FRAMEWORKS, THEORIES AND MODELS

NMP 625:Strategic Management in Nonprofit

Organizations

E. Ruth Ever E-Portfolio Assignment #1

11/7/13

Traditional Strategic PlanningJohn M. Bryson

Step 1: Development of an Initial AgreementStep 2: Identification and Clarification of MandatesStep 3: Development and Clarification of Mission and

ValuesStep 4: External Environmental AssessmentStep 5: Internal Environmental AssessmentStep 6: Strategic Issue IdentificationStep 7: Strategy DevelopmentStep 8: Description of the Organizations Future

This models is most often used in the traditional “3-year” strategic planning process. The eight steps will lead to an action plan, results and an evaluation.

Real-Time Strategic PlanningDavid La Piana

La Piana proposes that strategic planning be done in “real-time” as opposed to the traditional 3-year strategic planning cycle. Strategic planning is a continuous cycle.

SWOT AnalysisAlbert Humphrey

Strengths Weaknesses

Opportunities Threats

The SWOT model allows an organization to do a analysis of their strengths, weaknesses, opportunities and threats. This analysis model is most often used as part of a larger strategic planning process.

Nonprofit Lifecycle StagesSusan Kennedy Stevens

There are different stages within the life of an organization. Not all organizations will go through each lifecycle. This

model factors in the five capacity building components so that one can asses if they are working together, or if they are out of

sync.

Organizational Life StagesJudith Sharken Simon

Organizational Life StagesJudith Sharken Simon

This model illustrates the life stages of nonprofit organizations as five stages, where decline and dissolutions can happen at any stage.

There are seven arenas that characterize what stage an organization is in: governance, staff leadership, financing, administrative systems, products and services, staffing and marketing.

Each stage can also be characterized by obstacles and opportunities.

Organizational Self-AssessmentMichael Hoff

Organizational PurposeOrganizational StructureWork ProcessesStaff Leadership Interpersonal RelationsReward StructureResources

This self-assessment allows the organization to come up with their own questions within each of the categories below. It is emphasized that the data gathered through this self analysis should be as objective as possible. This particular model does not have a lot of guidelines and leaves it to user discretion as to how in-depth to go, and in what direction, when exploring each category.

Organizational Self AssessmentPeter Drucker

What is our mission?Who is our customer?What does the customer value?What are our results?What is our plan?

Using these 5 questions and their secondary questions, an organization can create a strategic action plan.

Components for Organizational CapacityCarol Lukas & Sandra Jacobson

These six components are essential for a high performance organization. These interdependent factors all contribute to the health and performance of a nonprofit organization

Capacity Assessment GridDeveloped by McKinsey & Company for Venture Philanthropy Partners

This assessment tool helps assess the organizational capacity of a nonprofit. Each of the seven elements has subcategories, and these areas are all scored within the grid.

Elements of Organizational Capacity• Aspirations• Strategy• Organizational Skills• Human Resources• Systems and Infrastructure• Organizational Structure• Culture

Decision MatrixDavid La Piana

This matrix allows you to plot specific situations to see if the La Piana Assessment Tool is appropriate to use.

1High level of investment but short-term interest only

Consider use of tool

2High level of investment andLong-term interest in organization

Definitely use tool

3Low level of investment andShort-term interest only

Likely won’t use tool

4Low level of investment butLing-term interest in organization

Consider use of tool

Project LevelShort-Term

Interest

High Substantial Investment

Movement BuildingLong-Term

Interest

LowMinimal Investment

Supplemental Tool for AssessmentDavid La Piana

Supplemental Due Diligence Document Review Interviews with Organizational Leaders – 6 Assessment Areas

Governance Leadership Finances Human Resource Management Development Communications

Analysis: Red Flag IdentificationAction: Options for Managing the Risk(s)

This tool assesses the stability and capacity of the organization. It allows you to evaluate the overall risk and suggest various strategies.

How to Develop a Mission StatementPeter Drucker

Step 1: Establish a mission-writing group Step 2: Adopt criteria for an effective mission statement Step 3: Develop one or more draft statements Step 4: Judge the initial drafts against criteria and suggest revisions

or new options Step 5: Develop second drafts Step 6: Gain feedback from outside the writing group Step 7: Summarize feedback and distribute second drafts and

summary to writing group Step 8: Propose a draft mission statement or determine next step Step 9: Gain preliminary endorsement of the proposed mission

statement Step 10: Present the proposed mission statement for board approval

A ten-step process for creating your mission statement:

How to Write a Mission StatementJanel M. Radke

What are the opportunities or need that we exist to address? (purpose of the organization)

What are we doing to address those needs? (the business of the organization)

What principles or beliefs guide our work? (the values of the organization)

A mission statement should be free of jargon, short enough to be easily read and remembered, convincing, easy to understand, motivating and inspiring. It should answer three basic questions:

Crafting Effective Mission and Vision Statements

Emil Angelica

Vision Statement Process1. Select the vision statement

writing team2. Generate alternative

visions (SWOTM)3. Identify common themes4. Draft vision statement5. Circulate vision statement

for review and modify it6. Adopt the vision statement

Mission Statement Process1. Select the mission

statement writing team2. Clarify core values3. Review the organizations

underlying strategies4. Evaluate the current

mission statement5. Draft the mission statement6. Circulate the mission

statement for review and modify it

7. Adopt the mission statement

Angelica has outlined several steps on how to develop a mission statement and a vision statement.

Strategic PositioningThomas A. McLaughlin

The need for your serviceYour geographyYour users and potential users of your serviceCompetitors or alternativesFundersLabor forceSpecial assets

The goal of strategic positioning is not problem solving but imagining, and the imagining should be grounded in reality. A good strategic position statement is easy to understand and explains where you want your organization to be in the future. The following factors should be considered when doing strategic positioning:

What If…Scenario ThinkingDiana Scearce, Katherine Fulton and the Global Business Network

Scenario thinking is a type of strategic thinking, whereby scenarios are developed and then used to inform and direct the strategic process. There are three guiding principles for scenario thinking:

• The Long View: Looking into the future to see new possibilities

• Outside-In Thinking:Considering external changes and preparing for

surprising events

• Multiple Perspectives:Allowing a variety of perspectives to help understand

assumptionsand plan for the future

Scenario ThinkingDiana Scearce, Katherine Fulton and the Global Business Network

Phase One:ORIENTInterviewsFocal Issues

Phase Two:EXPLORECritical UncertaintiesPredetermined elements

Phase Three:SYNTHESIZEScenario frameworkScenarios

Phase Four:ACTImplicationsStrategic agenda

Phase Five:MONITORLeading indicatorsMonitoring systems

These are the five phases of the scenario thinking process.

The Strategy PyramidDavid La Piana

Organizational

Programmatic

Operational

This pyramid is a graphical representation of the categories or types of challenges that confront leaders of nonprofit organizations. La Piana proposes that an organization build its pyramid from the top down.

Strategy ScreenDavid La Piana

Strategy ScreenDavid La Piana

A Strategy Screen is a set of criteria that your organization uses to choose whether or not a particular strategy is consistent with its identity. The specific criteria in your Strategy Screen will depend on your organization’s mission, identity, competitive advantage and current market position.

10 Deadly Sins Leading to Strategic MalaiseMichel Robert

Sin 1: Strategy by osmosisSin 2: Strategy in isolationSin 3: Outsourcing the strategy to an

outside consultantSin 4: Operational managers are not

trained as strategic thinkersSin 5: Planning numberosisSin 6: Meaningless mission statementsSin 7: No crisis, no strategySin 8: The critical issues are not

identifiedSin 9: Not understanding the difference

between process and contentSin 10: Using a content consultant

These 10 sins can lead to either management not knowing or understanding the strategy or having a strategy that is understood but not being implemented

Strategic FilterMichel Robert

Questions Yes No

Q1

Q2

Q3

Q4

Q5

Q6

Q7

When faced with an opportunity, filter it through a series of questions that require a Yes or No answer. The questions should focus on the current strategy of the organization. If the opportunity does not conform to the current strategy, it becomes an exception. Historically, exceptions always end up being problem areas.

Strategic Thinking ProcessMichel Robert

Phase 1: Introduction and Overview

Phase 2: Identification of Characteristics

Phase 3: Setting Strategic Objectives

Phase 4: Critical Issues Meeting

Phase 5: Review/Revisit Session

Strategize for the FutureMichel Robert

The “Five Futures”

Future ahead—already started but not yet arrived.

Beyond—projectable and predictable based on current

constraints.

Behind—learn about future by looking at history and past.

Around– the one already present around you.

Beside –current trends in the other sandboxes that will

eventually affect you.