Strategic Planning

There are many benefits for strategic planning including cost savings, better cash-flow, faster decision making, more efficient resource allocation, improved competitive position, more timely information, more accurate forecasts and reduced feelings of uncertainty.

To ensure success of the attaining the mission and sustainability of the non-profit, formulate long-range plans to manage opportunities and threats in light of your own strengths and weaknesses. This will help you define the non-profit’s mission and specify the social causes and issues you wish to impact. You can then develop strategies for positioning your solution and set specific and measurable timelines, milestones and benchmarks.

The steps are basic:

1.       Identify the strengths, weaknesses (internal environment) and opportunities and threats (external influences).

2.       Formulate the short and long-term strategies (mission, objectives and policies)

3.       Implement the strategic plan (programs, budgets, procedures)

4.       Evaluate the performance of the strategy (quarterly or annual basis)

5.       Take follow-up action through continuous feedback

Beware of common pitfalls social entrepreneurs encounter:

• Misunderstand the attractiveness of the industry
• Possess no real competitive advantage
• Pursue an unattainable competitive position
• Compromise strategy for growth
•  Fail to communicate strategy to employees
• No strategic planning (because lack of time, knowledge, skill, trust and openness)

Consider using a project management style of strategic planning with incremental goal attainment from start-up to exit.  Establish bench-marking and milestones. Bench-marking is the practice of comparing your performance and processes to that of a comparable non-profit. This aids you in determining your shortcomings and helps to improve your performance.  

Milestones are tangible goals you make to determine your progress.  This practice can assist you in avoiding costly mistakes caused by missing critical steps in your plan.  It is also good for re-planning as it is based upon continuous feedback.