Strategic Planning
Table of Contents
What is Strategic Planning ………………………………………...........
2
Benefits of Strategic Planning ………………………………………….
2
When Should Strategic Planning Be Done ………………………..........
3
One Way to Look at Strategic Planning …………………………..........
4
Planning in its Larger Context ………………………………………….
5
Basic Terms …………………………………………………………….
6
Overview of Typical Phases in Planning ……………………………….
6
Preparation for Strategic Planning ………………………………………
8
How to Get a Feel for Strategic Planning …………………………. …...
10
Conducting Strategic Analysis ………………………………………….
10
Basics of Writing ………………………………………………………..
11
Basics of Communicating …………………………………………. …...
13
Successful Planning and Implementation ………………………………
13
Basics of Monitoring, Evaluating and Deviating ………………….. …..
17
Sample Strategic Plan ……………………………………………... …..
20
Worksheets:
Title Page…………………………………………………... …..
23
Table of Contents ………………………………………….. …..
23
Executive Summary ……………………………………….. …..
24
Board Authorization ………………………………………..…..
25
Organizational Description ………………………………... …..
25
Mission, Vision, Values……………………………………. …..
26
Goals and Strategies ……………………………………….. …..
27
Appendices:
Action Planning …………………………………………
30
Description of Process…………………………………..
32
Analysis Data …………………………………………..
32
Committee and Executive Director Goals ………………
35
Staffing Plans …………………………………………..
39
Operating Budgets ………………………………………
40
Financial Reports (Budgets, Statements, etc.)…………..
45
Monitoring Plan …………………………………………
45
Communication Plan……………………………….........
47
...
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Strategic Planning
Adapted from Field Guide to Non-Profit Planning and Facilitation by Carter McNamara, MBA, PhD
www.mapnp.org/library/plan
What is Strategic Planning?
Simply put, strategic planning determines where an organization is going over the next year or more
and how it's going to get there. Typically, the process is organization-wide, or focused on a major
function such as a division, department or other major function.
There are a variety of perspectives, models and approaches used in strategic planning. The way that a
strategic plan is developed depends on the nature of the organization's leadership, culture of the
organization, complexity of the organization's environment, size of the organization, expertise of
planners, etc. For example, there are a variety of strategic planning models, including goals-based,
issues-based, organic, scenario (some would assert that scenario planning is more a technique than
model), etc. Goals-based planning is probably the most common and starts with focus on the
organization's mission (and vision and/or values), goals to work toward the mission, strategies to
achieve the goals, and action planning (who will do what and by when). Issues-based strategic
planning often starts by examining issues facing the organization, strategies to address those issues,
and action plans. Organic strategic planning might start by articulating the organization's vision and
values and then action plans to achieve the vision while adhering to those values. Some planners prefer
a particular approach to planning, e.g., appreciative inquiry. Some plans are scoped to one year, many
to three years, and some to five to ten years into the future. Some plans include only top-level
information and no action plans. Some plans are five to eight pages long, while others can be
considerably longer.
Quite often, an organization's strategic planners already know much of what will go into a strategic
plan (this is true for business planning, too). However, development of the strategic plan greatly helps
to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more
important than the strategic plan document, is the strategic planning process itself.
Benefits of Strategic Planning
Strategic planning serves a variety of purposes in organization, including to:
1. Clearly define the purpose of the organization and to establish realistic goals and objectives
consistent with that mission in a defined time frame within the organization’s capacity for
implementation.
2. Communicate those goals and objectives to the organization’s constituents.
3. Develop a sense of ownership of the plan.
4. Ensure the most effective use is made of the organization’s resources by focusing the resources on
the key priorities.
5. Provide a base from which progress can be measured and establish a mechanism for informed
change when needed.
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6. Bring together of everyone’s best and most reasoned efforts have important value in building a
consensus about where an organization is going.
Other reasons include that strategic planning:
7. Provides clearer focus of organization, producing more efficiency and effectiveness
8. Bridges staff and board of directors (in the case of corporations)
9. Builds strong teams in the board and the staff (in the case of corporations)
10. Provides the glue that keeps the board together (in the case of corporations)
11.Produces great satisfaction among planners around a common vision
12. Increases productivity from increased efficiency and effectiveness
13. Solves major problems
When Should Strategic Planning Be Done?
The scheduling for the strategic planning process depends on the nature and needs of the organization
and the its immediate external environment. For example, planning should be carried out frequently in
an organization whose products and services are in an industry that is changing rapidly . In this
situation, planning might be carried out once or even twice a year and done in a very comprehensive
and detailed fashion (that is, with attention to mission, vision, values, environmental scan, issues,
goals, strategies, objectives, responsibilities, time lines, budgets, etc). On the other hand, if the
organization has been around for many years and is in a fairly stable marketplace, then planning might
be carried out once a year and only certain parts of the planning process, for example, action planning
(objectives, responsibilities, time lines, budgets, etc) are updated each year. Consider the following
guidelines:
1. Strategic planning should be done when an organization is just getting started. (The strategic plan is
usually part of an overall business plan, along with a marketing plan, financial plan and
operational/management plan.)
2. Strategic planning should also be done in preparation for a new major venture, for example,
developing a new department, division, major new product or line of products, etc.
3. Strategic planning should also be conducted at least once a year in order to be ready for the coming
fiscal year (the financial management of an organization is usually based on a year-to-year, or fiscal
year, basis). In this case, strategic planning should be conducted in time to identify the organizational
goals to be achieved at least over the coming fiscal year, resources needed to achieve those goals, and
funded needed to obtain the resources. These funds are included in budget planning for the coming
fiscal year. However, not all phases of strategic planning need be fully completed each year. The full
strategic planning process should be conducted at least once every three years. As noted above, these
activities should be conducted every year if the organization is experiencing tremendous change.
4. Each year, action plans should be updated.
5. Note that, during implementation of the plan, the progress of the implementation should be reviewed
at least on a quarterly basis by the board. Again, the frequency of review depends on the extent of the
rate of change in and around the organization.
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One Way to Look at Strategic Planning
One interpretation of the major activities in strategic planning activities is that it includes:
1. Strategic Analysis
This activity can include conducting some sort of scan, or review, of the organization's environment
(for example, of the political, social, economic and technical environment). Planners carefully consider
various driving forces in the environment, for example, increasing competition, changing
demographics, etc. Planners also look at the various strengths, weaknesses, opportunities and threats
(an acronym for this activity is SWOT) regarding the organization.
(Some people take this wide look around after they've identified or updated their mission statement,
vision statement, values statement, etc. Other people conduct the analysis before reviewing the
statements.)
(Note that in the past, organizations usually referred to the phrase "long-range planning". More
recently, planners use the phrase "strategic planning". This new phrase is meant to capture the strategic
(comprehensive, thoughtful, well-placed) nature of this type of planning.)
2. Setting Strategic Direction
Planners carefully come to conclusions about what the organization must do as a result of the major
issues and opportunities facing the organization. These conclusions include what overall
accomplishments (or strategic goals) the organization should achieve, and the overall methods (or
strategies) to achieve the accomplishments. Goals should be designed and worded as much as possible
to be specific, measurable, acceptable to those working to achieve the goals, realistic, timely,
extending the capabilities of those working to achieve the goals, and rewarding to them, as well. (An
acronym for these criteria is "SMARTER".)
At some point in the strategic planning process (sometimes in the activity of setting the strategic
direction), planners usually identify or update what might be called the strategic "philosophy". This
includes identifying or updating the organization's mission, vision and/or values statements. Mission
statements are brief written descriptions of the purpose of the organization. Mission statements vary in
nature from very brief to quite comprehensive, and including having a specific purpose statement that
is part of the overall mission statement. Many people consider the values statement and vision
statement to be part of the mission statement. New businesses (for-profit or nonprofit) often work with
a state agency to formally register their new business, for example, as a corporation, association, etc.
This registration usually includes declaring a mission statement in their charter (or constitution, articles
of incorporation, etc.).
It seems that vision and values statements are increasingly used. Vision statements are usually a
compelling description of how the organization will or should operate at some point in the future and
of how customers or clients are benefiting from the organization's products and services. Values
statements list the overall priorities in how the organization will operate. Some people focus the values
statement on moral values. Moral values are values that suggest overall priorities in how people ought
to act in the world, for example, integrity, honesty, respect, etc. Other people include operational
values which suggest overall priorities for the organization, for example, to expand marketshare,
increase efficiency, etc. (Some people would claim that these operational values are really strategic
goals. Don't get hung up on wording for now.)
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3. Action Planning
Action planning is carefully laying out how the strategic goals will be accomplished. Action planning
often includes specifying objectives, or specific results, with each strategic goal. Therefore, reaching a
strategic goal typically involves accomplishing a set of objectives along the way -- in that sense, an
objective is still a goal, but on a smaller scale.
Often, each objective is associated with a tactic, which is one of the methods needed to reach an
objective. Therefore, implementing a strategy typically involves implementing a set of tactics along the
way -- in that sense, a tactic is still a strategy, but on a smaller scale.
Action planning also includes specifying responsibilities and timelines with each objective, or who
needs to do what and by when. It should also include methods to monitor and evaluate the plan, which
includes knowing how the organization will know who has done what and by when.
It's common to develop an annual plan (sometimes called the operational plan or management plan),
which includes the strategic goals, strategies, objectives, responsibilities and timelines that should be
done in the coming year. Often, organizations will develop plans for each major function, division
department, etc., and call these work plans.
Usually, budgets are included in the strategic and annual plan, and with work plans. Budgets specify
the money needed for the resources that are necessary to implement the annual plan. Budgets also
depict how the money will be spent, for example, for human resources, equipment, materials, etc.
(Note there are several different kinds of budgets. Operating budgets are usually budgets associated
with major activities over the coming year. Project budgets are associated with major projects, for
example, constructing a building, developing a new program or product line, etc. Cash budgets depict
where cash will be spent over some near term, for example, over the next three months (this is very
useful in order to know if you can afford bills that must be paid soon). Capital budgets are associated
with operating some major asset, for example, a building, automobiles, furniture, computers, etc.
Planning in its Larger Context -- Working Backwards Through Any
"System"
Before we jump into the typical phases in the standard "generic" planning process, let's stand back and
minute and briefly look at the role of planning in its overall context. This is more than an academic
exercise -- understanding this overall context for planning can greatly help the reader to design and
carry out the planning process in almost planning application.
One of the most common sets of activities in the management is planning. Very simply put, planning is
setting the direction for something -- some system -- and then working to ensure the system follows
that direction. Systems have inputs, processes, outputs and outcomes. To explain, inputs to the system
include resources such as raw materials, money, technologies and people. These inputs go through a
process where they're aligned, moved along and carefully coordinated, ultimately to achieve the goals
set for the system. Outputs are tangible results produced by processes in the system, such as products
or services for consumers. Another kind of result is outcomes, or benefits for consumers, e.g., jobs for
workers, enhanced quality of life for customers, etc. Systems can be the entire organization, or its
departments, groups, processes, etc. Whether the system is an organization, department, business,
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project, etc., the process of planning includes planners working backwards through the system. They
start from the results (outcomes and outputs) they prefer and work backwards through the system to
identify the processes needed to produce the results. Then they identify what inputs (or resources) are
needed to carry out the processes.
Quick Look at Some Basic Terms
Planning typically includes use of the following basic terms.
NOTE: It's not critical to grasp completely accurate definitions of each of the following terms. It's
more important for planners to have a basic sense for the difference between goals/objectives (results)
and strategies/tasks (methods to achieve the results).
Goals
Goals are specific accomplishments that must be accomplished in total, or in some combination, in
order to achieve some larger, overall result preferred from the system, for example, the mission of an
organization. (Going back to our reference to systems, goals are outputs from the system.)
Strategies or Activities
Strategies are the methods or processes required in total, or in some combination, to achieve the goals.
(Going back to our reference to systems, strategies are processes in the system.)
Objectives
Objectives are specific accomplishments that must be accomplished in total, or in some combination,
to achieve the goals in the plan. Objectives are usually "milestones" along the way when implementing
the strategies.
Tasks
Particularly in small organizations, people are assigned various tasks required to implement the plan. If
the scope of the plan is very small, tasks and activities are often essentially the same.
Resources (and Budgets)
Resources include the people, materials, technologies, money, etc., required to implement the
strategies or processes. The costs of these resources are often depicted in the form of a budget. (Going
back to our reference to systems, resources are input to the system.)
Basic Overview of Typical Phases in Planning
Whether the system is an organization, department, business, project, etc., the basic planning process
typically includes similar nature of activities carried out in similar sequence. The phases are carried out
carefully or -- in some cases -- intuitively, for example, when planning a very small, straightforward
effort. The complexities of the various phases (and their duplication throughout the system) depend on
the scope of the system. For example, in a large corporation, the following phases would be carried out
in the corporate offices, in each division, in each department, in each group, etc.
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NOTE: Different groups of planners might have different names for the following activities and groups
them differently. However, the nature of the activities and their general sequence remains the same.
NOTE: The following are typical phases in planning. They do not comprise the complete, ideal
planning process.
1. Reference Overall Singular Purpose ("Mission") or Desired Result from System
During planning, planners have in mind (consciously or unconsciously) some overall purpose or result
that the plan is to achieve. For example, during strategic planning, it's critical to reference the mission,
or overall purpose, of the organization.
2. Take Stock Outside and Inside the System
This "taking stock" is always done to some extent, whether consciously or unconsciously. For
example, during strategic planning, it's important to conduct an environmental scan. This scan usually
involves considering various driving forces, or major influences, that might effect the organization.
3. Analyze the Situation
For example, during strategic planning, planners often conduct a "SWOT analysis". (SWOT is an
acronym for considering the organization's strengths and weaknesses, and the opportunities and threats
faced by the organization.) During this analysis, planners also can use a variety of assessments, or
methods to "measure" the health of systems.
4. Establish Goals
Based on the analysis and alignment to the overall mission of the system, planners establish a set of
goals that build on strengths to take advantage of opportunities, while building up weaknesses and
warding off threats.
5. Establish Strategies to Reach Goals
The particular strategies (or methods to reach the goals) chosen depend on matters of affordability,
practicality and efficiency.
6. Establish Objectives Along the Way to Achieving Goals
Objectives are selected to be timely and indicative of progress toward goals.
7. Associate Responsibilities and Time Lines with Each Objective
Responsibilities are assigned, including for implementation of the plan, and for achieving various goals
and objectives. Ideally, deadlines are set for meeting each responsibility.
8. Write and Communicate a Plan Document
The above information is organized and written in a document which is distributed around the system.
9. Acknowledge Completion and Celebrate Success
This critical step is often ignored -- which can eventually undermine the success of many of your
future planning efforts. The purpose of a plan is to address a current problem or pursue a development
goal. It seems simplistic to assert that you should acknowledge if the problem was solved or the goal
met. However, this step in the planning process is often ignored in lieu of moving on the next problem
to solve or goal to pursue. Skipping this step can cultivate apathy and skepticism -- even cynicism -- in
your organization. Don't skip this step.
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Preparation for Strategic Planning
Guidelines to Keep Perspective During Planning
Many managers spend most of their time "fighting fires" in the workplace. -- their time is spent
realizing and reacting to problems. For these managers -- and probably for many of us -- it can be very
difficult to stand back and take a hard look at what we want to accomplish and how we want to
accomplish it. We're too buy doing what we think is making progress. However, one of the major
differences between new and experienced managers is the skill to see the broad perspective, to take the
long view on what we want to do and how we're going to do it. One of the best ways to develop this
skill is through ongoing experience in strategic planning. The following guidelines may help you to get
the most out of your strategic planning experience.
1. The real benefit of the strategic planning process is the process, not the plan document.
2. There is no "perfect" plan. There's doing your best at strategic thinking and implementation, and
learning from what you're doing to enhance what you're doing the next time around.
3. The strategic planning process is usually not an "aha!" experience. It's like the management process
itself -- it's a series of small moves that together keep the organization doing things right as it heads in
the right direction.
4. In planning, things usually aren't as bad as you fear nor as good as you'd like.
5. Start simple, but start!
Need Consultant or Facilitator to Help You With Planning?
You may want to consider using a facilitator from outside of your organization if:
1. Your organization has not conducted strategic planning before.
2. For a variety of reasons, previous strategic planning was not deemed to be successful.
3. There appears to be a wide range of ideas and/or concerns among organization
members about strategic planning and current organizational issues to be addressed
in the plan.
4. There is no one in the organization that members feel has sufficient facilitation skills.
5. No one in the organization feels committed to facilitating strategic planning for the
organization.
6. Leaders believe that an inside facilitator will either inhibit participation from others or
will not have the opportunity to fully participate in planning themselves.
7. Leaders want an objective voice, i.e., someone who is not likely to have strong
predispositions about the organization's strategic issues and ideas.
Who Should Be Involved in Planning?
Strategic planning should be conducted by a planning team.
Consider the following guidelines when developing the team.
(Note that reference to boards of directors is in regard to organizations that are corporations.)
1. The chief executive and board chair should be included in the planning group, and should drive
development and implementation of the plan.
2. Establish clear guidelines for membership, for example, those directly involved in planning,
those who will provide key information to the process, those who will review the plan document, those
who will authorize the document, etc.
3. A primary responsibility of a board of directors is strategic planning to effectively lead the
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organization. Therefore, insist that the board be strongly involved in planning, often including
assigning a planning committee (often, the same as the executive committee).
4. Ask if the board membership is representative of the organization’s clientele and community,
and if they are not, the organization may want to involve more representation in planning. If the board
chair or chief executive balks at including more of the board members in planning, then the chief
executive and/or board chair needs to seriously consider how serious the organization is about strategic
planning!
5. Always include in the group, at least one person who ultimately has authority to make strategic
decisions, for example, to select which goals will be achieved and how.
6. Ensure that as many stakeholders as possible are involved in the planning process.
7. Involve at least those who are responsible for composing and implementing the plan.
8. Involve someone to administrate the process, including arranging meetings, helping to record
key information, helping with flipcharts, monitoring status of prework, etc.
9. Consider having the above administrator record the major steps in the planning process to help
the organization conduct its own planning when the plan is next updated.
Note the following considerations:
10. Different types of members may be needed more at different times in the planning process, for
example, strong board involvement in determining the organization’s strategic direction (mission,
vision, and values), and then more staff involvement in determining the organization’s strategic
analysis to determine its current issues and goals, and then primarily the staff to determine the
strategies needed to address the issues and meet the goals.
11. In general, where there's any doubt about whether a certain someone should be involved in
planning, it's best to involve them. It's worse to exclude someone useful then it is to have one or two
extra people in planning -- this is true in particular with organizations where board members often do
not have extensive expertise about the organization and its products or services.
12. Therefore, an organization may be better off to involve board and staff planners as much as
possible in all phases of planning. Mixing the board and staff during planning helps board members
understand the day-to-day issues of the organization, and helps the staff to understand the top-level
issues of the organization.
How Many Planning Meetings Will We Need?
Number and Duration:
1. New planners usually want to know how many meetings will be needed and what is needed for each
meeting, i.e., they want a procedure for strategic planning. The number of meetings depends on
whether the organization has done planning before, how many strategic issues and goals the
organization faces, whether the culture of the organization prefers short or long meetings, and how
much time the organization is willing to commit to strategic planning.
2. Attempt to complete strategic planning in at most two to three months, or momentum will be lost
and the planning effort may fall apart.
Scheduling of Meetings:
1. Have each meeting at most two to three weeks apart when planning. It's too easy to lose momentum
otherwise.
2. The most important factor in accomplishing complete attendance to planning meetings is evidence
of strong support from executives. Therefore, ensure that executives a) issue clear direction that they
strongly support and value the strategic planning process, and b) are visibly involved in the planning
process.
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An Example Planning Process and Design of Meetings
One example of a brief planning process is the following which includes four planning meetings and
develops a top-level strategic plan which is later translated into a yearly operating plan by the staff:
1. Planning starts with a half-day or all-day board retreat and includes introductions by the board
chair and/or chief executive, their explanations of the organization's benefits from strategic planning
and the organization's commitment to the planning process, the facilitator's overview of the planning
process, and the board chairs and/or chief executive’s explanation of who will be involved in the
planning process. In the retreat, the organization may then begin the next step in planning, whether this
is visiting their mission, vision, values, etc. or identifying current issues and goals to which strategies
will need to be developed. (Goals are often reworded issues.) Planners are asked to think about
strategies before the next meeting.
2. The next meeting focuses on finalizing strategies to deal with each issue. Before the next meeting,
a subcommittee is charged to draft the planning document, which includes updated mission, vision,
and values, and also finalized strategic issues, goals, strategies. This document is distributed before the
next meeting.
3. In the next meeting, planners exchange feedback about the content and format of the planning
document. Feedback is incorporated in the document and it is distributed before the next meeting.
4. The next meeting does not require entire attention to the plan, e.g., the document is authorized by
the board during a regular board meeting.
5. Note that in the above example, various subcommittees might be charged to gather additional
information and distribute it before the next planning meeting.
6. Note, too, that the staff may take this document and establish a yearly operating plan which details
what strategies will be implemented over the next year, who will do them, and by when.
7. No matter how serious organizations are about strategic planning, they usually have strong
concerns about being able to find time to attend frequent meetings. This concern can be addressed by
ensuring meetings are well managed, having short meetings as needed rather than having fewer but
longer meetings, and having realistic expectations from the planning project.
How to Get a Feel for Strategic Planning -- There's No Perfect Way to
Do It
Planning typically includes several major activities or steps in the process. Different people often have
different names for these major activities. They might even conduct them in a different order. Strategic
planning often includes use of several key terms. Different people might use apply different definitions
for these terms, as well.
Don't be concerned about finding the "perfect way" to conduct strategic planning. You'll soon notice
that each writer seems to have their own particularly interpretation of the activities in strategic
planning. Once you start strategic planning, you'll soon find your own particular approach to carrying
out the process.
Conducting Strategic Analysis (Environmental Scan and SWOT)
A frequent complaint about strategic plans is that they are merely "to-do" lists of what to accomplish
over the next few years. Or, others complain that strategic planning never seems to come in handy
when the organization is faced with having to make a difficult, major decision. Or, others complain
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that strategic planning really doesn't help the organization face the future. These complaints arise
because organizations fail to conduct a thorough strategic analysis as part of their strategic planning
process. Instead, planners decide to plan only from what they know now. This makes the planning
process much less strategic and a lot more guesswork. Strategic analysis is the heart of the strategic
planning process and should not be ignored.
(Note that some planners prefer to identify/update the mission, vision and values statements before
conducting the strategic analysis. Others prefer to identify/update these items after the strategic
analysis. In this library, these items are addressed as part of the next major section "Setting Strategic
Direction".)
The Environmental Scan
An environmental scan is conducted to collect data to answer questions about the present and future of
the school district.
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Your environmental scan develops a common perception.
Your environmental scan identifies strengths, weaknesses, trends and conditions.
Your environmental scan draws on internal and external information.
Your environmental scan is a key on-going process for internal and external honesty and
openness to changing conditions.
Tools for Environmental Scanning
There are many approaches to environmental scanning, including:
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Surveys
Questionnaires
Focus Groups
Open Forums
SWOT
1. Strengths - Association characteristics that allow the coalition to take advantage of
opportunities or reduce the impact of barriers.
2. Weaknesses - Association characteristics that could stand in the way of the coalition taking
advantage of opportunities or reducing the impact of barriers.
3. Opportunities - Factors outside the association that allow it to take action to.
4. Threats - Factors outside the association that stand in the way of its efforts.
Basics of Writing a Strategic Plan
This activity is usually conducted near the overall process of strategic planning.
Writing the Plan
1. Have a small number of people write the first draft of the plan. An outside facilitator (someone hired
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from outside of the organization to facilitate the planning process) should not be the one who writes
the plan.
2. Don’t worry about having every last detail in the first draft.
3. The draft should be presented to the board of directors (if applicable) and upper management for
review and approval. It's not unusual for the board and/or top management of large organizations to
provide major input primarily to the contents in the body of the document, that is, the mission and
vision and values statements, and the goals and strategies. Employees and other staff often provide the
major input to the action planning portion, including the objectives, responsibilities and timelines for
completion of objectives.
Format of the Plan
Note: It is wise to distribute copies of the plan to major stakeholders (investors/funders, trade
associations, etc). Therefore, you should organize the format of the plan such that the body of the plan
can be sent outside of the organization and the appendices can include the more confidential and detailoriented documents -- documents which also tend to change a lot. The format of the plan should fit the
culture and preferences of the organization.
Consider the following sections:
(The following sections might be viewed as the "body" of the plan document.)
1) Executive Summary -- This is written to the scope and level of content that an “outsider” can read
the summary and grasp the mission of the organization, its overall major issues and goals, and key
strategies to reach the goals
2) Authorization -- This page includes all of the necessary signatures from the board of directors (if
applicable) and other top management designating that they approve the contents of, and support
implementation of, the plan
3) Organizational Description -- This section describes, for example, the beginnings and history of the
organization, its major products and services, highlights and accomplishments during the history of
organization, etc.
4) Mission, Vision and Values Statements -- These statements describe the strategic "philosophy" of
the organization
5) Goals and Strategies -- Lists all of the major strategic goals and associated strategies identified
during the strategic planning process.
Appendices
(The appendices often include information that is somewhat confidential, detail-oriented and/or tends
to change a lot.)
A) Action Planning -- Specifies objectives, responsibilities and timelines for completion of objectives.
B) Description of Strategic Planning Process Used -- Describes the process used to develop the plan,
who was involved, the number of meetings, any major lessons learned to improve planning the next
time around, etc.
C) Strategic Analysis Data -- Includes information generated during the external analysis (for example,
environmental scan) and internal analysis (for example, SWOT analysis), and includes listing of
strategic issues identified during the these analyses.
D) Goals for Board and Chief Executive Officer -- Goals of the board and CEO should be directly
aligned with goals identified during strategic planning. This appendix will list goals for the board and
can include recommendations for redesigning board committees to be associated with strategic goals.
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The appendix also lists goals for the CEO -- these can be used (along with the CEO job description) to
form the basis for performance evaluations of the CEO.
E) Budget Planning -- Depicts the resources and funding needed to obtain and use the resources needed
to achieve the strategic goals. Budgets are often depicted for each year of the term of the strategic plan.
F) Operating Plan -- Describes the major goals and activities to be accomplished over the coming fiscal
year.
G) Financial Reports -- Includes last year's budget (with estimated expenses and the actual amounts
spent), this year's current budget (again with estimated amounts and actual amounts spent), a balance
sheet (or in the case of nonprofits, a statement of financial position), income statement (or in the case
of nonprofit, a statement of financial activities), etc.
H) Monitoring and Evaluation of Plan -- Include criteria for monitoring and evaluation, and the
responsibilities and frequencies of monitoring the implementation of the plan.
I) Communication of Plan -- Describe the actions that will be taken to communicate the plan and/or
portions of it, and to whom.
Basics of Communicating a Strategic Plan
Note that certain groups of stakeholders might get complete copies of the plan, including appendices,
while other groups (usually outside of the organization) might receive only the body of the plan
without its appendices.
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It's amazing
how even the newest staff member gains quick context, appreciation, and meaning from review of the
strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider
giving each employee a card with the statements (or highlights from them) on the card.
4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials
(brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade
associations, potential collaborators, vendors/suppliers, etc.
Successful Planning and Implementation
A common failure in many kinds of planning is that the plan is never really implemented. Instead, all
focus is on writing a plan document. Too often, the plan sits collecting dust on a shelf. Therefore, most
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of the following guidelines help to ensure that the planning process is carried out completely and is
implemented completely -- or, deviations from the intended plan are recognized and managed
accordingly.
Involve the Right People in the Planning Process
Going back to the reference to systems, it's critical that all parts of the system continue to exchange
feedback in order to function effectively. This is true no matter what type of system. When planning,
get input from everyone who will responsible to carry out parts of the plan, along with representative
from groups who will be affected by the plan. Of course, people also should be involved if they will be
responsible for reviewing and authorizing the plan.
Write Down the Planning Information and Communicate it Widely
New managers, in particular, often forget that others don't know what these managers know. Even if
managers do communicate their intentions and plans verbally, chances are great that others won't
completely hear or understand what the manager wants done. Also, as plans change, it's extremely
difficult to remember who is supposed to be doing what and according to which version of the plan.
Key stakeholders (employees, management, board members, funders, investor, customers, clients, etc.)
may request copies of various types of plans. Therefore, it's critical to write plans down and
communicate them widely.
Goals and Objectives Should Be SMARTER
SMARTER is an acronym, that is, a word composed by joining letters from different words in a phrase
or set of words. In this case, a SMARTER goal or objective is:
Specific:
For example, it's difficult to know what someone should be doing if they are to
pursue the goal to "work harder". It's easier to recognize "Write a paper".
Measurable:
It's difficult to know what the scope of "Writing a paper" really is. It's easier to
appreciate that effort if the goal is "Write a 30-page paper".
Acceptable:
If I'm to take responsibility for pursuit of a goal, the goal should be acceptable to
me. For example, I'm not likely to follow the directions of someone telling me to
write a 30-page paper when I also have to five other papers to write. However, if
you involve me in setting the goal so I can change my other commitments or
modify the goal, I'm much more likely to accept pursuit of the goal as well.
Realistic:
Even if I do accept responsibility to pursue a goal that is specific and measurable,
the goal won't be useful to me or others if, for example, the goal is to "Write a 30page paper in the next 10 seconds".
Time frame:
It may mean more to others if I commit to a realistic goal to "Write a 30-page
paper in one week". However, it'll mean more to others (particularly if they are
planning to help me or guide me to reach the goal) if I specify that I will write one
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page a day for 30 days, rather than including the possibility that I will write all 30
pages in last day of the 30-day period.
Extending:
The goal should stretch the performer's capabilities. For example, I might be more
interested in writing a 30-page paper if the topic of the paper or the way that I
write it will extend my capabilities.
Rewarding:
I'm more inclined to write the paper if the paper will contribute to an effort in
such a way that I might be rewarded for my effort.
Build in Accountability (Regularly Review Who's Doing What and By When?)
Plans should specify who is responsible for achieving each result, including goals and objectives.
Dates should be set for completion of each result, as well. Responsible parties should regularly review
status of the plan. Be sure to have someone of authority "sign off" on the plan, including putting their
signature on the plan to indicate they agree with and support its contents. Include responsibilities in
policies, procedures, job descriptions, performance review processes, etc.
Note Deviations from the Plan and Replan Accordingly
It's OK to deviate from the plan. The plan is not a set of rules. It's an overall guideline. As important as
following the plan, is noticing deviations and adjusting the plan accordingly.
Evaluate Planning Process and the Plan
During the planning process, regularly collect feedback from participants. Do they agree with the
planning process? If not, what don't they like and how could it be done better? In large, ongoing
planning processes (such as strategic planning, business planning, project planning, etc.), it's critical to
collect this kind of feedback regularly.
During regular reviews of implementation of the plan, assess if goals are being achieved or not. If not,
were goals realistic? Do responsible parties have the resources necessary to achieve the goals and
objectives? Should goals be changed? Should more priority be placed on achieving the goals? What
needs to be done?
Finally, take 10 minutes to write down how the planning process could have been done better. File it
away and read it the next time you conduct the planning process.
Recurring Planning Process is at Least as Important as Plan Document
Far too often, primary emphasis is placed on the plan document. This is extremely unfortunate because
the real treasure of planning is the planning process itself. During planning, planners learn a great deal
from ongoing analysis, reflection, discussion, debates and dialogue around issues and goals in the
system. Perhaps there is no better example of misplaced priorities in planning than in business ethics.
Far too often, people put emphasis on written codes of ethics and codes of conduct. While these
documents certainly are important, at least as important is conducting ongoing communications around
these documents. The ongoing communications are what sensitize people to understanding and
following the values and behaviors suggested in the codes.
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Nature of the Process Should Be Compatible to Nature of Planners
A prominent example of this type of potential problem is when planners don't prefer the "top down" or
"bottom up", "linear" type of planning (for example, going from general to specific along the process
of an environmental scan, SWOT analysis, mission/vision/values, issues and goals, strategies,
objectives, timelines, etc.) There are other ways to conduct planning.
Critical -- But Frequently Missing Step -- Acknowledgement and Celebration of Results
It's easy for planners to become tired and even cynical about the planning process. One of the reasons
for this problem is very likely that far too often, emphasis is placed on achieving the results. Once the
desired results are achieved, new ones are quickly established. The process can seem like having to
solve one problem after another, with no real end in sight. Yet when one really thinks about it, it's a
major accomplishment to carefully analyze a situation, involve others in a plan to do something about
it, work together to carry out the plan and actually see some results. So acknowledge this -- celebrate
your accomplishment!
Implementation Guidelines
(Note that reference to boards of directors is in regard to organizations that are corporations.
1. When conducting the planning process, involve the people who will be responsible for
implementing the plan. Use a cross-functional team (representatives from each of the major
organization’s products or service) to ensure the plan is realistic and collaborative.
2. Ensure the plan is realistic. Continue asking planning participants “Is this realistic? Can you really
do this?”
3. Organize the overall strategic plan into smaller action plans, often including an action plan (or work
plan) for each committee on the board.
4. In the overall planning document, specify who is doing what and by when (action plans are often
referenced in the implementation section of the overall strategic plan). Some organizations may elect
to include the action plans in a separate document from the strategic plan, which would include only
the mission, vision, values, key issues and goals, and strategies. This approach carries some risk that
the board will lose focus on the action plans.
5. In an implementation section in the plan, specify and clarify the plan’s implementation roles and
responsibilities. Be sure to detail particularly the first 90 days of the implementation of the plan. Build
in regular reviews of status of the implementation of the plan.
6. Translate the strategic plan’s actions into job descriptions and personnel performance reviews.
7. Communicate the role of follow-ups to the plan. If people know the action plans will be regularly
reviewed, implementers tend to do their jobs before they’re checked on.
8. Be sure to document and distribute the plan, including inviting review input from all.
9. Be sure that one internal person has ultimate responsibility that the plan is enacted in a timely
fashion.
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10. The chief executive’s support of the plan is a major driver to the plan’s implementation. Integrate
the plan’s goals and objectives into the chief executive’s performance reviews.
11. Place huge emphasis on feedback to the board’s executive committee from the planning
participants.
Consider all or some of the following to ensure the plan is implemented.
12. Have designated rotating “checkers” to verify, e.g., every quarter, if each implementer completed
their assigned tasks.
13. Have pairs of people be responsible for tasks. Have each partner commit to helping the other to
finish the other’s tasks on time.
Basics of Monitoring, Evaluating and
Deviating from the Strategic Plan
Great Value from Monitoring and Evaluation
As stated earlier, too many strategic plans end up collecting dust on a shelf. Monitoring and evaluating
the planning activities and status of implementation of the plan is -- for many organizations -- as
important as identifying strategic issues and goals. One advantage of monitoring and evaluation is to
ensure that the organization is following the direction established during strategic planning.
The above advantage is obvious. Adults tend to learn best when they're actually doing something with
new information and materials and then they're continuing to reflect on their experiences. You can
learn a great deal about your organization and how to manage it by continuing to monitor the
implementation of strategic plans.
Note that plans are guidelines. They aren't rules. It's OK to deviate from a plan. But planners should
understand the reason for the deviations and update the plan to reflect the new direction.
Responsibilities for Monitoring and Evaluation
The strategic plan document should specify who is responsible for the overall implementation of the
plan, and also who is responsible for achieving each goal and objective.
The document should also specify who is responsible to monitor the implementation of the plan and
made decisions based on the results. For example, the board might expect the chief executive to
regularly report to the full board about the status of implementation, including progress toward each of
the overall strategic goals. In turn, the chief executive might expect regular status reports from middle
managers regarding the status toward their achieving the goals and objectives assigned to them.
Key Questions While Monitoring and Evaluating Status of Implementation of the Plan
1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and
communicate the progress. If not, then consider the following questions.
2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?
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3. Should the deadlines for completion be changed (be careful about making these changes -know why efforts are behind schedule before times are changed)?
4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve
the goals?
5. Are the goals and objectives still realistic?
6. Should priorities be changed to put more focus on achieving the goals?
7. Should the goals be changed (be careful about making these changes -- know why efforts are
not achieving the goals before changing the goals)?
8. What can be learned from our monitoring and evaluation in order to improve future planning
activities and also to improve future monitoring and evaluation efforts?
Frequency of Monitoring and Evaluation
The frequency of reviews depends on the nature of the organization and the environment in which it's
operating. Organizations experiencing rapid change from inside and/or outside the organization may
want to monitor implementation of the plan at least on a monthly basis.
Boards of directors should see status of implementation at least on a quarterly basis.
Chief executives should see status at least on a monthly basis.
Reporting Results of Monitoring and Evaluation
Always write down the status reports. In the reports, describe:




Answers to the above key questions while monitoring implementation.
Trends regarding the progress (or lack thereof) toward goals, including which goals and
objectives
Recommendations about the status
Any actions needed by management
Deviating from Plan
It’s OK do deviate from the plan. The plan is only a guideline, not a strict roadmap which must be
followed.
Usually the organization ends up changing its direction somewhat as it proceeds through the coming
years. Changes in the plan usually result from changes in the organization’s external environment
and/or client needs result in different organizational goals, changes in the availability of resources to
carry out the original plan, etc.
The most important aspect of deviating from the plan is knowing why you’re deviating from the plan,
i.e., having a solid understanding of what’s going on and why.
Changing the Plan
Be sure some mechanism is identified for changing the plan, if necessary. For example, regarding
changes, write down:


What is causing changes to be made?
Why the changes should be made (the "why" is often different than "what is causing" the
changes).
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
The changes to made, including to goals, objectives, responsibilities and timelines.
Manage the various versions of the plan (including by putting a new date on each new version of the
plan).
Always keep old copies of the plan.
Always discuss and write down what can be learned from recent planning activity to make the next
strategic planning activity more efficient.
A Note About Celebration
I've been involved with many strategic planning activities. Rarely, when a plan is completed, do
organizations really acknowledge the success they have achieved. Instead, planners are often so
focused on "progress" and problem solving, that they're too eager to move on to the next version of the
plan.
Celebration is as important as accomplishing objectives -- maybe more. Without a sense of closure,
acknowledgement and fulfillment from a job well done, the next planning cycle becomes a grind.
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Sample: Strategic Plan for AnyBiz, Inc
This document sets out a strategic plan for AnyBiz Inc. It reviews strengths, weaknesses, threats and
opportunities; presents a series of statements relating to AnyBiz Inc.'s vision, mission, values and
objectives; and sets out its proposed strategies and goals.
Strengths, Weaknesses, Opportunities & Threats (SWOT)
This strategic plan addresses the following key strengths, weaknesses, threats and opportunities for
AnyBiz Inc:
Strengths:
R and D almost complete
Basis for strong management team
Key first major customer acquired
Initial product can evolve into range of
offerings
Located near a major centre of
excellence
Very focused management/staff
Well-rounded and managed business
Threats:
Major player may enter targeted
market segment
New technology may make products
obsolescent
Economic slowdown could reduce
demand
Euro/Yen may move against $
Market may become price sensitive
Market segment's growth could attract
major competition
Weaknesses:
Over dependent on borrowings Insufficient cash resources
Board of Directors is too narrow
Lack of awareness amongst
prospective customers
Need to relocate to larger premises
Absence of strong sales/marketing
expertise
Overdependence on few key staff
Emerging new technologies may move
market in new directions
Opportunities:
Market segment is poised for rapid
growth
Export markets offer great potential
Distribution channels seeking new
products
Scope to diversify into related market
segments
Vision
The promoters' vision of AnyBiz Inc in 3-4 year's time is:
AnyBiz will be operating from a xxx sq. ft. unit near xxx Town. It will have annualized sales of
$xxx and be profitable. It will employ xxx people mainly engaged in R and D, marketing,
support and admin. AnyBiz will offer xxx core products and provide added-value services to a
large customer base throughout the xxx market segments and in xxx countries overseas.
AnyBiz's offerings will be technically advanced and offer many clear-cut advantages and
improvements over competitors' possible offerings. AnyBiz will continue to expand through
organic growth and acquisitions in related technology/market segments. It will have recently
received mezzanine finance prior to a public offering.
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Mission Statement
The central purpose and role of AnyBiz Inc is defined as:
AnyBiz designs, develops and markets advanced systems for specialist data capture and transaction
processing management. These web-based systems work with specialist hardware supplied by major
integrators. They are sold to small, medium and large-sized companies within the xxx industries for a
range of specialist applications. AnyBiz's systems are distinguished from competition by their
sophisticated interfaces, scalability and ease of modification and are extensively patented. Sales are
made directly and through major distributors/OEMs in the home market and overseas. AnyBiz operates
in accordance with the highest standards in all relationships with customers, suppliers, environment and
the community.
Corporate Values
The corporate values governing AnyBiz Inc.'s development will include the following:
AnyBiz operates in accordance with the highest standards in all relationships with customers, suppliers,
environment and the community.
AnyBiz fosters a climate which encourages innovation and diligence amongst staff and rewards
accordingly.
Business Objectives
Longer term business objectives of AnyBiz Inc are summarized as:


To expand the business aggressively and offer above-average returns to
shareholders.
To become the leading, innovative systems company within the xx market
segments.
Key Strategies
The following critical strategies will be pursued by AnyBiz Inc:
1.
2.
3.
4.
5.
6.
7.
8.
Accelerate product launches by strengthening R and D team
Extend links with key technology centres
Raise additional venture capital
Expand senior management team in sales/marketing
Recruit non-executive directors
Strengthen human resources function and introduce share options for staff
Appoint advisers for intellectual property and finance
Seek new market segments/applications for products
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The following important strategies will also be followed:
1.
2.
3.
4.
5.
6.
7.
Locate new premises adjacent to xxx
Commission assessments of key markets
Start participating in trade shows and missions
Develop overseas market entry plans
Pursue strategic alliances with complementary players
Strengthen web presence and promote
Seek new market segments/applications for products
Major Goals
The following key targets will be achieved by AnyBiz Inc over the next 3-4 years:







Achieve sales of $xx million by 200X
Report annualized profits of $xx million in 200X
Secure xx% of the xx market segment by 200X
Become largest supplier of xxx systems in xx countries within xx years
Undertake an IPO by 200X
Employ xxx people including xx% technically qualified by 200X
Have sales offices or agents in xx key markets before 200X
Strategic Action Programs
The following strategic action programs will be implemented:
1. CEO: Prepare comprehensive business plan and develop contacts to raise VC
within 6-9 months.
2. CFO: Recruit Marketing Director and other key staff for marketing/sales and HR
Director within 3-4 months.
3. TechDir: Review R and D resources and scope for technical alliances - expand
with arrival of VC.
4. Board: Expand BoD to include further independent financial, technical and
industrial expertise prior to seeking VC.
5. All: Develop and implement accelerated market entry and development plans.
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Framework for a
Basic Nonprofit Strategic Plan Document
Directions
The following framework will guide you through completion of your basic strategic plan document.
Each section includes directions. Many sections include examples, as well. Readers are encouraged to
work with a planning team in their organization to fill in this framework. After completing this
framework, readers can move information from the framework to a more suitable document to be the
final version of the strategic plan document, if desired.
[NAME OF YOUR NONPROFIT ORGANIZATION]
STRATEGIC PLAN
for the period
[insert dates]
[insert date that plan was authorized by board by directors]
TABLE OF CONTENTS
Executive Summary
Board Authorization of Strategic Plan
Organizational Description
Mission, Vision and Values
Goals and Strategies
Appendices
A - Action Planning (objectives, responsibilities and time lines)
B - Description of Strategic Planning Process Used
C - Strategic Analysis Data (External Analysis, Internal Analysis & List of Issues)
D - Goals for Board Committees and Chief Executive Officer
E - Staffing Plans
F - Operating Budgets
G- Financial Reports (Budgets, Statements, etc.)
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H - Monitoring and Evaluation of Plan (Criteria, Responsibilities and Findings)
I - Communicating the Plan
Executive Summary
(Complete this section after you have finished the other sections of the plan document. The Executive
Summary describes plan highlights to funders, board members, employees and other skakeholders. The
Executive Summary should be one to two pages in length at most. It should include very concise
descriptions of the most important information from the strategic planning process and its results. For
example, include very brief descriptions of what's in this document and how to use the document,
strategic issues and goals, when the plan will be implemented, how the implementation will be
monitored and by whom, and any specific actions required by upper management.)
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Board Authorization of Strategic Plan
(Authorization designates board member's approval of the strategic direction and action plans
described in this strategic plan document.)
Name of Board Member: ______________________________ Date Signed: _________
Name of Board Member: ______________________________ Date Signed: _________
Name of Board Member: ______________________________ Date Signed: _________
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Organizational Description
This section should include information that will be informative, particularly to readers from outside
of the organization.
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


Brief overview of history of organization
Description of major programs and services
Overview of major accomplishments and other highlights during history of organization
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Mission Statement
The mission statement is a concise description of the purpose of the organization. It answers the
question: Why does our organization exist? When answering this question, include the nature of your
services, groups of clients that you serve and how you serve them. The mission statement should
provide continued direction and focus to your plans, programs and services from your organization.
Post your mission statement throughout your nonprofit, on all stationery, in your plan documents, etc.
Example: "To support individual and community development in Minneapolis by ensuring all adults
between the ages of 18 and 65 achieve gainful employment in the community."
Your Mission Statement:
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Vision Statement
The vision statement is an inspirational, compelling answer to the question: What do you hope for your
clients? Ideally, it should be written in a compelling, inspirational fashion. Post your vision statement
throughout your nonprofit.
Example: "Every adult in Minneapolis is fulfilled from employment that contributes to their individual
and community development."
Your Vision Statement:
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Values Statement
The values statement depicts the priorities in how the organization carries out activities with
stakeholders. The board and chief executive should regularly reference the values statement to provide
guidance to the nature of how the nonprofit and its programs should operate. Example: "We believe
that:



Employment provides opportunity for adults to develop community and themselves.
Every person deserves opportunity for gainful employment.
Gainful employment of all citizens is a responsibility of all citizens."
Your Values Statement:
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Goals and Strategies
Your Goals Should Be "SMARTER"
When you design and word your goals, be sure they are "SMARTER", that is, specific, measurable,
acceptable to the people working to achieve the goals, realistic, timely, extending the capabilities of
those working to achieve the goals and rewarding to them. Don't worry so much about having to
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specify goals to be exactly "correct". Your goals are likely to be modified somewhat as you give more
attention later on to program design.
You Will Have Organization-Wide and Program/Service-Specific Goals
You will probably have organization-wide goals, for example, goals in regard to building and running
your nonprofit, for example, board development, staffing, getting a new building, etc. You also will
probably have service goals that directly in regard to providing products or services to your clients,
for example, providing transportation service to clients, training services to clients, etc. Note that the
service goals are very important later on when designing program design, marketing and evaluation
plans.
Write Down Goals to Address Issues
Below, write down the strategic goals that must be achieved in order to address the issues. Think about
what must be achieved in order to address the issues. Consider goals over the term of your strategic
plan, but look very closely at the next year especially.
Write Down Forward-Looking Goals
Next, write down more forward-looking goals. If you are developing a new nonprofit, then you'll
probably have goals to build a board, do a strategic plan, do a market analysis to build a program, get
volunteers, hire staff, etc. Consider goals over the term of your strategic plan, but look very closely at
the next year especially.
Next, Associate Strategies with Each Goal
Next , under each goal, write down the major approaches (or strategies) that must be used to achieve
each goal. Consider strategies over the term of the strategic plan, but especially over the next year.
Now Consider: Are the Goals and Strategies Closely Aligned with Nonprofit's Mission, Vision and
Values?
Does each goal and its associated strategies really contribute toward the mission and vision of the
organization. Will the goals be reached by using strategies that are closely aligned with the values of
the organization? If not, then very closely reconsider whether you want to pursue those goals and
associated strategies.
Example Goal and Strategies
Example Program Goal #1: Support at least 600 drop-outs from Minneapolis high schools to obtain
diplomas or equivalent levels of certification in the calendar year 2000.
Example Strategy #1.1 -- Conduct high-school equivalency training programs to drop-outs from
Minneapolis high schools in the calendar year 2000
Example Program Strategy 1.2 -- Provide free transportation to enrollees in the program
Example Program Strategy 1.3 -- Provide subsidized child care to enrollees in the program
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Your Goals and Strategies (duplicate page as needed)
Goal # ___ (Write them to be "SMARTER")
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Appendix A -Action Planning (objectives, responsibilities and timelines)
In the section labeled "Your Action Plans" below, write down action plans, especially for the next year.
Action plans specify how the strategic goals and strategies will be carried out. Action plans often
include various objectives to be reached while achieving each goal, the responsible person for
achieving each objective and by when. Write objectives to be "SMARTER".
Example Action Plan
Example Program Goal #1: Support at least 600 drop-outs from Minneapolis high schools to obtain
diplomas or equivalent levels of certification in the calendar year 2000
Example Strategy #1.1 (for Goal #1): Conduct high-school equivalency training programs to dropouts from Minneapolis high schools in the calendar year 2000
Objectives for Strategy 1.1
Date of
Responsibility
Completion
1.1.1. Complete program plan
2/1/99
Program Director
1.1.2. Hire training director
3/31/99
Program Director
1.1.3 - Develop training program
1/1/00
Program Director
1.1.4 - Contract with high schools to get
referrals about drop outs
9/1/99
Program Director
1.1.5 - Pilot and evaluate pilot program
3/1/00
Program Director
1.1.6 - Train at least 600 drop outs
12/31/00
Program Director
1.1.7 - Test to ensure at least 600 qualify
for high school diplomas
12/31/00
Program Director
1.1.8 - Finish program evaluation
2/15/01
Program Director
Status and Date
Other example strategies to meet goal #1 might include:
Example Program Strategy 1.2 -- Provide free transportation to enrollees in the program
Example Program Strategy 1.3 -- Provide subsidized child care to enrollees in the program
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Action Planning Cont’d (who is going to do what and by when)
Your Action Plans (duplicate page as needed)
Goal # ___ (Write them to be "SMARTER")
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Strategy # __ . __
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
Objectives for Strategy __ . __
Date of Responsibility
Completion
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Status and Date
Appendix B - Description of Strategic Planning Process Used
This appendix might include, for example,




description of how the strategic plan document was developed
who was involved in the planning
any major problems and lessons learned during the planning process
etc.
Appendix C - Strategic Analysis Data -- External Analysis
An external analysis looks at societal, technological, political, and economic trends effecting the
organization, e.g., trends in donations, recent or pending legislation, federal funds, demographic
trends, rate of access to trained labor, and competition. In your external analysis, don't forget to look
at stakeholders’ impressions of the organization, including funders’, clients’, community leaders’,
volunteers’, etc.
From out external analysis, we identified the following trends and how they might effect our nonprofit:
Political trends:
__________________________________________________________________________________
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Economic trends:
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Societal trends:
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Technological trends:
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Appendix C - Strategic Analysis Data -- External Analysis (Cont.)
Other trends: (trends in donations, recent or pending legislation, federal funds, demographic trends,
rate of access to trained labor, competition, stakeholders’ impressions of the organization, etc.)
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__________________________________________________________________________________
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Appendix C - Strategic Analysis Data -- Internal Analysis
Write down the major strengths and weaknesses of your organization. Write down the major threats
and opportunities regarding your organization. Consider trends effecting the organization, e.g., true
need for programs as evidenced by client participation and feedback, reputation of the organization,
expertise of staff, facilities, strength of finances, solid administrative offices and operations, etc.
From out internal analysis (our SWOT analysis), we identified the following factors:
Factors
Positive
Negative
Internal
External
Strengths
Opportunities
Weaknesses
Threats
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Appendix C - Strategic Analysis Data -- Listing of Strategic Issues
New nonprofits, in particular, are often better off to first look at the major obstacles or issues that it
faces, and next identify the more forward-looking, developmental goals to accomplish over the next
few years. For example, current issues might be that the chief executive is not being paid, the board is
not achieving a quorum, there is no money at all, etc. Developmental goals for a new nonprofit might
be, for example, build a board, do a strategic plan, do a market analysis to build a program, get
volunteers, hire staff, etc.
To identify the key issues identified from your strategic analyses, consider the following guidelines:
a) From considering the effects of weaknesses and threats that you identified, what are the major
issues that you see? List as many as you can. Consider issues over the term of your strategic plan, but
look very closely at the next year especially. Many organizations have stumbled badly because they
ended up "falling over their feet" while being focused much too far down the road.
b) Consider each of issues. Ask whether it’s “important” or “urgent.” Often, issues seem very
important when they're only urgent, for example, changing a flat tire is an urgent issue -- but you'd
never put "changing a tire" in your strategic plan. Attend only to the important issues and not the
urgent issues.
c) Deal with issues that you can do something about. Issues that are too narrow do not warrant
planning and issues that are too broad will bog you down.
d) Issues should be clearly articulated so that someone from outside of the organization can read the
description and understand the nature of the issue.
Key issues that our organization must address through use of this strategic plan include:
1.
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2.
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3.
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4.
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5.
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__________________________________________________________________________________
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6.
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7.
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8.
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9.
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10.
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Appendix D -Goals for Board Committees and Chief Executive Officer
Organize Appropriate Board Committees
Board committees should be developed that associate with each of the major areas of strategic goals.
For example, if a strategic goal is to build and develop the board, then consider a Board Development
Committee. For example, if strategic goals include developing new programs, then consider a
Programs and Marketing Committee. (Of course, you will have other types of board committees to
address ongoing major activities that are not directly associated with types of strategic goals, for
example, an executive committee.)
Build Board Work Plans
One of the best ways to ensure that board committees are fully participative and effective is through
use of work plans for each board committee. With the board members, design work plans for each
committee. Write goals and/or objectives to be "SMARTER". A work plan is the plan that each board
committee references to guide the completion of their contribution to the organization's strategic plan.
For example:
Example Program Goal #1: Support at least 600 drop-outs from Minneapolis high schools to obtain
diplomas or equivalent levels of certification in the calendar year 2000
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Example Strategy #1.1 (for Goal #1): Conduct high-school equivalency training programs to dropouts from Minneapolis high schools in the calendar year 2000
Board Committee: Program and Services Committee
Board Chair: John P. Services
Action for Goal #1,
Strategy #1.1
Date of
Completion
Review and approve program plan
1-15-99
Review results of pilot evaluation
and approve continuation of
program
2-15-00
Review results of program
evaluation and approve
continuation of program
2-1-01
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Status and Date
Work Plans for Your Board Committees
(Make copies of this page as required.)
Board Committee ___________________________________________
Committee Chair ___________________________________________
Goal # ____ (Write them to be "SMARTER")
_________________________________________________________________________
_________________________________________________________________________
Strategy __ . __
_________________________________________________________________________
_________________________________________________________________________
Action
Date of
Completion
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Status and Date
Goals for the Chief Executive
The board is responsible to provide ongoing governance and direction the nonprofit organization.
Usually, the board decides to carry out their responsibilities by including the role of a chief executive
in the nonprofit organization. The board is responsible to oversee the performance of the chief
executive and evaluate the performance of the chief executive on a regular basis.
The chief executive should be attending to responsibilities and goals that are directly aligned with the
strategic goals of the organization (as should the responsibilities and goals of everyone else in the
organization). Therefore, after strategic goals have been identified, it's timely for the board to update
the performance goals of the chief executive (who, in turn, updates the performance goals of everyone
else in the management and staff of the nonprofit organization
Goals may need to be reworded to be more specific to the authority and resources of the chief
executive role.
Goals should be designed and worded to be "SMARTER", that is, specific, measurable, acceptable to
the chief executive, realistic, timely, extending the capabilities of the chief executive and rewarding for
him or her to accomplish.
Your Goals for Your Chief Executive
(Write goals to be "SMARTER".)
1.
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2.
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3.
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4.
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5.
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6.
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7.
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Appendix E - Staffing Plans
Reference each of the strategies to reach the goals and consider what kind of capabilities is needed to
implement the strategies. This might seem like a lot of guesswork, particularly if you don't have
experience in supervision. However, don't worry so much about being exactly correct -- you will likely
refine your staffing plan later on as you design and plan your programs in the nonprofit development
process. If you are developing a new nonprofit, you might think about including the following typical
roles in your initial staffing plan (but again, consider these roles in terms of implementing the
strategies in your plan): chief executive, administrative assistant and program directors for each of
your major service goals. However, it's common that the chief executive is also a program director for
the first year or so. You may end up refining the staffing plan as you complete action planning, along
with identifying who will accomplish each of your objectives
Note that in the following table, staffing is specified in terms of full-time equivalents (FTEs). One FTE
is equal to one full-time staff position throughout the year. If staff will start half-way through a year,
than include .5FTE, etc.
Staff Position
Year 1
Central Administration, General Operating Activities:
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Staff for Program [insert name]: (have a section for each program)
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Year 2
Year 3
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Appendix F - Operating Budgets
In the table labeled "Your Budget Planning" included below, list the resources you will need to achieve
the goals in the strategic plan and the costs to get and use the resources -- especially over the next
year. You don't have to be exactly accurate -- besides, you may end up changing your budget as you
give more attention to program design and planning. You should do a budget for each of the years
included in the span of time covered by your strategic plan -- but give particular attention to the first
year of the time span.
Look at each of your service, or program, goals. Think about how much revenue the program might
make from fees, grants, donation, etc. Next, think about the expenses to run the program, such as
human resources, facilities, equipment, special materials for programs, marketing and promotions,
etc. Note that this budget information usually can be used later on with program budgets and grant
proposals. In an upcoming module about program planning, we'll likely modify your operating budget
to include updates from program planning, including developing program budgets.
Now think about what resources will be needed for central administration. Will you need a chief
executive officer, assistants, program directors, etc?
Example Operating Budgets
The following multi-year budget is an example to help you think about the types of resources you may
need to achieve the goals in our plan and to help you think about how you'll develop your operating
budgets.
Note that the following budget includes 40% "fringe" -- this is the extra amount budgeted to cover
benefits, for example, medical insurance, social security taxes, retirement contributions, etc. You
should find estimates of the current fringe rate for salaries -- or, you can budget specific amounts for
each of the specific benefits.
Also note that the following is a rather simple budget format and should be modified to suit the needs
and nature of your organization.
Year 1
REVENUE:
Federal grants
State grants
Local grants
Private foundations
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Year 2
Year 3
Other grants
Program fees from program [insert name]
Program fees from program [insert name]
Program fees from program [insert name]
Program fees from program [insert name]
TOTAL REVENUE:
EXPENSES
Central Administration -- Personnel:
Chief executive officer (include yearly salary + 40% for benefits,
etc.)
Administrative assistant (include yearly salary + 40% for
benefits, etc.)
Travel
Staff development
Total Central Administration -- Personnel Costs:
Central Administration -- Facilities:
Rental of office space (central offices and 4 classrooms)
Office furniture
Utilities (electricity, water, heat)
Telephone (local & long-distance)
Maintenance and janitorial
Total Central Administration Facilities Costs:
Central Administration -- Equipment:
Copier leasing
Computer, printers, networking
Training equipment, projectors, etc.
Vans (4 for student transportation)
Total Central Administration Equipment Costs:
Central Administration -- Marketing and Promotions:
Media plan (brochures, newspaper ads, etc.)
Yearly meeting
Annual report
Build and maintain mailing list
Web page development and maintenance
Total Central Admin. Marketing & Promotions Costs:
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Other Expenses:
General office supplies
Liability insurance
Subscriptions, books, etc.
Total Central Admin. Other Expenses/Costs:
Training Program -- Personnel:
Program director (include yearly salary + 40% for benefits, etc.)
Program administrator (include yearly salary + 40% for benefits,
etc.)
Consultant: curriculum design (3 months full-time; 9 months 2
hours per day)
Consultants: teachers (4 full time and 4 half time)
Consultants: psychologist/counselor (1 full time)
Van drivers (4 hours per day)
Total Training Program Personnel Costs:
Training Program -- Materials:
GED testing packets (600)
Grading services from Dept of Human Services (600 students)
600 self-study guides
Support group facilitator guides
Total Training Program Materials Costs:
TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT)
(= revenue minus expenses)
Your Budget Planning
The following table may need to be modified to suit the needs and nature of your organization. (See the
advice and materials suggested in the previous section.)
Year 1
REVENUE:
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Year 2
Year 3
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TOTAL REVENUE:
EXPENSES
Central Administration -- Personnel:
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Total Central Administration -- Personnel Costs:
Central Administration -- Facilities:
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Total Central Administration Facilities Costs:
Central Administration -- Equipment:
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Total Central Administration Equipment Costs:
Central Administration -- Marketing and Promotions:
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Total Central Admin. Marketing & Promotions Costs:
Other Expenses:
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Total Central Admin. Other Expenses/Costs:
Program -- Personnel:
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Total Program Personnel Costs:
Program -- Other Expenses:
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TOTAL EXPENSES
TOTAL SURPLUS (OR DEFICIT)
(= revenue minus expenses)
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Appendix G - Financial Reports (Budgets, Statements, Etc.)
This appendix might include, for example,





last fiscal year's budget (planned amounts and actual amounts spent)
current budget report
current Statement of Financial Position
current Statement of Financial Activities
etc.
Appendix H - Monitoring and Evaluation of Plan
Responsibilities and Frequencies for Monitoring and Evaluation
Plan section, goals, etc.
Completion
date
Responsibility
Written description
of results to:
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Key Questions While Monitoring Implementation of the Plan
(The following questions should be modified to suit the nature and needs of the organization.)
Monitoring and evaluation activities will consider the following questions:
1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and
communicate the progress. If not, then consider the following questions.
2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?
3. Should the deadlines for completion be changed (be careful about making these changes -- know
why efforts are behind schedule before times are changed)?
4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the
goals?
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5. Are the goals and objectives still realistic?
6. Should priorities be changed to put more focus on achieving the goals?
7. Should the goals be changed (be careful about making these changes -- know why efforts are not
achieving the goals before changing the goals)?
8. What can be learned from our monitoring and evaluation in order to improve future planning
activities and also to improve future monitoring and evaluation efforts?
Additional questions:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Reporting Status of Implementation
Results of monitoring and evaluation will be in writing, and will include:
1. Answers to the "Key Questions While Monitoring Implementation of the Plan"
2. Trends regarding the progress (or lack thereof) toward goals, including which goals and objectives
3. Recommendations about the status
4. Any actions needed by management
Procedure for Changing the Plan
Regarding any changes to the plan, write down answers to the questions:
1. What is causing changes to be made?
2. Why the changes should be made (the "why" is often different than "what is causing" the changes).
3. What specific changes should be made, including to goals, objectives, responsibilities and timelines?
Reminders:
Manage the various versions of the plan (including by putting a new date on each new version of the
plan).
Always keep old copies of the plan.
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Appendix I - Communicating the Plan
Note that certain groups of stakeholders might get complete copies of the plan, including appendices,
while other groups (usually outside of the organization) might receive only the body of the plan
without its appendices.
Consider:
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It’s amazing
how even the newest staff member gains quick context, appreciation, and meaning from review of the
strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider
giving each employee a card with the statements (or highlights from them) on the card.
4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials
(brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade
associations, potential collaborators, vendors/suppliers, etc.
This plan will be widely communicated including through use of the following approaches:
1._________________________________________________________________________________
__________________________________________________________________________________
2._________________________________________________________________________________
__________________________________________________________________________________
3._________________________________________________________________________________
__________________________________________________________________________________
4._________________________________________________________________________________
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5._________________________________________________________________________________
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6._________________________________________________________________________________
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7._________________________________________________________________________________
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8._________________________________________________________________________________
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9._________________________________________________________________________________
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