Professional Documents
Culture Documents
tcc group
strategies to achieve social impact
Strategic
briefing
paper planning
what it is
and isnt
page 2
Components
of an
effective
strategic plan
page 5
Why vision
matters
How
Strategic Planning for consultants
can help
A final word
Foundation Leaders page 9
Strategic planning has long been used as a tool for transforming and revitalizing corpora-
tions, government agencies and nonprofit organizations. Recently, however, skepticism about
planning has been on the rise. Political and economic uncertainty is the norm and the pace
of technological and social change has accelerated. There is some disillusionment with plan-
ning efforts that cant keep pace. We did a plan five years ago and havent looked at it since,
is one common complaint. Or, By the time we completed our plan, we were already carrying
out all of its strategies.
But such comments miss the point. Rather than expose some fatal flaw in strategic plan-
ning, they reflect a basic misconception about the purpose and value of strategic plan-
ning and what it takes for a plan and the process to succeed. Indeed, the process can
prove pointless and frustrating and the end product of dubious value when care isnt
taken to set clear, realistic goals, define action steps explicitly, and elicit the views of
major stakeholder groups.
Yet few tools are better suited to help address the staggering array of challenges brought
about by a changing environment. A successful strategic planning process will examine
and make informed projections about environmental realities to help an organization
anticipate and respond to change by clarifying its mission and goals; targeting spending;
and reshaping its programs, fundraising and other aspects of operations.
2 briefing paper
opportunities and
included increasing numbers of immigrants from Noelle Mills Adler
Latin America, Eastern Europe, the Caribbean
challenges. and Asia. Thus, Taking Flight, the Librarys 2001- President
2006 strategic plan calls for the development of a LCU
multilingual and more flexible online catalog of its
No organization exists in a static environment. holdings as well as an advanced telecommunica-
Social, political and economic trends continually tions infrastructure.
impact the demand for its offerings and services.
Even as advances in technology present new Ultimately, well be able to create virtual collec-
opportunities, they also generate new expecta- tions of print, video and multimedia materials that
tions. Needs and community demographics are all can be accessed from any of 59 branch libraries
subject to change. So too are methods for deliver- throughout Brooklyn, as well as by library users in
ing programs and services. It is thus essential that other parts of New York City, Gomez says. That
a strategic plan reflect the external environment. wouldnt have been a top-line priority a decade
Programs, services and operations should be reex- ago. Today it is.
amined and reshaped in light of current realities
and future projections.
3
broad-ranging consultation, says school head This isnt to suggest that the committee members We saw strategic
Joseph Healey. But we also needed to avoid char- have carte blanche to adopt and implement key
tering so many committees and adding so many action steps, or that they not be held accountable planning as a way to
layers that the work would bog down. To achieve to the board or larger community. But neither get back to our
inclusiveness without sacrificing productivity, the should they be subjected to constant second-
work was divided among task forces in several key guessing, or be required to seek board or man- founding mission.
areas, including diversity, faculty life, governance agement approval at every step. The boards con-
and buildings and grounds. Each task force, as fidence in their skill and judgment must be implic-
well as an oversight committee, drew representa- it. At the Miami, Florida-based John S. and James Elizabeth McCarthy
tives from each of the schools major constituen- L. Knight Foundation, a board-staff committee
cies faculty, student body, parents, administra- oversaw the strategic planning effort from start
Safe Horizon
tion, alumni and trustees. to finish, reviewing the scope of work and tracking
its progress through regular reports. The commit-
In a real sense, our methodology was consistent tee also planned and led a three-day retreat where
with our objective, says Healey. The school was the framework and direction of the new plan were
operating as three separate schools two for formalized. In the end, the Board discussed and
lower grades and one for upper grades, each with approved the final plan a common organization-
its own principal and distinctive curriculum, with al practice, but they knew that they had appoint-
little sense of institutional cohesiveness. We are ed a strong planning committee, and that the
striving to unify the three into a single PK-12 committee had done its job, comments Executive
school with a single mission, culture and curricu- Vice President Penny McPhee. There was no
lum. Ethical Culture Fieldstons new strategic need to revisit or question the end result.
plan, completed in December 2000, is an impor-
tant first step in that direction, he says. At Safe Horizona New York City-based nonprofit
formerly called Victim Servicesthe bulk of the
initial planning work was done by an eight-person
committee comprising four staff members and
four representatives from the Board of Directors.
In the 20 years since its founding, Safe Horizon
had strayed from its mission to provide support
for victims of crime and abuse and their families.
The organization had branched out into several
new areas, including immigrant services, which
were valuable in their own right, but not consis-
tent with our reason for being, says Senior Vice
President Elizabeth McCarthy. We saw strategic
4. An planning as a way to get back to our founding
mission.
empowered
planning Committee empowerment was especially impor-
tant because of our aggressive time frame,
committee McCarthy adds. Work began in December 1999
with the goal of having a plan in place before the
Strategic planning should be a participatory end of the fiscal year, the following June an
undertakingbut not an anarchic one. As a mat- ambitious undertaking for an organization with
ter of practical necessity, the core work will gen- more than 60 sites and a $40 million budget. While
erally be entrusted to a small planning committee the committees recommendations were subject
with sufficient decision-making authority to keep to Board approval, the Board took them very seri-
the project moving forward. ously, McCarthy says. In fact, most members
didnt see the plan until it was in close-to-final
form in May.
5
Components of
an effective
strategic plan
Strategic plans are compre-
hensive documents that
cover all aspects of an
6. Sharing of organizations work, includ-
5. Involvement of responsibility by ing programs and services,
management and opera-
senior leadership board and staff tions, fundraising and
members finances, facilities and gov-
ernance. Depending on the
organizations scope and
Some executive directors and board members are An effective plan takes multiple elements into emphasis, a plan might also
inclined to take a hands-off approach when it account: the funding climate, the expectations describe approaches to
comes to strategic planning. They may simply lack of clients and other stakeholders, the competi- enhance marketing, inter-
the necessary time or interest to get involved. Or tive landscape and the exigencies of operations nal and external communi-
they may underestimate the significance of the and programming. Neither board nor staff, act- cations, membership devel-
task at hand and its potential impact on the ing on its own, has a full grasp of all those areas. opment and administrative
organization. Hence the need to ensure that both are fully systems.
involved.
Must executive directors micromanage the Information about these
effort or involve themselves in its every aspect? As policy-setters and financial and legal watch- topics should be presented
Certainly not. But their active participation dogs, board members are charged with keeping in an action-oriented for-
mat. Good strategic plans
that is, buy-in that goes beyond mere verbal an organization on track and working to fulfill
include:
endorsementis crucial. Absent their vision its mission. Its an important responsibility
and commitment, and the certainty that funds one to which they must be fully committed,
A Mission Statement
and resources will be available to implement notwithstanding any other professional and
A brief expression of the
action steps, others are unlikely to take the business involvements. The duties of gover-
organizations purpose. It
process seriously. nance require that board members figure cen-
should answer the ques-
trally in defining the goals of the plan and laying
tions Why do we exist?
Prior to the arrival of Gordon J. Campbell as out its structure.
and What, at the most
Chief Executive Officer of Safe Horizon in
basic level, do we do?
1998, the Board had taken steps toward draft- However, removed from day-to-day operations,
ing a new strategic plan. But Gordon was board members may propose ambitious ideas A Vision Statement
uncomfortable with that approach, says that require tempering or scaling back. Staff A description of the organi-
Brooke McMurray, Chair of the Planning members are likely to have a more intuitive and zations desired future
Committee. He felt that this needed to be an informed understanding of the organizations state. An organizational
agency-wide effort, involving staff as well as internal workings and capabilities, and a clearer vision statement is internal-
board, front-line personnel as well as senior sense of what is feasible and what is not. They ly focused: It projects the
management. In fact, Campbell hosted a two- understand the ins and outs of programming, future in terms of the pro-
day senior management retreat that resulted in operations and personnel functions; theyre the gram, budget or staff size,
development of core features of the plan. ones who deal directly with clients. answering the question
What we needed was a plan for increasing our Where do we want to
impact and relevance in tangible ways, be? Some organizations
McMurray says. Without Gordons dynamic also adopt societal vision
involvement, I doubt we would have gotten statements, articulating the
there. desired influence of their
continued on page 7
6 briefing paper
No matter how relevant its original mission, no Apart from governance and organizational
organization can afford to shackle itself to the changes, the plan helped CCC double its fundrais-
same goals, programs and operating methods ing within two years, becoming an even stronger
year after year. As client needs, market conditions and more effective advocate for children while
and funding criteria change, strategies need to be eliciting the single largest funding increase for
revisited regularly. Sometimes all thats needed is childrens mental health programs in the history
fine-tuning; other times, a more fundamental of New York State.
rethinking of goals and opportunities may be
required. If they are to remain viable and effective, We also found ways to use our communications
organizations must be prepared to change as resources more efficiently, resulting in an expo-
extensively as conditions require. nential increase in media coverage and visibility,
says Nayowith. For an organization whose stock
Prior to 1994, Citizens Committee for Children of in trade includes advocacy, the shaping of public
New York (CCC) had never drafted a strategic policy, and the dissemination of information,
plan. What the organization did have was a clear thats a very valuable payoff.
mission to ensure that every New York City
child is healthy, housed, educated and safe. A Final Word
Since its founding, CCC had applied a broad array
of advocacy tools to provide an effective voice It is important to understand the limitations as
for children and make sure children in every city well as the possibilities of strategic planning. A
neighborhood had the rights, protections and ser- strategic plan is not a wish list, a report card or a
vices they deserve, says executive director Gail marketing tool. It is certainly not a magic bullet or
Nayowith. With the approach of CCCs 50th a quick cure for everything that ails an organiza-
anniversary, we decided a strategic plan could tion especially if the plan winds up on the shelf.
help us clarify and recommit to our mission and
make sure we were using our resources to achieve What a strategic plan can do is shed light on an
the best possible results for kids. organizations unique strengths and relevant
weaknesses, enabling it to pinpoint new opportu-
From the beginning, Nayowith says, everyone nities or the causes of current or projected prob-
understood the importance of making this a par- lems. If board and staff are committed to its
ticipatory and collaborative venture. We knew that implementation, a strategic plan can provide an
serious changes were likely, and that change invaluable blueprint for growth and revitalization,
always carries risk. I think we all recognized that enabling an organization to take stock of where it
the best way to manage that risk was to make is, determine where it wants to go and chart a
sure we were all on the same page. course to get there.
10 briefing paper
Barry, Bryan. Strategic Planning Workbook for This basic hands-on guide is one of the best tools
Nonprofit Organizations. Amherst Wilder for explaining the strategic planning process and
Foundation, 1997. demonstrating how it can be implemented. The
ISBN: 0-940069-07-5 workbook was recently updated from its 1986 ver-
sion. It provides step-by-step instructions that are
Availability, $28 through the Wilder Foundation general enough to be tailored to most nonprofit
Publishing Center at 800.274.6024 bulk rates organizations yet detailed enough to provide spe-
available or http://www.wilder.org/pubs cific instruction and value. The workbook features
an overview, guidance through five strategic plan-
ning steps, three methods for developing a strate-
gy, a sample three-year plan, detachable work-
sheets and completed sample worksheets.
Bryson, John M. Strategic Planning for Public This book is a comprehensive discussion of strate-
and Nonprofit Organizations: A Guide to gic planning for the more serious planner/reader. A
Strengthening and Sustaining Organizational companion workbook is also available as a step-by-
Achievement (revised edition.) Jossey-Bass step guide to conducting strategic planning. This
Publishers, 1995. new version of the book addresses the leadership
ISBN: 0-787-90141-5 role in strategic planning and the ways in which
strategic thinking and acting can be embraced
Availability, $36: http://www.wiley.com or throughout an organization. It is not a quick read
877.762.2974 but is valuable for those most serious about strate-
gic planning.
Drucker, Peter. The Drucker Foundation Self- The Drucker Foundation Self-Assessment Tool:
Assessment Tool: Participant Workbook. Drucker Participant Workbook combines the best elements
Foundation and Jossey-Bass Publishers, 1998. of long-range planning and strategic marketing
ISBN: 0-787-94437-8 with a passion for dispersed leadership.
Eadie, Douglas C. Beyond Strategic Planning: The guidebook focuses on: the practical steps
How to Involve Nonprofit Boards in Growth and boards can take to play a meaningful role in the
Change. BoardSource (formerly National Center process; helping organizations identify key strate-
for Nonprofit Boards), 1993. gic issues; and implementing a plan to ensure that
ISBN: Not applicable each issue is fully developed and addressed.
Grace, Kay Sprinkel. The Boards Role in This best-selling booklet explains the importance
Strategic Planning. BoardSource (formerly of strategic planning and why board involvement
National Center for Nonprofit Boards), 1996. is essential. It discusses types of planning,
ISBN: Not applicable defines key planning terms and outlines a sample
process. The lesson discusses the importance of
Availability, $9 (members), $12 (non members): ongoing monitoring, evaluation and revision once
http://www.boardsource.org/Bookstore.asp or the plan is in place. A valuable primer for board
800.883-6262 members and executives who are beginning a
planning process.
Kibbe, Barbara and Fred Setterberg (for The Based on the Packard Foundations work with
David and Lucile Packard Foundation). nonprofit organizations and consultants over the
Succeeding With Consultants: Self-Assessment last decade, this guidebook provides nonprofit
for the Changing Nonprofits. The Foundation leaders with the basics of how to assess manage-
Center, 1992. ment and organizational capacity; when a consul-
ISBN: Not applicable tant may be needed and how to select and use one
effectively; and how to begin a process of organi-
Availability, $19.95 through The Foundation zational planning and change. In plain prose, this
Center at 212.620.4230 resource presents nonprofit executives with the
right questions to ask before engaging in a plan-
ning process. It introduces who consultants are
and what they do, how to select and hire one and
how to evaluate the consultant relationship.
Mittenthal, Richard. Effective Philanthropy: The This briefing paper provides insight into helping
Importance of Focus. TCC Group, 2000. foundations and philanthropies define a carefully
ISBN: Not applicable articulated purpose, a clear understanding of the
larger environment in which they operate and a
Availability, downloadable at carefully defined grantmaking program. With a
http://www.tccgrp.com or phone 212.949.0990 detailed look at the prerequisities to effective
philanthropy, this resource examines the neces-
sary ingredients for an organization to achieve
success.
Porter, Michael E. Operational Effectiveness Is Written by a leading thinker and writer regarding
Not Strategy. Harvard Business Review, competitive strategy in the business world, this
November-December, 1996. article pushes the reader to think about the dis-
ISBN: Not applicable tinction between doing work well and doing work
strategically. Porter argues that the essence of
Availability, $8.50 (Hard Copy or Electronic): strategy is choosing to perform activities differ-
http://www.harvardbusinessonline.com or ently than rivals do. A thought-provoking article.
800.988.0886
Stern, Gary. The Drucker Foundation Self- The Drucker Foundation Self-Assessment Tool:
Asessment Tool: Process Guide. Drucker Process Guide lays out the three phases of a full
Foundation and Jossey-Bass Publishers., 1999. self-assessment process and gives step-by-step
ISBN: 0-787-94436-X guidance.
Published 2002.
Richard A. Mittenthal is President of TCC Group. Laura Colin Klein, Affiliated Consultant, was instrumental
in conceptualizing and developing this paper. Special thanks also to Paul Connolly for his contributions to
this paper.