3B Strategic Planning: Giving your Association or Charity Purpose plus Direction 25 – 26 November 2014 1:30pm – 3:00pm #FL14
John Peacock General Manager Associa/ons Forum www.associa/ons.net.au Future Leaders Conference: 25 November 2014
(Strategic) Planning for Associations & Charities
1. Why associa/ons & chari/es must plan 2. Framework of the plan, star/ng with
mission then cascading to details 3. A typical associa/on planning day 4. Prac/cali/es & implementa/on 5. (J L J L case study if /me permits)
Agenda
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Plans: Strategic? Opera/onal? Business? Financial?
• Every associa/on needs a plan and budget (ie financial plan) • The term “strategic” is widely used – it is an important
concept, although not everyone will agree what is strategic and what is not strategic
• The plan structure needs to allow for ranking of priori/es • Of military origin, “strategy” refers to a plan of ac/on
designed to achieve par/cular goals • The key is to use the Mission and Goals to cascade down to
the details, plus add priori/es
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Plans must be flexible and allow (or disallow) new ideas
• Every associa/on must plan • Plans must be flexible – there is no point following a Plan that is wrong for now
• Plans are a filter through which new ideas must pass: – Does the new idea fits the plan? – Can it be afforded? – What needs to be stopped to allow new idea in?
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ü ‘The framework of rules, rela/onships, systems & processes within and by which authority is exercised and controlled in corpora/ons’
Governance defined
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Roles of Board & CEO (1 of 3)
• When funds allow, associa/ons employ (or contract) staff
• When people are employed for administra/on, Board s/ll makes the decisions
• When management-‐level staff (led by CEO) are employed, Board needs to let go of management and have less Office Bearers
• Boards are willing (and some/mes even pleased) to let go if they can see the CEO has a Plan and knows their role
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Roles of Boards & CEO (2 of 3)
• Early clarifica/on of the roles is necessary • Both par/es must have their priori/es & insights built into the Planning process
• Board confirms Mission, Goals, strategic direc/on & gives ini/al input into plan
• CEO/Management develops the opera/onal & budgetary plan including risk analysis
• Board approves detailed Plan & Budget
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Board role CEO Role ü Ensure relevant informa/on is
obtained ü Set the strategic direc/on ü Approve the strategic plan ü Establish a framework for the
CEO’s ac/ons including KPI’s ü Establish / approve relevant
policies ü Appoint, appraise the CEO ü Dismiss the CEO where
circumstances require
ü Ensure that the Board direc/on is accurately reflected in the strategic plan
ü Manage the development, maintenance of systems to achieve the organisa/on’s mission
ü Prepare detailed plans and budgets
ü Appoint, appraise, promote and dismiss staff
ü Primary source of advice to the Board
Roles of Board & CEO (3 of 3)
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Ownership of the Plan within the associa/on
• Members of the Board must feel ownership of the ‘big picture’ of where the associa/on is heading
• Where staff are employed, they need ownership of the details and should not be micromanaged
• The ‘big picture’ plan should be shared with the membership, excluding confiden/al aspects, opera/onal details of the Plan and budget
• Engaging the Board with the Mission and Goals is the key to keeping opera/ons separate
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Plans don’t solve systemic problems – unless you plan to solve these
• If the structure or culture is problema/c, systemic difficul/es will remain – no macer how good your Plan.
• Ensure the Board & management understand that governance is dis/nct from management
• Delay in correc/ng structural or cultural issues will hold back your associa/on
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2. FRAMEWORK OF THE PLAN
• Clarifying Mission of the associa/on or charity • Environmental scan, strategic awareness and input from stakeholders
• Sedng key priori/es whilst considering resource availability
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Clarifying Mission
• Mission (easy to change) & official “objects” in Cons/tu/on (hard to change) must be aligned
• Mission statements must be clear, prac/cal, & contemporary – yet wise older words are OK
• If the process of reviewing Mission is poorly handled, it can damage Governing Commicee focus and cohesion (only allow 60 minutes)
• Once set and agreed on by the Governing Commicee, the Mission is a powerful force & mo/vator – as is the Plan
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Do associa/ons need a Vision and values?
• You do not necessarily need a “Vision” statement (but you must have a Mission statement)
• Vision statements are different to Mission statements – they are higher, broader and a direc/on to head in – not necessarily what can be achieved
• Visions can apply to the very broad industry or cause (eg eradicate cancer), whereas Mission statements are the purpose of the associa/on or charity
• Values statements are noble but harder to implement – becer to have Code of Ethics for Governing Commicee
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Goals must cascade from Mission
• Once the Mission is set, agree on 5-‐7 areas for Goals to achieve the Mission
• E.g. advocacy, educa/on, professional standards, member services, fundraising, governance & opera/onal support
• Once the Goals are set by Board, management populate the matrix of ac/vi/es, responsibili/es, resources & /ming
• Details must cascade from big picture
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Mission The Mission of XYZ Associa/on of Australian & NZ is to advance the XYZ profession and to represent the interests of members.
Goals (this is the “linking” piece that is o]en missed) In order to achieve our Mission, we will: 1. Educate 2. Inform 3. Advocate 4. Expand business opportuni/es 5. Have good governance
Mission & Goals – then details in grid
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Once Mission & Goals are decided, move to details in grid format
GOAL ACTIVITY RESPONSIBLE TIMING NOTE PRIORITY
1 Educate 1.1 Conference Event Mgr May ‘15 Meas B1
1.2 On line learning External Jul ‘16 A3
2 Inform 2.1 Newslecer Comms Mgr Qtrly Meas
2.2 Website Comms Mgr Ongoing Meas B2
3 Advocate 3.1 Develop policies Board Dec ‘16
3.2 Meet Minister President Jan ‘16 A2
4 Expansion 4.1 Trade mission CEO Aug ‘16 Meas
4.2 Economic analysis External Nov ‘16 B3
5 Governance 5.1 New database CEO Jul ‘16
5.2 Review Cons/t’n Sub C’tee May ‘16 A1
5.3 Govern training CEO Nov ‘16
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Vital components necessary to achieve mission
• Financial capability • Organisa/onal capability • Planned sustainable growth • Communica/on of our ac/vi/es • Customer service capability • Innova/on, crea/vity and wise leadership
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Environmental scan & input from stakeholders
• If resources permit, environmental plans provide evidence • While environmental scan and input from stakeholders may
vary in scope and intensity, it is a useful process • Prac/cal sugges/ons on environmental scanning:
– Seek structured stakeholder input, not anecdotal • For becer resourced associa/ons, consider scenario planning • Planning must be based on a substan/ve environment review:
– External stakeholder research – Member & client research – SWOT
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Board & CEO must be con/nually aware
• Planning is not just an annual process • Strategic awareness is built by regularly educa/ng the Board through discussing current strategic issues, and asking “what if…?”
• This process builds strategic thinking and strengthens Board capability
• Strategic discussions may result in out-‐of-‐cycle changes to the Plan
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Example of Strategic Issues
• Recent government policy / budget changes • Regulatory requirements • Demographic changes • Technology investment (including social media)
• Emerging sector trend • Economic & environmental trends • Compe//ve threats
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Management response to dra] Plan by Board
• Board must rank priori/es • This will influence CEO/management planning of staff & financial resource alloca/ons
• A rigorous review process is required including Stop / Start / Con/nue
• Plans need to assess capability, including quantum and poten/al of staff & need for external resources
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3: A TYPICAL ASSOCIATION PLANNING DAY
• Prepara/on for the Planning Day • Typical agenda for the Planning Day • Insights from experience • Next steps arer the Planning Day
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Prepara/on for the Planning Day
• Make it part of the annual Board cycle (eg every August, then Budgets in November for 1 Jan new year)
• Allocate adequate /me for effec/ve planning • Set the date months in advance • Give Board members brief but thought-‐provoking materials & key informa/on in advance
• Small key group to set planning expecta/ons • Expert external facilitator must drar the agenda
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Typical Agenda for the Planning Day
• Session 1: Big picture, reconfirm Mission & Goals, environmental scan & strategic priori/es
• Session 2: Ac/vi/es in order to achieve Goals, sa/sfy priori/es and improve business-‐as-‐usual
• Session 3: Review ac/vi/es to achieve goals and rank priori/es
• Session 4: Prac/cali/es, resources (especially staff), structures, culture and next steps
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Insights from experience (1 of 2)
• Boards vary greatly in their expecta/on & experience of the Planning Day
• Expert External Facilitator must control the flow, interac/on & ‘speakers list’
• Establish behavioral protocols • Capture words live via laptop and data projector: everyone will see the words develop and will own them
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Insights from experience (2 of 2)
• Move discussions ahead swirly enough so that they can see achievement in stages
• Don’t close off produc/ve discussions & force decisions early
• Expunge previous superseded Plans • Set reasonable expecta/ons and outperform
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Stakeholder Analysis (1 of 2)
• What do our ‘members’ / ‘customers’ want? • Recent survey results (if any) • Do we have a community service obliga/on? • Confirm service offering • Environmental (external) analysis, including, Poli/cal, Economic, Social, Technological analysis of organisa/on
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Stakeholder Analysis (2 of 2)
• Is our membership model appropriate? • Is our organiza/onal structure conducive to delivering the desired outcomes?
• Industry & compe/tor analysis • Major trends • Collabora/on opportuni/es • Services / products analysis / Compe/ng services?
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4: PRACTICALITIES AND IMPLEMENTATION
• Selling the benefits of Planning • Moving from high-‐level planning to opera/onal details and budgets
• Performance management, review and repor/ng to the Board
• Risk management • Monitoring & KPI’s • Communica/ng the Plan and “champions”
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Selling benefits of the planning process
• What is your Board’s adtude to Planning? • It is fundamental to good Board governance • Plans establish:
– Resource alloca/on priori/es – Performance management criteria – Timetable for achievement
• Delivers stakeholder value proposi/on
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From high-‐level plans to opera/onal details & budgets
• A detailed “ac/vity based” (or cost centre) budget will then need to be developed depending on the suppor/ng finance system capabili/es
• Ensure the plan & budget are in sync
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From high-‐level plans to opera/onal details & budgets
• Management team working together • Develop an agreed template • Consider level of detail (for different audiences) • Set realis/c /meframes (may extent to more than one budget cycle)
• How will your systems track, new programs, budgets & measurement
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A]er the Planning Day
• CEO leads management team to flesh out linked opera/ons plan including responsibili/es, milestones, budgets, KPIs
• Undertake a risk assessment • Prepare communica/ons to staff, members & stakeholders
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Performance Management, Review & Governing Commicee Repor/ng
Final plan encompasses: • Goals
– Programs • Measurement
– Responsibility » Resources
• Deadlines
• Monitor & Report
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Other Implementa/on Considera/ons
• From priori/es agreed to by the Board, complete documenta/on (link to budget)
• CEO confirm/challenge capacity to achieve it
• Consider assessment of risks • Board approval in cycle with budget
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Risk considera/ons in Plans
1. Does the ac/vity align with the Mission & strategic plan? 2. What research & financial analysis supports the ac/vity? 3. Do we have the financial and talent resources for this ac/vity? 4. Is the /meframe conducive to success? 5. What if: costs overrun, funding stops, /me blows out,
stakeholders reject the ac/vity, legisla/on changes? 6. What is the risk of not undertaking or failure, of the ac/vity? 7. Are there any technical, legal or reputa/on issues or risks?
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Monitoring
• Board monitoring and staff performance review cycles in synch
• Board review financials each mee/ng-‐no surprises • CEO provide strategic porvolio update each mee/ng-‐Red
flag/Green Flag • Twice a year CEO provides full report of progress against
KPI’s/key deadlines
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Key Performance Indicator (KPI)
A KPI is an indicator that is: • A measure of performance • A part of a ‘measurable objec/ve’ Components of a ‘measurable objec/ve’:
– Direc/on, KPI, benchmark, target, /me frame – E.g. increase membership, from 1,600 to 1,800 by 30 June 2016
(specific quan/fied targets, SMART, specific, measurable, achievable, relevant, /me-‐defined)
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Communica/ons -‐ the ra/onal bit
• Agree clear roles for CEO and Chair • Chair is the #1 champion of the plan • Ensure key messages are clear and unambiguous • Timetable of announcements: Board, staff, stakeholders
• Co-‐ordinate newslecer, website, social media, Q&A’s
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Communica/ons -‐ the emo/ve bit
• Good CEO’s use listening, persuasion, influencing • Communicate with staff in small groups • Take /me to align their jobs with the new future • Listen sensi/vely to their concerns, ques/ons, accommodate them if possible-‐honesty if you can’t
• Keep key messages simple and repeated
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Thank you and stay in touch
• CEO & Chair Symposium, Grand Chancellor Hobart, 12-‐13 February 2015
• Associa/ons Forum Na/onal Conference, Adelaide Conven/on Centre, 14 -‐15 July 2015
• John Peacock, General Manager • Associa/ons Forum Pty Ltd • [email protected] • +61 2 9904 8200
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