Making your nonprofit more strategic in five steps!
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Is your nonprofit thinking and planning strategically? Unless you are in the minority that do, you could probably use some tips on becoming more strategic and transforming into an organization that is more accountable, respected, and sustainable. Taking the following five steps toward strategic thinking and planning will change your organization.
A survey conducted by The Center for Social Innovation (CSI) at Stanford Graduate School of Business found that most nonprofits have difficulty achieving goals due to strategic management and leadership gaps. In fact, “More than 80 percent of nonprofit organizations struggle with at least one of the seven fundamental elements of nonprofit leadership and management, thus hampering their overall performance and their ability to achieve their goals.”
“Only a small share, (11 percent) of nonprofit organizations have mastered both strategic thinking and strategic management and are therefore, ready and able to scale their impact,” according to The Stanford Survey on Leadership and Management in the Nonprofit Sector. They further state that this creates a reactionary state of putting fires out rather than focused strategic management or a systematic approach.”
Sound familiar? In my experience, a lack of strategy has resulted in countless nonprofit employees inefficiently jumping from one project to the next. Strategic thinking should be part of the board’s regular work, not something that engages only when developing a strategic plan. The ability to have difficult conversations, ask thought-provoking questions, and seek new ways of operating can help generate key, strategic ideas and initiatives for the organization.
So, how can you become more strategic? How can you ensure your organization’s leadership and staff is aligned with strategic goals and objectives? How can you ensure your board “gets it?” Consider focusing on these five steps.
Strengthen the Board Composition
Some boards are self-perpetuating, friends and colleagues recommend friends and colleagues. That approach doesn’t make for the best board, nor does drafting the acquaintance who is looking for something to do. If your board is not passionate about the mission, attending regularly, or willing to think strategically, then you may need to consider some changes.
Board transition is the job of the executive committee. Review your bylaws and nominating process and seek out new members who will fill the gaps you need, while bringing the strongest networks and engagement. It may take some time to evolve but it will be worth it in the end.
Restructure Your Agenda
Many agendas are lacking excitement and future-oriented topics that engage the board in a transformative discussion. It’s time to worry less about spending time on the old business and focus more on the new. Get the committee reports and other stodgy aspects into a written form that can be reviewed before the meeting and added to a consent agenda. You’ll have more time for exciting discussions about strategy and the future.
Draft Consequential Questions
The right questions can trigger transformative and thought-provoking discussions. These will serve to strengthen the board’s collective understanding and open the door to significant change. Once the topics are on the table a spirited discussion can help bridge the gap to the future and help develop steps to get there.
Challenging Thoughts and Operations
Boards that consistently conduct business with unanimous votes are seldom entering challenging territory. They are generally nottaking enough risks or exploring newways of serving their constituents. Individual board members should be comfortable in pursuing change and seek performance improvement by challenging existing thoughts and processes.
Institutionalize the Strategic Processes
While we’ve addressed a few steps for implementation, like reworking the agenda, boards must be certain to institutionalize processes that support developing strategy. Organizations should adopt a “planning calendar.” This calendar should set aside time each year for strategic planning, but also create an environment where strategic thinking throughout the year is commonplace, comfortable, and second nature. This ongoing board work can provide valuable and high-quality strategic plan content through a regular cycle of inquiry and feedback.
Let’s face it, most nonprofits have a list of mounting tasks that can cause them to lose focus and not align their futures where efforts would be more impactful. However, until they become more strategic, they will continue to spin their wheels and be shrouded in a cloud of underperformance. Dedicating time and effort to strategic thinking and planning will ensure sustainability while enhancing accountability, transparency, and respectability. Ultimately, they’ll raise more funds to support their mission.
David J. Fry, MPS,CDT is Founder/CEO of Effective Advancement Strategies in Greensburg and author of Build a Nonprofit Castle, He consults with businesses and nonprofits throughout Indiana. He may be contacted at strategies@etczone.com