Dennis Blender Diy Strategic Planning

Do-It-YourselfStrategic Planning Process

Dennis Blender, Ph.D

Fueling Efficient Nonprofits:

Michigan SuperConference 2009

DIY Strategic Planning 2

Agenda

1. Benefits of Strategic Planning2. Visionary Companies

a. Core Ideologyb. Envisioned Future

3. Analysisa. SWOT Analysisb. Community and Demographic Datac. Critical Success Factorsd. Competitive Analysise. Business Definitionf. Emphasis Statement

4. Strategic Action Plansa. Targets and tactics

5. Monitoring & Evaluation6. Communication


Benefits of Strategic Planning

Clearly define the purpose of the organization and establish realistic goals.Develop a sense of ownership of the plan.Ensure the most effective use of resources by focusing on key priorities.Provide a base from which progress can be measured.Recognize the impact the changing environment has on the organization and affect the needed changes.Further develop staff and board relationships.Develop a mechanism to focus on the organization's future.Provide leadership development training.Provide a framework for decision making in the organization.

Visionary Companies


Jim Collins, Built to Last, 1994

Visionary Companies

Preservethe

Core

Stimulate Progress

Core IdeologyCore PurposeCore Values

Envisioned Future10-25 Year BHAGVivid Description


Core Ideology

Core Purpose The organization's reason for being. Reflects people’s idealistic motivations for doing the organization’s work. It captures the soul of the organization.

Core Purpose – Examples 3M: To solve unsolved problems innovatively Mary Kay Cosmetics: To give unlimited opportunity to women Merck: To preserve and improve human life Nike: To experience the emotion of competition, winning, and crushing

competitors Sony: To experience the joy of advancing and applying technology for the

benefit of the public Wal-Mart: To give ordinary folk the chance to buy the same things as rich

people Walt Disney: To make people happy


Core Values The essential and enduring tenets of an organization A small set of timeless guiding principles Require no external justification; they have intrinsic value and importance to those inside the organization

Core Purpose - ExamplesWalt Disney

Creativity, dreams, and imagination Fanatical attention to consistency and detail Preservation and control of the Disney magic

Sony Elevation of the Japanese culture and national status Being a pioneer – not following others; doing the impossible Encouraging individual ability and creativity

Nordstrom Service to the customer above all else Hard work and individual productivity Excellence in reputation; being part of something special

Philip Morris The right to freedom of choice Winning – beating others in a good fight Hard work and continuous self-improvement

Core Ideology


Envisioned Future Big Hairy Audacious Goal (BHAG)

A bold mechanism to stimulate growth A huge, daunting challenge requiring a high level of commitment Clear and compelling: acts as a catalyst for team spirit Requires little or no explanation: people “get it” right away A specific goal with a timeframe (10-25 years)

Role-Model BHAGs Stanford University, 1940s: Become the Harvard of the West Giro Sport Design, 1986: Become the Nike of the cycling industry

Target BHAGs Wal-Mart, 1990: Become a $125 billion company by the year 2000 Ford Motor Company, 1950: Democratize the automobile

Internal Transformation BHAGs GE, 1980s: Become number one or two in every market we serve Rockwell, 1995: Transform from a defense contractor into the best

diversified high-technology company in the world

Common enemy BHAGs Nike, 1960s: Crush Adidas Honda, 1970: We will crush, squash, slaughter Yamaha


Vivid Description A vibrant, engaging, and specific description of what it will be like to achieve

the BHAG Translating the vision from words into pictures: “Painting a picture with

words” Passion, emotion, and conviction are essential An effective envisioned future requires a certain level of unreasonable

confidence and commitment The envisioned future involves essential questions as:

Does it get our “juices flowing”? Do we find it stimulating? Does it spur forward momentum? Does it get people going?

Envisioned Future


Ford Motor Company (Henry Ford)I will build a motorcar for the multitude. It will be so low in price that no man making a good salary will be unable to own one – and enjoy with his family the blessing of hours of pleasure. The horse will have disappeared from our highways, the automobile will be taken for granted; and we will give a large number of men employment at good wages.

Merck, 1979We will be the first drug maker with advanced research in every disease category. Our research will be as good as the science being done anywhere in the world. Our drugs won’t be used by a single person who doesn’t need them. We will be at the leading edge of concern, making contributions to he problems society is struggling with and making a contribution to the environment I in which we live.

Giro Sports Design, 1991The best riders in the world will be using our products by the year 2000. Winners of the Tour de France, the World Championships, and the Olympic Gold Medal will win wearing Giro helmets. We will receive unsolicited phone calls and letters from customers who say, “Thank you for being in business, one of your helmets saved my life”. Our employees will feel that this is the best place they’ve ever worked. When you ask people to name the top company in the cycling business, the vast majority will say “‘Giro”.

Envisioned Future

SWOT Analysis


SWOT Analysis

Brainstorming Generating many ideas and

possibilities Strengths, weaknesses,

opportunities, threats Identify patterns, themes Prioritization Consensus

Rules of Brainstorming The more ideas, the better The wilder the ideas, the better Absolutely no discussion Absolutely no evaluation

Positive or negative Verbal or nonverbal

Hitch-hiking is OK Silence is OK

Identification of Strengths, Weaknesses, Opportunities, Threats

Board Staff

Volunteers Other


STRENGTHSTeam 1

OPPORTUNITIESTeam 3

THREATSTeam 4

WEAKNESSESTeam 2

SWOT AnalysisRound Robin Brainstorm – 4 Teams

STRENGTHSTeam 4

OPPORTUNITIESTeam 2

THREATSTeam 3

WEAKNESSESTeam 1

STRENGTHSTeam 2

OPPORTUNITIESTeam 4

THREATSTeam 1

WEAKNESSESTeam 3

STRENGTHSTeam 3

OPPORTUNITIESTeam 1

THREATSTeam 2

WEAKNESSESTeam 4

Round 1 Round 2

Round 3Round 4

Process – 4 “rounds”1. Brainstorm (4-5 minutes/round)2. Group and prioritize3. Share and gain consensus

Community and Demographic Data


Additional Input

People/organizations Funders, Foundations Business community Colleague organizations Past-Presidents Professional associations

Quality assurance Surveys Evaluations

Questions Do they have a strategic plan? What is it? (if appropriate) What do they perceive as the strengths, weaknesses, opportunities and

threats of our organization? What challenges to they perceive for organizations similar to us ? What initiatives do they recommend for us over the next 3-5 years?

Client data/trends Client satisfaction surveys

Demographics Financial data

Potential Sources

Critical Success Factors


Assessment

Functions to Assess Human resources Information technology Finance Facilities

CategoryStrengths Weaknesses Opportunities

Assessment:

Fund development Marketing/public relations Client satisfaction Quality assurance Other


Assessment

Functions AssessmentHuman resourcesInformation technologyFinance FacilitiesFund developmentMarketing/public relationsCustomer satisfactionQuality assurance

Competitive Analysis


Competitive AnalysisOur organization

Why would potential clients want to be served by us? Why would people want to work for us? Why would funders/donors want to give money to us?

Our competitors Why would potential clients want to be served by others? Why would people want to work for others? Why would funders/donors want to give money to others?

Advantages Disadvantages

Business Definition


BBusiness Definition

Who? What? Where?

Who Not? What Not? Where Not?

Who Else? What Else? Where Else?


ReduceWhich factors should be reduced well below the industry’s standards?

RaiseWhich factors should be

raised well above the industry’s standards?

EliminateWhich of the factors that the

industry takes for granted should be eliminated?

CreateWhich factors should be

created that the industry has never offered?

A New

Value Curve


Chan Kim and Renée Mauborgne, Blue Ocean Strategy, 2005


Eliminate Raise

Reduce Create


Emphasis Statement


Emphasis Statement

Predictability Effective execution of systems Ability to plan and accurately

forecast Standardized operating

procedures (SOP’s) to maximize efficiencies

Growth Expansion of services Increase of clients Increase the number locations,

geography

Financial Security Able to generate operating

surpluses reliably and as planned

Generate sufficient cash to finance operations and meet liabilities

Efforts to become financially sustainable or self-sufficient


Emphasis Statement

In pursuing our strategy, we will emphasize predictability, financial security, and growth as follows:

Emphasis Year 1 Year 2 Year 3-5Predictability

Financial SecurityGrowth

Strategic Action Plans


Strategic Action Plans

PredictabilityInitiative Champion Start End

GrowthInitiative Champion Start End

Financial SecurityInitiative Champion Start End

Monitoring & Evaluation


Monitoring & Evaluation

Key questions while monitoring and evaluating implementation of the plan Are targets and tactics being achieved or not? Will the targets and tactics be achieved according to the timelines specified in the

plan? If not, then why? Should the deadlines for completion be changed? Do staff have adequate resources (money, equipment, facilities, training, etc.) to

achieve the goals? Are the targets and tactics still realistic? Should priorities be changed to put more focus on achieving the goals? What can be learned from our monitoring and evaluation in order to improve future

planning activities and also to improve future monitoring and evaluation efforts?

Frequency of monitoring and evaluation (recommendations) Strategic Planning Committee assumes responsibility for monitoring and evaluation:

quarterly Boards of Directors should see status of implementation: yearly Leadership team should see monitor status: monthly

Communication


Communication

Communicating the Strategic Plan (recommendations)

Presentation(s) at Board Meetings. Presentation to all staff. Post your purpose and values on the walls of your offices. Consider giving

each staff member a card with the statements (or highlights from them) on the card.

Publish portions of your plan in your regular newsletter, and advertising and marketing materials (brochures, ads, etc.).

Include portions of the plan in policies and procedures, including the staff manual.

Consider sharing portions of the plan for major stakeholders, for example, funders and other agencies/collaborators.

Dennis Blender, Ph.D.Professional Background


BackgroundDennis Blender has over 20 years of psychological consulting experience in organizational development, team dynamics, and facilitation. Particular strengths are in strategic planning, group facilitation and conflict resolution. He has conducted organizational culture analysis to determine strengths, weaknesses, and recommendations for improvement. He is extremely proficient at assisting organizations determine their core purpose and core values, and align their values with systems and behavior. Prior to launching BCG, Dennis was a Partner at Plante & Moran, LLP, in the Management Consulting Services Group. He earned a Ph.D. from Wayne State University in Educational Psychology, an M.S. in Rehabilitation Counseling from Boston University, and a B.A. in Psychology from Ohio University.

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