e-Newsletter: Connect to Solutions
Strategic & Business Planning During These “Troubled Times”
by Jeff Vengrow, Director of CNE Solutions
Running a nonprofit organization is challenging enough in good times, but how can you balance the commitments to both social purpose and financial sustainability in an economic downturn?
Strategic and business plans are tools that can provide the guidance needed to balance efficiency with effectiveness. While a well-drafted set of strategies affirms the mission/vision and sets the overall direction, a supporting business plan establishes the operational and program requirements necessary for those strategies to succeed.
The building of such a plan includes a look at the external environment as well as an open and honest internal assessment.
There are several external factors that significantly affect not-for-profit organizations and in fact create the context for them. Just a few examples of external trends are: economic outlook, shifting demographics, increasing competition from both not-for-profit or for-profit organizations, and the challenges of obtaining needed funding.
There are also many internal factors that need to be objectively assessed as a component of developing strategies and business plans. Some of these internal factors are the efficient design and clarity of internal processes, as well as the competencies of leadership and staff to implement those processes with operational excellence in service of the mission.
According to renowned management guru Peter Drucker, the key questions that not-for-profit organizations need to answer are:
• Why do we exist?
• Who are our customers?
• What does the customer value?
• What are our results?
• What is our plan?
The process of planning doesn’t require unrealistic time horizons or rigid adherence in changing circumstances. The “plan” is intended to be dynamic and action-oriented. It needs to reflect “elegant simplicity” and be “right-sized” to reflect the size and complexity of the organization. It is intended to be a useful tool, and not a periodic and bureaucratic ordeal. In fact, sometimes, “less is more.”
In these challenging economic times, traditional funding sources may become less certain. At the same time, internal processes must become highly efficient and effective. Not-for-profit organizations cannot be simply “business as usual”. An effective planning process helps organizations to forge a common direction, focus resources, and to execute plans with operational excellence.
Resources / Sources
Alston, Farnum. Bryson, John. Creating and Implementing Your Strategic Plan: A Workbook. John Wiley & Sons, Inc., 1/1/2005.
Dore, Michael S. Thinking Strategically within Nonprofits. 1st World Library Inc. 2003.
Mittenthal, Richard. Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders. The Conservation Company. 2003.
Click here to download a list of books related to Strategic Planning.
Contact Jeff Vengrow by calling 330.315.0432 or emailing him at vengrow@cfnpe.org.