Table of Contents
Title Page
Copyright Page
The AFP Fund Development Series
THE ASSOCIATION OF FUNDRAISING PROFESSIONALS
2008-2009 AFP PUBLISHING ADVISORY COMMITTEE
Dedication
Introduction
LAYOUT OF THE BOOK
FOR MORE INFORMATION
Acknowledgements
About the Author
Chapter 1: What Is Nonprofit Strategy?
WHAT IS STRATEGY?
STRATEGY GUIDES PERFORMANCE
NONPROFIT STRATEGY
HYPOTHETICAL EXAMPLE ORGANIZATIONS
Chapter 2: Designing the Strategy Development Process
ARE YOU READY?
STAKEHOLDER IDENTIFICATION AND INVOLVEMENT
LENGTH AND SCOPE
THE STRATEGY DEVELOPMENT GROUP
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 3: Your Mission Impact
THE MISSION ACCOMPLISHMENT APPROACH
THE MISSION STATEMENT
MISSION ACCOMPLISHMENT MEASURES
YOUR MISSION GAP
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 4: Vision for Your Organization
WHAT IS VISION?
ASPIRATIONAL VISIONS
ROLE OF ASPIRATIONAL VISIONS
REAL-WORLD APPLICATIONS OF ASPIRATIONAL VISIONS
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 5: Strategic Stretch Goals
WHAT WE KNOW ABOUT GOALS
OUTCOME-BASED SMART GOALS - Outcomes versus Activities
SMART Goals
ALMOST IMPOSSIBLE
REAL-WORLD APPLICATIONS OF STRETCH GOALS
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 6: Organization Assessment
PLANNING YOUR ASSESSMENT
EXTERNAL ASSESSMENTS
INTERNAL ASSESSMENTS
THE VENTURE PHILANTHROPY PARTNERS CAPACITY FRAMEWORK
THE SDG SWOT ANALYSIS
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 7: Strategy Development
NONPROFIT STRATEGY REVISITED
CREATING YOUR ORGANIZATION’S STRATEGY
THE STRATEGY NARRATIVE
APPLICATION TO HYPOTHETICAL ORGANIZATIONS
Chapter 8: Strategy Implementation and Management
STRATEGY FIRST
ALIGNING THE ORGANIZATION
ANNUAL OPERATING PLANS
ADDITIONAL MANAGEMENT CONCEPTS AND TOOLS
LEVERAGING YOUR COMMITMENT AND HARD WORK
EPILOGUE
APPENDIX A - Venture Philanthropy Partners Capacity Assessment Grid
APPENDIX B - Summary of Hypothetical Organization Strategy Development Outcomes
References
AFP Code of Ethics for Professional Philanthropic Fundraisers
Donor Bill of Rights
Index
Copyright © 2010 by Robert M. Sheehan, Jr. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
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Library of Congress Cataloging-in-Publication Data:
Sheehan, Robert M.
Mission impact: breakthrough strategies for nonprofits/Robert M. Sheehan, Jr.
p. cm.
Includes bibliographical references and index.
eISBN : 978-0-470-59329-5
1. Nonprofit organizations-Management. 2. Strategic planning. I. Title.
HD62.6.S497 2010
658.4’012-dc22
2009037491
The AFP Fund Development Series
The AFP Fund Development Series is intended to provide fund development professionals and volunteers, including board members (and others interested in the nonprofit sector), with top-quality publications that help advance philanthropy as voluntary action for the public good. Our goal is to provide practical, timely guidance and information on fundraising, charitable giving, and related subjects. The Association of Fundraising Professionals (AFP) and Wiley each bring to this innovative collaboration unique and important resources that result in a whole greater than the sum of its parts. For information on other books in the series, please visit:
THE ASSOCIATION OF FUNDRAISING PROFESSIONALS
The Association of Fundraising Professionals (AFP) represents over 30,000 members in more than 197 chapters throughout the United States, Canada, Mexico, and China, working to advance philanthropy through advocacy, research, education, and certification programs.
The association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession. For more information or to join the world’s largest association of fundraising professionals, visit www.afpnet.org.
2008-2009 AFP PUBLISHING ADVISORY COMMITTEE
Chair: Nina P. Berkheiser, CFRE
Principal Consultant, Your Nonprofit Advisor
Linda L. Chew, CFRE
Development Consultant
D. C. Dreger, ACFRE
Senior Campaign Director, Custom Development Solutions, Inc. (CDS)
Patricia L. Eldred, CFRE
Director of Development, Independent Living Inc.
Samuel N. Gough, CFRE
Principal, The AFRAM Group
Audrey P. Kintzi, ACFRE
Director of Development, Courage Center
Steven Miller, CFRE
Director of Individual Giving, American Kidney Fund
Robert J. Mueller, CFRE
Vice President, Hospice Foundation of Louisville
Maria Elena Noriega
Director, Noriega Malo & Associates
Michele Pearce
Director of Development, Consumer Credit Counseling Service of Greater Atlanta
Leslie E. Weir, MA, ACFRE
Director of Family Philanthropy, The Winnipeg Foundation
Sharon R. Will, CFRE
Director of Development, South Wind Hospice
John Wiley & Sons, Inc.:
Susan McDermott
Senior Editor (Professional/Trade Division)
AFP Staff:
Jan Alfieri
Manager, New Product Development
Rhonda Starr
Vice President, Education and Training
To my Dad, the dreamer, and my Mom, the pragmatist. Together you’ve encouraged me to bring dreams into reality.
With Love,
Rob
Introduction
We need a breakthrough in the quality of life for millions of people on our planet. A few examples:
Hunger
• An estimated 12.4 million children in the United States live in food-insecure households and are at risk of experiencing hunger on a daily basis.1
• Nearly 3 million seniors in the United States access food pantries annually to meet their emergency food needs.2
Housing
• More than 700,000 people in the United States are homeless.3
• More than 30 million U.S. households either pay excessively for housing, live in overcrowded conditions, or have physically inadequate housing—such as no hot water or no electricity.45
Education
• Up to one-third of school children in the United States begin kindergarten not fully prepared for a successful learning experience.6
• Only about half (53 percent) of high school students in the largest U.S. cities graduate on time.7
Health
• Cancer, heart disease, mental health, and other health issues continue to plague legions of Americans.
• HIV/AIDS continues to be a major problem in the United States; every 9 1/2 minutes someone in the United States is infected with HIV and for African-Americans and other blacks, HIV/AIDS is a leading cause of death.8
And these are just examples from the United States. The challenges for our fellow citizens across the globe are multiplied many times over by comparison.
While nonprofit organizations cannot and should not solve all of these problems, we do play a significant role in making a difference in the quality of life for millions of people. Children, families, and adults are living in conditions that are unacceptable, and we need to make more of an impact. And we need to do better than incrementally more. We need to somehow create breakthrough improvements in these intolerable conditions.
Staff and volunteers in the nonprofit sector already work very hard. The questions this book considers are: How can we work together even more creatively and strategically? How can we invent breakthrough improvements for those we serve through our missions? The intention of this book is to provide a process that nonprofit organizations can use to create breakthrough strategies that will make very significant improvements in our collective mission impact to improve the quality of life for others.
While we do work very hard, I believe that we in the nonprofit sector still have tapped only a tiny portion of our collective creativity and that great ideas are out there—waiting to be invented—that can help us make even more of a difference than we are currently.
And, of course, the preceding examples just begin to touch the myriad of other causes and issues that nonprofit organizations serve to make a difference for others, including those serving the environment, disaster relief, cultural interests, public interest groups, religious commitments, member associations, and more.
The strategy development process that is explained in this book is based on my more than 30 years of experience in the nonprofit world as a practitioner, academic, volunteer, and consultant. My unique blend of experiences gives me a practical perspective on strategy while also applying cutting-edge concepts—such as strategic intent and systems thinking—that are used primarily in the corporate world.
Much has been written about strategic planning for nonprofits. My approach is much different, and it is unique for three key reasons:
1. It shows nonprofits how to measure their mission impact and focuses the creation of strategy around increasing that impact to fulfill unmet needs, which is the organization’s mission gap.
2. It uses an aspirational mind-set to set vision and strategic stretch goals, which lead to the development of a breakthrough strategy—a strategy to close the mission gap as effectively as possible. Most strategy processes result in plans for incremental improvements.
3. It provides a clear defini...