Strategic Planning and Budgeting

Shelly Trent, SPHR; SHRM Field Services Director and Kellie Conn, SPHR; Director-Elect for TN SHRM

©SHRM 2008

Myths About Planning

• Most people plan • Planning takes too long• Planning is not an investment • Planning is complex• Planning should be concrete and

unchangeable

©SHRM 2008

Why Change? Why Have a Plan?

• Decreased Membership

• Unhappy Members

• Competitive Threats

• Financial Instability

• WHAT ELSE?

©SHRM 2008

Pressures Against Planning for Change

• Comfort/Arrogance

• Fear of Failure (or Success)

• Lack of Skills

• Too Much Work

• WHAT ELSE?

©SHRM 2008

What Is Planning?

• The process by which we can become what we want to become through setting a strategy.

• The identification of opportunities and the allocation of resources to exploit those opportunities.

• The rational determination of where you are, where you want to go, and how and when you are going to get there (GAP).

• It is setting the direction for the organization’s future (1 year, 3-5 years, and up).

©SHRM 2008

Components of Strategic Planning

• Planning Base— Where are we now? Where have we been?

• Results Required—Where do we want to be?

• How—Specifically define how to get there.

• Implementation—Identify a plan to execute. Who does what by when?

• Review—How are we doing? Monitor the results.

6

Planning should be done by the board as a full group.

Specific aspects can be handled by subgroups.

©SHRM 2008

Before You Plan…

• Mission Statement (what we do; purpose of organization)

• Vision Statement (how we want it to be; future state of organization)

• Values (shared beliefs of the org; culture framework)

• Primary Objectives (how to get there; goals)> Do you have these in place?> If not, form a subcommittee to develop them and

have the full group provide input

©SHRM 2008

Mission Statements: Short and Sweet

Usually mission statements are short and easy to remember.

Objectives and value statements are the “steps” to reach the mission and “how.”

You might remember SHRM’s abbreviated mission statement: Serve the Professional; Advance the Profession

It might help to set your mission statement using SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound).

“A mission statement provides a path to realize the vision in line with its values.” (Wikipedia.org)

SHRM offers a sample mission statement resource under the “Templates and Tools” section of the website

©SHRM 2008

Determining Primary Objectives

• Determine which items are . . .• Most important to success (top 3-5)• Able to be accomplished/impacted• Should be / can be accomplished within 1 year• Should be / can be accomplished within 3-5

years• Are there other issues to address for a 5-year

plan? What are they?• What are the budget implications, including

whether you can fund project?• Are there any barriers to keep you from

accomplishing item? What?

©SHRM 2008

Strategic Planning Considerations

It is important to consider SHRM’s vision, mission, and priorities when your chapter or council conducts planning, so that you can focus on similar goals and objectives.

There is a strategic planning toolkit online in the Volunteer Leaders’ Resource Center (www.shrm.org/vlrc).

Your Field Services Director can assist you with your strategic planning efforts.

10

©SHRM 2008

SHRM’s Vision

• Based on a Strategic Business Review completed during 2009, SHRM has developed a five-year plan, along with a new vision, mission, and strategy.

SHRM’s Vision:• “To be a globally recognized authority whose

voice is heard on the most pressing people management issues of the day - now and in the future”

11

©SHRM 2008

SHRM’s Mission

SHRM’s Mission: Build partnerships Provide a global community to share expertise

and create innovative solutions Provide thought leadership, education,

and research Be an advocate on the most critical issues

facing workplaces and the human resource profession

12

©SHRM 2008

SHRM’s Strategic Priorities

1.Provide high-value resources to existing core membership2.Be a global organization3.Operate as a financially sustainable organization4.Evolve positioning to become more of an advisor and advocate

13

©SHRM 2008

SHAPE as a Planning Tool

• SHRM Affiliate Program for Excellence (SHAPE) planning and reporting tool

• 2010 Chapter Planning Workbook and the archived volunteer leader webinar are available in the VLRC at www.shrm.org/vlrc

• Covers calendar year• Use this guide to help you plan your

objectives.

14

©SHRM 2008

Items for Consideration as You Plan

• Historical “highs” and “lows” of the chapter/council

• Positives and Negatives for:• Membership and Member Services• Socio-demographics• Competition• Technology• Economic Factors• Government/Regulations• Culture• Structure• Daily Practices• Cost Efficiency• Innovation and New Products/Services• Financial Stability and Assets

©SHRM 2008

Strategic Planning – SWOT

• A SWOT analysis is also a usual part of planning:> Strengths: What do we have that our

competition does not, and they can’t easily get?

> Weaknesses: What does our competition have that we do not, and we can’t easily get?

> Opportunities: What are the big-picture issues that we should be concentrating on?

> Threats: What can get in the way of our success?

16

©SHRM 2008

Strategic Planning – SWOT

• Another way of looking at a SWOT-type exercise is to conduct an environmental scan/historical analysis for the past several years.

• Consider the following: business trends in the local market, your competitors, current technology, the economy, supply/demand factors, your market segment, your unique selling/value proposition, perceptions of your organization vs. other similar ones, income/expenses, etc. WHERE ARE YOU NOW?

• Then, consider the same issues with this question in mind: WHERE SHOULD WE BE? -- or -- WHERE DO WE WANT TO BE?

17

©SHRM 2008

Strategic Budgeting

• Also consider strategic budgeting! > What are your current and future sources of income?> Have a budget for 3-5 years out, and not budget only from

year-to-year. > Budget should NOT be just a “checkbook” statement

showing income and expenses.> Have a future plan of possible income and expenses.> Committee should be appointed to develop future budgets

based on plan and monitor for changes. Committee can determine cost of projects and plan to meet future expenses.

18

©SHRM 2008

Guide to Financial Management

• Provides essential financial information• Includes info on taxes, incorporation, and record keeping• Easy to understand• Excellent resource for all volunteers• Located in the VLRC under the “Finance” section• If you have questions beyond those addressed in this guide,

contact a local CPA; SHRM does not provide financial advice, and cannot assist you in contacting the IRS

• Be sure you are using your own chapter’s or council’s EIN / tax ID number, not SHRM’s (these numbers cannot be shared)

19

©SHRM 2008

Sources of Income

• What are your sources of income for this year and next year?

• What might sources of income be three to five years from now?

©SHRM 2008

Current and Future Budget Items

• What are your current budget items?

• What items will you add to your budget next year? Three to five years from now?

• If you could do anything you wanted, how much would it cost? It’s okay to have “blue sky” ideas, but be sure they are attainable.

©SHRM 2008

HOW? Strategies

• Strategies to implement plan• Performance measures -- how did

we do?• A common mistake in many plans is

that no one takes time to delineate the action steps and assign tasks.

• Creating a plan won’t make it happen.

©SHRM 2008

Implementation

• Action Plans / Implementation Elements / Execution Strategy• What will be done?• Who will be responsible?• When will it get done?• What will the outcomes look like? • Who, What, When, Where, How,

Why?

©SHRM 2008

Implementation

• Your volunteers need a road map so they clearly understand how to implement the plan and meet the goals.

Reward your volunteers for following the plan and meeting set goals.

©SHRM 2008

Review

• Monitoring• Continual review of progress and gaps• Establishes basis for alternative plans • Watch for changes in membership,

finances, local competition, and other items from your original SWOT or environmental scan.

©SHRM 2008

Review

• Controls• Beforehand—What can we do to make

things go right?• During—Is what we want to happen,

happening?• Afterward—Did what we want to happen,

happen? • Make changes as you go along. Strategic

plans should be ever-changing, living documents, and flexible.

©SHRM 2008

Post-Work for Strategic Planning Committee

• Using the final plan, create strategies and an implementation map

• Ensure that plan goals are able to be met (no “impossible dreams”)

• Create an Action Plan Worksheet (what gets done and who does it by when)

• Produce an Action Plan Implementation Schedule

• Estimate and establish the timeline• Monitor the implementation

©SHRM 2008

Outcomes of Strategic Planning

• Clear picture of how trends impact the present and future

• Agreed-upon direction/strategy• Clearly defined mission, vision, values• Specific plans to improve performance• Development of team behaviors through

volunteers

©SHRM 2008

Outcomes of Strategic Planning

• Improved decision making• Better leadership—more cohesive team• Development of strategic thinking and

implementation skills• Better allocation of resources and

responsibilities• Identification of short- and long-term

“attention” areas• Lists of short-term and long-term goals

©SHRM 2008

Outcomes of Strategic Planning

• Increased recognition from external and internal sources

• Consistent, sustained success, as opposed to marginal success

• Strategic budget—a plan for 1-2 years and 3-5 years regarding what budget changes are needed to reach plan goals

©SHRM 2008

Future Leaders/Succession

• Based on the SWOT and environmental scan results, what traits or expertise will be needed for future leaders?

• Will you change your succession plan? • Do current leaders have the skills to implement

and follow the plan?

©SHRM 2008

After the Plan

• Follow up with your membership to share the plan goals and successes – keep them in the loop about your activities and how you are working for the best interests and successful future of the chapter/council

• The most important (and the most difficult) thing about strategic planning? NOT allowing it to just sit on a bookshelf!

©SHRM 2008

Kellie Conn, SPHR

State Director-Elect for Tennessee

©SHRM 2008

State Councils and Chapters: Planning Steps

• Appoint facilitator (internal or external)• Discuss process with 1-2 leaders; agree on

process that works best for your group• Hold first meeting to review process,

communicate expectations of team members (including time commitment) and set timeline for steps

• Go through process• Use plenty of reminders via email, etc., for

planning team to stay on track (cont’d.)

©SHRM 2008

State Councils and Chapters: Planning Steps

• Consider several small meetings/steps rather than one marathon meeting day

• Consider 3-5 key initiatives for one year; keep it focused

• Finalize plan, including action items, with team• Communicate plan to board, hold “clarification”

session to be sure everyone is on the same page

• Appoint “captains” for each initiative from board

(cont’d.)

©SHRM 2008

State Councils and Chapters: Planning Steps

• Delegate action items to council/board members or committees and the appropriate committee members

• Appoint task forces for initiatives that do not need full-time committees

• Follow up > Check in with captains at each board

/council meeting (or otherwise on a monthly basis)

> Frequent reminders of timelines/deadlines• Use last year’s plan as a starting point for the

next year’s

©SHRM 2008

State Council Case Study: Tennessee SHRM

State Council Tips:

• Recruiting your strategic planning team members> Volunteers from your council> Strategic planning facilitation experience> Director, Director-Elect – important team members; not

necessarily the best choice for facilitator. One can be the “hammer” – sending reminders; keeping group on track

• Working with team members in different geographical locations> Phone conferencing – tried it, didn’t work well> Video teleconferencing – volunteers didn’t have technology> Planning worksheets – what worked best for us> Try to meet in person 1-2 x – we had two; May and Sept

council meetings

• Follow up, follow up, follow up> E-mailed reminders on scheduled deadlines; frequent

communication about progress and “thank yous”

©SHRM 2008

Chapter Case Study: Middle TN SHRM

Chapter tips:• Recruiting your strategic planning team

> Members with strategic planning facilitation experience

> Volunteers from board – encourage participation but may want to make it voluntary at the beginning

> Advise against president or president-elect acting as facilitator unless they are the best qualified, skill-wise

> Consider outside member as facilitator• Held 3 2-hour meetings rather than one marathon

meeting• Used pre-work for brainstorming SWOT• Submitted brainstormed SWOT results, compiled, to

team before next meeting

©SHRM 2008

Questions?• The recorded archive of this webinar and the slides will be

available at http://www.shrm.org/Communities/VolunteerResources/WebcastArchivesforVolunteerLeaders/Pages/default.aspx

• If you need assistance with your strategic planning efforts, please contact your Field Services Director.