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1 The Webinar will Begin Shortly.. For technical issues: please chat Q&A to Evelyn Kleinbardt For content questions: please chat Q&A to Justine Lai Please note: This webinar is being recorded and will be posted on

2 Module 8: How to Develop A Strategic Plan May 10, 2013

3 Andrew Cleek, PsyD Executive Officer, NYU McSilver- UIBH

4 Agenda Upcoming Data Submission Recap from Last Week Review Action Steps Polling Strategic Planning Defining strategic planning Why strategic planning? Key strategic planning concepts What does a strategic plan look like? Additional considerations of strategic planning Action Steps Wrapping Up

5 Financial Benchmarking Tool Submission Deadline Extension! Submission extended to Wednesday, May 15 th! Please submit to address Financial Benchmarking Tool is available for download on or via this link HERE Submit questions via Qualtrics link ( AkaN9yDFQ6AR)

6 Andrew Cleek, PsyD Executive Officer, NYU McSilver-UIBH

7 Review Action Steps From Module 7 Sit down with your CIT and discuss your variables in your financial model Which buckets do they fall into? Which ones can you affect and not affect? Where do they fall on the Impact Framework? What did you decide? What are your priorities that you need to move forward on?

8 Polling Q#1: Did you log in alone or as a core team? 1. Logged-in by myself 2. With one other person 3. More than 2 other people 4. More than 4 other people *You can select more than one answer.

9 Polling Q#2: Who is on the 1. Finance line?* 2. Clinic Leadership 3. Executive Leadership 4. Clinician 5. Professional Staff * You can select more than one answer.

10 Polling Q#3: At What Level Have You Been Involved in Strategic Planning? 1. Program level 2. Agency level 3. Governance level (Involving the board) 4. Not at all

11 Peter Campanelli,Psy.D. Senior Scholar, Organizational & Community Services McSilver Institute for Poverty, Policy, & Research David Wawryznek CFO, Spectrum Human Services

12 Defining Strategic Planning Strategic planning is a systematic process through which an organization agrees on and builds commitment among key stakeholders regarding priorities that are essential to its mission and/or responsive to the environment. Different Levels: Program, Agency, Governance

13 Different Types of Planning Strategic Planning: Emphasis on immediate volatile environment that is difficult to predict Created for the purpose of immediate leadership for organization. Fundamental, directional, and overarching Long-Range Planning Emphasis on long-term future environment when circumstances in the future are reliably predictable Business Planning Assesses the viability of a particular business in terms of opportunities and threats Operational Planning Primarily affects the day-to-day implementation of strategic decisions

14 Effective Strategic Planning Blends Different Types of Planning Incorporating Long-Range Planning What do we think will stay constant? What will change? Incorporating Business Planning Most nonprofits aren t able to provide the kind of detail anticipated for business plans because of the unpredictability of revenue BUT business planning is becoming increasingly important to be incorporated into a strategic plan Do we have a sustainable business strategy? Do the current and future political, economic, social, and technological trends support the sustainability of our current business strategy? Incorporating Operational Planning An effective strategic plan builds organizational capacity

15 Strategic Planning: Building Bridges

16 Why Strategic Planning? Assessment of Options Essential process that involves choosing how best to respond to circumstances in a dynamic and sometimes hostile environment Nonprofit organizations have many choices in the face of changing client, customer, revenue availability, competition and other factors Committing to one direction Combine recognition of these choices with committing to a set of responses that best positions the organization

17 Guiding Principles of Effective Strategic Planning Focus on the most important issues during the strategic planning process Be willing to question both the status quo and the sacred cows Produce a document so that there is a written record Make sure the strategic plan is translated into an annual operating plan and that it contains metrics that can be evaluated

18 Key Elements of the Strategic Planning Process Strategic planning follows a process that is both structured and data-driven. This process should Raise a sequence of questions that help planners examine past experiences Test old assumptions Incorporate new information about the present Anticipate the environment in which the organization will be working in the future

19 Why Data-Driven? Data brings to the surface a variety of options to consider regarding what the organization will and will not do Important to analyze implications of those choices Financial Organizational Cultural Results in making choices, some of which have significant trade-offs Hard choices are often not overly complex, but need to be considered from all angles

20 Strategic Planning = Means to An End Provides an explicit understanding of new positions, mission and organizational values among staff, board and external constituents Provides a blueprint for action based on current information Provides broad milestones against which monitor achievements and assess results Provides information that can be used to market the organization to the public and potential funders

21 Keep in Mind: Strategic Planning is Purposefully Disruptive

22 Engaging Stakeholders Systematic Engagement Key stakeholders including leadership, clients, funders and the surrounding community in a process of identifying priorities and allows for disagreement to be engaged constructively Inclusive Process Allows a growing consensus to be built resulting in enhanced accountability for the organization Strategic planning process is about building commitment to the organization.

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24 Engaging Executive Leadership You might hear Why should an organization embark on this continued planning effort which costs money and consumes time - precious commodities for nonprofit organizations? Defining the direction and activities of an organization in an ever-changing environment is daunting and may seem futile For this to work, convince senior management and work up the chain as far as you need to go How do you convince Executive Leadership to buy in?

25 Make a Case Key Message Strategic planning helps organizations to do a better job by helping leaders be intentional about priorities Create a business case for why Leadership should care How will this positively affect the agency bottom line? Take initiative + bring solutions to the table Bring financial projections that model the impact of the different solutions on the long-term bottom line Clear short-term and long-term benchmarks and goals

26 How Do You Know Its Working? Creation of a discussion on why the organization exists and the shared values that should influence decisions Successful communication and teamwork between Board of Directors and staff A key focus on what s really important lays the groundwork for meaningful change Everyone s attention is re-oriented back to the critical issues that define success

27 What Strategic Planning is Not Strategic planning does not predict the future Strategic planning is not a substitute for the judgment of leadership Strategic planning is not a smooth predictable linear process

28 What is Strategic Planning? Summary of Key Concepts Intentional response to the current environment Threats Opportunities Understanding the market competition Systematic and data driven Sets priorities and makes decisions about direction and goals Builds commitment among staff, board and stakeholders Guides resource acquisition and allocation

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30 What Does a Strategy Look Like?

31 The Strategic Planning Phases Phase 1: Defining the Content of Each Phase Phase 2: Mission, Vision, Values Phase 3: Data to Inform Your Decisions Phase 4: Arriving at Decisions Phase 5: Producing the Plan Phase 6: Establishing an Annual Implementation Strategy Phase 7: Monitor & Evaluate Your Strategy Source: Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook. by Allison, M & Kaye, J.

32 Phase 1: Defining the Contents of Each Phase Identify reasons for planning What choices do we face? Set up the planning process & define success Establish roles & responsibilities of the participants Develop a data gathering methodology What information is required? Identify what process meets your organization s needs How will you track the progress of your plan? Designate a responsible party Use tools such as workplans, etc. Deliverable = Planning Workbook

33 Phase 2: Mission, Vision, Values What is the mission statement of your organization? Take a hard look - Is your mission sustainable in the current business reality? What is the vision statement of your organization? Does your mission support your vision given the current business environment? Is your program s mission compatible with the overall organizational mission? Have a discussion with your leadership about the difference between reality and current mission Deliverable = Mission, Vision, and Values statements

34 Phase 3: Identify Data to Inform Decisions Data can be used to Summarize organization s history and accomplishments Articulate previous and current strategies Gather information (data) from both internal and external stakeholders Collect objective data to evaluate current programs What is the organization s current situation? Summarize information collected so you can draw conclusions for change management process Deliverable= Data to Inform Decisions

35 Phase 4: Arriving at Decisions Analyze your data! Module 7: Analyzing Overall Model for Effective Decision-Making Ask yourselves: In light of this data, what are our priorities? Assess program performance and agree on repetitive strategies Summarize future program prospects Agree on administrative, financial and governance priorities Deliverable: Identification of Key Priorities

36 Phase 5: Producing the Plan Create goals and objectives Develop long-range financial projections Produced a strategic plan Adopt a strategic plan Great Resource: Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook. by Allison, M & Kaye, J. Deliverable= Strategic Plan Document

37 Phase 6: Establishing an Implementation Strategy Implement the plan Manage the transition: measure the changes required for success Modify the plan if success is not being achieved Develop a detailed annual operating plan for upcoming year which contains the first years goals and objectives Deliverable = Strategy for Success

38 Phase 7: Monitor & Evaluate over Time Evaluate the plan regularly as part of a continuous quality improvement process Monitor data continuously to maintain success Revise the plan as necessary to assure continued success Deliverable = Best Practices for Future Planning and Effective Mechanisms for Monitoring

39 Recent Trends in Strategic Planning

40 Add l Considerations: Bringing Science to Strategy Move from issues to choices Don t focus on declining revenue which takes you into the exploration of the issue Focus upon options which could be mutually exclusive This takes you into what you need to do next that is under your control Generate strategic possibilities Turn to the full range of possibilities you should consider Construct strategic possibilities Especially ones that are genuinely new and perhaps disruptive Focus on the advantage you hope to leverage and the activities that produce the intended advantage Focus on what must be true in order for the intended advantage to be realized Source: Lafley, A. G., Roger L. Martin, Jan W. Rivkin, and Nicolaj Siggelkow. "Bringing Science to the Art of Strategy."Harvard Business Review 90, no. 9 (September 2012)

41 Add l Considerations: Designing a Strategy as a Hypothesis Include in the strategic planning process individuals who are normally outside regular operations Do not have the most senior person serve as the leader of the strategic planning process Identify barriers to achieving the identified advantage Design tests that will tell you the key barriers whether or not they can be overcome Conduct a test Make your choice Review your key conditions in light of your test results in order to reach a decision Source: Lafley, A. G., Roger L. Martin, Jan W. Rivkin, and Nicolaj Siggelkow. "Bringing Science to the Art of Strategy."Harvard Business Review 90, no. 9 (September 2012)

42 Add l Considerations: Using Your Company s History as a Leadership Tool A sophisticated understanding of the past is one of the most powerful tools leaders have to shape the future Cultural change can be extremely difficult for people to embrace Particularly true of change associated with a strategic plan Change management is arguably the most difficult management challenges a leader will face in strategic planning Use your organization s history to Identify organizational strengths and weaknesses, along with the environmental experience employees have working in the company Unite and inspire people and to remind people of who we are Your organization s history may offer opportunities to place required changes in perspective Source: Seaman J.T. and Smith G.D. Your Company s History as a Leadership Tool. Harvard Business Review, December 2012, Vol. 90 No. 12, No. of pages: 8

43 Add l Considerations: Tips for Using History Make an understanding of your company s history part of the strategic planning process Interview current executives and tenured employees Document what is known about the company s history and values Make your organization s history accessible Review past major projects and initiatives to see if they were successful or not Seek an historical perspective for every major decision Talk at every opportunity to your staff about the history and charismatic leadership that resulted in breakthrough change/innovations Source: Seaman J.T. and Smith G.D. Your Company s History as a Leadership Tool. Harvard Business Review, December 2012, Vol. 90 No. 12, No. of pages: 8

44 Andrew Cleek, PsyD Executive Officer, NYU McSilver-UIBH

45 Polling Question #4: Do You Think Your CIT Has the Tools it Needs to Begin Thinking About a Strategic Plan? 1. Yes 2. No 3. Not Sure If no or not sure, give us feedback in the survey afterwards that we can use to drive content for Part 2 of Strategic Planning!

46 Polling Question # 5: Has Your BEAM Core Implementation Team been Meeting on a Regular Basis to Discuss these Trainings? We met once We meet every so often. We meet regularly.

47 Action Steps Before Next Webinar Sit down with your CIT and discuss how you can use your financial model to strategic plan. What do you hope to accomplish with a new strategic plan? What do you need to get into place in order to be ready for a strategic planning process? Who do you need to convince in order to have a successful strategic plan? Develop and send any questions you have to CTAC so they can be answered in the office hours Please submit via the survey (

48 Andrew Cleek, PsyD Executive Officer, NYU McSilver-UIBH

49 Upcoming BEAM Programming* Module 8a: How to Develop a Strategic Plan, Part 1 5/10/13, 12-1 PM Module 8a Office Hours: How to Develop a Strategic Plan, Part 1 5/17/13, 12-1 PM Module 8b: How to Develop a Strategic Plan, Part 2 5/24/13, 12-1 PM Module 8b Office Hours: How to Develop a Strategic Plan, Part 2 5/31/13, 12-1 PM *Registration links can be found on the BEAM Resource Page on ctacny.com

50 Data Submission: EXTENSION: May 15th by 5 PM EST to beam@ccsi.org Financial Benchmarking Tool is available for download from 50

51 Contact us: To submit questions for office hours: use this link here: Justine Lai CTAC Business Practices Project Manager Phone: x 3357 * Preferred 51

52 Your Feedback is Appreciated - Please Fill Out the Survey Afterwards.. 52