STRATEGIC MANAGEMENT
DEVELOPING A STRATEGIC PLAN
FOR NONPROFIT ORGANIZATIONS
Leadership Institute
March 23, 2006
AGENDA
• Strategic Management Model
• Exercise – Small Groups
• Strategy Scorecard
WITHOUT PLANNING. . .
•The focus is on past performance
and the current situation.
•Organizations are caught offguard by changes in the
environment.
•Organizations tend to be reactive.
STRATEGIC MANAGEMENT MODEL
DEVELOP / REVIEW
ANALYZE SITUATION: SWOT
ANALYSIS
MISSION STATEMENT
Organization’s Strengths & Weaknesses
Environmental Opportunities & Threats
FORMULATE STRATEGY
IMPLEMENT STRATEGY
MONITOR PERFORMANCE
STRATEGY FORMULATION
ANALYZE SITUATION: SWOT
ANALYSIS
DEVELOP / REVIEW
MISSION STATEMENT
Organization’s Strengths &
Weaknesses
Environmental Opportunities &
Threats
Mission Statement
1. Define your business.
2. Identify general goal(s).
3. Statement of corporate
philosophy or social responsibility.
DEFINING THE BUSINESS
“We are in the business of…..”
Product/Service
Customer Needs
•Revlon
Manufactures cosmetics
Make people beautiful; help
them retain their youth
•IBM
Manufacturers
computers (typewriters)
Provides means for
information processing,
storage and data manipulation
Products/Services
Customer Needs
•Greater Springfield
Senior Services, Inc.
Serves meals to people at
home, cleans home,
provides health services at
home
Enable elderly to enjoy a
quality of life, independence
and the ability to remain in
their homes.
•Western New England
College
Quality instruction,
teaching institution
Facilitate learning
TRENDS IN THE ENVIRONMENT
(EXTERNAL FACTORS)
1. Predict trends in society, in the economy, regarding
technology and in the political/legal environment. Also,
profile competitors and predict competition over the
next three years.
2. Identify whether the forecasted trends will be
favorable or unfavorable to the industry.
ENVIRONMENTAL TRENDS
Favorable
Unfavorable
ORGANIZATIONAL STRENGTHS
AND WEAKNESSES
Strengths
Weaknesses
SWOT ANALYSIS
Favorable
Strengths
Weaknesses
(Opportunities)
SWUF ANALYSIS
Unfavorable
(Threats)