effective strategic planning - the paul clarke · pdf filethe sequence of the basic steps...

Effective Strategic Planning

P L A N N I N G

Getting Your Organization Focused and Directed

Launched in 1982 by Jim and Patty Ro u s e ,

The Enterprise Foundation is a national,

nonprofit housing and community d e ve l o p-

ment organization dedicated to bringing lasting

i m p rove m e n t s to distressed communities.

COMMUNITY DEVELOPMENT LIBRARY™This book is part of the Enterprise CommunityDevelopment Library, an i n valuable re f e rence collectionfor nonprofit organizations dedicated to revitalizing andreconnecting neighborhoods to mainstream America.One of many resources available t h rough Enterprise, itoffers industry - p roven information in simple, easy-to-read formats. From planning to governance, fund rais-ing to money management, and program operations tocommunications, the Community De ve l o p m e n tL i b r a ry will help your organization succeed.

ADDITIONAL ENTERPRISE RESOURCESThe Enterprise Foundation provides nonprofit organizations with expert consultation and training as well as an extensive collection of print and onlinetools. For more information, please visit our Web siteat www.enterprisefoundation.org.

Copyright 1999, The Enterprise Foundation, Inc.All rights reserved.ISBN: 0-942901-20-7

No content from this publication may be reproducedor transmitted in any form or by any means, electronicor mechanical, including photocopying, recording orany information storage and retrieval system, withoutpermission from the Communications department ofThe Enterprise Foundation. However, you may photo-copy any worksheets or sample pages that may becontained in this manual.

This publication is designed to provide accurate andauthoritative information on the subject covered. It is sold with the understanding that The EnterpriseFoundation is not rendering legal, accounting or otherproject-specific advice. For expert assistance, contact a competent professional.

Table of Contents

Introduction 2

Basic Steps of Strategic Planning 3

Preparing to Plan 4

Elements of a Strategic Plan 7

Define Vision, Mission, Activitiesand Values 7

Scan the Environment Using a SWOT Analysis 9

Identify and Prioritize Strategic Issues 11

Define Strategic Goals and Objectives 12

Establish an Implementation andMonitoring Schedule 13

Plan Presentation 14

Case Study of Strategic Planning 15

Strategic PlanningSWOT Analysis Worksheets 27

1

About This Manual

What is strategic planning?

Strategic planning is an essential process in preparing to carryout your organization’s mission. An effective strategic planningprocess provides a framework to make decisions on how to allocateorganizational resources, address challenges and take advantage ofopportunities that arise along the way.

Effective Strategic Planningwas created for staff and board membersof community development organizations. It describes the processfor developing an organizational strategic plan, from preparation todevelopment and implementation. Worksheets are provided to assistwith planning tasks. The manual includes information on:

■ When to undertake strategic planning

■ Who should be involved

■ The five elements of a strategic plan

■ A case study of strategic planning

■ How to organize the plan for presentation

This manual is part of the Planning series within The EnterpriseFoundation’s Community Development Library™. Other manualsin the series provide detailed information on:

■ Creating business plans

■ Developing community-based plans

Nonprofit community development organiza-tions face an array of challenges and opportuni-ties carrying out their missions. Failing toidentify these challenges or opportunities —and plan accordingly — can lead to organiza-tional paralysis, decline and eventual collapse.Strategic planning is an essential process inevery organization’s success.

Through a productive strategic planningprocess, your organization’s leadership will clar-ify and affirm the mission and values of theorganization and define its role in the commu-nity. The process can also identify external andinternal challenges and opportunities that youmay encounter and help you design well-thought-out strategies to address them.

Properly used, strategic planning is a powerfultool to keep your organization energized,focused and effective.

2

Introduction

Strategic planning focuses on establishing yourorganizational direction, setting priorities andidentifying obstacles and opportunities that maylimit or enable you to carry out your mission.

The sequence of the basic steps involved in thestrategic planning process is shown below.

Strategic planning should not be confused withother planning processes such as business plan-ning, program planning or community plan-ning, also referred to as neighborhood planning.Although closely related, strategic planningfocuses on establishing your organizationaldirection, setting priorities and identifyingobstacles and opportunities that may limit or enable you to carry out your mission.

Business plans and program work plans are oftenby p roducts of the strategic planning pro c e s s .After organizational priorities are set and strategicgoals and objectives are articulated, these plansa re used to describe the implementation details of various strategies such as budget, staffing,funding sources and evaluation activities.

A community planning process can assist theorganization in identifying strategic issues basedon an analysis of existing conditions in the com-m u n i t y. These issues are often used in the strate-gic planning process. A community plan mightalso identify potential roles for an organization tofill in the community. For more information oncommunity planning, see A Guide to CommunityPl a n n i n g , another manual in the Pl a n n i n g s e r i e sof the Community De velopment Library.

3

Basic Steps of Strategic Planning

■ Prepare To Plan

■ Define and Review OrganizationalVision, Mission, Activities and Values

■ Do an Environmental Scan or SWOT(strengths, weaknesses, opportunitiesand threats) Analysis.

■ Identify Strategic Issues

■ Develop Strategic Goals and Objectives

■ Create Implementation Plans To AchieveGoals and Carry Out Objectives

■ Monitor and Evaluate Periodicallyand Adjust if Necessary

The Basic Steps of Strategic Planning

Before undertaking a strategic planning process,your organization will need to decide when it isthe appropriate time to embark on such a jour-ney. The final decision to engage in a strategicplanning process should be made by the leader-ship or governing board. Once the decision ismade, your organization will need to allocatefinancial, board, staff and time resources to thestrategic planning process, and design a processthat fits your situation.

WHEN TO PLAN

If your organization is in the early stages of for-mation, a strategic planning session can assistleadership in selecting an area on which to ini-tially focus organizational resources and atten-tion. It will also help your nonprofit establishprogram goals and guidelines.

For more seasoned organizations, a strategicplanning process is most necessary when leader-ship is considering a major shift in programs ors e rvices, or if major changes in the enviro n m e n tor community (governmental, demographics,funding, etc.) cause a shift in focus or a re d i re c-tion of re s o u rces. The process is also important ifthe organization has experienced rapid grow t h .

A strategic planning process should not be donewhen your organization is in the middle of a cri-sis or in the process of changing key boardmembers or staff. If your leadership is focusedon resolving a short-term crisis, they will notdirect adequate attention and resources towardthe strategic planning process. Complete accep-tance or buy-in is essential for the successfulimplementation of the plan. This also holds trueif the organizational leadership is in the middleof a transition. New leadership may notembrace a plan reflecting the philosophies andpriorities of the previous leadership.

OBTAIN SUPPORT OFO R G A N I Z A T I O N A L L E A D E R S H I P

Be f o re proceeding with a strategic plan, the boardof directors of the organization must support thedecision to undertake the process and commit toseeing it through to completion. Planning for thef u t u re success of the organization is the re s p o n s i-bility of the board of dire c t o r s .

Failing to obtain the support and commitmentof the board of the directors can result in lim-ited input and participation from leadership. Itmay also lead to a strategic plan that is not fullyembraced by the leadership. This sense of own-ership is crucial because the board of directorswill be responsible for overseeing the implemen-tation of the plan.

DESIGN A PROCESS TO FITY O U R O R G A N I Z A T I O N

Time is probably the most important elementto consider in designing the planning process.Allow approximately three to nine months toconduct all of the tasks related to the processand additional time for review and approval bythe full leadership. As mentioned earlier, if yourorganization is in the middle of a crisis and can-not allocate adequate time and attention to theprocess, leadership may wish to consider post-poning the process.

In designing the planning process, the leader-ship needs to consider the objectives it seeks toachieve. In addition to producing the elementsof the plan (such as clarification of your organi-zation’s mission and vision or identification ofstrategic goals and objectives), the planningprocess can be designed to achieve other objec-tives. These include increasing the sense of own-ership by the board of directors in currentorganizational activities, strengthening partner-ships with other organizations or institutions,building greater public support and understand-ing of the organization, and increasing the inter-action between board and staff.

4

Preparing To Plan

In the early stages, it may be helpful to surveythe leadership regarding any other “non-planning” objectives to be achieved. Other fac-tors to consider include time availability, inter-nal capacity and access to external resources.

PLANNING ROLES

Depending on its “non-planning” objectives,your organization may decide to design aprocess with different levels of board, staff, con-sultant and external participation. However,keep in mind that the board of directors is ulti-mately responsible for approving and allocatingthe resources to implement the plan. At a mini-mum, the full board of directors needs to bekept informed throughout the process.

The following chart lists the advantages anddisadvantages of several approaches to the strate-gic planning process. The selected process canbe a combination of these approaches.

5

Plan Developed By:

Full Board of Directors

Staff

Committee

Consultant

Advantages

■ Ownership by leadership

■ Board becomes moreinformed about programsand activities

■ Clear understanding of operations

■ Time flexibility

■ Manageable size

■ Can include a varietyof perspectives (such asboard, staff, partners,constituents, etc.)

■ Good understanding ofplanning process

■ Should produce timely andprofessional-looking plan

Disadvantages

■ Time availability may be lim-ited and scheduling difficult

■ May not achieve staff ownership

■ Limited board involvementand subsequent ownership

■ May detract from other staff responsibilities

■ Full board may not feelsense of ownership of plan details

■ Board perspectives may be excluded

■ Limited board and staffparticipation may lead tolimited sense of ownershipof plan details

■ Limited board leadership development

After selecting a planning approach, you willneed to identify your organization’s capacityand resources to carry out the planning tasks.You should also fill the following roles:

■ Leader — To keep the process moving andmake sure that the people who need to beinvolved are. Often the board chair, strategicplanning committee chair or executive directorfills this role.

■ Fa c i l i t a t o r — To help with difficult discussionsand heated debates, and to enable eve ryone top a rticipate and focus on the task at hand. Ke e pin mind that the facilitator’s ability to makedecisions is limited, so key board or staff maynot be the best option for filling this ro l e .

■ Researchers, interviewers, writers — Toresearch, conduct interviews, perform calcula-tions and projections, and document theprocess and produce the written plan. If avail-able, this is a role that staff and volunteersoften fill.

In addition to finding internal or externalsources to fill the above roles, identify thefollowing resources:

■ Financial resources — Funding for consul-tant and facilitator expenses, rental of ade-quate space for the planning sessions, andmaterials and supplies needed for the planningprocess.

■ Skills, knowledge, expertise — It may behelpful to have individuals with knowledgeand expertise in fields related to the programsor activities conducted by your organization.These professionals may include attorneys,bankers, real estate developers, human servicep rofessionals, etc. If your organization does nothave the expertise in-house, check with localcolleges and universities, professional groupsand clubs, and the local chamber of commerc e .

After all the above elements in the plan are iden-tified, the full design should be approved by theorganizational leadership and shared with theparticipants in the planning process.

6

Define Vision, Mission,Activities and Values

The foundation of the strategic plan is thevision, mission, activities and values of the orga-nization. When articulated in formal state-ments, they provide the framework foridentifying strategic goals. The statements pro-vide a vision or target goal for the organizationto achieve and define what the organizationdoes and why. They should be created orreviewed as the first step in formulating theorganization’s strategic plan. Building andManaging a Better Board,one of the manuals inthe Community Development Library’sGovernanceseries, has more information andexercises on writing vision, mission, activitiesand values statements.

A v i s i o n statement tells eve ryone the type ofcommunity or world the organization envisionsfor its constituency as a result of the work ofthe organization.

A mission statement describes what the organiza-tion will do, who it will do it for and how it willachieve the vision. The mission statement isoften the only statement many people will readabout an organization.

An activities statement describes the business or general activities you will use to achieve theorganization’s mission.

A va l u e s statement describes the principlesa n d beliefs that guide the operations of the organization.

These statements provide a filter through whichimportant decisions for the organization and thestandards for evaluating the effectiveness of yourprograms and activities can be screened.

As the “owners” or representatives of the mem-bership of the organization, the board of direc-tors is responsible for creating or modifying themission, vision, activities and values statements.Staff members can also be involved since theyare responsible for day-to-day activities and mayprovide a valuable perspective on the work.

Before you create or review your vision, mission,activities and values, take time to review the his-tory of your organization. This will help refreshthe memories of long-tenured board membersand provide a better foundation for newer mem-bers. Schedule a re t reat where board membersand staff describe (chronologically) major eventsleading to the creation of the organization, indi-viduals who played significant roles, victoriesand program accomplishments, funding sourcesand other supporters, and your organization’sfocus at various points in time.

Reviewing the history will give board members acollective sense of what role the organization hasfilled in the past and can assist them in decidingwhat it can be in the future.

7

Elements of a Strategic Plan

Five elements comprise a strategic plan:

■ Define mission, vision, activities and values

■ Scan the environment using a SWOT analysis

■ Identify and prioritize strategic issues

■ Define strategic goals and objectives

■ Establish an implementation plan and schedule

8

V I S I O N

Even if your organization has a vision, missionand activities statement, it is helpful to gothrough several exercises that may either affirmthe exiting statements or provide a basis tomodify them.

To create the vision, board members shouldprovide answers to the following questions:

■ As a result of the work of the organization,how will the community or the lives of theorganization’s constituents be changed?

■ What will the community look like? How will its members interact?

■ How will the organization be perceived inthe community? What will be its image?When people describe the organization,what terms will they use?

Your vision will serve as the overall goal forwhich strategies will be developed to achieve.

Sample Vision Statement:Create a community in which all residents arehoused in safe and quality housing regardlessof their household income.

M I S S I O N

The mission describes the approach the organi-zation will take to achieve the vision. To articu-late your mission, board members shouldanswer the following questions:

■ What will the organization do to accomplishthe vision?

■ What types of services or products will theorganization provide (housing counseling,housing construction and rehabilitation,educational services, economic developmentservices, etc.)?

■ Who will be the primary beneficiaries of these activities?

Sample Mission Statement:Increase the amount of affordable housing andhome ownership in Ward 10, Washington, D.C.,and help those residents achieve better lives.

A C T I V I T I E S

The activities of the organization, whichdescribe what your organization will do toachieve its mission, should be summarized inone sentence. Board members should discussspecifically what business or activity their non-profit will use to reach its mission and why.

Sample Activities Statement:Develop affordable housing and other services,such as child care and job training, and helpresidents access our services.

V A L U E S

Values are your core beliefs and principles. Theydefine why you carry out your mission theway you do and help develop strategic objectivesand work plans. To define your organization’svalues, board members should answer thefollowing questions:

■ Why is it important for this organization tocarry out its activities?

■ In all of the organization’s activities, whatshould be the underlying principles thatcannot be compromised?

Sample Values Statement:Neighborhood residents must be involved inkey decisions affecting their lives.

In many organizations the vision, mission, activ-ities and values statements are integrated intoone comprehensive “mission statement.” Otherorganizations use a combination of two state-ments. If you decide to have one statement, itis important that all the elements of mission,vision, activities and values are included. It isequally important that this statement be clearlywritten and kept short and direct, since yourmission statement is listed in most of yourpublications and proposals.

After defining or affirming the vision, mission,activities and values, the next stage is identify-ing strategic issues. To accomplish this task, theb o a rd must look at conditions and trends inthe physical, social, economic and politicale n v i ronments that may have a positive or nega-t i ve impact on your organization’s ability toa c h i e ve the vision and carry out its mission.The board must also assess internal stre n g t h sand we a k n e s s e s .

This type of assessment is referred to in theindustry as a SWOT analysis. SWOT stands forstrengths, weaknesses, opportunities and threats.A SWOT analysis can consist of a combinationof individual interviews, surveys, focus groups,research of relevant socioeconomic trends, andan internal organizational assessment of theadministrative and program-related capacities of the organization. The methods used by theorganization to gather the information requiredfor the SWOT analysis will be based on thefinancial and human resources available.

The overall scope of the SWOT analysis will bebased on your mission. For example, a non-p rofit community development organizationwith the mission of developing affordable hous-ing might examine the external environment toidentify trends in federal or state housing pol-i c y, future funding availability for housing-related activities, in addition to local andregional housing market forecasts.

It might also examine trends in the constru c-tion industry re g a rding costs and building tech-nologies, capital market conditions and changesin bank lending practices, demographic andsocioeconomic trends, and future plannedactivities that may have a positive or negativeimpact on the condition of its target area orneighborhood. The overall goal of the SWOTanalysis is to identify factors or conditions towhich the organization can build strategicre s p o n s e s .

The internal analysis of the organization shouldreview and assess your organization’s capacityand performance in the areas of:

■ Administrative policies and procedures

■ Composition, capacity and performance ofthe board of directors

■ Staff capacity

■ Fund-raising capacity

■ Financial status

■ Financial management systems

■ Volunteer resources

■ Facilities

■ Program performance and effectiveness

■ Public image

In conducting the SWOT analysis, you maywish to approach all or a combination of thefollowing sources:

■ Clients and constituents

■ Community leaders

■ Private and public funding sources

■ Legislators, government officials and govern-ment agencies at the federal, state, county andlocal level

■ Local and regional planning agencies

■ Research departments of local universities

■ Local organizations engaged in similar activities

■ Advocacy or public interest groups focusingon related issues

■ Neighborhood institutions

■ Other key stakeholders

9

Scan the Environment Using a SWOT Analysis

In collecting information for the SWOT analy-sis, it is important that a consistent format beused, especially if multiple researchers and datacollectors are used. A consistent format mustalso be used for conducting interviews. Draft aset of interview questions for use by all theinterviewers who will be conducting individualor focus group sessions. Make the questionsopen-ended, such as:

What activities does the organization do especiallywell? How do you explain this?

What other needs of the customers are alreadyserved by the organization?

Are there other organizations or companies thatprovide even better service to our customers?

After collecting all the data from the varioussources contributing to the SWOT analysis,try to categorize or group the findings undersimilar themes such as:

■ Economic (status of and projected changes inlocal employment and other relevant markets)

■ Legal and political (the current and pro j e c t e dfuture climates)

■ Regional (important themes affecting the entire area)

■ Technological (current and future impact of technology)

■ Population (broad trends affecting the target market)

■ Competition (current and projected futurestatus of suppliers of similar products or services)

■ Social (current and projected local social fac-tors such as the presence of community gro u p sand the level of community cohesive n e s s )

■ Physical (current and projected factors impact-ing the built environment)

Further categorize the findings on populationunder such themes as:

■ Demographics (age, gender, race, religion andfamily size)

■ Needs, wants and interests (the specific con-sumer preferences of the target market)

■ Values and lifestyles (broader choices thatunderlie the specific consumer preferences)

■ Socioeconomic status (based on householdsize, income and wealth)

Within these categories, identify potentialopportunities and possible barriers to achievingthe organization’s mission.

There are several worksheets provided at the endof this manual to assist organizations in collect-ing and grouping the findings of the SWOTanalysis. An example of using these worksheets,along with the resulting strategic plan, is foundin the Case Study of Strategic Planning section.

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After all the data from the SWOT analysis havebeen gathered and categorized, the full board ofdirectors should convene to review the findings.Based on the identified opportunities andthreats, the board should decide which of theseconditions or situations are having the greatestimpact on its ability to fulfill the vision of theorganization and which opportunities must becapitalized upon immediately to achieve theorganizational vision.

To select strategic issues, the board should look atthe estimated cost of not dealing with identifiedstrategic issues in terms of financial resources orloss of public credibility and the ability of theorganization to successfully deal with each. Itshould also review the internal strengths of theorganization. Once established, the boardshould prioritize the identified strategic issuesto more efficiently allocate limited resources toaddressing the identified strategic issues.

Use the following ground rules in selectingstrategic issues:

■ Choose no more than five. Keep your listshort. There are countless issues that affectyour organization, but the more you have,the less you can focus on those that aremost important.

■ Select issues that you can affect. The lacko f income in your community may have as t rong impact on residents, but if your orga-nization does not create jobs or otherwiseimprove the local economic situation, lackof income is not your issue. Stick to whatyou can change, if change is needed, and berealistic in that assessment.

■ Donor interests are re l e vant, but not ove r-r i d i n g . Foundations, government agenciesand other donors have their own agendasa n d priorities. It is important to knoww h a t those are, but only as input into theo r g a n i z a t i o n’s decisions.

■ Each external issue will be mirrored inter-nally. Internal capacities are needed for exter-nal effect. Whether the external issue involvescommunication or program development, theinternal issues will be current capability andfuture resource allocation.

■ Come back to the mission. Each strategicissue should relate directly to the missionstatement of the organization. “ Op p o rt u n i t i e s”have the possibility of enhancing the organiza-tion’s ability to fulfill the mission, while“Threats” have the possibility of detractingfrom the organization’s ability to fulfillthe mission.

After identifying and prioritizing strategicissues, the full board of directors may wishto form strategic issue subcommittees toanalyze and further define each and developstrategic goals and objectives for the full boardto review and approve. These committees canconsist of board members, staff, constituentsand outside specialists.

1 1

Identify and Prioritize Strategic Issues

Strategic goals are the desired outcome ofaddressing strategic issues. Each strategic goalshould be a direct outcome of a strategic issue,each of which is directly related to the organi-zation’s mission statement.

Strategic objectives summarize the tasks andactivities that must be undertaken to achievea strategic goal. Where goals may be fairlygeneral, objectives are often quantifiable.

E x a m p l e :

A community development organization identi-fies the low home-ownership rate among arearesidents as a strategic issue preventing it fromachieving its vision of a vibrant, functioning andhealthy community. Its strategic goal?

To increase the home-ownership rate amonglow- and moderate-income residents in theneighborhood

The strategic objectives for the next fiscal yearrelated to this goal might be:

1. Enroll 150 families in home-ownershippreparation classes.

2. Rehabilitate 50 vacant dwellings for saleto low- and moderate-income households.

3. Construct 25 new homes and sell themto low- and moderate-income buyers.

Strategic goals and objectives can also be internally focused.

E x a m p l e :

An economic development organization identi-fies a limited capacity in the organization’s abilityto accurately track and report the long-termplacement rate of its clients in successful perma-nent employment opportunities. This organiza-tion sets as a strategic goal:

To upgrade the internal information manage-ment capacity of the organization

The objectives created relating to this strategicgoal are:

1. Upgrade existing equipment or acquire new equipment to increase case management capacity.

2. Hire staff to manage management informa-tion system functions and train staff in theoperation of new technology.

3. Develop internal systems and proceduresto produce regular reports to the board,funding sources and other contacts.

Strategic objectives can lead to the creation ofwork plans to describe tasks in more detail. Theend result should be achieving the strategicobjective. Detailed work plans should be createdby staff and, if necessary, reviewed by the board.

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Define Strategic Goals and Objectives

The final element of the strategic plan is theimplementation and monitoring schedule. Thisshould describe the parties responsible for com-pleting the tasks related to the strategic objec-tives and provide a timetable for completion.The implementation plan should describe theresources required to achieve the objectives,identifying existing organizational resources tobe allocated. Strategies to obtain additionalrequired resources should also be described.

Establish a schedule to periodically monitor andevaluate the progress of the organization inimplementing the various strategic objectives. Ifinternal or external conditions have changed, itmay be necessary to revisit the planning processand assess the validity of the strategic goals and objectives.

See the Case Study of Strategic Planning sectionfor examples.

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Establish an Implementation and Monitoring Schedule

The strategic plan is primarily an internaldocument to be used for guidance and eva l u a-tion; howe ve r, many funding sources re q u i reorganizations to submit them. T h e re f o re ,attention should be given to the pre s e n t a t i o nof the strategic plan. A we l l - o r g a n i zed planw i l l enable the reader to find and understandits most important elements. W h e n e ver possi-ble, avoid the use of industry-based jargona n d describe acronyms that might confuse layreaders and future generations of leadershipwho may re v i ew it.

Before distribution, be sure your strategic plan includes:

■ Cover Page

Make sure your cover page contains:

– The name of the organization, division or program that is the focus of the plan

– The words “strategic plan” in the title

– The date the plan was completed or revised

■ Executive Summary

No more than two pages, this section shouldbriefly describe:

– The most important elements of the plan

– Its purpose

– Its projected implementation period

It should also list the strategic goals and high-light the objectives.

■ Table of Contents

Some readers may only be interested in certainsections. Number each page and make sure thetable of contents is accurate.

■ Attachments

Review the plan’s attachments and make surethey are numbered or lettered and properlysequenced as they are referenced in the text.

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Plan Presentation

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Sunrise Valley is a large neighborhood in alarge city. Located close to downtown, it wasonce a vibrant African-American community,with doctors, teachers and laborers makingup a close-knit, family-driven fabric.

The past decades were not kind to SunriseValley. Good factory jobs were lost, higher-income families moved to the suburbs anddeteriorated housing became the norm ratherthan the exception.

The memory for what had been in SunriseValley helped to inspire a strong effort to turnthings around. A new and visionary mayor,himself a former resident of the area, joinedwith a large, progressive foundation and neigh-borhood residents to build a new community.Community Partnership (CP) was the organiza-tion founded to lead this effort.

Three years after its inception, the CP boarddetermined that it was not achieving its agenda.It contracted with a technical assistance agency,Help Inc., to gather information for a SWOTanalysis and to lead the board in strategic plan-ning sessions.

The results of these efforts follow.

Case Study of Strategic Planning

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The information needed for strategic planning comes from five sources: community residents,CP board members, CP staff, donors and political supporters of the organization, and expertswith information on social statistics (such as the health of infants born in Sunrise Valley).

SELECTING INFORMATION-GATHERING METHODS

Case StudySWOT Analysis Worksheets

Method

IndividualInterviews

Small GroupInterviews

Written Surveys

External Research

InternalResearch

# of PeopleInterviewed orSurveyed

31 — key staff,all board mem-bers, key foun-dation donors

6 — each work divisioninterviewed as a group

100 — community residents

3 — communityhealth, crimeand job experts

None

Topic or IssueAreas forResearch

All SWOT topics

Internal c o m m u n i c a t i o n /c o o r d i n a t i o n ,setting and monitoring goals

CP communica-tion, residentgoals

Social indices

Who WillDo It?

Help Inc.

Help Inc.

Help Inc.

Help Inc.

Date to BeCompleted By

April 15

March 31

March 1

March 1

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Rank: 5=very good; 3=satisfactory; 1=poor

Admin. Policies and Procedures

Governance

Programs and Services

Fund Raising

Financial

Staffing

Volunteers

Image

Facility

Planning

Evaluation

Resident Participation

1

X

X

X

2

X

X

X

X

3

X

X

X

4

X

5

X

INTERNAL STRENGTHS AND WEAKNESSES ANALYSIS

Summarize the results of your internal SWOT analysis on this worksheet. You should include bothinternal and external perspectives where appropriate.

CP successfully garners funding and political support, but it fails to deliver the fruits of that sponsor-ship. The organization successfully attracts residents to volunteer in its social programs, but it doesnot plan for or monitor the achievements of these programs. Nor does it assess its efforts in leading a broader effort for social change. The community views CP as being directed by its donors, account-ing for the poor marks in a key area: resident participation.

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ENVIRONMENTAL SCAN — TRENDS

Using the information gathered in the SWOT analysis, summarize the trends affecting your organization’s general environment in each category below.

Economic

Legal and Political

Regional

Technological

Demographic

Competitive

Social

Physical

Trends

Area continues to decline economically: few retail storesremain, unemployment is high

Still strong local and regional political support

Regional economy strong

Neighborhood has just begun to have moderncommunications capacities

Population is declining, but more working people are livinghere because of newly built housing

Other neighborhoods resent political and funding focus onSunrise Valley and have begun making their resentment known

Strong neighborhood identity and numerous local volunteergroups such as PTAs, churches, clubs and civic organizations

Deteriorating infrastructure; vacant businesses and residencesattract vandals and crime; aging buildings are expensive tomaintain or renovate

The population in Sunrise Valley is still very poor, but there has been a recent addition of work-ing class home owners in a newly built part of the community. Competition for funding andpolitical support is heightened, as other neighborhoods in the city want the funds that SunriseValley receives as a matter of course.

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Economic

Legal and Political

Regional

Technological

Demographic

Competitive

Social

Physical

Opportunities

Strong regional economycreates jobs

Current political supportenables CP to move forward

n/a

A wired community communicates better

Newer population bringsstability to Sunrise Valley

n/a

Strong sense of neighborhood

Historic architecture

Threats

Lack of resident control; loss of political support to other neighborhoods

Needs of current populationmay overwhelm organization

Decaying vacant buildingsattract vandals, drug activity,and discourage investment

ENVIRONMENTAL SCAN — OPPORTUNITIES AND THREATS

Using the information gathered in the SWOT analysis and the trends on the previous page,summarize the opportunities and threats presented by your organization’s general environmentin each category below.

Lack of strong resident involvement in decision making threatens to impair CP’s efforts — andto dissolve funding and political support. New home owners are an opportunity to breathe freshlife into the organization, but the need of the current population for social programs continuesto divert CP from achieving its goals.

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TARGET POPULATION TRENDS

Using the information gathered in the SWOT analysis, summarize the trends affecting clients, fund-ing sources, and community and regional stakeholders in each category below.

Demographic(Race, Ethnicity)

Needs, Wants

Values, Lifestyles

Socioeconomic Status

Clients

African-Americans

Better opportuni-ties, strongercommunity; self-sufficiency

Less crime, more jobs, more playgrounds

Lower income, with an increase in working households

Donors

Examples of success

Communicationsand children’s issues

Communityand RegionalStakeholders

Sunrise Valley tobe a model forother communities

Sunrise Valley residents are clear in what they want for the community: better housing, more gardensand playgrounds, and less crime. Donors and other outside stakeholders want CP to present andimplement a model for comprehensive community development.

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Demographic (Race, Ethnicity)

Needs, Wants

Values, Lifestyles


Opportunities

Community strongly identifies itself as an African-American community

Community wants more con-trol; donors want results

Churches, neighborhood associ-ations, parents can be morebroadly involved

Increased income revenue forthe community

Threats

CP not relevant to earlier vision

CP operating programs that do not lead to self-sufficiency

Problems of populationtoo large to solve

TARGET POPULATION — OPPORTUNITIES AND THREATS

Using the information gathered in the SWOT analysis and the trends, summarize the opportuni-ties and threats affecting your organization’s clients, funding sources, and community and regionalstakeholders under the categories below.

The overriding threat to CP is that it is no longer relevant to the vision of positive communitychange shared by community residents. CP is operating social programs — certainly not a bad thing,but not what the organization was expected to do — and not managing them well. In addition, theorganization is threatened by the perceived lack of resident control, which can lead to lessened donorand political support.

On a more positive note, there are many informal and formal associations and organizations inSunrise Valley — from pare n t s’ groups to churches — that might be willing to work with CP inachieving the re s i d e n t s’ vision of community deve l o p m e n t .

2 2

GOALS AND OBJECTIVES

Summarize the results of the strategic planning sessions by listing organizational goals and cor-responding objectives. Clearly differentiate between internal goals (for example, strong fiscalmanagement or a more diverse board of directors) and external goals (for example, developingmore affordable rental housing or providing job opportunities for neighborhood residents).

Goals

Internal Goal 1More resident involvement in governance

Internal Goal 2Monitor CP’s implementation of strategic plan

External Goal 1Communicate to residents

External Goal 2Provide training for residents

Objectives

Objective 1 Put more residents on board.

Objective 2 Create advisory board for nonresidents.

Objective 1 Create benchmarks.

Objective 2 Survey residents.

Objective 3 Produce annual reports.

Objective 1 Establish computer-based technology.

Objective 2 Collect and distribute relevant informationto residents.

Objective 3 Prioritize communication within daily activities.

Objective 1 Find local experts.

Objective 2 Schedule and implement training withlocal experts.

Objective 3 Train residents as trainers.

2 3

Objective

More residents on board

Advisorycommittee forstakeholders

Task

Create boardnominating committee

Gather list ofpotential boardmembers

Contact potentialm e m b e r s

Interview poten-tial members

Recommend can-didates to board

Select new boardmembers

Create advisorycommittee

Select potentialmembers

Contact potentialmembers

Select advisorycommittee members

W h o s eR e s p o n s i b i l i t y ?

Board chair

Nominating com-mittee




Board

Board

Executive committee

Executive committee

Board

Timeline

Next meeting:July 13

Within two weeksof board meet-ing: July 13–27

July 27–31

August 1–12

August 14: board meeting

August 14

July 13

July 20

July 21–August 10

August 14

ResourceAllocation

IMPLEMENTATION AND MONITORING SCHEDULE

Define specific tasks for each objective developed in the strategic planning process. For eachtask, list the responsible persons, expected start and finish dates, amount of funds, volunteer per-sonnel and other resources allocated to the task.

These two objectives are best achieved within a tight time frame. The board chair created a nom-inating committee, charged with selecting and interv i ewing potential resident board membersand recommending people for inclusion to the full board. CP’s exe c u t i ve committee acted asnominating committee for a new advisory board .

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The board’s strategic planning committee, assisted by a professional facilitator, evaluated the informa-tion gathered through the SWOT analysis. The committee defined its mission, goals and objectivesduring three working sessions. The resulting plan was written up and approved by the committee andpresented to and approved by the board.

Because CP was an organization that represented the entire Sunrise Valley community, the boarddecided to present the plan at an open meeting in the neighborhood. A preamble was added to theplan, showing the context of the plan to community residents.

Strategic Plan

Sample Strategic Plan

COMMUNITY PARTNERSHIP STRATEGIC PLAN

P r e a m b l e

Community Partnership (CP) was created in 1994 to help the Sunrise Valley neighbor-hood implement its vision for community change.

Over the years CP lost its focus. The organization drifted into operating social service pro-grams — doing for the residents rather than helping them do for themselves.

CP’s board of directors, comprised primarily of residents, unanimously thinks the organi-zation needs to change. Community change can happen in Sunrise Valley and CP shouldplay a useful role in the transformation — but only if it is community-led, community-driven and community-focused.

CP’s board adopted a three-year strategic plan as its road map for assisting in the transfor-mation of Sunrise Valley.

M i s s i o n

Community Partnership (CP), in equal partnership with the residents of Sunrise Valley,seeks to effect a positive transformation — intellectually, emotionally, spiritually and eco-nomically — for all residents and the entire community.

In order to accomplish this, CP will become:

■ A community-led, service-oriented, professionally operated organization

■ An efficient information and resource clearinghouse

■ Sensitive to the difficulty of change for individuals and the community as a whole

■ A conduit for connecting community residents to quality information and instructionon topics that can build stronger people and a stronger community

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Goals and Objectives

Currently CP is largely a manager of social service programs. That will not be its focusin the future. CP intends to return to its original role as a catalystin building capacitywithin the community. The new CP will have four primary functions:

■ Collecting and distributing timely, re l e va n t information on re s o u rces available to the com-m u n i t y. (The CP board envisions that information will be gathered and provided thro u g han efficient and community-re s p o n s i ve use of sophisticated communications technology. )

■ Teaching, training and arranging for training of subjects that will re s t o re the fabric of thec o m m u n i t y, empowering residents to achieve enhanced mental and physical health andeliminate the scourges of drugs and crime. The primary topics for training to address are :

– Citizenship and participation in the community

– Leadership development

– Effective parenting

– Accessing resources that may increase individual and community income, wealth,skills, opportunities and choices

CP will respond to community demand for training and teaching in other specific topicsthat contribute to a stronger community.

CP’s approach in providing and arranging for teaching and training includes:

– First, using quality trainers and teachers available already in Sunrise Valley

– Second,finding quality trainers and teachers outside the community

– Simultaneously,training community residents on how to instruct, so they can sharetheir knowledge and wisdom with other residents

– Last, training and teaching by CP staff only when other resources are not available ordo not match community demand

■ Monitoring the performance of agencies, including CP, in achieving measurable goals,sharing results with the community and recommending appropriate corrections:

– CP’s monitoring will include annual reappraisals of this three-year strategic plan.

– CP will create measurable benchmarks for its own performance, and will assist otheragencies in establishing clear benchmarks of performance.

– CP will survey and solicit feedback from program participants.

■ Updating community planning, so that:

– The community and other partners in the transformation of Sunrise Valley have inputand control over their destiny.

– The community and other partners understand their roles and responsibilities withinthe broader picture.

– Benchmarks can be established to measure progress and adjust agency, partner andcommunity plans.

2 6

C o m m u n i c a t i o n s

CP will actively seek to increase positive communications with all of its partners in trans-forming the Sunrise Valley community, including residents, by:

■ Prioritizing communications as part of its daily operations — communications fromCP about resource availability and progress in achieving community-based goals andcommunications to CP about resident needs and partner plans and activities

G o v e r n a n c e

CP will change its governance structure to better incorporate the views and interests of allstakeholders in the transformation of the community by:

■ Changing its board composition to include staff and residents throughout the community

■ Creating an advisory board of partners

Program Criteria

CP does not seek to become a permanent institution within Sunrise Valley; rather, CP’sultimate success can be measured by whether the organization has helped to empower theSunrise Valley community and its residents to achieve their individual and communitygoals without CP or other institutions.

C o r re s p o n d i n g l y, CP will not seek to operate a program unless it meets the following criteria:

■ The program fills an unmet need within the community.

■ The program promotes self-sufficiency among the participants.

■ The program is or can become fiscally self-sufficient.

■ CP provides a better operational, fiscal and philosophical fit for the program than anyother community-based institution.

■ The operations and fiscal realities of the program can be accommodated by CP.

■ The program is aligned with CP’s strategic plan.

■ The program has a strong monitoring and evaluation component.

CP staff and board will use these criteria to assess current programs and any newprograms that may be available for the Sunrise Valley community.

SELECTING INFORMATION-GATHERING METHODS

2 7

Method

Individual Interviews

Small Group Interviews

Written Surveys

External Research

Internal Research

Strategic PlanningSWOT Analysis Worksheets

# of PeopleInterviewed or Surveyed

Topic or Issue Areas for Research

Who Will Do It?

Date To BeCompleted By

© 1999, The Enterprise Foundation, Inc.

Summarize the results of your internal SWOT analysis on this worksheet. You should include bothinternal and external perspectives where appropriate.

2 8

INTERNAL STRENGTHS AND WEAKNESSES ANALYSIS

Rank: 5=very good; 3=satisfactory; 1=poor

Admin. Policies and Procedures

Governance

Programs and Services

Fund Raising

Financial

Staffing

Volunteers

Image

Facility

Planning

Evaluation

1 2 3 4 5


2 9

Economic

Legal and Political

Regional

Technological

Demographic

Competitive

Social

Physical

Trends

ENVIRONMENTAL SCAN — TRENDS

Using the information gathered in the SWOT analysis, summarize the trends affecting your organization’s general environment in each category below.


3 0

Economic

Legal and Political

Regional

Technological

Demographic

Competitive

Social

Physical

Opportunities Threats

ENVIRONMENTAL SCAN — OPPORTUNITIES AND THREATS

Using the information gathered in the SWOT analysis and the trends on the previous page,summarize the opportunities and threats presented by your organization’s general environmentin each category below.


3 1


Needs, Wants

Values, Lifestyles


Clients Donors

Communityand RegionalStakeholders

TARGET POPULATION TRENDS

Using the information gathered in the SWOT analysis, summarize the trends affecting clients,funding sources, and community and regional stakeholders in each category below.


TARGET POPULATION — OPPORTUNITIES AND THREATS

Using the information gathered in the SWOT analysis and the trends, summarize the opport u n i t i e sand threats affecting your organization’s clients, funding sources, and community and regional stake-holders in each category below.

3 2


Needs, Wants

Values, Lifestyles


Opportunities Threats


3 3

Goals

Internal Goal 1

Internal Goal 2

External Goal 1

External Goal 2

Objectives

Objective 1

Objective 2

Objective 3

Objective 1

Objective 2

Objective 3

Objective 1

Objective 2

Objective 3

Objective 1

Objective 2

Objective 3

GOALS AND OBJECTIVES

Summarize the results of the strategic planning sessions by listing organizational goals and thecorresponding objectives. Clearly differentiate between internal goals (for example, strong fiscalmanagement or a more diverse board of directors) and external goals (for example, developingmore affordable rental housing or providing job opportunities for neighborhood residents).


3 4

Objective TaskW h o s eR e s p o n s i b i l i t y ? Timeline

ResourceAllocation

IMPLEMENTATION AND MONITORING SCHEDULE

Define specific tasks for each objective developed in the strategic planning process. For eachtask, list the responsible persons, expected start and finish dates, amount of funds, vo l u n t e e rpersonnel and other re s o u rces allocated to the task.


3 5

Notes

3 6

Notes

THE ENTERPRISE FOUNDATIONThe Foundation’s mission is to see that all low-income people in the United States have accessto fit and affordable housing and an opport u n i t yto move out of poverty and into the mainstreamof American life. To achieve that mission, westrive to:

■ Build a national community revitalization movement.

■ Demonstrate what is possible in low-income communities.

■ Communicate and advocate what works in community development.

As the nation’s leader in community d e ve l o p m e n t ,Enterprise cultivates, collects and disseminatesexpertise and re s o u rces to help communitiesa c ross America successfully improve the qualityof life for low-income people.

A C K N O W L E D G M E N T SAuthors: Paul Yelder, The EnterpriseFoundation; Mike Burns, Brody & WeiserContributors: Bill Batko, Carter Cosgrove +Company, Ben Hecht, Catherine Hyde, Jane Usero

SPECIAL THANKSResearch and development of this manual wasmade possible by the National CommunityDevelopment Initiative, which is a consortiumof 15 major national corporations and founda-tions and the U.S. De p a rtment of Housing andUrban De velopment, and score s of public andprivate organizations. NCDI was created tosupport and sustain the efforts of communitydevelopment organizations.

FOR MORE INFORMATIONThe Enterprise Foundation10227 Wincopin Circle, Suite 500Columbia, Maryland 21044-3400

tel: 410.964.1230fax: 410.964.1918email: [email protected]

For more information about The EnterpriseFoundation or the Community DevelopmentL i b r a r y™, visit us at w w w . e n t e r p r i s e f o u n d a t i o n . o r g .To review our online community magazine, checkout w w w . h o r i z o n m a g . c o m .

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