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Strategic Planning: Failures and Alternatives (/content/strategicplanning-failures-and-alternatives)
By Jan Masaoka Board Café (/category/topic/board-cafe) Feature Articles (/category/topic/feature-articles)
39 Comments (/content/strategic-planning-failures-and-alternatives/#comments)
Here is Part 1 of a two-article series on strategic planning and alternatives to strategic planning.
Strategic planning swept into the nonproÒt sector in the mid 1980s. NonproÒts were becoming seriously interested in
management techniques, and strategic planning -- along with meeting facilitation and fundraising training -- was a focal
point for that interest. Twenty years later, today no organization would dare say it doesn't have a strategic plan.
As the recession deepens, many nonproÒts now have strategic plans that they can't move forward on. Those plans aren't
helping them Ògure out what to do instead.
And even before the economic crisis, there has been widespread grumbling about strategic planning. Too often dozens of meetings fail to produce new insights.
NonproÒt sta× are often frustrated that "the strategic plan is never used," while many board members feel the strategic plan is simply a validation of what the
sta× is already doing or has decided. Executive directors often get going on new ideas long before the strategic plan is adopted, and by the time the document is
Ònished, it can feel like old news.
Organizations often undertake strategic planning "to get board members engaged" or "to get everyone on the same page," objectives which could be reached in
much more eÕcient, productive ways. Meanwhile, consultants make money (one nonproÒt consulting Òrm charges $200,000 for a strategic plan), and
foundations -- for whom the plans are mostly written -- read the plans with eyes glazing over.
This is not to say that strategic planning hasn't been a useful and e×ective tool for many organizations. Sta× and boards are often enthusiastic about strategic
planning discussions, and celebrate what they see as clearer goals, a document to give funders, and a sense of good work having been done. Good things that
often come out of strategic planning include:
In the process of establishing goals, issues around values and priorities -- which don't seem to come up in regular board or sta× meetings -- are often
raised and discussed.
A long process gives the executive director and the management team the time to think things out as they listen to evolving conversations.
Although it's often the wrong tool, the strategic planning process is usually Óexible enough that the real problems emerge, whether a problem executive
director, Ònancial
mismanagement, conÓicts between the board and the executive, racial tension, etc.
Unfortunately, addressing the issue through the strategic planning framework often confuses
the issue and makes it more diÕcult to resolve.
Board members like planning: it's creative, allows them to come up with new ideas (seldom
encouraged at a regular board meeting), discusses the environment (again, seldom discussed at
a regular board meeting), and gives them a sense that the board has a real function.
Strategic planning can be a vehicle for leadership to raise new ideas and ambitions. Too
often executives can't Ògure out how to initiate change within their own organizations in any way
other than the one they know, which is strategic planning.
This is to say that di×erent approaches are needed and are often better choices than traditional
strategic planning.
Problems with strategic planning
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(/)Aside from bad practices in strategic planning, there are two levels of problems with strategic planning. Let's look at some of the unsaid realities about
nonproÒt strategic planning as it actually takes place:
Strategic planning is often driven by funders, which means that from the nonproÒt's point of view, a key goal of the strategic plan is to produce a
document that will result in continued funding from that institution. (We know one funder that found that 80% of its capacity-building grants were for strategic
planning consultants.)
Strategic planning is frequently used to deÓect criticism or unrest, or used to delay decisions. Strategic planning is also used to justify putting decisions on
hold, or to avoid taking a stand or making a decision. "We can't get into staÕng issues/go into merger talks, etc., until we're Ònished with strategic planning."
And sometimes the delay itself results in problems deepening, and options narrowing.
In many cases strategic planning has become a ritualized process with elements of an improvisational play starring a high-paid consultant. Funders assign
(or signal) their favorite consultants to grantees, resulting in consultants who must be praised to the funders and plans that the funders will like. Discussions are
held in thoughtful tones while most participants secretly suspect that nothing will really be decided or changed. But like people at a restaurant with dreadful
food, no one wants to say anything in case everyone else is happy.
But even when these issues aren't at play, there are some deeper problems with strategic planning as it's practiced in the nonproÒt sector.
First and perhaps most importantly, most strategic plans do not take Ònancial sustainability seriously. As recent evidence, a 2009 book on strategic planning
from a well-known nonproÒt publisher not once mentioned money, sources of income, revenue strategies, or Ònancial viability. And many of us are all too
familiar with the plaintive comment, "We've Ònished our strategic plan, but now how do we get the money to carry it out?"
In fact, Ònancial sustainability needs to be at the core of planning and the establishment of goals. But neither should a strategic plan simply be about following
the money. Strong executives steer planning discussions along the lines of Ònancial viability, but discussing revenue strategies and opportunities should be an
essential, explicit part of strategy.
This shocking neglect of Ònancial viability is part of a second, larger problem with strategic planning these days: it focuses on goals, but seldom touches on
HOW to achieve those goals. For instance, a plan might be to restore 800 acres of wetlands, but fail to identify the strategy to achieve that restoration (volunteer
e×orts? corporate funding? legislation?). The goal might be to increase individual donations by 300%, but how will we do that (through individual donations,
direct mail, special events?)? It's easy to say, "That will be worked out in the operational plan," sidestepping the real strategic issues of choosing among those
vehicles.
Third, strategic planning often fails to build analytic capacity or relationships for the organization; instead, these are often beneÒts to sole-practice consultants
or other for-proÒt Òrms. There is obviously a value in having an outsider interview some key community players, but is it better than the relationships and
nuanced content that would result from having the organization's leaders -- sta× and board -- hold those discussions?
A fourth, common, large Óaw in strategic planning is that the big questions can still be unanswered and vague at the end of the process. For instance, after a
long process and a 20-page document, board members are still wondering to themselves, "So are we going to close our branch oÕce in SpringÒeld or not?"
Finally, too often confusion, disagreement and Ònancial problems are mistakenly attributed to the lack of a strategic plan. If we know more about alternative
frameworks and processes, it's possible for us to identify issues more sharply, and to make the continuous strategic decisions that must be made.
Next issue: Alternatives to Strategic Planning
Jan Masaoka is editor of Blue Avocado and co-author of NonproÒt Sustainability: Making Strategic Decisions for Financial Viability
(https://www.amazon.com/NonproÒt-Sustainability-Strategic-Decisions-Financial/dp/0470598298/189-1758619-2403556?
ie=UTF8&qid=1288374792&ref_=sr_1_1&sr=8-1) (Jossey-Bass, 2010). Thanks to Mike Allison and Steve Zimmerman for assistance with this article.
See also in Blue Avocado:
A rebuttal to this article: In Defense of Strategic Planning (http://www.blueavocado.org/www.blueavocado.org/content/defense-strategic-planning-rebuttal)
Part 2 to this article: Alternatives to Strategic Planning (http://www.blueavocado.org/content/alternatives-strategic-planning)
Critical Path for the Board (http://www.blueavocado.org/content/critical-path-board)
NonproÒt Business Model Statements: Companions to Mission Statements (http://blueavocado.org/content/nonproÒt-business-model-statements)
Comments (39)
Like 42
Anonymous
This article is spot on! Many thanks for raising these issues. As consultants we frequently feel pressure to conduct 'Strategic Planning' and
have to work hard to help non-proÒts realize that a lot of time can be saved focusing on the critical issues without going through the whole
horse and pony show. We constantly promote the concept of Ònancial sustainability and how important it is to balance to the Mission
bottom line as well as the Financial bottom line.Feb 22, 2011
We o×er Capacity Building and Sustainability as alternatives to SP - neither term is completely accurate however we also have to use a term
that funders will 'endorse'. If the SP mantra will not go away, we use Strategic Direction which equals some targeted components of
traditional SP + robust implementation (which does include the resource impact analysis - both Ònancial and human resources).
In another article would you please also tackle the pros and cons of 'needs assessment / environmental scan'? This is another area where
vast amounts of time and monies are expended with frequently zero net gain.
reply (/comment/reply/618/4096)
Feb 22, 2011
Jan Masaoka
Thank you, Anonymous, for your comments, and for the idea of tackling the "needs assessment/environmental scan"
sacred cow! Jan
reply (/comment/reply/618/4103)
Jan 25, 2013
Anonymous
Jan, I am sick of the term "strategic planning". It is tiresome. Are there any other terms to describe the
process of planning?
reply (/comment/reply/618/22165)
Jan 26, 2013
Jan Masaoka
Me, too. And actually, most "strategic plans" are actually "long-term plans," rather than
outlining a strategy. I suggest "strategy document" instead of "strategic plan" and,
dependin on what questions you're addressing in the planning process, perhaps
"business strategy re-vision," "strategic learning agenda," or "strategy development"
instead of "strategic planning."
Good luck! Jan
reply (/comment/reply/618/22168)
Feb 22, 2011
Anonymous
"There is obviously a value in having an outsider interview some key community players, but is it better than the relationships and nuanced
content that would result from having the organization's leaders -- sta× and board -- hold those discussions?"
In my experience, consultants from outside the organization are able to cut through the "happy talk," of sta× and board members and get
to the core issues in a way that spares relationships. Too much insularity is a recipe for delay and a lack of engagement with the external
environment. Organizations need challenge in the form of the external community, be it consultants or external stakeholders. Without that,
old patterns of acting, vested interests and founders symptoms take hold. The idea that the organization's operations are too precious to
examine is allowed to Óourish and no strategic plan created internally can overcome this pattern strongly enough to revitalize the
organization's capacity.
reply (/comment/reply/618/4097)
Feb 22, 2011
Anonymous
Wonderful points! Glad you are openly discussing these issues. I've seen where strategic plans work...and where they have not. The
problems were when agency leadership (board and executive director) didn't understand importance of process and cut corners due to
Òscal/time constraints, muddling through piecemeal. And/or where the executive director had an endpoint already in mind and controlled
process details.
reply (/comment/reply/618/4099)
AnonymousFeb 22, 2011
I love Blue Avocado! Thank you Jan for another great article! We just went through a strategic planning process, which hit all the positive
aspects you mention, but which also left me wondering as the ED, what is our organizational vision for the next Òve years? Do we foresee
an oÕce in X town, increasing oÕce hours or sta× at our Y oÕce?
Unfortunately, we are still operating in survival mode, as we have been for the past two years, and my time and attention as ED, board
members' time, etc. is stressed and we still lack the ability to stand back and see the big picture together. For me it comes and goes as I
switch hats and regret not being more on top of one thing or another.
As a small (3 sta×) non-proÒt service organization, I cannot seem to get back out in front of the grant cycles before all of a sudden we need
to throw our energy into local fundraising just to get through the next couple months before another grant comes in.
As you stated so clearly, we left the details of our plan to me, or a committee led by me, to Óesh out in an annual work plan, which I can't
seem to Ònd the time to focus on. We also left the Ònancial planning piece out entirely. There's a budget in the plan, but just number
targets with little strategic thinking, per se, behind them.
Anyhow, thanks for nailing this one! Any chance you can address the idea of ED support groups?
reply (/comment/reply/618/4101)
Feb 22, 2011
Roxane George
Thank you for this article. I agree with the author that strategic planning is all too often hugely expensive and time consuming, and results
in an unused, even unusable, product. I use a strategic planning process based on the ICA technology of participation method. It takes two
days of meeting time and produces a shared vision, strategic directions for the next 3-5 years, a timeline for speciÒc accomplishments to
move the organization toward the strategic directions, and concrete, detailed implementation plans for accomplishments for the next 90 -
180 days-all keyed to the organization's mission. This process begins with some form(s) of organizational reÓection-historical scan, SWOT
analysis, overview of available resources, etc. - and assumes that knowledge is in the room. I do not conduct interviews with key
stakeholders except for process design purposes, as I Ònd this less than valuable, but the strategic plan process includes safe group work
on underlying contradictions, which is much more useful and leads the group to identify and discuss organizational issues together, rather
than behind each other's backs. The process identiÒes funding needs for implementation and can include fundraising accomplishments,
however, I believe a separate fundraising/marketing plan that works from the Strategic Plan is a good way to go. The whole thing,including
planning, set-up, materials, facilitation time, and follow-through, is highly a×ordable. Roxane George roxanegeorge at earthlink.net
reply (/comment/reply/618/4102)
Feb 22, 2011
JDK
I also use a two-day intensive process with the board, key sta×, and sometimes key stakeholders with the goal of gaining
consensus around Vision, Values, Mission, and three-to-Òve consensus objectives/strategies. I call that the strategic agenda
as opposed to a strategic plan. To my way of thinking, the board sets the agenda (shades of Carver) and it is the
responsibility of sta× (employee and/or volunteer) to develop the plan. A plan is not a plan until there are expense and
income numbers attached to it. The board should then evaluate the annual budget, which is the expression of the
objectives/stategies/actions, as to how that budget and work plan relate to the strategic agenda. Every year at one board
meeting, the focus should be on scanning the environment to see how its changes have a×ected the strategic agenda. This
should be done before the sta× begins to prepare the next annual budget. How the annual budget and work plan relates
to the strategic agenda is also a good way for the board to evaluate the executive director. JDK
reply (/comment/reply/618/4126)
Feb 22, 2011
Anonymous
Jan, you couldn't be more right on with this article. I once worked with an organization where, after the strategic plan was drafted, the
"powers that be" sent it back and insisted that we remove all reference to "the how." There was to be no mention of Ònancial sustainability
in the plan! Thanks for starting this important discussion.
reply (/comment/reply/618/4105)
Feb 22, 2011
Anonymous
Thanks for the straight talk on planning! My small organization did an abreviated planning process that was very helpful to us internally.
The problem - some of our funders didn't understand this shortened process or our reasons for it. They wanted the long, involved process
and expensive consultants with which they were familiar, regardless of the fact that we didn't have the time or money for it.
reply (/comment/reply/618/4109)
Anonymous
Please hurry with the second part of this article. We need it NOW!!
reply (/comment/reply/618/4110)Feb 22, 2011
Mar 02, 2011
Anonymous
Anonymous speaks for me!! I am eager to see the rest of this series.
reply (/comment/reply/618/4178)
Mar 24, 2011
Anonymous
Ditto, I'm waiting for part two! We're getting ready to tackle a three year operations and business plan, and want to see
your advice before we jump!
reply (/comment/reply/618/4559)
Mar 24, 2011
Jan Masaoka
Friends: Part 2 was published on March 15, 2011, and can be found at
www.blueavocado.org/content/alternatives-strategic-planning
(http://www.blueavocado.org/content/alternatives-strategic-planning). In that same issue you can also Ònd
a rebuttal to this article, written by Mike Allison. Thank you all for writing! Jan
reply (/comment/reply/618/4561)
Feb 22, 2011
Leyna Bernstein
Great article, Jan. I look forward to reading Part 2. The strategic planning process has become the universally accepted cure for a wide
range of organizational ailments. It's like treating a broken leg and diabetes with the same therapy.
As planning (hopefully) evolves to include more focus on how to sustainably support the work, I hope we see an increased emphasis on
assessing the competitive landscape. Who else is doing this work? I'm working with an organization, that, as a result of strategic planning,
decided to close one of their programs. I wish we saw more of this deciding "not to do" as outcomes of planning.
reply (/comment/reply/618/4114)
Feb 22, 2011
Jim
Jan has raised some concerns with strategic planning that all of us who have been a part of the process have experienced. I have
participated as an executive director, a board member and as a consultant. As the latter, I have actually tried to suggest di×erent means to
accomplish the process of visioning and laying out a plan to direct an organization toward outcomes. What I have found is that all of the
organizations that I have helped look at the process like it is a root canal and to Jan's point only go through it to please funders. On the
other side, the grants oÕcers from funders that I have worked with are not skilled at assessing the complexity of an organization's plan. So,
a vicious cycle continues. The plans that work tend to be simple and above all are integrated into the very fabric of the work of the
organization from sta× meetings to board meetings. I often stress also that the process of planning is often more important than the actual
plan itself as long as the board and sta× identify this and realize that no matter what type of document is produced it is to be an organic
document that is able to live and breath within the dynamics of the organization's culture. Thanks for bringing this topic into the light Jan.
Jim
reply (/comment/reply/618/4119)
Lloyd Gardner
Thanks for another thought-provoking article. My experience is that strategic planning processes and outcomes are inÓuenced to a great
degree by the size and governance arrangements of the organization. Most organizations, especially small non-proÒts, are not designed as
learning institutions, and as such, the strategic planning exercise is the only opportunity to undertake any serious evaluation of programs.
Linking program or institutional outcomes to a long-term goal (determined by the objects and purposes for which the organization was
established) requires that the organization maintains an institutional development program. This requires dedicated professional sta×,
management support, and board engagement. Most small non-proÒts simply do not have the necessary resources to design and
implement such a program. Maybe one of your future articles could address the issue of the impact of institutional design on sustainability.
Lloyd Gardner Foundation for Development Planning, Inc.reply (/comment/reply/618/4120) Feb 22, 2011
Feb 22, 2011
Anonymous
WIlliam H. Starbuck, a scientist who studies organizational behaviors, has repeatedly stated that strategic planning (in a corporate setting)
is a waste of time and resources. Eric Abrahamson and David Freeman, in their book "A Perfect Mess: The Hidden BeneÒts of Disorder"
discuss Starbuck's take on strategic planning: "It's not as if no one had ever examined the value of formal planning. Numerous studies have
demonstrated that strategic planning works. Except that when Starbuck reviewed them, he found the studies typically involved interviewing
senior managers to ascertain how useful they thought their strategic planning was. And what do you know? Strategic planners tended to
Ònd their strategic planning very useful. For a more objective assessment, Starbuck reviewed data on how a corporation's proÒts fared as
compared to the amount of strategic planning the company had engaged in. The results: companies that did a lot of strategic planning
performed, on average, no better than companies that did less strategic planning."
Jan's article is a good summation of the value--and pitfalls--of strategic planning. Instead of embracing it mindlessly because it's what this
or that funder wants to see, organizations would do well to consider other means of achieving the positive results which can come from the
process, and avoiding the costs and detours inherent in it.
reply (/comment/reply/618/4121)
Feb 22, 2011
Nancy Fastenau
I use the Technology of Participation (ToP) Participatory Strategic Planning method. It addresses many of the common problems in
Strategic Planning and still requires time from sta× and stakeholders and a continual reÓection and revision strategy on the part of the
organization to ensure movement. I also recommend using an outside facilitator so all sta×/Board, etc. can fully participate. I also
encourage the prep work like environmental scans or trends analysis - many of these can be done by volunteers or by the group as a
whole. The more diversity the better the resultant plan. It starts with Preparation and Design, then moves to create a Practical Vision (3-5
years). The group then addresses the Underlying Contradictions - what is blocking them from achieving their vision. This part is often
overlooked as well since you have to consider reality. It also doesn't let folks use "lack of" as a block - they have to look deeper and say why
XXX is a block or contradiction. Then the group is ready to look at Strategic Directions - broad stokes that indicate direction and action. The
last phase is the Focused Implementation where an actual action plan for the Òrst year and the Òrst 90 days is created. The best part of this
is that everyone participates to create the plan, the facilitator does only that - facilitate. She does not impose speciÒc ideas or actions but
provides tools the group can use to create their own. Anyway, I think they work well and really energize the group and get buy in for the
plan. It is still the responsibility of the group to carry the plan forward and do what they say. That can certainly be "the rub". I have done
this with large groups and small groups. It needs to be a dedication of time - maximum 2 days, minimum 1 day with a half-day follow up. Of
course the facilitator charges, but it certainly doesn't have to be expensive. I applaud organizations that take the time to Ògure out where
they are going and how they plan to get there. Nancy Fastenau
reply (/comment/reply/618/4123)
Feb 23, 2011
Morrie Warshawski
Jan, thanks for this thought provoking article. I hope it generates a healthy dialogue around strategic planning, and I can't wait to read your
next article on Alternatives! I am surprised by the statement that "...most strategic plans do not take Ònancial sustainability seriously." In
my own practice I've noticed that in the last year especially, Ònancial sustainability is often the only thing a group wants to talk about! The
Recession has had a deep and profound e×ect on the sector and on the nature of planning. My groups have become more pragmatic and
practical than ever. I'd be interested in hearing the experiences of others around this as well. Morrie Warshawski
reply (/comment/reply/618/4130)
Feb 23, 2011
Sarah Milligan-ToÖer
Oh no! Do we really have to wait until the next issue to get some ideas on alternatives to strategic planning? I'm in the midst of pulling
together a strategic planning session for our board right now. I couldn't agree more with the issues raised in this article, but really want
some ideas for practical alternatives. If anybody has ideas that have worked for them, I'd be grateful if you'd share them! - Sarah MilliganToÖer
reply (/comment/reply/618/4134)
Jan Masaoka
Thank you readers, for these thoughtful comments. Of course, strategic planning works for some organizations and for these: don't Òx it if
it isn't broken. And like any process, strategic planning can be done badly or well; I'm trying to address the concepts behind strategic
planning, not just how it is practiced at its most medioxre. One of my observations is that a great executive director and a great board chair
can make ANY process serve the organization well.
Next issue (March 15) I'll write about some atlernatives to strategic planning, and some of you have already touched on some alternatives.
And -- if everything goes as planned -- we'll also be including a rebuttal to this article. Janreply (/comment/reply/618/4139) Feb 23, 2011
Feb 24, 2011
Don
Dear Jan, You rock! Very, very thoughtful article -- and comments. SP's are based on predictability. And, we all know what a myth that is.
Thank you. Don
reply (/comment/reply/618/4141)
Feb 25, 2011
Karen Eber Davis
Thanks Jan, as a consultant, I've been doing strategic planning with an emphasis on income solutions for several years with great success....
but to get beyond "what do we want to be next" to "how we will do it" requires more commitment and investment than a done-on-Saturday
deal.
Many leaders don't expect much out of sp (for good reason) and therefore don't invest much and .... get what they expect. Good sp takes
people out of their comfort zone and asks them to think deep and hard about their future.
Perhaps you will cover this in part 2, but there is great potential in changing sp from a-time per-year event to something more frequent. On
my website there is a 12 month board plan to help a group do some strategic planning each month which may be of interest.
reply (/comment/reply/618/4153)
Feb 25, 2011
Tove Rasmussen
To my way of thinking, strategic planning is what you make it. It can be a convoluted process that results in nothing that is di×erent or used,
or it can ensure the organization take time to look at the trends, decide on what is critical, and ensure it is focused on those items. A key
issue for non-proÒts today is funding, given the decrease in government funding. That is part of the strategy - funding is the lifeblood of an
organization, a critical item, and something that needs a solid, realistic and attainable strategy and action plan. The key is to have a
practical process that will yield an actionable plan. The basis of strategic planning is: where are you now? Where do you want to be? How do
you get there? That is the core of it. I am impressed with the discussion here, dealing with the realities of strategic planning. Best, Tove
Rasmussen http://www.thrivebusinesscoachingandconsulting.com/about-thrive-business...
(http://www.thrivebusinesscoachingandconsulting.com/about-thrive-business-coaching-consulting/)
reply (/comment/reply/618/4155)
Feb 27, 2011
Amy Erickson
Thank you for this article! I frequently ask "how" during planning. "How will you sustain the plans you are making?" "How will you
accomplish your objectives?" "How will you recognize success?" I also believe any planning process needs to address human adaptive
capacity needed for success.
I'm looking forward to your March 15th article!
reply (/comment/reply/618/4164)
Feb 28, 2011
Anne Green
Thank you Jan for a great article. You, and many of the people posting comments have hit the nail on the head with the challenges around
setting strategic direction. I have been lucky enough to work with both large and small nonproÒts in strategic planning, and have found that
size does not matter--strategic planning can be a boon or a bust for all sizes of nonproÒts. I Ònd myself going back to many of my clients (I
can't help it!) to Ònd out if the "Ònal plan" has been put on a shelf, or whether it has made any di×erence to the impact or sustainability of
the nonproÒt. To me, success, (beyond the actual process of the plan,that I Ònd extremely helpful as long as there is active participation by
both sta× and board members) comes with the follow-up by ED's, Boards and sta×. As Jan mentions, a great ED and Board Chair can keep a
plan alive--used for both evaluation of the sta× as well as an assessment of the board's engagement and oversight. And, lastly, all plans
should be Óexible, with necessary changes thoughtfully made as the environment--both internal and external--throws it's bric-a-bats our
way. Anne Green, GriÕn Green Consulting, NYC and beyond.
reply (/comment/reply/618/4169)
Mar 01, 2011
Anonymous
This article is excellent and echos my experience. The successful strategic planning processes I've been a participant in are not only well
facilitated, but thought through all the way from pre-planning to what the output will be....thanks for the excellent insights.
reply (/comment/reply/618/4172)Mar 04, 2011
jjakopic
All too often what passes for strategic planning is a funder driven requirement that the organization tolerates which produces a consultant
driven plan that works really well as a door stop but not as a guide to the work of the organization.
On the other hand, I think that sustainability and strategic planning are crucial to the long term success of any organization - non-proÒt or
not. However it only works if it is driven by the organization, clearly strategic, tied to targeted results which are measured and revised, and
considers not just Ònancial resources but also human resources (to which most Ònancial resources go) and community resources (where in
the non-proÒt sector, is usually where the e×orts are targeted). A good planning process provides ongoing measurement of progress and
support to the planners in making the progress they determined they wanted.
reply (/comment/reply/618/4182)
Mar 04, 2011
Sue Knaup
Thank you so much for this article! At One Street, many of the organization emergencies we respond to are tainted by a demand for
strategic planning. Sometimes this demand comes from an abusive funder trying to gain control over the organization. Other times it
comes from an individual within the leadership team with big plans for upheaval and personal gain. You touched on such abuses
wonderfully. It's too bad that your article is so unusual still, but I can sense from all the great and supportive comments that you are
helping to turn the tide. I just hope some representatives of major funding organizations read this as well. Sue Knaup, Executive Director
One Street http://www.onestreet.org (http://www.onestreet.org)
reply (/comment/reply/618/4183)
Mar 05, 2011
Anonymous
I can't wait to hear your suggestions for alternatives to the traditional strategic planning process. As a non-proÒt executive, I've seen sp
result in the alienation of both board members and sta×, and have never witnessed it have a positive outcome. I've also noticed that most
those who are proponents of strategic planning are facilitators themselves rather than non-proÒt executives. If our organization's funders
aren't requiring it, and our board members are highly engaged already, is it still necessary? In this case I tend to follow the "if it ain't broke,
don't Òx it" school of thought. For several years I've regarded traditional strategic planning an outdated, old-school stand-by that inhibits
innovation and growth rather than encourages it. I think there must be much less disruptive ways to ensure organizational success and
evaluate an executive's performance than strategic planning.
reply (/comment/reply/618/4185)
Mar 08, 2011
Bill Huddleston
Jan, Great article, thanks. In terms of the comments about Ònancial viability sometimes being ignored by strategic planners, as well as the
importance of community feedback, both are areas where workplace giving's beneÒts can be of value to a non-proÒt. Workplace giving,
such as the Combined Federal Campaign (CFC) remains the only type of non-proÒt fundraising that is subsidized, low-risk and high
leverage. Once a revenue stream is developed, the monies that come in are unrestricted, reliable and predictable, assuming the non-proÒt
takes some basic steps to ensure this (like saying thank you to the all 3 types of supporters - most non-proÒts only thank one type).
Secondly, if a non-proÒt chooses to particpate in charity fairs, they have an excellent opportunity to build community feedback/awareness
questions into their workplace giving campaign. Whether it is paid sta× or volunteer sta× that participates in the charity fairs, they are all
equipped with the same tools - two ears and one mouth. This ratio is important, implying how much listening one should do, versus how
much talking. Since you're sending sta× out into the Òeld anyway, ask them what the potential workplace giving donors, who are active
members of your community, know about your issue and your non-proÒt's role in it. It's less expensive than a consulant and it gives your
sta× practical, hands-on experience in listening and speaking to members of your community. Regards, Bill Bill Huddleston The CFC Coach
www.cfcfundraising.com (http://www.cfcfundraising.com) [email protected] (mailto:[email protected]) P.S. In terms of
actual giving, if the CFC were a foundation, it would be the 10th largest foundation in the US. Isn't actual giving a better measure than asset
size?
reply (/comment/reply/618/4192)
Mar 15, 2011
Anonymous
Jan: You've described POOR PLANNING to a T. I view your use of a broad brush like that for ALL strategic planning to be a) beneath you, and
b) very detrimental to the 51% of nonproÒts who have NO plan for the future.
GOOD PLANNING is the antithesis of what you describe here. It does take into consideration Ònancial sustainability as one of its key
components. It IS used by Board and Sta×. It DOESN'T cost $200,000. It is NOT vague, leaving questions unanswered. It DOES have a series
of measurable action steps and an accountability system.
From what I read from other posters here, most of you have experienced BAD PLANNING, and don't understand the power of a compelling
vision coupled with strategic directions and speciÒc action steps.
reply (/comment/reply/618/4245)Mar 17, 2011
Anonymous
(Finally getting around to reading this. )
Spot On.
Years ago I got frustrated with a strategic planning process for an organization providing Internet services to the community. The problem
was that in the 1990s, the Internet was changing every year (every month??). We decided to do a much shorter "Strategic Direction"
process--generally, what is our mission and vision, what are our values, and what what we wanted to accomplish in the next 18 months.
A few years after than, I organized a session at the NonproÒt Tech Conference on "The Top Ten Reasons to Not Do a Technology Plan."
reply (/comment/reply/618/4504)
Jul 08, 2011
Morrie Warshawski
Wanted to let you know that I've also put a link to it on my LinkedIn Group STRATEGIC PLANNING FOR NONPROFITS. If you are a member of
LinkedIn you might want to join the group and see a number of the Discussion threads we've had on planning the past year. Best, Morrie
Warshawski www.warshawski.com (http://www.warshawski.com)
reply (/comment/reply/618/7916)
May 20, 2016
Mike
Wonderful points Jan! I know I am posting almost after 5 years since the article was written, but I think the points you have mentioned are
still valid and PArt 2 of this article was even better!! Keep writing Jan.
Regards
Mike from Personal Financial Planner (http://www.Ònanc.in/10-reasons-why-you-should-hire-a-Ònancial-planner/)
reply (/comment/reply/618/79762)
Jul 08, 2016
balexandros
Thoughtful article, Jan! No doubt the debate between the for and the against crowd will rage on forever. One of the hidden themes or
questions that remains to be answered thoroughly is "So, what's next for strategic planning for nonproÒts?" I've tried to answer that in a
di×erent way to get to a more satisfactory answer. I created a site that I've invited all mission-driven orgs to visit over at
www.nextnonproÒt.com (http://www.nextnonproÒt.com) My Òeld of origin is a little di×erent. I'm more from the design and innovation side
of things, so in lots of my research and "reverse engineering," I've listed nearly 20+ items to help people move beyond the strategic
planning conversation. What's not being addressed is that we're seeing more of an intersection between strategic planning, and lean
startup, design and innovation.
reply (/comment/reply/618/79884)
Andrea
Hi Jan --
I am a strategic planning consultant. My training and experience are largely in resource development; my strategic planning work grew out
of my frustration with bad fundraising. I see strategic planning as a means of creating the conditions for excellent community engagement;
clear story of impact, compelling and feasible program plan, an operational plan that really takes stock of how to build and sustain an
organization for fulÒlling our program aspirations. As a fundraiser, I know that all this enables me to stop shooting from the hip with
donors. I know what we are aiming to accomplish, how we will do it, by when. I know what it will cost. I know where the gaps are, what we
still are hoping to learn, where there is uncertainty. I can tell a great story about not only the kind of Ònancial support we need, but the kind
of expertise we would love to connect with via partners or smart people. I can involve my board in the engagement of donors because they
GET it. They crafted the strategy and they own it.
Toward the tail end of the process, I work with the client to develop a detailed development strategy which is built o× an understanding of
our revenue model (thanks to you for your good work here). Because the plan lays out the capacities we need to invest in and costs those
out, we combine revenue growth in the existing channels with upfront capacity investments that we seek from major donors, or from an
institutional capacity funder, or some combo of net assets and dedicated capacity building contributions. This funding is used to give us a
runway to a better/more fundraising and communications or other important eÕciencies that will help us get further without having to do
it on the backs of over-worked sta×.
I observe that a lot of the burning institutional (but often superÒcial) questions get answered in the process. In the course of the process,
we Ògure out what it's going to take to move out of maintenance mode. The people on the board who are not game generally excuse
themselves about this point or soon after.
My experience of planning is that it is much bigger than "a plan." I'd call it a reckoning. What does our community need of us now, and what
are we willing to do about it? Do we have the moral courage to lead. And if so, then what technical expertise and support will enable us to
deliver. So many planning processes stay at the technical level -- and at the end, the organization has a plan to make a plan. "We will learn
what the needs are and meet them." It is maddening to see that.
So while I concur that so much strategic planning really sucks. Not only is it cookie cutter, I believe that it aims at the wrong thing and is
therefore self-referential and shallow.More information about text formats (/Òlter/tips)
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