Designing Transformational Strategy

Last month, our Nonprofit Strategy Report focused on the importance of developing engaged trustees for the board. In this month's report we are going to look at how to design transformational strategy. These are the three major levers that nonprofit CEO's need to be focused on consistently to break the status quo:

  • Developing Engaged Trustees
  • Designing Transformative Strategy
  • Developing Staff

Transformation is about creating a future that does not exist. It is about thinking differently and outside the scope of the existing business model. Designing Transformative Strategy is to look beyond what the organization is currently doing, and determining new ways of achieving the mission and goals.

There is a great saying, "If you do what you have always done, you will get what you have always gotten." This means that breaking the status quo requires bold thinking and action. It also requires strong leadership! 

There are three key steps to designing transformational strategy:

Step 1 - Assess

Gain a deep understanding of the business model of the organization. It is critical to know what drives the economic engine, who the real customer is, the value proposition to those customers, and the partnerships that support success.

This assessment will allow leaders to better understand their organization and how new ideas will impact operations. This will increase the ability to implement change with the staff in a pragmatic way.

Step 2 - Engage

Identify stakeholders internally and externally to the organization that will be engaged in the strategy design process. Stakeholders can include: Trustees, staff, donors, foundations, "customers", local or state government, other nonprofits, partners, vendors, and other important individuals or organizations. 

We engage stakeholders to understand where they see opportunities and threats for the organization. This is similar to crowd sourcing ideas from large audiences. The CEO should not sit in a room and try to think up a strategy or vision. This should be done through the feedback and insights of the stakeholders interviewed.

When we engage stakeholders to be part of the strategy design journey, we are enrolling them in the future success of the nonprofit organization. By doing this, we will have created ownership and buy-in to the future direction. The strategy design is co-created with multiple viewpoints, ideas, opinions, and different ways of thinking.

Here is an example of why engaging stakeholders is so important: Did you ever have a job performance evaluation? Performance evaluations can be done by a supervisor, which is the feedback and evaluation from just one individual. Now compare that to the different levels of perspective you would receive with a 360 degree feedback from your supervisor, peers, colleagues, and subordinates. The benefit of the 360 degree evaluation is going to be far more valuable because it is from multiple levels of perspective and from more than one source.

The same value can be attributed by engaging multiple levels of stakeholders during the strategy design process. This allows ideas to be shared that may become the organizations next strategic area of focus. It also generates a significant amount of momentum when transitioning from plan design to implementation. That momentum can help drive the change and transformation needed for ensure success.

Step 3 - Assemble

Once the assessment of the business model has been done and the stakeholders have been engaged, now it is time to put the data and ideas together. What we are looking for during this step is the ideas and opportunities that align and corroborate from all the interviews and data points. The more the feedback corroborates the more relevant and applicable the idea(s) becomes to the strategic direction of the organization. 

The future strategy design of the organization should be generated through the stakeholder feedback. This creates transformational ideas to assemble into a plan for the leadership team to implement and achieve.

Next Steps

Having a transformative strategy will inspire the staff towards new thinking, but there must be a solid staffing team to deliver the results. Developing a Staff Team is the #3 lever to success, and will be the subject of our July 2015 Nonprofit Strategy Report.