Strategic planning for nonprofit organizations is the process of defining an organization’s mission, vision, goals, and objectives. It is a critical tool for ensuring that a nonprofit is on track to achieve its desired outcomes. Just as one needs an architectural plan before building a home, a nonprofit must have a strategic plan to advance its mission and lead the organization on a path to success that is defined by achievable benchmarks along the way.
Benefits of Strategic Planning
There are many benefits to strategic planning for nonprofit organizations. For example, it can help to:
- Clarify Mission and Vision. The strategic planning process offers the opportunity to address the organization’s purpose and what it hopes to achieve in the next few years. Recently, many nonprofit organizations had to pivot after COVID-19 to better serve their clients. Clear mission and vision statements provide non-profit leaders with a framework for decision-making to help to keep the organization stay focused on its goals.
- Set Clear Goals and Objectives. What are the over-arching goals that the organization wants to achieve? Which objectives will need to be met in order to achieve those goals? A well-defined set of goals and objectives provide a roadmap for progress and help to measure the organization’s success over time.
- Identify Strengths, Weaknesses, Opportunities, and Threats (SWOT). A SWOT analysis uncovers an organization’s strengths and the opportunities that can be leveraged to achieve its goals. It also reveals organizational weaknesses and environmental threats that need to be addressed.
- Develop a Plan to Achieve Goals. A strategic plan outlines the specific steps that the organization will take to achieve its goals. It begins with a shared vision by the organization’s leadership on which organizational goals to prioritize over the term of the strategic plan. Each goal identified is then assigned to a member(s) of the organization’s senior leadership team and/or Board leader to ensure its oversight. Objectives and benchmarks are identified and assigned to each goal with target dates for completion.
- Track Progress and Make Necessary Adjustments. A Board committee is typically assigned the role of monitoring overall progress on the strategic plan, providing updates to the Board throughout the year. Each person assigned to a goal is responsible for providing the committee with an update on its progress and any adjustments that were necessary along the way.
- Communicate Plans to Stakeholders. The strategic plan creates an opportunity for a nonprofit to communicate how it is achieving its mission and making an impact in the community. Funders, donors, volunteers, and other stakeholders want to understand the organization’s goals and how they can support the organization’s mission. The strategic plan helps build the case for support.
The Process of Strategic Planning
The process of developing a strategic plan is as important as the plan itself. Each step in the process allows the non-profit leadership team the time necessary for reflection on the organization, its mission, and values uniting them for a shared vision for the future. This collaborative process also helps to create a sense of shared responsibility among leadership.
Engagement of Outside Consultant
An outside consultant is typically engaged to draft the strategic plan. The consultant can offer an objective organizational assessment, facilitate the leadership retreat, and provide confidentiality for Board, leadership, and stakeholder interviews and surveys.
Initial Review and Assessment
The strategic planning process begins with a high-level review of the organization’s key documents, including financial statements, bylaws, Board meeting minutes and onboarding materials, staff and volunteers roles, and reports on programs, fundraising and marketing. The organization’s website, social media, and technology platforms are also evaluated.
Stakeholder Interviews and Surveys
Confidential one-on-one interviews are then conducted with Board members, senior leadership, and significant stakeholders to gather their perspectives. Board members also complete a confidential survey to capture their perspectives on their own Board experience as well as their perceptions of overall Board performance. A summary and analysis of the survey results identify opportunities for improvement in Board performance and the Board member service experience.
Leadership Retreat
After the interviews are conducted and survey results are tabulated, Board members and senior leadership come together for a retreat facilitated by the consultant. The meetings take the Board and senior leadership through the step-by-step process and series of discussions that help the group to ultimately arrive at a shared vision and first draft of organizational goals.
Goal Setting
The retreat begins with a review of recent accomplishments by the CEO, and the consultant provides a high-level organizational assessment. The organization’s mission and vision are then reviewed to gather input and any suggested changes. The consultant facilitates a SWOT exercise to identify the organization’s strengths, weaknesses, opportunities, and threats.
A brainstorming session follows the SWOT to allow the group to “dream big” for the future before determining which organizational goals will be realistic during the term of the strategic plan. Strategic planning periods have typically shortened to 3-5 years since COVID-19 and as the pace of technology has quickened.
The group identifies the top organizational goals in each of the areas of programs, facilities, human resources, fundraising, marketing, and Board development. By the end of the retreat, the group has identified 10-15 goals and the strategic plan can be drafted by the consultant. After the Board reviews the strategic plan and makes any necessary edits, the Board passes a motion to accept the plan. A Board committee is assigned the responsibility of reporting progress on the strategic plan at future Board meetings.
Final Thoughts
A strong strategic plan will help the organization stay on track and avoid the pitfalls of being sidetracked by distractions and competing agendas. Nonprofit leaders often confront strong voices from key stakeholders that diverge from the organization’s mission and goals. The strategic plan provides an important resource that can be referred to and that demonstrates the extensive consideration that shared leadership gave to its future.
Strategic planning is critical for the success of any non-profit organization. It provides guidance, self-knowledge, and decision tools. It can also help a nonprofit organization adapt to unpredictability and course correct when need be. The goals outlined in the strategic plan provide an opportunity to communicate the organization’s plans and measurable outcomes to stakeholders, which makes for a strong case for support. The strategic plan provides the solid foundation for building a stronger organization and increasing the chances of achieving goals and making an impact in the world.
