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Charting a Clear Course:Strategic Planning Basics

March 11, 2020

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Presenter Dan PraterSenior Managing Consultantdprater@bkd.com

WHY should an organization do strategic planning?

MissionVision

Staff

Board

Donors

VolunteersMissionSuccess

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Strategic Planning implies that some organizational

decisions & actions are more important than others—

& much of the strategy lies in making the tough

decisions about what is most important to achieving

organizational success

https://majesty.gulfcraftinc.com/superyachts/majesty-140

Precision Matters

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Precision Matters

“Which road do I take?” Alice asked

“Where do you want to go?” the cat responded

“I don’t know,” Alice answered

“Then,” said the cat, “it doesn’t matter!”

It matters which road you choose

Do you know where your organization is headed?

https://uncorkedcanvas.com/event/alice-in-wonderland-4/

There must by buy-in from

leadership … a willingness &

a commitment to the process

Strategic Planning requires a willingness

to change—you must be willing to think

about new things & different ways to

achieve your mission

https://www.legalwatercoolerblog.com/2018/04/10/lma18-strategic-planning-part-1-introduction/

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Integrated Planning Advancement

Planning

HR Planning

Technology Planning

Facility Planning

Business Planning

Identity & Branding

Program Planning

STRATEGICPLANNING

Keys to Successful Strategic Planning & Implementation

All stakeholders(from insiders to broad public)

Commitment Credibility Communication Clarity

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STRATEGIC PLANNING In its simplest form, strategic planning answers

Who are we?

Where are we now? (Not in crisis mode)

Where do we hope to go?

How will we get there?

How will we know once we arrive?

The Strategy PyramidOrganizational

Programmatic

Operational

DetermineMission,

Vision, trends,partners, market position

Decide on approaches &offer programs to achieve specific

outcomes related to target audience

Administer & oversee systems, policies & personnel in areas such as finance, HR, communication

& information technology

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Two Approaches to Planning• Contextual Approach

Develops strategies from present context

Focuses on fine-tuning mission & vision, public perceptions, understanding impact of programs/services

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• Stable & mature organizations. No radical change needed• Leadership rooted in missionBest for

• Organization keeps basic structure• Need for improved management capacity, impact assessmentBest when

Two Approaches to Planning

• Revolutionary Approach

Develops strategies outside of present context

Challenges current practices/assumptions & seeks to incorporate change, possibilities

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• World is not static• Societal & organizational dynamics are interdependent• Past practices & lack of planning brought costly consequences

Best with realization that

• New mission/vision is needed• New image in market/field is desired• Board & staff divided on strategies

Best when

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Process1. Confirm Commitment & Readiness

• Up-front commitment by the leaders Not a “hands-off” approach

Full commitment of time, funding, follow-up

• Allocate time & resources needed to complete plan & carry out action steps

• Who?

Guides planning process (consultant, committee)

Plans retreat

Develops surveys & analyzes data

Prepares final document

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Process1. Confirm Commitment & Readiness

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• Gather Data Decisions about your organization’s future must be built on reliable data—not on anecdotal

information

• Evidence-based practice (EBP) Data should be

• Reliable

• Meaningful

• Actionable

• Impactful

• Current/timely

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Process2. Collect Vital Signs

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EconomyTrends

TechnologyBehaviors

Your Organization

• History• Org chart• Programs• Services• By-laws

Your Impact

• Service area• Priorities• Benefits• Success• Reports/data

ImportantIndicators

• Poverty rates• Free/reduced

lunches• Abuse/violence• Graduation rates• Area information• Other indicators

Process2. Collect Vital Signs

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• External Clients Partner organizations Stakeholders (partner organizations) Community leaders

• Internal Staff Board Volunteers Donors

Surveys & Focus Groups

https://selfgrasp.com/marketing/what-is-a-focus-group/

Process2. Collect Vital Signs

• Gather Data Decisions about your organization’s future must be built on reliable data—not on anecdotal

information

• Evidence-based practice (EBP) Data should be

• Reliable

• Meaningful

• Actionable

• Impactful

• Current/timely

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Process2. Collect Vital Signs

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• Good strategic planning is participatory & should not be exclusive to a small group of stakeholders Representatives from all areas where your work is concerned—education, health

care, gov’t., faith, etc.

Geographic & demographic representation

Incorporate voices of those affected by the plan

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Process3. Build a Planning Team

• 100 percent participation mandatory—no exceptions for anyone Introductions

Housekeeping

Ground rules

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• Everyone votes – thumbs up/down, keep discussing

• Advocate for your position

• 100 percent support required

Process4. Conduct Planning Session

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Key Priority Key Priority Key Priority Key Priority

Mission Vision Values

Goal(s) Goal(s) Goal(s) Goal(s)

Objective(change)

Objective(change)

Objective(change)

Objective(change)

Methods/Activities

Methods/Activities

Methods/Activities

Methods/Activities

KPI(outcomes)

KPI(outcomes)

KPI(outcomes)

KPI(outcomes)

Timeline Timeline Timeline Timeline

Process4. Conduct Planning Session

Shared Beliefs & Values

• These are formal expressions of the organization’s fundamental values

• Beliefs & Values are declarations of universal human values that are held by the people who make up the organization

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SharedBeliefs,Values

These represent the behaviors of the people of the

organization. They live by these regardless of where they

are or under what conditions they found themselves

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• Statements that guide your work

• Mostly used to guide behaviors inside the organization (staff/board/volunteers)

• Must be measurable by actions of person

• Could be used in hiring & in annual evaluation

• It answers the question “What do we believe in?”

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Shared Beliefs & Values

Outreach & fundraising should be based on beliefs, not just on financial need

Philanthropy:based in values

Development:systems &

materials needed

Fundraising:enabling peopleto act on their

Beliefs

Shared Beliefs & Values

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SHAREDBELIEFS& VALUES

• Friendliness Everyone who is in the office will stop to greet & say hello

to any visitor who comes in, even for a few seconds

• Examples Open communication is valued; opinions should be heard,

considered & respected We value & encourage inclusivity because it is critical to

our success We will conduct ourselves with integrity by being honest &

holding ourselves accountable We joyfully serve clients & one another without passing

judgment, regardless of personal situation

MISSION –VISION

• Mission Statement Truths

There is no magic formula—not just one way to write it Bigger, famous companies have the luxury of

short, less-descriptive statements (they are already understood) Focus of statement should be on the

people/community served, not on the organization itself

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MISSION –VISION All organizational activities align with & further your stated

mission

Why we exist

Guides decisions

Clarifies priorities

Mission statementRaison D’etra

Mission – Vision

• Re-examining your mission statement? Change in program/operations (merger, new focus) Changing landscape (economy, client desires, funding,

policies, etc.) As a reminder to board, staff, others of importance

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Even if you have a strong mission

statement, it is good to re-examine

it every three to five years

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Mission – Vision

• Habitat for Humanity: Where everyone has a decent place to live

• World Vision: For every child, life in all its fullness

• WHAT IS YOUR VISION?

Your statement must representthe end of the road

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Mission – Vision

• Vision Statement Defines the dream, describing the world you hope to see

Describes a desired state or condition

• A good vision statement will do four thingsGuide your entire team

Remind you where you’re headed

Control your focus, decision-making

Free you from doing pointless activities

1

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MISSION –VISION

Mission Statement

Vision Statement

Beliefs orValues

0 20 40 60 80

Yes

No

0 20 40 60 80 100

Yes

No

0 20 40 60 80 100

Yes

No

70.5%

29.5%

82.4%

17.6%

88.3%

11.7%

Establishing Parameters

• Parameters or boundaries are important for keeping your organization on track

• True North

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Environmental Scan• SWOT Analysis – Strengths, Weaknesses, Opportunities, Threats

• Use strengths to go after the problems (T & W)

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Strengths

Weaknesses

Opportunities

Threats

Internal(within ourcontrol)

External(outside ourcontrol)

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Strategic or Key Priorities

What must we focus on to achieve our vision?

What are the critical areas of our organization that we must pay attention to if we are going to succeed?

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Threats

MISSION KEY PRIORITIES GOALS

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Key Priority Tips

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Threats

1

2

3

4

5

Too many priorities confuses leadership & overwhelms staff

Force-rank projects to determine what’s really important

Communicate – from top to bottom, everyone should know which projects & initiatives are most important (& why)

Repeat often – opportunities, issues, threats are ongoing. So this is not a one-time process; it is ongoing

Not everything is a “Priority.” If everything is a priority, then nothing is

From Broad to Narrow

Key Priority Key Priority Key Priority Key Priority

Mission Vision

Goal(s) Goal(s) Goal(s) Goal(s)

Objective(change)

Objective(change)

Objective(change)

Objective(change)

Methods/Activities

Methods/Activities

Methods/Activities

Methods/Activities

KPI(outcomes)

KPI(outcomes)

KPI(outcomes)

KPI(outcomes)

Timeline Timeline Timeline Timeline

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Timeline of Implementation

1Priority Area Who What When

Key Performance Indicators

1 • Define Success

When it comes to determining how efficiently your organization operates, few things are as helpful as accurate, relevant performance indicators that can show you exactly how well you’re doing

Set benchmark indicators as reference points to evaluate

progress toward reaching goals

Program effectivenessFundraisingMarketing/social mediaVolunteer recruitment

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Nation’s Largest: Shift in Funding Approach

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OUTCOME VS. ACTIVITY

• Activity – What you do We feed hungry kids before school

• Outcome – Result of the activity Improved health, better behavior, better grades,

higher graduation rate

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The Path Toward Impact1

• What is the ultimate goal or desire?

Vision – “Why”

• How does change happen?

Theory of Change – “Change process”

• What part of that can we impact?

Mission – “What we do”

• What change are we aiming for?

Outcomes – “To what degree”

• What will it take to make that change?

Logic Model – “How”

Two Pillars of Outcome Measurement

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Logic Model & Theory of Change

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Two Pillars of Outcome Measurement

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Logic Model & Theory of Change

The goal is to bring about change in something or someone. To know if change has occurred, you must set benchmarks of success

IF      then IF      thenIF       then IF        then IF      then

Opportunity Matrix

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Decision-making tool for current & new activities

100

90-99

80-89

70-79

60-69

50-59

40-49

30-39

20-29

10-19

0-9

A B C D

Almost certain: 80-100

Likely: 60-79

Possible:40-59

Unlikely:20-39

Danger zone: 0-19

A. Mission/Vision alignment

B. Support/enhance existing services

C. Capability (time, people, assets)

D. FIG (fills important gap - need)

E. Financial impact (income/expense)

F. Sustainability (funder support)

Sometimes you have to say No to good ideasE F

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Competitive Advantage

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Decision-making tool for current & new activities

Defined from the viewpoint of the “customer”

The presence of visible, obvious, & measurable ways in which your organization or product differs from (& is better than) its peers

Intl. staturePolitical/religious neutralityGov’t. affiliation (FEMA)

Christian principlesCommitment to PoorAffiliation with Christmas

Competitive Advantage

1 • One of the fastest ways to understanding your audience is to identify the type of people who most likely care about your organization Impacts your NPO has on the world

Other organizations that do similar work/missions

Type of supporters who care about this work/mission

Why these people should/would choose you (over your competitors)

• What do they believe about your organization that makes them join you or support you?

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• Compile retreat decisions

• Clarify with team leaders

• CEO input, clarification

• Present draft to board for approval

• Accountability – refer to plan frequently for guidance

Process5. Finish Strategic Plan Report

Questions?

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bkd.com | @BKDLLP @BKDNFP @BKDHigherEd @Dan_Prater

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Thank you!

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bkd.com | @BKDLLP @BKDNFP @BKDHigherEd @Dan_Prater

The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered

Thank you!