3Leadership’s Role in . . . Assuring long term financial sustainability Alliances, partnerships and strategic restructuringMeasuring mission impactBoard and staff leadership succession planningNonprofit advocacy and public policy workcreatethefuture.com
4Governance As Leadership A Framework for Strategic and Generative Thinking
53 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
6Three Modes of Governance Type I FiduciaryType II StrategicType III GenerativeBoard’s roleSteward/ WatchdogStrategistSense MakerKey questionWhat’s wrong?What’s the plan?What’s the key question?Problems are to beSpottedSolvedFramedWay of decidingReach resolutionReach consensusReach understanding
7The Premise . . .No perfect one-size-fits-all strategic planning model for every organization at all times.
8It 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?
9It 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?
10Strategic Planning: A Range of Options More Focused ProcessMore Comprehensive Process
14Strategic 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.
15Make Decisions About . . .The mission, vision and goals your organization will pursueWhom you will serveYour organization's role in the communityThe kinds of programming, services or products you will offerThe resources needed to succeedHow to best combine these resources, programming and relationships for mission impact
16Distinguishing Features Attention to external environment, markets and stakeholdersFocus on developing shared visionIt’s strategic!Addressing critical emerging issues versus putting out brush firesInnovation versus business as usual
17Vision of Intended Impact Planning as aJourneyToday’s RealityVision of Intended Impactcreatethefuture.com
18Steps of the Planning Process Step 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
19Steps of the Planning Process Step 5 - Development of Strategic GoalsStep 6 - Formulation of Strategies for Each GoalStep 7 - Preparation for Implementation Planning Based on the Strategic Plan (Annual Objectives)
20Levels of the Planning Process MissionVisionGoalsStrategiesObjectives“Forever”5-10 years out3-5 years1-3 years1 yearcreatethefuture.com
21Strategic Planning Benefits Clear direction and focusIncreased program impactImproved service deliveryEnhanced marketing and fundraisingBoard effectivenessFoundation for other types of planningEngage others leading to deeper commitmentsBe prepared for change
22Elements of Effective Planning Shared understanding of strategic planningReal commitment to the processAgreed upon outcomes for processLeadership of the boardInvolvement of key stakeholdersStructured to encourage boldness, risk- taking and creativity
23Who Should be Involved? Organizational leadership Executive director and board presidentOther board and staff leadershipStrategic planning committeeBroad based constituent inputInternal stakeholders--all board and staff members, consumers/clients volunteers representingExternal stakeholders--donors and prospective public and private funders, partners, among others
24Step 1: Information Gathering and Analysis External AssessmentInternal AssessmentMarket Assessment
25Types of DataChanges and trends that impact the organization and the people we serveMarket information about needs, perceptions and services expectationsInternal assessment data that indicates capacity to deliver the mission
26Sources of Data Existing statistics, studies, etc. Secondary market researchSurveysFocus groupsKey informant/expert InterviewsCommunity forumsInternal reviews, assessments and evaluations
27An Information Gathering Plan Board and staff surveyKey informant surveyFocus groups (Ex. for a school: parents, students, alumni, educators, community partners, donors, volunteers)Financial trends dataData from regional and national networksOrganizational assessmentsAccreditation reports
28Step 2: Critical Strategic Issues Fundamental policy or program concerns which define major choices an organization faces now and in the futureLong-standing problems anticipated to have a significant impact on the organization and/or community servedMajor shifts in thinking that challenge business as usualTension Points
29Step 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”
30Step 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 resultsVision communicates “direction”
31Vision of Intended Impact Planning as aJourneyToday’s RealityVision of Intended Impactcreatethefuture.com
32Strategic 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.
33Strategic 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)
34Strategic Vision Example More people, bowling more often, having more fun. (Bowling Inc.)
35Strategic 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.
36Step 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.ExampleAttract, develop and retain a versatile high performing workforce.
37Step 6: Strategies Timeframe — 1-3 years Statements of major approach or method for attaining goals and resolving critical issues. ExampleOffer a wide range of professional development opportunities for all employees.
38Step 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.ExampleLaunch a web-based professional training and development portal for employees by December 2014.
39Goal/Strategy/Objective Progression Attract, develop and retain a versatile high performing workforceOffer a wide range of professional development opportunities for all employeesLaunch aweb-based professional training and development portal by December 2014createthefuture.com
40Objectives Responsible Party Time Frame Measure What will be accomplishedResponsible PartyPosition or group with primary responsibility for the objectiveTime FrameIdentify completion dateMeasureHow achievement of objective will be measuredLaunch a web-based professional training and development portal by December 2014HR DirectorDec. 31, 2014# of portal visits;# of tools downloaded;# of times accessed web based resources are incorporated into professional development plansEtc.createthefuture.com
41Accelerated Strategic Planning Responding to new opportunities fasterNew modelsNot a substitute for mission and vision work“Faster is slower”Collaborative strategic planningCreate opportunities for continuous strategic thinking
43Focused Issue Approach Highly focused effort: issue(s) clearly identified at the outsetAssessment of information/data needsDevelopment of strategies and action objectives to address selected issue(s)
471. 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?
482. Economic Attractiveness (High or Low) Current stable funding?High appeal to funders, supporters?High market demand?Measurable, reportable outcomes/results?
493. Alternate Coverage -- competition (High or Low) Are similar services provided?Do customers have many other choices?Competitors now and future?
504. Competitive Position-- Stronger capability and potential to deliver the service than current or emerging competitors (Strong or Weak)Stable staffing?Ability to maintain and continually increase competency?Cost effective?Strong connections with consumers and stakeholders?Good location, logistical delivery system?Will customers remain? Grow?Is quality superior?Record of securing grants, funding?
52High Economic Attractiveness (Easy to attract resources for support) MacMillan MatrixHigh Economic Attractiveness(Easy to attract resources for support)Low Econonic Attractiveness(Difficult to attract resources for support)Alternate CoverageHIGHLOWStrong Competitive Position1. Aggressive Competition2. Aggressive Growth5. Reinforce Best Competitor or Find Partner6. “Soul of the Agency”GOOD FITWeak Competitive Position3. Aggressive Divestment4. Invest, Find Partner or Divest7. Consider Partner or Divest8. Find Partner or Divest9. Aggressive Divestment10. Orderly DivestmentPOOR FIT
53Bell, Masaoka and Zimmerman The Matrix MapBell, Masaoka and Zimmerman
54What are your true costs? Understand Your FinancesSpecific CostsShared CostsAdmin CostsDirect Costs / Program CostsPortion of rent, liability insurance, technology, etc.Portion of administrative costs.What are your true costs?
55Assessing Mission Impact Alignment with core missionExcellence in executionScale or volumeDepthFilling an important gapCommunity buildingLeverageCriteria to Consider
65Scenario Planning Steps 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.
67Scenario DevelopmentDevelop 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?What is the impact of this future scenario on the YWCA and/or community served?What are the implications for the YWCA? - What actions would we take to advance our mission if we knew this were the future? Write a short story or narrative that describes your assigned scenario.
69Collaborative Strategic Planning Increasingly common – and important!Focus on a shared customer base or constituency rather than developing a plan for one organization
70Case Example Convener: Mental Health America - Wisconsin Collaboration Partners: Nonprofit organizations and public agencies working in mental healthPlanning Focus: Develop strategies to incorporate prevention and early intervention initiatives into the state public mental health system
71Other Approaches and Tools Open spaceFuture search conferenceWhole systemsAppreciative inquiryReal time strategic change
72Fostering Innovation, Boldness, And Risk Taking Include “outsiders”Use analogies from other fieldsInvolve people at the edgesMeet in unfamiliar settingsLet yourselves gocreatethefuture.com
73Preparing 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?
74Preparing 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?
75Back-home Planning: Initial thinking about the planning approach that will meet your YWCAs needs at this time