><li>Client satisfaction </li></ul><ul><li>Quality assurance </li></ul><ul><li>Other </li></ul>Category Strengths Weaknesses Opportunities Assessment:
  18. 18. Assessment Functions Assessment Human resources Information technology Finance Facilities Fund development Marketing/public relations Customer satisfaction Quality assurance
  19. 19. Competitive Analysis
  20. 20. Competitive Analysis <ul><li>Our organization </li></ul><ul><li>Why would potential clients want to be served by us? </li></ul><ul><li>Why would people want to work for us? </li></ul><ul><li>Why would funders/donors want to give money to us? </li></ul><ul><li>Our competitors </li></ul><ul><li>Why would potential clients want to be served by others? </li></ul><ul><li>Why would people want to work for others? </li></ul><ul><li>Why would funders/donors want to give money to others? </li></ul>Advantages Disadvantages
  21. 21. Business Definition
  22. 22. B usiness Definition Who? What? Where? Who Not? What Not? Where Not? Who Else? What Else? Where Else?
  23. 23. B usiness Definition Reduce Which factors should be reduced well below the industry’s standards? Raise Which factors should be raised well above the industry’s standards? Eliminate Which of the factors that the industry takes for granted should be eliminated ? Create Which factors should be created that the industry has never offered? A New Value Curve Chan Kim and Renée Mauborgne, Blue Ocean Strategy , 2005
  24. 24. B usiness Definition Eliminate Raise Reduce Create
  25. 25. Emphasis Statement
  26. 26. Emphasis Statement <ul><li>Predictability </li></ul><ul><li>Effective execution of systems </li></ul><ul><ul><ul><ul><ul><li>Ability to plan and accurately forecast </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Standardized operating procedures (SOP’s) to maximize efficiencies </li></ul></ul></ul></ul></ul><ul><li>Growth </li></ul><ul><ul><li>Expansion of services </li></ul></ul><ul><ul><li>Increase of clients </li></ul></ul><ul><ul><li>Increase the number locations, geography </li></ul></ul><ul><ul><ul><ul><li>Financial Security </li></ul></ul></ul></ul><ul><ul><li>Able to generate operating surpluses reliably and as planned </li></ul></ul><ul><ul><li>Generate sufficient cash to finance operations and meet liabilities </li></ul></ul><ul><ul><li>Efforts to become financially sustainable or self-sufficient </li></ul></ul>
  27. 27. Emphasis Statement In pursuing our strategy, we will emphasize predictability, financial security, and growth as follows: Emphasis Year 1 Year 2 Year 3-5 Predictability Financial Security Growth
  28. 28. Strategic Action Plans
  29. 29. Strategic Action Plans Predictability Initiative Champion Start End Growth Initiative Champion Start End Financial Security Initiative Champion Start End
  30. 30. Monitoring & Evaluation
  31. 31. Monitoring & Evaluation <ul><li>Key questions while monitoring and evaluating implementation of the plan </li></ul><ul><li>Are targets and tactics being achieved or not? </li></ul><ul><li>Will the targets and tactics be achieved according to the timelines specified in the plan? If not, then why? </li></ul><ul><li>Should the deadlines for completion be changed? </li></ul><ul><li>Do staff have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals? </li></ul><ul><li>Are the targets and tactics still realistic? </li></ul><ul><li>Should priorities be changed to put more focus on achieving the goals? </li></ul><ul><li>What can be learned from our monitoring and evaluation in order to improve future planning activities and also to improve future monitoring and evaluation efforts? </li></ul><ul><li>Frequency of monitoring and evaluation (recommendations) </li></ul><ul><li>Strategic Planning Committee assumes responsibility for monitoring and evaluation: quarterly </li></ul><ul><li>Boards of Directors should see status of implementation: yearly </li></ul><ul><li>Leadership team should see monitor status: monthly </li></ul>
  32. 32. Communication
  33. 33. Communication <ul><li>Communicating the Strategic Plan (recommendations) </li></ul><ul><li>Presentation(s) at Board Meetings. </li></ul><ul><li>Presentation to all staff. </li></ul><ul><li>Post your purpose and values on the walls of your offices. Consider giving each staff member a card with the statements (or highlights from them) on the card. </li></ul><ul><li>Publish portions of your plan in your regular newsletter, and advertising and marketing materials (brochures, ads, etc.). </li></ul><ul><li>Include portions of the plan in policies and procedures, including the staff manual. </li></ul><ul><li>Consider sharing portions of the plan for major stakeholders, for example, funders and other agencies/collaborators. </li></ul>
  34. 34. Dennis Blender, Ph.D. Professional Background
  35. 35. Background Dennis Blender has over 20 years of psychological consulting experience in organizational development, team dynamics, and facilitation. Particular strengths are in strategic planning, group facilitation and conflict resolution. He has conducted organizational culture analysis to determine strengths, weaknesses, and recommendations for improvement. He is extremely proficient at assisting organizations determine their core purpose and core values, and align their values with systems and behavior.  Prior to launching BCG, Dennis was a Partner at Plante & Moran, LLP, in the Management Consulting Services Group. He earned a Ph.D. from Wayne State University in Educational Psychology, an M.S. in Rehabilitation Counseling from Boston University, and a B.A. in Psychology from Ohio University. Contact information: 248-245-7900 [email_address]