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Table of Contents
What is Strategic Planning ………………………………………........... 2
Benefits of Strategic Planning …………………………………………. 2
When Should Strategic Planning Be Done ……………………….......... 3
...
www.mapnp.org/library/plan
Simply put, strategic planning determines where an organization is going over the next year or more
and how it's going to get there. Typically, the process is organization-wide, or focused on a major
function such as a division, department or other major function.
There are a variety of perspectives, models and approaches used in strategic planning. The way that a
strategic plan is developed depends on the nature of the organization's leadership, culture of the
organization, complexity of the organization's environment, size of the organization, expertise of
planners, etc. For example, there are a variety of strategic planning models, including goals-based,
issues-based, organic, scenario (some would assert that scenario planning is more a technique than
model), etc. Goals-based planning is probably the most common and starts with focus on the
organization's mission (and vision and/or values), goals to work toward the mission, strategies to
achieve the goals, and action planning (who will do what and by when). Issues-based strategic
planning often starts by examining issues facing the organization, strategies to address those issues,
and action plans. Organic strategic planning might start by articulating the organization's vision and
values and then action plans to achieve the vision while adhering to those values. Some planners prefer
a particular approach to planning, e.g., appreciative inquiry. Some plans are scoped to one year, many
to three years, and some to five to ten years into the future. Some plans include only top-level
information and no action plans. Some plans are five to eight pages long, while others can be
considerably longer.
Quite often, an organization's strategic planners already know much of what will go into a strategic
plan (this is true for business planning, too). However, development of the strategic plan greatly helps
to clarify the organization's plans and ensure that key leaders are all "on the same script". Far more
important than the strategic plan document, is the strategic planning process itself.
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6. Bring together of everyone’s best and most reasoned efforts have important value in building a
consensus about where an organization is going.
The scheduling for the strategic planning process depends on the nature and needs of the organization
and the its immediate external environment. For example, planning should be carried out frequently in
an organization whose products and services are in an industry that is changing rapidly . In this
situation, planning might be carried out once or even twice a year and done in a very comprehensive
and detailed fashion (that is, with attention to mission, vision, values, environmental scan, issues,
goals, strategies, objectives, responsibilities, time lines, budgets, etc). On the other hand, if the
organization has been around for many years and is in a fairly stable marketplace, then planning might
be carried out once a year and only certain parts of the planning process, for example, action planning
(objectives, responsibilities, time lines, budgets, etc) are updated each year. Consider the following
guidelines:
1. Strategic planning should be done when an organization is just getting started. (The strategic plan is
usually part of an overall business plan, along with a marketing plan, financial plan and
operational/management plan.)
2. Strategic planning should also be done in preparation for a new major venture, for example,
developing a new department, division, major new product or line of products, etc.
3. Strategic planning should also be conducted at least once a year in order to be ready for the coming
fiscal year (the financial management of an organization is usually based on a year-to-year, or fiscal
year, basis). In this case, strategic planning should be conducted in time to identify the organizational
goals to be achieved at least over the coming fiscal year, resources needed to achieve those goals, and
funded needed to obtain the resources. These funds are included in budget planning for the coming
fiscal year. However, not all phases of strategic planning need be fully completed each year. The full
strategic planning process should be conducted at least once every three years. As noted above, these
activities should be conducted every year if the organization is experiencing tremendous change.
4. Each year, action plans should be updated.
5. Note that, during implementation of the plan, the progress of the implementation should be reviewed
at least on a quarterly basis by the board. Again, the frequency of review depends on the extent of the
rate of change in and around the organization.
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One Way to Look at Strategic Planning
One interpretation of the major activities in strategic planning activities is that it includes:
1. Strategic Analysis
This activity can include conducting some sort of scan, or review, of the organization's environment
(for example, of the political, social, economic and technical environment). Planners carefully consider
various driving forces in the environment, for example, increasing competition, changing
demographics, etc. Planners also look at the various strengths, weaknesses, opportunities and threats
(an acronym for this activity is SWOT) regarding the organization.
(Some people take this wide look around after they've identified or updated their mission statement,
vision statement, values statement, etc. Other people conduct the analysis before reviewing the
statements.)
(Note that in the past, organizations usually referred to the phrase "long-range planning". More
recently, planners use the phrase "strategic planning". This new phrase is meant to capture the strategic
(comprehensive, thoughtful, well-placed) nature of this type of planning.)
At some point in the strategic planning process (sometimes in the activity of setting the strategic
direction), planners usually identify or update what might be called the strategic "philosophy". This
includes identifying or updating the organization's mission, vision and/or values statements. Mission
statements are brief written descriptions of the purpose of the organization. Mission statements vary in
nature from very brief to quite comprehensive, and including having a specific purpose statement that
is part of the overall mission statement. Many people consider the values statement and vision
statement to be part of the mission statement. New businesses (for-profit or nonprofit) often work with
a state agency to formally register their new business, for example, as a corporation, association, etc.
This registration usually includes declaring a mission statement in their charter (or constitution, articles
of incorporation, etc.).
It seems that vision and values statements are increasingly used. Vision statements are usually a
compelling description of how the organization will or should operate at some point in the future and
of how customers or clients are benefiting from the organization's products and services. Values
statements list the overall priorities in how the organization will operate. Some people focus the values
statement on moral values. Moral values are values that suggest overall priorities in how people ought
to act in the world, for example, integrity, honesty, respect, etc. Other people include operational values
which suggest overall priorities for the organization, for example, to expand marketshare, increase
efficiency, etc. (Some people would claim that these operational values are really strategic goals. Don't
get hung up on wording for now.)
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3. Action Planning
Action planning is carefully laying out how the strategic goals will be accomplished. Action planning
often includes specifying objectives, or specific results, with each strategic goal. Therefore, reaching a
strategic goal typically involves accomplishing a set of objectives along the way -- in that sense, an
objective is still a goal, but on a smaller scale.
Often, each objective is associated with a tactic, which is one of the methods needed to reach an
objective. Therefore, implementing a strategy typically involves implementing a set of tactics along the
way -- in that sense, a tactic is still a strategy, but on a smaller scale.
Action planning also includes specifying responsibilities and timelines with each objective, or who
needs to do what and by when. It should also include methods to monitor and evaluate the plan, which
includes knowing how the organization will know who has done what and by when.
It's common to develop an annual plan (sometimes called the operational plan or management plan),
which includes the strategic goals, strategies, objectives, responsibilities and timelines that should be
done in the coming year. Often, organizations will develop plans for each major function, division
department, etc., and call these work plans.
Usually, budgets are included in the strategic and annual plan, and with work plans. Budgets specify
the money needed for the resources that are necessary to implement the annual plan. Budgets also
depict how the money will be spent, for example, for human resources, equipment, materials, etc.
(Note there are several different kinds of budgets. Operating budgets are usually budgets associated
with major activities over the coming year. Project budgets are associated with major projects, for
example, constructing a building, developing a new program or product line, etc. Cash budgets depict
where cash will be spent over some near term, for example, over the next three months (this is very
useful in order to know if you can afford bills that must be paid soon). Capital budgets are associated
with operating some major asset, for example, a building, automobiles, furniture, computers, etc.
Before we jump into the typical phases in the standard "generic" planning
process, let's stand back and minute and briefly look at the role of planning in its
overall context. This is more than an academic exercise -- understanding this
overall context for planning can greatly help the reader to design and carry out
the planning process in almost planning application.
One of the most common sets of activities in the management is planning. Very simply put, planning is
setting the direction for something -- some system -- and then working to ensure the system follows
that direction. Systems have inputs, processes, outputs and outcomes. To explain, inputs to the
system include resources such as raw materials, money, technologies and people.
These inputs go through a process where they're aligned, moved along and
carefully coordinated, ultimately to achieve the goals set for the system. Outputs
are tangible results produced by processes in the system, such as products or
services for consumers. Another kind of result is outcomes, or benefits for
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consumers, e.g., jobs for workers, enhanced quality of life for customers, etc.
Systems can be the entire organization, or its departments, groups, processes,
etc. Whether the system is an organization, department, business, project, etc., the process of
planning includes planners working backwards through the system. They start from the results
(outcomes and outputs) they prefer and work backwards through the system to identify the processes
needed to produce the results. Then they identify what inputs (or resources) are needed to carry out the
processes.
NOTE: It's not critical to grasp completely accurate definitions of each of the following terms. It's
more important for planners to have a basic sense for the difference between goals/objectives (results)
and strategies/tasks (methods to achieve the results).
Goals
Goals are specific accomplishments that must be accomplished in total, or in some combination, in
order to achieve some larger, overall result preferred from the system, for example, the mission of an
organization. (Going back to our reference to systems, goals are outputs from the system.)
Strategies or Activities
Strategies are the methods or processes required in total, or in some combination, to achieve the goals.
(Going back to our reference to systems, strategies are processes in the system.)
Objectives
Objectives are specific accomplishments that must be accomplished in total, or in some combination,
to achieve the goals in the plan. Objectives are usually "milestones" along the way when implementing
the strategies.
Tasks
Particularly in small organizations, people are assigned various tasks required to implement the plan. If
the scope of the plan is very small, tasks and activities are often essentially the same.
Whether the system is an organization, department, business, project, etc., the basic planning process
typically includes similar nature of activities carried out in similar sequence. The phases are carried out
carefully or -- in some cases -- intuitively, for example, when planning a very small, straightforward
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effort. The complexities of the various phases (and their duplication throughout the system) depend on
the scope of the system. For example, in a large corporation, the following phases would be carried out
in the corporate offices, in each division, in each department, in each group, etc.
NOTE: Different groups of planners might have different names for the following activities and groups
them differently. However, the nature of the activities and their general sequence remains the same.
NOTE: The following are typical phases in planning. They do not comprise the complete, ideal
planning process.
4. Establish Goals
Based on the analysis and alignment to the overall mission of the system, planners establish a set of
goals that build on strengths to take advantage of opportunities, while building up weaknesses and
warding off threats.
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goal. It seems simplistic to assert that you should acknowledge if the problem was solved or the goal
met. However, this step in the planning process is often ignored in lieu of moving on the next problem
to solve or goal to pursue. Skipping this step can cultivate apathy and skepticism -- even cynicism -- in
your organization. Don't skip this step.
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1. The chief executive and board chair should be included in the planning group, and should drive
development and implementation of the plan.
2. Establish clear guidelines for membership, for example, those directly involved in planning,
those who will provide key information to the process, those who will review the plan document, those
who will authorize the document, etc.
3. A primary responsibility of a board of directors is strategic planning to effectively lead the
organization. Therefore, insist that the board be strongly involved in planning, often including
assigning a planning committee (often, the same as the executive committee).
4. Ask if the board membership is representative of the organization’s clientele and community,
and if they are not, the organization may want to involve more representation in planning. If the board
chair or chief executive balks at including more of the board members in planning, then the chief
executive and/or board chair needs to seriously consider how serious the organization is about strategic
planning!
5. Always include in the group, at least one person who ultimately has authority to make strategic
decisions, for example, to select which goals will be achieved and how.
6. Ensure that as many stakeholders as possible are involved in the planning process.
7. Involve at least those who are responsible for composing and implementing the plan.
8. Involve someone to administrate the process, including arranging meetings, helping to record
key information, helping with flipcharts, monitoring status of prework, etc.
9. Consider having the above administrator record the major steps in the planning process to help
the organization conduct its own planning when the plan is next updated.
Scheduling of Meetings:
1. Have each meeting at most two to three weeks apart when planning. It's too easy to lose momentum
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otherwise.
2. The most important factor in accomplishing complete attendance to planning meetings is evidence
of strong support from executives. Therefore, ensure that executives a) issue clear direction that they
strongly support and value the strategic planning process, and b) are visibly involved in the planning
process.
Planning typically includes several major activities or steps in the process. Different people often have
different names for these major activities. They might even conduct them in a different order. Strategic
planning often includes use of several key terms. Different people might use apply different definitions
for these terms, as well.
Don't be concerned about finding the "perfect way" to conduct strategic planning. You'll soon notice
that each writer seems to have their own particularly interpretation of the activities in strategic
planning. Once you start strategic planning, you'll soon find your own particular approach to carrying
out the process.
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Conducting Strategic Analysis (Environmental Scan and
SWOT)
A frequent complaint about strategic plans is that they are merely "to-do" lists of what to accomplish
over the next few years. Or, others complain that strategic planning never seems to come in handy
when the organization is faced with having to make a difficult, major decision. Or, others complain that
strategic planning really doesn't help the organization face the future. These complaints arise because
organizations fail to conduct a thorough strategic analysis as part of their strategic planning process.
Instead, planners decide to plan only from what they know now. This makes the planning process
much less strategic and a lot more guesswork. Strategic analysis is the heart of the strategic planning
process and should not be ignored.
(Note that some planners prefer to identify/update the mission, vision and values statements before
conducting the strategic analysis. Others prefer to identify/update these items after the strategic
analysis. In this library, these items are addressed as part of the next major section "Setting Strategic
Direction".)
An environmental scan is conducted to collect data to answer questions about the present and future of
the school district.
Surveys
Questionnaires
Focus Groups
Open Forums
SWOT
3. Opportunities - Factors outside the association that allow it to take action to.
4. Threats - Factors outside the association that stand in the way of its efforts.
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Basics of Writing a Strategic Plan
This activity is usually conducted near the overall process of strategic planning.
2. Don’t worry about having every last detail in the first draft.
3. The draft should be presented to the board of directors (if applicable) and upper management for
review and approval. It's not unusual for the board and/or top management of large organizations to
provide major input primarily to the contents in the body of the document, that is, the mission and
vision and values statements, and the goals and strategies. Employees and other staff often provide the
major input to the action planning portion, including the objectives, responsibilities and timelines for
completion of objectives.
Appendices
(The appendices often include information that is somewhat confidential, detail-oriented and/or tends
to change a lot.)
A) Action Planning -- Specifies objectives, responsibilities and timelines for completion of objectives.
B) Description of Strategic Planning Process Used -- Describes the process used to develop the plan,
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who was involved, the number of meetings, any major lessons learned to improve planning the next
time around, etc.
C) Strategic Analysis Data -- Includes information generated during the external analysis (for example,
environmental scan) and internal analysis (for example, SWOT analysis), and includes listing of
strategic issues identified during the these analyses.
D) Goals for Board and Chief Executive Officer -- Goals of the board and CEO should be directly
aligned with goals identified during strategic planning. This appendix will list goals for the board and
can include recommendations for redesigning board committees to be associated with strategic goals.
The appendix also lists goals for the CEO -- these can be used (along with the CEO job description) to
form the basis for performance evaluations of the CEO.
E) Budget Planning -- Depicts the resources and funding needed to obtain and use the resources needed
to achieve the strategic goals. Budgets are often depicted for each year of the term of the strategic plan.
F) Operating Plan -- Describes the major goals and activities to be accomplished over the coming fiscal
year.
G) Financial Reports -- Includes last year's budget (with estimated expenses and the actual amounts
spent), this year's current budget (again with estimated amounts and actual amounts spent), a balance
sheet (or in the case of nonprofits, a statement of financial position), income statement (or in the case
of nonprofit, a statement of financial activities), etc.
H) Monitoring and Evaluation of Plan -- Include criteria for monitoring and evaluation, and the
responsibilities and frequencies of monitoring the implementation of the plan.
I) Communication of Plan -- Describe the actions that will be taken to communicate the plan and/or
portions of it, and to whom.
Note that certain groups of stakeholders might get complete copies of the plan, including appendices,
while other groups (usually outside of the organization) might receive only the body of the plan
without its appendices.
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It's amazing
how even the newest staff member gains quick context, appreciation, and meaning from review of the
strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider
giving each employee a card with the statements (or highlights from them) on the card.
4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials
(brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
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7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade
associations, potential collaborators, vendors/suppliers, etc.
A common failure in many kinds of planning is that the plan is never really implemented. Instead, all
focus is on writing a plan document. Too often, the plan sits collecting dust on a shelf. Therefore, most
of the following guidelines help to ensure that the planning process is carried out completely and is
implemented completely -- or, deviations from the intended plan are recognized and managed
accordingly.
Specific:
For example, it's difficult to know what someone should be doing if
they are to pursue the goal to "work harder". It's easier to recognize
"Write a paper".
Measurable:
It's difficult to know what the scope of "Writing a paper" really is. It's
easier to appreciate that effort if the goal is "Write a 30-page
paper".
Acceptable:
If I'm to take responsibility for pursuit of a goal, the goal should be
acceptable to me. For example, I'm not likely to follow the
directions of someone telling me to write a 30-page paper when
I also have to five other papers to write. However, if you involve me
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in setting the goal so I can change my other commitments or
modify the goal, I'm much more likely to accept pursuit of the goal as well.
Realistic:
Even if I do accept responsibility to pursue a goal that is specific and
measurable, the goal won't be useful to me or others if, for
example, the goal is to "Write a 30- page paper in the next 10
seconds".
Time frame:
It may mean more to others if I commit to a realistic goal to "Write a
30-page paper in one week". However, it'll mean more to others
(particularly if they are planning to help me or guide me to reach the
goal) if I specify that I will write one page a day for 30 days, rather
than including the possibility that I will write all 30 pages in last
day of the 30-day period.
Extending:
The goal should stretch the performer's capabilities. For example, I
might be more interested in writing a 30-page paper if the topic of the
paper or the way that I write it will extend my capabilities.
Rewarding:
I'm more inclined to write the paper if the paper will contribute to an
effort in such a way that I might be rewarded for my effort.
During regular reviews of implementation of the plan, assess if goals are being achieved or not. If not,
were goals realistic? Do responsible parties have the resources necessary to achieve the goals and
objectives? Should goals be changed? Should more priority be placed on achieving the goals? What
needs to be done?
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Finally, take 10 minutes to write down how the planning process could have been done better. File it
away and read it the next time you conduct the planning process.
Implementation Guidelines
(Note that reference to boards of directors is in regard to organizations that are corporations.
1. When conducting the planning process, involve the people who will be responsible for
implementing the plan. Use a cross-functional team (representatives from each of the major
organization’s products or service) to ensure the plan is realistic and collaborative.
2. Ensure the plan is realistic. Continue asking planning participants “Is this realistic? Can you really
do this?”
3. Organize the overall strategic plan into smaller action plans, often including an action plan (or work
plan) for each committee on the board.
4. In the overall planning document, specify who is doing what and by when (action plans are often
referenced in the implementation section of the overall strategic plan). Some organizations may elect to
include the action plans in a separate document from the strategic plan, which would include only the
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mission, vision, values, key issues and goals, and strategies. This approach carries some risk that the
board will lose focus on the action plans.
5. In an implementation section in the plan, specify and clarify the plan’s implementation roles and
responsibilities. Be sure to detail particularly the first 90 days of the implementation of the plan. Build
in regular reviews of status of the implementation of the plan.
6. Translate the strategic plan’s actions into job descriptions and personnel performance reviews.
7. Communicate the role of follow-ups to the plan. If people know the action plans will be regularly
reviewed, implementers tend to do their jobs before they’re checked on.
8. Be sure to document and distribute the plan, including inviting review input from all.
9. Be sure that one internal person has ultimate responsibility that the plan is enacted in a timely
fashion.
10. The chief executive’s support of the plan is a major driver to the plan’s implementation. Integrate
the plan’s goals and objectives into the chief executive’s performance reviews.
11. Place huge emphasis on feedback to the board’s executive committee from the planning
participants.
13. Have pairs of people be responsible for tasks. Have each partner commit to helping the other to
finish the other’s tasks on time.
The above advantage is obvious. Adults tend to learn best when they're actually doing something with
new information and materials and then they're continuing to reflect on their experiences. You can
learn a great deal about your organization and how to manage it by continuing to monitor the
implementation of strategic plans.
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Note that plans are guidelines. They aren't rules. It's OK to deviate from a plan. But planners should
understand the reason for the deviations and update the plan to reflect the new direction.
The document should also specify who is responsible to monitor the implementation of the plan and
made decisions based on the results. For example, the board might expect the chief executive to
regularly report to the full board about the status of implementation, including progress toward each of
the overall strategic goals. In turn, the chief executive might expect regular status reports from middle
managers regarding the status toward their achieving the goals and objectives assigned to them.
Key Questions While Monitoring and Evaluating Status of Implementation of the Plan
1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and
communicate the progress. If not, then consider the following questions.
2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?
3. Should the deadlines for completion be changed (be careful about making these changes --
know why efforts are behind schedule before times are changed)?
4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve
the goals?
7. Should the goals be changed (be careful about making these changes -- know why efforts are
not achieving the goals before changing the goals)?
8. What can be learned from our monitoring and evaluation in order to improve future planning
activities and also to improve future monitoring and evaluation efforts?
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Trends regarding the progress (or lack thereof) toward goals, including which goals and
objectives
Usually the organization ends up changing its direction somewhat as it proceeds through the coming
years. Changes in the plan usually result from changes in the organization’s external environment
and/or client needs result in different organizational goals, changes in the availability of resources to
carry out the original plan, etc.
The most important aspect of deviating from the plan is knowing why you’re deviating from the plan,
i.e., having a solid understanding of what’s going on and why.
Manage the various versions of the plan (including by putting a new date on each new version of the
plan).
Always discuss and write down what can be learned from recent planning activity to make the next
strategic planning activity more efficient.
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Sample: Strategic Plan for AnyBiz, Inc
This document sets out a strategic plan for AnyBiz Inc. It reviews strengths, weaknesses, threats and
opportunities; presents a series of statements relating to AnyBiz Inc.'s vision, mission, values and
objectives; and sets out its proposed strategies and goals.
This strategic plan addresses the following key strengths, weaknesses, threats and opportunities for
AnyBiz Inc:
Strengths: Weaknesses:
R and D almost complete Over dependent on borrowings -
Basis for strong management team Insufficient cash resources
Key first major customer acquired Board of Directors is too narrow
Initial product can evolve into range of Lack of awareness amongst
offerings prospective customers
Located near a major centre of Need to relocate to larger premises
excellence Absence of strong sales/marketing
Very focused management/staff expertise
Overdependence on few key staff
Well-rounded and managed business
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Emerging new technologies may move
market in new directions
Threats: Opportunities:
← Major player may enter targeted
market segment
← Market segment is poised for rapid
← New technology may make products
growth
obsolescent
← Export markets offer great potential
← Economic slowdown could reduce
← Distribution channels seeking new
demand
products
← Euro/Yen may move against $
← Market may become price sensitive
← Scope to diversify into related market
segments
← Market segment's growth could attract
major competition
Vision
AnyBiz will be operating from a xxx sq. ft. unit near xxx Town. It will have annualized sales of
$xxx and be profitable. It will employ xxx people mainly engaged in R and D, marketing,
support and admin. AnyBiz will offer xxx core products and provide added-value services to a
large customer base throughout the xxx market segments and in xxx countries overseas.
AnyBiz's offerings will be technically advanced and offer many clear-cut advantages and
improvements over competitors' possible offerings. AnyBiz will continue to expand through
organic growth and acquisitions in related technology/market segments. It will have recently
received mezzanine finance prior to a public offering.
Mission Statement
AnyBiz designs, develops and markets advanced systems for specialist data capture and transaction
processing management. These web-based systems work with specialist hardware supplied by major
integrators. They are sold to small, medium and large-sized companies within the xxx industries for a
range of specialist applications. AnyBiz's systems are distinguished from competition by their
sophisticated interfaces, scalability and ease of modification and are extensively patented. Sales are
made directly and through major distributors/OEMs in the home market and overseas. AnyBiz operates
in accordance with the highest standards in all relationships with customers, suppliers, environment and
the community.
Corporate Values
The corporate values governing AnyBiz Inc.'s development will include the following:
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AnyBiz operates in accordance with the highest standards in all relationships with customers, suppliers,
environment and the community.
AnyBiz fosters a climate which encourages innovation and diligence amongst staff and rewards
accordingly.
Business Objectives
Key Strategies
Major Goals
The following key targets will be achieved by AnyBiz Inc over the next 3-4 years:
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Have sales offices or agents in xx key markets before 200X
Framework for a
Basic Nonprofit Strategic Plan Document
Directions
The following framework will guide you through completion of your basic strategic plan document.
Each section includes directions. Many sections include examples, as well. Readers are encouraged to
work with a planning team in their organization to fill in this framework. After completing this
framework, readers can move information from the framework to a more suitable document to be the
final version of the strategic plan document, if desired.
TABLE OF CONTENTS
Executive Summary
Organizational Description
Appendices
A - Action Planning (objectives, responsibilities and time lines)
B - Description of Strategic Planning Process Used
C - Strategic Analysis Data (External Analysis, Internal Analysis & List of Issues)
D - Goals for Board Committees and Chief Executive Officer
E - Staffing Plans
F - Operating Budgets
G- Financial Reports (Budgets, Statements, etc.)
H - Monitoring and Evaluation of Plan (Criteria, Responsibilities and Findings)
I - Communicating the Plan
Executive Summary
(Complete this section after you have finished the other sections of the plan document. The Executive
Summary describes plan highlights to funders, board members, employees and other skakeholders.
The Executive Summary should be one to two pages in length at most. It should include very concise
descriptions of the most important information from the strategic planning process and its results. For
example, include very brief descriptions of what's in this document and how to use the document,
strategic issues and goals, when the plan will be implemented, how the implementation will be
monitored and by whom, and any specific actions required by upper management.)
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Name of Board Member: ______________________________ Date Signed: _________
Organizational Description
This section should include information that will be informative, particularly to readers from outside
of the organization.
Brief overview of history of organization
Description of major programs and services
Overview of major accomplishments and other highlights during history of organization
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Mission Statement
The mission statement is a concise description of the purpose of the organization. It answers the
question: Why does our organization exist? When answering this question, include the nature of your
services, groups of clients that you serve and how you serve them. The mission statement should
provide continued direction and focus to your plans, programs and services from your organization.
Post your mission statement throughout your nonprofit, on all stationery, in your plan documents, etc.
Example: "To support individual and community development in Minneapolis by ensuring all adults
between the ages of 18 and 65 achieve gainful employment in the community."
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Vision Statement
The vision statement is an inspirational, compelling answer to the question: What do you hope for
your clients? Ideally, it should be written in a compelling, inspirational fashion. Post your vision
statement throughout your nonprofit.
Example: "Every adult in Minneapolis is fulfilled from employment that contributes to their individual
and community development."
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Values Statement
The values statement depicts the priorities in how the organization carries out activities with
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stakeholders. The board and chief executive should regularly reference the values statement to provide
guidance to the nature of how the nonprofit and its programs should operate. Example: "We believe
that:
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Next, Associate Strategies with Each Goal
Next , under each goal, write down the major approaches (or strategies) that must be used to achieve
each goal. Consider strategies over the term of the strategic plan, but especially over the next year.
Now Consider: Are the Goals and Strategies Closely Aligned with Nonprofit's Mission, Vision and
Values?
Does each goal and its associated strategies really contribute toward the mission and vision of the
organization. Will the goals be reached by using strategies that are closely aligned with the values of
the organization? If not, then very closely reconsider whether you want to pursue those goals and
associated strategies.
Example Program Strategy 1.3 -- Provide subsidized child care to enrollees in the
program
Strategy # __.__
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Example Strategy #1.1 (for Goal #1): Conduct high-school equivalency training
programs to drop-outs from Minneapolis high schools in the calendar year 2000
Date of
Objectives for Strategy 1.1 Responsibility Status and Date
Completion
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1.1.1. Complete program plan 2/1/99 Program Director
1.1.7 - Test to ensure at least 600 qualify for 12/31/00 Program Director
high school diplomas
Example Program Strategy 1.3 -- Provide subsidized child care to enrollees in the
program
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Strategy # __ . __
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trends, rate of access to trained labor, and competition. In your external analysis, don't forget to look
at stakeholders’ impressions of the organization, including funders’, clients’, community leaders’,
volunteers’, etc.
From out external analysis, we identified the following trends and how they might effect our nonprofit:
Political trends:
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Economic trends:
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Societal trends:
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Technological trends:
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Appendix C - Strategic Analysis Data -- Internal Analysis
Write down the major strengths and weaknesses of your organization. Write down the major threats
and opportunities regarding your organization. Consider trends effecting the organization, e.g., true
need for programs as evidenced by client participation and feedback, reputation of the organization,
expertise of staff, facilities, strength of finances, solid administrative offices and operations, etc.
From out internal analysis (our SWOT analysis), we identified the following factors:
Strengths Opportunities
Positive
To identify the key issues identified from your strategic analyses, consider the following guidelines:
a) From considering the effects of weaknesses and threats that you identified, what are the major
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issues that you see? List as many as you can. Consider issues over the term of your strategic plan, but
look very closely at the next year especially. Many organizations have stumbled badly because they
ended up "falling over their feet" while being focused much too far down the road.
b) Consider each of issues. Ask whether it’s “important” or “urgent.” Often, issues seem very
important when they're only urgent, for example, changing a flat tire is an urgent issue -- but you'd
never put "changing a tire" in your strategic plan. Attend only to the important issues and not the
urgent issues.
c) Deal with issues that you can do something about. Issues that are too narrow do not warrant
planning and issues that are too broad will bog you down.
d) Issues should be clearly articulated so that someone from outside of the organization can read the
description and understand the nature of the issue.
Key issues that our organization must address through use of this strategic plan include:
1.
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2.
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Example Program Goal #1: Support at least 600 drop-outs from Minneapolis high
schools to obtain diplomas or equivalent levels of certification in the calendar
year 2000
Example Strategy #1.1 (for Goal #1): Conduct high-school equivalency training
programs to drop-outs from Minneapolis high schools in the calendar year 2000
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Action for Goal #1, Date of
Status and Date
Strategy #1.1 Completion
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Date of
Action Status and Date
Completion
The chief executive should be attending to responsibilities and goals that are directly aligned with the
strategic goals of the organization (as should the responsibilities and goals of everyone else in the
organization). Therefore, after strategic goals have been identified, it's timely for the board to update
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the performance goals of the chief executive (who, in turn, updates the performance goals of everyone
else in the management and staff of the nonprofit organization
Goals may need to be reworded to be more specific to the authority and resources of the chief
executive role.
Goals should be designed and worded to be "SMARTER", that is, specific, measurable, acceptable to
the chief executive, realistic, timely, extending the capabilities of the chief executive and rewarding for
him or her to accomplish.
1.
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Appendix E - Staffing Plans
Reference each of the strategies to reach the goals and consider what kind of capabilities is needed to
implement the strategies. This might seem like a lot of guesswork, particularly if you don't have
experience in supervision. However, don't worry so much about being exactly correct -- you will likely
refine your staffing plan later on as you design and plan your programs in the nonprofit development
process. If you are developing a new nonprofit, you might think about including the following typical
roles in your initial staffing plan (but again, consider these roles in terms of implementing the
strategies in your plan): chief executive, administrative assistant and program directors for each of
your major service goals. However, it's common that the chief executive is also a program director for
the first year or so. You may end up refining the staffing plan as you complete action planning, along
with identifying who will accomplish each of your objectives
Note that in the following table, staffing is specified in terms of full-time equivalents (FTEs). One FTE
is equal to one full-time staff position throughout the year. If staff will start half-way through a year,
than include .5FTE, etc.
Staff for Program [insert name]: (have a section for each program)
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the goals in the strategic plan and the costs to get and use the resources -- especially over the next
year. You don't have to be exactly accurate -- besides, you may end up changing your budget as you
give more attention to program design and planning. You should do a budget for each of the years
included in the span of time covered by your strategic plan -- but give particular attention to the first
year of the time span.
Look at each of your service, or program, goals. Think about how much revenue the program might
make from fees, grants, donation, etc. Next, think about the expenses to run the program, such as
human resources, facilities, equipment, special materials for programs, marketing and promotions, etc.
Note that this budget information usually can be used later on with program budgets and grant
proposals. In an upcoming module about program planning, we'll likely modify your operating budget
to include updates from program planning, including developing program budgets.
Now think about what resources will be needed for central administration. Will you need a chief
executive officer, assistants, program directors, etc?
Note that the following budget includes 40% "fringe" -- this is the extra amount budgeted to cover
benefits, for example, medical insurance, social security taxes, retirement contributions, etc. You
should find estimates of the current fringe rate for salaries -- or, you can budget specific amounts for
each of the specific benefits.
Also note that the following is a rather simple budget format and should be modified to suit the needs
and nature of your organization.
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Chief executive officer (include yearly salary + 40% for benefits,
etc.)
Administrative assistant (include yearly salary + 40% for
benefits, etc.)
Travel
Staff development
Total Central Administration -- Personnel Costs:
Central Administration -- Facilities:
Rental of office space (central offices and 4 classrooms)
Office furniture
Utilities (electricity, water, heat)
Telephone (local & long-distance)
Maintenance and janitorial
Total Central Administration Facilities Costs:
Central Administration -- Equipment:
Copier leasing
Computer, printers, networking
Training equipment, projectors, etc.
Vans (4 for student transportation)
Total Central Administration Equipment Costs:
Central Administration -- Marketing and Promotions:
Media plan (brochures, newspaper ads, etc.)
Yearly meeting
Annual report
Build and maintain mailing list
Web page development and maintenance
Total Central Admin. Marketing & Promotions Costs:
Other Expenses:
General office supplies
Liability insurance
Subscriptions, books, etc.
Total Central Admin. Other Expenses/Costs:
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Program administrator (include yearly salary + 40% for benefits,
etc.)
Consultant: curriculum design (3 months full-time; 9 months 2
hours per day)
Consultants: teachers (4 full time and 4 half time)
Consultants: psychologist/counselor (1 full time)
Van drivers (4 hours per day)
Total Training Program Personnel Costs:
Training Program -- Materials:
GED testing packets (600)
Grading services from Dept of Human Services (600 students)
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TOTAL REVENUE:
EXPENSES
Central Administration -- Personnel:
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Central Administration -- Facilities:
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Total Central Administration Facilities Costs:
Central Administration -- Equipment:
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Total Central Administration Equipment Costs:
Central Administration -- Marketing and Promotions:
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Total Central Admin. Marketing & Promotions Costs:
Other Expenses:
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Total Central Admin. Other Expenses/Costs:
Program -- Personnel:
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TOTAL EXPENSES
last fiscal year's budget (planned amounts and actual amounts spent)
current budget report
current Statement of Financial Position
current Statement of Financial Activities
etc.
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Appendix H - Monitoring and Evaluation of Plan
Responsibilities and Frequencies for Monitoring and Evaluation
Completion Written description
Plan section, goals, etc. Responsibility
date of results to:
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1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and
communicate the progress. If not, then consider the following questions.
2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?
3. Should the deadlines for completion be changed (be careful about making these changes -- know
why efforts are behind schedule before times are changed)?
4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the
goals?
7. Should the goals be changed (be careful about making these changes -- know why efforts are not
achieving the goals before changing the goals)?
8. What can be learned from our monitoring and evaluation in order to improve future planning
activities and also to improve future monitoring and evaluation efforts?
Additional questions:
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2. Trends regarding the progress (or lack thereof) toward goals, including which goals and objectives
2. Why the changes should be made (the "why" is often different than "what is causing" the changes).
3. What specific changes should be made, including to goals, objectives, responsibilities and timelines?
Reminders:
Manage the various versions of the plan (including by putting a new date on each new version of the
plan).
Consider:
1. Every board member and member of management should get a copy of the plan.
2. Consider distributing all (or highlights from) the plan to everyone in the organization. It’s amazing
how even the newest staff member gains quick context, appreciation, and meaning from review of the
strategic plan.
3. Post your mission and vision and values statements on the walls of your main offices. Consider
giving each employee a card with the statements (or highlights from them) on the card.
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4. Publish portions of your plan in your regular newsletter, and advertising and marketing materials
(brochures, ads, etc.).
5. Train board members and employees on portions of the plan during orientations.
6. Include portions of the plan in policies and procedures, including the employee manual.
7. Consider copies of the plan for major stakeholders, for example, funders/investors, trade
associations, potential collaborators, vendors/suppliers, etc.
This plan will be widely communicated including through use of the following approaches:
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