Insights on Strategic Planning for Nonprofit Organizations ? Part 1 |

[By?Arturo J. Bencosme-D?vila, CPS Affiliate Faculty with the Master of Nonprofit Management and Dual Language program] ?This is the first in a series of postings on strategic planning in the nonprofit sector. While borrowed heavily from the for-profit world, the approach described here has elements that are specifically useful for nonprofits. It comprises four parts and is based on several major references:? Collins & Porras (2007)[1]; Kaplan & Norton (2007)[2]; Niven (2003)[3]; and Bencosme (2013)[4].

I.???????? Visionary Part: ?This is the alignment station in the process. Clarifying the values that the organization believes in and the purpose that it serves constitutes the starting point. A mission statement will express how values and purpose will be manifested. Next, a portrait of the aspired long term future that results from accomplishing the mission is composed in a vision statement. Finally, visionary objectives embedded in the vision are translated into goals.

II.???????? ?SWOT? and Scenario Analysis Part: ?It refers to scanning for strengths, weaknesses, opportunities and threats.? Even though this is a traditional strategic planning tool, it can be far more complex in nonprofits than is for-profits. The organization?s current reality relative to its aspired future is assessed. This sets the stage for developing strategies under several scenarios.

III.???????? Strategy Part: ?A set of mutually supporting themes that will drive the organization to materialize its visionary goals is constructed now:? one theme for each visionary goal. In turn, the themes are translated into strategic enablers from four perspectives namely, beneficiaries and the community, financial accountability, internal processes and organizational learning and growth. The set of measurements for these enablers is a ?balanced scorecard?.? Interconnecting them through causal relationships supporting the strategic themes produces a ?strategy map?:? a powerful, visual tool for becoming a strategy focused organization. Naturally, these maps will be different in nonprofits from their for-profit counterpart.

Transcendence Part:? It consists of story telling the future of the organization to surface and to engage the organization members through grasping meaning in the organization?s trajectory: past, present, and what might lie ahead. The hero?s journey archetype is used as a story guiding pattern to bring an epic spirit to the organization. Just as is important to know:? what is being strived for -a sense of vision; why that is wanted -a sense of values, purpose and mission; and how to strive for it -a sense of strategy;? being mindful of the path of the organization over time is meaningful, specially for nonprofit organizations ?a sense of journey.

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[1] Collins, J.C. & Porras, J.I. (1996): Building Your Company?s Vision.? Harvard Business Review.? September, 1996.

[2] Kaplan, R.S. & Norton, D.P.: ?Using the Balanced Scorecard as a Strategic Management System.? Harvard Business Review. Managing for the Long Term.? July-August 2007

[3] Niven, P. (2003):? Balanced Scorecard Step-by-Step for Government and Nonprofit Agencies. ?John Willey & Sons, Inc.

[4] Bencosme (2013):? Committing to a Shared Epic Intent ? Organizational Learning along the Hero?s Journey. [Forthcoming]

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I ? THE VISIONARY PART

The essence of truly powerful visions is formed by the values, purpose and mission underlying it. Values refer to the deep-rooted fundamental beliefs with which the organization identifies itself. They are worthy in and by themselves and have to be identified, defined and their utilization explained through principles. For example, if TRUST ?is one such value, the definition utilized by the organization could be:? the quality of believing into something or someone. And in our organization: ?We build our all relationships on trust? (a principle). Only a handful of values (no more than nine) need to be considered:? those that matter the most to the organization?s identity.

A mission statement describes what the organization offers to its beneficiaries: products and / or services. On the other hand, is necessary to be mindful that missions constitute a particular way of manifesting the purpose of the organization. For example, a nonprofit that provides personal growth tools to inmates in prisons (its mission) contributes in this manner to the wellbeing of those individuals and that of society at large (its purpose).

Mission statements are important to any organization and even more so for non-profits which are frequently referred to as ?mission driven organizations?. This contrasts with the for-profits, which are driven by ?stockholder wealth? optimization.

While mission statements are useful because they clarify what the organization delivers and separates that from what it does not, ?only a shared vision of the successful future of the organization will bring about the alignment needed to accomplish the mission. This insight can mark a valuable difference in organizational leadership. To that end, a useful, effective vision needs to be constructed that will be congruent with the values, purpose and mission.? Visions take the form of? a detailed, vivid narrative -a portrait painted with words- of what will be like and how will feel having attained the goals of the long term, overarching? goals of the organization. The latter are called visionary goals.

There seems to be several routes to develop a vision. One such route starts with establishing the goals and then writing the narrative. A practical procedure for following this route is offered by Collins & Porras (1996)[1]. The opposite route starts with a narrative and then extracts the goals from it. This route relies more on the intuition of those following it. In either case, the important result to obtain is a set of worthwhile goals that invite stretch, are feasible (but not certain), measurable, timely and totally congruent with the underlying essence of the vision: values, purpose and mission.

Next month I?ll present Part II,??SWOT? and Scenario Analysis. We welcome your comments.

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[1] Ibid.

Arturo J. Bencosme-D?vila is an independent management consultant and coach, an affiliate faculty with CPS, Dual Language Program, Master in Nonprofit Management, and a CPS Ignatian Faculty Scholar.? His 35+ year path through engineering, business & nonprofit executive, strategic planning, organizational development, MBA teaching, and management consulting have led him into emphasizing organizational learning: the art and practice of expanding the capacity for clarifying the desired future and the means to attain it.

His education includes an Engineer degree from Universidad Cat?lica Andr?s Bello (Caracas, Venezuela), and two M.Sc. and a PhD from Stanford University.? ?Dr. Bencosme?s ?personal legend? includes the intent to reinforce the epic spirit in individuals and organizations, especially in the nonprofit sector.? His favorite Jesuit value is to be a ?contemplative in action?.

Source: http://cps.regis.edu/blog/insights-on-strategic-planning-for-nonprofit-organizations-part-1/

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