Ellen Shapiro, author of Fad Surfing in the Boardroom: Managing in the Age of Instant Answers, has compiled a fad surfer’s dictionary. Here is her definition of “strategic plan” – 1. a set of analyses, packaged in accordance with corporate requirements, that is undertaken in order to justify a campaign already underway or a budget about to be submitted; 2. A set of analyses, packaged in accordance with corporate requirements, that nonetheless bears little or no resemblance to the real strategy being followed (but that, once printed and bound, can, in a pinch, be used as a doorstop or a book end).
Most people have all had experiences with strategic planning—good, bad or indifferent. It’s understandable that there will be some resistance when “it’s time to do strategic planning again” because of past disappointments and frustration with the process. In order to be successful, future planning efforts must somehow provide reasonable assurances that the time and energy people invest in the process result in changes and improvements that are implemented and supported by leadership. And then we have to deliver on the promise!
Wednesday, February 16, 2005
Sunday, February 13, 2005
Is there a difference between strategic thinking and strategic planning?
Is there a difference between strategic thinking and strategic planning? And if there is, what is the difference? I found an article that does an excellent job of exploring the question. The article is entitled “Strategic Thinking: A Discussion Paper” by Eton Lawrence of the Public Service Commission of Canada. The answer to the question – there is a difference and at the same time, the two processes are closely connected. You have to read this article because it is so good! It brings into this discussion of strategic thinking and planning, related themes of systems thinking, organizational learning and strategy development. According to the article, the purpose of strategic thinking is to discover novel, imaginative strategies which can rewrite the rules of the competitive game and to envision potential futures significantly different from the present. The purpose of strategic planning is to operationalize the strategies developed through strategic thinking and to support the strategic planning process. Strategic thinking and planning are then two sides of the strategic management coin.
The article also challenges some of the traditional notions of strategic planning. For example, organizations are usually counseled to find a fit between their mission, external opportunities and their core competencies. This advice makes usually makes great sense. However, there is a danger: we can run the risk of doing strategic planning that is not really "strategic". The traditional advice can result in the organization missing or passing up innovative courses of action. This appraoch can result in the decision to essentially remain the same organization doing a few new things or doing the same things a little differently. The article suggests that strategic thinking can sometimes (and should) disrupt alignment, leading to a vision or preferred future that is not a match for the organization’s current core competencies and yet it’s the compelling vision that the organization will choose to pursue. Strategic planning can then recreate a new alignment by helping the organization figure out how to build the required new core competencies or finding new partners that already possess them. Quoting from Hamel and Prahalad, Lawrence States “whereas the traditional view of strategy focuses on the degree of fit between existing resources and current opportunities, strategic intent (strategic thinking) creates an extreme misfit between resources and ambitions.” The article also provides important insights about why it is vital to involve lots of people in the strategic thinking and planning process. Finally, the article challenges organizations to understand their work as occurring within larger systems. For example a nonprofit working on job creation for residents of a low income urban neighborhood would need to consider ways to link their efforts to regional economic development efforts.
The article also challenges some of the traditional notions of strategic planning. For example, organizations are usually counseled to find a fit between their mission, external opportunities and their core competencies. This advice makes usually makes great sense. However, there is a danger: we can run the risk of doing strategic planning that is not really "strategic". The traditional advice can result in the organization missing or passing up innovative courses of action. This appraoch can result in the decision to essentially remain the same organization doing a few new things or doing the same things a little differently. The article suggests that strategic thinking can sometimes (and should) disrupt alignment, leading to a vision or preferred future that is not a match for the organization’s current core competencies and yet it’s the compelling vision that the organization will choose to pursue. Strategic planning can then recreate a new alignment by helping the organization figure out how to build the required new core competencies or finding new partners that already possess them. Quoting from Hamel and Prahalad, Lawrence States “whereas the traditional view of strategy focuses on the degree of fit between existing resources and current opportunities, strategic intent (strategic thinking) creates an extreme misfit between resources and ambitions.” The article also provides important insights about why it is vital to involve lots of people in the strategic thinking and planning process. Finally, the article challenges organizations to understand their work as occurring within larger systems. For example a nonprofit working on job creation for residents of a low income urban neighborhood would need to consider ways to link their efforts to regional economic development efforts.
Wednesday, February 09, 2005
The Link Between Board Development and Strategic Planning
The link between board development and strategic planning; it's a theme that I will return to again and again. Effective strategic planning requires the engagement and leadership of the board of directors; involvement of the board in strategic planning is one of the most effective ways - probably the most effective way - to strengthen the board. Today, I came across an excellent resource for understaning this connection between board development and strategic planning: The Dynamic Board: Lessons from High-Performing Nonprofits from McKinsey & Company. The report summarizes the best practices identified through McKinsey’s interviews with the directors or board chairs of 32 highly-regarded nonprofits. Included with the report is a self-assessment tool for nonprofit boards. This is one of the best board assessment tools available and comes in 5, 15 and 30 minute completion time versions. You'll need to register to access the report and the three assessment versions. Go to: http://www.mckinsey.com/practices/nonprofit/ourknowledge/dynamicboards.asp. The report and the assessment make constant links between strategic thinking and planning and board effectiveness. Very well done!
Friday, February 04, 2005
Boards that think, plan and act strategically
So how do we nurture board leadership that will think, plan and act strategically? By creating a long-range plan for the development of such board leaders. In contrast to the typical short-term recruitment process that focuses narrowly on filling anticipated nonprofit board vacancies for the current year only, boards need a long-range plan for developing future-focused leadership. Such a long-term leadership development plan centers on the following questions: Who will be serving on and leading the board over the next three years? What is our plan to scout board leadership talent for the future? How will we go about fostering and developing future board leadership? Key elements of this approach include:
· Replace the nominations committee with a board development committee. This committee will use the key questions listed above to devise an ongoing process that includes prospecting, recruiting, selecting, orienting and training, and performance assessment of board directors.
· Link board development to your strategic plan. Identify the new skills, knowledge, personal contacts, and other attributes future board directors will need to possess in order for the board to do its part in advancing the strategic plan. Based on this analysis, develop targeted board recruiting priorities.
· Develop a written board director job description that reflects the future needs and expectations of the board.
· Direct the executive committee to design board meeting agendas that focus attention on the ultimate ends of the organization and monitoring progress in implementing the strategic plan.
· Conduct an annual evaluation of the board that focuses, in part, on how well the board is maintaining a strategic focus.
· Develop a just-in-time board orientation program to speed up the learning curve for new board directors so that they can hit the ground running in their first meeting. Again, it is important to link this advance program of orientation and training to the strategic plan.
· Replace the nominations committee with a board development committee. This committee will use the key questions listed above to devise an ongoing process that includes prospecting, recruiting, selecting, orienting and training, and performance assessment of board directors.
· Link board development to your strategic plan. Identify the new skills, knowledge, personal contacts, and other attributes future board directors will need to possess in order for the board to do its part in advancing the strategic plan. Based on this analysis, develop targeted board recruiting priorities.
· Develop a written board director job description that reflects the future needs and expectations of the board.
· Direct the executive committee to design board meeting agendas that focus attention on the ultimate ends of the organization and monitoring progress in implementing the strategic plan.
· Conduct an annual evaluation of the board that focuses, in part, on how well the board is maintaining a strategic focus.
· Develop a just-in-time board orientation program to speed up the learning curve for new board directors so that they can hit the ground running in their first meeting. Again, it is important to link this advance program of orientation and training to the strategic plan.
Monday, January 31, 2005
Who's going to implement the plan?
An article from the McKinsey Quarterly, January 2005, “Leadership As The Starting Point Of Strategy” reminds us of the importance of leadership in strategic planning. Here’s the abstract: “Companies that overlook the role of leadership in the early phases of strategic planning often find themselves scrambling when it's time to execute. No matter how thorough the plan, without the right leaders it is unlikely to succeed. … Executives must consider their leadership pool as they shape strategy and align their leadership-development programs with long-term aspirations.” And in nonprofits, this includes board leadership as well.
Saturday, January 29, 2005
Finding your way in the information maze
Gathering and analyzing information is a critical ingredient in strategic thinking and planning. The Web is a powerful information gathering tool. But it’s good news/bad news. The good news: the wealth of information available; The bad news: too much information! Every once in a while I come across a site that does an amazing job of bringing order out of the chaos. I found one such website today. It’s called Emerald Management Reviews. It provides access to electronic management journals, databases, discussion forums and other online resources. Everything is rated on a five-star scale. Check it out: http://puck.emeraldinsight.com/vl=966865/cl=51/nw=1/rpsv/reviews/coolsites/index.htm
Friday, January 28, 2005
What I believe about strategic planning …
I believe that the primary purpose of strategic planning is to provide leaders with the opportunity to collectively determine the future direction of their organization and then develop plans to immediately and rapidly begin to move in that direction. To be successful, the process of planning must be made to work for people in the organization -- not the other way around. While I believe that there are some basic principles of strategic planning that must be followed, I also know that there must be flexibility in designing the actual planning timetable so that the organization in question achieves its hoped-for outcomes.
I am also convinced that many strategic planning efforts falter for at least three reasons: First, the failure to involve enough people in the process with the consequence that commitment to the strategic plan is weak. It is critical that representatives of all key constituencies be involved in the planning process in a meaningful way. "Real commitment" to a shared vision for the future only results from "real participation."
The second problem is the failure to translate the strategic plan into concrete action plans on an annual basis. Mention the words "strategic planning" in a large room and you can be sure that you'll hear a groan from some people. All too often, countless meetings, during which people invest considerable time and energy in the development of missions, visions, goals and strategies, never lead to development of concrete, measurable plans of action with clear accountability for results. Is it any wonder that people lack enthusiasm for strategic planning?
Related to this is the third reason for failure: resistance to the planning process because of past disappointments with similar efforts. In order to be successful, future planning efforts must somehow provide reasonable assurances that the time and energy people invest in the process result in changes and improvements that are implemented and supported by leadership.
I am also convinced that many strategic planning efforts falter for at least three reasons: First, the failure to involve enough people in the process with the consequence that commitment to the strategic plan is weak. It is critical that representatives of all key constituencies be involved in the planning process in a meaningful way. "Real commitment" to a shared vision for the future only results from "real participation."
The second problem is the failure to translate the strategic plan into concrete action plans on an annual basis. Mention the words "strategic planning" in a large room and you can be sure that you'll hear a groan from some people. All too often, countless meetings, during which people invest considerable time and energy in the development of missions, visions, goals and strategies, never lead to development of concrete, measurable plans of action with clear accountability for results. Is it any wonder that people lack enthusiasm for strategic planning?
Related to this is the third reason for failure: resistance to the planning process because of past disappointments with similar efforts. In order to be successful, future planning efforts must somehow provide reasonable assurances that the time and energy people invest in the process result in changes and improvements that are implemented and supported by leadership.
Wednesday, January 26, 2005
The difference between strategic planning and business planning
So what’s the difference between strategic planning and business planning? There seems to be some confusion and/or disagreement about the answer. I see the two processes as related but very distinct. Here are three articles that shed some light on the subject. The first article is “Business Planning and Strategic Planning Revisited” by Herb Rubenstein of Growth Strategies, Inc., a leadership and management consulting firm. Go to: http://www.refresher.com/!hrrrevisited.html. The second article is “Strategic Planning: Some Lessons Learned about What Does and Doesn't Work” by Paul Connolly of the TCC Group (formerly The Conservation Company). Go to: http://www.tccgrp.com/pdfs/per_art_stratplan.pdf. The third article is “Business Planning for Nonprofits: Why, When — and How It Compares to Strategic Planning” by Brigette Rouson of the Alliance for Nonprofit Management. Go to: http://www.allianceonline.org/Members/Library/strategic_planning_business/businessplanning.pdf/file?agree=I+Agree
What do you think? How do you approach this question?
What do you think? How do you approach this question?
The launch
I've been thinking about launching this blog for awhile. So here's the inaugural post. I see the Strategic Thinking and Planning Blog as an opportunity to share what I've learned about strategic planning. I've been assisting nonprofit organizations in this critical process for a number of years. I see strategic planning as closely linked to a number of other important activities: board development, building learning organizations, and forging alliances and collaborations in particular. I also see this blog as an opportunity to learn from others like yourself. Let's give it a go.
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