Does an NFP need a Strategic Plan?
It is even more important in the Not For Profit sector to have a clearly defined direction than it is for a business. Businesses are often made up of similar departments and led by a technically proficient team who know you have to service the customer in a profitable manner.
The resources employed by a NFP organisation are more varied than that of an ordinary business. Many employees fill their days handling what is thrown at them and their job descriptions mirror that. Volunteers can make up a significant part of the workforce and processes are often ad hoc. All staff have a broad loyalty to the cause but may have very different views of what success looks like for the organisation.
It is crucial to set a direction and communicate it to all stakeholders.
So, what is strategic planning?
Firstly, it is a proactive process. You want to shape the future, not just let it arrive on your doorstep. The world is changing faster than ever. Have a view on how and why and most importantly where your place will be.
The process itself is all important. It’s a chance to look into the future in a disciplined and systematic fashion; to select a destination and map out a journey to get there. It's a chance to put the right team together and harness the right resources.
No journey can begin without a true understanding of the starting point. A look at where you are today and what are the strengths and weaknesses of your organisation.
Remember that strategy is at the heart of this process. What are you going to do that others can't. How are you going to outperform your competition? Because yes, you still have competition for staff, for dollars, for airtime, for attention.
Strategy is central
Strategy is working out where you are going to fight your battles and how you are going to win them. In a business environment this boils down to an understanding of customer needs, market forces and competitive offerings. Of knowing your strengths and those of the competition. Of understanding what forces are shaping your market- be they economic, social, regulatory or ideological.
What alternatives do you have? In deciding what you will not do, you make a solid framework for what you will do. You can define your strategy in this way.
So now it is about all those other journalist questions. You may have the What & Where but now it's the Who, How and When. Often it is about creating the stepping stones that will move you closer to the completion of your mission. It is also about establishing the milestones for the journey and agreeing what is going to be measured.
In the Not For Profit world it is always about the Mission. Success cannot be measured in market share ROI or shareholder dividends so what is measured and how it aligns with your mission is crucial.
View your strategic plan as a map. The further you are on your journey, or the more inclement the conditions seem, the more useful it is for reestablishing both your course and your confidence
So, what does a strategic plan actually deliver?
A good strategic plan is fundamental to good governance and professional management. It grounds the organisation and provides that consistent direction that shapes policy and process. There is a consensus on key issues and strategies to address them, a commitment to implementing the strategies, an agreement on priorities and cooperation within the team. There is also confidence that funds are being invested in the right areas.
But being so fundamental it brings further benefits:
It guides day to day policy and helps you react to change.
It allows you to hone your messaging and clearly position your organisation.
It helps you attract funding as money is attracted to professionalism.
It helps you recruit the right staff who are willing to buy into your journey.
It guides you on when to say no... to opportunities, projects or stakeholders.
Taking all this onboard, what organisation can say that it will prosper without a strategic plan?
©John Holland 2019