Non-profit organizations exist to accomplish a specific mission that assists society in general, and in particular, cares for a need in a specific sector of society. To accomplish this mission well, non-profits need to develop an effective strategic plan. This article suggests four key elements that are necessary to effective strategic planning.
Effective Strategic Planning in Non-profit Organizations
Strategic planning is a vital component of good management in Non-profits. Effective Strategic planning enables a non-profit to:
- Manage scarce resources.
- Develop a clear and compelling picture of the future, which inspires donors and volunteers.
- Motivate staff and volunteers to focus on the right things, rather than simply doing things right.
- Develop clear benchmarks to measure success, or lack of success.
- Alert the leadership of the non-profit to needed mid-course corrections.
- Build reflexivity into the DNA of the Non-profit because of a clear understanding of the Macro and Micro environmental contexts that impact the non-profit.
Defining A Non-profit Organization
A non-profit organization exists (Murray 2009: 3) to accomplish some specific mission. It does not exist for either profit or to serve the political process. Non-profits can be made up of either all paid staff, or all volunteers, or a combination of both paid staff and volunteers. The non-profit sector comprises (Bourgeois, 2006:1) health care, education, recreation, social services, culture and community engagement.
How This Series of Articles on Strategic Planning will Assist You
It is often helpful to hire a consultant or a consulting firm to assist in the strategic planning process. Consultants can be experts in the field and thus have a great deal to offer in assisting non-profits in the strategic planning process. However, many non-profits do not have the financial capacity to hire an outsider to assist them in the development of a strategic plan. By following the steps outlined in these articles you should be able to work with your team to develop an effective strategic plan that will enable your non-profit to thrive in a complex and competitive environment.
Four Essential Elements for Setting Direction in Strategic Planning: Current Reality
When developing an effective strategic plan there are four (McDonald, 1999) essential or key elements that the strategic planning team needs to be aware of, since these four key elements will impact your capacity to develop an effective strategic plan. It may be helpful for the strategic planning team to list each of these areas and to collaborate on their current perspective on each of these areas. It will be helpful for someone in the team to take notes on each of these areas, especially noting the group consensus as it relates to each of these key elements. These four key elements are:
- Key People: Leadership
- Credibility
- Competency
- Courage
- Commitment
- Key Choices: Strategy
- Strategic Framework
- Process of Strategic Plan (how will we develop our plan?)
- Driving force (the passion that drives our non-profit)
- Key Understandings: Organizational Culture
- Values
- Traditions
- Norms
- Adaptability
- Key Capabilities: Operations
- Structure
- Resources
- Operational Plans
Conclusion: Strategic Planning is Important
This article outlines the four essential elements of strategic planning for a non-profit. Strategic planning is essential for the strength and health of any non-profit, and although the strategic planning process demands time and energy, the return on investment will far outweigh the cost of man-hours needed to develop an effective strategic plan. The four key elements of strategic planning outlined in this article are developed more fully in the article: "The Four Key Elements for Setting Direction."
Sources:
BOURGEOIS, D. J. 2006. Charities and Not-For-Profit Fundraising Handbook. 2nd ed. Markham, ON: LexisNexis Butterworths Publishers. 236p.
McDONALD, P. M. 1999. "Strategic Planning and Goal Setting in Ministry." Doctoral Lecture Notes
MURRAY, V. ed. 2009. The Management of Nonprofit and Charitable Organizations in Canada. Markham, ON: LexisNexis Butterworths Publishers. 510p.
Robert Elkington - Hi, my name is Rob, I enjoy involvement in many different activities such as: 1. Working with a range of faith based and non-faith ...
Join the Conversation