Nonprofit Boards – Strategic Planning is a Challenge

At its best, strategic planning results in the solution to a significant mission centered problem.

Many nonprofits of all sizes struggle with strategic planning. Many individuals argue that strategic planning is a waste of effort. Technology changes often and rapidly. How can you develop a strategy in a rapidly changing environment?

A better question might be, “How can you prosper in a rapidly changing environment without a long-term vision and plan?” If everything is changing, it becomes important to know where you are going and what you want to accomplish along the way.

Most board members have limited experience with strategic planning. Most of those who do have experience were actually recruited because of some other skill. As a result, most boards place very little emphasis on strategic planning.

Most boards are focused on this year’s budget. There are two ways to address that problem. The first possible solution is to develop a process for increasing donations. Most boards are uncomfortable with this since it means doing something that makes them uncomfortable – soliciting donations. The second possible solution is to cut costs. The board is comfortable with that It has lots of experience cutting costs at home and work, it takes less time, and produces immediate results.

Cutting costs is good if one is finding efficiencies. However, most of the time cost cutting results in the reduction of services. While it protects the agency from failure, it also reduces the scale of the mission and impact on the community. As a result, the immediate need is met but future support is reduced. Who wants to give money to an agency that is intentionally doing less for the community when the need for services is growing?

The polar opposite is focusing on a significant mission centered problem. The first step is to identify the problem. The best way to discover the problem is to ask the community and the clients about unmet needs, under met needs, and emerging needs. Once you know the problem, it is easy to establish a date for having a solution. The follow-on step is to roll out the solution to the public. The final step is to achieve success in the form of eliminating the problem.

Think about polio. Someone had to develop a vaccine. Then it was necessary to test the vaccine. Then it was necessary to mass-produce and distribute the vaccine. Today, polio is found only in a limited geographic area in Africa.

The elimination of polio is now an achievable goal. It has taken about 50 years for the polio team to reach this point. How old is your nonprofit? How close are you to eliminating the need that defines your mission? How much closer will you be in 10 years? Do you see the value of a strategic plan?

It is usually hard for nonprofits to take this visionary approach. The lack of strategic planning experience on the board is one constraint. The urgent needs of money, the declining economy, and the competition for donors occupy a significant portion of the board’s time. The time required to talk with clients and the community is significant. It is difficult to envision the solution to the problem once it is identified. It can also be overwhelming to think about actually solving a significant problem. So why bother?

The benefits are significant. It is easier to raise money for a vision than the current budget. Everyone wants to be part of something significant. It is easier to find volunteers and community support because the community understands the benefits of your success. It is easier to sustain the effort because everyone wants you to succeed. It costs less than you think because people are willing to help. It increases the sense of purpose for the staff and board. It creates sustainability.

For me the pros out weigh the cons. How do you feel?

Mission Enablers