For nonprofit boards not to have a strategic plan is much like boarding a train or plane without knowing where you're going to end up. It will be difficult to get much out of the trip when you don't have the right apparel and materials and haven't planned well for your time away.
Strategic planning is a major nonprofit board activity. It's a duty that nonprofit board directors should be careful not to overlook because of busyness or any other reason.
Nonprofit boards generally put much time and attention into formulating their missions. A mission is more than a nice statement to put on the heading of nonprofit literature. It's a statement of what the organization plans to do. Strategic planning enables nonprofit boards to advance their missions. Nonprofit boards should view their strategic plans as a living document, expressed in writing, that helps the board and others form a vision of what success looks like and what resources they'll need to be successful.
Strategic planning is a periodic activity. Nonprofit boards should engage in strategic planning at least every three years. Many of them find it helpful to schedule strategic planning sessions every year. There is another important step that nonprofit boards should be careful not to overlook, and that's regularly monitoring the organization's progress against the strategic plan and having a plan for accountability.
Importance of Strategic Planning
Strategic planning is a good idea and a viable topic for board development. And, it's much more than that. The nonprofit board's role in strategic planning is a responsibility that falls under board fiduciary duties, which is the most important reason not to overlook it or rush through it hastily. It helps to recall the basic differences between the duties of board members and those of nonprofit managers as boards approach their strategic planning process. Managers are responsible for the day-to-day operations and activities. A nonprofit board of directors is responsible for short- and long-range planning for the organization, as well as oversight of all departments and operations. The duties of nonprofit board members ensure that the nonprofit continues to make progress toward its mission. A formal strategic plan helps boards determine the most pressing priorities to focus on. Setting priorities signifies what is actually doable and ensures that the board won't burn itself out trying to do too much all at once. Something that is also of great importance is that donors may ask to see the board's strategic plan in deciding if or how much they want to invest in the organization, which could net a significant financial payoff.Six-Step Process for the Nonprofit Board's Role in Strategic Planning
The nonprofit board's role in strategic planning can be pretty overwhelming unless you have a plan for how to tackle it. Nonprofit boards can simplify the process by breaking it down into six simple steps:- Review the most recent strategic plan
- Complete a SWOT analysis
- Develop short-term goals (1-2 years)
- Develop long-term goals (3-5 years)
- Determine appropriate action steps
- Decide on a process for accountability
- Scope of programs and services
- Target populations
- Locations and facilities
- Strength of the volunteer force
- Advocacy and public policy
- Branding and marketing
- Communications: internal, external, social media, website
- Resource development
- Board composition
- Financial strength
Tips for Successful Strategic Planning
Allow plenty of time for your strategic planning meeting. It may take an entire day, or you could divide the meeting time into two shorter days. Ask everyone to dress casually and to arrive prepared with lots of questions and ideas. Good sessions will be vigorous, so it helps to have water and light refreshments on hand, or a prepared lunch for an all-day session. Give the group breaks as necessary to help keep them refreshed. Prepare an agenda for the meeting and share it with participants beforehand. Arrive at the meeting well-prepared with all the necessary tools and materials to make it a productive, successful one. A board management software system is an excellent tool for running all types of board meetings efficiently. If the budget allows, it's helpful to hire an outside facilitator. Some boards prefer to do their strategic planning at an annual board retreat, where they can focus on planning without distractions. The central focus of a nonprofit is its mission. Nonprofit boards are responsible for setting up plans to work toward meeting the goals and objectives that reflect their mission. The nonprofit board's role in strategic planning is a necessary component of its work, and it's vital that the board uses every advantage they have to form the best strategic plan possible.Media Highlights
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