1. Presenting: Strategic Planning Choosing the Right Method for Your Nonprofit Organization Section 3(a) Contextual Approach

2. What Is the Contextual Approach? Clarifies mission and vision Provides insight on impact programs and services have in community Clarifies perceptions held by field or sector Unifies approach to accomplishing goals Creates a plan for implementation of strategies

3. Contextual Approach Eight-Step Process 1.Establish parameters for planning 2.Assess external environment 3.Identify internal strengths and weaknesses 4.Clarify vision and mission

4. Contextual Approach Eight-Step Process (cont.) 5.Identify critical issues 6.Analyze strengths, weaknesses, opportunities, and threats (SWOT) 7.Formulate strategies to address issues 8.Create operational plan

5. Contextual Approach Step 1: Establish Parameters for Planning Agree on preferred steps, form, and timing of all reports Establish roles of participants Commit necessary resources

6. Contextual Approach Step 2: Assess External Environment Conduct in-depth study Determine opportunities and threats or obstacles ▪ examine trends and forces ▪ research needs of clients/beneficiaries ▪ analyze impact of collaborators and competitors

7. Contextual Approach Step 3: Identify Internal Strengths and Weaknesses Inventory strengths and weaknesses Evaluate effectiveness of resources Assess present strategies Survey human and physical resources Determine satisfaction of members and other stakeholders Research needs and expectations of clients

8. Contextual Approach Step 4: Clarify Vision and Mission Vision Embodies values and beliefs, motivations and inspiration Mission What needs to be accomplished: where, why, for whom, and how

9. Contextual Approach Step 4: Clarify Vision and Mission (cont.) Vision Defines success Determines shared beliefs, values, and philosophy Communicates dreams and images of future achievements Inspires, challenges, and stretches the imagination Captures dreams of capabilities and possibilities

10. Contextual Approach Step 4: Clarify Vision and Mission (cont.) Mission Expresses distinctive identity, essence, and purpose of organization Usually brief, easily recognized, repeated, and remembered

11. Contextual Approach Step 4: Clarify Vision and Mission (cont.) Mission Statement Identity of organization Basic social needs it exists to fill Geography served Population served Programs and services

12. Contextual Approach Step 4: Clarify Vision and Mission (cont.) Mission Statement Ensures consensus on purpose Provides reference for decision making Communicates identity and purpose to the public Guides evaluation of programs and priorities

13. Contextual Approach Step 4: Clarify Vision and Mission (cont.) Mission Statement (example): The mission of the XYZ Quartet is to enrich the human spirit through the art of classical music. Through live concerts, recordings, and music education programs, we aim to reach a broad range of audiences in ABC City, the nation, and abroad.

14. Contextual Approach Step 5: Identify Critical Issues Critical Issues Can be realistically addressed Serious consequences if not addressed Emerge from internal and external factors Involve survival, prosperity, and effectiveness of organization

15. Contextual Approach Step 5: Identify Critical Issues (cont.) Long-term implications and major impact on organization Result in significant changes Often sensitive

16. Contextual Approach Step 5: Identify Critical Issues (cont.) Events beyond organization’s control Organizational changes make achieving objectives difficult Changes in internal or external events, mission, or mandates

17. Contextual Approach Step 6: Analyze SWOT Study how opportunities and threats relate to strengths and weaknesses SWOT reveals areas of strategic investment, elimination, or collaboration

18. Contextual Approach Step 6: Analyze SWOT (cont.) OpportunitiesThreats Strengths Where Opportunities and Strengths are aligned, we need to Invest Where Threats and Strengths are aligned, we need to Defend or mobilize resources or enter into strategic alliances Weaknesses Where Opportunities and Weaknesses are aligned, we need to Invest, divest, or collaborate Where Threats and Weaknesses are aligned, we need to Divest or damage control

19. Contextual Approach Step 7: Formulate Strategies To Address Issues Determine strategies needed to address critical issues

20. Contextual Approach Step 8: Develop and Operational Plan Determine goals, objectives, time frame, accountability, responsibility, and evaluation processes Strategies should reference ▪ goals and actions ▪ responsibility ▪ time frame ▪ evaluation ▪ resources

21. Contextual Approach Step 8: Develop an Operational Plan (cont.) Action Steps Board approves plan Committee oversees plan’s status, provides feedback to board

22. Contextual Approach Sample Operational Plan GoalsObjectivesTime Frame ResponsibilityEvaluationResources Strategy A Obtain $1 million from federal agency for program 1. Contact funder June – Sept. Melanie (staff)Have application/ deadline 40 hrs x $60/hr 2. Develop product Oct. – Dec. John (staff) Robert (board) Product developed $30,000 3. Write grant Jan. – March Melanie (staff)Grant submitted 120 hrs x $60/hr Strategy B Strategy C

23. Contextual Approach Following Through Keeping a cyclical process Instituting changes Obtaining continuous feedback and evaluation Fine-tuning plan

24. Contextual Approach Next Steps Create a detailed action plan for the organization based on the eight-step process just reviewed. Be sure to pay attention to Slide 23 to ensure full implementation. If the organization could benefit from further change, consider viewing Section 3(b) for a more revolutionary approach. Consider how to incorporate strategic thinking into the ongoing planning process (Section 4).