1. AMY NISENSON Consultant and Executive Director, The Mary Morton Parsons Foundation NONPROFIT LEARNING POINT APRIL 15, 2016 STRATEGIC THINKING FOR NON-EXECUTIVES apnconsult2016

2. Introductions © A.P.Nisenson Consulting 2 Name Describe your Organization Your role in the organization

3. Admin & Housekeeping © A.P.Nisenson Consulting 3 Format of the course Timing and breaks Restrooms Dining options

4. © A.P.Nisenson Consulting 4 What does it mean to be a strategic thinker? What does strategic processes look like? What are members of an organization’s role in the strategic process?

5. © A.P.Nisenson Consulting 5 What do you hope to takeaway from this class?

6. Definition of Strategic Thinking… apnconsulting2014/boardsource Strategic thinking is the way in which people in an organization think about the current work and plan the future work. This involves setting priorities which are essential to mission, that are responsible to the operating environment and well matched to the organization’s strengths and capabilities.

7. Definition of Strategic Planning… apnconsulting2014/boardsource Strategic planning is an organization’s process of defining its strategy or direction, and making decisions on allocating its resources to pursue this strategy. This is done in partnership with board and staff.

8. Difference between strategic thinking and planning… apnconsulting2014/boardsource Strategic thinking and planning exist in a cooperative relationship. Strategic planning gives voice, action, and structure to strategic thinking. Strategic thinking informs strategic planning/management.

9. Let’s explore strategic thinking… apnconsulting2014/boardsource Strategic thinking is… Clarifying existing work Assessing financial and mission performance of core activities Monitoring trends in the operating environment Testing assumptions behind strategic plans Adjusting or discarding a strategy Deciding to do less things in order to do things better

10. What do strategic thinkers do well? apnconsulting2014/boardsource Anticipate Think critically Interpret Decide Align Learn

11. Can you become a strategic thinker? apnconsulting2014/boardsource Encourage your organizational leadership to empower staff Match employees with assignments that make use of expertise and abilities Give employees autonomy in how they approach work Provide them with necessary resources to do work Encourage team work among staff Encourage performance recognition Create a climate where everyone is encourage to think creatively

12. Exercise apnconsulting2014/boardsource Break into pairs Each pair share some of their past experiences (think about how you might leverage an experience as an opportunity to think strategically) How can you turn these experiences into a way to think strategically to help solve current organizational problems? 15 minutes….

13. Are you a strategic thinker in your organization? apnconsulting2014/boardsource Write down changes you can make in how you think and do when you return to work…

14. SOURCE: Nonprofit Lifecycles, Susan Kenny Stevens Nonprofit Lifecycles Seven organizational lifecycle stages of a nonprofit apnconsultingfeb2013 14

15. SOURCE: Nonprofit Lifecycles, Susan Kenny Stevens Nonprofit Lifecycles Seven organizational lifecycle stages of a nonprofit apnconsultingfeb2013 15 Stage #1: Idea -No formal organization and a personal mandate to fill a societal, programmatic or cultural gap in community. Stage #2: Start-Up -Beginning stage of organizational operations but usually no formal governance, management, resources or systems. Stage #3: Growth- Nonprofit mission and programs have taken hold but service demands exceeds current structural and resource capabilities. Stage #4: Maturity- Organization is well-established, operating smoothly, and has a community reputation for providing consistently relevant and high quality services.

16. SOURCE: Nonprofit Lifecycles, Susan Kenny Stevens Nonprofit Lifecycles Seven organizational lifecycle stages of a nonprofit apnconsultingfeb2013 16 Stage #5: Decline –Organization’s services are no longer relevant in the marketplace. Status quo decisions are made, and declining program numbers creates deficiency between operating income and expenses. Stage #6: Turnaround -Organization decides to take pro-active actions to begin to restructure management, finances, operations, and marketing to become relevant again.. Stage #7 Terminal- Organization has neither the will, purpose nor energy to continue to exist.

17. Different Thinking at Different Stages… apnconsulting2014/boardsource

18. Strategic Thinking Applied to the Strategic Planning Process apnconsulting2014/boardsource Strategic Thinking Process Anticipation Critical Thinking Interpretation Decision-making Aligning Learning Strategic Planning Process Data gathering- Anticipation Analysis-Critical Thinking Strategy Formulation- Interpretation Goal Setting-Decision- making Implementation-Aligning Review and Revision- Learning

19. Has this occurred in your organization? apnconsulting2014/boardsource

20. Basic Terminology apnconsultingfeb2013 20 Mission Vision Values Customers Services Elevator Speech Sustainability Capacity

21. Mission apnconsultingfeb2013 21 Mission answers the question of why the organization exists, and describes the needs the organization was created for. It drives the organization’s day to day ! Examples: To provide affordable housing for elderly, low income persons To bring happiness to millions We put out fires, we save lives, we stay safe

22. Mission statement apnconsultingfeb2013 22

23. Vision apnconsultingfeb2013 Vision describes the ideal future for the organization; creates a vision of what is yet to be accomplished. Examples: A community without HIV/AIDS To be the premier provider of services to persons who have experienced domestic violence To have a computer on every desk and in every home

24. Values apnconsultingfeb2013 24 How we will treat each other and our constituents. Examples: Accountability Customer Service Excellence Innovation Teamwork

25. Customers apnconsultingfeb2013 25 Any person, group or organization receiving your products and/or services. Examples: Low income families Men over the age of 18 with a substance abuse diagnosis

26. Services apnconsultingfeb2013 26 Deliverables that the customer receives Examples: Case Management Housing Counseling

27. Elevator Speech – Putting it all together apnconsultingfeb2013 27 Nonprofit organization provides products and services to customers. Our fundamental purpose is to mission. Our long term goal is to vision and the outcomes we are working towards are goals.

28. Sustainability apnconsultingfeb2013 28 Definition--- Keep in existence; supply with necessities, to support from below, to encourage, and to maintain completely.

29. Capacity apnconsultingfeb2013 29 Capacity--Specific ability of an entity (person or organization) or resource, measured in quantity and level of quality, over an extended period.” Availability of resources- Time People Skills Knowledge Abilities Money

30. Capacity Building apnconsultingfeb2013 30 “ An organization’s core skills, management practices, strategies, and systems to enhance an organization’s effectiveness, sustainability, and ability to fulfill its mission.” Adapted from Social Venture Partners

31. Approaches to Capacity Building apnconsultingfeb2013 31 Strategic Planning Technical Assistance Systems Investments Team Building Sessions Management, Development and Financial Training Supporting Collaborations

32. Capacity Building apnconsultingfeb2013 32 According to Susan Kenny Stevens, she defines capacity building in four “table legs” --- (management, governance, financial resources and administrative systems) that support a nonprofit’s mission and programs

33. Six areas critical to nonprofit success apnconsultingfeb2013 33 Programs — Services Provided to Accomplish Goals Management- Board Marketing- External image Governance - Executive Leadership/Staff Financial Resources- Fundraising and Financial Management Administrative Systems- Day to Day Operations

34. Importance of planning apnconsultingfeb2013 34 Brings clarity to mission and vision Helps organizations plan for future Helps organizations anticipate and manage change Improves the day-to day decision making Problem solving becomes related to long –range and short-term goals Helps nonprofits be more accountable; better stewards

35. Importance of Planning apnconsultingfeb2013 35 Promotes synergy between board and staff Allows for a renewed energy and commitment to cause Brings back institutional history Celebrates organizational strengths Allows critical review of systems and processes

36. Strategy apnconsultingfeb2013 36 Definition--- A plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result: a strategy for getting ahead in the world.

37. Strategy apnconsultingfeb2013 37 What is it? What does it mean for your organization?

38. What’s involved in strategy? apnconsultingfeb2013 38 Who we are? What is our history? Where are we today? What’s next? How will get to “ our next”? Peter Drucker- ”If you don’t know where you are going, any plan will do.”

39. What is managing strategically? apnconsultingfeb2013 39 Creating and implementing strategies Continual evaluation Continual refinement Must work at it—doesn’t happen overnight “However beautiful the strategy, you should occasionally look at the results”strategy Sir Winston Churchill 1874-1965, English statesman

40. Strategy Pyramid apnconsultingfeb2013 Operational How organization manages day to day Programmatic How programmatic activities meet needs in the most effective manner Organizational Who and what we are in larger world (consider identity, direction, partners and competitors) 40

41. How do all different pieces of strategy fit in your organization? apnconsulting2014/boardsource Strategic plan Fund Development plan Marketing plan Program plan(s) Other

42. Strategic Planning: The Basics Who Should Be Involved in the Planning Process? Full board Chief executive Key staff members External stakeholders Consultant Steering committee

43. Strategic Planning: The Basics Board’s Role Commits to planning Ensures adequate resources Decides on approach Coordinates steering committee Helps prepare and approves “plan to plan” Ensures full board participation

44. Strategic Planning: The Basics Board’s Role (cont.) Conducts board self-assessment Reviews and approves vision, mission, critical issues, and strategies Ensures strategies become operational Is familiar with plan and has final approval Ensures plan is fully implemented Oversees accomplishment of goals

45. Strategic Planning: The Basics Chief Executive’s Role Seeks board’s buy-in for planning With the board, ensures adequate resources With the board, decides on planning approach With the board, coordinates steering committee Participates in “plan to plan”

46. Strategic Planning: The Basics Chief Executive’s Role (cont.) Ensures participation of staff Informs staff; encourages feedback and input Prepares operational plan with staff Evaluates accomplishment of strategies, goals, and objectives Regularly reports status to board

47. Strategic Planning: The Basics Staff’s Role Staff <20: Expect participation from every staff member Staff >20: Create leadership team more directly involved in planning

48. Strategic Planning: The Basics Staff’s Role (cont.) Analyzes internal capacity Formulates and distributes surveys Organizes data collection With chief executive, identifies critical issues (vision, mission, strategies) With chief executive, prepares operational plan Implements plan

49. Strategic Planning: The Basics Stakeholders’ Role Who? Clients, staff, funders, members, community What? Involvement with internal/external assessments Outsider’s perspective

50. Strategic Planning: The Basics Consultant’s Role Guides decision-making process Focuses board’s thinking Guides “plan to plan” Supplies examples of other plans Ensures key stakeholders’ participation

51. Strategic Planning: The Basics Consultant’s Role As Facilitator Plans/leads steering committee meetings and retreat Asks the “hard” questions Focuses group on critical issues Facilitates discussion on long term Reflects thoughts and ideas back

52. Strategic Planning: The Basics Steering Committee’s Role Who? Board members, staff members, consultant What? Guides planning process Determines approach Plans retreat Writes surveys and analyzes data Prepares final document

53. Fund Development Plan APN Consulting 2013 53 Annual budget in coordination with development plan Take into account the Giving USA trends and your own pie charts Reserves, forward funding, sustainability Reflects back on strategic plan

54. What goes into your fund development plan? APN Consulting 2013 54 Goals by types of revenues ($ and %) History of each type 3-5 year suggest Special circumstances How will you achieve your goals? Activities, process, when Who responsible Annual budget should reflect plan and vice-versa

55. Once you have fund development plan … APN Consulting 2013 55 Strategy involved--- Buy-in Review operations Staff Look at board Database and other systems Were you inclusive (ie. Cultivation events included in budget)

56. On-going work on development plan APN Consulting 2013 56 Review development plan on a regular basis Meeting goals Revise plan and budget when needed Inform board and staff Does it tie in with Strategic Plan

57. Marketing Plan apnconsulting2014/boardsource The Marketing plan— The planning process that yields decisions in how a nonprofit can best compete in the markets it elects to serve. The strategic plan is based upon the totality of the marketing process. The process taken into account the current position of the organization, helps in identifying the promotional opportunities & evaluating these opportunities.

58. Strategies involved in creating the Market Plan apnconsulting2014/boardsource Implement horizontal not vertical plan (integrate between departments) Divide audience into subgroup segments Focus on the call to action Create a variety of different messages (website, social media, newsletter, brochures) Be CONSISTENT Think outside the box-don’t always go with what worked before

59. On-going work on marketing plan apnconsulting2014/boardsource Review marketing plan on a regular basis Meeting goals Revise plan and budget when needed Inform board and staff Does it tie in with Strategic Plan Be accountable-ROI

60. Program Plan Profitability & Mission Impact No, it’s not an oxymoron… even non-profits have to be able to make enough money to cover their costs Be able to parse your activities and services- and their relationship to your mission and vision. Analysis of both financial viability AND mission impact 60

61. Analysis: Part One Impact Analysis First, be able to list your activities: your programs, services and fundraising activities- ALL of your activities! Second, quantify the impact of each program and service – Outputs, outcomes and impact: all important Outputs: what you do (# clients services, # training programs, # phone calls) Outcomes: what happens as a result of your outputs? Impact: what has changed? How has the needle moved for the problem you are trying to solve? 61

62. Analysis: Part One Impact Analysis (cont’d) How do you measure? How do these relate to the mission and vision of your organization? Rank the programs and services on the IMPACT they have on your target beneficiaries 62

63. Analysis: Part Two Financial Viability Analysis of the revenues and expenses associated with each activity or service offered Objectivity in the process What does it cost to offer each service or program? Need to allocate overhead to each of the items listed in Part One. Rank the programs and services in order of financial profitability 63

64. Matrix Map Put Parts One and Two together Provides a picture of where your organization’s programs and services help you meet your mission AND What combination of impact and profitability provides the best strategy for sustainability 64

65. Sustainability Analysis High Mission Impact Low Profitability High Mission Impact High Profitability Low Mission Impact Low Profitability Low Mission Impact High Profitability Profitability  Impact 

66. Alternatives to strategic planning apnconsultingfeb2013 Strategic Learning Agenda Development Assessment and Fundraising revamp Business Model Adjustment (compare programs and revenue) 360 review of Executive and/or top leadership Community-oriented review of organization and work 66

67. Elements of Sustainability apnconsultingfeb2013 Vision Results orientation Strategic Financing Adaptability to Changing Conditions Broad-Based Community Support Key Champions Strong Internal Systems 67

68. Sustainability Planning apnconsultingfeb2013 Defines where you are and where you want to go Develops plans for long-term Provides standards to measure progress Brings value to your work for donors, clients, and partners 68

69. Keep in Mind apnconsultingfeb2013 Sustainability – “the capacity to endure” (Wikipedia) To be sustainable, must focus on: Programmatic Impact Financial Health An orientation, not a destination 69

70. Must define business model apnconsultingfeb2013 Define scope of geographic area where services are provided Define our customers Define what programs and services we offer Define where our funding comes from 70

71. Thanks for attending… apnconsulting2014/boardsource Amy’s contact info--- Amy Nisenson (804) 307-4653 amy.nisenson@gmail.com