Management
Information on nonprofit strategic planning, budgeting, investment, and other nonprofit management issues. For a great overview of nonprofit management, enroll in Nonprofit Organizational Effectiveness I and II. You may take these University of Iowa courses online.
IV. A. Principle–Strategic Planning
To achieve its mission and vision, a charitable nonprofit organization needs a comprehensive plan which sets forth the organizational goals with specific action steps to be taken by specific individuals.
Organizational success depends on execution of the plan.
Practices
- The board has the responsibility for adopting the strategic plan. The executive director and staff should be actively involved in the planning process with counsel from other organizational constituencies.
- Board and staff often resist planning because of the time and group thought required. However, if there is no group consensus on organizational direction and implementation action, the organization will be dysfunctional. An outside facilitator can help bring issues before the group in a non-threatening way.
Managing a Nonprofit Organization in the 21st Century, by Thomas Wolf and Barbara Carter (1999).
Frequently Asked Questions about Management
The process of creating a strategic plan is almost as valuable as the finished plan itself and offers many benefits to the organization. Three broad characterizations summarize some of the benefits that may be enjoyed by organizations that take the time to create a strategic plan. First, creating a strategic plan promotes strategic thought and action. Critical information will be gathered and acted upon in a more systematic manner. The Board and the staff will be more united in their vision of what is necessary to achieve the organization’s goals, and their individual actions will be more aligned with the broader organizational priorities. Second, the decisionmaking process will be improved. Not only do strategic plans focus attention on critical issues, but the plans provide the Board and the staff with rubrics for dealing with challenging situations. Third, strategic plans promote action. Organizations engaging in strategic planning are more responsive to demands placed upon the organization and more effective in dealing with new challenges.
Learn more: The Free Management Library - Strategic Planning Basics
By engaging in outcomes measurement, an organization can better assess the effects its programs are having on people’s lives. The United Way of America’s Outcome Measurement Resource Network defines outcomes measurement as “The regular, systematic tracking of the extent to which program participants experience the benefits or changes intended.” Outcomes Measurement provides an answer to the question, “What is the impact on the recipients of the services we offer?” Outcomes measurement is a tool that can assist an organization in the pursuit of two fundamental goals: improving and refining program services and communicating the organization’s value to the community. Organizations that can make a strong, quantifiable showing that their programs are having a strong impact on people’s lives are, among other things, better able to recruit and retain talented staff, obtain competent volunteers, increase or retain funding, and be leaders in the community. The results of outcomes measurement can help an organization determine where improvement is needed, how budgets should be modified, and how long-range goals should be prioritized.
A strategy is a set of actions that enables an organization to function in an efficient manner in order to carry out its purpose. Strategic planning is a systematic approach to determining what actions will be included in the set. In Strategic Planning for Public and Nonprofit Organizations, John M. Bryson defines the phrase as “a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it.” Strategies can be divided into three categories: organizational, programmatic, and functional. Organizational strategies detail actions that promote organizational growth (community development plans, partnerships with for-profits, board recruitment, etc.). Programmatic strategies focus on actions that that will enhance and manage the organization’s programs and services (developing a program evaluation process, initiating new services, informing the public about offered services, etc.). Functional strategies outline actions geared towards managing and supporting the organizations (e.g., obtaining appropriate technology to keep financial records, developing employee evaluation processes, facility management, etc.). A complete strategic plan includes all three categories.
The board of directors of your organization can decide what outcomes to create. To do this, they must first identify the intended beneficiaries of your organization's programs and what services your programs can provide to them. The members of the board should ask themselves, "what do we want to be true of our program's participants during and after the program?” The answers to this question will be the outcomes that you want. It is helpful to put the answers into written statements with your program's participants as the subjects of the statements. An example of an outcome statement would be, "adults completing [our] literacy program are able to read at the sixth-grade level."
Learn more: United Way Outcome Measurement Resource Network
