Organizational development

2. The concept of strategy and its planning process
4. SWOT & PEST Analysis , Goals
3. Vision, Values & Mission
Content
1. Course goals and objectives & the concept of Strategy
5. Program Strategy and Financial planning
6. Implementation, Monitoring and Evaluation

Course Aim & Objectives
This course hopes to provide you a structured learning environment in which you can achieve the following objectives:
The aim of this course is to demonstrate:
Why it is useful and beneficial for NGOs to build business know-how.
Define and understand often complex management concepts using methodical approaches;
Learn to plan ahead and professionalize your structures and processes;
Integrate the tools of business management into your own skill set;
Ultimate Goal
Create effective and long term sustainable organizations

What is Strategy?
An Organization Strategy is a set of tactics or actions an organization chooses to adopt to accomplish its goals.
It is a process that helps you to find your UNIQUE FIT in the market and distinguish yourself from COMPETITION.
Strategy is the creation of a unique and valuable position, involving a different set of activities.
Michael E. Porter,
Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. (Wikipedia)

Goals
About the Strategic Planning process
Before you begin
Allocate time and budget to the strategic planning;
Gather all the relevant data about the environment and your organization;
Involve staff of all levels to participate;
Golden Rules
Listen to others!
All ideas are valid!
Observe time frame AND proceed step by step!
Seek common ground and actions not conflicts and problems!
Create an ENABLING environment!
………….and ENJOY!

Foundations of Strategy
VISION
MISSION
VALUES
GOALS

Vision
Your Vision is how you DREAM about your organization. But it is more than a dream or a hope.
It should describe your ideal world and how your organization will be successful in it.
Qualities of a Vision:
Inspiring, motivating, exciting;
it stretches capabilities and imagination of the team;
it fosters a feeling of being part of something bigger;
it is clear, concrete and easy to communicate;
it gives shape and direction to the future of the organization;
it should be achievable and realistic even if based on the future;

Creating a Vision
Process:
work in small groups to develop 5-7 priority ideas for the future of the organization;
to be feasible the vision should not contain more than 15 elements;
elements need to be put in order of priority;
focus on WHAT the team wants to create and HOW it will do it;
All ideas are valid

Vision Questions
In 5 years what would we be?
How would we know we achieved it?
What kind of organization do we want to be?
What do we really want to do or create?
Whom do we really need or want to serve?
What image, reputation or influence do we want?
What shall we commit to over the next 5-10 years?
How do we differentiate ourselves from competition?
What are the right things to do?
Think about: Services or products – Markets/Niche – Clients/Customers – Key relationships – Organizational Capabilities – Competencies – Reputation/Image – Organizational Culture – Processes – Structure – Innovations - Mission

Values
Values define the character of the organization. They define how the organization wants to behave with its customers, its suppliers, its team and in the community in general.
Values create the foundation of the organizational culture.
How to apply values in an organization:
Values should be clear and aligned;
The entire organization should share the values and implement them;
Organizational Goals are based on established org. values;
Reward and recognition for work done according to values;
Staff performance feedback based also on values;
Evaluate if organizational values create the organization that you desire;
The power of shared values is a highly motivating factor not only among your team and clients but also for your donors!

Mission
The Mission of an organization is based on its VISION and VALUES. It describes the purpose and essence of your organization.
It clearly defines WHAT the organization is committed to, WHAT it does, WHAT does it believe in.
The Mission statement should be SHORT, SIMPLE and CONVINCING.
Each member of the organization should know the mission statement!

Mission Statement
Mission statement exercise:
Who are we?
What are the social needs we exist to fulfill? Or what are the basic social problems we exist to address?
In general, what do we want to do to recognize, or anticipate and to respond to these needs or problems?
Who are our key clients or supporters?
What should our responses be to our key clients or supporters?
What makes us distinctive or unique?

Mission Statement example
Mission Statement
NFF's mission is to serve as a development finance institution for nonprofit organizations, working to fill their overall need for capital through financing and advisory services. NFF supports its nonprofit clients' multi-faceted contributions to communities, advances community and economic development goals, and works to fill the overall need for capitalization of organizations in this sector.
Organization
Nonprofit Finance Fund (NFF), 70 West 36th Street Eleventh Floor New York,
Description
The Nonprofit Finance Fund is a community development financial institution that offers financing, loans, as well as technical and planning assistance to nonprofit subsectors. Working together with other financial institutions, the Nonprofit Finance Fund services nonprofits in Washington, the San Francisco Bay Area, New York City, New Jersey, New England, etc.

Environment SWOT & PEST analysis
Internal assessment that can influence the success of your organization
SWOT
Strengths, Weaknesses
Opportunities and Threats
External factors that can influence the success of your organization
PEST
Political, Economic, Social and Technological factors
Assess the market you want to enter
Assess internal resources, processes, performance

SWOT analysis
Positive
Negative
Strengths
Weaknesses
Opportunities
Threats
External
Internal
Changing customer tastes
Technological advances
Change in population age
Lower taxes
Changing customer tastes
Technological advances
Tax increase
New distribution channels
Absence of important skills
Unreliable quality
Low customer retention
Management
Production quality
Management
Know-How
Customer loyalty

PEST analysis
Political/Legal
Economic
Social/Cultural
Technological
Employment law
Government stability
Taxation policy
Environmental protection laws Inflation
Unemployment
Interest Rates
Business Cycles
Gov. spending on Research
New discoveries/developments
Speed of Technology transfer
Industry focus on technology
Population demographics
Income distribution
Levels of education
Lifestyle changes

Strategic Positioning
The FIT
Capabilities
Resources
Strengths & Weaknesses
Mission
Opportunities and Threats
Needs of customers & stakeholders
Competitors and Allies
Social, Economic, Political and technological forces
What are you capable of doing?
What is needed and feasible in your service area?
What do you want to accomplish?

Goals & Strategic Objectives
Goals define the benefits that will result from your organization’s activities.
Goals should be REALISTIC and ACHIEVABLE and linked to a time frame.
Programmatic Goals
They define the impact your program hopes to have on a specific issue, target group or problem by the end of the planned period.
Organizational Goals
Define the internal changes, restructuring and improvements your organization should make to achieve its goals effectively.

SMART Goals
Specific – to avoid differing interpretation
Measurable – to allow monitoring and evaluation
Achievable – realistic, challenging and meaningful
Relevant – to the problems, goals and strategic objectives and intended results
Time bound – with specific time frames for completion

Goals and Objectives
To stay competitive you need to shift direction based on customer requirements!
Goals should stay flexible and be reviewed regularly!
Once you defined your Goals you need to define a Plan of Action to reach your goals.

Goals
Strategic Goals and objectives are reached or delivered through the implementation of Programs (strategies, services).
Program Strategy
What will be done?
Why will it be done?
How will it be done?
Where will it be done?
Who will do it?
Define your Program Strategy

Goals
Brainstorm Strategic Issues
Program Strategy
How will we ensure quality?
What business should we be in? And/or what Program shall we develop. How many programs or services?
How much will it cost?
How do we secure adequate finances to implement our programs/strategies and fulfill our mission?
How will we manage our organization in order to fulfill our mission?
……………………

Goals
Program Strategy
Describe the issue accurately;
Discuss each issue in relation to other factors (mission, values, goals, PEST, SWOT ..);
Discuss the consequences of failure to address the issue;
Find a balance between addressing problems and using opportunities;
What is the financial investment and risk?
Prioritize strategic issues

Goals
Program Development
Once you have selected your strategic issues and decided on programs and services to offer, you need to develop Action plans and Financial plan for each program.
List activities in sequential order
Identify persons/positions responsible for each activity
Time frame for completing each activity (if start up phase)

Goals
Organizational Development
In order to implement your program strategy, you need to develop Action plans and Financial plans for the organization.
THINK ABOUT: What infrastructure, technology, HR structure, financial management system, legal structure do you need in order to meet the program plan?

Goals
Financial Planning
Budgeting:
Start up budget, Program budget, Operational Budget;
Financial Plan:
Organizational budget (programs and operations)
Resource mobilization strategy (fund-raising);
Allocation of funds;
It is important to develop a Long-Term Financial Plan (at least 5 years).

Goals
Implement your Strategy
Strategic Plans should be INSTITUTIONALIZED to become the basis of the organization’s:
Performance standards
Decision-making processes
Planning
Resource mobilization and allocation
Disseminate your Strategic plan to your stakeholders.
2. Use it for your PR activities!
3. Engage staff in reviewing and revising the plan, make it a team building tool!

Goals
Monitor and Evaluation
Create Performance Measurement tools and indicators
Monitor your Performance regularly!!
To make sure you are following your strategy
Review and Revise your strategic plan every 1 or 2 years.
Regularly Evaluate outputs and results
Bear in mind your Goals and Objectives!