Is there such a thing as the perfect strategic plan for not-for-profit organisations?
We are fortunate to often be called on to support not-for-profit (NFP) organisations with the process of creating a new strategic plan.
As an organisation that is curious about how people and organisations work, we find it a fascinating process to observe—watching how leaders seek to connect their purpose and strategy.
With that in mind, here are some reflections on the strategic plan process in NFPs that should have relevance to NFP leaders. While some not-for-profits may already be doing this, for others it may mean refreshing their approach next time the strategic planning cycle rolls around.
What is the difference between developing and delivering a strategic plan?
Developing a strategic plan in a not-for-profit is the easy part — it’s the implementation (delivery) of the strategic plan that you need to focus on, as this is how your not-for-profit will create impact.
We’ve seen many different methods of formulating a strategic plan—some better than others, but almost all of which lead to a nicely designed document with some meaningful actions that most people agree with.
What is clear is the varying extent to which these plans can be genuinely ticked off 3 to 5 years later with their objectives achieved and their vision realised.
Rightly or wrongly, the act of developing a strategic plan is often met with more enthusiasm and intellectual grunt than the process of delivering it. Once the staff surveys, management workshops, market research and SWOT analyses are completed and the document is published for all to see, those valuable conversations about where the organisation is heading and how it gets there often end too.
It’s difficult to engage stakeholders and meet expectations
The pace of planning and change has been particularly high for many NFPs over the last few years as a result of sector reforms. There appears to be a general tendency to more planning and re-planning with little time to deliver.
Staff within organisations and the beneficiaries of an NFP may feel that they get to have their say every few years, but their ideas for change don’t get actioned in the 3-5 year planning term.
Engaging with both internal and external stakeholders during strategic planning is a crucial step if done well, but can be damaging at either end of the continuum—either a lack of engagement which results in limited insight and subsequent buy-in, or too much open-ended or free-form engagement which can lead to overambitious goals, mission creep (i.e. a disconnect between strategy and purpose) and mismanaged expectations.
Strategic planning is a balancing act
Strategic planning requires an understanding of where an organisation fits within the context it operates, as well as being able to look ahead and predict what the future might bring.
It means forming an objective and fact-based view of where the organisation is currently, while at the same time creating a vision of what the ideal organisation looks like.
And it needs to tread a fine line between steering a ship that stays on course through both calm and stormy waters, while also remaining flexible enough to respond to market changes and new opportunities before the next strategic planning cycle rolls around.
How to deliver a good strategic plan at a not-for-profit
We’ve raised just a few of the challenges that NFPs face in doing strategic planning, well. But rest assured that it’s not all gloomy. Like a lot of things, the journey of looking within, looking ahead and striving to evolve is more important than the destination.
Rather than worrying too much about how the document that gets produced at the end of the process looks and feels, we’ve identified a few of the factors that we think sets an organisation up to deliver on its strategy.
Based on our experience, effective not-for-profit leaders do the following:
Learn from the past. The previous strategic planning process the organisation ran is a great source of insight, so looking at what went well and what didn’t last time is the best place to start.
Calibrate their expectations of a good strategic planning process. This may mean a ‘less is more’ approach, where the organisation holds itself to a small number of high-value strategic actions it will do, rather than an exhaustive list of everything it could do.
Get the balance right between ‘big swings’ and ‘sure things’. This means striving to evolve the organisation but staying grounded with what is a genuine priority and what is possible.
Participate without owning the process. This might mean delegating responsibility for pushing the process forward to an internal committee or an external consultant.
Engage internal and external stakeholders in a purposeful and meaningful way. This also means being prepared to consider input without incorporating it where it does not align with the organisation’s purpose and mission.
Focus on delivery. Creating the plan is only the first step in what should be a continuing journey of engaging with people, exploring what the organisation should (and shouldn’t) do, reviewing progress and delivering on its mission.
Need more information?
If you’re searching for some more information about strategic planning in NFPs, there are some free resources from QCOSS Community Door and the Australian Institute of Company Directors (AICD) that are worth a look.
Want to chat? We love supporting NFPs to undertake strategic planning, so if you’re keen to explore how you can make the most out of your next strategic planning process, please check out our page strategic planning.
