http://www.managementhelp.

org/ Page1of15
StrategicPlanning(innonprofitorforprofitorganizations)
WrittenbyCarterMcNamara,MBA,PhD,AuthenticityConsulting,LLC.Copyright19972008.
AdaptedfromtheFieldGuidetoNonprofitStrategicPlanningandFacilitation.
Simplyput,strategicplanningdetermineswhereanorganizationisgoingoverthenextyearor
more,howit'sgoingtogetthereandhowit'llknowifitgotthereornot.Thefocusofastrategic
planisusuallyontheentireorganization,whilethefocusofabusinessplanisusuallyona
particularproduct,serviceorprogram.
Thereareavarietyofperspectives,modelsandapproachesusedinstrategicplanning.Theway
thatastrategicplanisdevelopeddependsonthenatureoftheorganization'sleadership,
cultureoftheorganization,complexityoftheorganization'senvironment,sizeofthe
organization,expertiseofplanners,etc.Forexample,thereareavarietyofstrategicplanning
models,includinggoalsbased,issuesbased,organic,scenario(somewouldassertthatscenario
planningismoreatechniquethanmodel),etc.Goalsbasedplanningisprobablythemost
commonandstartswithfocusontheorganization'smission(andvisionand/orvalues),goalsto
worktowardthemission,strategiestoachievethegoals,andactionplanning(whowilldowhat
andbywhen).Issuesbasedstrategicplanningoftenstartsbyexaminingissuesfacingthe
organization,strategiestoaddressthoseissues,andactionplans.Organicstrategicplanning
mightstartbyarticulatingtheorganization'svisionandvaluesandthenactionplanstoachieve
thevisionwhileadheringtothosevalues.Someplannerspreferaparticularapproachto
planning,e.g.,appreciativeinquiry.Someplansarescopedtooneyear,manytothreeyears,
andsometofivetotenyearsintothefuture.Someplansincludeonlytoplevelinformationand
noactionplans.Someplansarefivetoeightpageslong,whileotherscanbeconsiderably
longer.
Quiteoften,anorganization'sstrategicplannersalreadyknowmuchofwhatwillgointoa
strategicplan(thisistrueforbusinessplanning,too).However,developmentofthestrategic
plangreatlyhelpstoclarifytheorganization'splansandensurethatkeyleadersareall"onthe
samescript".Farmoreimportantthanthestrategicplandocument,isthestrategicplanning
processitself.
NOTE:Muchofthefollowinginformationisinregardtogoalsbasedstrategicplanning,probably
themostcommonformofstrategicplanning.
WhatisStrategicPlanning?
Simplyput,strategicplanningdetermineswhereanorganizationisgoingoverthenextyearor
moreandhowit'sgoingtogetthere.Typically,theprocessisorganizationwide,orfocusedona
majorfunctionsuchasadivision,departmentorothermajorfunction.(Thedescriptionsonthis
pageassumethatstrategicplanningisfocusedontheorganization.)
http://www.managementhelp.org/ Page2of15
HowtoGetaFeelforStrategicPlanningThere'sNoPerfectWaytoDoIt
Planningtypicallyincludesseveralmajoractivitiesorstepsintheprocess.Differentpeopleoften
havedifferentnamesforthesemajoractivities.Theymightevenconducttheminadifferent
order.Strategicplanningoftenincludesuseofseveralkeyterms.Differentpeoplemightuse
applydifferentdefinitionsfortheseterms,aswell.
Don'tbeconcernedaboutfindingthe"perfectway"toconductstrategicplanning.Onceyou
startstrategicplanning,you'llsoonfindyourownparticularapproachtocarryingoutthe
process.
OneWaytoLookatStrategicPlanning
Oneinterpretationofthemajoractivitiesinstrategicplanningactivitiesisthatitincludes:
1.StrategicAnalysis
Thisactivitycanincludeconductingsomesortofscan,orreview,oftheorganization's
environment(forexample,ofthepolitical,social,economicandtechnicalenvironment).
Plannerscarefullyconsidervariousdrivingforcesintheenvironment,forexample,increasing
competition,changingdemographics,etc.Plannersalsolookatthevariousstrengths,
weaknesses,opportunitiesandthreats(anacronymforthisactivityisSWOT)regardingthe
organization.
(Somepeopletakethiswidelookaroundafterthey'veidentifiedorupdatedtheirmission
statement,visionstatement,valuesstatement,etc.Thesestatementsarebrieflydescribed
below.Otherpeopleconducttheanalysisbeforereviewingthestatements.)
(Notethatinthepast,organizationsusuallyreferredtothephrase"longrangeplanning".More
recently,plannersusethephrase"strategicplanning".Thisnewphraseismeanttocapturethe
strategic(comprehensive,thoughtful,wellplaced)natureofthistypeofplanning.)
2.SettingStrategicDirection
Plannerscarefullycometoconclusionsaboutwhattheorganizationmustdoasaresultofthe
majorissuesandopportunitiesfacingtheorganization.Theseconclusionsincludewhatoverall
accomplishments(orstrategicgoals)theorganizationshouldachieve,andtheoverallmethods
(orstrategies)toachievetheaccomplishments.Goalsshouldbedesignedandwordedasmuch
aspossibletobespecific,measurable,acceptabletothoseworkingtoachievethegoals,
realistic,timely,extendingthecapabilitiesofthoseworkingtoachievethegoals,andrewarding
tothem,aswell.(Anacronymforthesecriteriais"SMARTER".)
Atsomepointinthestrategicplanningprocess(sometimesintheactivityofsettingthestrategic
direction),plannersusuallyidentifyorupdatewhatmightbecalledthestrategic"philosophy".
Thisincludesidentifyingorupdatingtheorganization'smission,visionand/orvalues
statements.Missionstatementsarebriefwrittendescriptionsofthepurposeofthe
organization.Missionstatementsvaryinnaturefromverybrieftoquitecomprehensive,and
http://www.managementhelp.org/ Page3of15
includinghavingaspecificpurposestatementthatispartoftheoverallmissionstatement.
Manypeopleconsiderthevaluesstatementandvisionstatementtobepartofthemission
statement.Newbusinesses(forprofitornonprofit)oftenworkwithastateagencytoformally
registertheirnewbusiness,forexample,asacorporation,association,etc.Thisregistration
usuallyincludesdeclaringamissionstatementintheircharter(orconstitution,articlesof
incorporation,etc.).
Itseemsthatvisionandvaluesstatementsareincreasinglyused.Visionstatementsareusually
acompellingdescriptionofhowtheorganizationwillorshouldoperateatsomepointinthe
futureandofhowcustomersorclientsarebenefitingfromtheorganization'sproductsand
services.Valuesstatementslisttheoverallprioritiesinhowtheorganizationwilloperate.Some
peoplefocusthevaluesstatementonmoralvalues.Moralvaluesarevaluesthatsuggestoverall
prioritiesinhowpeopleoughttoactintheworld,forexample,integrity,honesty,respect,etc.
Otherpeopleincludeoperationalvalueswhichsuggestoverallprioritiesfortheorganization,for
example,toexpandmarketshare,increaseefficiency,etc.(Somepeoplewouldclaimthatthese
operationalvaluesarereallystrategicgoals.Don'tgethunguponwordingfornow.)
3.ActionPlanning
Actionplanningiscarefullylayingouthowthestrategicgoalswillbeaccomplished.Action
planningoftenincludesspecifyingobjectives,orspecificresults,witheachstrategicgoal.
Therefore,reachingastrategicgoaltypicallyinvolvesaccomplishingasetofobjectivesalongthe
wayinthatsense,anobjectiveisstillagoal,butonasmallerscale.
Often,eachobjectiveisassociatedwithatactic,whichisoneofthemethodsneededtoreach
anobjective.Therefore,implementingastrategytypicallyinvolvesimplementingasetoftactics
alongthewayinthatsense,atacticisstillastrategy,butonasmallerscale.
Actionplanningalsoincludesspecifyingresponsibilitiesandtimelineswitheachobjective,or
whoneedstodowhatandbywhen.Itshouldalsoincludemethodstomonitorandevaluate
theplan,whichincludesknowinghowtheorganizationwillknowwhohasdonewhatandby
when.
It'scommontodevelopanannualplan(sometimescalledtheoperationalplanor
managementplan),whichincludesthestrategicgoals,strategies,objectives,responsibilities
andtimelinesthatshouldbedoneinthecomingyear.Often,organizationswilldevelopplans
foreachmajorfunction,divisiondepartment,etc.,andcalltheseworkplans.
Usually,budgetsareincludedinthestrategicandannualplan,andwithworkplans.Budgets
specifythemoneyneededfortheresourcesthatarenecessarytoimplementtheannualplan.
Budgetsalsodepicthowthemoneywillbespent,forexample,forhumanresources,
equipment,materials,etc.
(Notethereareseveraldifferentkindsofbudgets.Operatingbudgetsareusuallybudgets
associatedwithmajoractivitiesoverthecomingyear.Projectbudgetsareassociatedwithmajor
http://www.managementhelp.org/ Page4of15
projects,forexample,constructingabuilding,developinganewprogramorproductline,etc.
Cashbudgetsdepictwherecashwillbespentoversomenearterm,forexample,overthenext
threemonths(thisisveryusefulinordertoknowifyoucanaffordbillsthatmustbepaidsoon.
Capitalbudgetsareassociatedwithoperatingsomemajorasset,forexample,abuilding,
automobiles,furniture,computers,etc.
http://www.managementhelp.org/ Page5of15
BasicOverviewofVarietyofPlanningModels
Here'saquickoverviewofavarietyofstrategicplanning.Thisoverviewwillhelpyougetafeel
forthevarietyofperspectivesonstrategicplanning.
Thereisnooneperfectstrategicplanningmodelforeachorganization.Eachorganizationends
updevelopingitsownnatureandmodelofstrategicplanning,oftenbyselectingamodeland
modifyingitastheygoalongindevelopingtheirownplanningprocess.Thefollowingmodels
providearangeofalternativesfromwhichorganizationsmightselectanapproachandbeginto
developtheirownstrategicplanningprocess.Notethatanorganizationmightchooseto
integratethemodels,e.g.,usingascenariomodeltocreativelyidentifystrategicissuesand
goals,andthenanissuesbasedmodeltocarefullystrategizetoaddresstheissuesandreachthe
goals.
Thefollowingmodelsinclude:basicstrategicplanning,issuebased(orgoalbased),
alignment,scenario,andorganicplanning.

ModelOneBasicStrategicPlanning
Thisverybasicprocessistypicallyfollowedbyorganizationsthatareextremelysmall,busy,and
havenotdonemuchstrategicplanningbefore.Theprocessmightbeimplementedinyearone
ofthenonprofittogetasenseofhowplanningisconducted,andthenembellishedinlater
yearswithmoreplanningphasesandactivitiestoensurewellroundeddirectionforthe
nonprofit.Planningisusuallycarriedoutbytoplevelmanagement.Thebasicstrategicplanning
processincludes:
1. Identifyyourpurpose(missionstatement)Thisisthestatement(s)thatdescribeswhy
yourorganizationexists,i.e.,itsbasicpurpose.Thestatementshoulddescribewhat
clientneedsareintendedtobemetandwithwhatservices,thetypeofcommunitiesare
sometimesmentioned.Thetoplevelmanagementshoulddevelopandagreeonthe
missionstatement.Thestatementswillchangesomewhatovertheyears.
2. SelectthegoalsyourorganizationmustreachifitistoaccomplishyourmissionGoals
aregeneralstatementsaboutwhatyouneedtoaccomplishtomeetyourpurpose,or
mission,andaddressmajorissuesfacingtheorganization.
3. Identifyspecificapproachesorstrategiesthatmustbeimplementedtoreacheachgoal
Thestrategiesareoftenwhatchangethemostastheorganizationeventuallyconducts
morerobuststrategicplanning,particularlybymorecloselyexaminingtheexternaland
internalenvironmentsoftheorganization.
4. IdentifyspecificactionplanstoimplementeachstrategyThesearethespecific
activitiesthateachmajorfunction(forexample,department,etc.)mustundertaketo
ensureitseffectivelyimplementingeachstrategy.Objectivesshouldbeclearlyworded
totheextentthatpeoplecanassessiftheobjectiveshavebeenmetornot.Ideally,the
http://www.managementhelp.org/ Page6of15
topmanagementdevelopsspecificcommitteesthateachhaveaworkplan,orsetof
objectives.
5. MonitorandupdatetheplanPlannersregularlyreflectontheextenttowhichthe
goalsarebeingmetandwhetheractionplansarebeingimplemented.Perhapsthemost
importantindicatorofsuccessoftheorganizationispositivefeedbackfromthe
organizationscustomers.
Notethatorganizationsfollowingthisplanningapproachmaywanttofurtherconductstep3
abovetotheextentthatadditionalgoalsareidentifiedtofurtherdevelopingthecentral
operationsoradministrationoftheorganization,e.g.,strengthenfinancialmanagement.
ModelTwoIssueBased(orGoalBased)Planning
Organizationsthatbeginwiththebasicplanningapproachdescribedabove,oftenevolveto
usingthismorecomprehensiveandmoreeffectivetypeofplanning.Thefollowingtabledepicts
aratherstraightforwardviewofthistypeofplanningprocess.
SummaryofIssueBased(orGoalBased)StrategicPlanning
(Notethatanorganizationmaynotdoallofthefollowingactivitieseveryyear.)
1. External/internalassessmenttoidentifySWOT(StrengthsandWeaknessesand
OpportunitiesandThreats)
2. Strategicanalysistoidentifyandprioritizemajorissues/goals
3. Designmajorstrategies(orprograms)toaddressissues/goals
4. Design/updatevision,missionandvalues(someorganizationsmaydothisfirstin
planning)
5. Establishactionplans(objectives,resourceneeds,rolesandresponsibilitiesfor
implementation)
6. Recordissues,goals,strategies/programs,updatedmissionandvision,andactionplans
inaStrategicPlandocument,andattachSWOT,etc.
7. DeveloptheyearlyOperatingPlandocument(fromyearoneofthemultiyearstrategic
plan)
8. DevelopandauthorizeBudgetforyearone(allocationoffundsneededtofundyearone)
9. Conducttheorganizationsyearoneoperations
10. Monitor/review/evaluate/updateStrategicPlandocument
ModelThreeAlignmentModel
Theoverallpurposeofthemodelistoensurestrongalignmentamongtheorganizations
missionanditsresourcestoeffectivelyoperatetheorganization.Thismodelisusefulfor
organizationsthatneedtofinetunestrategiesorfindoutwhytheyarenotworking.An
organizationmightalsochoosethismodelifitisexperiencingalargenumberofissuesaround
internalefficiencies.Overallstepsinclude:
1. Theplanninggroupoutlinestheorganizationsmission,programs,resources,and
neededsupport.
2. Identifywhatsworkingwellandwhatneedsadjustment.
http://www.managementhelp.org/ Page7of15
3. Identifyhowtheseadjustmentsshouldbemade.
4. Includetheadjustmentsasstrategiesinthestrategicplan.
ModelFourScenarioPlanning
Thisapproachmightbeusedinconjunctionwithothermodelstoensureplannerstruly
undertakestrategicthinking.Themodelmaybeuseful,particularlyinidentifyingstrategicissues
andgoals.
1. Selectseveralexternalforcesandimaginerelatedchangeswhichmightinfluencethe
organization,e.g.,changeinregulations,demographicchanges,etc.Scanningthe
newspaperforkeyheadlinesoftensuggestspotentialchangesthatmighteffectthe
organization.
2. Foreachchangeinaforce,discussthreedifferentfutureorganizationalscenarios
(includingbestcase,worstcase,andOK/reasonablecase)whichmightarisewiththe
organizationasaresultofeachchange.Reviewingtheworstcasescenariooften
provokesstrongmotivationtochangetheorganization.
3. Suggestwhattheorganizationmightdo,orpotentialstrategies,ineachofthethree
scenariostorespondtoeachchange.
4. Plannerssoondetectcommonconsiderationsorstrategiesthatmustbeaddressedto
respondtopossibleexternalchanges.
5. Selectthemostlikelyexternalchangestoeffecttheorganization,e.g.,overthenext
threetofiveyears,andidentifythemostreasonablestrategiestheorganizationcan
undertaketorespondtothechange.
ModelFiveOrganic(orSelfOrganizing)Planning
Traditionalstrategicplanningprocessesaresometimesconsideredmechanisticorlinear,i.e.,
theyrerathergeneraltospecificorcauseandeffectinnature.Forexample,theprocesses
oftenbeginbyconductingabroadassessmentoftheexternalandinternalenvironmentsofthe
organization,conductingastrategicanalysis(SWOTanalysis),narrowingdowntoidentifying
andprioritizingissues,andthendevelopingspecificstrategiestoaddressthespecificissues.
Anotherviewofplanningissimilartothedevelopmentofanorganism,i.e.,anorganic,self
organizingprocess.Certaincultures,e.g.,NativeAmericanIndians,mightpreferunfoldingand
naturalisticorganicplanningprocessesmorethanthetraditionalmechanistic,linear
processes.Selforganizingrequirescontinualreferencetocommonvalues,dialoguingaround
thesevalues,andcontinuedsharedreflectionaroundthesystemscurrentprocesses.General
stepsinclude:
1. Clarifyandarticulatetheorganizationsculturalvalues.Usedialogueandstoryboarding
techniques.
2. Articulatethegroupsvisionfortheorganization.Usedialogueandstoryboarding
techniques.
http://www.managementhelp.org/ Page8of15
3. Onanongoingbasis,e.g.,onceeveryquarter,dialogueaboutwhatprocessesare
neededtoarriveatthevisionandwhatthegroupisgoingtodonowaboutthose
processes.
4. Continuallyremindyourselfandothersthatthistypeofnaturalisticplanningisnever
reallyoverwith,andthat,rather,thegroupneedstolearntoconductitsownvalues
clarification,dialogue/reflection,andprocessupdates.
5. Bevery,verypatient.
6. Focusonlearningandlessonmethod.
7. Askthegrouptoreflectonhowtheorganizationwillportrayitsstrategicplansto
stakeholders,etc.,whooftenexpectthemechanistic,linearplanformats.
http://www.managementhelp.org/ Page9of15
GainingUnderstandingofStrategicPlanning
LearningStrategicPlanning
First,aPointAboutForProfitandNonprofitStrategicPlanning
Majordifferencesinhoworganizationscarryoutthevariousstepsandassociatedactivitiesin
thestrategicplanningprocessaremoreamatterofthesizeoftheorganizationthanitsfor
profit/nonprofitstatus.Smallnonprofitsandsmallforprofitstendtoconductsomewhatsimilar
planningactivitiesthataredifferentfromthoseconductedinlargeorganizations.Ontheother
hand,largenonprofitsandlargeforprofitstendtoconductsomewhatsimilarplanningactivities
thataredifferentfromthoseconductedinsmallorganizations.(Thefocusoftheplanning
activitiesisoftendifferentbetweenforprofitsandnonprofits.Nonprofitstendtofocusmoreon
mattersofboarddevelopment,fundraisingandvolunteermanagement.Forprofitstendto
focusmoreonactivitiestomaximizeprofit.)
Also,inadditiontothesizeoftheorganization,differencesinhoworganizationscarryoutthe
planningactivitiesaremoreamatterofthenatureoftheparticipantsintheorganizationthan
itsforprofit/nonprofitstatus.Forexample,detailorientedpeoplemaypreferalinear,top
down,generaltospecificapproachtoplanning.Ontheotherhand,ratherartisticandhighly
reflectivepeoplemayfavorofahighlydivergentand"organic"approachtoplanning.
BenefitsofStrategicPlanning
1. Strategicplanningservesavarietyofpurposesinorganization,includingto:
Clearlydefinethepurposeoftheorganizationandtoestablishrealisticgoalsand
objectivesconsistentwiththatmissioninadefinedtimeframewithintheorganizations
capacityforimplementation.
2. Communicatethosegoalsandobjectivestotheorganizationsconstituents.
3. Developasenseofownershipoftheplan.
4. Ensurethemosteffectiveuseismadeoftheorganizationsresourcesbyfocusingthe
resourcesonthekeypriorities.
5. Provideabasefromwhichprogresscanbemeasuredandestablishamechanismfor
informedchangewhenneeded.
6. Bringtogetherofeveryonesbestandmostreasonedeffortshaveimportantvaluein
buildingaconsensusaboutwhereanorganizationisgoing.
Otherreasonsincludethatstrategicplanning:
1. Providesclearerfocusoforganization,producingmoreefficiencyandeffectiveness
2. Bridgesstaffandboardofdirectors(inthecaseofcorporations)
3. Buildsstrongteamsintheboardandthestaff(inthecaseofcorporations)
4. Providesthegluethatkeepstheboardtogether(inthecaseofcorporations)
5. Producesgreatsatisfactionamongplannersaroundacommonvision
http://www.managementhelp.org/ Page10of15
6. Increasesproductivityfromincreasedefficiencyandeffectiveness
7. Solvesmajorproblems
WhenShouldStrategicPlanningBeDone?
Theschedulingforthestrategicplanningprocessdependsonthenatureandneedsofthe
organizationanditsimmediateexternalenvironment.Forexample,planningshouldbecarried
outfrequentlyinanorganizationwhoseproductsandservicesareinanindustrythatis
changingrapidly.Inthissituation,planningmightbecarriedoutonceoreventwiceayearand
doneinaverycomprehensiveanddetailedfashion(thatis,withattentiontomission,vision,
values,environmentalscan,issues,goals,strategies,objectives,responsibilities,timelines,
budgets,etc).Ontheotherhand,iftheorganizationhasbeenaroundformanyyearsandisina
fairlystablemarketplace,thenplanningmightbecarriedoutonceayearandonlycertainparts
oftheplanningprocess,forexample,actionplanning(objectives,responsibilities,timelines,
budgets,etc)areupdatedeachyear.Considerthefollowingguidelines:
1. Strategicplanningshouldbedonewhenanorganizationisjustgettingstarted.(The
strategicplanisusuallypartofanoverallbusinessplan,alongwithamarketingplan,
financialplanandoperational/managementplan.)
2. Strategicplanningshouldalsobedoneinpreparationforanewmajorventure,for
example,developinganewdepartment,division,majornewproductorlineofproducts,
etc.
3. Strategicplanningshouldalsobeconductedatleastonceayearinordertobereadyfor
thecomingfiscalyear(thefinancialmanagementofanorganizationisusuallybasedona
yeartoyear,orfiscalyear,basis).Inthiscase,strategicplanningshouldbeconductedin
timetoidentifytheorganizationalgoalstobeachievedatleastoverthecomingfiscal
year,resourcesneededtoachievethosegoals,andfundedneededtoobtainthe
resources.Thesefundsareincludedinbudgetplanningforthecomingfiscalyear.
However,notallphasesofstrategicplanningneedbefullycompletedeachyear.Thefull
strategicplanningprocessshouldbeconductedatleastonceeverythreeyears.Asnoted
above,theseactivitiesshouldbeconductedeveryyeariftheorganizationisexperiencing
tremendouschange.
4. Eachyear,actionplansshouldbeupdated.
5. Notethat,duringimplementationoftheplan,theprogressoftheimplementation
shouldbereviewedatleastonaquarterlybasisbytheboard.Again,thefrequencyof
reviewdependsontheextentoftherateofchangeinandaroundtheorganization.

http://www.managementhelp.org/ Page11of15
PreparationforStrategicPlanning
GuidelinestoKeepPerspectiveDuringPlanning
Manymanagersspendmostoftheirtime"fightingfires"intheworkplace.theirtimeisspent
realizingandreactingtoproblems.Forthesemanagersandprobablyformanyofusitcan
beverydifficulttostandbackandtakeahardlookatwhatwewanttoaccomplishandhowwe
wanttoaccomplishit.We'retoobuydoingwhatwethinkismakingprogress.However,oneof
themajordifferencesbetweennewandexperiencedmanagersistheskilltoseethebroad
perspective,totakethelongviewonwhatwewanttodoandhowwe'regoingtodoit.Oneof
thebestwaystodevelopthisskillisthroughongoingexperienceinstrategicplanning.The
followingguidelinesmayhelpyoutogetthemostoutofyourstrategicplanningexperience.
1. Therealbenefitofthestrategicplanningprocessistheprocess,nottheplandocument.
2. Thereisno"perfect"plan.There'sdoingyourbestatstrategicthinkingand
implementation,andlearningfromwhatyou'redoingtoenhancewhatyou'redoingthe
nexttimearound.
3. Thestrategicplanningprocessisusuallynotan"aha!"experience.It'slikethe
managementprocessitselfit'saseriesofsmallmovesthattogetherkeepthe
organizationdoingthingsrightasitheadsintherightdirection.
4. Inplanning,thingsusuallyaren'tasbadasyoufearnorasgoodasyou'dlike.
5. Startsimple,butstart!
NeedAConsultantorFacilitatortoHelpYouWithPlanning?
Youmaywanttoconsiderusingafacilitatorfromoutsideofyourorganizationif:
1. Yourorganizationhasnotconductedstrategicplanningbefore.
2. Foravarietyofreasons,previousstrategicplanningwasnotdeemedtobesuccessful.
3. Thereappearstobeawiderangeofideasand/orconcernsamongorganization
membersaboutstrategicplanningandcurrentorganizationalissuestobeaddressedin
theplan.
4. Thereisnooneintheorganizationwhommembersfeelhassufficientfacilitationskills.
5. Nooneintheorganizationfeelscommittedtofacilitatingstrategicplanningforthe
organization.
6. Leadersbelievethataninsidefacilitatorwilleitherinhibitparticipationfromothersor
willnothavetheopportunitytofullyparticipateinplanningthemselves.
7. Leaderswantanobjectivevoice,i.e.,someonewhoisnotlikelytohavestrong
predispositionsabouttheorganization'sstrategicissuesandideas.
http://www.managementhelp.org/ Page12of15
WhoShouldBeInvolvedinPlanning?
Strategicplanningshouldbeconductedbyaplanningteam.Considerthefollowingguidelines
whendevelopingtheteam.(Notethatreferencetoboardsofdirectorsisinregardto
organizationsthatarecorporations.)
1. Thechiefexecutiveandboardchairshouldbeincludedintheplanninggroup,and
shoulddrivedevelopmentandimplementationoftheplan.
2. Establishclearguidelinesformembership,forexample,thosedirectlyinvolvedin
planning,thosewhowillprovidekeyinformationtotheprocess,thosewhowillreview
theplandocument,thosewhowillauthorizethedocument,etc.
3. Aprimaryresponsibilityofaboardofdirectorsisstrategicplanningtoeffectivelylead
theorganization.Therefore,insistthattheboardbestronglyinvolvedinplanning,often
includingassigningaplanningcommittee(often,thesameastheexecutivecommittee).
4. Askiftheboardmembershipisrepresentativeoftheorganizationsclienteleand
community,andiftheyarenot,theorganizationmaywanttoinvolvemore
representationinplanning.Iftheboardchairorchiefexecutivebalksatincludingmore
oftheboardmembersinplanning,thenthechiefexecutiveand/orboardchairneedsto
seriouslyconsiderhowserioustheorganizationisaboutstrategicplanning!
5. Alwaysincludeinthegroup,atleastonepersonwhoultimatelyhasauthoritytomake
strategicdecisions,forexample,toselectwhichgoalswillbeachievedandhow.
6. Ensurethatasmanystakeholdersaspossibleareinvolvedintheplanningprocess.
7. Involveatleastthosewhoareresponsibleforcomposingandimplementingtheplan.
8. Involvesomeonetoadministratetheprocess,includingarrangingmeetings,helpingto
recordkeyinformation,helpingwithflipcharts,monitoringstatusofprework,etc.
9. Considerhavingtheaboveadministratorrecordthemajorstepsintheplanningprocess
tohelptheorganizationconductitsownplanningwhentheplanisnextupdated.
Notethefollowingconsiderations:
Differenttypesofmembersmaybeneededmoreatdifferenttimesintheplanningprocess,for
example,strongboardinvolvementindeterminingtheorganizationsstrategicdirection
(mission,vision,andvalues),andthenmorestaffinvolvementindeterminingtheorganizations
strategicanalysistodetermineitscurrentissuesandgoals,andthenprimarilythestaffto
determinethestrategiesneededtoaddresstheissuesandmeetthegoals.
1. Ingeneral,wherethere'sanydoubtaboutwhetheracertainsomeoneshouldbe
involvedinplanning,it'sbesttoinvolvethem.It'sworsetoexcludesomeoneusefulthen
itistohaveoneortwoextrapeopleinplanningthisistrueinparticularwith
organizationswhereboardmembersoftendonothaveextensiveexpertiseaboutthe
organizationanditsproductsorservices.
2. Therefore,anorganizationmaybebetterofftoinvolveboardandstaffplannersasmuch
aspossibleinallphasesofplanning.Mixingtheboardandstaffduringplanninghelps
http://www.managementhelp.org/ Page13of15
boardmembersunderstandthedaytodayissuesoftheorganization,andhelpsthestaff
tounderstandthetoplevelissuesoftheorganization.
HowManyPlanningMeetingsWillWeNeed?
NumberandDurationofPlanningMeetings
1. Newplannersusuallywanttoknowhowmanymeetingswillbeneededandwhatis
neededforeachmeeting,i.e.,theywantaprocedureforstrategicplanning.Thenumber
ofmeetingsdependsonwhethertheorganizationhasdoneplanningbefore,howmany
strategicissuesandgoalstheorganizationfaces,whetherthecultureoftheorganization
prefersshortorlongmeetings,andhowmuchtimetheorganizationiswillingtocommit
tostrategicplanning.
2. Attempttocompletestrategicplanninginatmosttwotothreemonths,ormomentum
willbelostandtheplanningeffortmayfallapart.
SchedulingofMeetings
1. Haveeachmeetingatmosttwotothreeweeksapartwhenplanning.It'stooeasytolose
momentumotherwise.
2. Themostimportantfactorinaccomplishingcompleteattendancetoplanningmeetings
isevidenceofstrongsupportfromexecutives.Therefore,ensurethatexecutivesa)issue
cleardirectionthattheystronglysupportandvaluethestrategicplanningprocess,and
b)arevisiblyinvolvedintheplanningprocess.
AnExamplePlanningProcessandDesignofMeetings
Oneexampleofabriefplanningprocessisthefollowingwhichincludesfourplanningmeetings
anddevelopsatoplevelstrategicplanwhichislatertranslatedintoayearlyoperatingplanby
thestaff:
1. Planningstartswithahalfdayoralldayboardretreatandincludesintroductionsbythe
boardchairand/orchiefexecutive,theirexplanationsoftheorganization'sbenefitsfrom
strategicplanningandtheorganization'scommitmenttotheplanningprocess,the
facilitator'soverviewoftheplanningprocess,andtheboardchairsand/orchief
executivesexplanationofwhowillbeinvolvedintheplanningprocess.Intheretreat,
theorganizationmaythenbeginthenextstepinplanning,whetherthisbevisitingtheir
mission,vision,values,etc.oridentifyingcurrentissuesandgoalstowhichstrategieswill
needtobedeveloped.(Goalsareoftenrewordedissues.)Plannersareaskedtothink
aboutstrategiesbeforethenextmeeting.
2. Thenextmeetingfocusesonfinalizingstrategiestodealwitheachissue.Beforethenext
meeting,asubcommitteeischargedtodrafttheplanningdocument,whichincludes
updatedmission,vision,andvalues,andalsofinalizedstrategicissues,goals,strategies.
Thisdocumentisdistributedbeforethenextmeeting.
http://www.managementhelp.org/ Page14of15
3. Inthenextmeeting,plannersexchangefeedbackaboutthecontentandformatofthe
planningdocument.Feedbackisincorporatedinthedocumentanditisdistributed
beforethenextmeeting.
4. Thenextmeetingdoesnotrequireentireattentiontotheplan,e.g.,thedocumentis
authorizedbytheboardduringaregularboardmeeting.
Notethatintheaboveexample,varioussubcommitteesmightbechargedtogatheradditional
informationanddistributeitbeforethenextplanningmeeting.
Note,too,thatthestaffmaytakethisdocumentandestablishayearlyoperatingplanwhich
detailswhatstrategieswillbeimplementedoverthenextyear,whowilldothem,andbywhen.
Nomatterhowseriousorganizationsareaboutstrategicplanning,theyusuallyhavestrong
concernsaboutbeingabletofindtimetoattendfrequentmeetings.Thisconcerncanbe
addressedbyensuringmeetingsarewellmanaged,havingshortmeetingsasneededrather
thanhavingfewerbutlongermeetings,andhavingrealisticexpectationsfromtheplanning
project.
HowDoWeEnsureImplementationofOurNewPlan?
Afrequentcomplaintaboutthestrategicplanningprocessisthatitproducesadocumentthat
endsupcollectingdustonashelftheorganizationignoresthepreciousinformationdepicted
inthedocument.
Thefollowingguidelineswillhelpensurethattheplanisimplemented.
(Notethatreferencetoboardsofdirectorsisinregardtoorganizationsthatarecorporations.
1. Whenconductingtheplanningprocess,involvethepeoplewhowillberesponsiblefor
implementingtheplan.Useacrossfunctionalteam(representativesfromeachofthe
majororganizationsproductsorservice)toensuretheplanisrealisticandcollaborative.
2. Ensuretheplanisrealistic.ContinueaskingplanningparticipantsIsthisrealistic?Can
youreallydothis?
3. Organizetheoverallstrategicplanintosmalleractionplans,oftenincludinganaction
plan(orworkplan)foreachcommitteeontheboard.
4. Intheoverallplanningdocument,specifywhoisdoingwhatandbywhen(actionplans
areoftenreferencedintheimplementationsectionoftheoverallstrategicplan).Some
organizationsmayelecttoincludetheactionplansinaseparatedocumentfromthe
strategicplan,whichwouldincludeonlythemission,vision,values,keyissuesandgoals,
andstrategies.Thisapproachcarriessomeriskthattheboardwilllosefocusonthe
actionplans.
5. Inanimplementationsectionintheplan,specifyandclarifytheplansimplementation
rolesandresponsibilities.Besuretodetailparticularlythefirst90daysofthe
http://www.managementhelp.org/ Page15of15
implementationoftheplan.Buildinregularreviewsofstatusoftheimplementationof
theplan.
6. Translatethestrategicplansactionsintojobdescriptionsandpersonnelperformance
reviews.
7. Communicatetheroleoffollowupstotheplan.Ifpeopleknowtheactionplanswillbe
regularlyreviewed,implementerstendtodotheirjobsbeforetheyrecheckedon.
8. Besuretodocumentanddistributetheplan,includinginvitingreviewinputfromall.
9. Besurethatoneinternalpersonhasultimateresponsibilitythattheplanisenactedina
timelyfashion.
10. Thechiefexecutivessupportoftheplanisamajordrivertotheplansimplementation.
Integratetheplansgoalsandobjectivesintothechiefexecutivesperformancereviews.
11. Placehugeemphasisonfeedbacktotheboardsexecutivecommitteefromtheplanning
participants.
Considerallorsomeofthefollowingtoensuretheplanisimplemented.
1. Havedesignatedrotatingcheckerstoverify,e.g.,everyquarter,ifeachimplementer
completedtheirassignedtasks.
2. Havepairsofpeopleberesponsiblefortasks.Haveeachpartnercommittohelpingthe
othertofinishtheotherstasksontime.
CONDUCTINGSTRATEGICPLANNING
StrategicAnalysis(EnvironmentalScanandSWOT)
Afrequentcomplaintaboutstrategicplansisthattheyaremerely"todo"listsofwhatto
accomplishoverthenextfewyears.Or,otherscomplainthatstrategicplanningneverseemsto
comeinhandywhentheorganizationisfacedwithhavingtomakeadifficult,majordecision.
Or,otherscomplainthatstrategicplanningreallydoesn'thelptheorganizationfacethefuture.
Thesecomplaintsarisebecauseorganizationsfailtoconductathoroughstrategicanalysisas
partoftheirstrategicplanningprocess.Instead,plannersdecidetoplanonlyfromwhatthey
knownow.Thismakestheplanningprocessmuchlessstrategicandalotmoreguesswork.
Strategicanalysisistheheartofthestrategicplanningprocessandshouldnotbeignored.