There are various models for strategic planning; however this is one that The Andringa Group finds useful as their senior consultants assist nonprofit leaders and boards with planning.  If your organization is embarking on a planning process, this provides a working definition and a helpful overview of the process.

Definition of Strategic Planning:
Strategic planning is an ongoing process by which leaders envision the future of their organization and then develop the structures and procedures required to achieve that future. The intent is to create the future, not predict it.

Primary Purposes for Engaging in Strategic Planning:

• Greater unity on purpose, values and culture
• Improved selection of appropriate board members
• CEO and management focus and application of personal strengths
• Donor confidence in the future of the organization
• Better staff teamwork and higher morale
• Reduced crisis management
• Improved effectiveness (doing right things) and efficiency (doing things right)
• Better staff recruitment and training
• Focused board and staff meetings
• Guidance in branding the organization's name/role
• Better results from marketing/advertising
• Basis for employee performance reviews

Whose Responsibility is Strategic Planning?
1. The governing board, representing the moral owners (key stakeholders), determines the "essentials" (mission, values, goals, etc.) and sets broad parameters within which the board wants its CEO and staff to achieve the mission.  The board also identifies the data it needs to monitor progress toward achieving the mission and goals.

2. The CEO and key administrators then develop a more comprehensive plan that takes into account human and financial resources, legal constraints, partnerships, timing, etc.

3. The CEO and staff provide monitoring data to the board and make recommendations on changes in the board's policies that affect planning.

Key Elements of the Strategic Planning Process:
A. Articulation of the organization's vision and mission as defined by the board. The vision defines the broad future it envisions and reflects the values that are intrinsic to the organization. These tend to remain constant over time and require no external justification. Many other organizations are needed to achieve a broad vision. The mission defines the central purpose of the organization and the result it exists to achieve independent of the methods for achieving it.

B. Identification of the emerging trends and changes in the organization's basic political, economic, social and technological environments, which will have the most affect on how the organization will function in the future. These factors serve as a major impetus for change and are frequently summarized by the CEO for the board.

C. Clarification of the organization's priority stakeholders, what they believe they have the right to expect from the organization and the criteria by which they will judge the organization's responsiveness to their needs. The board is the primary link to those considered "moral owners" and are representatives of those owners rather than an extension of management.  In reality, there may be as many as four groups of stakeholders: those who have mandates for the organization's activities or who can directly influence the organization's operations (e.g., legislative and funding agencies or voting members); those who are direct users of the organization's programs or services; donors; and those who work in the organization. 

D. Selection of key results areas consistent with the mission (i.e., where the organization cannot afford to fail if it is to achieve its fundamental purpose). Board and staff formulate broad options, but the board decides these. These are areas of behavior where superior performance by the organization will produce outstanding results for the stakeholders.

E. Development of priority goals targeted for implementation. The intent is to develop a series of one, two and three-year goals consistent with the mission of the organization and in response to the legitimate needs of the stakeholders. Again, the board, representing the moral owners, should agree to these even if primarily developed by staff.

F. Design of strategies and action plans for achieving each goal, including the process which will be used to monitor and evaluate success for both governance work and management. Each goal must have one or more criteria by which success will be measured. This level of work is typically required of the CEO and staff by the board, and any documents shared with the board should be considered staff documents. If the board disagrees with anything, they should articulate their guidance in board policies (ideally organized in a 15-20 page Board Policies Manual), after which the CEO makes adjustments to the more detailed plans.

G. Evaluation and reassessment of the key results areas and priority goals is an on-going process, scheduled for board meetings and staff meetings.

This article reprinted with permission from the Engstrom Institute; © 2009 Christian Leadership Alliance - 800.727.4CLA. Visit CLA's website to see what they offer your organization to help build leaders and enhance organizational effectiveness!

Article written by The Andringa Group, senior consultants who share a passion for helping nonprofit leaders, their management teams, and their boards. For more information, visit TheAndringaGroup.com.