Simple Models for Strategy Planning (Part 1)

‘Basic’ Strategic Planning

This very basic process is typically followed by organizations that are extremely small, busy, and have not done much strategic planning before. The process might be implemented in year one of the nonprofit to get a sense of how planning is conducted, and then embellished in later years with more planning phases and activities to ensure well-rounded direction for the nonprofit. Planning is usually carried out by top-level management, or by the Board of Directors.

The basic strategic planning process includes:

Identify your purpose (mission statement) – This is the statement(s) that describes why your organization exists, i.e., its basic purpose. The statement should describe what client needs are intended to be met and with what services, the type of communities are sometimes mentioned. The top-level management should develop and agree on the mission statement. The statements will change somewhat over the years.
Select the goals your organization must reach if it is to accomplish your mission – Goals are general statements about what you need to accomplish to meet your purpose, or mission, and address major issues facing the organization.
Identify specific approaches or strategies that must be implemented to reach each goal – The strategies are often what change the most as the organization eventually conducts more robust strategic planning, particularly by more closely examining the external and internal environments of the organization.
Identify specific action plans to implement each strategy – These are the specific activities that each major function (for example, department, etc.) must undertake to ensure it’s effectively implementing each strategy. Objectives should be clearly worded to the extent that people can assess if the objectives have been met or not. Ideally, the top management develops specific committees that each have a work plan, or set of objectives.
Monitor and update the plan – Planners regularly reflect on the extent to which the goals are being met and whether action plans are being implemented. Perhaps the most important indicator of success of the organization is positive feedback from the organization’s customers.

Note: Organizations following this planning approach may want to further conduct step 3 above to the extent that additional goals are identified to further developing the central operations or administration of the organization, e.g., strengthen financial management.

Issue-Based (or Goal-Based) Planning

Organizations that begin with the basic planning approach described above, often evolve to using this more comprehensive and more effective type of planning.

External/internal assessment to identify ‘SWOT’ (Strengths and Weaknesses and Opportunities and Threats).
Business growth consultants, or strategic analysis to identify and prioritize major issues/goals.
Design major strategies (or programs) to address issues/goals.
Design/update vision, mission and values (some organizations may do this first in planning).
Establish action plans (objectives, resource needs, roles and responsibilities for implementation).
Record issues, goals, strategies/programs, updated mission and vision, and action plans in a Strategic Plan document, and attach SWOT, etc.
Develop the yearly Operating Plan document (from year one of the multi-year strategic plan).
Develop and authorize Budget for year one (allocation of funds needed to fund year one).
Conduct the organization’s year-one operations.
Monitor/review/evaluate/update Strategic Plan document.