When it comes to nonprofits, strategic planning is often one of the biggest things sitting on an organization’s back burner. It usually goes something like this: you know the benefits of strategic planning, but you also have a million other things that take precedent — like running your organization — meaning strategic planning gets pushed further and further out of sight.
The problem is, by the time you do have time to commit to strategic planning it’s often too late. Your organization’s growth has begun to level off, or even worse plummet, and now, instead of growing, you have to waste precious energy figuring out how to get back in gear.
When it comes to strategic planning, there are several signs that should serve as red flags that it’s time to revisit, renew or even create your organization’s first strategic plan.
What Signs Should I Look For?
1. Changes In Leadership
Changes at the management, board or executive level are often great times for a new or refreshed strategic plan. By involving new leaders in the strategic planning process, you help guarantee their buy-in, which can be fundamental when making decisions that support the goals outlined in your strategic plan.
If you have a board with a high turnover rate, make a point to revisit your strategic plan every few years to ensure that current leadership can take ownership of the plan already in place.
2. Increasing Competition or Changing Marketplace
If the heat of your competition is suddenly burning hotter than ever, it may be time to revisit your strategic plan. By taking time to evaluate the current market and who you’re competing against, you are better able to devise strategies to ensure your nonprofit continues to thrive.
3. Significant Changes In Revenues or Expenses
Whether your finances have skyrocketed or plummeted, significant changes in revenues and expenses can serve as major trigger points that a new strategic plan is needed.
Remember, an effective strategic plan is based on the fundamentals of your organization. The strategic plan of a nonprofit with $100,000 in revenue is going to differ from an organization with an operating budget of $10 million
4. Stuck In a Rut
If your organization is doing the same thing, hosting the same events with the same revenue and little growth, it’s time for a new strategic plan. A strategic plan can breathe new life into your organization, which can mean increases in not only revenue, but also your organization’s visibility in your market and your employees’ satisfaction levels.
5. Difficulty Prioritizing
You and your team most likely have a ton of great ideas as to how to grow your nonprofit, but if you’re struggling to get even one of these ideas off the ground, strategic planning can help. A strategic plan will break down your ideas into sustainable action items that can be delegated throughout the organization, meaning one person isn’t getting bogged down trying to carry the work of ten.
6. Need to Communicate With Stakeholders
Keeping stakeholders in the loop as to your nonprofit’s goals and the plan to achieve those goals is never a bad idea. A strategic plan may be required when applying for certain types of grant funds, serving as demonstrative proof that your organization knows where it’s headed and how you will get there.
By taking the initiative to plot out your organization’s future, a strategic plan can show your stakeholders that their investment in your organization is well founded. (Read this case study to learn how one organization accomplished this.)
7. Current Plan Is Outdated
Trying to operate on an outdated strategic plan can actually set your organization backwards. Remember, the core function of a strategic plan is to achieve certain goals in a set period of time. Like any business, without any new goals or initiatives on the horizon, a nonprofit operating on an outdated strategic plan will eventually lose momentum, growing stagnant or even worse begin to decline.
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