In this article we will focus on a critical board building challenge: How can the board of directors organize itself in order to function as an effective, future-focused leadership team? Put another way, How can the board be involved in meaningful ways in strategic planning and ongoing strategic thinking?

Why do boards need to think and plan strategically? Simply put, because it is at the very core of effective board governance. Board directors need to think and plan strategically because they are leading nonprofit organizations through one of the most turbulent periods of change in our history. This leadership imperative reinforces the need for the board of directors to focus on critical issues and policy challenges vs. administrative details and programmatic implementation.

In this article, we will focus on two areas: the role of the board in formal strategic planning efforts and need to think strategically on an ongoing basis outside of the formal strategic planning process.

Let’s start with a brief discussion of strategic planning. The purpose of strategic planning is to develop a three to five year blueprint for the organization’s future. Strategic planning is a way to help an organization be more productive by helping guide the allocation of resources in order to achieve goals.

More and more nonprofits are doing strategic planning because they understand that it is a must in today's fast changing environment. And they are seeing a number of important benefits including:

• Determination of a clear sense of future direction and focus.
• Improvements in program and service delivery.
• Enhanced marketing efforts.
• Increased volunteering and membership involvement; and,
• More effective fundraising.

According to Brian W. Barry, author of Strategic Planning Workbook for Nonprofit Organizations, strategic planning usually involves fundamental choices about:

• The mission, goals, or vision your organization will pursue.
• Whom you will serve.
• The organization's role in the community.
• The kinds of programming, services or products you will offer.
• The resources needed to succeed -- people, money, expertise, relationships, facilities, and so forth.
• How you can best combine these resources, programming and relationships to accomplish your organization’s mission.

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