Understanding Nonprofit Strategic Planning

The Center for Nonprofit Resources is a Northwest Ohio local provider of resources dedicated to the area’s non-profit sector.  As part of their commitment to the area non-profit’s Continuous Improvement, they offer a variety of training sessions. This session is the first of the 2018 year and focuses on understanding Strategic Planning, its strategies, and expected outcomes. This session was held at the Toledo Lucas County Main Library on Tuesday, January 16 between 9:30am and 4:30pm. In attendance were approximately 25 people representing a wide spectrum of workers involved in Non-Profit work.

The following blog is my recollection of the presentation and materials used in the workshop. The following passages that have a (  JK  ) prefix contains my thoughts resulting from workshop topic discourse.

UNDERSTANDING NONPROFIT STRATEGIC PLANNING WORKSHOP – Facilitated by Al Onkka, Aurora Consulting. aonkka@auroraconsult.com 612.584.3953

It was identified that there was too little training available or accessed about the methods used in planning organizational strategies. Also identified was the need for such training in the development of leadership at all levels of organizational management. The efforts and continuous improvements of any organization depend on this planning area.  In the simplest understanding of the process of Strategic Planning, there are 4 distinct areas for consideration:

1. Where is the organization now?
2. Where does the organization wish to be?
3. What is holding the organization back from this future?
4. How can the organization move forward to that future?

These answers must come from the organization itself and arrived at by way of a consensus.  The Strategic Planning is primarily performed by organizational board members.  They would be the authority to communicate direction to the organizational director who then communicates these to their staff.

JK: The best non-profit organizational model involves a Director & Staff personnel separate from their board membership. If board members have a fiduciary responsibility to the organization, they must remain objective to the needs of the material supports of that organization and not to the director/staff.

Where is the organization now?

The facilitator used a rubber band to make a point of how organizational members affect each other. Stretching the rubber band produces tension; and that tension could spur creativity. In another sense, the tension could lead to conflict and challenge. Tension produces an environment to identify issues/challenges related to the organization.

JK: Another way to understand tension is that for every stretch of the rubber band in one direction, there is produced an equal and opposite force in the opposite direction. A point for consideration is that the progress of any organization is dependent on the quality of the weakest member.

What is holding back the organization?

These are the “barriers” to any advancement of the organization. The identification of the organizational barriers leads to discussion on what actions to take to surmount the barriers. Overcoming organization barriers require people of capacity to determine correct actions to take. In the private sector organizations, this stage of Strategic Planning is performed by experts in the areas of Analysis and Prediction. Non-Profit organizations usually do not have these resources available to them. Part of the idea of “Strategic Management” revolves around organizational survival and is a necessary tool-set.

How can the organization move forward to that future?

This is the implementation stage of the Strategic Planning process. In this step, Directions, Goals, Plans, and Sub-Plans are developed. This represents the outcome of the process.

As mentioned earlier, the Strategic Planning is performed by board members who have the interests of the organizational stakeholders. The stakeholders are those individuals and agencies that depend on the outcomes of the organization and not to the loyalty to directors/staff.  Ideally, the process should contain 4 areas execution: Design, Decide, Plan, Inform/Review, and Receiver/Promote.

JK: What is missing from this model is a feedback mechanism at each level for matters involving “continuous improvement”.

An environmental scan us usually performed to determine organizational capacities, challenges, and opportunities. These are done from both an internal and external perspective.

Once the environmental scan is accomplished ideas, challenges, and opportunities are considered in relation to the organization’s values and purpose.

Solutions, goals, and plans should align with the organization’s Values, Mission, and Vision Statements.

Non-Profit organization visions involve what focus that organization has on its stakeholders. Three organizational “visions” were presented; Community, Organizational, and Practical.

All organizational vision types will impact their stakeholders at some societal level. Strategic Planning then becomes the assessment, analysis, and the foundation for organizational actions.

Non-Profit Management Styles and Structures

Introduced were 3 styles of non-profit structure; all equally valid, having pro’s and con’s to their organization. There is no perfect style for any organization.

Science Management: Usually lead by experts in a defined field of study/application. Science is focused on assessment, analysis, and predictions. This model is restricted by the organization’s “lowest common denominator” but may excel with the accumulated and applied data.

Craft Management: Usually lead by practitioners or workers in a field of application. Craft is focused on processes and products resulting from planning. This model is restricted by the organization’s “lowest common denominator”.

Art Management: Usually lead by leaders (charismatic or otherwise) or other strong personalities. Art is focused on a vision and motivation for accomplishments. In this model, the transition of power is the greatest obstacle for organizational advancement.

JK: 1. Which style best represents our present organizational style? 2. Which style would be the best for our organization? 3. Which style would not be a good fit for our organization? WHY?

SWOT

SWOT is an acronym for a process of organizational assessment. Strengths, Weaknesses, Opportunities, and Threats.

Any good Strategic Plan must include a SWOT analysis to establish consensus. Once consensus is agreed upon, directions can be identified. Once understood, visions, actions and courses can be determined. Any course of action or vision of some future must be SMART in composition; Specific, Motivating, Ambitious, Reasonable, and Time-Bound.

Organizational Value

Organizations become valuable to stakeholders when needs are met.

Visions should be Specific and not slogans. Visions should describe some future condition and be motivational at the same time. People tend to fund according to their emotions. People spend money on what they love. Visions should stretch the organization toward something that does not exist. They should be reasonable and be able to be accomplished within a reasonable amount of time. If the vision takes a long time to accomplish, then motivational energy will be depleted.

What holds back organizations

When considering what holds organizations back from advancement, keep in mind the Root Cause of the barrier. Root causes builds consensus for actions. There are 4 values every organization should have/possess;

1. Everyone in related to the organization has wisdom. All viewpoints and perspectives should be valued…whatever they are.
2. Everyone has the right to be heard and to hear.
3. Organizational strength comes from connections and networks. This goes along with the concept of Synergy – the whole is greater than the sum of its parts.
4. There is power when synergy happens

Barriers come in different forms. Barriers are real:

• Barriers have a presence of or a lack of something needed. 
• Barriers can be a participatory nature- By what we do or not do, do we cause something? Barriers could also be existing for a reason; it may exist because it had been enabled. 
• Could barriers be overcome by a different vision?

Strategy involves how to overcome barriers. Barriers could lead to a vision…and a vision to a direction.

Direction > Strategy > Action > Components of Action.

Strategies focus on barriers…it sets directions…it involves creativity…and these are all shared with the organization.

When considering organizational challenges, opportunities, and threats, the worst thing organizations can do is to do nothing. Understanding the nature of barriers can, and in most cases, lead to empowerment.  No Strategic Plan Method is better than others…but any plan is better than no plan.

John Krochmalny