During this
evaluation ask these key questions: Does the strategy meet/address
critical issues? Is this aligned with our mission? Is this approach
financially viable?
One effective method
of strategy generation is to list critical issues and organizational
strengths onto flipcharts and then have staff or board members brainstorm
possible uses of those strengths or other skills to address the critical
issues. Once the brainstorm session is completed, use a roundtable
discussion to investigate and evaluate the possible strategies. Remember
to develop a list of alternative strategies to investigate and keep in the
contingency planning file.
It is important not
to discount the ideas that come to people during non-working hours. The
Polaroid camera is the result of a three year old's question to her
father: "Dad, why can't I see the picture now?"
Tools
for Analysis and Planning
A number of
analytical tools have been developed to assist organizations with the
planning process. Many nonprofit organizations have adapted these tools,
modifying the questions and criteria to align with their own specific
services and markets. Listed below are analytical tools frequently used by
nonprofit and for-profit organizations?
SWOT Analysis
SWOT
analysis is a methodology of examining potential strategies derived from
the synthesis of organizational strengths,
weaknesses, opportunities
and threats (SWOT). The
partnering of the different elements and the extensive data collected as a
result of the analysis can serve as a spark for roundtable discussions and
refinement of current strategies or generation of new strategies.
The
MacMillan Matrix
This
strategy grid, developed by Dr. Ian MacMillan, is specifically designed to
assist nonprofit organizations to formulate organizational strategies.
There are three assumptions underlying this approach:
·
the need for resources is
essentially competitive and all agencies wanting to survive must
acknowledge this dynamic
·
given that resources are
scarce, there is no room for direct duplication of services to a single
constituency -- this is wasteful and inefficient
·
Mediocre or low quality
service to a large client population is less preferable to delivering
higher quality services to a more focused population.
These
assumptions have implications that are difficult and painful for many
organizations and individuals. It might mean terminating some programs to
improve core services and competencies, giving programs and clients to
more efficient, effective agencies, or competing aggressively with those
programs that are less effective or efficient.
MacMillan's
matrix examines four program dimensions that guide placement on the
strategy grid and indicate implied strategies.
Alignment
with Mission Statement
Services
or programs that are not in alignment with the organizational mission,
unable to draw on existing organizational skills or knowledge, unable to
share resources, and/or unable to coordinate activities across programs
should be divested.
Competitive
Position
Competitive
position addresses the degree to which the organization has a stronger
capability and potential to fund the program and serve the client base
than the competitive agencies.
Program
Attractiveness
Program
attractiveness is the complexity associated with managing a program.
Programs that have low client resistance, a growing client base, easy exit
barriers, and stable financial resources are considered simple or
"easy to administer." The level of program attractiveness also
includes an economic perspective or a review of current and future
resource investments.
Alternative
Coverage
Alternative
coverage is the number of other organizations attempting to deliver or
succeeding in delivering a similar program in the same region to similar
constituents.
The
MacMillan Matrix provides ten cells in which to place programs that have
been reviewed in terms of these four dimensions. Each cell is assigned a
strategy that directs the future of the program(s) listed in the cell
(e.g., aggressive competition, joint venture, orderly divestment, etc.).
One cell of the matrix, "Soul of the Agency," requires
additional explanation. These are the difficult programs for which the
organization is often the clients' "last, best hope."
Management
must find ways to use the programs in other cells to develop, piggyback,
subsidize, leverage, promote, or otherwise support the programs in this
category.
For
more information on the MacMillan Matrix, contact the Support Centers of
America.
Additional
Strategies for Your Organization
Listed
below are several strategies applicable to both the organizational and
program levels, adapted from Philip Kotler's Strategic
Marketing for Nonprofit Organizations (Prentice Hall, 1995). From a
social need and services perspective, some are more desirable than others.
Surplus
Maximization
An
agency runs its organization in a manner that increases the amount of
resources on hand. Usually this strategy is adopted to accumulate
resources for expansion or growth.
Revenue
Maximization
An
agency manages its organization to generate the highest possible revenues,
perhaps in an effort to establish a reputation or critical mass.
Usage
Maximization
An
agency works to serve the highest number of users of their services. This
strategy can be used to position the organization or program for funding
or budgetary purposes.
Usage
Targeting
An
agency provides services in a manner that encourages serving a specific
number or type of constituents. This strategy is used to address unmet
needs of specific populations or to cover the costs associated with
providing services.
Full
Cost Recovery
An
agency manages its programs and services so that it financially breaks
even, providing as much service as the finances will allow. Many
nonprofits adopt this strategy in an effort to provide services without
entering fiscal crisis.
Partial
Cost Recovery
An
organization operates with a chronic deficit every year, providing
services that are critical and cannot be provided at a break even level of
costs (e.g., mass transit or the Post Office). These organizations rely on
public and private foundations, individuals, and governments to cover the
annual deficit.
Budget
Maximization
An
agency maximizes the size of its staff, services, and operating
expenditures regardless of revenue/cost levels. Organizations that are
concerned with reputation and the impact of trimming services or
infrastructure on that reputation employ this strategy.
Producer
Satisfaction Maximization
An
organization operates towards a goal of satisfying the
personal/professional needs of a founder, staff, or board of directors
rather than the established needs of external clients and customers.
Fees
for Service
An
organization provides services to clients for a fee. The fee is typically
below market rates and does not cover the full cost of providing the
services.
New
Revenue Strategies
An
organization uses direct marketing activities designed to generate new
sources of revenue from specific funders. Examples include starting a new
service or program, approaching a new funder, changing the way services
are provided, or setting up a profit making venture.
Legitimization
Strategies
An
organization works to communicate to the community that it is conforming
to existing standards and norms - that it is a legitimate and worthy
participant in the sector. Examples include adapting services to funder
priorities, contributing non cash or cash resources to other nonprofit
organizations, or seeking endorsements or board participation from
prominent individuals.
Retrenchment
Strategies
An
organization emphasizes efforts to reduce internal costs to offset the
potential or real loss of revenues or grant monies. Examples include
increasing staff workloads, increasing use of part time or volunteer
staff, eliminating services or programs, or reducing non-fixed expenses
such as training or supplies.
After
attending this course you will…..
Ø
Understand
the principles and operation of how effective SPM works.
Ø
Be able to
present solution to the causes of system delays.
Ø
Be able to
select fundamental changes for effective SPM of a particular systems
requirement.
Ø
Know the
tools available for SPM and its effectiveness.
Ø
Be able to
develop & resolve issues in SPM
Who Should Attend
Managers,
Supervisors, Group Leaders, Operations Personnel, Work Force &
Executives
Why
Attend
This
course is aimed at providing an in-depth understanding to the operation
and activities involved in strategic planning.
