Strategic Planning (Why Bother?) Phillip Bridgewater - - PowerPoint PPT Presentation

Strategic Planning

(Why Bother?)

Phillip Bridgewater Organizational Development Consultant Merger SME US Office

• Word Association
• A Modern Day Parable
• What a Strategic Plan is NOT
• What a Strategic Plan IS
• Why Strategic Plans Fail
• Aligning with HFH Global Strategic Plan
• Resources
• Q&A

Workshop Overview

What do you think of, what do you feel, when you hear the phrase “strategic plan”? Word Association

24 “Everyone then who hears these words of mine and acts

• n them will be like a wise man who built his house on
• rock. 25 The rain fell, the floods came, and the winds blew

and beat on that house, but it did not fall, because it had been founded on rock. 26 And everyone who hears these words of mine and does not act on them will be like a foolish man who built his house on sand. 27 The rain fell, and the floods came, and the winds blew and beat against that house, and it fell—and great was its fall!” Matthew 7:24-27 (NRSV)

1235 Overlook Court

Mission, Vision or Values

These are all components of a strategic plan and an

• rganization’s culture, but taken alone they do not

represent strategy. What Strategic Planning is NOT

Goals, Targets, or Mileposts

Setting Goals, Targets, or Mileposts is better than nothing, but unsupported with actions plans and budgets, they can’t be mistaken for strategy either. What Strategic Planning is NOT

Review with Projections

A historical review of the company’s performance could certainly be a component part of a strategic plan, and post-mortem reviews of past operating periods can be useful, but they hardly constitute a sound, well thought

• ut strategy

What Strategic Planning is NOT

Budget or Cash Flow Projections

Budgets and cash flow projections are wonderful, but they lack the passion, the differentiation, the action plans, etc. to support the numbers in the budget. What Strategic Planning is NOT

A Narrative without Budgets and Cash Flow Projections

Mirror opposite of budgets and cash flow projections. Wonderfully crafted verbiage could certainly be inspiring, but in the absence of hard numbers narratives just don’t get it done. What Strategic Planning is NOT

SWOT Analysis

SWOT analysis can be very valuable, and it can certainly be part of a well thought out strategic plan, but again, it should not stand on its own. What Strategic Planning is NOT

Lists - especially long lists - of mileposts or objectives

Long lists are simply unworkable, unmanageable, don’t provide for accountability, aren’t supported by the numbers, and have many other failures. Lists are lists, not strategies.

What Is a Strategic Plan and Why Do You Need One? By Wayne Rivers

What Strategic Planning is NOT

• Mission, Vision or Values
• Goals, Targets, or Mileposts
• Review w/ Projections
• Budget or Cash Flow Projections
• A Narrative w/o Budgets and Cash Flow Projections
• SWOT Analysis
• Lists - especially long lists - of mileposts or objectives

….then what is it? So, if Strategic Planning is NOT…

So, What is Strategic Planning? Strategic planning: In partnership with staff, boards draw on an understanding of organizational strengths and weaknesses, industry trends, and peer bench- marking to articulate priorities and monitor progress against financial and program goals. After translating strategic priorities into action plans, they use these plans to assess the chief executive, drive meeting agendas, and shape board recruitment.

Strategic Planning: Understanding the Process, BoardSource 2011

The ultimate goal for a strategic plan is to enable your team to focus on a small set of desirable, clearly articulated outcomes in order to produce desired results.

“What Is a Strategic Plan and Why Do You Need One?” By Wayne Rivers

So, What is Strategic Planning?

A strategic plan is a tool that provides guidance in fulfilling a mission with maximum efficiency and

• impact. If it is to be effective and useful, it should

articulate specific goals and describe the action steps and resources needed to accomplish them. As a rule, most strategic plans should be reviewed and revamped every three to five years.

Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders by Richard A. Mittenthal

So, What is Strategic Planning?

A successful plan is, by definition, a usable plan–one that informs the organization’s activities as well as its long-range view, and

• ne

that yields meaningful improvements in effectiveness, capacity and relevance.

Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders by Richard A. Mittenthal

What is Strategic Planning

• Clarify the mission to all stakeholders
• New insights from other peoples’ perspectives
• Identification of challenges and barriers
• Assess, reassess and adjust programs
• Reaffirm that an organization is headed where it wants to go
• r should be going
• Focus thinking outside the box - new ways of thinking about
• ld problems
• Develop a framework within which to make difficult program

decisions

• Address external uncertainties and change
• Garner financial support (donors who may require a strat. plan)

Why is Strategic Planning Important

• Build teamwork, communication and expertise among the

board and staff

• Buy-in/ownership from others on the team
• Measure organizational effectiveness by incorporating

evaluation into the process

• Forced choices - the strategic planning process requires the

team to narrow down a huge menu of potential choices to a manageable few thereby increasing the focus of everyone on the team

• The PROCESS ITSELF! The process drives everything else;

even the final planning document itself is less important than the “all for one, one for all” process of thinking through the strategies.

Why is Strategic Planning Important

10 Reasons Why Strategic Plans Fail

http://www.forbes.com/sites/aileron/2011/11/30/10-reasons-why-strategic-plans-fail/

Why Strategic Plans Fail

• 1. Having a plan simply for plans sake

Some organizations go through the motions of developing a plan simply because common sense says every good organization must have a plan. You get out of a plan what you put in. If you’re going to take the time to do it, do it right. Why Strategic Plans Fail

• 2. Not understanding the environment or

focusing on results

Planning teams must pay attention to changes in the business environment, set meaningful priorities, and understand the need to pursue results. Why Strategic Plans Fail

• 3. Partial Commitment (buy-in)

Boards of Directors & CEOs must be fully committed and fully understand how a strategic plan can improve their enterprise. Without this knowledge, it’s tough to stay committed to the process. Why Strategic Plans Fail

• 4. Not having the right people involved.

Those charged with executing the plan should be involved from the onset. Those involved in creating the plan will be committed to seeing it through execution. Why Strategic Plans Fail

• 5. Writing the Plan and Putting it on the

shelf.

This is as bad as not writing a plan at all. If a plan is to be an effective management tool, it must be used and reviewed continually. Unlike Twinkies or a fine vino, strategic plans don’t have a good shelf life. Why Strategic Plans Fail

• 7. Having the wrong people in leadership

positions

The Board of Directors & Management must be willing to make the tough decisions to ensure that the right individuals are in the right leadership positions. The “right” individuals include those who will advocate for and champion the strategic plan and keep the company/organization on track. Why Strategic Plans Fail

• 6. Unwillingness or Inability to Change

Your company/organization and your strategic plan must be nimble and able to adapt as market conditions change. Evaluate & Reevaluate.

Why Strategic Plans Fail

• 8. Ignoring marketplace reality, facts, and

assumptions

Don’t bury your head in the sand when it comes to marketplace realities, and don’t discount potential problems because they have not had an immediate impact on your business/organization yet. Plan in advance and you’ll be ready when the tide comes in. Why Strategic Plans Fail

• 9. No Accountability or Follow Through

Be tough once the plan is developed and resources are committed and ensure there are consequences for not delivering on the strategy. Why Strategic Plans Fail

• 10. Unrealistic Goals or Lack of Focus and

Resources

Strategic plans must be focused and include a manageable number of goals, objectives, and programs. Fewer and focused is better than numerous and

• nebulous. Be prepared to assign adequate resources to

accomplish the goals and objectives outlined in the plan. Why Strategic Plans Fail

And because ours “go up to eleven…”

An homage to the 1984 Mockumentary “This Is Spinal Tap” “The Funniest Rock Movie Ever Made.”

Why Strategic Plans Fail

• 11. Critical Contingency Plans are Never

Developed

“What can go wrong, will go wrong”. Proactively develop a contingency plan for alternative approaches to achieving goals if realities change & the developed actions are no longer feasible. Remember: Review & Reassess; Evaluate & Reevaluate. Why Strategic Plans Fail

And now a brief period of questions and/or comments as we make a less-than graceful segue.

Why does HFHI Have a Strategic Plan?

• Does 1.6 billion mean anything?
• The number of people in the world who lack decent,

affordable shelter

• Our Vision: A world where everyone has a

decent place to live.

• Massive need forces us to reach higher and stretch

further.

Jonathan Reckford, regarding the 2014-2018 Strategic Plan

• HFH met and exceeded the target of 100,000 families served by 25% to serve a total of 124,964 families (614,856

individuals) in FY13

Trend: Families Served by Product (FY13)

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000

FY2003 FY2004 FY2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY2013

New Rehabs Repairs & Incrementals

Represents Strategic Plan

36

Cross-Cutting Initiatives

Strategic Plan Realization Growth Strategy Measuring Impact

37

FY14 HFHI Strategic Initiatives

Putting it all Together Four Goals—10 Objectives

Global Metrics

How to Localize HFHI’s Global Plan

Why Align?

So we can be a unified global family with local relevance

The 2014-2018 Strategic Plan serves as a common framework to guide our Habitat family worldwide

Diversify our product profile Outputs, Outcomes

Societal Impact Sector Impact

Community Development

Advocacy

Neighborhood Partnerships

Localizing the Plan

“It’s getting very hard to talk in simple terms about what Habitat for Humanity does.”

• - HFHI Senior Leader

43

Start with aligning with all three objectives related to the goal: Build a Sustainable Organization.

44

Implement at least one global objective from each Impact goal, and more, as appropriate, to your capacity and the needs of the communities you serve.

45

Build a Sustainable Organization

Habitat for Humanity BLOCK BUILDER

Goal: Build a Sustainable Organization

Between 2014 – 2018, Block Builder Habitat for Humanity will improve our capacity to mobilize financial and human resources and steward them faithfully. Strategic Objective BBHFH Approach Metrics and Targets

Fund the Mission

• Expand relationships with government entities
• Create planned giving program
• Develop major donor cultivation strategies
• Increase in local government funding
• Planned giving part of resource

development

• Major donor program started

Grow Skills and Leadership Capabilities

• Establish board development committee
• Advance staff and volunteer skill levels
• Analyze staffing requirements
• Committee presents each board

meeting

• Training as line item in budget
• Adequate staff is in place

Operate with Excellence

• Investigate benefits packages for staff
• Board institutes strategic planning
• Software upgraded for improved reporting
• Gift Acceptance policy developed
• Define separate roles for FS and F SUP
• Delinquency policy
• Report to board on findings
• Strategic plan in place
• Data drives decision making
• Adherence to gift policy and report to

board

• Separate F/s & F/Sup committees with

job descriptions

• Policy informs monitoring to initiate

action

Sample

Local Headline

Local approach for the Strategic Objective

Local metrics & targets Local Organization

Build A Sustainable Organization

Habitat for Humanity of Anywhere, Inc.

Goal: Build A Sustainable Organization

Improve capacity to mobilize financial and human resources and steward them faithfully and effectively Strategic Objective HFH Anywhere Approach Metrics and Targets

Fund the mission

• Develop/implement major donor

program

• Create House Sponsorship program
• Develop consistent annual fundraisers
• Continue ReStore growth
• “Community of Cooperation Builds” to

finance and provide volunteers for projects

• Two $5k+ gifts from unique donors by end FY14, five by

end FY15

• 20% increase in individual giving by end of FY15
• Hold 2nd Annual House Raising Hoe Down
• Increase ReStore net income by 10% per year
• 10 churches actively engaged in financial and/or

volunteer efforts annually by end of FY15 Build

• rganizational

capacity

• Diversify & nurture Board of Directors
• Solidify Board committees and

develop/expand operating committees

• Build capacity and performance of staff
• All Board and operating committees

populated/functioning by end FY14

• At least 50% of Board attend at least one State,

Regional, or National Conference annually by end FY15

• Volunteer Manager hired by end FY14; attends NALO

Operate with excellence

• Board continues Annual Strategic

Planning

• Develop affiliate safety and risk

mitigation plan

• Review/Update Plan at each annual meeting beginning

FY14

• Comprehensive plan approved by board by end of FY15

Building IMPACT in the US

Build Community Impact

Habitat for Humanity of Anywhere, Inc.

Goal: Build Community Impact

Improve local housing and neighborhood conditions and serve families in our service area. Strategic Objective HFH Anywhere Approach Metrics and Targets

Serve families through sustainable construction and housing support services

• Build with sustainably,

efficiency and excellence

• Incorporate construction

planning technology into all construction activities

• Expand housing

services/products to other cities in service area

• Complete 1-2 new homes and 3-4 A Brush with Kindness

projects in NRI target area by end of CY14, 2-3 new homes and 5-10 ABWK in CY15, and 3 new homes, 5-10 ABWK, and Weatherization planned in CY16, begin implementing Weatherization in CY17.

• Implement local training program for Key Construction

Volunteers utilizing local construction professionals by end

• f FY15
• Meet with County and City representatives at least annually;

target build in Myhometown NLT FY 16 Leverage shelter as a catalyst for community transformation

• Empower residents of focus

community

• Advocate for systems to deal

with Blighted/Abandoned properties in our target areas

• Pre-build Neighborhood Outreach in place for CY14
• Offer ABWK program to qualifying families in target

neighborhoods by CY14, Weatherization by CY17

• Offer to pour sidewalks for neighbors on both sides of new

builds at cost, no-interest loan if in 30-50% of median income by CY15

• 10% annual reduction in blighted properties

Building IMPACT in the US

Build Sector Impact

Habitat for Humanity of Anywhere, Inc.

Goal: Build Sector Impact

Collaborate and advocate to increase access to housing solutions Strategic Objective HFH Anywhere Approach Metrics and Targets

Support market approaches that increase products, services and financing for affordable housing

• Explore mortgage leveraging strategy to

expand build capacity

• Work with City and County in securing

land banks for future builds

• Explore Zero-Equivalent Mortgage

Program

• Explore USDA Rural Development 502

Direct Loan Program

• Leverage 30% of active mortgages with HFHI’s

Flex Cap program by end of FY15; additional 30% by end of FY16

• 10 churches actively engaged in financial and/or

volunteer efforts annually by end of FY15

• Study and recommendation to board by end

FY14

• Study and recommendation to board by end

FY15 Promote policies and systems that advance access to adequate, affordable housing

• Continue partnerships with local

government

• Support HFHI’s Advocacy Strategic

Initiative

• Support HFHI’s World Habitat Day
• ED and Board continue to cultivate relationships

and meet with local government officials regularly in FY14

• Attend HFH on the Hill in FY16
• Develop local WHD event for FY15 and each year

thereafter

Building IMPACT in the US

Build Societal Impact

Habitat for Humanity of Anywhere, Inc.

Goal: Build Societal Impact

Expand awareness of housing as a critical foundation for breaking the cycle of poverty. Strategic Objective HFH Anywhere Approach Metrics and Targets

Mobilize volunteers as hearts, hands and voices for the cause of adequate, affordable housing

• Utilize Collegiate Challenge teams
• Implement Women Build
• Engage community about volunteer

construction opportunities

• Affiliate sponsored Global Village trip
• Host first team in FY15
• Participate in National Women Build Day in FY15
• Volunteer Manager to reach out to business, civic,

and church groups on volunteer opportunities by end of CY15

• Develop a “Mission Center” in the ReStore by end
• f FY15
• Complete first GV trip in FY16

Serve as a leading voice in growing awareness of housing as a critical foundation for breaking the cycle

• f poverty
• Continue to develop and maintain

relationships with Local, State, and National government leaders

• Increase awareness of Habitat events

and the Habitat opportunities

• Train Partner Families to make

community presentations

• At least one public official at each home dedication

and/or fundraising event

• Participate in statewide advocacy day and World

Habitat Day events

• Partner Families trained by end FY15; Visits begin

FY16

Building IMPACT in the US

Localizing the Plan

Developing S.M.A.R.T.E.R. Objectives

• Specific
• Measurable
• Attainable
• Relevant
• Time-Bound
• Evaluate
• Reevaluate

Available Resources

Strategic Plan Website on My.Habitat

• http://my.habitat.org/content/strategic_planning

Strategic Plan Toolkit

• http://my.habitat.org/kc/collection-detail/3e140/Strategic-Plan-Toolkit-~-

La-caja-de-herramientas-del-Plan-Estrat%C3%A9gico

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Strategic plan US Affiliate info

Summary

• FY14-18 Global Plan - Framework
• Localizing plan is important to our

global success

• Resources available in the Strategic Plan

Toolkit

• http://my.habitat.org/kc/collection-

detail/3e140/Strategic-Plan-Toolkit

Questions??