Robert M. Sheehan, Jr., Ph.D. Principal Sheehan Nonprofit Consulting @SheehanImpact [email protected] 301.523.1864

Robert M. Sheehan, Jr., Ph.D.

PrincipalSheehan Nonprofit Consulting

@SheehanImpact

[email protected]

© Robert M. Sheehan, Jr., Ph.D., 2012

Robert M. Sheehan, Jr., Ph.D.

PrincipalSheehan Nonprofit Consulting

@SheehanImpact

[email protected]

© Robert M. Sheehan, Jr., Ph.D., 2012

BREAKTHROUGHSTRATEGY

1

Strategies for Organizational Success II - June 27, 2012

2

Strategies for Organizational Success Series

Sponsors:

Additional Support:

Hudson Family Fund

ABOUT ROB SHEEHAN

*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA

Program

*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork

*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA

Program

*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork

3

ABOUT ROB SHEEHAN

Ph.D., The Ohio State University College of Business School of Public Policy & Management

Organization Development, Leadership, Organization Effectiveness

Published Researcher

Ph.D., The Ohio State University College of Business School of Public Policy & Management

Organization Development, Leadership, Organization Effectiveness

Published Researcher

4

ABOUT ROB SHEEHAN

CEO, 18 years, Two National Nonprofits

AΣΦ Educational Foundation, 1981-1990

LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising

Executive), 1986-2004

CEO, 18 years, Two National Nonprofits

AΣΦ Educational Foundation, 1981-1990

LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising

Executive), 1986-2004

5

6

DESIGN FOR THE DAY

To provide you with a working knowledge of the Breakthrough Strategy approach by creating a completed “draft” strategy for your organization

To demonstrate the steps you can go through with a Strategy Development Group to develop your “official” strategy

To provide you with a working knowledge of the Breakthrough Strategy approach by creating a completed “draft” strategy for your organization

To demonstrate the steps you can go through with a Strategy Development Group to develop your “official” strategy

7

THE IMPORTANCE OF LEADERSHIP

Nothing we discuss today can be successfully utilized within an organization without effective quality leadership.

Ethical, Inclusive, Authentic, Empowering

Contributes toward building a more just, equitable and thriving society

Nothing we discuss today can be successfully utilized within an organization without effective quality leadership.

Ethical, Inclusive, Authentic, Empowering

Contributes toward building a more just, equitable and thriving society

8

QUICK SURVEY

How many of you think that most people in the nonprofit

world work very hard?


world work very hard?

9

QUICK SURVEY


world are smart?


world are smart?

10

LEAP OFREASON

“Incremental Change is Not Enough”

-Mario Morino

Leap of Reason

“Incremental Change is Not Enough”

-Mario Morino

Leap of Reason

11

BREAKTHROUGH STRATEGY

The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact.

The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact.

12

NEW PATTERNS OF THOUGHT

“The problems we face cannot be solved using the same patterns of thought that were used to create them.”

- Albert Einstein

“The problems we face cannot be solved using the same patterns of thought that were used to create them.”

- Albert Einstein

13

BEING UNREASONABLE

“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”

- George Bernard Shaw

“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”


14

“I thought I would drop you a note to tell you how much I enjoyed your workshop on strategic planning at the NeighborWorks conference. It has fundamentally changed the way I think about this issue. Many thanks for making the time to share this information with agencies like ours.”

- Denise MatykaExecutive Director

Project Home, Madison, WI

“I thought I would drop you a note to tell you how much I enjoyed your workshop on strategic planning at the NeighborWorks conference. It has fundamentally changed the way I think about this issue. Many thanks for making the time to share this information with agencies like ours.”

- Denise MatykaExecutive Director

Project Home, Madison, WI15

WHAT ISSTRATEGY?

Strategy is more than strategic planning Strategy is not just a collection of goals

and budget forecasts Most organizations have plenty of

plans, but very little strategy Strategy is an integrated and coherent

cause & effect performance story which has a beginning, middle, and end..

Strategy is more than strategic planning Strategy is not just a collection of goals

and budget forecasts Most organizations have plenty of

plans, but very little strategy Strategy is an integrated and coherent

cause & effect performance story which has a beginning, middle, and end..

16

WHAT ISSTRATEGY?

Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future

Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future

17

WHAT ISEFFECTIVE PERFORMANCE?

For Profits: $$$$$$$$$$

Non Profits: Mission Accomplishment



18

WHAT ISNONPROFIT STRATEGY?

Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future

Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future

19

NONPROFIT STRATEGY

The purpose of having a strategy is to guide the organization toward its desired future.

Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.



20

NONPROFIT STRATEGY

The “cause & effect performance story” tells how you will get from “here to there” while . . .

. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.



21

PRODUCING HIGH PERFORMANCE

• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?

• The essential elements of organization performance:• Financing• Staffing• Programs/Services



22

PERFORMANCE SYSTEM QUESTIONS

• What programs/services do we want to provide to make a mission impact?

• How will we staff the programs/services?

• How will we fund the operation?




23

CYCLE OF SUSTAINABLE

PERFORMANCE• Positive reinforcing cycle

• Sustains all the parts

• Parts feed & sustain one another

• All parts are interdependent

• There is a cause & effect logic to how they interact

• Strategy is the “story” that guides this sustainable performance

• Positive reinforcing cycle






24

STRATEGY PROCESSDESIGN ISSUES

Meaningful Involvement of Stakeholders

Consider Board Assessment if not completed in prior two years

Select Strategy Development Group with credibility and legitimacy

Not too long, not too short

Meaningful Involvement of Stakeholders

Consider Board Assessment if not completed in prior two years

Select Strategy Development Group with credibility and legitimacy

Not too long, not too short25

SELECTING YOUR STRATEGY DEVELOPMENT

GROUP

Representative of key stakeholder groups

Legitimacy and Credibility Assure formal approval by Board

of Directors Limit group to 15 – 20 people

Representative of key stakeholder groups

Legitimacy and Credibility Assure formal approval by Board

of Directors Limit group to 15 – 20 people

26

STRATEGYDEVELOPMENT PROCESS

Establish Mission Gap Adopt Aspirational Mindset for

Creating Vision Adopt Aspirational Mindset for

Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative

Establish Mission Gap Adopt Aspirational Mindset for



27

THE BREAKTHROUGHSTRATEGY WORKBOOK

A guide for strategy development that follows the Mission Impact process.

Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).

An example of the final output from a strategy development process is included on pp. 22 – 28.

A guide for strategy development that follows the Mission Impact process.

Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).

An example of the final output from a strategy development process is included on pp. 22 – 28.

28

STRATEGYDEVELOPMENT MAP

29

Your

Mission Impact

Your

Mission Impact

30

MISSION

In your own words, please write what you say is the mission of your organization. One way to think of a “mission” is that it is a stated intention to make a “difference” in a person, place, or thing.” Make sure to specify the “person, place, or thing” and the “difference” the organization intends to make.

In your own words, please write what you say is the mission of your organization. One way to think of a “mission” is that it is a stated intention to make a “difference” in a person, place, or thing.” Make sure to specify the “person, place, or thing” and the “difference” the organization intends to make.

31

MISSION STATEMENTS

Typical:“To provide services to the Homeless

in Charles County.”

Instead of:“To provide services to the Homeless

in Charles County which enhance their economic self-sufficiency.”

Typical:“To provide services to the Homeless

in Charles County.”

Instead of:“To provide services to the Homeless

in Charles County which enhance their economic self-sufficiency.”

32

MISSION AIMAND IMPACT

AIM: Specify exactly what “persons, places, or things” the organization aims to impact:

IMPACT: Specify the difference your organization intends to make in the condition of those your organization is aiming for:

AIM: Specify exactly what “persons, places, or things” the organization aims to impact:

IMPACT: Specify the difference your organization intends to make in the condition of those your organization is aiming for:

33

INSPIRATIONAL MISSION

“Does our mission express the result of greatest intrinsic significance to us?”

“What further impact/result are we making?”

“What result do we most care about?

“Does our mission express the result of greatest intrinsic significance to us?”

“What further impact/result are we making?”

“What result do we most care about?

34

MISSIONACCOMPLISHMENT

““Explain how you determine whether your organization is or is not accomplishing the mission. Please list any results, outcomes, and specific evidence you look at to make this determination?”

““Explain how you determine whether your organization is or is not accomplishing the mission. Please list any results, outcomes, and specific evidence you look at to make this determination?”

35

Reliable MeasuresA “reliable measure” collects evidence

which could be confirmed by an objective observer.

Reliable Impact MeasuresA “reliable impact measure” is a reliable

measure which represents an impact—difference made—on the condition of a person, place, or thing outside the organization.

Reliable MeasuresA “reliable measure” collects evidence

which could be confirmed by an objective observer.

Reliable Impact MeasuresA “reliable impact measure” is a reliable

measure which represents an impact—difference made—on the condition of a person, place, or thing outside the organization.

36

MISSION ACCOMPLISHMENT MEASURES

Reliable impact measures which relate directly to the accomplishment of an organization mission can be called “Mission Accomplishment Measures”

Reliable impact measures which relate directly to the accomplishment of an organization mission can be called “Mission Accomplishment Measures”

37

WE’RE LOST BUT MAKING GOOD TIME

“Here’s the problem in a nutshell: We don’t manage to outcomes, thus greatly diminishing our collective impact.”

-Mario Morino, Leap of Reason

“Here’s the problem in a nutshell: We don’t manage to outcomes, thus greatly diminishing our collective impact.”

-Mario Morino, Leap of Reason

MISSION ACCOMPLISHMENT MEASURES

Help coordinate action so end result is understood

Help judge whether program is working – should be expanded, cut, eliminated

Learn from mistakes Inform resource allocation Connect to CEO Evaluation Show results to Funders!!!

Help coordinate action so end result is understood

Help judge whether program is working – should be expanded, cut, eliminated

Learn from mistakes Inform resource allocation Connect to CEO Evaluation Show results to Funders!!!

39

CHARLES COUNTY HOMELESS SERVICES

Mission

To end homelessness in Charles County

Mission Accomplishment Measure

Number of homeless people in Charles County, as reported by county

officials.

Mission

To end homelessness in Charles County


Number of homeless people in Charles County, as reported by county

officials.

40

THOMPSONACADEMY

MissionTo prepare young people for excellence in

post-secondary education

Mission Accomplishment MeasuresPercentage of graduates enrolled in

college after graduationSatisfaction of preparation survey scores of

graduates two years following graduation

MissionTo prepare young people for excellence in

post-secondary education

Mission Accomplishment MeasuresPercentage of graduates enrolled in

college after graduationSatisfaction of preparation survey scores of

graduates two years following graduation

41

FRANKLIN COUNTYCHILDREN’S SERVICES

Mission*

Elimination of maltreatment of children

Mission Accomplishment Measure*

Number of reported and substantiated cases of child maltreatment

*1992 Version

Mission*

Elimination of maltreatment of children

Mission Accomplishment Measure*

Number of reported and substantiated cases of child maltreatment

*1992 Version

42

MOTHERS AGAINSTDRUNK DRIVING

Mission

To stop drunk driving and to support victims of this violent crime


Number of deaths from drunk driving crashes

Mission

To stop drunk driving and to support victims of this violent crime


Number of deaths from drunk driving crashes

43

MERRILL COUNTYLITERACY COUNCIL

Mission

To assure that all adults age 16 or older in Merrill County are literate.


The literacy rate in Merrill County, as reported by county officials.

Mission

To assure that all adults age 16 or older in Merrill County are literate.


The literacy rate in Merrill County, as reported by county officials.

44

“MISSIONGAP”

Describe the current condition of the “persons, places, or things” for whom/which the organization intends to make a difference.

What would their condition be like, ideally?

Describe the current condition of the “persons, places, or things” for whom/which the organization intends to make a difference.

What would their condition be like, ideally?

45

NORTH TEXASFOOD BANK

46


Mission Gap

With 100,000 adults, age 16 and older, living in Merrill County, the Mission

Gap is 20,000 adults.

Mission Gap

With 100,000 adults, age 16 and older, living in Merrill County, the Mission

Gap is 20,000 adults.

47

YOURMISSION GAP

Do Do youyou need a need a Breakthrough Breakthrough

Strategy?Strategy?

Do Do youyou need a need a Breakthrough Breakthrough

Strategy?Strategy?

48


✔ Establish Mission Gap Adopt Aspirational Mindset for



✔ Establish Mission Gap Adopt Aspirational Mindset for



49

The Power

of

Vision

The Power

of

Vision

50

ANALYTICALVISIONING

Analyze Internal Capabilities & Predictable Changes

Analyze External Environment & Predictable Changes

Forecast (Extrapolate) Reasonable Future

Establish “Vision” as “Best Case Scenario”

Analyze Internal Capabilities & Predictable Changes

Analyze External Environment & Predictable Changes

Forecast (Extrapolate) Reasonable Future

Establish “Vision” as “Best Case Scenario”

51

ASPIRATIONALVISIONING

Dream with no constraints Create an Ideal “Future Picture” based

on what is Inspirational and Drives Passion

Create New Internal Capabilities Search Environment for Opportunity

Dream with no constraints Create an Ideal “Future Picture” based

on what is Inspirational and Drives Passion

Create New Internal Capabilities Search Environment for Opportunity

52

DREAM

“Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’”


“Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’”


53

CHANGINGTHE WORLD

“Because the people who are crazy enough to think they can change the world are the ones who do.”

-Steve Jobs

“Because the people who are crazy enough to think they can change the world are the ones who do.”

-Steve Jobs

54

DIVINEMADNESS

“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”

-Longfellow

“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”

-Longfellow

55

STRATEGICINTENT

Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”

- Hamel & Prahalad

Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”

- Hamel & Prahalad

56

IDEALIZEDDESIGN

“In this process the designers assume the organization being planned for was completely destroyed last night, but its environment remains exactly as it was. Then they try to design that organization with which they would replace the existing organization right now, if they were free to replace it with any organization they wanted . . .”

-Russell L. Ackoff

“In this process the designers assume the organization being planned for was completely destroyed last night, but its environment remains exactly as it was. Then they try to design that organization with which they would replace the existing organization right now, if they were free to replace it with any organization they wanted . . .”

-Russell L. Ackoff

57

IDEALIZEDDESIGN

“The power of Idealized Design is that when you say that the system was destroyed last night, you not only destroy the system, you destroy all of the constraints with it. That is freedom and that is what leads to transformation.”

-J. Gerald Suárez

“The power of Idealized Design is that when you say that the system was destroyed last night, you not only destroy the system, you destroy all of the constraints with it. That is freedom and that is what leads to transformation.”

-J. Gerald Suárez

58

CREATIVETENSION

“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”

- Peter Senge

“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”

- Peter Senge

59

VISION

With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:

“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.

With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:

“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.

60

Why dream a vision that can never come true?

Why dream a vision that can never come true?

61

VISION

Visions give us something to aspire to.

Visions can inspire others to help make dreams come true.

Visions provide meaning to the “day to day.”

Visions give us something to aspire to.

Visions can inspire others to help make dreams come true.

Visions provide meaning to the “day to day.”

62

How should leaders establish vision?

How should leaders establish vision?

63

POSITIONAL LEADERSHIP

Leadership by “lamination”

vs.

Leadership as a catalyst

Leadership by “lamination”

vs.

Leadership as a catalyst

64

TRANSFORMATIONALLEADERSHIP MODEL

PARTICIPANTSLEADERS

65

WHAT FOLLOWERS WANT

“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”

-Kouzes & Posner,

2009

“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”

-Kouzes & Posner,

2009

66


Vision Highlights

*Staff of 24 with competitive comp & professional development plans

*Increase in volunteers by 3,000%

*Fully engaged Board with strong community connections

*Endowment of $15 million

Vision Highlights

*Staff of 24 with competitive comp & professional development plans

*Increase in volunteers by 3,000%

*Fully engaged Board with strong community connections

*Endowment of $15 million

67


✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for






68

The Importance

Of Goals

The Importance

Of Goals

69

VISION TO ACTION:GOALS

Direct attention to relevant activities

Affect intensity of effort

Affect persistence

Strategic Stretch Goals: Outcome-Based & SMART

Direct attention to relevant activities

Affect intensity of effort

Affect persistence

Strategic Stretch Goals: Outcome-Based & SMART

70

OUTCOME VS. ACTIVITY GOALS

“To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2012.”

“To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2012.”

71

OUTCOME VS. ACTIVITY GOALS

“To receive $300,000 in contributions from our organization’s previous donors by December 1, 2012.”

“To receive $300,000 in contributions from our organization’s previous donors by December 1, 2012.”

72

MANAGE FOROUTCOMES

“While it may appear to be an overstatement, it is nonetheless true: the biggest single mistake managers make is that they manage activities instead of managing results. The cause is usually very simple: they cannot easily see the difference between activities and results.”

-Drs. Jeffrey & Laurie Ford

Hotwired Management

“While it may appear to be an overstatement, it is nonetheless true: the biggest single mistake managers make is that they manage activities instead of managing results. The cause is usually very simple: they cannot easily see the difference between activities and results.”

-Drs. Jeffrey & Laurie Ford

Hotwired Management

73

SMARTGOALS*

Specific Measurable Attainable Relevant Time-bound

*Traditional version

Specific Measurable Attainable Relevant Time-bound

*Traditional version

74

ATTAINABLE GOALS

Set with at least 80% chance of success

Sounds reasonable – failure can be followed by negative consequences

Good for generating “quick wins” Good for Learning Goals in new

domains Good for a team that needs to build

confidence

Set with at least 80% chance of success

Sounds reasonable – failure can be followed by negative consequences

Good for generating “quick wins” Good for Learning Goals in new

domains Good for a team that needs to build

confidence75

ATTAINABLE GOALS

What might be the downside of setting goals that are reasonably “Attainable?”


76

ATTAINABLE GOALS


Goal research: The more difficult the goal, the higher

the level of performance.


Goal research: The more difficult the goal, the higher

the level of performance.

77

SMARTGOALS*

Specific Measurable Aggressive, yet Achievable Relevant Time-bound

*Doug Smith version

Specific Measurable Aggressive, yet Achievable Relevant Time-bound

*Doug Smith version

78

AGGRESSIVEYET ACHIEVABLE

Allows you to maximize performance, but with a higher chance of failure

If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment

Allows you to maximize performance, but with a higher chance of failure

If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment

79

SMARTCOMPARISONS

ATTAINABLE

vs.

AGGRESSIVE & ACHIEVABLE

Which SMART formula is best?

ATTAINABLE

vs.

AGGRESSIVE & ACHIEVABLE

Which SMART formula is best?

80

SMARTCOMPARISONS

ATTAINABLEBest when the priority is to accurately

predict performance of the current system

AGGRESSIVE & ACHIEVABLEBest when the priority is to maximize

the performance of the current system

ATTAINABLEBest when the priority is to accurately

predict performance of the current system

AGGRESSIVE & ACHIEVABLEBest when the priority is to maximize

the performance of the current system

81

SMARTGOALS

Write out a goal that you are currently working on and write

it so it fits the “SMART” guidelines.

Write out a goal that you are currently working on and write

it so it fits the “SMART” guidelines.

82

A NEW ‘A’FOR SMART*

Specific Measurable *Almost Impossible Relevant Time-bound

*Rob Sheehan version

Specific Measurable *Almost Impossible Relevant Time-bound

*Rob Sheehan version

83

GREATLEADERS

Great Leaders Have a Healthy Disregard for the Impossible

Great Leaders Have a Healthy Disregard for the Impossible

84

IMPOSSIBLE . . .

“Space travel is utter bilge.”

- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956

“Space travel is utter bilge.”

- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956

85

IMPOSSIBLE . . .

“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”

- Lee Deforest, American Inventor (1873-1961)

“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”

- Lee Deforest, American Inventor (1873-1961)

86

IMPOSSIBLE . . .

“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”

- The Boston Post, Editorial, 1865

“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”

- The Boston Post, Editorial, 1865

87

IMPOSSIBLE . . .

“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”

- Maj. Gen. John Kerr, U.S. Army (1878-1955)

“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”

- Maj. Gen. John Kerr, U.S. Army (1878-1955)

88

IMPOSSIBLE . . .

“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”

- Dionysius Lardner, English Scientist

(1793-1859)

“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”

- Dionysius Lardner, English Scientist

(1793-1859)

89

TRADITIONAL ANALYTICAL GOALS“This is a forecast of the result we should be

able to produce if we work hard at it.”

ASPIRATIONAL STRETCH GOALS“This is the very best result we can

imagine possible (1% chance) and we have no idea how to make it happen.”

ASPIRATIONAL STRETCH GOALS“This is the very best result we can

imagine possible (1% chance) and we have no idea how to make it happen.”

90

STRETCHGOALS

You can’t think outside of the box, when you are

standing in it!

You can’t think outside of the box, when you are

standing in it!

91

STRETCHGOALS

You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it.

You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it.

92

STRETCHGOALS

Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning.

Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning.

93

STRETCHGOALS

You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play.

You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play.

94

SAFE - FAILENVIRONMENT

“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”

The Failure Tolerant Leader

Harvard Business Review, 2002

“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”

The Failure Tolerant Leader

Harvard Business Review, 2002

95

STRETCHGOALS

You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks.

You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks.

96

Pessimists & Optimists Unite

Use “Flexible Optimism”

Pessimists & Optimists Unite

Use “Flexible Optimism”

97

STRETCHGOALS

Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high.

Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high.

98

STRATEGICINTENT

“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”

-Gary Hamel & C.K. Prahalad

“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”

-Gary Hamel & C.K. Prahalad

99

THE WALLSTREET JOURNAL

“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”

-Jack Welch, March 8, 1994

“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”

-Jack Welch, March 8, 1994 100

START WITH THE END IN MIND THE END IN MIND

*When brainstorming new ways to go about accomplishing a goal,

“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.

*When brainstorming new ways to go about accomplishing a goal,

“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.

101

STRATEGIC STRETCHGOALS

Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization

toward your vision and help close your Mission Gap most effectively

Meet the Almost Impossible SMART criteria

Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization

toward your vision and help close your Mission Gap most effectively

Meet the Almost Impossible SMART criteria

102

CHALLENGES WITHSTRETCH GOALS

Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals.

Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals.

103


You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that.

You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that.

104


The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else.

The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else.

105


You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .

. . . . . unless you are Dilbert’s boss.

You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .

. . . . . unless you are Dilbert’s boss.

106

107

The biggest challenge is setting Strategic Stretch

Goals is overcoming the Fear of Failure that has been bred

within us.

The biggest challenge is setting Strategic Stretch

Goals is overcoming the Fear of Failure that has been bred

within us.

108

YOU FAILURE!!!

“I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!”

“I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!”

109

Accomplishment:Any result of positive Magnitude

Success:Any accomplishment which meets or

exceeds its intended result

Failure:To fall short of an intended result

Accomplishment:Any result of positive Magnitude

Success:Any accomplishment which meets or

exceeds its intended result

Failure:To fall short of an intended result

110

OHIO STATEFUNDRAISING PROJECT

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

1992 $150,000 $143,000

111

LEADERSHAPEPARTICIPANTS

0

500

1000

1500

2000

2500

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

112

FAILURE WITHTRADITIONAL GOALS

“We messed up.”“We messed up.”

113

FAILURE WITHSTRETCH GOALS

“Look at our results!”

“What could we have done differently?”

“I’m glad we went for it, but I wish we had accomplished it 100%”

“Look at our results!”

“What could we have done differently?”

“I’m glad we went for it, but I wish we had accomplished it 100%”

114

FAILURE ANDCREATIVE TENSION

“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”

- Peter Senge, The Fifth Discipline

“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”

- Peter Senge, The Fifth Discipline

115

FAILURE ANDINNOVATION

“Failure is just a part of the culture of innovation. Accept it and grow stronger.”

- Albert Yu, SVP, Intel Corp

“Failure is just a part of the culture of innovation. Accept it and grow stronger.”

- Albert Yu, SVP, Intel Corp

116

GETTINGSMARTER FASTER

“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”

- Tom Peters, Fast Company, December 2001

“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”

- Tom Peters, Fast Company, December 2001

117

GOALS RECAP

Attainable Goals: 80% attainable; good if the priority is high predictability

Aggressive Goals: 35% attainable; good for improving performance

Almost Impossible: 1% attainable; good for innovation and breakthrough performance

Attainable Goals: 80% attainable; good if the priority is high predictability

Aggressive Goals: 35% attainable; good for improving performance

Almost Impossible: 1% attainable; good for innovation and breakthrough performance

118

What kind of future do you want?

What kind of future do you want?

119


Unrestricted grants from all sources will increase by 300 percent to $2 million by June 30, 2015.

The number of certified literacy teaching volunteers will increase by 500+% to 100 by June 30, 2015.

Financial reserves will be increased by $400,000 by June 30, 2015.

Unrestricted grants from all sources will increase by 300 percent to $2 million by June 30, 2015.

The number of certified literacy teaching volunteers will increase by 500+% to 100 by June 30, 2015.

Financial reserves will be increased by $400,000 by June 30, 2015.

120


An endowment fundraising campaign for $5 million will be initiated and a lead gift of $500,000 will be pledged by June 30, 2015.

The literacy rate in Merrill County, as reported by county officials, will be 85 percent by June 30, 2015.

An endowment fundraising campaign for $5 million will be initiated and a lead gift of $500,000 will be pledged by June 30, 2015.

The literacy rate in Merrill County, as reported by county officials, will be 85 percent by June 30, 2015.

121



Creating Vision ✔ Adopt Aspirational Mindset for





122

Clarity on Your Current RealityClarity on Your Current Reality

123

VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK

ELEMENTS

Aspirations Strategy Organizational

Skills Human

Resources

Aspirations Strategy Organizational

Skills Human

Resources

Systems and Infrastructure

Organizational Structure

Culture

Systems and Infrastructure

Organizational Structure

Culture

124

Aspirations: An organization’s mission, vision, and overarching goals, which collectively articulate its common sense of purpose and direction

Aspirations: An organization’s mission, vision, and overarching goals, which collectively articulate its common sense of purpose and direction


ELEMENTS

125

Strategy: The coherent set of actions and programs aimed at fulfilling the organizations’ overarching goals

Strategy: The coherent set of actions and programs aimed at fulfilling the organizations’ overarching goals


ELEMENTS

126

Organizational Skills: The sum of the organization’s capabilities, including such things (among others) as performance measurement, planning, resource management, and external relationship building

Organizational Skills: The sum of the organization’s capabilities, including such things (among others) as performance measurement, planning, resource management, and external relationship building


ELEMENTS

127

Human Resources: The collective capabilities, experiences, potential and commitment of the organization’s board, management team, staff, and volunteers

Human Resources: The collective capabilities, experiences, potential and commitment of the organization’s board, management team, staff, and volunteers


ELEMENTS

128

Systems and Infrastructure: The organization’s planning, decision-making, knowledge management, and administrative systems, as well as the physical and technological assets that support the organization

Systems and Infrastructure: The organization’s planning, decision-making, knowledge management, and administrative systems, as well as the physical and technological assets that support the organization


ELEMENTS

129

Organizational Structure: The combination of governance, organizational design, interfunctional coordination, and individual job descriptions that shapes the organization’s legal and management structure

Organizational Structure: The combination of governance, organizational design, interfunctional coordination, and individual job descriptions that shapes the organization’s legal and management structure


ELEMENTS

130

Culture: The connective tissue that binds together the organization, including shared values and practices, behavior norms, and most important, the organization’s orientation towards performance

Culture: The connective tissue that binds together the organization, including shared values and practices, behavior norms, and most important, the organization’s orientation towards performance


ELEMENTS

131

VPP FRAMEWORK

132

SYSTEMS THINKINGAPPROACH

Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Programs/Services

It is the System, the Whole, which allows for Mission Impact

An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System

Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Programs/Services

It is the System, the Whole, which allows for Mission Impact

An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System

133

YOURSWOTs

Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?

Weaknesses? Opportunities? External threats?

Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?

Weaknesses? Opportunities? External threats?

134

SWOTINTERACTIONS

Identify possible interactions between each SWOT which may be of positive or negative consequence

For example, the interaction of a Weakness & Threat may demonstrate a need for “damage control”

The interaction of a Strength & Opportunity may demonstrate a “leverage point”

Identify possible interactions between each SWOT which may be of positive or negative consequence

For example, the interaction of a Weakness & Threat may demonstrate a need for “damage control”

The interaction of a Strength & Opportunity may demonstrate a “leverage point”

135




Setting Strategic Stretch Goals ✔ Discern SWOTs Create Strategy Narrative



Setting Strategic Stretch Goals ✔ Discern SWOTs Create Strategy Narrative

136

The Role of Strategy

The Role of Strategy

137

WHAT ISSTRATEGY?

Strategy is more than strategic planning

Strategy is not just a collection of goals and budget forecasts

Most organizations have plenty of plans, but very little strategy

Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end..

Strategy is more than strategic planning

Strategy is not just a collection of goals and budget forecasts

Most organizations have plenty of plans, but very little strategy

Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end..

138

WHAT ISSTRATEGY?

Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future.

Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future.

139

WHAT ISEFFECTIVE PERFORMANCE?





140

WHAT IS NONPROFIT STRATEGY?

Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future.

Nonprofit strategy is an integrated and coherent explanation of how a nonprofit organization is going to accomplish its mission of making a difference for society in the future.

141

NONPROFIT STRATEGY





142

NONPROFITSTRATEGY





143

PRODUCING HIGH PERFORMANCE





144

PERFORMANCE SYSTEM QUESTIONS







145

CYCLE OF SUSTAINABLE

PERFORMANCE• Positive reinforcing cycle






• Positive reinforcing cycle






146

WHAT IS YOUR STRATEGY?

Can you say what your strategy is?

Can you “name that tune?”

Can you say what your strategy is?

Can you “name that tune?”

147

WHAT IS YOUR STRATEGY “TUNE?”

A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.

Everyone in the organization should know the strategy as well as they can recognize a popular tune.

A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.

Everyone in the organization should know the strategy as well as they can recognize a popular tune.

148

STRATEGYNARRATIVE

A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.

Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.

As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.

A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.

Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.

As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.

149

STRATEGYNARRATIVE

“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”

- D. J. Collins & M. G. RutlandHarvard Business Review, 2008

“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”

- D. J. Collins & M. G. RutlandHarvard Business Review, 2008

150

How does an organization go about creating its Strategy & Strategy

Narrative?

How does an organization go about creating its Strategy & Strategy

Narrative?

151

STRATEGYDEVELOPMENT

Review each of your SWOTs and explain what its role will be in pursuing your vision & goals.

Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.

These build the “themes” of your Strategy Narrative

Review each of your SWOTs and explain what its role will be in pursuing your vision & goals.

Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.

These build the “themes” of your Strategy Narrative

152

EXAMINE EACHSWOT

What strategic action(s) should we take with respect to this SWOT?

A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.

Remember that you want to Leverage Strengths, Fortify Weaknesses, Seize Opportunities, Block Threats.

What strategic action(s) should we take with respect to this SWOT?

A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.

Remember that you want to Leverage Strengths, Fortify Weaknesses, Seize Opportunities, Block Threats.

153

STRATEGYDEVELOPMENT

Evaluate Weaknesses & Threats

Look for Leverage & Opportunity

Evaluate Weaknesses & Threats

Look for Leverage & Opportunity

154

EVALUATE WEAKNESSES AND THREATS

Look at interactions of Weaknesses and Threats for necessary “damage control”

Evaluate all Weaknesses and Threats Look at interactions of Weaknesses

and Threats with Strengths for possible solutions

Fortify Weaknesses as necessary and Block relevant Threats

Look at interactions of Weaknesses and Threats for necessary “damage control”

Evaluate all Weaknesses and Threats Look at interactions of Weaknesses

and Threats with Strengths for possible solutions

Fortify Weaknesses as necessary and Block relevant Threats

155

LOOK FOR LEVERAGE & OPPORTUNITY

Focus on the Strategic Stretch Goals What can you use from the current

reality and SWOTs to catapult forward?

Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas

Focus on the Strategic Stretch Goals What can you use from the current

reality and SWOTs to catapult forward?

Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas

156

STRATEGYNARRATIVE

A cause & effect performance story with a beginning, middle, and end

The General speaks:

A cause & effect performance story with a beginning, middle, and end

The General speaks:

“First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.”

“First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.”

157

STRATEGYNARRATIVE

Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward

Be sure to have strong levers Integrate and balance actions in

funding, staffing, programs/services

Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward

Be sure to have strong levers Integrate and balance actions in

funding, staffing, programs/services

158

STRATEGYEVALUATION

Assess Organization Stability & Derailers (W/T)

Are Strong Levers Engaged? Is there Sequencing of Cause & Effect? Are Interactions Balanced & Integrated

– especially among funding, staffing, programs/services?

Evaluate Assumptions





159


We will maintain a conservative, balanced budget and not increase expenses until surpluses are available. We will leverage our CEO’s talent, along with our program effectiveness, to recruit new board members who are well-connected within the county. We will secure agreements from them to be actively involved in fundraising and building community awareness of literacy issues.

We will maintain a conservative, balanced budget and not increase expenses until surpluses are available. We will leverage our CEO’s talent, along with our program effectiveness, to recruit new board members who are well-connected within the county. We will secure agreements from them to be actively involved in fundraising and building community awareness of literacy issues.

160


With initial increases in the annual fund, we will make improvements to staff compensation. As the annual fund continues to increase, we will retain a consultant to develop an integrated marketing and fundraising plan. The annual giving plan will be upgraded and fundraising training will be given to staff and board.

With initial increases in the annual fund, we will make improvements to staff compensation. As the annual fund continues to increase, we will retain a consultant to develop an integrated marketing and fundraising plan. The annual giving plan will be upgraded and fundraising training will be given to staff and board.

161


The marketing plan will raise awareness of literacy issues and help recruit more volunteers, as well as support fundraising initiatives. We will continue to expand the board with well-connected community members who are committed to giving and raising funds. We will seek significant United Way funding increases.

The marketing plan will raise awareness of literacy issues and help recruit more volunteers, as well as support fundraising initiatives. We will continue to expand the board with well-connected community members who are committed to giving and raising funds. We will seek significant United Way funding increases.

162


We will phase in these plans to balance increased costs with increased funding. As net revenues from fund-raising successes are available they will be divided among staff compensation increases, hiring new staff to manage increased numbers of volunteers, and building reserves. We will closely monitor program quality as we increase program offerings. More and more people in Merrill County will become literate.

We will phase in these plans to balance increased costs with increased funding. As net revenues from fund-raising successes are available they will be divided among staff compensation increases, hiring new staff to manage increased numbers of volunteers, and building reserves. We will closely monitor program quality as we increase program offerings. More and more people in Merrill County will become literate.

163


As we recruit new board members and annual fund donors, we will seek to identify potential major donors for an endowment campaign for $5 million, which will be launched in five years with a $500,000 lead gift. This will be a springboard to the future which will continue to increase the literacy rates in Merrill County.

As we recruit new board members and annual fund donors, we will seek to identify potential major donors for an endowment campaign for $5 million, which will be launched in five years with a $500,000 lead gift. This will be a springboard to the future which will continue to increase the literacy rates in Merrill County.

164


Getting into the Fundraising Business Strategy

Getting into the Fundraising Business Strategy

165


Key Assumptions Our CEO can recruit new board

members who are well connected within the county.

We can effectively learn how to raise money.

We can find a $500,000 lead donor.

Key Assumptions Our CEO can recruit new board

members who are well connected within the county.

We can effectively learn how to raise money.

We can find a $500,000 lead donor.

166

STRATEGYEVALUATION









167

YOUTH SERVICES ORGANIZATION

Use reserves to hire highly qualified and talented CEO to generate revenue for expansion of highly regarded program services. Maintain competitive salaries for top-notch program staff. Stabilize budget and repay reserves as revenues increase. Expand services further with additional revenue. Quality of services and staff remain high throughout expansion.

Use reserves to hire highly qualified and talented CEO to generate revenue for expansion of highly regarded program services. Maintain competitive salaries for top-notch program staff. Stabilize budget and repay reserves as revenues increase. Expand services further with additional revenue. Quality of services and staff remain high throughout expansion.

168

YOUTH SERVICES ORGANIZATION

Hire a “Hot Shot” StrategyHire a “Hot Shot” Strategy

169

EDUCATIONAL ASSOCIATION

Hire staff and mobilize volunteers to create endowment and significantly increase annual fund. Cut services and program staffing to balance budget. Increase fees for service and add services back as fees, annual fund dollars, and endowment investment income is available. Continue to increase level and quality of services as revenue is available—as well as upgrade staff quality.

Hire staff and mobilize volunteers to create endowment and significantly increase annual fund. Cut services and program staffing to balance budget. Increase fees for service and add services back as fees, annual fund dollars, and endowment investment income is available. Continue to increase level and quality of services as revenue is available—as well as upgrade staff quality.

170

EDUCATIONAL ASSOCIATION

Pruning & Hail Mary StrategyPruning & Hail Mary Strategy

171

SOCIAL SERVICESAGENCY

Maintain staff level of good people who work here because they care for the mission—even though we can’t pay much. Provide as many services and programs as possible that make a difference, with funding from fees, United Way, and government subsidies. Maintain balanced budget. Limited staff will do the best they can with an overload of cases until things get better.

Maintain staff level of good people who work here because they care for the mission—even though we can’t pay much. Provide as many services and programs as possible that make a difference, with funding from fees, United Way, and government subsidies. Maintain balanced budget. Limited staff will do the best they can with an overload of cases until things get better.

172

SOCIAL SERVICESAGENCY

HOPE & Hope is not a Strategy

HOPE & Hope is not a Strategy

173

FOODBANK

Reorganize staff to allow CEO, who has extensive fundraising experience, to devote majority time to planning and running major fundraising campaign. Also add new Director of Development position. Recruit more influential Board members who will actively participate in campaign. Use reserves to run short term deficits if necessary to maintain quality operations until new funds are raised.

Reorganize staff to allow CEO, who has extensive fundraising experience, to devote majority time to planning and running major fundraising campaign. Also add new Director of Development position. Recruit more influential Board members who will actively participate in campaign. Use reserves to run short term deficits if necessary to maintain quality operations until new funds are raised.

174

FOODBANK

Staff Realignment StrategyStaff Realignment Strategy

175

HOUSING SERVICES ORGANIZATION

Replace retiring CEO with someone who has fundraising experience. As Board members retire, add new Board members with commitment to fundraising. Expand services as new funds are raised. Use status in community to initiate collaborative regional summit on affordable housing issues among key stakeholders as a call to action for all.

Replace retiring CEO with someone who has fundraising experience. As Board members retire, add new Board members with commitment to fundraising. Expand services as new funds are raised. Use status in community to initiate collaborative regional summit on affordable housing issues among key stakeholders as a call to action for all.

176

HOUSING SERVICES ORGANIZATION

External Shift in Focus Strategy

External Shift in Focus Strategy

177

CORE STRATEGYvs. STRATEGY REPORTS

The Breakthrough Strategy process produces the core elements of your strategy

The ways in which you communicate your strategy to different audiences will vary

Some audiences will need more specifics and/or background than others

The Breakthrough Strategy process produces the core elements of your strategy

The ways in which you communicate your strategy to different audiences will vary

Some audiences will need more specifics and/or background than others

178




Setting Strategic Stretch Goals ✔ Discern SWOTs ✔ Create Strategy Narrative



Setting Strategic Stretch Goals ✔ Discern SWOTs ✔ Create Strategy Narrative

179

STRATEGY IMPLEMENTATION

Creating the right strategy is exceptionally important before the implementation begins:

“The righter we do the wrong thing, the wronger we become.”

-Russell L. Ackoff

Creating the right strategy is exceptionally important before the implementation begins:

“The righter we do the wrong thing, the wronger we become.”

-Russell L. Ackoff

180

STRATEGY IMPLEMENTATION

Align organization and culture to new strategy as per VPP Model

Annual Outcome-Based Stretch Goals are set that relate to the Five-Year Strategic Stretch Goals

Teams assigned to generate creative annual plans for each Stretch Goal

Budget designed to support plans, goals, strategy

Align organization and culture to new strategy as per VPP Model

Annual Outcome-Based Stretch Goals are set that relate to the Five-Year Strategic Stretch Goals

Teams assigned to generate creative annual plans for each Stretch Goal

Budget designed to support plans, goals, strategy

181

VPP FRAMEWORK

182

THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY

#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours.

#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours.

183


#2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”).

#2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”).

184


#3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund-raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under-emphasized – such as program innovation, leadership succession, strategic partnerships, and more.

#3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund-raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under-emphasized – such as program innovation, leadership succession, strategic partnerships, and more.

185


#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance.

#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance.

186


#5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance.

#5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance.

187


#6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities.

#6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities.

188


#7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.”

#7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.”

189

“SO WHAT”MINUTE

What three things will you do during the next week to apply some of the ideas we have discussed today?

What three things will you do during the next week to apply some of the ideas we have discussed today?

190

“SO WHAT”MINUTE

Create a Mission Metrics task force to identify impact measures

Design a new strategic planning process

Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”

Create a Mission Metrics task force to identify impact measures

Design a new strategic planning process

Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”

191

“SO WHAT”MINUTE

Review all of your goals and make sure they are SMART.

Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.

Share your key learnings with others at your next staff or Board meeting

Review all of your goals and make sure they are SMART.

Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.

Share your key learnings with others at your next staff or Board meeting

192

“SO WHAT”MINUTE

Tell everyone you know (Tweet, Facebook, Blog, Email) to read Mission Impact and use the ideas to create breakthroughs in the quality of life in our world.

Tell everyone you know (Tweet, Facebook, Blog, Email) to read Mission Impact and use the ideas to create breakthroughs in the quality of life in our world.

193

THANK YOU VERY MUCH!!!

For your leadership! For your commitment!! For the difference you make!!!

For your leadership! For your commitment!! For the difference you make!!!

194

Robert M. Sheehan, Jr., Ph.D.Principal

Sheehan Nonprofit Consulting

[email protected]

www.SheehanNonprofitConsulting.com

FOR MORE INFORMATION

FOR MORE INFORMATION

195

Documents

Robert M. Sheehan, Jr., Ph.D. Principal Sheehan Nonprofit Consulting @SheehanImpact [email protected] 301.523.1864