Strategic Planning for Nonprofit Organizations

A Practical Guide for Dynamic Times

Michael Allison, Jude Kaye

• Publisher: Wiley
• Year: 2015
• Print ISBN: 9781118768143
• eBook ISBN: 9781118768150
• Edition: 3
• Topic: Business
• Subtopic: Nonprofit Organizations & Charities
• Index: Business

The bestselling guide to nonprofit planning, with proven, practical advice

Strategic Planning for Nonprofit Organizations describes a proven method for creating an effective, organized, actionable strategy, tailored to the unique needs of the nonprofit organization. Now in its third edition, this bestselling manual contains new information about the value of plans, specific guidance toward business planning, and additional information about the strategic plan document itself. Real-world case studies illustrate different planning and implementation scenarios and techniques, and the companion website offers templates, tools, and worksheets that streamline the process. The book provides expert insight, describing common misperceptions and pitfalls to avoid, helping readers craft a strategic plan that adheres to the core values of the organization.

A well-honed strategic plan helps nonprofit managers set priorities, and acquire and allocate the resources necessary to achieve their goals. It also provides a framework for handling challenges, and keeps the focus on the organization's priorities. Strategic Planning for Nonprofit Organizations is an excellent source of guidance for managers at nonprofits of every size and budget, helping readers to:

• Identify the reasons for planning, and gather information from internal and external stakeholders
• Assess the current situation accurately, and agree on priorities, mission, values, and vision
• Prioritize goals and objectives for the plan, and develop a detailed implementation strategy
• Evaluate and monitor a changing environment, updating roles, goals, and parameters as needed

Different organizations have different needs, processes, resources, and priorities. The one thing they have in common is the need for a no-nonsense approach to planning with practical guidance and a customizable framework. Strategic Planning for Nonprofit Organizations takes the fear out of planning, with expert guidance on the nonprofit's most vital management activity.

Section Two
Strategic Analysis

In Steps 4–8, we look individually at the five core content dimensions of strategic planning: environmental scan, theory of change and program portfolio, business model, organization capacity, and leadership. In addition to conducting the analysis in each of these dimensions, one of the central roles of the strategic planning committee is to connect the dots among these different dimensions as the work unfolds.

The strategic planning committee as a group is responsible for getting these five steps completed. In practice, a significant amount of work is required outside of the regular strategic planning committee meetings. Another option that works well is to assign each of the five dimensions to one or two members of the strategic planning committee. The point person or people for each dimension are encouraged to enlist the support of staff and/or board members who are not on the committee. For instance, you might tap the chief financial officer or the board treasurer for the money discussion, if one or the other is not on the strategic planning committee. This adds capacity for the task and helps involve other key leaders.

Step 5: Theory of Change and Program Portfolio theory of change and program portfolio requires the greatest amount of work followed by Step 6: Business Model. The level of work required is typically much less for each of the other three dimensions, although how much less will depend on individual circumstances. The planning workplan needs to allow sufficient time for this work to be completed.

One tension in this section is that although all five dimensions are interconnected; it is often more efficient to begin the work of all steps at the same time. If the strategic planning committee is willing to take a little more time, it is certainly possible to take each step in order.

When subcommittees or teams are tasked with looking into one area, by bringing findings and recommendations back to discussions of the strategic planning committee, the dots can be connected, and each member of the committee has an opportunity to engage with each of the dimensions of the plan. The work of the strategic planning committee through these steps is iterative, with many back-and-forth discussions. The committee will then be ready to share draft findings and recommendations with a wider audience of board and staff members.

WARNING: People often feel confused at this point. This uneasiness is actually a good sign! Exploring new possibilities brings with it lots of uncertainty and questions that are difficult to answer. Feeling confused or uncertain at some point is a sign that you are going outside of what you already know. This growth is required for your work to be creative and to stretch your vision for the organization. Embrace the uncertainty and you will achieve important new insights that allow your organization to devote itself to your mission even more fully with greater focus.

Chapter 4
Step 4: Environmental Scan

The first thing to keep in mind when considering the external environment is that although you want to be expansive in considering possible trends and issues, you ultimately want to focus on just a few critical issues. The challenge is to discern the few issues that are or may become significant—those to which your organization must respond or be prepared to respond—whether these are helpful or are obstacles to be overcome.

Second, the purpose of scanning the environment is to ground your strategic plan in the realities of the world around you. The environment is relevant to each of the other four dimensions of your strategic analysis. For instance, these realities clearly affect your strategy and business model. Likewise, in terms of organizational capacity, the prevailing wages in your market affect how competitive your compensation is, and new hardware and software technologies change options about how to upgrade. Current events and trends in your field will also affect both the requirements of leadership and the individuals who are available to serve your organization.

You may appoint an environment subcommittee, or one or two people to take responsibility for the summarizing the big picture and for supporting the work of colleagues who are working on other dimensions, by getting input on specific questions they need to investigate. However, it will make more sense fo...

Table of contents

• Cover
• Praise for Strategic Planning for Nonprofit Organizations, Third Edition
• Title Page
• Copyright
• Dedication
• About the Third Edition
• Preface
• Acknowledgments
• Introduction
• Section One: First Steps
• Section Two: Strategic Analysis
• Section Three: Set Your Course
• Conclusion: A Word to Leaders
• Appendix A: Sample Workplans for Abbreviated, Moderate, and Extensive Planning Processes
• Appendix B: Tips on Using Task Forces
• Appendix C: External Stakeholders
• Appendix D: How to Use the Matrix Map
• Appendix E: Leadership Assessment Survey
• Appendix F: Selected References
• About the Companion Website
• About the Authors
• Index
• End User License Agreement