NMP 625:
Strategic Management in Nonprofit
Organizations

FRAMEWORKS, THEORIES AND MODELS

E. Ruth Ever
E-Portfolio Assign...
Traditional Strategic Planning
John M. Bryson

 Step 1: Development of an Initial Agreement
 Step 2: Identification and ...
Real-Time Strategic Planning
David La Piana

La Piana proposes that
strategic planning be done
in ―real-time‖ as opposed t...
SWOT Analysis
Albert Humphrey

Strengths

Weaknesses

Opportunities

Threats

The SWOT model allows an organization to do ...
Nonprofit Lifecycle Stages
Susan Kennedy Stevens

There are different stages within the life of an organization. Not all
o...
Organizational Life Stages
Judith Sharken Simon
Organizational Life Stages
Judith Sharken Simon
This model illustrates the life
stages of nonprofit organizations
as five ...
Organizational Self-Assessment
Michael Hoff

This self-assessment allows the organization to come up with their own
questi...
Organizational Self Assessment
Peter Drucker

Using these 5 questions and their secondary questions, an
organization can c...
Components for Organizational Capacity
Carol Lukas & Sandra Jacobson

These six components
are essential for a high
perfor...
Capacity Assessment Grid
Developed by McKinsey & Company for Venture Philanthropy Partners

This assessment tool helps ass...
Decision Matrix
David La Piana

This matrix allows you to plot specific situations to see if
the La Piana Assessment Tool ...
Supplemental Tool for Assessment
David La Piana

This tool assesses the stability and capacity of the
organization. It all...
How to Develop a Mission Statement
Peter Drucker

A ten-step process for creating your mission statement:
 Step 1: Establ...
How to Write a Mission Statement
Janel M. Radke

A mission statement should be free of jargon, short enough to
be easily r...
Crafting Effective Mission and Vision Statements
Emil Angelica

Angelica has outlined several steps on how to develop a
mi...
Strategic Positioning
Thomas A. McLaughlin
The goal of strategic positioning is not problem solving but
imagining, and the...
What If…Scenario Thinking
Diana Scearce, Katherine Fulton and the Global Business Network

Scenario thinking is a type of ...
Scenario Thinking
Diana Scearce, Katherine Fulton and the Global Business Network

These are the five phases of the scenar...
The Strategy Pyramid
David La Piana

Organizational

Programmatic

Operational

This pyramid is a
graphical representation...
Strategy Screen
David La Piana
Strategy Screen
David La Piana

A Strategy Screen is a set of
criteria that your
organization uses to choose
whether or no...
10 Deadly Sins Leading to Strategic Malaise
Michel Robert

 Sin 1: Strategy by osmosis
 Sin 2: Strategy in isolation
 S...
Strategic Filter
Michel Robert

Questions
Q1
Q2
Q3
Q4
Q5
Q6
Q7

Yes

No

When faced with an opportunity,
filter it through...
Strategic Thinking Process
Michel Robert

Phase 1: Introduction
and Overview
Phase 2:
Identification of
Characteristics
Ph...
Strategize for the Future
Michel Robert

The ―Five Futures‖
 Future ahead—already started but not yet arrived.
 Beyond—p...
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NMP 625 Summary for Toolkit

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NMP 625 Summary for Toolkit

  1. 1. NMP 625: Strategic Management in Nonprofit Organizations FRAMEWORKS, THEORIES AND MODELS E. Ruth Ever E-Portfolio Assignment #1 11/7/13
  2. 2. Traditional Strategic Planning John M. Bryson  Step 1: Development of an Initial Agreement  Step 2: Identification and Clarification of Mandates  Step 3: Development and Clarification of Mission and Values  Step 4: External Environmental Assessment  Step 5: Internal Environmental Assessment  Step 6: Strategic Issue Identification  Step 7: Strategy Development  Step 8: Description of the Organizations Future This models is most often used in the traditional ―3-year‖ strategic planning process. The eight steps will lead to an action plan, results and an evaluation.
  3. 3. Real-Time Strategic Planning David La Piana La Piana proposes that strategic planning be done in ―real-time‖ as opposed to the traditional 3-year strategic planning cycle. Strategic planning is a continuous cycle.
  4. 4. SWOT Analysis Albert Humphrey Strengths Weaknesses Opportunities Threats The SWOT model allows an organization to do a analysis of their strengths, weaknesses, opportunities and threats. This analysis model is most often used as part of a larger strategic planning process.
  5. 5. Nonprofit Lifecycle Stages Susan Kennedy Stevens There are different stages within the life of an organization. Not all organizations will go through each lifecycle. This model factors in the five capacity building components so that one can asses if they are working together, or if they are out of sync.
  6. 6. Organizational Life Stages Judith Sharken Simon
  7. 7. Organizational Life Stages Judith Sharken Simon This model illustrates the life stages of nonprofit organizations as five stages, where decline and dissolutions can happen at any stage. There are seven arenas that characterize what stage an organization is in: governance, staff leadership, financing, administrat ive systems, products and services, staffing and marketing. Each stage can also be characterized by obstacles and opportunities.
  8. 8. Organizational Self-Assessment Michael Hoff This self-assessment allows the organization to come up with their own questions within each of the categories below. It is emphasized that the data gathered through this self analysis should be as objective as possible. This particular model does not have a lot of guidelines and leaves it to user discretion as to how in-depth to go, and in what direction, when exploring each category.  Organizational Purpose  Organizational Structure  Work Processes  Staff Leadership  Interpersonal Relations  Reward Structure  Resources
  9. 9. Organizational Self Assessment Peter Drucker Using these 5 questions and their secondary questions, an organization can create a strategic action plan.  What is our mission?  Who is our customer?  What does the customer value?  What are our results?  What is our plan?
  10. 10. Components for Organizational Capacity Carol Lukas & Sandra Jacobson These six components are essential for a high performance organization. These interdependent factors all contribute to the health and performance of a nonprofit organization
  11. 11. Capacity Assessment Grid Developed by McKinsey & Company for Venture Philanthropy Partners This assessment tool helps assess the organizational capacity of a nonprofit. Each of the seven elements has subcategories, and these areas are all scored within the grid. Elements of Organizational Capacity • Aspirations • Strategy • Organizational Skills • Human Resources • Systems and Infrastructure • Organizational Structure • Culture
  12. 12. Decision Matrix David La Piana This matrix allows you to plot specific situations to see if the La Piana Assessment Tool is appropriate to use. High Substantial Investment 1 High level of investment but short-term interest only Project Level Short-Term Interest 2 High level of investment and Long-term interest in organization Consider use of tool Definitely use tool 3 Low level of investment and Short-term interest only 4 Low level of investment but Ling-term interest in organization Likely won’t use tool Consider use of tool Low Minimal Investment Movement Building Long-Term Interest
  13. 13. Supplemental Tool for Assessment David La Piana This tool assesses the stability and capacity of the organization. It allows you to evaluate the overall risk and suggest various strategies.  Supplemental Due Diligence  Document Review  Interviews with Organizational Leaders – 6 Assessment Areas       Governance Leadership Finances Human Resource Management Development Communications  Analysis: Red Flag Identification  Action: Options for Managing the Risk(s)
  14. 14. How to Develop a Mission Statement Peter Drucker A ten-step process for creating your mission statement:  Step 1: Establish a mission-writing group  Step 2: Adopt criteria for an effective mission statement  Step 3: Develop one or more draft statements  Step 4: Judge the initial drafts against criteria and suggest revisions or new options  Step 5: Develop second drafts  Step 6: Gain feedback from outside the writing group  Step 7: Summarize feedback and distribute second drafts and summary to writing group  Step 8: Propose a draft mission statement or determine next step  Step 9: Gain preliminary endorsement of the proposed mission statement  Step 10: Present the proposed mission statement for board approval
  15. 15. How to Write a Mission Statement Janel M. Radke A mission statement should be free of jargon, short enough to be easily read and remembered, convincing, easy to understand, motivating and inspiring. It should answer three basic questions:  What are the opportunities or need that we exist to address? (purpose of the organization)  What are we doing to address those needs?  (the business of the organization)  What principles or beliefs guide our work?  (the values of the organization) 
  16. 16. Crafting Effective Mission and Vision Statements Emil Angelica Angelica has outlined several steps on how to develop a mission statement and a vision statement. Mission Statement Process 1. Select the mission statement writing team 2. Clarify core values 3. Review the organizations underlying strategies 4. Evaluate the current mission statement 5. Draft the mission statement 6. Circulate the mission statement for review and modify it 7. Adopt the mission statement Vision Statement Process 1. Select the vision statement writing team 2. Generate alternative visions (SWOTM) 3. Identify common themes 4. Draft vision statement 5. Circulate vision statement for review and modify it 6. Adopt the vision statement
  17. 17. Strategic Positioning Thomas A. McLaughlin The goal of strategic positioning is not problem solving but imagining, and the imagining should be grounded in reality. A good strategic position statement is easy to understand and explains where you want your organization to be in the future. The following factors should be considered when doing strategic positioning:  The need for your service  Your geography  Your users and potential users of your service  Competitors or alternatives  Funders  Labor force  Special assets
  18. 18. What If…Scenario Thinking Diana Scearce, Katherine Fulton and the Global Business Network Scenario thinking is a type of strategic thinking, whereby scenarios are developed and then used to inform and direct the strategic process. There are three guiding principles for scenario thinking: • The Long View: Looking into the future to see new possibilities • Outside-In Thinking: Considering external changes and preparing for surprising events • Multiple Perspectives: Allowing a variety of perspectives to help understand assumptions and plan for the future
  19. 19. Scenario Thinking Diana Scearce, Katherine Fulton and the Global Business Network These are the five phases of the scenario thinking process. Phase One: ORIENT Interviews Focal Issues Phase Five: MONITOR Phase Two: EXPLORE Leading indicators Monitoring systems Critical Uncertainties Predetermined elements Phase Three: SYNTHESIZE Scenario framework Scenarios Phase Four: ACT Implications Strategic agenda
  20. 20. The Strategy Pyramid David La Piana Organizational Programmatic Operational This pyramid is a graphical representation of the categories or types of challenges that confront leaders of nonprofit organizations. La Piana proposes that an organization build its pyramid from the top down.
  21. 21. Strategy Screen David La Piana
  22. 22. Strategy Screen David La Piana A Strategy Screen is a set of criteria that your organization uses to choose whether or not a particular strategy is consistent with its identity. The specific criteria in your Strategy Screen will depend on your organization’s mission, identity, competitiv e advantage and current market position.
  23. 23. 10 Deadly Sins Leading to Strategic Malaise Michel Robert  Sin 1: Strategy by osmosis  Sin 2: Strategy in isolation  Sin 3: Outsourcing the strategy to an        outside consultant Sin 4: Operational managers are not trained as strategic thinkers Sin 5: Planning numberosis Sin 6: Meaningless mission statements Sin 7: No crisis, no strategy Sin 8: The critical issues are not identified Sin 9: Not understanding the difference between process and content Sin 10: Using a content consultant These 10 sins can lead to either management not knowing or understanding the strategy or having a strategy that is understood but not being implemented
  24. 24. Strategic Filter Michel Robert Questions Q1 Q2 Q3 Q4 Q5 Q6 Q7 Yes No When faced with an opportunity, filter it through a series of questions that require a Yes or No answer. The questions should focus on the current strategy of the organization. If the opportunity does not conform to the current strategy, it becomes an exception. Historically, exceptions always end up being problem areas.
  25. 25. Strategic Thinking Process Michel Robert Phase 1: Introduction and Overview Phase 2: Identification of Characteristics Phase 3: Setting Strategic Objectives Phase 4: Critical Issues Meeting Phase 5: Review/Revisit Session
  26. 26. Strategize for the Future Michel Robert The ―Five Futures‖  Future ahead—already started but not yet arrived.  Beyond—projectable and predictable based on current constraints.  Behind—learn about future by looking at history and past.  Around– the one already present around you.  Beside –current trends in the other sandboxes that will eventually affect you.
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