robert m. sheehan, jr., ph.d. principal sheehan nonprofit consulting @sheehanimpact...
TRANSCRIPT
Robert M. Sheehan, Jr., Ph.D.
PrincipalSheehan Nonprofit Consulting
@SheehanImpact
© Robert M. Sheehan, Jr., Ph.D., 2012
Robert M. Sheehan, Jr., Ph.D.
PrincipalSheehan Nonprofit Consulting
@SheehanImpact
© Robert M. Sheehan, Jr., Ph.D., 2012
BREAKTHROUGHSTRATEGY
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Strategies for Organizational Success II - June 27, 2012
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Strategies for Organizational Success Series
Sponsors:
Additional Support:
Hudson Family Fund
ABOUT ROB SHEEHAN
*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA
Program
*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork
*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA
Program
*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork
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ABOUT ROB SHEEHAN
Ph.D., The Ohio State University College of Business School of Public Policy & Management
Organization Development, Leadership, Organization Effectiveness
Published Researcher
Ph.D., The Ohio State University College of Business School of Public Policy & Management
Organization Development, Leadership, Organization Effectiveness
Published Researcher
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ABOUT ROB SHEEHAN
CEO, 18 years, Two National Nonprofits
AΣΦ Educational Foundation, 1981-1990
LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising
Executive), 1986-2004
CEO, 18 years, Two National Nonprofits
AΣΦ Educational Foundation, 1981-1990
LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising
Executive), 1986-2004
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DESIGN FOR THE DAY
To provide you with a working knowledge of the Breakthrough Strategy approach by creating a completed “draft” strategy for your organization
To demonstrate the steps you can go through with a Strategy Development Group to develop your “official” strategy
To provide you with a working knowledge of the Breakthrough Strategy approach by creating a completed “draft” strategy for your organization
To demonstrate the steps you can go through with a Strategy Development Group to develop your “official” strategy
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THE IMPORTANCE OF LEADERSHIP
Nothing we discuss today can be successfully utilized within an organization without effective quality leadership.
Ethical, Inclusive, Authentic, Empowering
Contributes toward building a more just, equitable and thriving society
Nothing we discuss today can be successfully utilized within an organization without effective quality leadership.
Ethical, Inclusive, Authentic, Empowering
Contributes toward building a more just, equitable and thriving society
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QUICK SURVEY
How many of you think that most people in the nonprofit
world work very hard?
How many of you think that most people in the nonprofit
world work very hard?
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QUICK SURVEY
How many of you think that most people in the nonprofit
world are smart?
How many of you think that most people in the nonprofit
world are smart?
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LEAP OFREASON
“Incremental Change is Not Enough”
-Mario Morino
Leap of Reason
“Incremental Change is Not Enough”
-Mario Morino
Leap of Reason
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BREAKTHROUGH STRATEGY
The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact.
The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact.
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NEW PATTERNS OF THOUGHT
“The problems we face cannot be solved using the same patterns of thought that were used to create them.”
- Albert Einstein
“The problems we face cannot be solved using the same patterns of thought that were used to create them.”
- Albert Einstein
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BEING UNREASONABLE
“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”
- George Bernard Shaw
“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”
- George Bernard Shaw
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“I thought I would drop you a note to tell you how much I enjoyed your workshop on strategic planning at the NeighborWorks conference. It has fundamentally changed the way I think about this issue. Many thanks for making the time to share this information with agencies like ours.”
- Denise MatykaExecutive Director
Project Home, Madison, WI
“I thought I would drop you a note to tell you how much I enjoyed your workshop on strategic planning at the NeighborWorks conference. It has fundamentally changed the way I think about this issue. Many thanks for making the time to share this information with agencies like ours.”
- Denise MatykaExecutive Director
Project Home, Madison, WI15
WHAT ISSTRATEGY?
Strategy is more than strategic planning Strategy is not just a collection of goals
and budget forecasts Most organizations have plenty of
plans, but very little strategy Strategy is an integrated and coherent
cause & effect performance story which has a beginning, middle, and end..
Strategy is more than strategic planning Strategy is not just a collection of goals
and budget forecasts Most organizations have plenty of
plans, but very little strategy Strategy is an integrated and coherent
cause & effect performance story which has a beginning, middle, and end..
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WHAT ISSTRATEGY?
Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future
Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future
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WHAT ISEFFECTIVE PERFORMANCE?
For Profits: $$$$$$$$$$
Non Profits: Mission Accomplishment
For Profits: $$$$$$$$$$
Non Profits: Mission Accomplishment
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WHAT ISNONPROFIT STRATEGY?
Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future
Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future
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NONPROFIT STRATEGY
The purpose of having a strategy is to guide the organization toward its desired future.
Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.
The purpose of having a strategy is to guide the organization toward its desired future.
Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.
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NONPROFIT STRATEGY
The “cause & effect performance story” tells how you will get from “here to there” while . . .
. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.
The “cause & effect performance story” tells how you will get from “here to there” while . . .
. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.
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PRODUCING HIGH PERFORMANCE
• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?
• The essential elements of organization performance:• Financing• Staffing• Programs/Services
• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?
• The essential elements of organization performance:• Financing• Staffing• Programs/Services
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PERFORMANCE SYSTEM QUESTIONS
• What programs/services do we want to provide to make a mission impact?
• How will we staff the programs/services?
• How will we fund the operation?
• What programs/services do we want to provide to make a mission impact?
• How will we staff the programs/services?
• How will we fund the operation?
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CYCLE OF SUSTAINABLE
PERFORMANCE• Positive reinforcing cycle
• Sustains all the parts
• Parts feed & sustain one another
• All parts are interdependent
• There is a cause & effect logic to how they interact
• Strategy is the “story” that guides this sustainable performance
• Positive reinforcing cycle
• Sustains all the parts
• Parts feed & sustain one another
• All parts are interdependent
• There is a cause & effect logic to how they interact
• Strategy is the “story” that guides this sustainable performance
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STRATEGY PROCESSDESIGN ISSUES
Meaningful Involvement of Stakeholders
Consider Board Assessment if not completed in prior two years
Select Strategy Development Group with credibility and legitimacy
Not too long, not too short
Meaningful Involvement of Stakeholders
Consider Board Assessment if not completed in prior two years
Select Strategy Development Group with credibility and legitimacy
Not too long, not too short25
SELECTING YOUR STRATEGY DEVELOPMENT
GROUP
Representative of key stakeholder groups
Legitimacy and Credibility Assure formal approval by Board
of Directors Limit group to 15 – 20 people
Representative of key stakeholder groups
Legitimacy and Credibility Assure formal approval by Board
of Directors Limit group to 15 – 20 people
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STRATEGYDEVELOPMENT PROCESS
Establish Mission Gap Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
Establish Mission Gap Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
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THE BREAKTHROUGHSTRATEGY WORKBOOK
A guide for strategy development that follows the Mission Impact process.
Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).
An example of the final output from a strategy development process is included on pp. 22 – 28.
A guide for strategy development that follows the Mission Impact process.
Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).
An example of the final output from a strategy development process is included on pp. 22 – 28.
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STRATEGYDEVELOPMENT MAP
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Your
Mission Impact
Your
Mission Impact
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MISSION
In your own words, please write what you say is the mission of your organization. One way to think of a “mission” is that it is a stated intention to make a “difference” in a person, place, or thing.” Make sure to specify the “person, place, or thing” and the “difference” the organization intends to make.
In your own words, please write what you say is the mission of your organization. One way to think of a “mission” is that it is a stated intention to make a “difference” in a person, place, or thing.” Make sure to specify the “person, place, or thing” and the “difference” the organization intends to make.
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MISSION STATEMENTS
Typical:“To provide services to the Homeless
in Charles County.”
Instead of:“To provide services to the Homeless
in Charles County which enhance their economic self-sufficiency.”
Typical:“To provide services to the Homeless
in Charles County.”
Instead of:“To provide services to the Homeless
in Charles County which enhance their economic self-sufficiency.”
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MISSION AIMAND IMPACT
AIM: Specify exactly what “persons, places, or things” the organization aims to impact:
IMPACT: Specify the difference your organization intends to make in the condition of those your organization is aiming for:
AIM: Specify exactly what “persons, places, or things” the organization aims to impact:
IMPACT: Specify the difference your organization intends to make in the condition of those your organization is aiming for:
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INSPIRATIONAL MISSION
“Does our mission express the result of greatest intrinsic significance to us?”
“What further impact/result are we making?”
“What result do we most care about?
“Does our mission express the result of greatest intrinsic significance to us?”
“What further impact/result are we making?”
“What result do we most care about?
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MISSIONACCOMPLISHMENT
““Explain how you determine whether your organization is or is not accomplishing the mission. Please list any results, outcomes, and specific evidence you look at to make this determination?”
““Explain how you determine whether your organization is or is not accomplishing the mission. Please list any results, outcomes, and specific evidence you look at to make this determination?”
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Reliable MeasuresA “reliable measure” collects evidence
which could be confirmed by an objective observer.
Reliable Impact MeasuresA “reliable impact measure” is a reliable
measure which represents an impact—difference made—on the condition of a person, place, or thing outside the organization.
Reliable MeasuresA “reliable measure” collects evidence
which could be confirmed by an objective observer.
Reliable Impact MeasuresA “reliable impact measure” is a reliable
measure which represents an impact—difference made—on the condition of a person, place, or thing outside the organization.
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MISSION ACCOMPLISHMENT MEASURES
Reliable impact measures which relate directly to the accomplishment of an organization mission can be called “Mission Accomplishment Measures”
Reliable impact measures which relate directly to the accomplishment of an organization mission can be called “Mission Accomplishment Measures”
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WE’RE LOST BUT MAKING GOOD TIME
“Here’s the problem in a nutshell: We don’t manage to outcomes, thus greatly diminishing our collective impact.”
-Mario Morino, Leap of Reason
“Here’s the problem in a nutshell: We don’t manage to outcomes, thus greatly diminishing our collective impact.”
-Mario Morino, Leap of Reason
MISSION ACCOMPLISHMENT MEASURES
Help coordinate action so end result is understood
Help judge whether program is working – should be expanded, cut, eliminated
Learn from mistakes Inform resource allocation Connect to CEO Evaluation Show results to Funders!!!
Help coordinate action so end result is understood
Help judge whether program is working – should be expanded, cut, eliminated
Learn from mistakes Inform resource allocation Connect to CEO Evaluation Show results to Funders!!!
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CHARLES COUNTY HOMELESS SERVICES
Mission
To end homelessness in Charles County
Mission Accomplishment Measure
Number of homeless people in Charles County, as reported by county
officials.
Mission
To end homelessness in Charles County
Mission Accomplishment Measure
Number of homeless people in Charles County, as reported by county
officials.
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THOMPSONACADEMY
MissionTo prepare young people for excellence in
post-secondary education
Mission Accomplishment MeasuresPercentage of graduates enrolled in
college after graduationSatisfaction of preparation survey scores of
graduates two years following graduation
MissionTo prepare young people for excellence in
post-secondary education
Mission Accomplishment MeasuresPercentage of graduates enrolled in
college after graduationSatisfaction of preparation survey scores of
graduates two years following graduation
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FRANKLIN COUNTYCHILDREN’S SERVICES
Mission*
Elimination of maltreatment of children
Mission Accomplishment Measure*
Number of reported and substantiated cases of child maltreatment
*1992 Version
Mission*
Elimination of maltreatment of children
Mission Accomplishment Measure*
Number of reported and substantiated cases of child maltreatment
*1992 Version
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MOTHERS AGAINSTDRUNK DRIVING
Mission
To stop drunk driving and to support victims of this violent crime
Mission Accomplishment Measure
Number of deaths from drunk driving crashes
Mission
To stop drunk driving and to support victims of this violent crime
Mission Accomplishment Measure
Number of deaths from drunk driving crashes
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MERRILL COUNTYLITERACY COUNCIL
Mission
To assure that all adults age 16 or older in Merrill County are literate.
Mission Accomplishment Measure
The literacy rate in Merrill County, as reported by county officials.
Mission
To assure that all adults age 16 or older in Merrill County are literate.
Mission Accomplishment Measure
The literacy rate in Merrill County, as reported by county officials.
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“MISSIONGAP”
Describe the current condition of the “persons, places, or things” for whom/which the organization intends to make a difference.
What would their condition be like, ideally?
Describe the current condition of the “persons, places, or things” for whom/which the organization intends to make a difference.
What would their condition be like, ideally?
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NORTH TEXASFOOD BANK
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MERRILL COUNTYLITERACY COUNCIL
Mission Gap
With 100,000 adults, age 16 and older, living in Merrill County, the Mission
Gap is 20,000 adults.
Mission Gap
With 100,000 adults, age 16 and older, living in Merrill County, the Mission
Gap is 20,000 adults.
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YOURMISSION GAP
Do Do youyou need a need a Breakthrough Breakthrough
Strategy?Strategy?
Do Do youyou need a need a Breakthrough Breakthrough
Strategy?Strategy?
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STRATEGYDEVELOPMENT PROCESS
✔ Establish Mission Gap Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
✔ Establish Mission Gap Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
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The Power
of
Vision
The Power
of
Vision
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ANALYTICALVISIONING
Analyze Internal Capabilities & Predictable Changes
Analyze External Environment & Predictable Changes
Forecast (Extrapolate) Reasonable Future
Establish “Vision” as “Best Case Scenario”
Analyze Internal Capabilities & Predictable Changes
Analyze External Environment & Predictable Changes
Forecast (Extrapolate) Reasonable Future
Establish “Vision” as “Best Case Scenario”
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ASPIRATIONALVISIONING
Dream with no constraints Create an Ideal “Future Picture” based
on what is Inspirational and Drives Passion
Create New Internal Capabilities Search Environment for Opportunity
Dream with no constraints Create an Ideal “Future Picture” based
on what is Inspirational and Drives Passion
Create New Internal Capabilities Search Environment for Opportunity
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DREAM
“Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’”
- George Bernard Shaw
“Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’”
- George Bernard Shaw
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CHANGINGTHE WORLD
“Because the people who are crazy enough to think they can change the world are the ones who do.”
-Steve Jobs
“Because the people who are crazy enough to think they can change the world are the ones who do.”
-Steve Jobs
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DIVINEMADNESS
“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”
-Longfellow
“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”
-Longfellow
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STRATEGICINTENT
Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”
- Hamel & Prahalad
Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”
- Hamel & Prahalad
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IDEALIZEDDESIGN
“In this process the designers assume the organization being planned for was completely destroyed last night, but its environment remains exactly as it was. Then they try to design that organization with which they would replace the existing organization right now, if they were free to replace it with any organization they wanted . . .”
-Russell L. Ackoff
“In this process the designers assume the organization being planned for was completely destroyed last night, but its environment remains exactly as it was. Then they try to design that organization with which they would replace the existing organization right now, if they were free to replace it with any organization they wanted . . .”
-Russell L. Ackoff
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IDEALIZEDDESIGN
“The power of Idealized Design is that when you say that the system was destroyed last night, you not only destroy the system, you destroy all of the constraints with it. That is freedom and that is what leads to transformation.”
-J. Gerald Suárez
“The power of Idealized Design is that when you say that the system was destroyed last night, you not only destroy the system, you destroy all of the constraints with it. That is freedom and that is what leads to transformation.”
-J. Gerald Suárez
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CREATIVETENSION
“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”
- Peter Senge
“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”
- Peter Senge
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VISION
With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:
“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.
With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:
“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.
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Why dream a vision that can never come true?
Why dream a vision that can never come true?
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VISION
Visions give us something to aspire to.
Visions can inspire others to help make dreams come true.
Visions provide meaning to the “day to day.”
Visions give us something to aspire to.
Visions can inspire others to help make dreams come true.
Visions provide meaning to the “day to day.”
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How should leaders establish vision?
How should leaders establish vision?
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POSITIONAL LEADERSHIP
Leadership by “lamination”
vs.
Leadership as a catalyst
Leadership by “lamination”
vs.
Leadership as a catalyst
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TRANSFORMATIONALLEADERSHIP MODEL
PARTICIPANTSLEADERS
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WHAT FOLLOWERS WANT
“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”
-Kouzes & Posner,
2009
“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”
-Kouzes & Posner,
2009
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MERRILL COUNTYLITERACY COUNCIL
Vision Highlights
*Staff of 24 with competitive comp & professional development plans
*Increase in volunteers by 3,000%
*Fully engaged Board with strong community connections
*Endowment of $15 million
Vision Highlights
*Staff of 24 with competitive comp & professional development plans
*Increase in volunteers by 3,000%
*Fully engaged Board with strong community connections
*Endowment of $15 million
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STRATEGYDEVELOPMENT PROCESS
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
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The Importance
Of Goals
The Importance
Of Goals
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VISION TO ACTION:GOALS
Direct attention to relevant activities
Affect intensity of effort
Affect persistence
Strategic Stretch Goals: Outcome-Based & SMART
Direct attention to relevant activities
Affect intensity of effort
Affect persistence
Strategic Stretch Goals: Outcome-Based & SMART
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OUTCOME VS. ACTIVITY GOALS
“To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2012.”
“To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2012.”
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OUTCOME VS. ACTIVITY GOALS
“To receive $300,000 in contributions from our organization’s previous donors by December 1, 2012.”
“To receive $300,000 in contributions from our organization’s previous donors by December 1, 2012.”
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MANAGE FOROUTCOMES
“While it may appear to be an overstatement, it is nonetheless true: the biggest single mistake managers make is that they manage activities instead of managing results. The cause is usually very simple: they cannot easily see the difference between activities and results.”
-Drs. Jeffrey & Laurie Ford
Hotwired Management
“While it may appear to be an overstatement, it is nonetheless true: the biggest single mistake managers make is that they manage activities instead of managing results. The cause is usually very simple: they cannot easily see the difference between activities and results.”
-Drs. Jeffrey & Laurie Ford
Hotwired Management
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SMARTGOALS*
Specific Measurable Attainable Relevant Time-bound
*Traditional version
Specific Measurable Attainable Relevant Time-bound
*Traditional version
74
ATTAINABLE GOALS
Set with at least 80% chance of success
Sounds reasonable – failure can be followed by negative consequences
Good for generating “quick wins” Good for Learning Goals in new
domains Good for a team that needs to build
confidence
Set with at least 80% chance of success
Sounds reasonable – failure can be followed by negative consequences
Good for generating “quick wins” Good for Learning Goals in new
domains Good for a team that needs to build
confidence75
ATTAINABLE GOALS
What might be the downside of setting goals that are reasonably “Attainable?”
What might be the downside of setting goals that are reasonably “Attainable?”
76
ATTAINABLE GOALS
What might be the downside of setting goals that are reasonably “Attainable?”
Goal research: The more difficult the goal, the higher
the level of performance.
What might be the downside of setting goals that are reasonably “Attainable?”
Goal research: The more difficult the goal, the higher
the level of performance.
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SMARTGOALS*
Specific Measurable Aggressive, yet Achievable Relevant Time-bound
*Doug Smith version
Specific Measurable Aggressive, yet Achievable Relevant Time-bound
*Doug Smith version
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AGGRESSIVEYET ACHIEVABLE
Allows you to maximize performance, but with a higher chance of failure
If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment
Allows you to maximize performance, but with a higher chance of failure
If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment
79
SMARTCOMPARISONS
ATTAINABLE
vs.
AGGRESSIVE & ACHIEVABLE
Which SMART formula is best?
ATTAINABLE
vs.
AGGRESSIVE & ACHIEVABLE
Which SMART formula is best?
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SMARTCOMPARISONS
ATTAINABLEBest when the priority is to accurately
predict performance of the current system
AGGRESSIVE & ACHIEVABLEBest when the priority is to maximize
the performance of the current system
ATTAINABLEBest when the priority is to accurately
predict performance of the current system
AGGRESSIVE & ACHIEVABLEBest when the priority is to maximize
the performance of the current system
81
SMARTGOALS
Write out a goal that you are currently working on and write
it so it fits the “SMART” guidelines.
Write out a goal that you are currently working on and write
it so it fits the “SMART” guidelines.
82
A NEW ‘A’FOR SMART*
Specific Measurable *Almost Impossible Relevant Time-bound
*Rob Sheehan version
Specific Measurable *Almost Impossible Relevant Time-bound
*Rob Sheehan version
83
GREATLEADERS
Great Leaders Have a Healthy Disregard for the Impossible
Great Leaders Have a Healthy Disregard for the Impossible
84
IMPOSSIBLE . . .
“Space travel is utter bilge.”
- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956
“Space travel is utter bilge.”
- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956
85
IMPOSSIBLE . . .
“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”
- Lee Deforest, American Inventor (1873-1961)
“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”
- Lee Deforest, American Inventor (1873-1961)
86
IMPOSSIBLE . . .
“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”
- The Boston Post, Editorial, 1865
“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”
- The Boston Post, Editorial, 1865
87
IMPOSSIBLE . . .
“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”
- Maj. Gen. John Kerr, U.S. Army (1878-1955)
“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”
- Maj. Gen. John Kerr, U.S. Army (1878-1955)
88
IMPOSSIBLE . . .
“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”
- Dionysius Lardner, English Scientist
(1793-1859)
“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”
- Dionysius Lardner, English Scientist
(1793-1859)
89
TRADITIONAL ANALYTICAL GOALS“This is a forecast of the result we should be
able to produce if we work hard at it.”
ASPIRATIONAL STRETCH GOALS“This is the very best result we can
imagine possible (1% chance) and we have no idea how to make it happen.”
ASPIRATIONAL STRETCH GOALS“This is the very best result we can
imagine possible (1% chance) and we have no idea how to make it happen.”
90
STRETCHGOALS
You can’t think outside of the box, when you are
standing in it!
You can’t think outside of the box, when you are
standing in it!
91
STRETCHGOALS
You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it.
You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it.
92
STRETCHGOALS
Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning.
Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning.
93
STRETCHGOALS
You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play.
You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play.
94
SAFE - FAILENVIRONMENT
“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”
The Failure Tolerant Leader
Harvard Business Review, 2002
“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”
The Failure Tolerant Leader
Harvard Business Review, 2002
95
STRETCHGOALS
You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks.
You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks.
96
Pessimists & Optimists Unite
Use “Flexible Optimism”
Pessimists & Optimists Unite
Use “Flexible Optimism”
97
STRETCHGOALS
Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high.
Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high.
98
STRATEGICINTENT
“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”
-Gary Hamel & C.K. Prahalad
“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”
-Gary Hamel & C.K. Prahalad
99
THE WALLSTREET JOURNAL
“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”
-Jack Welch, March 8, 1994
“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”
-Jack Welch, March 8, 1994 100
START WITH THE END IN MIND THE END IN MIND
*When brainstorming new ways to go about accomplishing a goal,
“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.
*When brainstorming new ways to go about accomplishing a goal,
“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.
101
STRATEGIC STRETCHGOALS
Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization
toward your vision and help close your Mission Gap most effectively
Meet the Almost Impossible SMART criteria
Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization
toward your vision and help close your Mission Gap most effectively
Meet the Almost Impossible SMART criteria
102
CHALLENGES WITHSTRETCH GOALS
Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals.
Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals.
103
CHALLENGES WITHSTRETCH GOALS
You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that.
You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that.
104
CHALLENGES WITHSTRETCH GOALS
The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else.
The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else.
105
CHALLENGES WITHSTRETCH GOALS
You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .
. . . . . unless you are Dilbert’s boss.
You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .
. . . . . unless you are Dilbert’s boss.
106
107
The biggest challenge is setting Strategic Stretch
Goals is overcoming the Fear of Failure that has been bred
within us.
The biggest challenge is setting Strategic Stretch
Goals is overcoming the Fear of Failure that has been bred
within us.
108
YOU FAILURE!!!
“I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!”
“I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!”
109
Accomplishment:Any result of positive Magnitude
Success:Any accomplishment which meets or
exceeds its intended result
Failure:To fall short of an intended result
Accomplishment:Any result of positive Magnitude
Success:Any accomplishment which meets or
exceeds its intended result
Failure:To fall short of an intended result
110
OHIO STATEFUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
1991 $50,000 $62,000
1992 $150,000 $143,000
111
LEADERSHAPEPARTICIPANTS
0
500
1000
1500
2000
2500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
112
FAILURE WITHTRADITIONAL GOALS
“We messed up.”“We messed up.”
113
FAILURE WITHSTRETCH GOALS
“Look at our results!”
“What could we have done differently?”
“I’m glad we went for it, but I wish we had accomplished it 100%”
“Look at our results!”
“What could we have done differently?”
“I’m glad we went for it, but I wish we had accomplished it 100%”
114
FAILURE ANDCREATIVE TENSION
“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”
- Peter Senge, The Fifth Discipline
“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”
- Peter Senge, The Fifth Discipline
115
FAILURE ANDINNOVATION
“Failure is just a part of the culture of innovation. Accept it and grow stronger.”
- Albert Yu, SVP, Intel Corp
“Failure is just a part of the culture of innovation. Accept it and grow stronger.”
- Albert Yu, SVP, Intel Corp
116
GETTINGSMARTER FASTER
“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”
- Tom Peters, Fast Company, December 2001
“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”
- Tom Peters, Fast Company, December 2001
117
GOALS RECAP
Attainable Goals: 80% attainable; good if the priority is high predictability
Aggressive Goals: 35% attainable; good for improving performance
Almost Impossible: 1% attainable; good for innovation and breakthrough performance
Attainable Goals: 80% attainable; good if the priority is high predictability
Aggressive Goals: 35% attainable; good for improving performance
Almost Impossible: 1% attainable; good for innovation and breakthrough performance
118
What kind of future do you want?
What kind of future do you want?
119
MERRILL COUNTYLITERACY COUNCIL
Unrestricted grants from all sources will increase by 300 percent to $2 million by June 30, 2015.
The number of certified literacy teaching volunteers will increase by 500+% to 100 by June 30, 2015.
Financial reserves will be increased by $400,000 by June 30, 2015.
Unrestricted grants from all sources will increase by 300 percent to $2 million by June 30, 2015.
The number of certified literacy teaching volunteers will increase by 500+% to 100 by June 30, 2015.
Financial reserves will be increased by $400,000 by June 30, 2015.
120
MERRILL COUNTYLITERACY COUNCIL
An endowment fundraising campaign for $5 million will be initiated and a lead gift of $500,000 will be pledged by June 30, 2015.
The literacy rate in Merrill County, as reported by county officials, will be 85 percent by June 30, 2015.
An endowment fundraising campaign for $5 million will be initiated and a lead gift of $500,000 will be pledged by June 30, 2015.
The literacy rate in Merrill County, as reported by county officials, will be 85 percent by June 30, 2015.
121
STRATEGYDEVELOPMENT PROCESS
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative
122
Clarity on Your Current RealityClarity on Your Current Reality
123
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
Aspirations Strategy Organizational
Skills Human
Resources
Aspirations Strategy Organizational
Skills Human
Resources
Systems and Infrastructure
Organizational Structure
Culture
Systems and Infrastructure
Organizational Structure
Culture
124
Aspirations: An organization’s mission, vision, and overarching goals, which collectively articulate its common sense of purpose and direction
Aspirations: An organization’s mission, vision, and overarching goals, which collectively articulate its common sense of purpose and direction
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
125
Strategy: The coherent set of actions and programs aimed at fulfilling the organizations’ overarching goals
Strategy: The coherent set of actions and programs aimed at fulfilling the organizations’ overarching goals
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
126
Organizational Skills: The sum of the organization’s capabilities, including such things (among others) as performance measurement, planning, resource management, and external relationship building
Organizational Skills: The sum of the organization’s capabilities, including such things (among others) as performance measurement, planning, resource management, and external relationship building
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
127
Human Resources: The collective capabilities, experiences, potential and commitment of the organization’s board, management team, staff, and volunteers
Human Resources: The collective capabilities, experiences, potential and commitment of the organization’s board, management team, staff, and volunteers
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
128
Systems and Infrastructure: The organization’s planning, decision-making, knowledge management, and administrative systems, as well as the physical and technological assets that support the organization
Systems and Infrastructure: The organization’s planning, decision-making, knowledge management, and administrative systems, as well as the physical and technological assets that support the organization
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
129
Organizational Structure: The combination of governance, organizational design, interfunctional coordination, and individual job descriptions that shapes the organization’s legal and management structure
Organizational Structure: The combination of governance, organizational design, interfunctional coordination, and individual job descriptions that shapes the organization’s legal and management structure
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
130
Culture: The connective tissue that binds together the organization, including shared values and practices, behavior norms, and most important, the organization’s orientation towards performance
Culture: The connective tissue that binds together the organization, including shared values and practices, behavior norms, and most important, the organization’s orientation towards performance
VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK
ELEMENTS
131
VPP FRAMEWORK
132
SYSTEMS THINKINGAPPROACH
Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Programs/Services
It is the System, the Whole, which allows for Mission Impact
An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System
Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Programs/Services
It is the System, the Whole, which allows for Mission Impact
An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System
133
YOURSWOTs
Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?
Weaknesses? Opportunities? External threats?
Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?
Weaknesses? Opportunities? External threats?
134
SWOTINTERACTIONS
Identify possible interactions between each SWOT which may be of positive or negative consequence
For example, the interaction of a Weakness & Threat may demonstrate a need for “damage control”
The interaction of a Strength & Opportunity may demonstrate a “leverage point”
Identify possible interactions between each SWOT which may be of positive or negative consequence
For example, the interaction of a Weakness & Threat may demonstrate a need for “damage control”
The interaction of a Strength & Opportunity may demonstrate a “leverage point”
135
STRATEGYDEVELOPMENT PROCESS
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals ✔ Discern SWOTs Create Strategy Narrative
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals ✔ Discern SWOTs Create Strategy Narrative
136
The Role of Strategy
The Role of Strategy
137
WHAT ISSTRATEGY?
Strategy is more than strategic planning
Strategy is not just a collection of goals and budget forecasts
Most organizations have plenty of plans, but very little strategy
Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end..
Strategy is more than strategic planning
Strategy is not just a collection of goals and budget forecasts
Most organizations have plenty of plans, but very little strategy
Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end..
138
WHAT ISSTRATEGY?
Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future.
Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future.
139
WHAT ISEFFECTIVE PERFORMANCE?
For Profits: $$$$$$$$$$
Non Profits: Mission Accomplishment
For Profits: $$$$$$$$$$
Non Profits: Mission Accomplishment
140
WHAT IS NONPROFIT STRATEGY?
Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future.
Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future.
141
NONPROFIT STRATEGY
The purpose of having a strategy is to guide the organization toward its desired future.
Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.
The purpose of having a strategy is to guide the organization toward its desired future.
Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.
142
NONPROFITSTRATEGY
The “cause & effect performance story” tells how you will get from “here to there” while . . .
. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.
The “cause & effect performance story” tells how you will get from “here to there” while . . .
. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.
143
PRODUCING HIGH PERFORMANCE
• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?
• The essential elements of organization performance:• Financing• Staffing• Programs/Services
• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?
• The essential elements of organization performance:• Financing• Staffing• Programs/Services
144
PERFORMANCE SYSTEM QUESTIONS
• What programs/services do we want to provide to make a mission impact?
• How will we staff the programs/services?
• How will we fund the operation?
• What programs/services do we want to provide to make a mission impact?
• How will we staff the programs/services?
• How will we fund the operation?
145
CYCLE OF SUSTAINABLE
PERFORMANCE• Positive reinforcing cycle
• Sustains all the parts
• Parts feed & sustain one another
• All parts are interdependent
• There is a cause & effect logic to how they interact
• Strategy is the “story” that guides this sustainable performance
• Positive reinforcing cycle
• Sustains all the parts
• Parts feed & sustain one another
• All parts are interdependent
• There is a cause & effect logic to how they interact
• Strategy is the “story” that guides this sustainable performance
146
WHAT IS YOUR STRATEGY?
Can you say what your strategy is?
Can you “name that tune?”
Can you say what your strategy is?
Can you “name that tune?”
147
WHAT IS YOUR STRATEGY “TUNE?”
A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.
Everyone in the organization should know the strategy as well as they can recognize a popular tune.
A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.
Everyone in the organization should know the strategy as well as they can recognize a popular tune.
148
STRATEGYNARRATIVE
A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.
Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.
As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.
A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.
Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.
As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.
149
STRATEGYNARRATIVE
“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”
- D. J. Collins & M. G. RutlandHarvard Business Review, 2008
“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”
- D. J. Collins & M. G. RutlandHarvard Business Review, 2008
150
How does an organization go about creating its Strategy & Strategy
Narrative?
How does an organization go about creating its Strategy & Strategy
Narrative?
151
STRATEGYDEVELOPMENT
Review each of your SWOTs and explain what its role will be in pursuing your vision & goals.
Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.
These build the “themes” of your Strategy Narrative
Review each of your SWOTs and explain what its role will be in pursuing your vision & goals.
Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.
These build the “themes” of your Strategy Narrative
152
EXAMINE EACHSWOT
What strategic action(s) should we take with respect to this SWOT?
A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.
Remember that you want to Leverage Strengths, Fortify Weaknesses, Seize Opportunities, Block Threats.
What strategic action(s) should we take with respect to this SWOT?
A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.
Remember that you want to Leverage Strengths, Fortify Weaknesses, Seize Opportunities, Block Threats.
153
STRATEGYDEVELOPMENT
Evaluate Weaknesses & Threats
Look for Leverage & Opportunity
Evaluate Weaknesses & Threats
Look for Leverage & Opportunity
154
EVALUATE WEAKNESSES AND THREATS
Look at interactions of Weaknesses and Threats for necessary “damage control”
Evaluate all Weaknesses and Threats Look at interactions of Weaknesses
and Threats with Strengths for possible solutions
Fortify Weaknesses as necessary and Block relevant Threats
Look at interactions of Weaknesses and Threats for necessary “damage control”
Evaluate all Weaknesses and Threats Look at interactions of Weaknesses
and Threats with Strengths for possible solutions
Fortify Weaknesses as necessary and Block relevant Threats
155
LOOK FOR LEVERAGE & OPPORTUNITY
Focus on the Strategic Stretch Goals What can you use from the current
reality and SWOTs to catapult forward?
Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas
Focus on the Strategic Stretch Goals What can you use from the current
reality and SWOTs to catapult forward?
Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas
156
STRATEGYNARRATIVE
A cause & effect performance story with a beginning, middle, and end
The General speaks:
A cause & effect performance story with a beginning, middle, and end
The General speaks:
“First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.”
“First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.”
157
STRATEGYNARRATIVE
Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward
Be sure to have strong levers Integrate and balance actions in
funding, staffing, programs/services
Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward
Be sure to have strong levers Integrate and balance actions in
funding, staffing, programs/services
158
STRATEGYEVALUATION
Assess Organization Stability & Derailers (W/T)
Are Strong Levers Engaged? Is there Sequencing of Cause & Effect? Are Interactions Balanced & Integrated
– especially among funding, staffing, programs/services?
Evaluate Assumptions
Assess Organization Stability & Derailers (W/T)
Are Strong Levers Engaged? Is there Sequencing of Cause & Effect? Are Interactions Balanced & Integrated
– especially among funding, staffing, programs/services?
Evaluate Assumptions
159
MERRILL COUNTYLITERACY COUNCIL
We will maintain a conservative, balanced budget and not increase expenses until surpluses are available. We will leverage our CEO’s talent, along with our program effectiveness, to recruit new board members who are well-connected within the county. We will secure agreements from them to be actively involved in fundraising and building community awareness of literacy issues.
We will maintain a conservative, balanced budget and not increase expenses until surpluses are available. We will leverage our CEO’s talent, along with our program effectiveness, to recruit new board members who are well-connected within the county. We will secure agreements from them to be actively involved in fundraising and building community awareness of literacy issues.
160
MERRILL COUNTYLITERACY COUNCIL
With initial increases in the annual fund, we will make improvements to staff compensation. As the annual fund continues to increase, we will retain a consultant to develop an integrated marketing and fundraising plan. The annual giving plan will be upgraded and fundraising training will be given to staff and board.
With initial increases in the annual fund, we will make improvements to staff compensation. As the annual fund continues to increase, we will retain a consultant to develop an integrated marketing and fundraising plan. The annual giving plan will be upgraded and fundraising training will be given to staff and board.
161
MERRILL COUNTYLITERACY COUNCIL
The marketing plan will raise awareness of literacy issues and help recruit more volunteers, as well as support fundraising initiatives. We will continue to expand the board with well-connected community members who are committed to giving and raising funds. We will seek significant United Way funding increases.
The marketing plan will raise awareness of literacy issues and help recruit more volunteers, as well as support fundraising initiatives. We will continue to expand the board with well-connected community members who are committed to giving and raising funds. We will seek significant United Way funding increases.
162
MERRILL COUNTYLITERACY COUNCIL
We will phase in these plans to balance increased costs with increased funding. As net revenues from fund-raising successes are available they will be divided among staff compensation increases, hiring new staff to manage increased numbers of volunteers, and building reserves. We will closely monitor program quality as we increase program offerings. More and more people in Merrill County will become literate.
We will phase in these plans to balance increased costs with increased funding. As net revenues from fund-raising successes are available they will be divided among staff compensation increases, hiring new staff to manage increased numbers of volunteers, and building reserves. We will closely monitor program quality as we increase program offerings. More and more people in Merrill County will become literate.
163
MERRILL COUNTYLITERACY COUNCIL
As we recruit new board members and annual fund donors, we will seek to identify potential major donors for an endowment campaign for $5 million, which will be launched in five years with a $500,000 lead gift. This will be a springboard to the future which will continue to increase the literacy rates in Merrill County.
As we recruit new board members and annual fund donors, we will seek to identify potential major donors for an endowment campaign for $5 million, which will be launched in five years with a $500,000 lead gift. This will be a springboard to the future which will continue to increase the literacy rates in Merrill County.
164
MERRILL COUNTYLITERACY COUNCIL
Getting into the Fundraising Business Strategy
Getting into the Fundraising Business Strategy
165
MERRILL COUNTYLITERACY COUNCIL
Key Assumptions Our CEO can recruit new board
members who are well connected within the county.
We can effectively learn how to raise money.
We can find a $500,000 lead donor.
Key Assumptions Our CEO can recruit new board
members who are well connected within the county.
We can effectively learn how to raise money.
We can find a $500,000 lead donor.
166
STRATEGYEVALUATION
Assess Organization Stability & Derailers (W/T)
Are Strong Levers Engaged? Is there Sequencing of Cause & Effect? Are Interactions Balanced & Integrated
– especially among funding, staffing, programs/services?
Evaluate Assumptions
Assess Organization Stability & Derailers (W/T)
Are Strong Levers Engaged? Is there Sequencing of Cause & Effect? Are Interactions Balanced & Integrated
– especially among funding, staffing, programs/services?
Evaluate Assumptions
167
YOUTH SERVICES ORGANIZATION
Use reserves to hire highly qualified and talented CEO to generate revenue for expansion of highly regarded program services. Maintain competitive salaries for top-notch program staff. Stabilize budget and repay reserves as revenues increase. Expand services further with additional revenue. Quality of services and staff remain high throughout expansion.
Use reserves to hire highly qualified and talented CEO to generate revenue for expansion of highly regarded program services. Maintain competitive salaries for top-notch program staff. Stabilize budget and repay reserves as revenues increase. Expand services further with additional revenue. Quality of services and staff remain high throughout expansion.
168
YOUTH SERVICES ORGANIZATION
Hire a “Hot Shot” StrategyHire a “Hot Shot” Strategy
169
EDUCATIONAL ASSOCIATION
Hire staff and mobilize volunteers to create endowment and significantly increase annual fund. Cut services and program staffing to balance budget. Increase fees for service and add services back as fees, annual fund dollars, and endowment investment income is available. Continue to increase level and quality of services as revenue is available—as well as upgrade staff quality.
Hire staff and mobilize volunteers to create endowment and significantly increase annual fund. Cut services and program staffing to balance budget. Increase fees for service and add services back as fees, annual fund dollars, and endowment investment income is available. Continue to increase level and quality of services as revenue is available—as well as upgrade staff quality.
170
EDUCATIONAL ASSOCIATION
Pruning & Hail Mary StrategyPruning & Hail Mary Strategy
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SOCIAL SERVICESAGENCY
Maintain staff level of good people who work here because they care for the mission—even though we can’t pay much. Provide as many services and programs as possible that make a difference, with funding from fees, United Way, and government subsidies. Maintain balanced budget. Limited staff will do the best they can with an overload of cases until things get better.
Maintain staff level of good people who work here because they care for the mission—even though we can’t pay much. Provide as many services and programs as possible that make a difference, with funding from fees, United Way, and government subsidies. Maintain balanced budget. Limited staff will do the best they can with an overload of cases until things get better.
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SOCIAL SERVICESAGENCY
HOPE & Hope is not a Strategy
HOPE & Hope is not a Strategy
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FOODBANK
Reorganize staff to allow CEO, who has extensive fundraising experience, to devote majority time to planning and running major fundraising campaign. Also add new Director of Development position. Recruit more influential Board members who will actively participate in campaign. Use reserves to run short term deficits if necessary to maintain quality operations until new funds are raised.
Reorganize staff to allow CEO, who has extensive fundraising experience, to devote majority time to planning and running major fundraising campaign. Also add new Director of Development position. Recruit more influential Board members who will actively participate in campaign. Use reserves to run short term deficits if necessary to maintain quality operations until new funds are raised.
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FOODBANK
Staff Realignment StrategyStaff Realignment Strategy
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HOUSING SERVICES ORGANIZATION
Replace retiring CEO with someone who has fundraising experience. As Board members retire, add new Board members with commitment to fundraising. Expand services as new funds are raised. Use status in community to initiate collaborative regional summit on affordable housing issues among key stakeholders as a call to action for all.
Replace retiring CEO with someone who has fundraising experience. As Board members retire, add new Board members with commitment to fundraising. Expand services as new funds are raised. Use status in community to initiate collaborative regional summit on affordable housing issues among key stakeholders as a call to action for all.
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HOUSING SERVICES ORGANIZATION
External Shift in Focus Strategy
External Shift in Focus Strategy
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CORE STRATEGYvs. STRATEGY REPORTS
The Breakthrough Strategy process produces the core elements of your strategy
The ways in which you communicate your strategy to different audiences will vary
Some audiences will need more specifics and/or background than others
The Breakthrough Strategy process produces the core elements of your strategy
The ways in which you communicate your strategy to different audiences will vary
Some audiences will need more specifics and/or background than others
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STRATEGYDEVELOPMENT PROCESS
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals ✔ Discern SWOTs ✔ Create Strategy Narrative
✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for
Creating Vision ✔ Adopt Aspirational Mindset for
Setting Strategic Stretch Goals ✔ Discern SWOTs ✔ Create Strategy Narrative
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STRATEGY IMPLEMENTATION
Creating the right strategy is exceptionally important before the implementation begins:
“The righter we do the wrong thing, the wronger we become.”
-Russell L. Ackoff
Creating the right strategy is exceptionally important before the implementation begins:
“The righter we do the wrong thing, the wronger we become.”
-Russell L. Ackoff
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STRATEGY IMPLEMENTATION
Align organization and culture to new strategy as per VPP Model
Annual Outcome-Based Stretch Goals are set that relate to the Five-Year Strategic Stretch Goals
Teams assigned to generate creative annual plans for each Stretch Goal
Budget designed to support plans, goals, strategy
Align organization and culture to new strategy as per VPP Model
Annual Outcome-Based Stretch Goals are set that relate to the Five-Year Strategic Stretch Goals
Teams assigned to generate creative annual plans for each Stretch Goal
Budget designed to support plans, goals, strategy
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VPP FRAMEWORK
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours.
#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours.
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”).
#2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”).
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund-raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under-emphasized – such as program innovation, leadership succession, strategic partnerships, and more.
#3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund-raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under-emphasized – such as program innovation, leadership succession, strategic partnerships, and more.
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance.
#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance.
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance.
#5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance.
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities.
#6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities.
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THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY
#7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.”
#7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.”
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“SO WHAT”MINUTE
What three things will you do during the next week to apply some of the ideas we have discussed today?
What three things will you do during the next week to apply some of the ideas we have discussed today?
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“SO WHAT”MINUTE
Create a Mission Metrics task force to identify impact measures
Design a new strategic planning process
Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”
Create a Mission Metrics task force to identify impact measures
Design a new strategic planning process
Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”
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“SO WHAT”MINUTE
Review all of your goals and make sure they are SMART.
Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.
Share your key learnings with others at your next staff or Board meeting
Review all of your goals and make sure they are SMART.
Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.
Share your key learnings with others at your next staff or Board meeting
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“SO WHAT”MINUTE
Tell everyone you know (Tweet, Facebook, Blog, Email) to read Mission Impact and use the ideas to create breakthroughs in the quality of life in our world.
Tell everyone you know (Tweet, Facebook, Blog, Email) to read Mission Impact and use the ideas to create breakthroughs in the quality of life in our world.
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THANK YOU VERY MUCH!!!
For your leadership! For your commitment!! For the difference you make!!!
For your leadership! For your commitment!! For the difference you make!!!
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Robert M. Sheehan, Jr., Ph.D.Principal
Sheehan Nonprofit Consulting
www.SheehanNonprofitConsulting.com
FOR MORE INFORMATION
FOR MORE INFORMATION
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