The Importance of Strategic Planning for Organizations

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The Importance of Strategic Planning for
Organizations

• Daphne Walker-Thoth, M.Ed.
• Executive Director
• Committed Caring Faith Communities
• Presented March 22, 2009

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Workshop Overview

• An introduction the concept of strategic planning
  for small faith and community-based organizations
• A delineation of what is involved in the
  strategic planning process
• A look at some tips for implementing a strategic
  plan

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What is Strategic Planning?
A management tool that helps an
organization

• Focus its energy and resources
• Ensure that members are working toward common
  goals
• Guide the direction of the organization
• Identify and make the best use of its assets
• Respond to changing environments

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Having a Strategic Plan is Like Having a Road Map

• Helps us chart out our destination
• Helps us determine the best way to reach our
  destination
• Helps us work together to reach our destination
• Helps as we plan the actual journey
• Helps us stay on course
• Helps us know when we have reached our
  destination

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Common Complaints About Strategic Planning

• It is just a waste of time we already know what
  we want to do
• It will take too long we could be out there
  delivering service rather than sitting in
  planning meetings
• The plan will just sit on the shelf after it is
  done
• It costs money to hire a strategic planning
  consultant, and we dont have any money
• Whats the use in spending time planning when we
  know those plans are going to change?

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Lets Take a Trip
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Operating an Organization Without a Strategic
Plan Is Like Taking a Trip Without Planning For
ItYou Dont Know Where Youll End Up
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Strategic Planning is Similar to Planning a Trip

• Destination
• Purpose of Trip
• MarkersLandmarks
• Route
• Daily Activities
• Schedule
• Spending Money

• Goal
• Mission Statement
• Objectives
• Strategy
• Tasks or Activities
• Deadlines
• Budget

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Strategic Planning is Similar to Planning a Trip

• Who is going on the trip?
• What is the weather forecast?
• Detours
• How was the trip?
• Lets take a trip every year

Who will your clients be? What is happening
in the environment? Change in plans
Evaluation Sustaining our organization
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Questions to Be Answered Through Strategic
Planning

• What kind of organization do we want to be?
• What kind of ministries or programs should we
  establish?
• How is our organization different from others?
• What do we do really well?

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Questions to Be Answered Through Strategic
Planning

• If our organization closed its doors, what would
  the community miss most?
• Why do we exist?
• What do we want to accomplish most?
• What are we like now and how do we want to be
  different in the future?
• What are our strengths? What are our weaknesses?

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Questions to Be Answered Through Strategic
Planning

• What resources do we have? What skills, gifts and
  talents do our members have?
• What are our principles and values?
• What is the personality of our organization?
• What are the unmet needs of the community? What
  problems exist in the community that we can or
  should address?

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Questions to Be Answered Through Strategic
Planning

• What in the environment will threaten our plans?
  How will we overcome these threats?
• What opportunities are there in the environment
  for us?
• With whom should we team up to fulfill our
  mission?
• Where will the money come from that we need?

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Questions to Be Answered Through Strategic
Planning

• How will we sustain our organization?
• What resources exist in the community? What
  services are already provided in the community?
• How will we know if our efforts are successful?
• How do we let people know that we exist?
• Are there other organizations like ours?

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Considerations for Strategic Planning Process
Strategic planning is better defined as a process
rather than an event
Planning
Evaluating
Implementation
Fine Tuning
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Considerations for Strategic Planning Process
It should not be rushed but it should not take
forever either
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Considerations for Strategic Planning Process
Plan should cover designated time frame
generally 3 to 5 years
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Steps to Take Prior to Embarking on Strategic
Planning

• Plan the planning process the format, timeline
  for planning, who should be involved, who will
  lead the process, will an outside consultant be
  hired
• Recruit a planning team minimum of eight,
  diverse representation
• Collect information, statistics, stories that
  will help paint a true picture of what is
  happening in the community
• Identify ways to get buy-in from members of the
  organization who are not on the planning team

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Common Components of a Strategic Plan

• Vision statement
• Mission statement
• Goals
• Objectives
• Activities
• Time Line Task Assignments
• Budget
• Evaluation

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Vision
A dream about what the future should look like
Source Getting to Outcomes 2004, Chinman, Imm,
Wandersman, Rand Corporation
Where there is no vision, the people perish
Proverbs 2918
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Sample Vision Statements

• Children in Columbia will be born healthy and
  drug-free.
• Drug abuse treatment will be available
  immediately upon demand.
• Children will have parents who are free from
  addiction.
• There will be a safe house for children in every
  neighborhood.
• No child of an addict will become an addict.

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Mission Statement

• What problem does your organization exist to
  correct or overcome, or what need does your
  organization exist to meet?
• In what population?
• In what geographic area?
• What beliefs guide the approach youll take?
• It states the purpose of the organization.

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Goals

• What are we trying to accomplish?
• What are the desired results?
• How would we like the conditions to change?
• What big things must you accomplish to achieve
  your mission?

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Objectives

• Objectives must be specific, concrete, attainable
  and measurable.
• Objectives are the steps that lead to the
  accomplishment of the goal.
• Objectives state desired or planned end results
  whereas tasks define the steps leading to
  accomplishment of the results.

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Objectives

• Specific
• Measurable
• Achievable
• Realistic
• Time-limited

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Activities

• This is the action plan a delineation of
  specific activities you will undertake to
  accomplish your objectives
• Each activity should be assigned to an individual
  or group and include a targeted date of completion

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Evaluation

• Critical to ongoing success of the plan
• Helps organization build on its successes, learn
  from mistakes, and fine tune its plans
• Determine what went as planned and what did not
• Must determine what measures to use
• Should use combination of outcome and process
  evaluation

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Budget

• Organization should have an annual projected
  budget
• Find out what the average salary is for staff
  similar to that employed by the organization
• Add a value to in-kind contributions
• Budget should be realistic

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Typical Budget Line Items

• Personnel
• Fringe benefits
• Travel
• Equipment
• Supplies
• Consultants
• Other
• - Utilities, Insurance, Refreshments, Etc.

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Implementation Tips

• Check progress monthly
• Dont allow the plan to sit on the shelf
• Celebrate milestones
• Be willing to change plans
• Hold people accountable to what they agreed to do
• Have contingency plans
• Build team spirit
• Dont make assignments without asking people what
  they want to do

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Summary

• Strategic planning is a process
• It is a management tool
• It helps an organization focus its energy and
  resources
• It guides the direction of the organization
• It helps the organization respond to changing
  environments

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Summary

• Key components of strategic planning are vision
  statement, mission statement, goals, measurable
  objectives, activities, timeline, task
  assignment, evaluation and budget
• Facilitation of strategic planning process can be
  handled internally or can be lead by a consultant