Nonprofit Management Certificate Course Organizational Assessment & Planning: Day 2: Morning Karen A. Curtis, Ph.D.

Strategic Planning and Operational Planning  Strategic High uncertainty Future-oriented Top Down Outside In Big Picture Qualitative Entire Organization, Function or Site  Operational Low uncertainty Present-oriented Bottom Up Inside Out Detailed Quantitative Department, Team or Individual

From SWOT to Strategic or Priority Issues  When performed correctly, SWOT analysis helps identify choices facing the nonprofit, providing a problem- structuring tool to help ask the right questions about mission, programs and interaction with the environment  When performed poorly, SWOT can be a superficial list generating exercise that produces 4 unconnected lists

Common Problems in SWOT Analysis (Kevin Kearns, 1992)  “Missing Link” problem – Neglect of inter- relationship between SW and OT  “Blue Sky” problem – Unrealistic view of Strengths & Opportunities  “Silver Lining” problem – Under estimation of external Threats  “All Things to All People” problem – Overcome Weaknesses at expense of core Strengths

“Putting the Cart Before the Horse” Problem  Decision makers develop strategies and action plans before they have sufficiently clarified the choices facing the agency  Source: Kearns (1992) “ From Comparative Advantage to Damage Control: Clarifying Strategic Issues Using SWOT Analysis” (see Website links)  Bryson – “An answer without an issue is not an answer.”

Classifying Strategic Issues Using SWOT Analysis: Mapping Interactions Interaction of Internal and External Factors External Factors Internal FactorsOpportunitiesThreats Strengths Weaknesses Adapted from: Bryson, 1988 and Kearns, 1992.

Classifying Strategic Issues Using SWOT Analysis: Issue Classification External Factors Internal FactorsOpportunitiesThreats StrengthsComparative AdvantageMobilization WeaknessesInvestment/DivestmentDamage Control Source: Kearns, 1992: 13.

Critical SWOT Questions  How can the organization leverage its strengths to achieve or enhance its comparative advantage, thereby capitalizing on a perceived opportunity?  How can the organization mobilize its strengths to avert a perceived threat or even transform that threat into an opportunity?

More Critical SWOT Questions  Should the organization invest scarce resources in weak programs to become more competitive vis-à-vis a perceived opportunity?  In light of its vulnerable position, how can the organization control or at least minimize the damage that may be inflicted by impending threats?

Classifying Strategic Issues Using SWOT Analysis: Issue Classification Example: Comparative Advantage Opportunities StrengthsMost Certain/PromisingLeast Certain/Promising Current Strengths (most certain) Highest Comparative Advantage More Analysis of Opportunity Required Potential Strengths (least certain) More Analysis of Investments Required Lowest Comparative Advantage Source: Kearns, 1992: 17.

Identifying Strategic or Priority Issues  Strategic issues have long term implications & consequences  Can be resolved in multiple and sometimes competing ways (i.e., no one answer)  Affect organizations in their entirety  Involve major financial risks and opportunities

Identifying Strategic or Priority Issues, 2  Involve some or all of the following: new revenues, new programs, new resources, new facilities  Are central to the organization’s mission  Are within the organization’s control and have consequences if not addressed  Strategic issues are often “dynamite”

Identifying Strategic or Priority Issues, 3  Strategic issues may require additional research in order to clarify the choices  There may be competing agencies addressing the same issue.  Strategic issues should be phrased as questions (to which there is more than one answer). If there is only one answer, it is a priority issue. (Worksheets 23, – see Website links)

Strategic Issue Examples  1. What can we do, through the re-development of the Board of Directors, to ensure that the agency establishes itself in the community with local and state leaders, and with current and potential funders as a “go to” organization?  2. What can we do to broaden the reach of the agency in order to improve referrals for services we are already contracted to provide?  3. What can we do to establish a competitive edge in a funding environment that has become saturated with other agencies providing similar services?  4. What can we do to more rapidly address our technology needs in the areas of telecommunications and data management?

Strategic Issue Examples, 2  1. How can we develop partnerships with the community, particularly the XXX community, to meet the adoptive needs of children and families?  2. How can we add new services and respond to the growth opportunities in current services that involve financial risk?  3. How can we attract talented, experienced staff, committed to our mission, who will increase our racial diversity to more closely match the composition of our service recipients?

Strategic Issue Examples, 3  1. What should be our service area? How will it impact our organization if we go statewide?  2. What is or should be the role of individual membership? Should membership be required in order to receive services or to participate in programs?  3. What groups of xxxx are we not serving? Are these groups being served by other organizations with similar mission, & programs?

Strategic Issue Examples, 4  4. How are we seen in the community? What should our brand image be?  5. How can we reduce turnover and promote longevity among staff?  6. How should we respond to the changing technological environment to ensure efficiency and effectiveness?

Strategic Issue Examples, 5  1. What design and structural improvements need to be made to our facility to best serve the needs of its mission?  2. How can our organization continue to deliver the highest quality and level of services?  3. In what way should the mission of our organization be broadened to serve other groups?

Strategic Issue Examples, 6  4. How can we expand our funding from current sources and diversify to new revenue sources?  5. In what ways can developments in technology help broaden and strengthen our services and mission?  6. How can we better define the respective roles of staff and board to enhance the effectiveness of the organization?

Selecting a Strategy (Worksheet 26, see Website links)  Is it realistic?  Is it clear?  Is it reasonable?  Is it consistent with mission and mandates?  Can we identify a path forward?  Are we ready to commit?

Making It Relevant  On-going means of accountability at board and staff level  Align staff roles with planning goals and objectives  Refer to regularly  Review formally on an annual basis

Moving to Action Planning  START  Staffing  Timetable  Authority and Accountability  Resources  Tracking