Strategic analysis & planning for NGOs engl
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This document discusses strategic planning and analysis for non-governmental organizations (NGOs). It provides frameworks and questions to evaluate an NGO's current performance, strategy, and environment to determine if the strategy needs to be updated. The key elements discussed include evaluating strengths/weaknesses, goals, product/market focus, competitive advantages, organizational capabilities, and consistency with the mission and vision. A series of questions are provided to guide assessing various components of the strategy and determining what changes may be needed.
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Strategic analysis & planning for NGOs engl
- 1. Strategic Analysis & Planning for NGOs CUSTOMERS DOMAINS OF INTERVENTION SERVICES GOALS
- 2. Life ’s Cycle of an Association Birth Adolescence Consolidation Adult age Mature age Bureaucracy Death Time
- 4. 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 ?
- 5. 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
- 6. Environment: the Five Forces, external factors, ... … their evolution and their meaning EXTERNAL FACTORS Rivalry Entry Substitutes Suppliers Customers Entry Suppliers Rivalry Customers Substitutes
- 8. Product Market Focus Product Market Matrix CUSTOMERS SERVICES
- 9. Competitive Premise (« niche ») Matrix : Products / Competitive Premise What makes us indispensable, better als competitors and economically viable ? Ideal state : crosses everywhere !
- 10. Business System Focus The Value Chain MY INSTITUTION BUYERS SUPPLIERS Make or buy ? CUSTOMERS RAW MATERIALS SALE DISTRIBUTION TRANSFORMATION
- 11. Business Strategy Components MY INSTITUTION Product Market Focus Business System Focus Competitive Premise CUSTOMERS DOMAINS OF INTERVENTION SERVICES GOALS
- 12. 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
- 17. 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
Editor's Notes
- 4 key components of the manager’s job: Assessing performance Setting directions Implementing changes Building capacities
- Mission: puts the emphasis on broad ideas about the purpose and values of the entreprise. It sets out the basic principles of the business and acts as a continuing touchstone in matters of beliefs and behaviour (guiding principles). 2 components: purpose and beliefs Vision: focuses on the specific features of an ideal future state for the business - where you want to be, say, five years from now. It provides a reasonably specific and tangible aim, or destination, for the people in the organization to shoot for. An effective vision describes a possible dream - a dream that will hopefully marshall the energy, the confidence, and the efforts of all the people in the organization. 2 qualities: feasibility and flexibility Strategy : mission and vision => operational terms aims to translate broad ideas about the purpose and direction of a business into operational priorities and boundaries. Strategy is the definitive tool for building, communicating, and maintaining the direction of a business.
- Making a strategy is an iterative process. It must be repeated till all the “boxes” are consistent with all others.
- Rivalry Who are your competitors ? Who are their target groups ? Do our programs compete with thems ? Which are their strategies ? Which are their products and services ? What are their strengthes ? What are their weaknesses ? Do we collaborate or ignore each other ? Entry What makes you essential ? What are the « entry barriers » which prevent newcomers to enter your market ? Customers (people who pay me) Who are your target groups of customers ? What are their needs, at what prices ? Which is their negociating power (prices down) ? Which unique profit do they have (or will they have) working with you ? How will you fidelise them ? How likely will they try to produce themselves what they buy from you ? Suppliers (people whom I pay) Which is their negociating power (prices up) ? How likely will they try to produce themselves what you sell to your customers ? Substitutes What are the risks your services / products might be substituted by other in the future ? External Factors Which external factors can influence the success of the programs : government policies, political and economical situation, international help, ...
- Goals : targets against which progress and performance can be assessed hard goals: profitability, Market Position, Growth, Risk soft goals: Management, Employees, Community, Society external forces internal influences evolution Product Market Focus: priorities and boundaries on intentions and actions products boundaries of the markets Product Market Matrix arranges the product entries against the market segments Competitive Premise: priorities and boundaries on intentions and actions What do you intend to offer your customers that is: (1) important to them, (2) different from your competitors, (3)economically feasible, (4) difficult to match ? Price: direct, indirect Features: tangible, intangible (image) Execution: availability, reliability, intensity Business System Focus: capabilities to develop and reinforce (« Make or Buy ») Control (What do I want to control ?, sensible points), Capabilities (internal, external), Flexibility
- Customers: people and institutions who pay for your services/products. Can also be your members who pay contribution or donors who sponsor you to fulfill certain tasks.
- Follow up : How do I fidelize my customers ? How do I keep present to my customers ? How do I organize my after sale service ?
- STEP 1: EVALUATE THE CURRENT BUSINESS PERFORMANCE =detective work Assess the operating performance and organizational health of the business STEP 2 : EVALUATE CURRENT STRATEGY INCLUDING ITS CONSISTENCY AND ASSESS THE URGENCY FOR CHANGE 1. Identify the current strategy 2. Evaluate current strategy using the Diamond-E drill => environment 3. Decide on the nature and urgency of the required changes STEP 3 : DEVELOP AND EVALUATE STRATEGIC PROPOSALS 1. Generate new proposals using environment and capabilities to adress business opportunities and challenges 2. Shape and evaluate proposals using the Diamond-E drill STEP 4 : COMMIT, AND PREPARE TO IMPLEMENT 1. Decide on proposal (s) to implement 2. Plan to build required commitment and capabilities
- Operating Performance = what are your results ? Profitability (margins, key expense ratios, return on assets, on equity) financial position (leverage, liquidity, activity turnover) market performance (growth rate, absolute level, mkt.share) Market change often precede changes in financial performance => check market evolution and customer satisfaction (costs <=> advantages) Organizational Health = how are we reaching our results ? Management and workers attitudes enthusiasm for the job, stress, overtime accident rates Quadrant 1: = positive and sustainable coherent mission, vision and strategy statements organization well designed to deliver the strategy in question Quadrant 2: = inward looking, complacent organisation performing inadequately in term of market and profit standards persistence due to external pressure: competition, members, shareholders Quadrant 3: achieving objectives but under difficult conditions => for how long ? Quadrant 4: immediate and comprehensive action needed