Strategic Planning for Nonprofit Organizations: A Practical Guide for Dynamic Times

305 Pages·2015·19.22 MB·English

by  Michael Allison

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fi
Praise for Strategic Planning for Nonpro t
Organizations, Third Edition
“Strategic planning is key to strong and successful nonprofits but can also be
intimidating. Allison and Kaye demystify this important work, and in practical and
manageablesteps,helppeopleandorganizationsmovethroughtheprocess.Evenif
you have done strategic planning before, you will learn from this book. I know I
have, and I heartily recommend it.”
—Kevin Cathcart, Executive Director, Lambda Legal
“StrategicPlanningforNonprofitOrganizationsisthebeststrategicplanningbookinour
industry. The third edition is even better and I look forward to sharing it widely!”
—Robert Walker, Executive Director,
The Frank H. and Eva B. Buck Foundation
“A much needed detailed walk through of the process of constructing and using a
strategic plan.”
—Sharon Oster, Frederic D. Wolfe Professor of Management
and Entrepreneurship and Economics, Yale School of Management
“StrategicPlanningforNonprofitOrganizationsisagreatresource!Itisaccessible,practical,
and user-friendly, and will help address important questions about direction and
possibilities.Irecommendthistoanyorganizationthatwantstoengageinafunand
productive planning process.”
—Akaya Windwood, President, Rockwood Leadership Institute
“Strategic planningcanbeesoteric,daunting,andsubjective,butitdoesn’thaveto
be. Allison and Kaye provide the framework and tools to help any organization’s
leadershipteamcreateaclear,concise,andcompellingplanthatcanbeunderstood
and operationalized by all key stakeholders. Time and again, I have turned to
StrategicPlanningforNonprofitOrganizationsasboththechartandcompasstonavigate
our planning process, and time and again, it has led us to mission fulfillment.”
—Roslyn Quarto, Executive Director,
Empowering and Strengthening Ohio’s People
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Strategic Planning
fi
for Nonpro t
Organizations
A Practical Guide for
Dynamic Times
THIRD EDITION
Michael Allison
Jude Kaye
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Coverdesign:Wiley
Copyright2015byMichaelJ.AllisonandJudithKaye.Allrightsreserved.
PublishedbyJohnWiley&Sons,Inc.,Hoboken,NewJersey.
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ISBN978-1-118-76814-3(Paperback)
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10 9 8 7 6 5 4 3 2 1
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FormyparentsLeeandMargot
whowelcomedme,forJennifermypartnerinlife,
formydaughtersSarahandMadelinewhogivemefaith
inthefuture . . . andforalloftheincrediblepeople
doingtheworkeveryday.
—MikeAllison
Idedicatethisthirdedition
tomywife,LindaVanSciver,
whoIbelievepersonifiesthevaluesandbeliefs
ofthenonprofitsector:acommitmenttohelpingothers;
believinginthegoodnessofpeopleandtheircapacity
togrowandlearn;andalwaysstrivingtohelpmakethe
worldabetterplace.
—JudeKaye
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■
Contents
AbouttheThirdEdition xi
Preface xiii
Intended Audience xiii
Structure of the Book xiv
Supporting Resources xiv
How to Use This Book xvi
A Word About Words xvi
Acknowledgments xvii
Introduction 1
Strategy and Planning 2
Why Plan? 2
What Strategic Planning Is Not 4
Keys to Effective Strategic Planning 5
What Is Strategy? 6
The Strategic Planning Process 9
Other Considerations in Strategic Planning 17
Strategic Planning Is Alive and Well! 24
Section One First Steps 27
Chapter 1 Step1:SetUpforSuccess 29
Identify Outcomes 30
Check Conditions for Success 32
Plan for Data Collection 34
Anticipating Other Needed Research 36
Design Your Strategic Planning Process 37
Create an Organization Profile 42
Chapter 2 Step2:StakeholderEngagement 59
Engage Internal Stakeholders 59
Gather Input from External Stakeholders 63
vii
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viii contents
Synthesize Stakeholder Input 65
Incorporate External Input into Your SWOT Analysis
to Update Critical Issues and Questions 66
Chapter 3 Step3:Mission,Vision,Values 77
Revisit Your Mission Statement 78
Write Your Vision Statement 84
Articulate Your Fundamental Values 87
Section Two Strategic Analysis 97
Chapter 4 Step4:EnvironmentalScan 99
When Is Scenario Planning Helpful? 100
Organize Your Research, Summarize Findings 102
Chapter 5 Step5:TheoryofChangeandProgramPortfolio 109
Needs Assessment and Value Proposition 111
Program Effectiveness 112
Competitive Analysis 114
Theory of Change 119
Draft Future Program Portfolio 122
Chapter 6 Step6:BusinessModel 139
Summarize Revenue and Expenses 139
Historical Summary and Key Questions 140
Current Program Revenue and Expenses 141
Articulate Your Business Model 143
Business Model Analysis 143
Develop Summary Findings 152
Chapter 7 Step7:OrganizationCapacity 157
Elements of Organization Capacity 158
Activities for This Step 163
Identify Requirements for Each Category of Capacity 163
Determine How to Carry Out Assessment 163
Agree on Priorities to Include in the Strategic Plan 165
Chapter 8 Step8:Leadership 173
Assess Leadership, Summarize Implications 175
Section Three Set Your Course 183
Chapter 9 Step9:CompleteYourStrategicPlan 185
Summarize Strategic Decisions 185
Draft the Complete Strategic Plan 187