Penn State Strategic planning is dead...

11/25/2015

1

Create an “Agenda of Work” for Transformational Change Instead

Jacqui Catrabone, Director Nonprofit & Community Services

Strategy Solutions, Inc.

Objectives

• Determine if strategic planning is (or was ever)

alive and well

– Assess the effectiveness of your organization’s

strategic planning and organizational development

process

– Identify the barriers to effective planning and

organizational development

• Identify strategies to create an “agenda of

work” for transformational change (and

sustainability!)

11/25/2015

2

Wealth Creating

Companies

Government

Workforce Development

(including Education)

Economic DevelopmentCommunity and

Faith Based Nonprofits

Healthcare

About Strategy Solutions

Mission: To create healthy communities

Healthy Organizations

Product Development

Manufacturing or

Service Delivery

Financial Management

Access to Capital

Fundraising

Marketing

IT / HR

Back Office Operations

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Our Approach: Connect Vision to “Results”

1. Assess the gap between where you are and

where you want to be

2. Fill gaps immediately through best practice

role modeling

3. Align the organization from “top to bottom”

Strategy Solutions’ Planning Process

Is Strategic Planning Really Dead?

11/25/2015

4

Organizational Self

Assessment:

How effective is your

strategic planning

and organizational

development

process?

Critical Success Factor for Sustainability

“We must challenge our assumptions about

what we believe we think we know.”

Debra Thompson

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5

How do you do planning?

Today’s (Ineffective) Planning Model

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The Classic Concept of Strategy:

Matching the organization to the environment

ORGANIZATION

STRATEGYBUSINESS

ENVIRONMENT

Source: Camillus, 2010, 2012

The Problem with SWOT Analysis

Internal

Context

Strengths

Weaknesses

Opportunities

Threats

External

Environment

Top

Management’s

Values

STRATEGY

Stakeholders’

Priorities

Source:

Kenneth Andrews, The Concept of corporate Strategy, Dow Jones-Irwin, 1971

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7

Planning Challenges

Why do plans fail?

Are

are

Economic

Development

Organizations

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©Strategy Solutions, 2011

The Non-Profit Organizational Lifecycle Model

Start-Up

Begin

Grow

Sustain

Decline

Dissolve

Renew

Adole

scen

t

Mature

Stagnant

Adapted from: Navigating the Organizational Lifecycle

by Paul Connolly

1

2

3

4

5

Many are here

6

7

8

What does it take

(really?) to get to

the next “level?”

Why Plans Fail(based on our experience)

• Lack of understanding of what it takes to “get to the next level”

• Implementation plan unrealistic or non-existent

• Investment, return on investment and impact not quantified; no case for support articulated so fundraising is hard or non-existent

• Lack of buy in/alignment (board, staff, funders, stakeholders)

• Lack of capacity and technical skill (capability), most often project management and dealing with the naysayers

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Why Plans Fail

(based on our experience)

• Blaming one or more individuals for lack of

performance without recognizing the root

cause “systems” issues that impact

performance

• Inability to admit that one or more of the

above is a problem and getting help to work

through it

Board’s Role in Planning and Oversight

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Key Strategic Question(s):

• How do you (really) improve the economic development “system”?

• How do you get the “players” in the system to work together more effectively?

• How do you put (more) resources into creating the environment for private sector investment and wealth creation?

• Do you have the “capacity” to lead/facilitate this process?

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4 Components of Capacity

Source: Navigating the Organizational Lifecycle: A Capacity-Building Guide for Nonprofit Leaders by Paul Connolly

Adaptive

ManagementLeadership

Technical

Ensure the effective

and efficient use of

organizational

resources.

The ability of leadership

and staff and to inspire,

prioritize, make

decisions, provide

directions and innovate.

The ability to implement all

of the key organizational

functions and deliver

products and services.

The ability to

monitor, assess,

respond to and

stimulate internal

and external

changes

Technical Capacities

1. Product Development Planning

2. Outreach and Advocacy

3. Program Operations

4. Outcomes/Impact Measurement, Management AND Program Evaluation

5. Earned Income Generation

6. Compliance/Quality

7. Information Technology

8. Finance (including access to capital)

9. Accounting (including process cost accounting)

10. Fundraising

11. Legal

12. Facilities

13. Marketing and Communications

14. Human Resources

15. Other(s)…..

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• The most significant challenge today is that training

and capacity building alone (and gap filling

consulting projects) are not going to be sufficient

for the nonprofits to address these technical needs.

• All nonprofits need to build capacity in EACH of

these areas on an ongoing basis to be sustainable.

Limitation of Technical Capacities

Think about it…How sustainable is your business model?

• If a $475 million health system does not have the required

technical capacity and purchasing power to generate enough

cash for strategic investment on its own without affiliating

with a UPMC (or equivalent), then how does the small-

medium sized nonprofit have a sustainable business model?

• Most companies struggle with technical capacity items 6-15

and don’t even begin to address items 1-5. How does a small

to medium sized nonprofit perform the more sophisticated

technical competencies when they struggle to do the basics?

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So what do we do?

• More often than not, it’s the “process gaps” and/or

“skill gaps” in how the organization operates that are

the barriers to strategic effectiveness

• Your strategic effectiveness will increase if you

identify the gaps and address them

Think about it….

• What is so attractive about UPMC? (5 things)

– Cost savings from the joint purchasing power

– Standardization of best practices within programs (management systems that decrease cost and improve quality/outcomes)

– Cost savings derived from consolidating back office operations and the technical competency areas that are expensive to replicate in every individual place

– Access to specialists (program and technical experts) and capital ($$)

– 80% of something is better than 100% of nothing (if the alternative is going out of business)

• Key strategic question:

– How do we build a “collaborative” corporate support model that allows our nonprofit programs to retain their individual “brand identity” (such as Pepsi, Pizza Hut, Taco Bell and KFC) but allows them to benefit from cost savings, strong back office operations and technical expertise?

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Greater Autonomy Greater IntegrationPro

gra

mA

dm

inis

tra

tio

n

Administrative Consolidation

Joint Programming

� Single focus or program

� Multi-focus or program

� Integrated system

� Contracting for services

� Exchanging services

� Sharing services� Information sharing

� Program coordination

� Joint planning

Collaboration

Management Services

Organization

Parent/Subsidiary

Corporation

Corporate Merger/

Acquisition

Joint Venture

Corporation

The Partnership Matrix

Collaboration

Change in Corporate Structure

Collaboration Strategic Alliance Corporate Integration

Strategic Restructuring

Contract or MOU

� No permanent organizational commitment

� Decision-making power remains w/

individual organizations

� Involves a commitment for the future

� Decision-making power is shared or transferred

� Is agreement-driven

� Involves changes to corporate control

and/or structure, including creation and/or

dissolution of one or more organizations

27

SCENARIO

ANALYSIS

BOARD AND

ORGANIZATOINAL

ALIGNMENT

©Strategy Solutions, 2012

Our new model: better, and helping organizations continue to evolve …..

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Overview of the Strategic Development Process

ASSESSMENT OUTCOMES IMPLEMENTATION REVIEW

WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

VISION MISSION

IDENTIFY

MARKET

NEEDS

IDENTIFY

OUR

CAPABILITIES

STRENGTHS

AND

WEAKNESSES

OPPORTUNITIES

AND

THREATS

COMPETITIVE

ANALYSIS

GOV’T OR

POLICY

CHANGES

DEBT

CAPACITY

IDENTIFY

CURRENT

RESOURCES

PRIORITY

ISSUES

Needs Assessment: Finding the Gaps

• Operations Review

• Industry Analysis

• Demographic Analysis

• Community Needs Assessment Survey

• Stakeholder Interviews• Stakeholder Forums/Focus Groups

• Best Practice/Benchmarking Research

“The most basic of all human needs is the need to understand and be understood.

The best way to understand people is to listen to them.“ ~Ralph Nichols

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Strategic Profile

Defining the Vision• Driving force - MISSION

• Business concept - “What business are we in?”

• Competitive strategy

• Future product scope

• Future market scope

• Future client scope

• Size/growth guidelines

• Return/profit guidelines

• Timeframes

Source: Strategy Pure & Simple by Michel Robert

Product 1

20%

Product 2

8%

Product 3

10%

Service 1

60%

Service 2

2%

What does your organization look like?

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Product 1

20%

Service 2

20%

Service 1

20%Product 3

20%

Product 2

20%

What do you want your organization to

look like in the future?

How do you get from

Product 1

20%

Product 2

8%

Product 3

10%

Service 1

60%

Service 2

2%

Product 1

20%

Service 2

20%

Service 1

20%Product 3

20%

Product 2

20%

HERE

TO

HERE ?

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18

Ask Yourself the Following:1. Does your company have one or more goals or

initiatives that didn’t get accomplished or

meet your expectations over the last year?

2. Are you or others frustrated because you

“can’t get to” certain things that are critically

important to the sustainability of your

organization or “you can’t afford it?”

3. Are you or others frustrated

because you never seem to deal

with “the elephant in the room?”

Strategies to Increase Effectiveness

• Create an environment where staff and board

members can be honest about individual and

collective performance without excuses,

defensiveness, or fear of retribution so they can

work through issues to resolve problems without

“taking their marbles and going home.”

• Ask questions; listen, understand

and articulate the vision locked

inside people’s heads.

11/25/2015

19



WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

VISION MISSION

DEVELOP

GOALSIDENTIFY

COMMUNITY

NEEDS

IDENTIFY

OUR

CAPABILITIES

OBJECTIVES

STRENGTHS

AND

WEAKNESSES

OPPORTUNITIES

AND

THREATS

PROGRAM

POSSIBILITIES

ANYONE ELSE

WORKING ON

THIS

GOV’T OR

POLICY

CHANGES

DEBT

CAPACITY

IDENTIFY

CURRENT

RESOURCES

PRIORITY

ISSUES

STRATEGIC PLANNING

GOAL 1:

This Year: A.

GOAL 2:

This Year: A.

GOAL 3:

This Year: A. .

GOAL 4:

A.

GOAL 5:

A.

Strategic Plan

Goals & Objectives

(FY)VisionMission

11/25/2015

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WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

VISION MISSION

DEVELOP

GOALS

ORGANIZATIONAL

STRATEGIES

IDENTIFY

COMMUNITY

NEEDS

IDENTIFY

OUR

CAPABILITIES

OBJECTIVES

FUNDING

STRATEGIES

STRENGTHS

AND

WEAKNESSES

OPPORTUNITIES

AND

THREATS

PROGRAM

POSSIBILITIES

ANYONE ELSE

WORKING ON

THIS

GOV’T OR

POLICY

CHANGES

DEBT

CAPACITY

IDENTIFY

CURRENT

RESOURCES

PRIORITY

ISSUES

STRATEGIC PLANNING

SCENARIO

ANALYSIS

Scenario Scenario A

Best Case

Scenario B Scenario C Scenario D

Worst Case

Planning

Elements

• • • •

Scenarios as a Response

11/25/2015

21

Operationalizing the Plan

• Identify & discuss key objectives & program

possibilities

• Make assignments to research & create “models”

– Human, capital & operating resources required to

implement

– Identify expected outcomes

– What is your “capacity” to implement the plan?

– What level of resources are required for the organization

to be “sustainable”?

• Come back together & prioritize


• Translate vision into action by identifying specific

human, capital and operating resources required

to achieve tangible outcomes

– Provide assistance to staff members who don’t know

how to do this (many don’t!)

• Financial Planning Process should include:• Cash Flow Forecasting

• Cost/benefit and return on investment analysis

• “Tradeoff” analysis

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The full plan (still) looks like this…

Goal 1:

OBJECTIVE ACTION STEPS ACCOUNTABILITY BUDGET TIMEFRAME

A. •

B. •

C. •

It is the “map” that we navigate “from” so it

must continuously change and evolve



WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

VISION MISSION

DEVELOP

GOALS

ORGANIZTIONAL

STRATEGIES

DELEGATED

OBJECTIVES

IDENTIFY

COMMUNITY

NEEDS

IDENTIFY

OUR

CAPABILITIES

OBJECTIVES

FUNDING

STRATEGIES

DEFINED

ACTION PLANS

STRENGTHS

AND

WEAKNESSES

OPPORTUNITIES

AND

THREATS

PROGRAM

POSSIBILITIES

ANYONE ELSE

WORKING ON

THIS

GOV’T OR

POLICY

CHANGES

DEBT

CAPACITY

IDENTIFY

CURRENT

RESOURCES

PRIORITY

ISSUES

STRATEGIC PLANNING

IMPLEMENTATION

MANAGEMENT

SCENARIO

ANALYSIS

BOARD AND

ORGANIZATOINAL

ALIGNMENT

11/25/2015

23


• Sequence strategic investments;

develop a case for support for

investment through cost/benefit

analysis and seek needed

(working capital) resources.

• If your organization does not have

a sustainable business model,

admit it! (and look for ways to

collaborate)



WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

VISION MISSION

DEVELOP

GOALS

ORGANIZTIONAL

STRATEGIES

DELEGATED

OBJECTIVES

MEASURESIDENTIFY

COMMUNITY

NEEDS

IDENTIFY

OUR

CAPABILITIES

OBJECTIVES

FUNDING

STRATEGIES

DEFINED

ACTION PLANS

REWARDS

&

RECOGNITION

STRENGTHS

AND

WEAKNESSES

OPPORTUNITIES

AND

THREATS

PROGRAM

POSSIBILITIES

ANYONE ELSE

WORKING ON

THIS

GOV’T OR

POLICY

CHANGES

DEBT

CAPACITY

IDENTIFY

CURRENT

RESOURCES

PRIORITY

ISSUES

OUTCOMES

AND

TRACKING

IMPLEMENTATION

MANAGEMENTSTRATEGIC PLANNING

BOARD AND

ORGANIZATOINAL

ALIGNMENT

11/25/2015

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Monitoring & Review

• Establish 10-12 “global”

measures (indicators) of

success

• Determine how you will

track the indicators &

within what timeframe

• Discuss how you will

monitor (quarterly) and

celebrate (reward) the

results you will achieve

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How to get there from here….

Critical Success Factors (to achieve results)

Effective Planning Includes:

• Identify and address “immunity to change”

• Facilitate “innovation”

• Vet concerns and challenge assumptions

• Create “alignment” (particularly with your

board)

• Include “succession planning"

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The biggest error leaders make is

when they try to solve adaptive

problems with technical solutions.

Ronald Reiftz

Address Immunity to Change:

• Meeting adaptive challenges requires:

• An adaptive formulation of the problem

–Revealing the emotional ecology underlying

the challenge

• An adaptive solution

–We ourselves need to adapt in some way

Uncovering

Immunity to Change

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Maybe it’s not you,

but….

• It’s something that you

don’t know you don’t

know that you COULD do

something about if you

were aware of it

• Many of us have “blind

spots in our leadership

styles

• Every immune system is an intelligent force

that seeks to protect you, even save your life.

• Most people deal constantly with fear; you

don’t feel it because you are dealing with it

• Immune systems create “blind spots” that

prevent learning and constrain action

Ecology of

an Immune System

11/25/2015

28

Have you read this book?

Innovation’s Missing Link

Ongoing Operations

Strategy

Organizing

&

Planning

Execution

Innovation

Committing to an Innovative Idea

Making Innovation Happen

The need

to reassess

organizing

and

planning is

often

overlooked

Source: The Other Side of innovation by:

Vijay Govindarajan and Chris Trimble

You can’t ask the group

that is in charge of

today to also be in

charge of tomorrow,

because the urgent

always squeezes out

the important.

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29

Organizing an Innovation Initiative

Performance Engine

Shared

StaffPartnership

Dedicated

Team

Project team = Dedicated Team + Shared Staff

The Dedicated Team is custom-built for the initiative.

The shared staff retains its existing responsibilities and supports the initiative.



• Divide the labor: decide how responsibilities for executing the initiative will be split between the Dedicated /Team and the Shared Staff.

• Assemble the dedicated team: Determine who will serve on the Dedicated Team and how to define their roles and responsibilities.

• Manage the partnership: Establish clear expectations for each partner and mediate the inevitable conflicts that will arise between the dedicated team and shared staff.

Steps for Building the Project Team



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Encourage Vetting Concerns

• It is important to

voice all concerns

and address them

• Don’t let concerns

stop the process,

especially those that

are rooted in false

assumptions

Create “Alignment”

• Develop an

“agenda of work”

for your board and

its committees that

align with and

provide support for

key strategic

investments

11/25/2015

31

PossibleBoard Organization Chart

Economic Development Organization

BOARD OFDIRECTORS

EXECUTIVE

COMMITTEEFINANCE

COMMITTEE

“PROGRAM”

COMMITTEES

MEMBERSHIP/

DEVELOPMENT

COMMITTEE

GOVERNANCECOMMITTEE

Sites (Monthly)

Loan Review (Monthly)

Recruitment/new industry development (as needed)

Retention /local industry development (as needed)

Government relations (Monthly)

Monthly Meetings

Monthly CEO

Support

Meetings

Quarterly

Meetings

Monthly

Meetings

Monthly

Meetings

Governance Committee

1. Help create board roles and responsibilities

2. Pay attention to board composition

3. Encourage board development

4. Assess board effectiveness

5. Prepare board leadership

6. Review and Revise bylaws as necessary

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32

Executive Committee

1. Perform policy work

2. Act as liaison to the chief executive

3. Help develop a strategic plan

4. Conduct executive searches

5. Handle urgent issues

6. Ensure an annual agenda of board work is

completed in line with the organization’s strategic

objectives.

Finance Committee

1. Ensure that accurate and complete financial records are maintained

2. Ensure that accurate, timely, and meaningful financial statements are prepared and presented to the board

3. Oversee budget preparation and financial planning

4. Safeguard the organization’s assets

5. Help the full board understand the organization’s financial affairs

6. Ensure compliance with federal, state, and other requirements related to the organization’s finances

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33

Emergency Succession• Primary goal is to prepare the organization for

the unplanned departure of a key manager or staff members

• Most important for the CEO, but organizations should also have them for other key positions

– Functional managers

– “one person” shops

– Anyone with “institutional memory” that should be documented

EMERGENCY SUCCESSION PLAN = DESK MANUAL

Desk Manual Creation

• Documenting key functions and procedures so

someone else can do the job in the event of

an emergency

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In Summary

• Is strategic planning dead or was it simply

never really alive and well?

• It doesn’t matter

– The more important thing to do is assess whether

your organization is experiencing process gaps

and/or skill gaps that are barriers to goal

accomplishment

• Identify gaps and take action!

Example of a

“Macro” Planning Approach

11/25/2015

35

Overview of the Economic Development

Action Planning Process

ENVIRONMENTAL ASSESSMENT OUTCOMES IMPLEMENTATION REVIEW

WHERE ARE

WE NOW?

WHERE DO WE

WANT

TO BE?

HOW WILL

WE

GET THERE?

WHO MUST

DO

WHAT?

HOW ARE

WE

DOING?

DEVELOPGOALS

DEVELOPGOALS

STRATEGIESSTRATEGIES

DELEGATEDOBJECTIVES

DELEGATEDOBJECTIVES

MEASUREMENTMEASUREMENT

OBJECTIVESOBJECTIVES

PROGRAMTACTICS

PROGRAMTACTICS

TEAM &INDIVIDUAL

ACTION PLANS

TEAM &INDIVIDUAL

ACTION PLANS

REWARDS

&RECOGNITION

REWARDS

&RECOGNITION

RESOURCEALLOCATIONDISCUSSION

RESOURCEALLOCATIONDISCUSSION

ORGANIZATIONALACTION

PLANS

ORGANIZATIONALACTION

PLANSIDENTIFYMETRICS

IDENTIFYMETRICS

CURRENT ECONOMIC DEVELOPMENT

ROLES AND PLAYERS

CURRENT ECONOMIC DEVELOPMENT

ROLES AND PLAYERS

INPUT FROM THE COMMUNITY/

STAKEHOLDER GROUPS

INPUT FROM THE COMMUNITY/

STAKEHOLDER GROUPS

REPORTS/FACTUAL INFORMATIONREPORTS/FACTUAL INFORMATION

HOLD A TEAM PLANNING CONFERENCEHOLD A TEAM PLANNING CONFERENCE

BENCHMARKING/BEST PRACTICEINFORMATION

BENCHMARKING/BEST PRACTICEINFORMATION

COMMUNITY INPUT VIA WEB SURVEYCOMMUNITY INPUT VIA WEB SURVEY

STRATEGIC PLANNING

IMPLEMENTATION

MANAGEMENT

Reports/Factual Information

• Look at all information and studies completed in the last 10-15 years

• Include information gathered for the comprehensive plan

• Summarize information; identify themes & trends

• Draw conclusions for future planning

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Reports/Factual Information

• Gather New Information

– Trends and Conditions

– Economy & Workforce

– Housing

– Energy Analysis

– Transportation and

Infrastructure

– Environment

Stakeholder Forums/

Community Input

• Conduct focus groups or “captive audience” stakeholder forums

• Gather needs information and summarize

• Written, telephone or internet

• Gather information on citizen priorities

Community Input

Via Survey

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“Roles & Players” Analysis

• Identify of all the “groups”/ organizations currently playing a role in Economic Development (according the ideal model definition)

• Outline current functions; goals & objectives for the future

• Analysis: what do we have the capacity to accomplish?

“Ideal Model” for Economic Development

includes:

• Intelligence/Data

Gathering

• Sources of Funding

• Business Retention

• Marketing

• Business Creation/

Entrepreneurship

• Business Attraction

• Infrastructure

• Community

Development

• Workforce

Development

• Travel/Tourism

• Technology

Deployment

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Ideal Model Subcommittee

• Small work group charged to “envision” the

“ideal model” of how the “regional”

Economic Development “system” should

operate

– If we were starting from scratch and designing the ideal

functional system, what would it include?

– Used as a basis to complete a “gap analysis” with the Roles

& Players Information (how far are we now from our ideal?)

Best Practice Research

• What are the best practices from

around the country regarding how an

economic development system should

operate?

• What can we learn from others that we

can apply here?

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Data Review Meeting

• 1-2 Weeks before Planning Conference/Retreat

• All information compiled by established deadline &

reviewed by Committee

• Full group meeting to review data, discuss implications

and draw conclusions

• Key issues identified for group; agenda finalized for retreat

Team Planning Conference

• Ideally, full day

• Agenda to include identification of priorities, goals, objectives & metrics

• Opportunity for discussion & interaction (formally and informally) among group members

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Action Planning

• Individuals and team assignments to

determine human, capital and operating

resources required to implement the plan

• Action plans will be assembled and costs

calculated (estimated)

• Meeting to discuss sequencing, prioritization

and implementation process in order to

finalize plan

Once the plan is developed

• Schedule periodic review meetings

(quarterly or semi-annually)

• Establish measurement/reporting

system

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41

Never doubt that a small group

of committed citizens can

change the world.

Indeed, it is the only thing that

ever has.

-Margaret Mead

Questions/Discussion

82

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