Model

Step 3: Development of a Strategic Vision Statement that Sets Future Direction for the Agency

Step 7: Preparation for Operational Planning Based on the Strategic Plan (Developing Annual Objectives)

The first step is gathering and analyzing information. This step consists of three components: an external assessment, a market or constituent assessment and an internal assessment.

Purpose of step: To identify and assess changes and trends in the world around the organization likely to have a significant impact on it over the next 5-10 years. We look at political, economic, technological, social, lifestyle, demographic, competitive, and philanthropic trends. We then determine which changes are opportunities for us (for example, opportunities to grow) and which could be threats to us in some way (trends that can keep us from being successful). Finally we identify implications for selected changes and trends -- ways the organization might respond to the opportunities and threats we identify. (Saying that something is an implication does not require the organization to adopt that course of action.)

Purpose of step: To identify and assess changes in the needs and perceptions of the organization's markets and constituencies. For most nonprofits, these include clients or consumers of services, funders, donors, volunteers, paid staff, board members, collaborators, and competitors.

Purpose of step: To assess internal structure, process and operations of the organization and based on this assessment, to pinpoint strengths and weaknesses. Areas examined include organizational personnel (paid and volunteer), fundraising, physical facilities, equipment, use of technology, location, financial condition, management, board governance, special programs/products and services, markets, market position, etc.

Purpose of step: To identify critical strategic issues facing the organization. Critical issues are fundamental policy or program concerns that define the most important situations and choices an organization faces now and in the future. Critical issues can reflect long-standing problems in the organization, the community served or recent events that are anticipated to have a significant impact on the organization and/or community served. Critical issues can also reflect major shifts in thinking that challenge "business as usual". The selection of issues is important because it determines range of decisions the organization's leaders will consider in the future.

In some instances, an organization is already aware of the critical issues that the strategic planning process must help it address. In most situations, the planning process participants discern critical strategic issues as they work on the external, market and internal assessments.

In developing the actual wording of the critical issue statements, it's helpful to reflect on the following:

The external changes and trends having the greatest positive and/or negative impact on the organization . . . Major changes and trends in the needs, perceptions and service expectations of our markets and constituencies . . . Internal strengths and weaknesses of the organization that will seem to have an impact on our future success . . .

Purpose of step: To develop a strategic vision statement. A vision is an image or description of the organization we aspire to become in the future. It answers the question “If we could create the organization of our dreams and have the impact we most desire, what would it look like in the Year 2015?” The vision focuses on what we intend to BE – our hoped for destination, not what we will be DOING in the Year 2015.

It should also indicate in what significant ways we will be different from what we are today. If the critical strategic issues represent our effort to express the big questions, choices and challenges facing the organization in the future, the vision is our attempt to communicate the big answers to these big questions. The strategic vision statement provides direction and inspiration for organizational goal setting.

PLEASE NOTE: Although the words "mission" and "vision" are used interchangeably, they are distinct in an important way: Mission describes "general purpose"; Vision describes "hoped for future destination".

Purpose of step: To develop an organizational mission statement. The mission statement is a broad description of what we do, with/for whom we do it, our distinctive competence, and WHY we do it (our ultimate end).

If a mission statement already exists, the focus of this step is on reviewing it in light of the emerging vision statement and if necessary revising the language. Here are some questions that can aid in the review of an already-existing mission statement:

Purpose of step: To develop strategic goal statements consistent with the vision statement. Strategic goals are broad statements of what the organization hopes to achieve in the next 3 years. Goals focus on outcomes or results and are qualitative in nature.

Purpose of step: To develop strategies for each goal. Strategies are statements of major approach or method for attaining goals and resolving specific issues. Ideas for strategy emerge from the earlier internal, external and market assessments, -- especially the strengths and weaknesses identified in the internal assessment as well as the implications statements developed as part of the market and external assessments. A strategy is judged potentially effective if it does one or more of the following:

Purpose of step: To develop annual objectives consistent with the goals and strategies of the strategic plan. Objectives are specific, concrete, measurable statements of what will be done to achieve a goal generally within a one-year time frame. Objectives include what will be accomplished, by when and by whom.

Planning Terminology

MISSION----------------------------------------------------------------------------->

MISSION	Broad description of what we do, with/for whom we do it, our distinctive competence, and WHY we do it.
*STRATEGIC VISION*	Describes what we want the organization to look like in ideal terms in the future - the results we will be achieving and characteristics the organization will need to possess in order to achieve those results. The strategic vision statement provides direction and inspiration for organizational goal setting.
GOALS	Broad statements of what the organization hopes to achieve in the next 3-5 years. Goals focus on outcomes or results and are qualitative in nature.
STRATEGIES	Statements of major approach or method (the means) for attaining broad goals and resolving specific issues.
OBJECTIVES	Specific, concrete, measurable statements of what will be done to achieve a goal generally within a one-year time frame.

This chart illustrates the flow from "Critical Issues" to "Goals" to "Strategies" as a logical progression of thought in the strategic planning process.

PLANNING LEVELS

EXAMPLES OF EACH LEVEL

CRITICAL ISSUE:

Fundamental policy or program concerns that define the most important situations and choices an organization faces now and in the future. Critical issues can reflect long-standing problems in the organization, the community served or recent events that are anticipated to have a significant impact on the organization and/or community served.

How do we expand our revenue base to keep up with present and future needs?

GOALS: 3-5 years out

Broad statements of what the organization hopes to achieve in the next 3 years. Goals focus on outcomes or results and are qualitative in nature.

Expand and diversify the revenue base to support anticipated growth in our programs and services.

STRATEGIES: 1-5 years out

Statements of major approach or method for attaining goals and resolving specific issues.

	Generate more revenue from programs.
	Expand individual annual campaign giving.
	Increase corporate giving

OBJECTIVES: 1 year out

Specific, concrete, measurable statements of what will be done to achieve a goal generally within a one year time-frame.

The Program Services Department will generate at least $285,000 in revenue from program service fees by December 31, 2012.

Planning To Plan

Here are some questions to pose in order to prepare your organization for strategic planning:

Strategic Planning Model

Planning Terminology

Planning To Plan