strategic planning - habitat for humanity · organizational development consultant ... certainly be...

Strategic Planning

(Why Bother?)

Phillip BridgewaterOrganizational Development Consultant

Merger SMEUS Office

• Word Association

• A Modern Day Parable

• What a Strategic Plan is NOT

• What a Strategic Plan IS

• Why Strategic Plans Fail

• Aligning with HFH Global Strategic Plan

• Resources

• Q&A

Workshop Overview

What do you think of, what do you feel,

when you hear the phrase “strategic

plan”?

Word Association

24 “Everyone then who hears these words of mine and acts

on them will be like a wise man who built his house on

rock. 25 The rain fell, the floods came, and the winds blew

and beat on that house, but it did not fall, because it had

been founded on rock. 26 And everyone who hears these

words of mine and does not act on them will be like a

foolish man who built his house on sand. 27 The rain fell,

and the floods came, and the winds blew and beat against

that house, and it fell—and great was its fall!”

Matthew 7:24-27 (NRSV)

1235 Overlook Court

Mission, Vision or Values

These are all components of a strategic plan and an

organization’s culture, but taken alone they do not

represent strategy.

What Strategic Planning is NOT

Goals, Targets, or Mileposts

Setting Goals, Targets, or Mileposts is better than

nothing, but unsupported with actions plans and

budgets, they can’t be mistaken for strategy either.


Review with Projections

A historical review of the company’s performance could

certainly be a component part of a strategic plan, and

post-mortem reviews of past operating periods can be

useful, but they hardly constitute a sound, well thought

out strategy


Budget or Cash Flow Projections

Budgets and cash flow projections are wonderful, but

they lack the passion, the differentiation, the action

plans, etc. to support the numbers in the budget.


A Narrative without Budgets and Cash

Flow Projections

Mirror opposite of budgets and cash flow projections.

Wonderfully crafted verbiage could certainly be

inspiring, but in the absence of hard numbers narratives

just don’t get it done.


SWOT Analysis

SWOT analysis can be very valuable, and it can certainly

be part of a well thought out strategic plan, but again, it

should not stand on its own.


Lists - especially long lists - of

mileposts or objectives

Long lists are simply unworkable, unmanageable, don’t

provide for accountability, aren’t supported by the

numbers, and have many other failures. Lists are lists,

not strategies.

What Is a Strategic Plan and Why Do You Need One? By Wayne Rivers


• Mission, Vision or Values

• Goals, Targets, or Mileposts

• Review w/ Projections

• Budget or Cash Flow Projections

• A Narrative w/o Budgets and Cash Flow Projections

• SWOT Analysis

• Lists - especially long lists - of mileposts or objectives

….then what is it?

So, if Strategic Planning is NOT…

So, What is Strategic Planning?

Strategic planning: In partnership with staff, boards

draw on an understanding of organizational strengths

and weaknesses, industry trends, and peer bench-

marking to articulate priorities and monitor progress

against financial and program goals. After translating

strategic priorities into action plans, they use these plans

to assess the chief executive, drive meeting agendas, and

shape board recruitment.

Strategic Planning: Understanding the Process, BoardSource 2011

The ultimate goal for a strategic plan is to enable

your team to focus on a small set of desirable,

clearly articulated outcomes in order to produce

desired results.

“What Is a Strategic Plan and Why Do You Need One?”

By Wayne Rivers


A strategic plan is a tool that provides guidance in

fulfilling a mission with maximum efficiency and

impact. If it is to be effective and useful, it should

articulate specific goals and describe the action steps

and resources needed to accomplish them. As a rule,

most strategic plans should be reviewed and revamped

every three to five years.

Ten Keys to Successful Strategic Planning for Nonprofit

and Foundation Leaders by Richard A. Mittenthal


A successful plan is, by definition, a usable plan–one

that informs the organization’s activities as well as its

long-range view, and one that yields meaningful

improvements in effectiveness, capacity and relevance.

Ten Keys to Successful Strategic Planning for Nonprofit

and Foundation Leaders by Richard A. Mittenthal

What is Strategic Planning

• Clarify the mission to all stakeholders

• New insights from other peoples’ perspectives

• Identification of challenges and barriers

• Assess, reassess and adjust programs

• Reaffirm that an organization is headed where it wants to go

or should be going

• Focus thinking outside the box - new ways of thinking about

old problems

• Develop a framework within which to make difficult program

decisions

• Address external uncertainties and change

• Garner financial support (donors who may require a strat. plan)

Why is Strategic Planning Important

• Build teamwork, communication and expertise among the

board and staff

• Buy-in/ownership from others on the team

• Measure organizational effectiveness by incorporating

evaluation into the process

• Forced choices - the strategic planning process requires the

team to narrow down a huge menu of potential choices to a

manageable few thereby increasing the focus of everyone on

the team

• The PROCESS ITSELF! The process drives everything else;

even the final planning document itself is less important than

the “all for one, one for all” process of thinking through the

strategies.

Why is Strategic Planning Important

10 Reasons Why Strategic Plans Fail

http://www.forbes.com/sites/aileron/2011/11/30/10-reasons-why-strategic-plans-fail/

Why Strategic Plans Fail

http://www.forbes.com/sites/aileron/2011/11/30/10-reasons-why-strategic-plans-fail/

1. Having a plan simply for plans sake

Some organizations go through the motions of

developing a plan simply because common sense says

every good organization must have a plan. You get out of

a plan what you put in. If you’re going to take the time

to do it, do it right.


2. Not understanding the environment or

focusing on results

Planning teams must pay attention to changes in the

business environment, set meaningful priorities, and

understand the need to pursue results.


3. Partial Commitment (buy-in)

Boards of Directors & CEOs must be fully committed

and fully understand how a strategic plan can improve

their enterprise. Without this knowledge, it’s tough to

stay committed to the process.


4. Not having the right people involved.

Those charged with executing the plan should be

involved from the onset. Those involved in creating the

plan will be committed to seeing it through execution.


5. Writing the Plan and Putting it on the

shelf.

This is as bad as not writing a plan at all. If a plan is to

be an effective management tool, it must be used and

reviewed continually. Unlike Twinkies or a fine vino,

strategic plans don’t have a good shelf life.


7. Having the wrong people in leadership

positions

The Board of Directors & Management must be willing

to make the tough decisions to ensure that the right

individuals are in the right leadership positions. The

“right” individuals include those who will advocate for

and champion the strategic plan and keep the

company/organization on track.


6. Unwillingness or Inability to Change

Your company/organization and your strategic plan must be

nimble and able to adapt as market conditions change. Evaluate &

Reevaluate.


8. Ignoring marketplace reality, facts, and

assumptions

Don’t bury your head in the sand when it comes to

marketplace realities, and don’t discount potential

problems because they have not had an immediate

impact on your business/organization yet. Plan in

advance and you’ll be ready when the tide comes in.


9. No Accountability or Follow Through

Be tough once the plan is developed and resources are

committed and ensure there are consequences for not

delivering on the strategy.


10. Unrealistic Goals or Lack of Focus and

Resources

Strategic plans must be focused and include a

manageable number of goals, objectives, and programs.

Fewer and focused is better than numerous and

nebulous. Be prepared to assign adequate resources to

accomplish the goals and objectives outlined in the plan.


And because ours “go up to eleven…”

An homage to the 1984 Mockumentary “This Is Spinal Tap”

“The Funniest Rock Movie Ever Made.”


11. Critical Contingency Plans are Never

Developed

“What can go wrong, will go wrong”. Proactively develop

a contingency plan for alternative approaches to achieving

goals if realities change & the developed actions are no

longer feasible. Remember: Review & Reassess; Evaluate

& Reevaluate.


And now a brief period of questions

and/or comments as we make a less-than

graceful segue.

Why does HFHI Have a Strategic Plan?

• Does 1.6 billion mean anything?

The number of people in the world who lack decent, affordable shelter

• Our Vision: A world where everyone has a decent place to live.

Massive need forces us to reach higher and stretch further.

Jonathan Reckford, regarding the 2014-2018 Strategic Plan

• HFH met and exceeded the target of 100,000 families served by 25% to serve a total of 124,964 families (614,856

individuals) in FY13

Trend: Families Served by Product (FY13)

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

120,000

FY2003 FY2004 FY2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY2013

New Rehabs Repairs & Incrementals

Represents Strategic Plan

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Cross-Cutting Initiatives

Strategic Plan

Realization Growth Strategy Measuring Impact

37

FY14 HFHI Strategic Initiatives

Putting it all Together

Four Goals—10 Objectives

Global Metrics

How to Localize HFHI’s Global Plan

Why Align?

So we can be a unified global family with local relevance

The 2014-2018 Strategic Plan serves as a common framework to guide our Habitat

family worldwide

Diversify our product profile

Outputs, OutcomesSocietal

Impact

Sector Impact

Community Development

Advocacy

Neighborhood Partnerships

Localizing the Plan

“It’s getting very hard to talk in simple terms about

what Habitat for Humanity does.”

-- HFHI Senior Leader

43

Start with aligning with all three objectives related to the goal: Build a Sustainable Organization.

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Implement at least one global objective from each Impact goal, and more, as appropriate, to your capacity and the needs of the communities you serve.

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Build a Sustainable OrganizationHabitat for Humanity BLOCK BUILDER

Goal: Build a Sustainable OrganizationBetween 2014 – 2018, Block Builder Habitat for Humanity will improve our capacity to mobilize financial and human resources and steward them faithfully.

Strategic Objective BBHFH Approach Metrics and Targets

Fund the Mission Expand relationships with government entities Create planned giving program Develop major donor cultivation strategies

Increase in local government funding Planned giving part of resource

development Major donor program started

Grow Skills and Leadership Capabilities

Establish board development committee Advance staff and volunteer skill levels Analyze staffing requirements

Committee presents each board meeting

Training as line item in budget Adequate staff is in place

Operate with Excellence Investigate benefits packages for staff Board institutes strategic planning Software upgraded for improved reporting Gift Acceptance policy developed Define separate roles for FS and F SUP Delinquency policy

Report to board on findings Strategic plan in place Data drives decision making Adherence to gift policy and report to

board Separate F/s & F/Sup committees with

job descriptions Policy informs monitoring to initiate

action

Sample

Local Headline

Local approach for the Strategic

Objective Local metrics & targets

Local Organization

Build A Sustainable OrganizationHabitat for Humanity of Anywhere, Inc.

Goal: Build A Sustainable OrganizationImprove capacity to mobilize financial and human resources and steward them faithfully and effectively

Strategic Objective HFH Anywhere Approach Metrics and Targets

Fund the mission Develop/implement major donor program

Create House Sponsorship program Develop consistent annual fundraisers Continue ReStore growth “Community of Cooperation Builds” to

finance and provide volunteers for projects

Two $5k+ gifts from unique donors by end FY14, five by end FY15

20% increase in individual giving by end of FY15 Hold 2nd Annual House Raising Hoe Down Increase ReStore net income by 10% per year 10 churches actively engaged in financial and/or

volunteer efforts annually by end of FY15

Build organizational capacity

Diversify & nurture Board of Directors Solidify Board committees and

develop/expand operating committees Build capacity and performance of staff

All Board and operating committees populated/functioning by end FY14

At least 50% of Board attend at least one State, Regional, or National Conference annually by end FY15

Volunteer Manager hired by end FY14; attends NALO

Operate with excellence

Board continues Annual Strategic Planning

Develop affiliate safety and risk mitigation plan

Review/Update Plan at each annual meeting beginning FY14

Comprehensive plan approved by board by end of FY15

Building IMPACT in the US

Build Community ImpactHabitat for Humanity of Anywhere, Inc.

Goal: Build Community ImpactImprove local housing and neighborhood conditions and serve families in our service area.


Serve families through sustainable construction and housing support services

Build with sustainably, efficiency and excellence

Incorporate construction planning technology into all construction activities

Expand housing services/products to other cities in service area

Complete 1-2 new homes and 3-4 A Brush with Kindness projects in NRI target area by end of CY14, 2-3 new homes and 5-10 ABWK in CY15, and 3 new homes, 5-10 ABWK, and Weatherization planned in CY16, begin implementing Weatherization in CY17.

Implement local training program for Key Construction Volunteers utilizing local construction professionals by end of FY15

Meet with County and City representatives at least annually; target build in Myhometown NLT FY 16

Leverage shelter as a catalyst for community transformation

Empower residents of focus community

Advocate for systems to deal with Blighted/Abandoned properties in our target areas

Pre-build Neighborhood Outreach in place for CY14 Offer ABWK program to qualifying families in target

neighborhoods by CY14, Weatherization by CY17 Offer to pour sidewalks for neighbors on both sides of new

builds at cost, no-interest loan if in 30-50% of median income by CY15

10% annual reduction in blighted properties


Build Sector ImpactHabitat for Humanity of Anywhere, Inc.

Goal: Build Sector ImpactCollaborate and advocate to increase access to housing solutions


Support market approachesthat increase products, services and financing for affordable housing

Explore mortgage leveraging strategy to expand build capacity

Work with City and County in securing land banks for future builds

Explore Zero-Equivalent Mortgage Program

Explore USDA Rural Development 502 Direct Loan Program

Leverage 30% of active mortgages with HFHI’s Flex Cap program by end of FY15; additional 30% by end of FY16

10 churches actively engaged in financial and/or volunteer efforts annually by end of FY15

Study and recommendation to board by end FY14

Study and recommendation to board by end FY15

Promote policies and systems that advance access to adequate,affordable housing

Continue partnerships with local government

Support HFHI’s Advocacy Strategic Initiative

Support HFHI’s World Habitat Day

ED and Board continue to cultivate relationships and meet with local government officials regularly in FY14

Attend HFH on the Hill in FY16 Develop local WHD event for FY15 and each year

thereafter


Build Societal ImpactHabitat for Humanity of Anywhere, Inc.

Goal: Build Societal ImpactExpand awareness of housing as a critical foundation for breaking the cycle of poverty.


Mobilize volunteers as hearts, hands and voices for the cause of adequate, affordable housing

Utilize Collegiate Challenge teams Implement Women Build Engage community about volunteer

construction opportunities Affiliate sponsored Global Village trip

Host first team in FY15 Participate in National Women Build Day in FY15 Volunteer Manager to reach out to business, civic,

and church groups on volunteer opportunities by end of CY15

Develop a “Mission Center” in the ReStore by end of FY15

Complete first GV trip in FY16

Serve as a leading voice in growing awareness of housing as a critical foundation for breaking the cycle of poverty

Continue to develop and maintain relationships with Local, State, and National government leaders

Increase awareness of Habitat events and the Habitat opportunities

Train Partner Families to make community presentations

At least one public official at each home dedication and/or fundraising event

Participate in statewide advocacy day and World Habitat Day events

Partner Families trained by end FY15; Visits begin FY16


Localizing the Plan

Developing S.M.A.R.T.E.R. Objectives

• Specific

• Measurable

• Attainable

• Relevant

• Time-Bound

• Evaluate

• Reevaluate

Available Resources

Strategic Plan Website on My.Habitat• http://my.habitat.org/content/strategic_planning

Strategic Plan Toolkit• http://my.habitat.org/kc/collection-detail/3e140/Strategic-Plan-Toolkit-~-

La-caja-de-herramientas-del-Plan-Estrat%C3%A9gico

http://my.habitat.org/content/strategic_planning

http://my.habitat.org/kc/collection-detail/3e140/Strategic-Plan-Toolkit-~-La-caja-de-herramientas-del-Plan-Estrat%C3%A9gico

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Strategic plan

US Affiliate info

Summary

• FY14-18 Global Plan - Framework

• Localizing plan is important to our

global success

• Resources available in the Strategic Plan

Toolkit• http://my.habitat.org/kc/collection-

detail/3e140/Strategic-Plan-Toolkit

http://my.habitat.org/kc/collection-detail/3e140/Strategic-Plan-Toolkit

Questions??

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