Instead of approaching something as an ad hoc focus, strategy means there is higher thinking involved. How to match external things in env’t with what you do well (internal competencies). Do market analysis @ the least.
Executives getting together and talking about where we see the org in 5-10 years. Involves SWOT analysis. Look at mission and vision and see how the org plays into that. Formalized process—sit down and look @ 5-year plan and give specific metrics. Work backwards and have goals. Every year, reevaluate progress against this plan. Formulated but often forgotten. Input from several levels.
If org devalues org=real problem. Goal alignment is important.
Why do you do it?
Ps 203 np mgmt & strategic planning
Nonprofit Management & Strategic Planning
Strategic• What does it mean to be strategic? – How an organization will go about its efforts – Seeking to match the needs in the external environment with the NPs internal competencies
**How to Do it• SWOT Analysis – Internal • Strengths – What is the organization good at—what does the org do well? Resources and inputs of the org that help you do well. • Weaknesses – Where is the organization lacking – External • Opportunities – Linked to strengths. Org similar to my own is going out of business so that’s opportunity to take their clients/market share • Threats – Linked to weaknesses
Strategic Planning• Definition: – Formalized process by which an organization makes a study of its vision for the future – A set of concepts, procedures, and tools designed to help leaders, managers, and planners think and act strategically
Strategic Planning• Purpose: – Management tool that accounts for changes in the environment and the organization’s place within it • Technology • Markets for Services • Funding Sources • Competition
Benefits• Proactive rather than reactive• Addresses “real” problems and forces them to be considered• Builds relationships (ideally upward and downward communication)• Increases knowledge of organizational activities• Broad focus
Costs• Money (opportunity costs)• Time• Possible conflict within org
Impetus• Board – Board members push for the process (cross-over board members)• Funders – Often required for grants (want to know you have a vision for the future so you need strategic planning)• Change in leadership (ppl from other orgs are mad that things are run differently so they want to do it another way)• Crises within the organization
Developing a Strategic Plan• What is needed – Support • Top members of the organization: board, execs – Staff commitment • Time/energy and desire – Money – Knowledge
Identifying Goals• Working backwards from the ideal future or vision of the organization (3 to 5 years): – Goals for the upcoming year – Objectives for each goal • Specific • Measurable • Action-oriented • Responsible • Time-targeted – Need to review plan annually to evaluate and possibly revise objectives
Issues with Strategic Planning• Best laid plans… – Must be ready to adapt with an ever-changing environment• History repeating itself – Those involved must believe that plans will be used and not just window dressing• Use as a learning tool – Tendency to assign blame or hide from failure
Strategic Planning vs. Strategic Thinking• What is the difference?