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Case study of strategic planning for small nonprofits Peter Roland Jr

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ROCHESTER INSTITUTE OF TECHNOLOGY Department of Hospitality and Service Management Graduate Studies

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CASE STUDY of STRATEGIC PLANNING for SMALL NONPROFITS

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CASE STUDY OF STRATEGIC PLANNING FOR SMALL NONPROFITS

By

Peter F. Roland, Jr.

A thesis

Faculty of the

School

of

submitted

Hospitality at

partial

Mfillment

and

Service Management

the

Rochester Institute

in

to the

of

Technology

of the requirements

Master

of

Science

August, 2003

for the degree

of

Strategy for Nonprofits

Abstract

The Lake Placid/North Elba Historical planning

processes

that can address the

the resources of the

Society suffers from the

long-term

issues. Both

the past, present and

does

not

currently

be. The

mission of the

present the

and the

study is to

medium

what

likelihood

efforts of these

of success or

failure

will

organizations, best

planning

practices

be described. The leaders

of the

reported positive outcomes as a result of undertaking a strategic

level

of success

developing study it

future

developing and implementing

a strategic plan was

will

of the

the

Society

processes used

of success a strategic

stakeholders will

forum whereby

be

the primary function serves.

process

in the

a

of the organization:

organizations process.

for the

The

completion of the

way to

plan

for the

appears there would

be

a

Society could be initiated.

each member of the

In

By

process of

Upon

Board

share their visions of what

plan.

study

planning

an appropriate

these visions and provide a roadmap

objectives and strategies outlined

the community it

planning

have the opportunity to

would synthesize

enhance

process would

organizations.

by

that indicate the

varied, but the

Lake Placid/North Elba Historical Society. If it

process would provide a

be. It

a plan

beneficial for both

be determined if this

high likelihood This

in

Board

members of the

visions of what

examine strategic

or medium

two historical societies serving small communities utilizing a case study design.

examining the planning

for the

see as

they

Society. A forum

opportunity for

to discuss this mission and share their

purpose of the

only

a result

which must also address operational

Museum

exist which would provide an

and all stakeholders

should

future

At

Board have ideas regarding

new and old members of the

As

needs of the organization.

Society are being underutilized.

planning function is the monthly Board meeting,

absence of

the

and all

Society

should

for achieving the goals,

larger context, it may

to record and

perpetuate and

interpret the

history of

ii

Strategy for Nonprofits

iii

Acknowledgements

I

would

like to

acknowledge and

New York. Ms.

consulted

in

Slate

s

strategic

case study.

how to

am also

Museum Association

of time and

President

information

of the

Elizabeth

and

They taught

a reality.

research

Dr. James Myers

me the

importance

insight into the

Clarke, AICP,

provided resources and perspectives on

future

has

Big Springs Historical

offered tremendous

by their organizations.

and assistance.

make that

invaluable in conducting the

of

indebted to Mary Lou Willits, Executive Director

like to thank Dr. James Jacobs

for their insights and

processes were

I

processes undertaken

would also

of the

materials and contacts with organizations she

Valley Museum and Jean Guthrie,

Wallace, Roberts and Todd I

planning

planning

Society. Their generosity planning

Ackerson,

Ackerson'

necessary for this of the

thank Anne

community

of the

RIT

of

planning.

faculty

of envisioning a

future,

Strategy for Nonprofits

Table

of

iv

Contents

Chapter One 1

Introduction

Statement Purpose

of the

The Major

Significance

6

Study

Question,

Delimitations

4

Problem

of the

7

Subquestions

8

Limitations

and

Consequences

and

Chapter Two: Review

and

of the

9

Study

Literature and Applications for Public and Nonprofit Organizations

of the

Strategic

Planning Strategic Planning Workbook for Nonprofit A Planning Toolkit

11 17

Organizations

23

Conclusion

26

Chapter Three: Procedure Assumptions Case

and

Rationale for

a

28

Qualitative Design

29

Study Format

Data Collection Procedures

29

Data Analysis Procedures

31

Chapter Four: Outcome

Literature

Valley Museum

36

Springs Historical

43

Slate

Big

Study and its Relation to Theory and

of the

Chapter Five: Conclusions

Society

and

Recommendations

54 63

Bibliography Appendices

A: Comparison C: The

Study Organizations Develop a Strategic Plan

65

of

B: Five Steps to

66

Planning Pyramid

D: Letters

sent

E: Sample

of

F: Sample

of

67

to study organizations

Slate

Big

Valley

upon which

interviews

Museum Workplan

Springs Historical

Society Action Plan

were

based

68

73 74

Strategy for Nonprofits

Chapter 1 Introduction

As the is the

world of business

world of nonprofit management.

generous amounts of time nonprofit sectors

has

environment

in

also ended

these trends

nonprofit organizations. extend well

Volunteers in many

support their

audiences and

Indeed, "the

management practices

organization created

and

expectations of attending

"To

and

longer have

in many

changed the

patrons of the

limited"

truly

which

organization as well as

satisfy the

(Smith,

Elba,

had

to

ceased

Bucklin &

to the

Society

which

in

people.

It

a

p.xv).

membership

order

of

Lake Placid is located. In

Station from the Penn Central

passenger and

create a museum

of Trustees.

Associates, 2000,

documenting the history of the Village

the town in

both

In addition, they

increasing needs of members,

Society (the Society) is

purpose of

p. 29).

must work to embrace new

freight

operations

into Lake

to provide a permanent home for

documenting the history of Lake Placid

Society currently has approximately 250

by a fifteen member Board approximately 10,000

meetings, participating in

remain competitive.

Society purchased the Train

was given

North Elba. The

considerable-

must provide effective

this, leaders

that reshape organizations to

in 1948 for the

Corporation,

by volunteer leaders of

(Ingram, 1999,

is fulfilled, they

accomplish

the Town of North

Placid. The Station the

significantly

obligations of board members are

The Lake Placid/North Elba Historical

Railroad

too

2000). Increased

faced

making monetary

often with resources that are

1967 two

Associates,

the challenges

value within their organizations to

Lake Placid

so

and accelerated growth

contributions"

and

and governance.

build

accelerating pace,

organizations no

funding has also

have increased

ensure that an organization's mission

must

causes,

Bucklin &

(Smith,

beyond the basic

fund-raising initiatives,

leadership

often at an

which nonprofits operate.

Accordingly,

To

to give to

for membership,

competition

they

is constantly changing,

members and

is

governed

serves a seasonal and year round population of

1

Strategy for Nonprofits The

Society is currently undergoing a change in the composition of the Board,

addition of new

organization

for

interpretations and

following the retirement

a number of years.

of the mission of the

New Board

Society,

it does, is

work must

"a disciplined

as

and

why it does

it"

(Bryson, 1995,

occur"

organizations

standard practice

can

be

utilized not

activities of an organization,

Stated simply, it

not

accommodate

but

can

the past

another

our

divergent interests

and

other

fundamental entity)

is,

what

way, "strategic planning

determining the best way to

then

strategic

planning has

thinking for the

past

40

numbers of public and nonprofit

years.

only to

(Bryson, 1995)

evaluate the current mission and

envision a

future

business is, but

help facilitate

and promote successful

reexamine

to

also

only is "what

176). Strategic planning

As the

for large

only in the last fifteen to twenty

Strategic planning

(or

In the business world,

p. 6).

(Barry, 2001,

This has become

making,

reconciled with

take place in the rapidly

employed as a standard part of management practice and

years.

course

what

it

for that be"

should

communication and

values, foster

wise and

organization.

(Drucker, 1 990,

participation,

reasonably

analytic

decision

implementation. (Bryson, 1995)

Society moves forward

in the

sixth

decade

of its existence

it

must

continually

the service it has provided to its members and the community in the past, and

how this may be faced

be

effort to produce

10). Stated

p.

developing a shared vision of your nonprofit's future,

been

served the

bring different ideas and

and actions that shape and guide what an organization

make this vision

p.

members

have

the

environment noted previously.

Strategic planning may be defined

decisions

of Board members that

and these must

This

activities of the organization.

existing

changing

Trustees

with

2

enhanced

in the future. In the dynamic

and

challenging

environment

by both businesses and nonprofits the continued relevance and vitality of any

organization

is

not guaranteed.

organization must

It is widely

be

does

patronage and confidence of the stakeholders of

earned and maintained

recognized

organization

The

and

that

strategic

for whom, but

in

order

planning is what

it is

any

to assure its continued existence.

a means of

capable of

identifying not

only

what an

doing in the future. Equally

Strategy for Nonprofits

important,

strategic

thinking and acting are

to strategic planning.

societies

planning in

order

In

a

consider

undertaking this

particular approach

will

number of

approaches

analyzing the

inform the

A

to

strategic

value of strategic

of other

actions of the

Society's Board

process.

larger context, it is hoped that

organizations:

By

different

key factors for the success or failure

be identified that

planning for Historical Societies these

utilized

to chart their future course.

organization's efforts will

they

Society is at a crossroads.

in New York State have

planning for historical societies,

as

important than any

(Bryson, 1995)

The Lake Placid-North Elba Historical

historical

more

3

a

study

an analysis of the value of strategic

will perpetuate and enhance

to record and interpret the

the primary

function

of

history of the communities that they

serve.

"Ifyou don 't know where you are heading, you are likely to end up somewhere else ".

Yogi Berra

Strategy for Nonprofits Statement

of the

4

Problem

"At some point in the life

of virtually every organization, its ability to

cycle

succeed

in

"

spite

of itself runs

out.

Richard Brien

The Lake Placid/North Elba Historical processes

that can address the long-term needs

The Board

of Trustees

planning for the future.

structure,

been

with

At

is

charged with

the only

medium

Society. A forum

opportunity for

of a slate roof that

for the

an effort

committee

to

bring

on new

Trustees

continue to serve.

Board

Society

not

threatens the

new and old members of the

present and

future

and all stakeholders to should

Board

mission of the

Museum

exist which would provide an

currently

discuss this

mission and

be.

with an unstable physical

plant, in

particular

integrity of the Museum building. improvement

of the

requiring

replacement

No longer-term

building and

space

place.

problem areas

include

public visibility, outdated

for the

past,

does

stabilization and possible

surrounding it is in

programs

issues. Both

see as the

members of the

The Board is faced

Other

Society as well

for the planning function is the monthly Board meeting,

or medium

their visions of what the

program

a result the

operations of the

overseeing the

to fifteen members from twelve, in

have ideas regarding what they

share

As

They address operations through an existing

which must also address operational

and the

absence of planning

of the organization.

displacing long-term members who wish to

present

from the

the assistance of a part-time Executive Director. The Board has recently

expanded

while not

suffers

Society are being underutilized.

resources of the

as

Society

public.

chronic

budget deficits,

exhibits, deterioration

In

particular

a

decline in membership, low

of existing programs and

the necessity of dealing

with short

lack

term

of new problems-

Strategy for Nonprofits i.e.

"putting out

fires"

-has

hindered the ability

of the

Board to

the

address

5

long term

needs of the organization.

The

Society is not without its

have broad of a small

strengths.

acceptance

in the

community.

endowment,

which

has

In

general the aims of the

The

Society also is financially

while

remaining

funds

can provide a cushion while means of greater

Opportunities attention or

the

area.

exist

in

part

because there

The

rail

line has been recently

Society (ARPS)

operations.

In

hiking,

of and

addition use of the rail mountain

past

competing for the

In particular, the

leveraged to

is

not

and residents.

traffic through the museum as a result of its

line for

other

types of recreation

(cross country

of the award of grant monies

of Transportation.

is that the long-term viability

strengths and opportunities

of the

Society is not

that are present are not

being

Society. Formal

being given to how the Society can potentially expand its present

discover

an

communities

for tourists

achieve maximum attainment of the current mission of the

consideration

purpose and

by The Adirondack Rail

biking) increases the likelihood

significance of the problem

future. In

loss in the

are sought.

other organizations

redeveloped

through the New York State Department

assured.

few

by way

indefinitely these

financial stability

as a scenic railroad attraction

This has increased the visibility

The

are

cannot go on

Society

funding of the public in performing the historical interpretation function in

Preservation

skiing,

sound

allowed the organization to operate at a

While the deficit spending

solvent.

Historical

new ways

to serve its members and the community at

increasingly competitive environment, the best

will survive and prosper.

large in the

those organizations that serve their

Strategy for Nonprofits Purpose

The

of the

Study

purpose of the

societies

serving

Two different

study is to

examine strategic

small communities

in terms

of

staffing

and

volunteers,

appendix

a case

in

selected that are similar

Lake Placid-North Elba Historical Society. (See organizations

processes used

in New York State utilizing

have been

organizations

planning

A for

by historical

study design.

size and

function to the

a comparison of these

budget, functional

areas,

and

governance).

The

success of a strategic

identifiable benefits to

limitations to These

By

be

explored

of success or

will

of the

failure for this

be determined if this

of success a strategic

stakeholders will

would synthesize

process will

be

serving

be

key

determinants

regarding future planning

an appropriate

indicate

completion of

way to

plan

appears there would

for the

for the

be

a

Society could be initiated.

each member of the

Board

and all

Society

should

for achieving the goals,

plan.

created that

may be

small communities.

for

of success and

efforts.

practices which

share their visions of what the

substantial commitment of time and resources

assessment of

are

undertaken.

be described. Upon

these visions and provide a roadmap

assessment tool will also

or similar organizations

process

planning

in the

clearly

planning process, there

organizations, best

process would

have the opportunity to

are

detail in Chapter 2.

forum whereby

objectives and strategies outlined

An

greater

efforts of these

process would provide a

be. It

in

Lake Placid/North Elba Historical Society. If it

high likelihood This

organizations that undertake a strategic

studying the planning

the likelihood

future

While there

not a given.

the process and situations where this process should not be

scenarios will

the study it

planning initiative is

used

by other Historical Societies

Since this

process requires a

organizations of this nature and size an

failure may be helpful in decisions

6

Strategy for Nonprofits Major

What

Big

Question,

was

and

Subquestions

the value of a strategic planning process for the Slate

Valley Museum and

Springs Historical Society? What

was

the

between their

What

impetus for the planning needs and those of the

process?

Are there

commonalities

Lake Placid/North Elba Historical Society?

were the areas of focus?

Internal Environment: Mission/Vision Statement

Governance; i.e.

Board

Human Resources: Paid

and

Committee

structure

and volunteer staff

Administrative Processes

Finance, including Membership:

size of budget and types of

profile of members and

funding

marketing to

new members

Exhibits Publications

Programs External Environment Stakeholders Other local Potential What types How

was

and

General Public

museums: content and programs

Funding

Sources

of processes were used?

Costs

the planning process executed?

What

were

What

was

the outcomes of the

the

planning

associated with

Key factors for process?

these?

success?

Strategic

success of implementation of plans produced?

Factors in this

success?

recommendations?

7

Strategy for Nonprofits Delimitations

and

Limitations

Delimitations The

case studies will

Upstate

members of the

Historical

Society,

functions in while

These two

organizations

in New York State that

are

History Alliance. Compared to the Lake Placid-North Elba

the organizations selected are of similar size and

The Slate

their communities.

Big Springs Historical Society is

the

between

be limited to two

organizations were selected

perform similar

Valley Museum is larger than the Society, smaller

(See Appendix A for

because they

comparisons).

represent a meaningful continuum

an organization with a number of paid staff and an

all-

volunteer organization

with a minimum of paid staff.

The

purpose

operate

in

in

limiting the

study to

similar environments

organizations within

relating to

state and

local

New York State is that they

funding of their activities.

Limitations A limitation

organizations

Although

of this

undergoing

a

assumption that some attributes and activities of

planning

process are transferable

all organizations are unique

experiences can

Both

study is the

be

used

it is hoped that

other organizations.

study based

on

different planning

by the Society and other organizations.

of the organizations studied undertook

Anne Ackerson,

a

to

planning

a consultant associated with the

processes

facilitated

Museum Association

by

of New

York.

8

Strategy for Nonprofits provided a wealth of information

Ms. Ackerson

necessary to is limited will

be

arrange

interviews

by the fact that Ms. However,

analyzed.

with

the

Ackerson

to the researcher, as

leadership of the

was

study

the consultant in

well as contacts

organizations.

The study

each of the processes

the processes and outcomes for the

that

organizations were not

identical.

The

processes used

existing literature

and

framework for the

Significance

by these organizations will also be reviewed in comparison to

theory

on strategic

competitive

and

and

Consequences

is changing

of the

While the

serve

Introduction,

at a rapid pace.

phenomenon.

its

More

By examining will

order

to stay in existence and

focus

on

remain

the nature of their

application

planning has been generally

for

importantly, both the literature and

planning theory

be determined if this

it may

as well as

process

accepted

public and nonprofit organizations

the strategic planning process suggest that

it

In

the world of nonprofits and public

organizations

their communities.

practice of strategic

number of years,

a general

Study

these organizations must constantly

how they

thereby establishing

study.

As previously discussed in the organizations

planning,

is

not

be

in business for

is

a more recent

practical experience

appropriate

for

a

relating to

all organizations.

the experience of two similar organizations,

suitable

for the Lake Placid-North Elba Historical

9

Strategy for Nonprofits Society. If there can

best

be

assessed.

are

limitations,

If a decision is

these

strategic

planning

also provide a

as

with change within

could

be

the context

a valuable addition

forward

and alternate methods of planning

with a strategic

be identified that may inform

framework for

it may apply to their

desirable for any organization,

be identified

made to move

practices and outcomes will

The study may

can

profit or

particular situation.

planning process,

and guide the process.

other organizations

nonprofit,

to assess the

value of

Change is inevitable

and a method

for

and

deciding how to

deal

of an organization's environment and available resources

to the

intellectual

10

capital of any organization.

Strategy for Nonprofits

Chapter Two Review

of the

Literature

and

The literature pertaining to offers an abundance of both

Applications

strategic

planning for

planning theory

framework for evaluating the

and practical applications.

subject organizations the

Strategic Planningfor Public exhaustive treatment of what

nonprofit and public organizations

and Nonprofit

he

calls

the

study has

Organizations,

"Strategy Change

To

utilized

John

Cycle"

for

more application-oriented presentation of considerations and activities

The study has

also relied

a consultant associated with

extensive

planning

on materials provided

the Museum Association

of New

work with a number of organizations.

approaches utilized

study

extensively

by each will

provide a

Bryson'

s

which provides an

organizations.

Bryan Barry's Strategic Planning Workbookfor Nonprofit Organizations

process.

provide a

provides a

involved in the

by Anne Ackerson,

York that has done

A brief summary

framework for analyzing the

of the

efforts of the

two

organizations and their results.

Strategic Planningfor Public Bryson

(1995)

identifies

Promotion

and Nonprofit

a number of benefits

likely to

result

from

strategic planning:

of strategic thought and action.

Improved decision making,

Enhanced

Organizations

by focusing on

"strategic thinking

Direct benefits to the

and

acting

are what

organization's

roles and responsibilities and

issues and challenges. improved performance-

crucial

organizational responsiveness and

count, not thinking alone". people, through better definition of

improved teamwork, (p. 7)

11

Strategy for Nonprofits Strategic planning may not identifies three distinct It

always

situations

in

be the best

which

Bryson

course of action.

undertaking this

process

may

also

could relate

leadership The

fallen"

step for an organization whose roof has financial situation or a need to fill an important

lacks the skills, resources,

or commitment

to produce a good plan. He calls this "'the

it is

planning'

: where

it is

advisable:

position.

organization

makers

to a

be

not

"may not be the best first This

12

most needed where

likely

most

If implementation

it is least

by key

decision

paradox of strategic

likely to work and least needed

work"

to

is extremely unlikely; "the New Years (p. 8)

of a strategic plan

organizational

resolution"

equivalent of a

The basis for of the steps

taken. It

process

leaders

benefits

values which

p.

"plan to

and

(Steiner,

it

"provide the

or

social

informal,

of a stakeholder analysis,

in

A brief explanation

planning

This is

an agreement

effort and steps

that

will

among

be

1979). This is important because the

in that it is designed to a supportive

challenge the status quo.

coalition,

and a clear view of the

succeed"

(Bryson, 1995,

justification for

65). These may be formal,

the

process.

organizational mandates and missioa

Incorporation,

outside

planning

plan"

champions,

can make

Cycle"

follows:

"deliberately disruptive",

Clarifying

1995,

as

Strategy Change

about the overall strategic

"Only strong sponsors potential

is

is "The

and agree upon a strategic

represents a

is

process

s approach

in this

Initiate

key internal

Bryson'

such as

the

63).

These

are the

mandates,

those

dictated

by

a

The

(Bryson,

Charter

key stakeholders.

expectations of all stakeholders

organization are considered.

mission and

existence"

an organization's

such as expectations of

which

p.

mission

"clarifies

or

Articles

The latter is

both inside

an organization's

of

a result

and

Strategy for Nonprofits purpose, should

or

why it

look like

(Bryson, 1995,

be

should

and

how it

doing what it does;

should

67). Mandates

p.

Mission is developed from

behave

are

as

vision clarifies what

it fulfills its

imposed from the outside; these

inside; it identifies

and weaknesses are

opportunities and threats

inside

and outside

rninirnizing

key "success

Mintzberg, 1994b) be

extended

organization

exist outside

threats. This approach may

are

Perhaps the

for the

next

this is

most

step in

(Jenster, 1987;

musts"

Opportunities

and

organization,

and opportunities while

identify what the

Leidecker

and

Bruno, 1984; The

external environment.

important benefit

of this

they identify "key

process

may

competencies"

(Prahalad

what you are good at

which

an

also

to clarify the organization's "distinctive

stated

"the

the organization. Effective strategy links

that allow it to succeed in the

Hamel, 1990). Simply perform well.

typically internal to

factors"

are

an organization's purpose.

factors, by taking advantage of strengths

weaknesses and

organization's

also

typically

organization

mission"

Assessing the Environment to Identify Strengths. Weaknesses. Threats. Strengths

the

13

internally that

step is that it strategic

and

allows you to

prepares the

issues stemming from

the convergence of its mandates, mission, strengths, weaknesses, opportunities, and threats"

(Bryson, 1995,

Identifying strategic

issue

p.

86).

Strategic Issues as

Facing the

"a fundamental policy

mandates, mission,

and

values;

Organization Bryson

question or challenge

product or service

level

and

(1995) defines

affecting

a

an organization's

mix; clients, users,

or

payers;

management"

or

costs,

financing,

structure, or

(p. 104). The

organization's culture will,

Strategy for Nonprofits in part, determine consideration

issues

which

in the

next

"may itself become

process

a strategic

to important issues and possibilities for

attention on what

is truly

which receive serious

important,

and

directs

issue if the

(p. Ill),

identified. This is the

the participants,

Bryson

and where

while also

point at which

the prospect

decision

notes that some

makers

to

issues,

clues about

wish

may

organization's

final very important benefit

will

be

a

the issues

resolve

for the

to terminate the

the

on,

prompt

how to

of real change appears

gained:

This

not answers.

the strategic planning process "gets

however, "if after completing this step push

blinds the

(p. 104). This step focuses

attention

giving

that

possible

action"

change"

that are

culture

"usually creates the kind of useful tension that is necessary to

organizational

It is

Strategy Formulation and Development.

step,

the organization's culture

organization

the agenda and

are put on

14

real"

to

organization.

this point;

process at

decide to

key decision makers

the organization's character will

be

strengthened"

(p. 105).

Formulating

and

single purpose organizations,

previous one.

Strategies

Adopting

particularly

A strategy is "a

it"

(Bryson, 1995,

organization's

mission,

(p. 130). Strategies whole

to functional

organization.

p.

Plans to Manage the Issues. It is

small

ones, may

pattern of purposes,

and/or resource allocations that

does

and

defines

merge

policies, programs, actions,

what an organization

130). The strategy is therefore

an

is,

vary

strategies

by level,

from

grand strategies

relating to different

They may also be

either

long-term

what

it

does,

"extension

for the

decisions,

and

why it

of an

environment"

organization as a

activities within and outside

or short-term.

that

this step with the

forming a bridge between the organization and its

can

noted

The

process

the

by which

Strategy for Nonprofits development

of strategies can

of different processes

and

acting

even

are what

is

the preparation

is the

consideration

implemented

may be

take place may vary used.

important,

of a

formal

between organizations,

Again, Bryson emphasizes that

not

plan"

(p. 22). The

strategic

creation of strategies and a plan that will

"strategic thinking

most

be

important

adopted and

Organizational Vision for the Future. The

Clarifying Organizational Mandates and Mission involved considering In practice, visioning may

organization.

defines

planning

as

process.

"a description

implements its

In this step

of what

strategies and achieves

it includes mission,

a

occur

in

"vision

a number of places

while

smaller,

single purpose organizations

its full

goes well

develop

strategy to deal

core

with

consensus on

look like

those

after

which

he

it successfully

beyond

it"

identification

approach

(p. 155). Bryson may be

states that

used much earlier

formulation

of issues and

of a vision statement can

organization's

for in

of

benefit the

mission, its basic philosophy and

values, its basic strategies, its performance criteria, its important decision making

(p. 157). This is

ethical

becomes

for the participants,

real

future

another juncture where

standards"

rules, and its

and

throughout the

(p. 155). In his

issues. Development

by further defining "the

for the

potential"

exercises

the

a vision

is developed,

"visioning"

the process to

earlier process of

success"

of

the organization will

"vision,

organization

or

by the organization.

Establishing an Effective

strategic

and a number

strategy formulation

particular approach to

any

15

potential.

as

"A challenging

it

makes

very

clear

the gap between present activity

yet achievable vision embodies

what an organization wants and what

it

have"

can

the process

(Senge, 1990,

p.

the tension between

25).

Strategy for Nonprofits

Implementing

Strategies

may include this step the

Issues,

complete

as

while

described

and

Plans Successfully. Smaller, less

Formulating

and

For any organization, the

previously.

the transition from strategic planning to strategic

adopted strategies

throughout the

by the development

and processes

by which to implement these

is to differentiate between

behaviors, changes.

products, services,

Outcomes

of effective

in the

plan.

implementation

Bryson

direct

critical

that arise. In this

people must

learning

Bryson'

and

occur as part of the

separate activity.

Four

is

term

consideration

a major theme

their

larger

desirable to

new procedures and adapt them

and

effective

informed"

strategies and plans

Change

Cycle"

that have been

likely to result,

(p. 169).

a continuous

is indicative

of the need

formulated. Much

ongoing implementation process, but it may

identified

plan

to situations

implementation is

Plans. Effective planning is

"Strategy

main reasons are

by the policy

underlying

neither possible nor

"more

in this

the actual actions,

are

is,

budgets,

effectiveness and overall success of

likely to be better

Strategies

s use of the

to continually revisit the

learn

environment

Reassessing and Revising

may

that

plans,

vision and mission of the organization as

"Learning is

(p. 167). Since it is

the next round of strategizing

process,

outputs-

efforts"

everything in advance,

and

"Outputs

166). This is

action

consequences produced

in evaluating the

that

p.

step is "to

by incorporating

management

An important

outputs and outcomes.

or other

states

purpose of this

programs, projects,

changes.

the strategic planning process in achieving the stated

Plans to Manage

and

(Bryson, 1995,

are the ramifications of those

(p. 167). This distinction is

complex organizations

system"

relevant

accomplished

stage

Strategies

Adopting

16

need

of this

to be a

by Bryson (1995) that may cause

Strategy for Nonprofits strategies to

fail. Insufficient

resources

may change, interactions between political environment

remains responsive to

generation of needed

overcrowded with

(p. 192). The

depending

may

shift.

important

may be devoted to

policies

Benefits

issues,

may

produce undesirable

of this

step

are

and

of areas

that are

strategies"

in

process would

However, it is

which nonprofit organizations operate

goals and strategies of most organizations should

organizations are

strategy

and pieces of assorted

on the type and nature of the organization.

world

that the new

implementation difficulties,

pruning

frequency and formality of this reassessment

rapidly changing

problems

results, or the

"assurance

resolution of residual

energy for strategy renewal,

bits

implementation,

17

dynamic

to remain

clear

vary that in the

the mission, vision,

be systematically

reviewed

if the

and competitive.

Strategic Planning Workbookfor Nonprofit Organizations

As indicated

by the title,

this

Wilder Foundation is intended produce a strategic plan.

determining: direct

the

workbook

to serve as a

by John Barry produced for the Amherst guide

Barry (2001) defines

for

strategic

(1) what your organization intends to

organization and

its

resources

nonprofit organizations

planning

accomplish,

as

and

months and

Several

reasons

(p. 5).

for developing

a strategic plan are

Rapidly changing community conditions A desire to have

(2)

process of

how

you will

toward accomplishing these goals over the

years"

coming

"the

that wish to

a greater

impact

identified:

18

Strategy for Nonprofits New financial A way to

pressures or competition

align

mission, programs, resources, and

Like Bryson, Barry also identifies limitations planning should not be undertaken: Costs

can outweigh

money When poor

plans are

future,

the

benefits;

9)

or situations where strategic

the planning process

be

spent more

likely;

this can be

which might

(p.

relationships

time and

can consume

tasks.

on other

productively due to faulty

assumptions about

poor assessment of an organization's

capabilities,

or poor

group dynamics. Intuition

and

"creative

planning.

Gifted

formal planning

muddling"

are sometimes superior to traditional

and

intuitive leaders may

process.

Alternately,

a skilled team of people- who work

know

for

obviate the need

"creative

a

muddling"

occurs when

each other's

talents and

together creatively and opportunistically to achieve a

abilities-

particular

goal"

purpose or

When

critical problems should

be

"whose

of the organization

respect

to process, the

poor

similar

to

Bryson'

s

fallen"

roof has

analogy When implementation is unlikely, due to resources, (p. 11)

With

this is

first;

addressed

leadership

or

lack

of

"key is to find the fit among three forces- your capabilities"

organization's

mission,

outside

opportunities,

(p.

and your organization's

a

-i-

^'

'"WRatatV"

Figure 2: Finding th F*t

~"

any

STEPl Get Organized

you are

planning

and

concerns

a steering group or person to the planning on track

Select

keep

Determine if outside

help

is

needed

Outline the planning process that fits your organization

Get

commitment

to

proceed

Pull together necessary background

STEP 2

information

Take Stock

Review

(Situation

your nonprofit's

present,

Analysis)

and

future

Identify key issues

Develop

past,

situation or choices

a vision of your

future Critical issues approach

organization's

STEP 3 Set Direction -

Scenario approach Goals approach Alignment approach

Determine how to zation

Develop

a

STEP 4

Review

Refine

Adopt the

and

move

the organi

toward this future

first draft

and refine

of the plan

the

plan

plan

Adopt the Plan

*

STEPS Implement the Plan

Implement the

Monitor Make

adjustments

Periodically

Copyright

1997 Amherst H. Wilder Foundation, 919 Lafbnd

Avenue, St. Paul, MN 55104

plan

progress

update

the

plan

Strategy for Nonprofits

Appendix C

The

The

Planning

strategic

thought

planning

Pyramid

of as a pyramid,

the

be

process can

where each of

content/process elements

support those above them.

An

organization's mission

supports its vision. elements need

that is, the

being

~

be large

goals and

Strategies

are

a systematic

facing

the strategic nature of the

those activities that

the

vision

enough so

is

always

positively to

it.

A

small number of

organization

process

is ideal.

is lost.

will achieve goals when undertaken

over a period of time.

way down into their component

mission

stretched

support an organization's mission and vision.

Too many

in

other

achieve

issues

work

tension with each

that the

goals that address the most critical

to

creative

should

Goals

These two

in

Strategies need to be broken

(or tasks), assigned to individuals, committees, or work groups, and given timeframes for their completion. Tasks become the annual work plan or implementation plan for the parts

organization.

fail because they don't address the task level of detail. However, it is the identification of tasks that forms the all-important base of the pyramid. Plans

often

ANNE W. ACKERSON

Management, Development & Creative Services for Cultural Institutions 1914 Burdett Avenue Tel/Fax: 518-271-2455

Troy, New York 12180 Email:

[email protected]

67

Strategy for Nonprofits

Appendix D: Letters Sent to Peter F.

68

Study Organizations

Roland, Jr.

22 Hillcrest Avenue

Lake Placid, NY 12946 518-523-9243 e-mail:

[email protected]

February 23, Ms.

Mary Lou Willits, Valley Museum

2003

Director

Slate

17 Water Street

Granville, Dear

NY 12832

Mary Lou:

In preparing for our meeting on Tuesday morning, it seems that providing you with a list of questions in advance will facilitate our discussion. I met with Anne Ackerson last week,

and as a result of that

have developed that have been

some

broad

undertaken

reading the literature on Strategic Planning I which I hope to use in evaluating planning processes

meeting criteria

and

by other organizations.

For "thought

Evidence of a thoughtful approach to the process. This was

involved,

"championed"

who

would

the process, methods used

starters"

these are:

include timeframe,

for achieving the

who

process

elements.

it

solicited?

Discussion. That planning documents

are

informed

Vision/Mission/Goals. Do

tie into each other

Outside input. From

who and

how

was

Was this input

used to

inform the

process?

ideas

and

language

all of these

reinforced

Prioritization ofgoals

throughout the

and strategies.

by thoughtful discussion on multiple

of issues.

levels? Are the

documents?

Does the

plan arrange

these based on

prioritization?

Annual work plan. Was this developed? How has it been

included in the

plan

for its ongoing

used?

Are there

mechanisms

evaluation and updating?

my reading of the material you sent it appears that many, if not all, of these actions have been taken. I would be interested in your observations on these criteria and if there are any critical elements or aspects of the process I may have overlooked.

Based

on

Strategy for Nonprofits After reviewing

your

relate to or support

On 6/16/01 6/25/01

meeting.

your second

Statement in Your third

were

meeting

relation

list

some more specific questions, some of which

"considerations"

of

for goals, 4

areas

existing

7/10/01

on

from Board

and

Staff,

to the

prior

of which

eventually

were

included in the

committee structure within the organization?

you

drafted

a

Vision Statement

and revised a

Mission

to the Vision Statement. Did this Mission Statement already

8/13/01

and your

exist?

document was adopted on 12/1 1/01 There in the interim to put the results of your .

a considerable effort expended

into

workplans are

a workable

form. How

impressive! Who

My Masters program is in the considering the some can't, but

had

these developed? Why?

on an

session was on

three meetings

a

6 functional

had to have been

The

How

Were these based

plan.

In

on

also

the criteria above:

developed

you

You focused

documents 1

69

was

this

work

for

was responsible

undertaken, and

by who?

developing these?

Service Management, and we spend a lot of time that can result from any process. Some can be quantified, considered in evaluating the success of any process improvement. area of

"deliverables"

all are

The deliverables I have been

able to

identify from a

Strategic

Planning

process are:

Board Development, Strengthening of organizational structure, Staffing, Funding, Membership, Collections policy, and Program Development. I would be interested in your

thoughts on

areas,

I

and

any

would also

what

others

be

most

impact the

process your organization undertook

interested in any

of success or

failure in undertaking

and

else you think

anything

I know this is

a

I

might

general observations you might

a strategic

planning find helpful.

I

will

on

these

process and

have

on

the

implementing

causes

a

plan,

big list! ! ! By providing it to you in advance I thought you might have a

chance to reflect on some of these areas and we could possible.

had

that I may have overlooked.

look forward to meeting

with you on

have the

most productive

Tuesday morning at

10:00.

Sincerely,

Peter F. Roland, Jr.

meeting

Strategy for Nonprofits

70

Peter F. Roland, Jr. 22 Hillcrest Avenue Lake

Placid,

NY 12946

518-523-9243 e-mail:

[email protected] February 27,

2003

Ms. Jean Guthrie

Big

Springs Historical

Society

P.O. Box 41

Caledonia,

NY 14423

Dear Jean: Due to my

facility

before I

starting

semester, it is unlikely that I

class schedule this

to RIT for classes in the first two

return

some of the

writing for my thesis shortly, I

am

be

will

able to visit your

Since I

weeks of June.

hoping

will

be

that I might be able to

regarding your planning process. I of the areas I am interested in might

speak with you over the phone to ask some questions

thought giving you

an

idea in

advance of some

facilitate

our

First, I

to find out some information about your organization in order to compare it in the study group, including the Lake Placid-North Elba Historical Society.

to

discussion.

need

others

These include: Number

Operating Budget? Hours/Days

of Operation of your

Number

of Volunteers utilized

Number

of members of the

in

of Visitors per year

Facility?

Admission Charge?

operating?

When

was

the

(if known)?

Society

started?

Board?

Anne Ackerson last week, and as a result of that meeting and reading the literature on Strategic Planning I have developed some broad criteria which I hope to use in evaluating planning processes that have been undertaken by other organizations. For I

met with

"thought

starters"

these are:

Evidence of a

"championed"

timeframe,

This

thoughtful approach to the process.

who was

involved,

achieving the process

Outside input. From

who

would

include

scope and

the process, methods used for

elements.

who and

how

it

solicited?

are

informed

was

Was this input

used

to inform the

process?

Discussion. That planning documents

by thoughtful discussion of issues.

Strategy for Nonprofits Vision/Mission/Goals. Do all of these tie into each other on ideas and language reinforced throughout the documents? Prioritization of goals and strategies. Does the

multiple

plan arrange these

71

levels? Are the

based

on

prioritization?

Annual workplan. Was this developed? How has it been used? Are there included in the plan for its ongoing evaluation and updating? Based

mechanisms

actions

my reading of the material you sent it appears that many, if not all, of these have been taken. I would be interested in your observations on these criteria and

if there

are

on

any

critical elements or aspects of the process

After reviewing

your

documents I

also

had

I may have

overlooked.

some more specific questions, some of which

relate to or support the criteria above:

Anne's of the

have In

1998. You indicated in

August,

to the Board

your notice

2/20/99 meeting that it might be Anne's last visit. How many meetings did her, and with the full Board (perhaps not including Anne)?

you

with

your

plan"

there

from

original report was

2/14/99

memo referenced above you stated

As President

other

Board

Committee"

opinion,

of the

Board,

members

the level

you are

"committed to creating

clearly

were a

"buy-in"

of

a

"Planning

that kept the process moving? In

from the Board

sufficient

to

a

Were

of the process.

involved from the beginning? Was there

composed of Board members

was

that

"champion"

you

your

make the process

meaningful and successful?

You focused

on

3

identified in

Resources)

your

in the

main areas

Visioning exercise.

Were these based

on an

existing

Likewise, do the 4 main Goal areas Action Plan (Audiences, Collections, Physical Plant, Growth &

committee structure within

reflect an

the

existing

establishment of committees

organization?

Or alternately, did the Plan drive the

committee structure?

to

work on

implementation

of the strategies and

tasks

included in the Plan? Did a Mission Statementfor the

Society exist prior to starting the process?

I really liked the Vision-Mission-Goals worksheet. Was this supplied it provided to members of the Board in advance of the first meeting? The Action Plan is very results of your meetings

detailed, into

and must

a workable

have

by Anne,

required a considerable effort

form. How

was

this

work

Were the Action Plan

templates provided

by Anne,

or

something

to put the

undertaken,

who?

you created?

and was

and

by

Strategy for Nonprofits I

was

these

impressed that the Action Plans been followed through on?

went through

The Job Description for Council Members

My Masters program is in the considering the some can't, but

"deliverables"

area of

seems

three years, in varying detail. Have

like

a great

Service Management,

and we spend a

identify from a

able to

areas,

I

any

would also

on what

impact the

others that

be

Planning process are: structure, Staffing, Funding,

most

I may have

failure in undertaking

and

else you think

I know this is

a

might

general observations you might

a strategic

me

for

possible.

are most

Please let

me

know

discuss these

planning

process and

have the

on

these

have

on

the causes

implementing

a

plan,

have

a

most productive

by phone or e-mail when

areas.

flexible for me, but I

I sincerely appreciate in June! meeting you.

had

big list! ! ! By providing it to you in advance I thought you might

to give you a call to

Thursdays

be interested in

find helpful.

chance to reflect on some of these areas and we could

discussion

would

overlooked.

interested in any I

I

process your organization undertook

of success or

anything

of time

Strategic

Development, Strengthening Membership, Collections policy, and Program Development. of organizational

and

lot

effective?

that can result from any process. Some can be quantified, in evaluating the success of any process improvement.

Some deliverables I have been

thoughts

idea. Has it been

all are considered

Board your

72

it

might

be possible for

Based

would

on my class schedule Tuesdays and like to do it when it is most convenient

your assistance with

this project, and

will

look forward to

you

Sincerely,

Peter F. Roland, Jr.

Strategy for Nonprofits

Appendix E: Sample

of

Slate

Valley Museum Workplan

a "

"5

S oo

> sz i$.

OS

e

o

to

X

11

o flj u CL P.

o

xn

cn

s c O

"5 I

O

c

ep"S

J3 S y ; g

a o a

E o B

SZ, 3

3

a.

XI

E

s

3

o

41

a

ap g

cfc

Q

3

o

o o

8 S

g

a ID

03

o

c

1*

3(S i

T?

c

>

in

o

8 S

u

d

S s

OO c

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