The Strategic Planning Process

Strategic Planning generally refers to the systematic process where an organization envisions its future direction by analyzing its current position and then developing a set of goals or objectives and an action plan to achieve them. Strategic Planning models vary greatly depending on the type of organization and the expected results of the planning process. The strength of this process lies in the flexibility of the plan and its ability to act in response to unforeseen factors and new opportunities.

Guidestar has published an article written by Bill Hoffman of Bill Hoffman and Associates, LLC outlining a four-step strategic planning process:

1.       Get input from major stakeholders. Try to be as inclusive as possible in order to get a variety of ideas and recommendations.  The article recommends using the classic SWOT analysis (strengths, weaknesses, opportunities and threats) to gather information. Recently, there has been a preference by some groups for using a SOAR analysis (strengths, opportunities, aspirations and results). Again this will depend on the type of organization and the expected outcomes.

SWOT Analysis

2.       Uncover themes. There will be some overlap in ideas, so try to blend these into common themes in order to concentrate on the big picture.  Competing themes will arise “…and that’s all right. This is not the time to decide which ideas to follow through on; it’s just to clarify the ideas that have been offered.”

3.        Agree on priorities. Not every idea can be implemented. Keep the focus “narrow enough to be successful.” Limit the plan to four to six focus areas for the next couple of years.

4.       Set measurable goals. This is important as it will allow the organization to track its progress. Keep in mind that the board and staff will have tasks for reaching the goals. Also, be sure to have deadlines for each goal.

This is a simple, yet powerful process that will give an organization’s board, staff and volunteers a sense of ownership and increase their commitment since they have been involved throughout the entire process.

Try it out!

New Year’s Resolution Poll

While the typical New Year’s resolution is abandoned somewhere around the long Martin Luther King, Jr. holiday weekend, there is a certain feeling of “anything’s possible” in the air during these first few weeks of January.  Now really can be a good time to set some goals.  Go ahead, think big.  If you don’t stretch yourself to do more, why bother?

Take a few pointers from weight-loss experts and put these strategies to work in your downtown to make your resolutions a reality:

Write it down – Make sure your goals are clear and quantitative.  Write them down so you can track your success.  It also makes it more real when you can see it on paper, or better yet, chart it on a graph.

Tell a friend – Make sure people know what you are going to do.  They can hold you accountable and keep you on track. They may even offer to help!

Make it reasonable – As it didn’t take two weeks to pack on an extra 25 lbs, the historic facades in your district weren’t all covered over in a matter of a few months.  Go ahead and challenge yourself, but don’t expect to have a completely rehabbed, fully occupied downtown by June, either. 

Pace yourself – As we age, it seems the years fly by, but in reality a year is a long time.  Break out your big goals into some chunks so you can have incremental success along the way.

Now, take the first VMS poll of the new year.

Designing a Marketplace

Is your economic restructuring committee effective?  Challenges like recruiting businesses and interpreting expensive and technical market studies discourage eager volunteers. There’s no immediate result after hours of meetings and planning.  Pressure to see results from business owners, local government and the community compounds the frustration. It’s easy for this committee, in particular, to go inactive.

Main Street organizations all over America have faced this challenge, and many are beating it–by creating compelling and specific visions for their downtown marketplace.  To illustrate the best strategies Todd Barman, Program Officer for the National Trust Main Street Center (NTMSC), features Altavista, a Virginia Main Street designated community, in a recent issue of Main Street Now. 

Barman says “It will take a concrete and compelling vision of a fully functioning future marketplace to attract the entrepreneurs and investors who will eventually realize [their] vision.”   What works for Main Street communities is similar to the strategy of successful commercial developers that are good at communicating their development vision using verbal descriptions, architectural renderings, and diagrams/schematics.  Along with this are specific steps for filling vacancies in historic commercial districts.

“The NTMSC is working to empower Main Street programs to use similar tools to attain similar results.”

Check out the details in the Main Street at Work column of the July/August 2010 issue of Main Street Now, The Journal of The National Trust Main Street Center.

Making lemonade

Norm Brodsky is a writer for Inc. Magazine.  He is the co-writer of: The Knack: How Street Smart Entrepreneurs Learn to Handle Whatever Comes Up.  He also has started six businesses.  Lets call him an entrepreneur. 

In the April issue of Inc, Brodsky writes in his Street Smarts Column about lessons to use when your original plan goes out the window.  Here is a brief summary, but this is a must read:

1. Ask your customers what they need

2. Be flexible

3. Quit complaining

4. Make a new Plan NOW

5. Say “Yes” when others are saying “Maybe”

Keep your books in order

Want to be sure your small business never becomes a big business? A surefire method to ensure a lack of success is to have shoddy accounting practices.  Knowing where your money is, how much of it there is, and when you can expect more are key to proper business planning.  Without a plan, your endeavor is doomed to haphazard success, at best.

Jay Goltz, an entrepreneur and author of The Street-Smart Entrepreneur, writes on CNNMoney.com that,

These days, of course, we are not enjoying a vibrant economy. One consequence is that many entrepreneurs find themselves confronting serious issues that should have been resolved years ago. These issues often involve accounting.

He continues to describe a businessman who was counting booked orders as receivables, thus confusing the time frame at which he could expect to collect the funds.  It sounds like a very small error, but this error was threatening the health of the company, as the information for planning was incorrect.

While the article is geared for small businesses, nonprofits need to keep an eye on their books, too.  While the staff often does the actual bookeeping and completes the day to day transactions, the board of directors is legally obligated to provide sufficient oversight.  That means that the treasurer should provide monthly reports to the board.  More information regarding best practices for nonprofits can be found at Boardsource.org.