A Primer on Different Approaches to

Strategic Planning

Presented by:Frank MartinelliThe Center for Public Skills Training

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

Governance As Leadership

A Framework for Strategic and Generative Thinking

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?”

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Three Modes of GovernanceType I

FiduciaryType II

StrategicType III

Generative

Board’s role

Steward/ Watchdog

Strategist Sense Maker

Key question

What’s wrong?

What’s the plan?

What’s the key question?

Problems are to be

Spotted Solved Framed

Way of deciding

Reach resolution

Reach consensus

Reach understanding

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

The Premise . . .

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?

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?

It Depends . . .

Strategic Planning: A Range of Options

More Focused Process

More Comprehensive Process

Mission/Vision Status Issue(s) Selection/Identification Information/Data Needs Number of Planning Participants Available Time

See page 2

Focused . . . . . Comprehensive

1. Basic, comprehensive model2. More narrowly focused issue-

based approach3. Strategic program planning4. Scenario planning5. Collaborative strategic

planning

Strategic Planning Approaches

A Comprehensive Model

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.

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

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

Planning as a Journey

Today’s Reality

Vision ofIntended Impact

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Steps of the Planning ProcessStep 1- Information Gathering and AnalysisStep 2 - Identification of Critical Issues Facing the OrganizationStep 3 - Development of Mission StatementStep 4 - Development of a Strategic Vision Statement that Sets Future Direction

Steps of the Planning ProcessStep 5 - Development of Strategic GoalsStep 6 - Formulation of Strategies for Each GoalStep 7 - Preparation for Implementation Planning Based on the Strategic Plan (Annual Objectives)

Levels of the Planning Process

Mission

Vision

Goals

Strategies

Objectives

“Forever”

5-10 years out

3-5 years

1-3 years

1 yearcreatethefuture.com

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

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

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

Step 1: Information Gathering and Analysis

External Assessment

Internal Assessment

Market Assessment

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

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

evaluations

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

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

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”

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”

Planning as a Journey

Today’s Reality

Vision ofIntended Impact

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Strategic Vision2005: 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.

Strategic VisionExample

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)

Strategic Vision

Example

More people, bowling more often, having more fun. (Bowling Inc.)

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.

Step 5: Goals Timeframe — 3 years outBroad 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.

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.

Step 7: Objectives Timeframe — 1 year outSpecific, 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.

Goal/Strategy/Objective Progression

Goal Strategy Objective

Attract, develop and

retain a versatile high

performing workforce

Offer a wide range of

professional development

opportunities for all employees

Launch a web-based professional training and

development portal by December

2014

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ObjectivesWhat will be

accomplished

Responsible Party Position or group with primary responsibility

for the objective

Time FrameIdentify

completion date

MeasureHow achievement of objective will

be measured

Launch a web-based professional training and

development portal by December

2014

HR Director Dec. 31, 2014 • # of portal visits;• # of tools downloaded;• # of times accessed web based resources are incorporated into professional development plans• Etc.

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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

Focused Issue-based 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)

Focused Issue Approach

Strategic Program Planning

MacMillan Matrix Matrix Map Theory of Change

Tools Sampler

MacMillan Matrix WorksheetProgram Fit Economic

AttractivenessAlternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Program 1

X X X X

Program 2

X X X X

Program 3

X X X X

Program 4

X X X X

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?

2. Economic Attractiveness(High or Low) Current stable funding? High appeal to funders,

supporters? High market demand? Measurable, reportable

outcomes/results?

3. Alternate Coverage -- competition (High or Low)

Are similar services provided?

Do customers have many other choices?

Competitors now and future?

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?

MacMillan Matrix WorksheetProgram Fit Economic

AttractivenessAlternate Coverage

Competitive Position

Good Poor High Low High Low Strong Weak

Program 1

X X X X

Program 2

X X X X

Program 3

X X X X

Program 4

X X X X

MacMillan MatrixHigh Economic Attractiveness

(Easy to attract resources for support)

Low Econonic Attractiveness

(Difficult to attract resources for support)

Alternate Coverage

HIGH

Alternate Coverage

LOW

Alternate Coverage

HIGH

Alternate Coverage

LOW

Strong Competitive Position

1. Aggressive Competition

2. Aggressive Growth

5. Reinforce Best Competitor or Find Partner

6. “Soul of the Agency”

GOOD FIT

Weak Competitive Position

3. Aggressive Divestment

4. Invest, Find Partner or Divest

7. Consider Partner or Divest

8. Find Partner or Divest

9. Aggressive Divestment 10. Orderly Divestment POOR FIT

The Matrix MapBell, Masaoka and Zimmerman

What are your true costs?

Specific Costs

Shared Costs

Admin Costs

Direct Costs / Program Costs

Portion of rent, liability insurance, technology, etc.

Portion of administrative costs.

Understand Your Finances

Assessing Mission Impact

Criteria to Consider

Alignment with core mission

Excellence in execution Scale or volume Depth Filling an important gap Community building Leverage

Understand How Your Activities Inter-relate

Strategic Imperatives

Strategic Imperatives

Instead of:Taking it for granted . . . Not involving the board . . . Turning your attention to “problem areas”

Strategic Imperatives

Instead of:Closing it because its not breaking even . . . Making it the sacred cow that can’t be criticized . . .

Strategic Imperatives

Instead of:Giving it second class status . . . Keeping it separate from programs . . .

Strategic Imperatives

Instead of:Trying once again to improve it . . . Not thinking about it . . .

Theory of ChangeA Theory of Change defines

all the building blocks required to bring about a

long-term goal.

FEF THEORY OF CHANGE

The Foundry Educational Foundation strengthens the metal casting industry by supporting unique partnerships among students, educators and industry, helping today's students become tomorrow's leaders.

Priority HR needs of the industry are met

High talent students with

leadership potential choose metal casting careers

Industry will hire the

students “produced” by FEF

Students have the skills

required by Industry (talent pool is created)

Collaborative efforts add

measureable value Highly engaged

professors and facilities that attract students to the industry

Defined mix of FEF

schools aligned with industry needs (research schools, etc.)

Current Mission Intended Impact

Create opportunities for students with interest in metal casting and related fields to learn about employment/ leadership opportunities in the industry, develop relationships with industry leaders, and secure employment

FEF interacts with industry, schools and key professors to foster development of programs that produce the students with needed skills

Educate foundries on where and how student hires can be used/add value

FEF collaborates with other societies to advance the industry

Increase fund development efforts to support FEF efforts

Engage new schools (broaden base)

Provide support and recognition on behalf of high performing professors

Strategies for Impact Activities/ Programs/ Initiatives

CIC

Scholarships

Internships

FEF college/university certification & accreditation program

Metal casting advisory committees

Board contact to each school

Funding support to improve infrastructure

Research grants

Targeted endowments

Managed funds for AFS and others

Supplier support to FEF schools

Scenario Planning

Step 1. State the focal issue or purpose. Step 2.  List the key factors that influence

the future in which our YWCA will operate. Step 3.  List the driving forces among these

key factors. Forces that are highly predictable or

predetermined (i.e. demographics) Forces that are uncertain (i.e. public opinion). 

Step 4.  Rank the key factors and driving forces by importance and by uncertainty.  

Step 5.  Develop alternate futures.

Scenario Planning Steps

1. Develop an initial description of this scenario -- how you might expect this scenario to play out for the YWCA – what would be happening in such a future?

2. What is the impact of this future scenario on the YWCA and/or community served?

3. What are the implications for the YWCA? - What actions would we take to advance our mission if we knew this were the future?

4.  Write a short story or narrative that describes your assigned scenario.

Scenario Development

Collaborative Strategic Planning

Collaborative Strategic Planning Increasingly common – and important!

Focus on a shared customer base or constituency rather than developing a plan for one organization

Convener: Mental Health America - Wisconsin

Collaboration Partners: Nonprofit organizations and public agencies working in mental health

Planning Focus: Develop strategies to incorporate prevention and early intervention initiatives into the state public mental health system

Case Example

Open space Future search conference

Whole systems Appreciative inquiry Real time strategic change

Other Approaches and Tools

Fostering Innovation, Boldness, And Risk Taking

Include “outsiders” Use analogies from

other fields Involve people at

the edges Meet in unfamiliar

settings Let yourselves go

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Preparing to Plan What do you expect to accomplish? How much commitment is there to the

process? Is there organizational readiness for

strategic planning? How will the board and key staff be oriented

to the process?

Preparing to Plan How long will it take? Who else should be involved? How? How will we encourage boldness, risk-taking

and creativity on the part of planning participants?

Should a consultant be used for all or part of the process?

Back-home Planning: Initial thinking about the planning approach that will meet your YWCAs

needs at this time

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