Issue 55
January 18, 2007

NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its fifth year of publication, with delivery to over 840 subscribers every month! We welcome your feedback and suggestions!

NEW would like to recognize the generous support of its Community Partners:

IN THIS ISSUE

LEAD STORY

Strategic Planning for Non-Profit Enterprises - Part II
The Basic Elements of a Strategic Plan

By Lee Gorman*

Your organization has decided that it’s time to put together a strategic plan; where do you start? If there’s an existing strategic plan, you could update it, or perhaps base it on one you’ve seen from another organization. Or, you could start from scratch. Whatever your approach, it’s important to think about the purpose of the document and its audience. A good strategic plan should:

• Be straightforward and clear, so that it can be understood not only by the people who were involved in putting it together, but by outside stakeholders and people who join the organization after it is in place
• Provide guidance to both Board members and staff
• Be at high enough level so that it is not out of date before it’s finished

Although the document itself is the output from the strategic planning process, it’s helpful to have an outline of what the final document might contain when starting the process. The outline can provide both a roadmap on how to proceed and a way to track progress. The following provides a template to document the organization’s strategy in a way that is straightforward and easily understood by all key constituents.

The best strategic plans are relatively short (supporting documentation can be included in appendices), and contain some variation of these basic elements:

• Introduction
• Vision
• Mission
• Core Values
• Guiding Principles Strategic Goals
• Areas of Focus

Introduction
Because the plan will be seen by people who didn’t take part in its development (usually, new constituents), it requires an introduction. This simply explains the purpose of the document; how and when it was developed (and by whom) and how it is intended to be used.

Vision
Many organizations already have a vision; it may or may not be clearly articulated. The vision is a statement of the ideal of the organization in the future. This ‘future’ does not have a specific time frame, and there may not be agreement that the vision is even feasible. The vision is something toward which the organization strives.

Mission Statement
The Mission Statement is often prominently displayed at an organization’s place of business. It describes, briefly, the purpose of the organization; what it does, and for whom.

Core Values
People who work with or for an organization usually have quite a few shared values; this section lists just the top three to five critical to the organization. They indicate what’s most important to people within an organization, and how they are expected to behave. If you ask a group of constituents what the organization’s key values are, then have them each rank those values, you will usually hear a fair degree of consensus. Having these stated in the plan not only validates existing constituents, but helps communicate the essence of the organization.

Guiding Principles
Most organizations have a few basic tenets that the board and administration consider when weighing decisions. They may pertain to financial matters or to issues of morality or ethics.

The ‘North Star’
The vision, mission, core values and guiding principles make up what can be considered the North Star for the organization. They change little over time, and provide a compass to help the organization stay on course. They should be reviewed for validation with each new strategic planning process, but should be revised only to reflect a deliberate change of course.

Developing this part of the strategic plan requires a lot of internal discussion and consensus-building, though it is not labor intensive in terms of research and analysis. Because it is a critical foundation for the strategic plan, it is helpful to enlist an unbiased facilitator to avoid ‘groupthink’ or the undue influence of a few.

The actual strategy is delineated in the next two sections.

Strategic Goals
There should be three to five specific goals which speak to what’s needed to ‘get from here to the Vision.’ These are very general goals: e.g., ‘broaden services to…’ or ‘develop partnerships for…’ This section changes over time based on the progress made in achieving any of the goals.

Areas of Focus
Since it’s generally not feasible to address fully all the strategic goals immediately, this section outlines the priorities for the next few years. Each area of focus should relate directly to one of the Strategic Goals, but provide more detail of specific steps to be taken. These ‘objectives’ will include metrics by which progress can be measured.

Although this section has some specifics, most of the detail about what is to be done and when will be included in the ‘Action Plan.’ This should be a separate document for several reasons:

• It changes frequently; management should review and update it on a monthly basis at least.
• It must be broken down by function, with each section developed by the responsible function. This can’t (or shouldn’t) be done until the overall strategic plan has been approved by the board.
• It contains far more detail in terms of specific actions, timing, and responsibility than should be shared with a broad audience.

Supporting documentation
In order to fully develop the strategic plan, considerable research and analysis is necessary. While it is important to document that work in support of the plan, it shouldn’t be included in the body of the plan. Some typical appendices may summarize:

• Competitive analysis
• Market/customer analysis
• Financial analysis
• Environmental factors

While this template does not represent a formula for writing a strategic plan, it can provide a framework for structuring the process by which the plan is developed.

*Lee Gorman is the founder of Barton Consulting Services, LLC, an Ann Arbor-based management consulting company that specializes in strategic planning for both nonprofit and for-profit businesses.

See Part I of this series Why Nonprofits Should have a Strategic Plan by Ms. Gorman in last month’s issue.

FEATURED ITEMS

2007 Training Opportunities

Have you been thinking about improving your skills? Learning something new? Find workshops on everything from advocacy to youth development in NEW’s Online Training Calendar. Search by topic, month, cost, location, training provider and/or format to find the class that suits you. Many online classes are available to take at your own pace. Classroom training and conferences from all over Michigan and northern Ohio are listed for your convenience. We welcome feedback on the calendar and suggestions for trainings to include in the database. Contact Dallas Moore (734-998-0160 x227).

Special Event: The Leader of the Future: Visions, Strategies and Practices for the New Era with Frances Hesselbein

Monday, January 29, 2007, 9 a.m. – 3 p.m.
Youthville, 7375 Woodward, Detroit. (Directions to MNA’s Youthville office)

Our post 9/11 world presents new and unexpected challenges for present and future leaders. Join Frances Hesselbein in a thoughtful discussion of the basic principles and values of leadership as they apply to emerging and unforeseen challenges, opportunities and trends. Learn what some of the most thoughtful leaders are saying and come away with strategies for your own organization's success.

Frances Hesselbein is the founding president and chairman of the Leader to Leader Institute, formerly the Peter F. Drucker Foundation for Nonprofit Management. In addition to her experience as the former CEO of the Girl Scouts of the USA, she has written and spoken widely on nonprofit leadership.

Fees: Michigan Nonprofit Association Members $69; not-yet members $89.
Parking, continental breakfast and lunch are included.

Register online. For more information: contact Arlyn King (517-492-2435 or toll-free in Michigan 888-242-7075).

Sponsored by Michigan Nonprofit Association, with local co-sponsors NEW and the Detroit Executive Service Corps.

Need Help with Accounting?

Graduate students of accounting at Eastern Michigan University are available to provide help to nonprofit organizations during the current term. A three-student team might set up an accounting system and chart of accounts, prepare your 990 form, or develop a strategic financial plan. Each student will provide about 20-25 hours of service between now and April.

Please contact Professor Howard Bunsis (734-487-1070 or 734-487-2519) for more information.

Creative Connections

Monday, January 22, 6 p.m. – 8 p.m.
Performance Network, 120 E. Huron, Ann Arbor

Anyone involved or interested in arts and culture in Washtenaw County is invited to attend a free networking event on Monday, January 22. Creative Connections is sponsored by the Arts Alliance of the Ann Arbor Area (A5) with the goal of building a strong community by networking and exploring common issues such as marketing and fundraising. Please RSVP to Tamara Real (734-214-0112) as soon as possible.

Show Me the Funders

Friday, January 26, 8:30 a.m. to 1:30 pm
Fellowship Chapel Church; 7707 West Outer Drive, Detroit

The 10th annual Show Me the Funders Conference and Expo is coming soon. This is your opportunity to hear directly from funders regarding their priorities for consideration, application guidelines, and how they are addressing the increasing demand for resources.

The keynote speaker this year is Tonya Allen, Senior Program Director of the Skillman Foundation. The event is sponsored by the Youth Sports and Recreation Commission in partnership with the Mini Grant Providers Coalition.

The cost is $75. Register online.

Public Policy Strategies and Tactics Series in Detroit

Advocacy has become an increasingly important strategy that helps nonprofits meet their missions. The Michigan Nonprofit Association (MNA) is offering a series of monthly workshops in Detroit from February through July to prepare nonprofit staff, board members, and volunteers to engage in public policy debates at the state and local levels.

Each workshop has a specific focus and is highly interactive. Choose combinations for various leaders in your organization that will strengthen your capacity for advocacy.

February’s offering is Public Policy 101: The Basics of Nonprofit Advocacy to be held Tuesday, February 27, 1 p.m. – 4 p.m. This is a basic workshop for those who are thinking about increasing their capacity to do policy work at the State Capitol.

Register for this workshop and learn about future offerings on MNA’s website. The cost for each workshop is $25.

For more information on these and additional public policy trainings, contact Erin Skene or Tiffany Aurora (517-492-2400).

Free Introductory Session of the Benevon Model

Wednesday, January 24, 2007, 3 p.m. to 5 p.m.
Alternatives for Girls, 903 W. Grand Blvd., Detroit

Formerly called Raising More Money, the Benevon model of fundraising has proved to be a high-results fundraising approach that naturally attracts those people who are truly passionate about the organization’s mission and work.

This introductory session is free of charge. The presenter will show you how to cultivate individuals to become lifelong donors. Register online. Questions? Contact Sara Gosney (206-709-9400 ext. 138).

Reminders

Arts Minigrant applications through MCACA are due February 1.

Ann Arbor Area Community grant applications are due February 14.

REGULAR FEATURES

Nonprofit Times Techno Buzz is a monthly email newsletter that keeps subscribers in touch with technology trends for nonprofits. A recent article "Fundraising Software: Your Money-Making Machinery" reminds us that "Donor acquisition and retention are the key components to a successful fundraising program." Learn more and subscribe.

Nonprofit Bulletin Board

Visit NEW's Nonprofit Bulletin Board to post and view notices about free resources, fundraising opportunities, and other items relevant to the southeast Michigan nonprofit community.

Events Calendar

Ann Arbor Area Convention and Visitors Bureau calendar of events. E-mail Nick Miller to request a password to submit an event.