| Page 2 Sometimes "Strategic planning" is confused with "long-range planning" and
operational planning". They are different. There are two things in particular
that distinguish strategic planning from planning which is merely long-range in
nature and from operational planning typically done on an annual basis:
- The first is the attention paid to changes in the external environment,
for example, fundraising trends or political and regulatory changes; also
changes in the needs and service expectations of our customers, funders and
other stakeholders.
- The second difference is the focus in strategic planning on developing a
shared vision of the future, and the way this shared vision of future success
drives the rest of the planning process.
Now, let’s talk more about the role of the board in strategic planning.
As we have said, the purpose of strategic planning is to develop a three to
five year blueprint for the nonprofit’s future. The board has a critical role to
play. Because the board of directors assumes a large share of the responsibility
for the success of the nonprofit, it must provide the critical link between the
nonprofit and the outside environment in which the organization functions. It
must also ensure that the nonprofit reaches the community it intends to serve,
and effectively serves the needs of its constituents. To fulfill this function,
the board should help the executive director to establish a strategic planning
process, should participate in the process, and should approve the final
strategic plan.
Richard Ingram, author of Basic Responsibilities of Nonprofit Boards,
states that the board’s first responsibility is to determine the nonprofit’s
mission and purpose. Clarifying the mission of the nonprofit is a critical part
of strategic planning. The board must work with the executive director to
formulate, and periodically update, the nonprofit's mission and decide whether
particular programs and services fall within its expressed mission. The mission
statement should define why the nonprofit exists. It should clearly articulate
the nonprofit's main purpose and values, and identify the beneficiaries of its
programs and services.
A good mission statement articulates the overall goal of the nonprofit to
everyone inside and outside the organization. It is used to guide strategic,
long-term planning and helps to keep the school focused during both smooth and
turbulent times. The absence of a mission statement, or having one that is
unclear, may cause confusion inside the nonprofit as it faces various
challenges, or it may result in inappropriate decisions. For a mission statement
to be useful, it should be reviewed periodically to ensure that it reflects the
current environment in which the nonprofit operates and the changing needs of
the people it serves. This is particularly important for nonprofits because of
the uncertain political and economic environments in which they operate.
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