Strategic Planning for the Social Enterprise © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

What is Strategic Planning? A process through which an organization agrees on-and builds commitment among key stakeholders to- priorities which are essential to its mission and are responsive to the environment. © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Plan "If you don't know where you are going, it doesn't matter which way you go.” Cheshire Cat in Alice in Wonderland, Lewis Caroll Objectives Vision Strategic Goals Strategic Issues © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

What’s it for? Making BIG decisions Management tool Strategic guide © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Plan Views future as unpredictable Views planning as a continuous process Expects new trends, surprises and changes Considers a range of possible futures & emphasizes strategy development based on assessment of the organization's internal and external environment. No more than 5 years out Asks: "Based on our current understanding of environment, are we doing the right thing? How can we best use our resources to achieve or mission?" © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic vs. Operational Planning Strategic planning Strategic decisions are fundamental and directional, and over-arching. Long-term implications. Core strategies dictate how to employ the organization’s resources to best achieve its mission given a changing environment. Operational planning Operational decisions focus on the day-to-day implementation of strategic decisions. Immediate (one year or less) implications Details tactical plans to implement strategies and achieve goals and objectives © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Planning the Plan When do you do it? How long? Who should be involved? Beginning or end of major project / end of life cycle stage/ after evaluation / major change How often? No more than every 2 years / 3-5 better How long? 2-5 days Who should be involved? (Pre) Context/buy-in – all key stakeholders Vision value mission – management, staff, board SWOT – management, professional staff Strategic goals & strategies - management, professional staff Org structure – management w/ staff input Communicate complete strategic plan – to all stakeholders © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Success Factors Focus on the most important issues during your strategic planning process. Be willing to question the status quo. Produce a document. Make sure the strategic plan is translated into an annual operating plan for at least the first year. Include stakeholders In order to understand what is most important in the current and in the expected future, old assumptions about what is important must be challenged. It is possible to honor the past and still to make new decisions-don't allow new ideas to be characterized as inherent criticisms of the past. Whether an organization engages in an abbreviated process or an extensive strategic planning process, a planning document should be created. A useful strategic plan can be a few pages long. The document is a symbol of accomplishment, a guide for internal operations, and a marketing tool for current and future supporters. A critical test of a good strategic plan is that the operational implications are clear. Without a practical operating plan that articulates short-term priorities - and clearly identifies who is responsible for implementation, a strategic plan will rarely be implemented. Writing the first year's annual operating plan and supporting budget with the strategic plan in mind makes sure your strategic plan passes this test. © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Plan Framework Vision Values Mission SWOT Critical Issues Strategies Strategic Goals Strategies Objectives Tactics Action Plans © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Alignment © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Steps to Develop a Strategic Plan Clarify the problem – the social problem or market failure that your organization is trying to solve/overcome. Identify Stakeholders – internal and external stakeholders Assumptions – state the assumptions about external environment. Vision statement - what the organization would like to be in the long-term and how it would like to be perceived. © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Steps (cont. 2) Discuss Values and Mission - outlines the organization’s purpose and core values. Conduct a SWOT Analysis – review of internal factors (strengths & weaknesses) and external factors (opportunities & threats) Identify Critical Issues – with the greatest strategic significance to the organization. Set Strategic Goals - enduring statements of direction that amplify the mission statement and focus the organization’s efforts. © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Steps (cont. 3) Set Objectives – specific and quantifiable; performance is measured against them to ascertain progress. Develop Action Plans for each objective assigning responsibilities and resources to each objective, action plans provide an essential link between the strategic plan and the annual operating plan and budget. © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Contents of a Strategic Plan Purpose Vision Mission Core Values Situation Analysis SWOT Key Strategic Issues Strategic Goals/Priorities Objectives Action Plan © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Your Strategic Plan © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Key Assumptions Going In… © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Vision Statement © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Mission Statement © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Core Vales are the Pillar of Mission Core values © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Core Values Example Core Values Low Fares On-time Customer Service Fun The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit Characteristics: Shorts Cattle call No food Everyone does all jobs Curbside check in Employees make jokes One of the best companies to work for Can’t book through travel agent One class Core Values Low Fares On-time Customer Service Fun © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Core Values © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

SWOT © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Internal/Organizational SWOT Analysis Understanding the Business Environment To plan effectively, organizations need to fully understand the dynamics of their internal and external environment and respond accordingly: Internal/Organizational Strengths Weaknesses External/Market Opportunities Threats © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Sample SWOT Analysis the Industry the Organization Physical Assets Low Cost of Service Innovation People Storage Customer Relations Balance Sheet and Cash Flow Information Management Information Systems Depreciated Asset Base Expiring Contracts Customer Retention Customer Service Human Resource Management OPPORTUNITIES STRENGTHS Lack of Organizational Depth Employee Development Workflow Efficiency Unrealistic Goals Decision Making Process Communications Lack of a Shared Vision Information Systems Dependent Market Share Position New Market Expansion Acquisition Industry Growth People Development Customer Service Information Systems Communication Current Customer Relationships Storage WEAKNESSES THREATS © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

SWOT Analysis the Industry the Organization OPPORTUNITIES STRENGTHS WEAKNESSES THREATS © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

What’s Next? Leverages Strengths Manages Weaknesses Many organizations attempt to understanding the internal and external dynamics of their business environment, but fail to turn this information into into an actionable strategy. Therefore, the goal is to develop a plan that: Leverages Strengths Manages Weaknesses Takes advantage of market opportunities Is responsive to market threats © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Leveraging Internal Strengths What is currently being done or has been done? What still needs to be done? © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Managing Internal Weaknesses What is currently being done or has been done? What still needs to be done? © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Leveraging External Opportunities What is currently being done or has been done? What still needs to be done? © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Minimizing External Threats What is currently being done or has been done? What still needs to be done? © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Critical Strategic Issues Could be related to: Vision Mission Mandates Strengths, Weaknesses, Opportunities, Threats Assumptions © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Critical Strategic Issues © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Strategic Goals © 2007 Virtue Ventures.                                                                               © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)

Objectives (related to each goal) © 2007 Virtue Ventures. Licensed under the Creative Commons Attribution 3.0 License (http://creativecommons.org/licenses/by/3.0/)