Strategic analysis & planning for NGOs englPresentation Transcript
Strategic Analysis & Planning for NGOs CUSTOMERS DOMAINS OF INTERVENTION SERVICES GOALS
Life ’s Cycle of an Association Birth Adolescence Consolidation Adult age Mature age Bureaucracy Death Time
Nachhaltige Entwicklung ..
… ist eine Entwicklung,
welche die heutigen Bedürfnisse zu decken vermag,
ohne für künftige Generationen die Möglichkeit zu schmälern,
ihre Bedürfnisse zu decken.
(Bruntland - Kommission 1987)
Mission, Vision, Strategy MISSION Why are we in business ? VISION What do we want the business to look like five years from now ? STRATEGY How do we intend to get there ?
The Elements and their Consistency BUSINESS CAPABILITIES Organisation Operations Expertise Ressources EXTERNAL ENVIRONMENT STRATEGY Goals Product Market Focus Competitive Premise Business System Focus 5 Forces of Porter MISSION VISION
Environment: the Five Forces, external factors, ... … their evolution and their meaning EXTERNAL FACTORS Rivalry Entry Substitutes Suppliers Customers Entry Suppliers Rivalry Customers Substitutes
4 Business Strategy Components
Goals: What do we intend to achieve ? What are our expectations with respect to the evolution of the environment ? (SMART, 5 Forces)
Product Market Focus: What are the products/services that we intend to provide / sell , and to what specific markets (members, customers) ? (Product Market Matrix)
Competitive Premise: How do we intend to win in the marketplace ? What will we offer to our customers / members that is important to them, different from our competitors, economically feasible and difficult to match ? (Marketing Approach, 5 Forces, Environment Analysis, Budget,)
Business System Focus: What are the prime value-adding activities that we want to perform in house ? (Value Chain)
Competitive Premise (« niche ») Matrix : Products / Competitive Premise What makes us indispensable, better als competitors and economically viable ? Ideal state : crosses everywhere !
Business System Focus The Value Chain MY INSTITUTION BUYERS SUPPLIERS Make or buy ? CUSTOMERS RAW MATERIALS SALE DISTRIBUTION TRANSFORMATION
Business Strategy Components MY INSTITUTION Product Market Focus Business System Focus Competitive Premise CUSTOMERS DOMAINS OF INTERVENTION SERVICES GOALS
The Process of Strategic Analysis STEP 1: EVALUATE THE CURRENT BUSINESS PERFORMANCE How is our institution doing ? STEP 2 : EVALUATE CURRENT STRATEGY (CONSISTENCY) AND ASSESS THE URGENCY FOR CHANGE STEP 3 : DEVELOP AND EVALUATE STRATEGIC PROPOSALS STEP 4 : COMMIT, AND PREPARE TO IMPLEMENT Analysis is complete. Move to management change
Institutional Self Evaluation
STEP 1 :EVALUATE CURRENT BUSINESS PERFORMANCE
How is our institution doing ? (organisation, operations) Strengths - Weaknesses
Are our Programs and Ressources adapted to our objectives ?
How far do we depend upon international help ?
STEP 2 : EVALUATE CURRENT STRATEGY
Is our Strategy consistent with our global project, our business capabilities and the evolution of the external environment ?
Step 1: Evaluate Current Business Performance
Strengths / Weaknesses / Opportunities / Threats
against external references
ORGANISATIONAL HEALTH + - + - OPERATING PERFORMANCE SWOT
Step 2 : Evaluate Current Strategy
Identify the current strategy
Evaluate the strategy
Goals, Product Market Focus, Competitive Premice, Business System Focus
use model to assess its consistency
Assess the nature and urgency of required changes
forecast the future performance, assuming the strategy stays the same
identify problems (importance, urgency)
identify changes needed (minor, fundamental)
6 Essential Strategic Questions
WHAT ? Activities and main programs (risks)
WHERE ? Target Territory
FOR WHOM ? Target Groups
HOW ? Means of intervention (realise, finance, « catalyse », advise, coordinate, inform, short or long term engagement)
WHEN ? Planning
WITH ? Ressources (training needs), capabilities
Degree of Financial Dependence and Self Financing % Self Financing = 100 % - % Total Financial Dependence % Financial Dependence from International = Help Total International Help Total budget / expenses % Total Financial = Dependence Total international help + Total national and local help Total budget / expenses
Basis of financial autonomy
Improved ressources ’ management
Created savings as basis for new investments
How to increase Self Financing ?
Members ’ contributions and Participation to special projects
National and local financing
Profits of organised events
Sale of services or products
Income generating projects
Profit Centers controlled by the association
What is a Business - Plan ?
A « Business - Plan » is a document which describes your institution now and in the future.
It shows :
the allocation of your ressources
Objectives and uses of a Business Plan
Objectives of a Business Plan
Study the feasibility and sustainability of an enterprise (institution, project)
Present own objectives and concepts
Bring to future partners and investors essential elements for their decision
Uses of a Business Plan
Search for investors, convince donors
Sale or acquisition of comapnies
Search for financing a credit or leasing
Acquisition of a big customer
Rectuiting a new executive
Content of a Business Plan
Company ’s Presentation
Product / Services
Markets and their Evolution
Marketing / Concretisation of the Market
Localisation / Production / Administration
Organisation / Management
Questions for strategy assessment (1)
Do we have enough organisational means to bring our programs to successes ?
Do we have enough expertise in the fields we ’re working at ?
Do we need to train our collaborators ? - If yes, how can we do it ?
Do we have enough experience and adapted methods to work with our target groups ?
Questions for strategy assessment (2)
Do we know the ressources (human, financial, technological) we need to reach our goals ?
Do we have enough collaborators, equipment and material to realise our programs ? - If not can we get them on time ?
Do our collaborators know our strategy so that they can contribute to its success ?
Questions for strategy assessment (3)
Can we clearly tell what should be our institution within 3-5 years ?
Does our actual orientation bring overall superior results ?
Will this orientation assure such results in the future ?
Questions for strategy assessment (4)
Do our programs respond to the needs they expressed ?
Do our programs correspond to a prioritary need of the community or the country ?
Can Target Groups fully participate to planning, organising and evaluating programs ?
Which long term impact could our porgrams have on the local communities ?
Questions for strategy assessment (5)
Product Market Focus
Do we have clear priorities about our future offer of products and services ?
Do we have clear priorities concerning target groups and customers ?
Do we succeed without being too dependant from one customer, one product, one market ?
Does our institution have several pillars so that it can survive to a grave event (lost of a big customer, price war, hard competition) ?
Questions for strategy assessment (6)
Do our customer find we are unique and difficult to match ?
Business System Focus
Have we already asked ourselves if we could make our business in a completely different way ?
Questions for strategy assessment (7)
Can we exclude important environment ’s changes which could force us to make radical changes ? (customers, technology, market, competition, …)
Questions for strategy assessment (8)
Does our strategy correspond to the fundamental choices (mission, vision, goals) or our association ?
Is the strategy broadly accepted by our members, board, management and collaborators ?