When nonprofits plan responsibly they are far more likely to capture opportunities to expand their resources, diversify their services, respond to dynamic constituent needs, and react positively to unanticipated developments.

By: Patricia H. McAbee

Strategic planning is a time-honored management tool that is becoming widely accepted among nonprofit boards and executives. Strategic planning emphasizes an organization’s preparedness for an ever-changing environment while looking at specific issues that address the overall direction and mission. When nonprofits plan responsibly they are far more likely to capture opportunities to expand their resources, diversify their services, respond to dynamic constituent needs, and react positively to unanticipated developments. The beleaguered group that fails to plan strategically finds itself in continual decline or stagnation.

Not all strategic planning is the same. The principle of the 5 P’s remains constant - Proper Planning Prevents Poor Performance. Perhaps the most overlooked aspect of that rule is “Proper.” Many nonprofits employ an antiquated long-range planning model that results in a hefty document. Too many organizations judge strategic plans by weight, and that is a dangerous trap. The plan must fit the vision. As Secretary of Defense Donald Rumsfeld has said, “Sometimes you can have the right ladder but the wrong wall.”

Well-meaning board members shuffle pages and presume that, given that much paper and effort, everything must be well under control. More times than not, nothing could be further from the truth. Lengthy planning documents that stress detail in a static environment are rarely followed. Such a process exhausts valuable creative energy and time from staff and financial resources leaving the organization more vulnerable than if the process had not occurred at all.

Today’s nonprofits are finding more relevance in strategically identifying and addressing issues that can close the gap between an organization’s vision of what it wants to be and do in the future and where it actually is now. By focusing on a few “strategic” issues, a nonprofit can direct precious resources in areas that make the most of opportunities. Through these targeted issues, the organization increases its ability to respond to change.

The first step in strategic planning is to prepare the organization and secure commitment from top administrators and the board. Organizational readiness to undergo the process and accept the outcomes is vital. Then, timing and resource investment can be allocated. Administrators and board members should not assume that the strategic planning process exists simply to validate the manner in which the organization currently operates. If an organization is truly open to the planning process, then they are open to the possibility of change. Of course, strategic planning should reveal not only areas for improvement; it should also show where your organization excels.

Strategic planning often begins with a great many introspective questions. When considering a strategic planning process for your organization, you will want to think about these, and other questions: “What do we want to accomplish through strategic planning?”; “ What is the current degree of commitment to our current mission statement?”; “What amount of new information do we need?”; “What is the level of trust among board, staff, constituents?”; “How would we benefit from a consultant?” Finding this basic information can lead to what type of plan is needed.

These can be hard questions, and in many respects, they should be. The purpose of strategic planning is to create meaningful, systemic changes in the evolution of the organization. However, this should be viewed in the most positive light. Develop a list of key objectives that, if accomplished, will accentuate the organization’s ability to fulfill its mission.

Strategic planning should be a lean and mean process. This represents the top of the pyramid, from which the many tactical details will be derived. The strategic plan is not the place for a grocery list. Boil down the mission into a few key objectives, and distill the plan down to those activities that serve the vision of the organization. Prioritize these goals, taking care to build in any necessary sequencing where the successful completion of one step must precede the execution of another.

Successful strategic planning improves focus and it improves process in the following ways:

• establishes a keen understanding of the organization’s purpose, programs, values, and commitment;
• develops a prioritized framework for action;
• sets benchmarks for assessing achievement and results;
• provides “success stories” for public relations;
• fosters communication among board, staff, and constituencies;
• * lays the groundwork for meaningful and positive change;
• * brings opportunities for improved performance.

It often serves the process and the organization to have an outside consultant facilitate the strategic planning sessions. Developing a strong plan is difficult enough without it being an exercise in self-assessment. There is also the issue of experience. A consultant can draw upon solutions developed for similar organizations with similar challenges and objectives.

When done well, strategic planning is an important tool for engendering good communication in the organization that will lead to successful achievement of major goals. It will foster a greater sense of teamwork and reassure everyone that the organization is on the path to success.

Patricia H. McAbee is a Vice President at Custom Development Solutions, Inc. (CDS). CDS has become one of North America's best and most sought after fundraising consulting firms specializing in the strategic planning and tactical execution of capital campaigns for non-profits throughout the United States and Canada. More information on CDS can be found on the web at www.cdsfunds.com. If you have a fundraising question, please call 800-761-3833 or send an email to lcs@cdsfunds.com.