Strategic Planning Workbook for Nonprofit Organizations, Revised and Updated

By Bryan W. Barry

In an environment of increased competition, funding cuts, and other pressures, strategic planning is a sound management tool for nonprofits. This workbook provides a guide for developing, implementing, and updating a strategic plan. Sample plan and blank worksheets are included.

• Language: English
• Publisher: Fieldstone Alliance
• Release date: May 1, 1997
• ISBN: 9781618588821

Book preview

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Copyright © 1997 by Fieldstone Alliance.

Fieldstone Alliance is committed to strengthening the performance of the nonprofit sector. Through the synergy of its consulting, training, publishing, and research and demonstration projects, Fieldstone Alliance provides solutions to issues facing nonprofits, funders, and the communities they serve. Fieldstone Alliance was formerly Wilder Publishing and Wilder Consulting departments of the Amherst H. Wilder Foundation. For information about other Fieldstone Alliance publications, see the last page of this book. If you would like more information about Fieldstone Alliance and our services, please contact

Fieldstone Alliance

60 Plato Boulevard East, Suite 150

Saint Paul, MN 55107

800-274-6024

www.FieldstoneAlliance.org

Edited by Vince Hyman

Designed by Kirsten Nielsen

Illustrated by Giora Carmi

Manufactured in the U.S.

Seventh printing, December 2007

Library of Congress Cataloging-in-Publication Data

Barry, Bryan W.

Strategic planning workbook for nonprofit organizations / by Bryan W.

Barry. -- Rev. and updated.

p. cm.

9781618588821

1. Nonprofit organizations--Planning. 2. Strategic planning.

I. Amherst H. Wilder Foundation. II. Title.

HD62.6.B37 1997

658.4’012--dc21

97-8103

CIP

Limited permission to copy

We have developed this publication to benefit nonprofit and community organizations. To enable this, we grant the purchaser of this work limited permission to reproduce forms, charts, graphics, or brief excerpts from the book so long as the reproductions are for direct use by the individual or organization that purchased the book and not for use by others outside the organization. For example, an organization that purchased the book to help its staff or board make plans relevant to the topic of this book may make copies of material from the book to distribute to others in the organization as they plan.

For permission to make multiple copies outside of the permission granted here—for example, for training, for use in a compilation of materials, for public presentation, or to otherwise distribute portions of the book to organizations and individuals that did not purchase the book—please visit the publisher’s web site, www.FieldstoneAlliance.org/ permissions.

Aside from the limited permission granted here, all other rights not expressly granted here are reserved.

About the Author

BRYAN BARRY is vice president of Leadership Foundations of America (LFA). Bryan leads LFA’s strategic planning, multi-city initiatives, resource development, and board support. He comes to LFA from the Amherst H. Wilder Foundation, where he was director, senior vice president, and a consultant for over twenty-five years. Bryan provided consultation and counsel to several hundred nonprofit, faith, government, community, and business organizations, as well as networks and coalitions across the United States and other regions of the world.

Acknowledgments

Each day I learn things that help me in this work—from my colleagues, the people and organizations we team up with, colleagues around the country, things people send me to read, and family and friends. I am thankful for you all. Trying to name the individuals who have contributed seems too big a task for this workbook, so I’ll not start.

I thank First Banks for their funding of the developmental costs of the original workbook. I also thank the leadership of North End Area Revitalization (N.E.A.R.), International Youth Foundation, Luther Theological Seminary, Metro Deaf Senior Citizens, Model Cities Inc., and Neighborhood Development Center for allowing us to use examples from their organizations’ strategic planning.

Throughout the book I sometimes use the word we in making a suggestion about strategic planning or in noting something we at the Wilder Foundation learned through our work over the years. I am especially indebted to and appreciative of my colleagues for what they’ve taught me. Much of what you find useful in this workbook probably comes from back-and-forth discussions with them. The we is intended to acknowledge that fact. However, please note that there is considerable variety in how our staff approach strategic planning and help organizations do it. The shortcomings of this book should be attributed to me and not to them.

Again, thanks to you all.

Bryan Barry

April 1997

Table of Contents

Title Page

Copyright Page

About the Author

Acknowledgments

Foreword

Section I - Introduction to Strategic Planning

Section II - Developing Your Strategic Plan

Section III - Appendices and References

Endnotes

Bibliography

Worksheet Instructions

Foreword

In 1986 the Wilder Foundation produced the first edition of this Strategic Planning Workbook. The goal of the original workbook was to make available an easy-to-use primer for nonprofit organizations on strategic planning. Since that time we have received many helpful comments and suggestions from people who have used the workbook. We have also learned and tested new ways to assist nonprofit organizations, community groups, government, broad-based coalitions, and wider movements with their planning. We now approach strategic planning somewhat differently than described in the 1986 edition of this book.

In this second edition, we have tried to maintain the primer-like quality of the workbook and also to incorporate a number of the helpful lessons and suggestions from Wilder Foundation (now Fieldstone Alliance) staff, from many nonprofit leaders and consultants, and from our experience since the first edition was published. Substantive changes include:

Using a steering group to guide the planning so that a wider range of people and groups can contribute.

Changes in suggested ways to take stock of your organization’s situation and to develop a shared vision for your nonprofit’s future.

Addition of a fourth method for setting the future direction of your organization—the alignment approach—in Step 3 of the planning.

More information on common strategies used by nonprofit organizations to address the opportunities and challenges we and the nonprofit sector now face.

New suggestions on the format of strategic plans.

A new, more detailed sample strategic plan.

Additional tips for successfully implementing and updating your strategic plan.

Material on how multiple organizations, coalitions, and communities can use strategic planning.

We continue to ask for your suggestions about this workbook—what you find useful, where the book is not helpful, and what you are learning about strategic planning that might help other organizations. We hope that such planning will increasingly become an effective tool for nonprofit organizations and broader coalitions to clarify their goals and mobilize the resources required to improve our communities and society.

Section I

Introduction to Strategic Planning

What Is Strategic Planning?

Why Develop a Strategic Plan—and the Limitations of Formal Planning

How to Develop a Strategic Plan

Section I Summary

In the early 1980s growing numbers of nonprofit organizations began to develop strategic plans. Many nonprofits have found such planning to be a key to their success. Others have not had such a good experience with planning. They got bogged down in the process or developed a strategic plan that was not particularly useful.

This workbook will introduce you to an approach to strategic planning that has been used by nonprofit groups across the United States and in many other countries. The workbook is a step-by-step guide for developing and implementing a useful strategic plan.

Over the past fifteen years, our consulting staff have received several thousand consulting and training requests from many kinds of nonprofit and government groups—citizen groups, community-based organizations, national and international nonprofits, foundations, government at all levels, and broad-based coalitions or movements dedicated to particular goals. Each year, the most frequent request we receive is for help with strategic planning. Such requests might begin:

With the funding cuts we face, our financial situation looks very tight this year and horrible after that.

The rules seem to be changing. Funders want to see measurable outcomes. The competition for support is stiffer. Collaborations are being pushed. Organizations are merging. We need to sort through these things and develop a clear plan for the future.

Our city is rapidly changing. Despite the best efforts of our organization and many others, things are not improving.

Over the past few months, people have approached us with ten new program opportunities. We need to decide which ones to pursue and how much growth we can handle.

We’re being criticized for losing our focus and not being responsive to urban neighborhoods.

We are about to begin the search for a new executive director and need to be clearer about our future direction in order to pick the right person.

The last time our organization tried to do strategic planning, it was a nightmare.

My board chair is encouraging us to develop a strategic plan. To be honest, with all the things on our plate, I don’t know if we can handle this now.

... or simply ...

We need a strategic plan but are not sure how to proceed.

It’s time to update the strategic plan we developed last year.

These comments point to good reasons to develop a strategic plan. Rapidly changing community conditions often require new responses and alliances. A desire to have greater impact leads others