case study: strategy / strategic plan for charity / non-profit

1Jay Martin Q-Strategic Plan for Charity.ppt

High profile southwestern U.S. non-profit organization.

Strategic Plan Non-Profit Organization / Charity


A regional non-profit was interested in creating a strategic plan given a host of external challenges and recent board turnover.

• Board of Directors recently had key departures. New Board Chair appointed.

• Fundraising challenges and additional long-term concerns were apparent.

• Past strategic planning initiatives only partially implemented.

• New, high profile service segment was of great interest to Executive Director.

• Overall service delivered unchanged for more than 15 years.

• Executive Director and Board were interested in a Metrics development program.

• The Executive Team wasn’t really sure what they wanted in a Strategic Plan, but knew that they needed to have some guidance.

• Executive Director interviewed a number of firms who specialized in this area, but a Board Member from a CI client asked Chief Innovation is we would do it. We gladly accepted the assignment and offered to do it for free.

Strategic Plan (Non-profit) Situation


Create a strategic planning document for the charity similar to one from Corporate America, and prepare it for the client team to complete.

Strategic Plan (Non-profit) Assignment

• Chief Innovation used its ‘Small Business Strategy’ methodology as the base.

• The majority of structuring work would be done by CI, with situational specifics and existing data presentation left to the Board and onsite staff of the charity.

• CI did not have time to interview all of the Board Members. Belief was that it would be better to present initial plans and assumptions and obtain feedback, rather than start with a blank page for discussions.

• The project, given that it was pro bono in nature, was more focused on building out the structure and providing the client with ideas for different strategies, rather than completing all of the detailed work.

• End deliverable was the strategic planning document, absent sections that either internal client people were gathering the data for or that researching those specific areas was something that the staff would benefit from rather than an outsider.


The project moved very quickly and did not require detailed planning, but the approach could be broken out into the four phases below.

Project

Discussions

& Data Requests

Confirmation

& Clarification

Report

Development

Final

Report

Completion

1 2 3 4

• Met with Executive Director to discuss history and assignment

• Discussed available documentation and past initiatives

• Selected a few key Board Members to speak with, along with Chairman

• Met with or called selected Board members

• Received documents

• Reviewed current documentation on performance/structure

• Analyzed past programs and proposals

• Developed a list of questions and ideas to discuss with ED / Chair

• Prepare preliminary assumptions and proposal for structure

• Met with ED and Chair to agree on how to proceed

• Laid out report structure, with sections and data needed

• Decided what would be completed by CI and what by Client

• Reviewed conversation notes and documents.

• Filled in structure of report.

• Preliminary report submitted to Chairman

• (completed by client)

• Background sections completed

• Competitor sections completed

• Document reviewed

• Financial review completed

• Presented to Board

DeliverablesStrategic Planning document for client to input their portion, which then will be presented at Board of Directors meeting.

Strategic Plan (Non-profit) Approach


The Strategic Plan was broken out into the four sections below.

I.

II.

III.

IV.

• What is a ‘Strategic Plan’

• Table of Contents

• Background

• Mission, Focus, Core Values

• Internal Analysis

• Finances, Staffing, Resources

• External Analysis

• Competitive assessment, Trends, Developments (technology)

• 5 Focus Areas & Vision

• Key Decisions needed

• Metrics

• Implementation plan

• Next Steps

• Appendix

• Assumptions (including decisions already made)

Introduction

Analysis – Internal & External

Strategic Directions

Additional Areas & Next Steps

Strategic Plan (Non-profit) Analysis - Structure


There were no adjustments made to their Mission Statement or Core Values, but charities need to remember those are not a ‘strategic plan’.

Mission Statement

CharityCo is a non-profit agency dedicated to promoting its specific objectives. Our

program provides the tools that help the target audience of CharityCo by allowing

them to improve their lives with respect to our objectives.

Core Values

1) Believe the individual is the core for self-improvement.

2) Everyone involved in our organization is treated with self-respect and dignity.

3) Support our targets to develop skills to support their personal objectives.

4) A strong work ethic is the basis for all value.

5) Doing the right thing regardless of the circumstances.

6) A climate of trust (between client, staff, and volunteer) is critical to the success

of our objectives.

Strategic Plan (Non-profit) Analysis


Chief Innovation used a variant of its ‘small business strategy’ and altered components for relevance to philanthropic endeavors.

External Analysis

• Macro-economic factors

• Competitors (anyone who competes for funding or clients)

• Geography specific

• Clients and needs

• Technology Threats and Opportunities

• Regulatory and Government activity

Internal Analysis

• Finances

• Growth Plans

• Expansion Options

• Resources

• Staff

• Volunteers/Board of Directors

• Offerings

• Branding/Publicity

• Events & Alliances

Strategy

• Organizational Goals and Objectives

• Evaluation of existing and future opportunities

• Charity segment outlook and trends

• Funding sources and targets

• Strategies for all funding sources

• New segment entrance(s)

• Branding & PR planning

• Target alliances

• Competitive Assessment

• Client Segmentation/Profiling

• Customer Retention and Evaluation Programs

• Financial Targets

• HR Key Roles & Development

• Capacity Additions/Lay-outs

• Capital Investment Plans

• New Service Offerings

• Client Management Metrics

• Assignments (To Do) for everyone

Strategic Plan (Non-profit) Analysis – Strategy – Top Level Inputs


The internal assessment included profiling staff and Board roles, marketing activities, a volunteer base profile and also services offered.

Executive Director

Edna Joseph

(22 years)

Program Director

Roy Nash

(5 years)

Office Manager

Tom Donnelly

(11 years)

Grant Manager

Stephanie Early

(1 year)

Director of Marketing

Denny Specht

(new)

Volunteer Coordinator

Joy Brummet

(6 years)

Program Manager

Vern Burns

(new)

Special Programs

Jenny Delisle

(2 years)

Edna Joseph

Executive Director & Chairman

Founder

Philip Craig

Chevy Chase Bank

Treasurer

Deborah Hayes, ABC Marketing

President

PR, Marketing & Advertising

Robert Friedman

D.D.S.

Healthcare Assistance Programs

Tina Walker

Director of Human Resources,

Microsoft

Fund Raising

TBD – Next will be to target new initiative

Jonathan Rifkind

Vice President, Manufacturing, Pepsico

Operations

Mike Kellinger

Doctor

Healthcare Assistance Programs

Philip Johnson

Chief Executive Officer, Print & Copy

Fund Raising

Jenny Paul

Attorney

Legal Counsel (not a Board Member)

Marketing messages

How we get articles written?

Press and media outreach

‘Friends’ in the press and where

How we differentiate

Who inside CharityCo is in-charge of this

Articles since 2010

Brand, Marketing & PR

• Number (total on roster)

• Profile (typical)

• Key Members

• Activities Involved In

• Active Contributors

Volunteers Profile

Strategic Plan (Non-profit) Analysis – Internal Assessment

In addition, various charts to show finances (assets, revenue, expenses, etc.) for the last 5 years were suggested to be included, as well as client service rates.


The competitive assessment was focused on other regional organizations where overlap in services or fund raising was obvious.

Career and Job Related Services

In this section, we asked the client to list out what their specific role in this sector was, and what services were provided and the value to this segment..

• Jewish Family Services

• HiTech Career Connections

• TANF

• NW Bible Church

Organization What they do? (Scale / size) How we are different?

NameDescription of the organizations

mission, and estimation on number of

clients served or budget if available.

Explain how what CharityCo does

is different or how a different

market is served (if it is different!)

The client’s team was asked to prepare a short profile on each firm. This was suggested to be done on 2, possibly 3, of the organizations that competed with it in its four related areas of focus.

Strategic Plan (Non-profit) Analysis – External – Competitive Assessment


Various developments in technology and the internet were presented to better assist the Board in making decisions related to the strategy.

Development / Trends Implication for Charity

Virtual / Online TrainingPossible opportunity to leverage for delivery, and threat to

funding given people may ask ‘why not you also’

Social MediaNew method to get message out. Difficulty breaking

through the noise and clutter.

Crowd FundingNew method for fundraising, but also threat from

competitive offerings if more tech savvy.

Online Philanthropic TrackingSites reporting performance and credibility. Good if

metrics are good and message cleaned up.

Communications TechnologiesProvides new ways to engage, coordinate and thank

volunteers and prospective ones.

Survey / Tracking TechnologiesCC needs to stay engaged with their clients through the

end of the process, and possibly longer-term.

Technologies such as these should facilitate this if used.

Mobile DevicesAlmost everyone has a smart phone these days, and

mobile platforms provide for both support and tracking.

Donor Lists & InformationIdentifying who gives, who gives to people like you and

who has money was never easier. Getting it – still hard!

Strategic Plan (Non-profit) Analysis – External Analysis - Technology


Major items and decisions were also mapped out for the Board to discuss. Some of these (e.g. Metrics) had further details included.

• Vision – what do we want to look like in three years?

• New Initiative – move the entire organization in that direction? Make a separate group serviced by the whole?

• Board Members – what is their (each) role and expected contributions?

• Volunteers – do we want to do something like the Executive Volunteer Program, and if so, what areas or roles do we want to fill?

• Core Offering – do we want to add or drop any part of our program?

• New Offerings – do we want to add anything?

• Succession Plan – when do we decide on training for people to move into their next role?

• Metrics – which ones to use? Which ones to publicly release?

• Investment – any technologies that are justified in their payback?

• Alliances – what other groups to partner with and why?

Strategic Plan (Non-profit) Analysis – Strategic Directions – Key Decisions Needed


Five major strategic thrusts were developed to focus future activities.

1 Raising Money

3 Providing Assistance to Clients

2 Sourcing & Managing Client Flow

4 Attracting, Utilizing & Rewarding Volunteers

5 Developing a Strategy for our New Initiative

For each of these we delineated sub-areas of focus, corresponding objectives and have created a specific list of action items from which to drive execution of our goals.

Strategic Plan (Non-profit) Analysis – Strategic Directions


For each of these five, we listed out sub-areas, assigned each owners and then built out a list of action items or work that needed to be done.

1 Raising Money

A. From Foundations / Grants (John)

B. From Corporations (TBD)

C. From High Net Worth Donors (Edna)

D. From “The Mass Market” (Rena)

E. From Events (Jenny)

F. From Government Entities (Millie)

1. List of ‘stuff’ needed (e.g. food, cash, etc.)

2. Understanding of foundation/grant data needs and ‘canned’ data from CharityCo

3. Comprehensive grant solicitation plan

4. List of corporate sponsors to ‘like’ programs

5. List of target corporations and contacts

6. List of mutually beneficial things (e.g. ‘Thanks’ Ads for Contributing) for Corps

7. List of High Net Worth individuals and CC priorities and connections to engage

8. More ‘success stories’ from past

9. Mass market communication plan

10.Social Media expert and attack plan

11.List of funding mechanisms for Mass Market

12.Benchmark list of events from other groups

13.Analysis of ‘how’ they make money

14.Event descriptions with what has and has not worked over the years

15.Execution details for our events to ensure that they can easily be replicated each year

Our Targeted Results

The implementation plan and ‘Next Steps’ were left to be developed after the Board Meeting so that scope, assignments and timelines could be agreed upon.

Strategic Plan (Non-profit) Analysis – Strategic Directions


Questions to drive the newest initiative were included and meant to provide the Board with an understand of ‘what it will take to do this.’

• Leadership roles – who will run this, who will our Board Member be, who will be the spoke woman, who are our contacts at the related organizations

• Name – what will we call this?

• Marketing / PR – what kind of branding will we do? What will be our PR strategy?

• Differentiation – how will this be different than our general services? That other organizations?

• Funding – what new sources of funding we will go after? Who supports these areas?

• Alliances – what groups and organizations will we work with to develop this?

• Events – what events will we have? Will we participate with others?

• Clients – what groups will we accept referrals from? How will we prioritize?

• Metrics – what metrics will we use to track / promote this? Will we separate these?

• Competitive Offerings – how will we ‘defend’ what we are doing while cooperating?

• Integration – how will this become a part of CharityCo or decisions relating to moving the entire organization to being transforming or focused until this group is no longer so critical?

In addition to this, a sub-project on Metrics was built and provided to the client to research and work on. Already posted SlideShare.

Strategic Plan (Non-profit) Analysis – New Initiative - Strategy


The client received a document with a structure that would allow it to easily discuss strategic options and update it in future years.

• CI completed the project over a period of a few weeks. The actual total time to complete CI’s portion of the project (meetings, report, etc.) only took 32 hours.

• The client’s team was left to do the competitive assessment and internal data analysis portions given that it was felt that they really need to become familiar those subjects and it was best not to have an outsider learn and then disappear.

• The structure of this project is atypical for non-for-profits. Many confuse ‘strategic planning’ with Mission Statement or Vision development. This was meant to leave them with the status quo, and focus on the ‘what’ and the ‘how’ as far as understanding how the organization should move forward.

• Chief Innovation does not look to consult for non-for-profit organizations, and this project was completed pro-bono at the request of a former client. We are posting this so as to help other charitable groups avoid spending money on consultants.

Strategic Plan (Non-profit) Results

• Any questions, please contact:

• Jay Martin, Chief Innovation, Inc., Dallas, Texas

• Send me an InMail on LinkedIn to contact me (email and phone usually provided to clients on decks)