So you want to move your organization forward, and you think that strategic planning will make everything better. Well, if you do it right, it could. Notice I did not say it will.
Strategic planning is something that typically takes a significant amount of experience to become proficient. In many organizations, the directors may have some experience in the business world of strategic planning, but the non-profit world can be very different.
There are many differences in the approach to strategic planning. The most common ways to plan are issues, goals, holistic, and scenario planning. The issues approach is often used when there are critical issues that need addressed and the setting of goals will have to wait until later. Frequently, lack of resources and time constraints dictate a issues approach to planning.
Goal based planning is probably the most common form of strategic planning. In one way or another, everyone has done some type of goals based planning, whether it is building a business, planning for college, saving for retirement, etc. The goals based approach is focused on a desired outcome at some point in the future, ie. 1-5years. The entire planning process is designed to ensure achievement of the set goal. Sometimes the goals come from the mission, vision, or values. Unlike issues based planning, the organization should have no real critical issues to face in the foreseen future, and the operational environment should be stable.
Holistic planning is often thought as not planning at all. Many people find it counter-intuitive to let organizations "self organize." This approach is one of emerging systems. Traditionalists will say that planning is linear, that is, a particular sequence must be followed if we are to achieve success. The more natural or "holistic" approach which is growing in its use, is to focus on the values and the vision while not worrying about the process. This process is more open to discussions with no defined time line for achieving success. The holistic approach is particularly beneficial when working with large, highly diverse groups which are focused on the what as opposed to the how.
Scenario planning is a technique from which the Shell Oil company is credited for developing. Scenario planning is considered a negative plan since the plan is derived from a worst case scenario mind set. Scenario planning is not concerned with finding out what the best and worst case scenarios for an organization are, rather they are designed to provide swift guidance for an organization in the event that such a scenario or something similar comes to pass. This type of planning is often used when organizations struggle to create a tangible vision, or when the operational environment has become relatively unstable.
Before you start your plan, you need to find out why you are considering a strategic plan. Is it routine, or is it out of necessity. Will it be met with open ears, or will there be resistance. Why? Do you want a written plan? Anyone can come up with a plan. Successful organizations know how to select the right type of plan to best fit there needs.
For a reference on strategic planning check out this book by John Bryson. It can be a bit dry, but the information is very good especially if you couple it with the workbook.
You can also see a good description of the strategic planning process Here
Wednesday, September 29, 2010
Sunday, August 1, 2010
So You Want to Start a Non-Profit
Everyday people are finding new causes to support. These causes range from small local concerns to global or international issues. Occasionally, a person or group of people decide they want to start their own non-profit organization. If this sounds like you, then consider this first.
You don't own your non-profit organization. You may be responsible for it, but you don't own it. By definition, a non-profit organization is publicly owned. You also measure the success of the organization by whether or not you are meeting the needs of the population you serve. Non-profit is sometimes a misnomer. Keeping balanced books is just as important for non-profit organizations as it is for a business.
Many non-profits get special tax status, such as 501(c)3 organizations in the USA. In the United States, the IRS will classify an organization as charitable so long as it fulfills public needs in areas such as science, social services, arts, religious, health, education, civics, environmental, human services, etc. Remember, not all purposes are acceptable for charitable status. Many lobbying organizations, while they may represent and seek to advance social needs, cannot be classified as charitable.
While you can create an informal non-profit, most likely you are looking to incorporate as a new organization. After you file with the appropriate agency, you then need to decide if you are going to seek tax-exempt status. During this process, you will also consider becoming a tax deductible entity. This will allow donors to your organization to receive a deduction on their tax liability. Be aware that the IRS can take up to 18 months to review and decide on your organizations charitable status.
In order to operate your organization efficiently, you need to remember three key components to non-profit organizations; Board, Administration, and Programming. The board consists of the legally responsible individuals who make decisions about the organization including mission, values, policies, etc. The administration is responsible for carrying out those decisions to the community the organization serves. Programs are how the administration effectively meets the needs of the community.
Setting up your organization properly to begin with will save you many headaches in the future. Before you incorporate your new organization, you should know who is going to be on the board of directors, who are the officers including the chair, and who will be the Executive Director. Typically, the executive director is not a board member. You should also know how you are going to administer your operations, handle staffing and volunteers. It is a good idea to start looking at a potential donor base by cultivating relationships within your community.
If after all of this you still think you are ready to begin the process of starting a new non-profit organization, take a look at the following links. Answer the questions honestly and evaluate your situation. If you decide to go forward, be prepared to seek help in getting started. Burns & Associates will be happy to assist you along the way.
Greenlights Start up Assesment
Non Profit Center Questionaire
You don't own your non-profit organization. You may be responsible for it, but you don't own it. By definition, a non-profit organization is publicly owned. You also measure the success of the organization by whether or not you are meeting the needs of the population you serve. Non-profit is sometimes a misnomer. Keeping balanced books is just as important for non-profit organizations as it is for a business.
Many non-profits get special tax status, such as 501(c)3 organizations in the USA. In the United States, the IRS will classify an organization as charitable so long as it fulfills public needs in areas such as science, social services, arts, religious, health, education, civics, environmental, human services, etc. Remember, not all purposes are acceptable for charitable status. Many lobbying organizations, while they may represent and seek to advance social needs, cannot be classified as charitable.
While you can create an informal non-profit, most likely you are looking to incorporate as a new organization. After you file with the appropriate agency, you then need to decide if you are going to seek tax-exempt status. During this process, you will also consider becoming a tax deductible entity. This will allow donors to your organization to receive a deduction on their tax liability. Be aware that the IRS can take up to 18 months to review and decide on your organizations charitable status.
In order to operate your organization efficiently, you need to remember three key components to non-profit organizations; Board, Administration, and Programming. The board consists of the legally responsible individuals who make decisions about the organization including mission, values, policies, etc. The administration is responsible for carrying out those decisions to the community the organization serves. Programs are how the administration effectively meets the needs of the community.
Setting up your organization properly to begin with will save you many headaches in the future. Before you incorporate your new organization, you should know who is going to be on the board of directors, who are the officers including the chair, and who will be the Executive Director. Typically, the executive director is not a board member. You should also know how you are going to administer your operations, handle staffing and volunteers. It is a good idea to start looking at a potential donor base by cultivating relationships within your community.
If after all of this you still think you are ready to begin the process of starting a new non-profit organization, take a look at the following links. Answer the questions honestly and evaluate your situation. If you decide to go forward, be prepared to seek help in getting started. Burns & Associates will be happy to assist you along the way.
Greenlights Start up Assesment
Non Profit Center Questionaire
Friday, July 23, 2010
Building Better Boards
Boards have the ultimate responsibility for making decisions on behalf of the organization. It doesn't matter how big or small the organization is, the board can make or break the mission. Before you decide to nudge your board into a major overhaul, it is important know if a change is needed. As mentioned in the last post, assessments can help with this process.
If you think something is wrong, but you just can't put your finger on the issues, try looking for potential indicators that something is not quite right. Some common indicators of struggling boards are burnout, high turnover, micro-managing, low attendance and participation, maybe even conflict amongst the members.
The non-profit organization works best when it is highly structured. When structures are soundly developed and maintained, the actions of the members becomes more focused thereby determining outcomes that are positive for the organization. In highly functioning boards, the actions are more important than the blame. In fact, blame is never helpful, only divisive.
Board members who are not willing to put in the time and effort needed to learn about the organization and address the polices and functions of the board will often find themselves working on the same problems time and time again. While keeping meetings short may help the board members feel like participating, their ability to actually tackle problems diminishes significantly when there is not adequate time for dealing with those issues. Longer, more frequent meetings are much more productive than short infrequent ones. If board members cannot commit to the time requirements, it may be time to look for new members.
Remember, telling a frustrated board that they need to change is not going to make it happen. They need to be heard, not told. This is another opportunity for an assessment of the leadership of the organization. This is time to focus on the "how" not the "who."
If Jim is burned out and Sara thinks that Jim is the problem with the board, we need to find out why Jim is burned out instead of blaming Jim for his problems. A high functioning board will find the "who" irrelevant except in the cases where a member is acting outside of the interests of the organization. In this case it is better to assign more specific tasks with deadlines and desired outcomes. This will either get them more involved with the organization or they will likely leave. If they stay, it could be that they felt they were not permitted to help or contribute to the organization.
Focus on the structure. Diversity is great, but don't let desire for diversity to take away from the mission of the organization. That being said, never discount another person or their abilities just because the are different than you!
If you think something is wrong, but you just can't put your finger on the issues, try looking for potential indicators that something is not quite right. Some common indicators of struggling boards are burnout, high turnover, micro-managing, low attendance and participation, maybe even conflict amongst the members.
The non-profit organization works best when it is highly structured. When structures are soundly developed and maintained, the actions of the members becomes more focused thereby determining outcomes that are positive for the organization. In highly functioning boards, the actions are more important than the blame. In fact, blame is never helpful, only divisive.
Board members who are not willing to put in the time and effort needed to learn about the organization and address the polices and functions of the board will often find themselves working on the same problems time and time again. While keeping meetings short may help the board members feel like participating, their ability to actually tackle problems diminishes significantly when there is not adequate time for dealing with those issues. Longer, more frequent meetings are much more productive than short infrequent ones. If board members cannot commit to the time requirements, it may be time to look for new members.
Remember, telling a frustrated board that they need to change is not going to make it happen. They need to be heard, not told. This is another opportunity for an assessment of the leadership of the organization. This is time to focus on the "how" not the "who."
If Jim is burned out and Sara thinks that Jim is the problem with the board, we need to find out why Jim is burned out instead of blaming Jim for his problems. A high functioning board will find the "who" irrelevant except in the cases where a member is acting outside of the interests of the organization. In this case it is better to assign more specific tasks with deadlines and desired outcomes. This will either get them more involved with the organization or they will likely leave. If they stay, it could be that they felt they were not permitted to help or contribute to the organization.
Focus on the structure. Diversity is great, but don't let desire for diversity to take away from the mission of the organization. That being said, never discount another person or their abilities just because the are different than you!
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