Strategic planning serves as an indispensable framework for nonprofit organizations, acting as a roadmap that guides decision-making regarding programming, funding, and staffing. Throughout this discourse, we elucidate the multifaceted nature of strategic planning, addressing common misconceptions and the reasons why such processes often elicit disinterest or overwhelm among stakeholders. We present a comprehensive overview of five distinct models of strategic planning, each tailored to various organizational contexts and challenges. Furthermore, we delve into the critical factors that must be considered when embarking on a new strategic plan, including the importance of stakeholder engagement and the necessity for board commitment. Ultimately, we underscore the value of hiring a consultant to facilitate this intricate process, ensuring the organization not only formulates a plan but also effectively implements it in alignment with its mission and objectives. Diana Marquis imparts invaluable insights into the realm of strategic planning for nonprofit organizations, elucidating its paramount importance as a guiding framework for achieving organizational objectives. The conversation reveals the common pitfalls that organizations encounter when embarking on the strategic planning journey, particularly the pervasive skepticism that surrounds the efficacy of such plans. Marquis articulates that this skepticism often stems from a lack of familiarity with the process and the disheartening experiences of stakeholders who have previously witnessed strategic initiatives falter without yielding tangible benefits. The host delineates the strategic planning process as a collaborative endeavor that necessitates the active participation of board members, staff, and other stakeholders. By emphasizing the collective nature of this undertaking, Marquis highlights the need for organizations to foster a culture of engagement and accountability, ensuring that all voices are heard and considered in the planning stages. The discussion further explores various models of strategic planning, each suited to different organizational contexts, and encourages leaders to adopt the model that best aligns with their current circumstances and future aspirations. Marquis also underscores the critical role of preparation in strategic planning, advocating for thorough assessments of past planning efforts and a clear understanding of the organization’s readiness to undertake new initiatives. She posits that the development of a robust strategic plan requires dedication, time, and a realistic approach to goal setting. By instilling a sense of purpose and direction, effective strategic planning can catalyze organizational growth and empower nonprofits to navigate the complexities of their environments with confidence and clarity.
Takeaways:
- The strategic plan serves as a roadmap that guides an organization toward its future objectives.
- Stakeholder involvement in the strategic planning process is crucial for successful organizational outcomes.
- Consultants can facilitate strategic planning, allowing leaders to concentrate on the overarching strategy.
- A well-executed strategic plan requires commitment and thorough preparation from both board and staff.
- The strategic planning process typically unfolds over six months and involves multiple distinct phases.
- A strategic plan must be realistic and inspirational, focusing on growth and resource allocation.
Links referenced in this episode:
- dmgroupconsulting.com
- councilofnonprofits.org
- Email: Diana@dmgroupconsulting.com
Transcript
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Speaker A:I'm Diana Marquis, host of About Fundraising, the podcast and founder and chief strategist for DM Group Consulting, a boutique consultancy that works with nonprofit organizations on their board education, training, fundraising, planning and coaching for executive directors and development directors.
Speaker A:You can find me on LinkedIn and my website, dmgroupconsulting.com.
Speaker A:What is strategic about a strategic plan?
Speaker A:And who cares?
Speaker A:What is it about the phrase strategic planning that makes eyes glaze over?
Speaker A:Maybe people don't really know what is involved and they feel overwhelmed.
Speaker A:Maybe they've participated in the process before and nothing changed.
Speaker A:Or maybe this is just one more thing to do when they already have too many responsibilities to sort this out.
Speaker A:Let's start with the definition.
Speaker A:A strategic plan is a roadmap to the future.
Speaker A:When deciding on programming or funding or staffing, the strategic plan should be your guiding light.
Speaker A:Strategic planning is an active process where stakeholders decide how to advance the mission of the organization to best serve their community.
Speaker A:It's about making hard choices about where to focus limited time, money and human resources.
Speaker A:The planning process includes board members as well as staff and other stakeholders.
Speaker A:There are five different models of strategic planning for nonprofit organizations.
Speaker A:The standard strategic planning model is best used when conditions are stable and the organization is well established.
Speaker A:The issues based model is used when external conditions are turbulent and the organization faces major issues.
Speaker A:The organic model is useful when uncertain external factors create actionable short term goals.
Speaker A:The real time model is helpful when an organization is facing a crisis like an economic recession.
Speaker A:It is focused on very short term goals.
Speaker A:And lastly, the alignment model is used when an organization has has great departments but trouble with internal communications.
Speaker A:Most often my clients use the standard model because they are well established in their community and conditions are stable.
Speaker A:Before I work with a client on a new strategic plan, I ask these questions.
Speaker A:When was the last plan done?
Speaker A:Were the goals achieved?
Speaker A:What happened that you did not plan for?
Speaker A:Are the board and staff ready to commit to doing the work to create a new plan?
Speaker A:What is your budget to support this work?
Speaker A:What is your time frame to complete the strategic plan?
Speaker A:It's important to know when the last strategic plan was done.
Speaker A:Was it three years ago?
Speaker A:More than five years?
Speaker A:Are we building on what was done before or starting new?
Speaker A:Who's still on the board or on staff that was involved in the last one?
Speaker A:Institutional memory is very helpful.
Speaker A:Were the goals achieved?
Speaker A:Was the plan a success or not?
Speaker A:And why?
Speaker A:If a goal or set of goals was not achieved, what impact did it have on the organization?
Speaker A:So often a strategic plan is put on a shelf and forgotten or ignored and nothing changes for the better.
Speaker A:There are professional futurists whose predictions are accurate about half the time.
Speaker A:But most of us can't see the future.
Speaker A:There will always be something happen unexpectedly.
Speaker A:Establishing a contingency fund as part of a strategic plan is one way to prepare.
Speaker A:The board of directors must be 100% committed to doing the work on behalf of the nonprofit organization.
Speaker A:It is not the sole responsibility of the executive director to create the plan.
Speaker A:Staff must also share in the responsibility Planning Ahead to work on a strategic plan gives leadership time to budget all resources, including financial resources and staff time.
Speaker A:An average strategic plan takes about six months to complete and there are four broad the kickoff and discovery, engagement and visioning, drafting and prioritization and review and finalization.
Speaker A:The first few weeks of the strategic plan process, the kickoff and discovery phase, include forming a planning committee, assessing internal readiness, and gathering data through stakeholder surveys.
Speaker A:The next month or two is the engagement and visioning phase, where board and staff workshops are held, community or donor focus groups meet, and core strategies are defined.
Speaker A:Midway through the process, the first draft is written.
Speaker A:Leadership reviews it and gives feedback.
Speaker A:Goals are refined.
Speaker A:The strategic planning process wraps up with the final goals in place, approval by the board of directors and a communication plan ready to implement.
Speaker A:Creating a well thought out strategic plan takes time and dedication to the process.
Speaker A:It must be inspirational and grounded in reality with a focus on organizational growth, internal capacity, financial health, and specific program priorities.
Speaker A:It's finite.
Speaker A:It's for a specific length of time, usually three years, and it moves the agency forward by answering the following what are the specific tasks we need to accomplish to achieve our goals?
Speaker A:How much staff and money do we need over the next few years to fulfill our mission?
Speaker A:The final product is a detailed document with clearly defined roles and responsibilities, metrics and milestones.
Speaker A:To get back to the beginning to plan means to decide to do something in the future.
Speaker A:This includes intention, having a clear goal or purpose in mind, and preparation to work out the steps needed to reach the goal.
Speaker A:Strategic means looking forward toward a long term plan or design to achieve a major goal or set of goals.
Speaker A:If it is time for your organization to create a strategic plan, remember the questions I would ask.
Speaker A:When was the last time your organization created a strategic plan?
Speaker A:Were your goals achieved?
Speaker A:Did anything happen that you were unprepared for?
Speaker A:Are your board and staff on the same page ready to do the work?
Speaker A:What is your budget to support this work?
Speaker A:And lastly, what is your time frame to complete the strategic plan?
Speaker A:When you and your stakeholders are ready to take on this work, consider hiring a consultant According to Funding for Good There are five reasons to hire a consultant for strategic planning.
Speaker A:Number one, it saves money.
Speaker A:Strategic planning takes time from staff and board leadership.
Speaker A:In contrast, a strategic planning consultant facilitates the process itself, leaving leaders to focus on strategy.
Speaker A:Number two, hiring a consultant saves money.
Speaker A:The hours or even days an executive director spends on planning logistics means time not spent on fundraising and other duties.
Speaker A:Number three, consultants build authentic consensus.
Speaker A:They help create space to grapple with challenges, explore opportunities, and co create a path forward.
Speaker A:Number four, your consultant will help strengthen stakeholder relationships by guiding you through how different stakeholder groups should be involved in the planning process and and setting clear expectations with each group.
Speaker A:And number five, a good strategic planning consultant has years of experience facilitating organizational planning processes.
Speaker A:Your organization will benefit from the expertise your consultant has gathered over their career.
Speaker A:A strategic planning consultant is not hired to write the plan or deliver a product.
Speaker A:Their work is to facilitate the process, manage stakeholder participations, and ensure successful execution.
Speaker A:The National Council of Nonprofits has a brief article on strategic plans and links to Several resources@councilofnonprofits.org DM Group Consulting is now accepting new clients.
Speaker A:You can reach me at dianadmgroupconsulting.com Sam.
