Strategic Planning Manual FOR NONPROFIT ORGANIZATIONS IN SAUDI ARABIA

Transcription

1 Strategic Planning Manual FOR NONPROFIT ORGANIZATIONS IN SAUDI ARABIA RIYADH, SAUDI ARABIA 2010

2 Foreword This manual is based on international best practices, first-hand experience, and published works in the field of nonprofit management and strategic planning. The ideas, format, and processes presented here have been developed to fit the requirements and environment of the nonprofit organizations in the Kingdom of Saudi Arabia. The following is a sample of the important published works that have been used as the basis for this manual and have been referenced throughout the document: Allison, Michael and Jude Kaye. Strategic Planning for Nonprofit Organizations: A Practical Guide and Workbook. John Wiley & Sons. Inc OVC TTAC Publication. Strategic Planning Toolkit Barry, Bryan W. Strategic Planning Workbook for Nonprofit Organizations. St. Paul, MN: Amherst H. Wilder Foundation, Bryson, John M. Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organizational Achievement. 3rd edition, San Francisco: Jossey-Bass, Bryson, John M. and Farnum K. Alston. Creating and Implementing Your Strategic Plan, 2nd Edition. San Francisco: Jossey-Bass, McKinsey and Co. Effective Capacity Building in Nonprofit Organizations. Venture Philanthropy Partners, Shapiro, Janet. Strategic Planning Toolkit. Civicus: World Alliance for Citizen Participation. 2 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

3 Table of Contents What Can You Expect From This Manual Introduction to Strategic Planning Phase I Prepare Phase II Assess Phase III Envision Phase IV Create Phase V Implement Phase VI Evaluate Conclusion FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 3

4 What can you expect from this manual? The Strategic Planning Manual is intended to serve as a guide for nonprofit organizations to use throughout their strategic planning process. Leaders and managers of organizations must think and act strategically if they are to meet their professional obligations and have a significant impact on the communities they serve. Without a strategic framework your organization will not know where it is going, why it is going there or how to get there. The Manual is organized in a simple way to help you both learn about the basics of the planning process and use the process. It is designed primarily for leaders, managers, planners, employees, and other stakeholders of public and nonprofit organizations. It will be of most help to those who have had only limited experience in strategic planning. The Manual is a collection of best practices in the field but each organization must make the process their own. The manual is intended for existing and new organizations. Each organization must try, evolve, fail, and find its own way and adapt the process to best fit their organizational needs. Note: We suggest you read the complete manual at least once before embarking on the strategic planning process in order to fully understand what it entails and have a good comprehension of the whole process. 4 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

5 The following figure illustrates the main phases of the strategic planning process: EVALUATE 6 PREPARE 1 2 ASSESS 5 3 ENVISION IMPLEMENT 4 CREATE The Manual contains the following: 1 Introduction It provides a definition of the strategic planning process, strategic plan and its importance in leading and managing your nonprofit organization. It helps all the stakeholders speak the same planning language. Phase I: Prepare Getting your organization ready for strategic planning. In this step, you find out how ready your organization is for strategic planning and you form a group that will be responsible for the planning process. This phase raises several important questions: Is the organization ready for strategic planning? What do we want to accomplish through strategic planning? Is it the right time for strategic planning? What do we need to do to get ready? FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 5

6 Phase II: Assess Determining where your organization has been and where it is now. In this step, you assess your organization s history, projects, structure, culture, strengths, weaknesses, opportunities, and threats. You should ask the following questions: What do our board, staff, clients, and others (stakeholders) think about our current state? What have we done well and what not so well? In what ways do we need to build our organizational capacity to provide better service? What are your financial resources? How is the environment changing? Do we have enough staff to operate efficiently? Does the staff have the necessary qualifications? Phase III: Envision Creating Vision, Mission, and Values. In this important step, through a number of meetings and brainstorming sessions, you create or re-evaluate your organization s guiding statements: vision, mission, and values. You involve all the stakeholders to reflect on the main reasons for their work, the nature of the organization, and the impact on the society. You ask questions such as: Why do we exist? What is our purpose? What is our ideal state of being? Phase IV: Create Prioritizing your organization s core strategies, specific goals, and objectives. This phase will help you determine where you want your organization to go and create a roadmap for your organization s work for the next three to five years. Your goals are realistic, your objectives are SMART (Specific, Measurable, Attainable, Results-oriented, Time-bound) and your resources support your plan. At the end of this phase, the strategic plan is written up into a comprehensive, easy to follow document to include everything agreed upon in the previous phases. Phase V: Implement Putting your plan into action. In this step, you create annual action/operating plan(s) and supporting budgets that will allow you to make your plan a reality each year. This is usually done by creating detailed Annual Operating Plans with specific tasks, deliverables, key personnel, timeline, resources and budget. In this phase, you also communicate and tell others - including board, staff, clients, community partners, and funding sources about your plan. 6 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

7 Phase VI: Evaluate Evaluating how well your plan is working. In this step, you monitor and evaluate implementation and the short-term and long-term effectiveness of the plan and use your evaluation data to inform your future decision-making. Appendix Finally, the appendix provides key process tools (questionnaires, survey instruments, templates, etc.) on how to accomplish the tasks involved in the phases. These tools are meant to provide guidance but they may not be necessary or appropriate for every situation. They can be changed and adapted to suit your organization s needs. Note: How Consultants Can Help? Organizations vary in their capability to undertake the strategic planning process. Some are able to complete the process on their own and some are not. Some don t have leadership and staff skilled in strategic planning. Many have board and staff members with strategic planning experience but not enough time in their busy schedules to dedicate to this process. A number of organizations have the skills and time but what they all often lack is objectivity, commitment, and discipline. One option for those organizations who feel they would like additional support is to hire a consultant. Consultant can provide invaluable assistance in designing and facilitating a strategic planning process that involves all the key stakeholder groups in a neutral, objective, timely, and cost-effective way. Consultants can also obtain sensitive information confidentially and share it in a useful fashion, provide expert advice, facilitate consensus among stakeholders; and help to organize seemingly diffuse or contradictory thoughts and approaches. What outside consultants cannot do is take full responsibility for developing the strategic plan, or determine an organization s mission, vision, goals or implementation activities. Their role is to facilitate a process whereby the organization s leadership makes those decisions. Hiring a consultant can also be expensive and that may prevent some organizations from being able to use outside help. It is up to your organization to think carefully and determine whether or not hiring a consultant would be the most efficient way to go about your strategic planning process, however, regardless of the decision, it is recommended that all those involved in the process read this manual and familiarize themselves with all that needs to be done. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 7

8 Introduction to Strategic Planning 8 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

9 Introduction to Strategic Planning What is Strategy? A strategy is an overall approach, based on an understanding of the broader context in which you function, your organization s strengths and weaknesses, as well as external opportunities and constraints you are attempting to address. A strategy gives you a framework within which to work, it clarifies what you are trying to achieve and the approach you intend to use. What is Strategic Planning? Strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, how it does it, and why it does it, with a focus on the future. 2 Strategic planning helps an organization focus, ensures that all members of the organization are clear on the organization s vision and mission and that they are all working towards the same goals. It assists you in projecting where your organization will be in three or five years and how to get there. It provides you with the big picture of what you are doing and where you are going. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 9

10 The following Chart illustrates the strategic planning process: 3 WHERE YOU ARE Mission and Mandates Structure and Systems Communication Program and Services People and Skills Budget Support STRATEGY FORMULATION VISION, MISSION & GOALS STRATEGIC ISSUES HOW TO GET THERE Strategic Plan IT Plan and HR Plans Communications Hiring and Training Restructuring Budget Allocations WHERE YOU WANT TO BE Mission and Mandates Structure and Systems Communication Program and Services People and Skills Budget Support STRATEGY IMPLEMENTATION What is a Strategic Plan? Strategic plan is the result of the strategic planning process; it is a leadership and management tool that provides guidance in fulfilling your organization s mission with maximum efficiency and impact. If it is to be short, effective and useful, it should articulate specific goals and describe the specific action steps and financial and other resources needed to accomplish them. Because it is strategic in scope, it helps you identify where your organization is now and envision where you want it to be in the future. Because it is a plan, it helps you take systematic actions and steps to bridge the here and now and your vision of the future. However, as President Eisenhower once said Plans are useless. Planning is everything, meaning that the true value of the strategic planning process comes from the analysis, the debate, and the fresh thinking that it generates. 10 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

11 Why should your organization undertake strategic planning: Because it will help you discuss issues and come to a consensus on what the organization s capacity is in terms of: STRATEGY ASPIRATIONS ORGANIZATIONAL SKILLS WHY SHOULD YOUR ORGANIZATION UNDERTAKE STRATEGIC PLANNING? SYSTEMS AND INFRASTRUCTURE ORGANIZATIONAL STRUCTURE CULTURE Strategic planning will help your organization transform itself from good to great. 4 A great organization is one that delivers superior performance and makes a distinctive impact over a long period of time. For a social sector organization performance must be assessed relative to its mission. According to Jim Collins, the well-known strategist and academic, the critical question is: How effectively do we deliver on our mission and make a distinctive impact, relative to our resources? 5 FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 11

12 Benefits of Strategic Planning It increases organizational effectiveness and efficiency It shows the big picture as well as specific actions It provides an explicit understanding of the organization s vision and mission among internal and external stakeholders It is proactive and engages stakeholders It identifies organizational strengths and weaknesses It enables organizations to pinpoint new opportunities or the causes of current or projected problems It focuses your organization on the future It provides a roadmap for specific actions to fulfill your mission It helps the organization have a greater impact It fosters communication and teamwork It creates a forum for constructive discussion It is essential for funding support It is necessary: If you fail to plan, you plan to fail What Strategic Planning is Not It does not predict the future It is not a substitute for effective leadership It is not a wish list or a marketing tool It is not a magic solution for organizational problems It is not a linear and predictable process Key Strategies to Successful Strategic Planning 6 1. A clear and comprehensive grasp of external opportunities and challenges No organization exists in a static environment. Social, political and economic trends continually impact the demand for its offerings and services. Even as advances in technology present new opportunities, they also generate new expectations. Needs and community demographics are all subject to change. So too are methods for delivering programs and services. It is thus essential that a strategic plan reflect the external environment. Programs, services and operations should be reexamined and reshaped in light of current realities and future projections. 12 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

13 2. A realistic and comprehensive assessment of the organization s strengths and limitations The foundation of any successful strategic plan is a consideration of capabilities and strengths, weaknesses and limitations. Information, both objective and subjective, must be gathered from a wide array of sources, including staff and board members, clients, community leaders, funders and partner organizations, among others. 3. An inclusive approach At one point or another, all important stakeholder groups should have a voice in the planning effort. At a minimum, that includes staff representatives, board members, clients, and partner organizations. Involvement of the senior leadership is crucial to successful strategic planning. Without their buy-in, leadership and decision-making authority, effective strategic planning is not possible. To be sure, all views will not be weighted equally, nor will every staff member be involved at every stage. If the planning process is to succeed, it must incorporate the views or feedback of all the constituencies that will be affected by the plan or have a role in its implementation. An effective plan takes multiple elements into account: the funding, the expectations of beneficiaries and other stakeholders, the competitive landscape and the requirements of operations and programming. Neither board nor staff, acting on their own, has a full grasp of all those areas - hence the need to ensure that representatives from both are involved. 4. An empowered strategic planning committee (SPC) Strategic planning should be a participatory undertaking. As a matter of practical necessity, the core work will generally be entrusted to a small planning committee with sufficient decision-making authority to keep the project moving forward. This isn t to suggest that the committee members have the right to adopt and implement key action steps, or that they will not be held accountable to the board or larger community. But neither should they be subjected to constant second guessing, nor be required to seek board or management approval at every step. The board s confidence in their skill and judgment must be implicit. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 13

14 5. Learning from best practices Clearly, each organization has its own individualized mission, client base and operating culture. Thus, each must map a strategy, incorporating goals and action steps carefully customized to its needs. A plan that is appropriate in one setting won t necessarily be appropriate in another, no matter how similar the organizations. Nonetheless, it is possible to learn from the successes, failures and mistakes of others. One way or another, every nonprofit organization and foundation deals with challenges related to human resources, technology, capacity building, fundraising, organizational development and governance. Often, a solution that works for one can be successfully adapted by another. 6. Clear priorities and an implementation plan While missions and visions are essential to inspiring commitment to your organization, they may be seen as hollow unless accompanied by an organized description of activities needed to fulfill desired aims. Developing a workable strategic plan means analyzing the organization s objectives and strategies and determining priorities. The planning committee should outline the full list of priorities and, if there are many, decide which to move ahead on and which to cut back. Once priorities are set, members of the planning committee need to identify sets of activities and the necessary budget and resources to achieve the goals and objectives. 7. Patience For small and mid-size organizations, strategic planning often moves faster. But for larger organizations with many constituencies, the process may advance much less quickly. When an organization is making major changes and needs extensive buy-in, the process may not be perfectly linear. As information is gathered, sifted, and analyzed, assumptions are rethought, new ideas advanced and old ones revamped or discarded. It is important to keep things on course and maintain momentum, but rushing is counter productive. 8. A commitment to change No matter how relevant its original mission, no organization can afford to tie itself to the same goals, programs and operating methods year after year. As client needs, market conditions and funding criteria change, strategies need to be revisited regularly. Sometimes all that s needed is fine-tuning; other times, a more fundamental rethinking of goals and opportunities may be required. If they are to remain viable and effective, organizations must be prepared to change as extensively as conditions require. 14 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

15 9. Strategic Planning Document Whether an organization engages in an abbreviated or extensive strategic planning process, a strategic plan should be created. This document is a symbol of accomplishment, a guide for internal operations, and a marketing and fundraising tool. A successful plan is a usable plan one that is short, to the point, informs the organization s activities as well as its long-range views, and one that yields meaningful improvements in effectiveness, capacity and relevance. 10. Annual Operating Plan Strategic plan must be translated into an annual operating plan and supporting budget for the first year. This is the most critical part of the strategic planning process. Annual operating plan is how an organization makes things happen. A critical test of a good strategic plan is that the annual operational activities are clear and that the budget supports each of those activities. Without the operational plan that identifies specific tasks, identifies responsibilities, resources, and the timeline, a strategic plan will rarely be successfully implemented. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 15

16 16 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL Phase 1: Prepare

17 Phase I: Prepare Strategic planning process is not something that can happen on its own. Someone must make a decision to initiate and plan the process. To get ready for strategic planning, an organization must start by asking: Is my organization ready to embark on the strategic planning process? And what do we need to do to get ready? A strategic plan can take your organization in a different direction; the results can be surprising and positive. Still, the planning process should not be taken lightly because change, no matter how exciting, is difficult. 7 There are many reasons and issues for considering undertaking the strategic planning process. Do we have a clear mission? Are we providing relevant services? Are we having the impact we want? What do we do about a potential loss in funding? Are we stretching our resources too thin? Should we close down a program or change the direction? If the goals for planning are not clear at the beginning, it will be difficult at the end to determine if the process was successful. The main prerequisite for successful strategic planning is a true commitment to the process by Executive Director and the board. Whether the organization is ready essentially comes down to whether the Executive Director and the Board are able to devote the attention, time, and resources to the process. They will lead the process through the Strategic Planning Committee. They may decide to hire an external consultant to facilitate the process with them but they will still be the main decision-makers. They need to be clear on what they would like the planning process to accomplish and then assess the organization s readiness. If there is a funding crisis or the environment is turbulent or key personnel are not available, then it may not make sense to engage in strategic planning at this time. The short-term preparation work that you do will pay off for your plan in the long run increasing its chances for success. 8 FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 17

18 Timing: The questions to ask here are: When do you need to do a strategic planning process? How often do you need to do a strategic planning process? At what point in an organizational or project cycle do you need to do a strategic planning process? Suggestions: There is usually no need to do a comprehensive strategic planning process more than once every three years unless the external or internal context has changed dramatically. This does not exclude you from doing a strategic review more often - once a year. A strategic review is quick - you look at the strategic framework, against what is happening internally or externally, as a sort of reality check. There are various times in the life cycle of an organization where it makes sense to do a strategic planning process. So, for example, when you are initiating a new project or new organization; if you have just had a major evaluation of the organization or work and this has led to challenging recommendations; when you reach the end of a major phase; when the organizational structure within which your organization or project functions needs to be developed, clarified, or consolidated, etc. Conditions: By reviewing the following conditions for success, the leaders of the process will be able to determine whether their organization is ready to embark on the strategic planning process. An organization should make sure the following conditions (or almost all of them) are present before deciding to initiate the process: 9 A) Commitment, support, and involvement from the top leadership, especially the executive director and board president B) Commitment to clarifying roles and expectations for all participants in the process, including clarity on who will be the decision-makers C) Willingness to gather information about the organization s strengths, weaknesses, opportunities, and threats; the effectiveness of current programs; current and future needs of the community; and information about competitors or partners D) The right mixture of individuals on the planning committee (people from different levels of the organization as well as strategic thinkers, implementers and visionaries. Broad participation is necessary so that staff feels ownership of and is energized by the process E) An adequate commitment of organizational resources to complete the process (e.g. time and money) F) A willingness to question the status quo, to look at new ways of doing things; a willingness to ask hard questions and face difficult choices; and a willingness to support organizational change as a result of the planning effort 18 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

19 G) The organization has the financial capacity to sustain itself for the immediate future without a financial crisis H) No serious conflict between key players within the organization I) No high-impact decision to be made in the next six months by an external source (e.g. major funder, government, etc.) J) No merger or another major partnership effort on the way K) A board and top management willing to articulate constraints and non-negotiables upfront L) A commitment to allocating sufficient resources to support the implementation of goals and objectives If most or significant number of the conditions for success are missing, then an in-depth strategic planning process may not be appropriate at this time an organization may have to wait until the conditions or people change. It is important to discuss and determine these issues up front. An organization that decides to begin the process must then pave the way for an organized process. How well you analyze the conditions under which strategic planning will take place can mean the difference between your plan succeeding or failing. Assessing readiness can help identify issues that may impede the process, opportunities for strengthening it, and potential allies or supporters who will help move the planning process forward. 10 The following steps make the organization well prepared for the process: 1) Identify stakeholders 2) Create a strategic planning committee (SPC) 3) Determine roles and responsibilities 4) Identify specific issues or areas that the planning process should address 5) Identify information that must be collected to help make sound decisions 6) Establish a common ground for strategic planning 7) Create a strategic planning work-plan (plan for planning) FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 19

20 1 Identify Stakeholders At the first strategic planning meeting of the Executive Director and the Board, it is important to identify the organization s stakeholders and how they can contribute to the process. At this point, it is important to identify who your stakeholders are but keep in mind that during the Assess phase it will be important to analyze and understand your stakeholders and their needs. Your stakeholders are the people or groups who use your organization s services or are affected by your organization s actions. Identifying your stakeholders will help you assess the current environment of your organization by giving you an understanding of who will be affected by your plan or want to contribute input. A stakeholder is any person or group whose best interests are served by your organization or who receives or uses your organization s resources or services. Stakeholders are also any person or group with a vested interest in your organization; or who can expect a certain level of performance or compliance from your organization. Stakeholders can be internal and external. Internal stakeholders are employees, board, etc. External stakeholders can be the government, media, partners, etc. Organizations may have many different stakeholders. Stakeholders may not necessarily use the resources or receive the services of a program; they may be advocates of the program or other community members who are affected by the program. To begin stakeholder identification, list all your organization s internal and external stakeholders. Be as inclusive as possible. Examples of stakeholders are: Internal Board, management, staff, etc. External Government agencies, public, community, clients, nonprofit organizations, competitors, regulators, legislators, etc. 20 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

21 After listing all of your organization s stakeholders, identify the key stakeholders based on their positive or negative impact on your organization and their ability to affect your work and determine which stakeholder can help you during the strategic planning process. Evaluate each stakeholder in terms of how important they are (e.g. extremely, reasonably or not at all) and what role should this stakeholder play in the strategic planning process, if any (e.g. strategic planning committee member, participant in the process, plan reviewer, expert resource, etc.) You might worry that bringing together the opinions and thoughts of so many different people will make the planning process more difficult. Though it may be harder to achieve consensus among a wide range of people with different insights and interests, having such a range of input will greatly benefit your plan. When people contribute valuable insights and data to the strategic planning process, they are often more receptive to the final plan. They will be naturally interested and encouraged to see the outcomes of their contributions. 2 Create a strategic planning commitee (SPC) After identifying your main stakeholders, next step in preparing for your strategic planning process is to put together a strategic planning committee. The recommendation is to decide on a strategic planning group that takes full responsibility for coordinating and planning this process. The bottom line is to think critically about who can and should contribute to your strategic plan, and to get them involved early in the process. The members can be selected either by preparing the short list from your stakeholders list and asking all staff to vote on members or by having Executive Director and the board member select the planning committee. The first option is preferable because it involves the Board and all staff in the process and the members are seen as true representatives from various levels at the organization. The committee should be convened once a decision to go ahead with planning has been reached. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 21

22 The commitee should: Consist of approximately 8-10 members (it can be smaller or larger but not too large because it would make it more difficult to organize meetings and discussions) Be a combination of visionaries (people who see what the organization can be) and action-takers (people who ensure that the project goals and tasks are realistic and doable) Be a group that has the respect and the power to make decisions on behalf of the organization Be a diverse group (board and staff, finance person, external stakeholder, etc.) Sample SPC members: BOARD OF DIRECTORS The board of directors will ultimately adopt the plan and will use it to guide its decisions and actions. If the entire board is not involved directly in the planning process, it must at least have one member leading the process as well as approve a planning process and be kept informed of its progress. The process of developing a strategic plan is a special opportunity to engage the board of directors in an active role in shaping the organization>s future. EXECUTIVE DIRECTOR Executive Director plays a major role in the Strategic Planning effort. He/she may ask a consultant, a board or staff member to assist him/her in the process but the Executive Director is the one that is in charge of leading the effort. STAFF Staff members have expertise and information that should be used during the planning process. Since they will be the ones who will carry out the plan on a day-to-day basis, they should be informed and, to whatever extent is appropriate for the organization, involved. Organizations often rely on representation from staff on the planning team. EXTERNAL STAKEHOLDERS Those who benefit from the organization>s services and have interest in the organization s work are sometimes involved in the planning process (clients, beneficiaries, competitors, academia experts, media, government representatives, etc). Each organization makes its own choices about whether to include clients on the planning team or whether to consult them in some other way. 22 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

23 3 Determine Roles and Responsibilities At the first meeting of the planning committee, the committee s responsibilities should be outlined and any milestones confirmed. Roles of the key players should be defined. Who will be the key people responsible for each aspect of the strategic planning process? What level of control will the board have? Role definition is extremely important so that efforts are not duplicated or neglected. 11 Usually, either the Board President or the Executive Director will lead the strategic planning process. A planning committee spearheads the process. This does not mean that committee members are responsible for doing all the work; work will be done by many but strategic planning committee members are responsible for ensuring that the work gets done. If the organization is using the outside consultant, he/she will facilitate the process with other stakeholders. A planning committee decides (with input from others) which stakeholders to involve, how to involve them, coordinates and makes assignments to staff or board members, provides linkages and liaison with everyone involved, and prioritizes or narrows information for the organization to discuss and evaluate. The planning committee also discusses strategic issues, makes recommendations regarding strategies and priorities, creates drafts of documents for approval by the board, holds meetings and brainstorming sessions, keeps everyone updated on the process. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 23

24 Sample SPC Member Roles: PLANNING PROCESS CHAMPION This is usually a key member of the board of directors or the executive director. The person must be someone who believes in strategic planning and will help keep the process on track. This person does not have to be an expert in strategic planning, but s/he should be someone respected by board and staff members. PLANNING PROCESS FACILITATOR This person may be an outside consultant, though this role can also be played by a member of the board. The facilitator s main responsibility is to plan the process, outline the steps, carefully plan each meeting s agenda and to ensure the group stays on track and that the planning process is completed successfully. PLAN WRITER Someone must assemble the planning group>s decisions into a cohesive document. This person uses the notes from SPC meetings, decisions, and other information to prepare a plan, often in the form of several drafts for review by the entire planning group. Writing the plan, however, is more than simply compiling a record of planning meetings. The plan writer must also insert options and next logical steps into the drafts at each stage of the planning process. The plan writer can often be the Executive Director, board member or consultant. 4 Identify specfic issues or areas that the planning process should address There are various types of strategic issues to consider. Most issues will fall under one of these headings: 12 Vision and Mission. How well are we achieving our vision and mission with our programs and how could we have greater impact? Administrative and Organizational Capacity. Do we have the administrative capacity to effectively and efficiently support our programs and services? What would it take to maximize our organizational and administrative capabilities in terms of planning, human resources and leadership, organizational culture and communication, and our technology and facilities infrastructure? Governance. How effective is the board at protecting the public s interest ensuring that charitable money is being used effectively and efficiently and that the organization is fulfilling its mission? What can we do to ensure that our board is able to fulfill its governance role now and in the future? Finances. Are our operations financially viable and how can we ensure the long-term financial stability and sustainability of our organization? Do we have effective financial management systems in place to monitor our finances? 24 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

25 External Factors. What are the main external factors that influence the organization s work and what effect do they have on the organization? Are the external factors likely to change in the next 3-5 years or not? Beneficiaries. Who are the main beneficiaries of our work? Is our organization targeting the right population and do we have to re-evaluate our target audiences? Do we have enough information about their interests and needs? Have we assessed the impact of our projects on client groups? 5 Identify information that must be collected to help make sound decisions The most effective way to assess your organization is to collect information about important aspects that could affect its functioning. In order to prepare for the review of relevant information it is helpful to gather in one place any documents or other background information that would help inform your strategic process. The following is the list of types of documents that provide useful information: 13 Category Historical Perspective Type Organizational timeline Significant events in the organization s history Organizational accomplishments Mission, vision, values statement Guiding Statements Program-Related Documents Financial Documents Administrative Documents Previous strategic plans Annual plans Annual reports Program descriptions; work plans Program evaluation reports Newsletters Needs Assessments Fundraising materials Fundraising plans Financial plans Organizational chart Organizational processes Communication documents (monthly reports or updates) Personnel policies and performance appraisal forms Client satisfaction surveys Previous evaluation designs and reports Internal databases Other reports (government, external, etc.) Budget reports Audits Sample financial reports Internal accounting procedure manuals Previous organizational effectiveness surveys Performance measurement Volunteer management plan Information technology plan Survey of facilities and equipment Governance Documents Board development plan Board minutes Board manual Previous board self (or external) evaluations Board roster or committee structure FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 25

26 6 Establish common ground for strategic planning Finding common ground for your strategic planning process is critical to the success of your plan. By making sure that everyone is on the same page, you can better make a strategic plan that meets everyone s expectations. At the same time, you also ensure that your planning process has a set of common ground rules so that people interact respectively and efficiently. Establishing a foundation of trust and cooperation in your planning group is essential to your work. The following are suggestions on how to create a positive and productive atmosphere in your planning group. 14 Know-how. Everyone involved in the committee should have a basic understanding of strategic planning, of what it can and can not accomplish and the component parts of the process. Develop relationships. Relationships are the key to change. Recognize and value what each participant brings to the table. Ask questions to get the people talking about what they believe is important. Set-up activities that require group interaction and work. Share the work. Everyone in the committee and other members of the organization need to be involved in the process. Collaboration. Promote mutual sharing and learning among stakeholders. Everyone at the table, regardless of their rank or experience, has something to offer. The more diverse the group (e.g. Executive Director, junior staff member, board member, external stakeholder, etc.) the richer the discussion. Big picture. Develop a shared vision for the future, the big picture. Not every concern can be addressed during the strategic planning process. Determine the ideal scenario and then work together to identify ways to get there. Have participants think about what would be the ideal situation and what steps are necessary to get there. Think of how each person can contribute to this shared vision. Ownership. The committee and the entire organization should be involved in the process. Regular updates, requests for input and ideas, and official feedback should be part of the process. 26 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

27 7 Create a strategic planning work-plan (plan for planning) Finally, the planning committee will need to develop an overall work-plan for managing the planning effort. The work-plan should outline the following: A) Main Tasks (required over the course of the entire planning process) B) Activities within each task (interviews, meetings, surveys, etc.) C) Persons responsible (for executing or overseeing) D) Resources required E) Measurable outcomes F) Timeframe and schedule G) Status Keep the following important points in mind throughout the process: Know the purpose of your effort. Know what you want to achieve have clear outcomes for the process. Know what you have to cover to achieve these outcomes know what steps you have to work through. Know what additional issues need to be dealt with in the time available. Prioritize sensibly. Don t be inflexible. But do have a commitment to time-keeping. Make sure that someone records what is said and, most importantly, what is agreed. This does not mean verbatim (word-for-word) notes, but rather a record of important discussions and decisions. Whether or not you decide to use an outside facilitator, make sure that someone is responsible for chairing each session and that they are skilled enough to do so properly. Build in steps that involve all participants you need to take people with you, not just get the tasks done. If you have asked people to do preparatory work, make sure this is taken into account in the agenda so that people feel their efforts are valued. Once the work-plan is completed, everyone on the strategic planning committee and the organization is on the same page on what needs to be done. Your organization is now ready to proceed to the next phase in the strategic planning process Assess. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 27

28 28 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL Phase 1I: Assess

29 Phase II: Assess The strategic planning committee is in charge of organizing and completing this phase. Assessment enables organizations to understand the current external and internal context within which they operate in order to be able to develop effective strategies. Many organizations get excited about the strategic planning process and want to jump right in and create the plan. Stop! Have patience! It is very important to create the proper foundation for the strategic plan. By taking a critical look at your organization first, you can better understand what strategic planning needs to address. The Assess phase of the strategic planning process is the information gathering and analysis phase that results in a database of concrete information. This information will be used to make decisions about programming and administrative priorities and to develop overall strategies. It allows the strategic planning team to see the organization as a whole in relation to its environment. If your organization has been in existence for a while and has done a lot, all the previous work and structure have to be reviewed. If your organization is new then it is important to establish where it is right now, what its resources are, what the experiences of its founders and staff are as well as what its strengths and weaknesses are. It is important that this phase is done thoroughly and patiently. This phase requires time and effort and there will be a tendency to jump to conclusions and want to respond without having gathered most of the information. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 29

30 Don t make any final conclusions until all the necessary information has been obtained. During this phase, the strategic planning committee will have to continually assess to determine whether they have sufficient and accurate information to make informed decisions regarding short and long-term priorities. Information should be gathered from the following sources: 15 1) Internal stakeholders (board, staff, volunteers) 2) External stakeholders (clients, funders, partners, community leaders, government officials) 3) Objective data (statistics, data about trends, research studies, interviews with experts) The assessment phase has four major tasks: A) Assess the history and current scope, scale and capacity of operations B) Gather new information by conducting a SWOT (strengths, weaknesses, opportunities and threats) analysis C) Conduct an external assessment D) Summarize your findings Data-gathering methods to be used during this phase are the following: 1) Interviews (phone and in person) 2) Questionnaires and surveys 3) Brainstorming sessions 4) Focus groups 4) Research 5) Observations Before starting with the tasks of collecting and assessing the information, the strategic planning committee members must identify and understand stakeholders. The process of identifying key stakeholders already started during the preparation phase and we will now go into a more in depth analysis of each of them. As we stated earlier, stakeholder is any person, group, or organization that can place a claim on the organization s resources, attention, or output or is affected by its output. A stakeholder analysis is not only identifying who the organization s internal and external stakeholders are but how they evaluate the organization, how they influence the organization, what the organization needs from them, and how important they are KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL

31 Using the list of internal and external stakeholders compiled during the Prepare phase, analyze the main stakeholders in terms of type (e.g. client, customer, partner, competition, etc.), sense of his/her/its judgment about your organization s performance, how this stakeholder affects the organization, what your organization needs from this stakeholder and what they need from you. Main Tasks A) Assess the history and current scope, scale and capacity of operations When it comes to internal analysis, the three major categories that should be assessed here are: Resources (inputs) Present strategy (process) Performance (outputs) Using these three categories as a guide, the following are the essential internal elements in the organization that need to be assessed in order to determine the history and current status of your organization: 17 History A summary of the events that have shaped the organization (key events in the organization s past as well as all specific program activities and services). Where have you primarily focused your energy and resources over the past years; and what efforts have gotten you to where you are now? Current Status Current programs and activities Does the existing structure of programs and activities make sense? Are the programs managed well? Do existing programs and activities support each other and the mission? What are the main accomplishments? What is being done well and not so well? How successfully are client s needs being met? Aspirations An organization s mission, vision, and overarching values and goals, which collectively articulate its common sense of purpose and direction. Strategy The coherent set of actions and programs aimed at fulfilling the organization s overarching goals. FOR NON-PROFIT ORGANIZATIONS IN SAUDI ARABIA 31

32 Organizational skills The sum of the organization s capabilities, including such things (among others) as performance measurement, planning, resource management, and external relationship building. Human Resources The collective capabilities, experiences, size, potential and commitment of the organization s board, management, staff, and volunteers. Systems and infrastructure The organization s planning, decision-making, knowledge management, information technology, and administrative systems, as well as the physical and technological assets that support the organization. Organizational structure The combination of governance, organizational design, inter-functional coordination, and individual job descriptions that shapes the organization s legal and management structure. Financial resources The size of the budget, incoming funds, operating costs, accounting procedures, and the degree budget meets current and expected needs. Culture The connective tissue that binds together the organization, including shared values and practices n, it is important to draw out what you learned and reach conclusions. Write what you learned down as a reference point for the rest of the process. When you do a review of programs, you look at the impact and effectiveness of the work you are doing. Is it making a difference? When you do a review of the organization, you look at the efficiency of the way in which the work is done. Do we do our work in a way that is cost-effective and that produces maximum results with the least possible input? Whichever way you gather information, it is important to draw out what you learned and reach conclusions. Write what you learned down as a reference point for the rest of the process. The question to answer here is: What have we learned from this program review or the organizational review that we must keep in mind as we go forward with our strategic planning? 32 KING KHALID FOUNDATION STRATEGIC PLANNING MANUAL