If Nonprofit Strategic Planning is Easy, You’re Doing It Wrong

COVID-19 has had a dramatic effect on nonprofits and has created a profound level of uncertainty  in it’s wake. Questions such as, “How do we offset the loss of revenue or rising costs?”, “How do we address competition from other not-for-profits and for-profits?”, and “How do we restructure coming out of this crisis?” have overtaken nonprofit leadership and board meetings and have left many struggling to plan for the future while working to address the problems of today. 

However there are nonprofits out there that are using the uncertainty of today to purposely shape their future. Through innovation, effective planning, and intentional implementation, they are creating higher levels of certainty and long-term sustainability for their organizations. 

What’s the secret to their success? The Nonprofit Strategic Plan. 

It has never been more critical for organizations to have a board of directors, staff, and stakeholders aligned and this begins with nonprofit strategic planning. The process brings an organization together to build a shared understanding of macro trends, to inspire and embrace new thinking, and to establish a shared understanding of the change and decision-making that will follow. 

In the current landscape, this will not occur without some level of stakeholder discomfort. 

Gone are the days of just thinking in real-time or short-term 1-2 year horizons. A successful nonprofit strategic planning process now requires organizations to conceptualize what sectors and industries will look like in ten years. 

It may seem unrealistic and haphazard but the purpose of a ten-year timeline is to create space between the present and the future that is non-threatening, abstract, and vague, but allows for big thinking. 

When organizations get bogged down in operational or tactical thinking, the planning process becomes restricted. Large-scale trends occurring at the macro level are often ignored, which can limit an organization to a small scale mind-set leaving them unable to remain competitive and relevant long-term.

Alternatively, a ten-year timeline, which given the pace of change is more likely to manifest within 3-5 years, is critical to elevate the level of perspective when designing larger-scale strategic initiatives. As strategic thinking expands to include a bigger picture of the macro trends and eco-system, those involved in the planning process will begin to more clearly identify the real urgency and threats on the horizon. This will highlight and support the immediate need for the change and evolution necessary for growth and sustainability. 

What this means for you.

The trends our nonprofit consultants are seeing within the major nonprofit sectors are so substantial and disruptive that it is imperative that you step back and look further ahead to fully understand the landscape you are operating in. This will help you establish a clear vision and, in turn, to create a plan for what to do and ways to accomplish goals that may be exponential in design. Nonprofit organizations that can accomplish this will develop and implement long-range strategic moves, giving them the advantage over any competition that is solely focused on what is occurring within the immediate future. 

Where you should begin.

The most successful organizations have President/CEO and Board Chair relationships that are rooted in trust, teamwork, and shared thinking. The strength of this team will help alleviate any apprehension that arises as a result of the new expanded strategic thinking in the boardroom and at the management table. It is important to take the time to successfully manage this relationship and to find common ground and understanding when necessary.

It is worth noting that many new Nonprofit Presidents and CEOs will start the strategic process within 12-24 months of being hired as a means of bringing the team together and aligning relationships, teams, and stakeholders to new ideas. 

When you are ready for what’s next.

When the decision is made that a strategic plan is needed to refocus or shift the focus of the organization, the President/CEO and Chair should come to an agreement on the planning process or the consulting firm that will be engaged to facilitate the process.

Regardless of the path taken, we have designed and recommend a planning process that:

• Embraces new insight and big picture thinking

• Connects the action items of the plan to implementation by using a planning method that balances long-term relevance with agile thinking

• Utilizes time and levels of perspective to achieve exponential thinking.

Once the strategic plan is complete, the real journey and teamwork between the President/CEO and Board Chair begins. The plan is only as good as its implementation success and its ability to drive change, so this is where the strength of the team is crucial. 

From a governance perspective, the Chair is responsible for shifting the thinking and decision making of the board. He or she must move past legacy ideas to operating in the best interest of achieving the plan in mind. For example, if leadership approaches the board wanting to invest some of the cash reserves into one of the strategies, there is a clear distinction between the board reacting conservatively or agreeing to invest in the plan and future while managing the risk exposure.

The President/CEO has a similar journey ahead with their team members, with the additional responsibility of having to operationalize the new plan. This will require innovative thinking or new ways of conducting business. It may include hiring new staff, embracing new and unfamiliar technologies, and managing the team differently given they need to evolve to new ways of doing things.

Whether it is leadership, the board, or the organization as a whole, driving the change required to achieve the goals of a new strategic plan is not easy. However, the success of strategic planning and implementation is about bigger thinking and having the right people in place to achieve the goals. When those things are aligned, growth can occur and organizations will find themselves better positioned for the future.