Strategic planning is essential for Not-for-Profits, enabling them to refine their mission, establish long-term strategic priorities, and chart the course to achieve those goals. With more than twenty strategic plans under my belt over the past decades, I’ve witnessed firsthand how the “art” of strategic planning continues to evolve. Given the significant changes since the pandemic, I believe it’s an ideal moment to delve into best practices that align with the latest trends in organizational development and strategic planning. Here’s a summary of the steps which I have found and used to create successful and enduring strategic plans.
- Mission and Vision Review
- Mission: Revisit the organization’s mission statement to ensure it still reflects the core purpose and values of the organization.
- Vision: Reaffirm or update the vision statement to articulate the long-term impact the organization aims to achieve.
- Environmental Scan (SWOT Analysis)
- Internal Analysis: Assess the organization’s strengths and weaknesses, including resources, capabilities, and internal processes.
- External Analysis: Examine opportunities and threats in the external environment which may result from changing economic conditions, political climate, social trends, and technological advancements.
- Stakeholder Analysis: Engage with key stakeholders (e.g., donors, beneficiaries, staff, volunteers) to gather insights and ensure their needs and perspectives are considered.
- Data-Driven Decision Making
- Data Collection: Use quantitative and qualitative data to inform strategic decisions. This can include financial information, program outcomes, and feedback.
- Benchmarking: Where feasible, compare your organization’s performance against similar not-for-profits to identify
- Setting SMART Strategic Goals and Objectives
- SMART Goals: Establish specific, measurable, achievable, relevant, and time-bound goals that align with the mission and vision.
- Impact Measurement: Define how success will be measured, focusing on outcomes and impact rather than just outputs.
- Strategic Prioritization
- Critical Path Identification: Determine which goals and objectives are most critical to achieving the mission.
- Resource Allocation: Prioritize initiatives based on their potential impact and the resources available.
- Action Planning
- Tactical Plans: Break down strategic goals into specific actions, projects, or initiatives with assigned responsibilities, timelines, and resources.
- Cross-Functional Coordination: Ensure collaboration across departments and teams to avoid silos and enhance efficiency.
- Financial Planning
- Budget Alignment: Align the strategic plan with the budget, ensuring that financial resources are allocated to support key priorities.
- Fundraising Strategy: Develop a fundraising plan that aligns with the strategic goals, including diversifying funding sources and engaging donors effectively.
- Risk Management
- Risk Assessment: Identify potential risks to the strategic plan, such as financial instability, changes in policy, or operational challenges.
- Mitigation Strategies: Develop strategies to mitigate identified risks, ensuring the organization remains resilient and adaptable.
- Monitoring, Evaluation, and Learning (MEL)
- Performance Indicators: Establish key performance indicators (KPIs) to track progress toward strategic goals.
- Regular Reviews: Conduct periodic reviews of the strategic plan to assess progress, adjust strategies, and respond to changing conditions.
- Continuous Improvement: Foster a culture of learning where feedback and evaluation results are used to refine strategies and improve performance.
- Dashboard Monitoring: Develop a strategic dashboard using a data visualization analytics tool, that shows achievement of strategic goals on a high-level scale.
- Stakeholder Communication and Engagement
- Transparency: Communicate the strategic plan to all stakeholders, including staff, board members, donors, and clients
- Engagement: Involve stakeholders in the implementation process, ensuring they are committed to the organization’s strategic direction.
- Governance and Leadership Alignment
- Board Involvement: Ensure that the board of directors is actively involved in the strategic planning process, providing oversight and guidance.
- Leadership Development: Invest in leadership development to ensure that the organization’s leaders have the skills and capabilities to drive the strategic plan forward.
Best Practices:
- Inclusivity: Engage diverse voices in the strategic planning process, including those of staff and clients and community members, to ensure the plan is comprehensive and equitable.
- Scenario Planning: Consider multiple future scenarios and develop contingency plans to prepare for uncertainties.
- Technology Integration: Leverage technology for data analysis, communication, and project management to enhance the efficiency and effectiveness of the strategic plan.
Summary
This state-of-the-art process ensures that Not-for-Profit organizations are strategic, resilient, and focused on achieving their mission with measurable impact.
The Osborne Group
Ellis Katsof is a principal with The Osborne Group. The Osborne Group has a number of principals who have extensive experience providing strategic planning and interim leadership expertise to Not-for-Profits. Click here for additional information.
