A Primer on Different Approaches to Strategic Planning

1. A Primer on Different Approaches to Strategic Planning Presented by: Frank Martinelli The Center for Public Skills Training

3. Leadership’s Role in . . . • Assuring long term financial sustainability • Alliances, partnerships and strategic restructuring • Measuring mission impact • Board and staff leadership succession planning • Nonprofit advocacy and public policy work createthefuture.com

4. Governance As Leadership A Framework for Strategic and Generative Thinking

5. 3 Modes of Governance • Fiduciary Mode – Key Questions • "How are we doing to date?" • “Are we in compliance?” • The board as “watchdog” - Anything wrong? • Strategic Mode – Key Questions • "What should we be doing?” • "Where are we going?“ • The board as “strategist” - What’s the plan? • Generative Mode – Key Questions • “What are the new possibilities?” • “What’s the new question?” • The board as “sense-maker” - What’s coming next?” createthefuture.com

6. Three Modes of Governance

7. The Premise . . . No perfect one-size-fits-all strategic planning model for every organization at all times.

8. It Depends . . . • What is the purpose or hoped for outcomes to be achieved by strategic planning? • Is a comprehensive planning process that includes work on mission and vision or is the organization only looking to update an existing plan at the level of strategy or action objectives? • How rapidly is the external environment changing and what level of threat to the organization do these changes pose?

9. It Depends . . . • Have past planning efforts been successful or not and what is the level of support for strategic planning this time around? • Based on organizational culture and style, is there a preference for one strategic planning approach over another?

10. Strategic Planning: A Range of Options More Focused Process More Comprehensive Process

11. Focused . . . . . Comprehensive • Mission/Vision Status • Issue(s) Selection/Identification • Information/Data Needs • Number of Planning Participants • Available Time See page 2

12. Strategic Planning Approaches • Basic, comprehensive model • More narrowly focused issue-based approach • Strategic program planning • Scenario planning • Collaborative strategic planning

13. A Comprehensive Model

14. Strategic Planning Defined Strategic Planning is the process by which the guiding members of an organization envision its future and develop the necessary plans, procedures and operations to achieve that future.

15. Make Decisions About . . . • The mission, vision and goals your organization will pursue • Whom you will serve • Your organization's role in the community • The kinds of programming, services or products you will offer • The resources needed to succeed • How to best combine these resources, programming and relationships for mission impact

16. Distinguishing Features • Attention to external environment, markets and stakeholders • Focus on developing shared vision • It’s strategic! • Addressing critical emerging issues versus putting out brush fires • Innovation versus business as usual

17. Planning as a Journey Vision ofIntended Impact Today’s Reality createthefuture.com

18. Steps of the Planning Process • Step 1- Information Gathering and Analysis • Step 2 - Identification of Critical Issues Facing the Organization • Step 3 - Development of Mission Statement • Step 4 - Development of a Strategic Vision Statement that Sets Future Direction

19. Steps of the Planning Process • Step 5 - Development of Strategic Goals • Step 6 - Formulation of Strategies for Each Goal • Step 7 - Preparation for Implementation Planning Based on the Strategic Plan (Annual Objectives)

20. Levels of the Planning Process Mission Vision Goals Strategies Objectives “Forever” 5-10 years out 3-5 years 1-3 years 1 year createthefuture.com

21. Strategic Planning Benefits • Clear direction and focus • Increased program impact • Improved service delivery • Enhanced marketing and fundraising • Board effectiveness • Foundation for other types of planning • Engage others leading to deeper commitments • Be prepared for change

22. Elements of Effective Planning • Shared understanding of strategic planning • Real commitment to the process • Agreed upon outcomes for process • Leadership of the board • Involvement of key stakeholders • Structured to encourage boldness, risk-taking and creativity

23. Who Should be Involved? • Organizational leadership • Executive director and board president • Other board and staff leadership • Strategic planning committee • Broad based constituent input • Internal stakeholders--all board and staff members, consumers/clients volunteers representing • External stakeholders--donors and prospective public and private funders, partners, among others

24. Step 1: Information Gathering and Analysis • External Assessment • Internal Assessment • Market Assessment

25. Types of Data • Changes and trends that impact the organization and the people we serve • Market information about needs, perceptions and services expectations • Internal assessment data that indicates capacity to deliver the mission

26. Sources of Data • Existing statistics, studies, etc. • Secondary market research • Surveys • Focus groups • Key informant/expert Interviews • Community forums • Internal reviews, assessments and evaluations

27. An Information Gathering Plan • Board and staff survey • Key informant survey • Focus groups (Ex. for a school: parents, students, alumni, educators, community partners, donors, volunteers) • Financial trends data • Data from regional and national networks • Organizational assessments • Accreditation reports

28. Step 2: Critical Strategic Issues • Fundamental policy or program concerns which define major choices an organization faces now and in the future • Long-standing problems anticipated to have a significant impact on the organization and/or community served • Major shifts in thinking that challenge business as usual • Tension Points

29. Step 3: Mission Timeframe — “Forever” Broad description of what we do, with/for whom we do it, our distinctive competence, and WHY we do it (our ultimate end) Mission communicates “purpose”

30. Step 4: Strategic Vision Timeframe — 5-10 years Out Describes the results/ impact we will have achieved and what the organization will need to look/act like in order to achieve those results Vision communicates “direction”

31. Planning as a Journey Vision ofIntended Impact Today’s Reality createthefuture.com

32. Strategic Vision • 2005: The Milwaukee Public Library is Everyperson's gateway to an expanding world of information. 2014: MPL is an anchor institution that helps build healthy families and vibrant neighborhoods – the foundation of a strong Milwaukee.

33. Strategic Vision Example We transform lives by creating a vibrant and diverse environment in which more women become independent, visible in leadership, and able to reach their full potential. Our mission and work are embraced by a community that has become intolerant of violence and oppression. (YWCA Sauk Valley)

34. Strategic Vision Example More people, bowling more often, having more fun. (Bowling Inc.)

35. Strategic Vision Example Every Nativity Jesuit Middle School student graduates from high school as a caring, compassionate and conscientious man poised for a life of Christian leadership and service.

36. Step 5: Goals Timeframe — 3 years out Broad statements of what the organization hopes to achieve in the next 3 years. Goals focus on outcomes or results and are qualitative in nature. Example Attract, develop and retain a versatile high performing workforce.

37. Step 6: Strategies Timeframe — 1-3 years Statements of major approach or method for attaining goals and resolving critical issues.Example Offer a wide range of professional development opportunities for all employees.

38. Step 7: Objectives Timeframe — 1 year out Specific, concrete, measurable statements of what will be done to achieve a goal generally within a one year time-frame. Example Launch a web-based professional training and development portal for employees by December 2014.

39. Goal/Strategy/Objective Progression createthefuture.com

40. createthefuture.com

41. Accelerated Strategic Planning • Responding to new opportunities faster • New models • Not a substitute for mission and vision work • “Faster is slower” • Collaborative strategic planning • Create opportunities for continuous strategic thinking

42. Focused Issue-based Approach

43. Focused Issue Approach • Highly focused effort: issue(s) clearly identified at the outset • Assessment of information/data needs • Development of strategies and action objectives to address selected issue(s)

44. Strategic Program Planning

45. Tools Sampler • MacMillan Matrix • Matrix Map • Theory of Change

46. MacMillan Matrix Worksheet

47. 1. Fit -- Degree to which a program "belongs" or fits within an organization(Good or Poor) • Congruence with mission/purpose and vision? • Organization has existing skills and competencies? • Able to share resources and coordinate activities with other programs?

48. 2. Economic Attractiveness(High or Low) • Current stable funding? • High appeal to funders, supporters? • High market demand? • Measurable, reportable outcomes/results?

49. 3. Alternate Coverage -- competition(High or Low) • Are similar services provided? • Do customers have many other choices? • Competitors now and future?

50. 4. Competitive Position-- Stronger capability and potential to deliver the service than current or emerging competitors (Strong or Weak) Good location, logistical delivery system? Will customers remain? Grow? Is quality superior? Record of securing grants, funding? Stable staffing? Ability to maintain and continually increase competency? Cost effective? Strong connections with consumers and stakeholders?