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Frequently Asked Questions

Question

What do I need to know before I start the planning process?

Answer

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To Plan or Not to Plan
Level of Planning
Once the Decision to Plan Has Been Made

The following addresses the concerns of the pre-planning stage. This stage is divided into three phases, each addressing different issues and questions. They are:

To plan or not to plan
The level of planning
Once the decision to plan has been made

To Plan or Not to Plan

The Benefits of Planning

Planning consumes resources, a precious commodity for all nonprofits. As a process that eventually defines the direction and activities of the organization, it can be an overwhelming and daunting task. Despite the overwhelming nature of the process, the benefits of planning can far outweigh the hardships.

There are benefits to be gained from the actual planning process, as well as from the final planning document. The very activities that nonprofit staff and boards conduct as part of the planning process empower them to be more effective in their roles-more informed leaders, managers, and decision makers. In addition, the final planning document becomes a tool that can be used to effectively and efficiently manage the organization.

The time devoted to the planning process varies from organization to organization and depends on the resources available to devote to the process. Whether you decide to devote only a two day retreat to the process or engage in a twelve month process, your organization will begin to realize the benefits from the start. Some of the fundamental benefits to the planning process and the development of the final plan include:

a framework and a clearly defined direction that guides and supports the governance and management of the organization
a uniform vision and purpose that is shared among all constituencies
an increased level of commitment to the organization and its goals
improved quality of services for clients and a means of measuring the service
a foundation for fund raising and board development
the ability to set priorities and to match resources to opportunities
the ability to deal with risks from the external environment and
a process to help with crisis management

Prerequisites for Planning: Key Factors that Must be in Place Before Beginning the Planning Process

As with any major effort, a planning process has its proper time and place in the organization. There are certain organizational elements that must be in place in order to ensure that the planning process will provide the maximum benefit to the organization. It is important to be candid when assessing the organization's readiness to engage in the planning process. Even if you get half way through the planning process before you realize that the organization is not ready, stop and remedy the situation before continuing with the process. Unfortunately, many organizations plan when the organization is not ready. They always have an unsatisfactory planning process and subsequent results. Make sure the following elements are addressed before making the commitment to plan:

a commitment of active and involved leadership, with continuous leadership engaged throughout the planning process
a resolution of major crises that may interfere with the long range thinking during, commitment to, and participation in the planning process (e.g., insufficient funds for the next payroll, the organization is not operating legally, etc.)
a board and staff that are not embroiled in extreme, destructive conflict
a board and staff who understand the purpose of planning and what it can and cannot accomplish, as well as consensus about expectations
a commitment of resources to adequately assess current programs and the ability to meet current and future client needs and
a willingness to question the status quo and to look at new approaches to performing and evaluating the "business" of the organization

Level of Planning

As with any other organizational effort, you can do a little planning or a lot of planning. "Enough planning" is when your organization's leadership understands and has consensus about a clear organizational direction.

Planning Resource Requirements
As a nonprofit organization, it is critical to examine what needs you are attempting to address from the planning process and the resources available to engage in the process. It is safe to assume that an organization can expect more benefits from a more informed, more resource intensive process.

The key resources required for planning are staff time, board time, and dollars (e.g., market research, consultants, etc.). Specific examples of time resources consumed by the planning process might include time spent:

collecting and analyzing environmental information
engaging key stakeholders
gathering historical financial information, projecting future budgets, and cash flow projections and
analyzing options and consequences for potential organizational and program strategies.

The amount of resources, time, and money spent on planning should reflect the complexity of the issues you are addressing and the availability of information and resources. Resource requirements will vary for every organization.

The Role of an External Consultant

For an organization with little or no experience in planning, an external consultant can enhance the planning process by providing the following services:

Facilitating of retreats, meetings and the planning process as a whole: The use of a consultant to serve as the "conversation traffic cop" is one method of ensuring that good ideas do not get lost in the emotion of the process or personality of the participants. A consultant can work with an organization to minimize planning barriers that impact effectiveness, using his or her experience as a source of tried and true processes.
Training in planning information and processes: It is critical for everyone involved in the planning process to be speaking the same language and using the same planning tools. External consultants can provide that conduit of information flow and education.
Providing an objective and different perspective in the process: As an outsider to the organization, the consultant can ask questions and challenge existing traditions, assumptions, and routines more objectively than staff and board members. Often planners do not realize that they are using jargon or have made certain assumptions about their constituency. Having an outside consultant participate in the planning process helps ensure that organizations stay true to one of the prerequisites of engaging in the planning process, the willingness to question the status quo.
The process expert role: The consultant who has facilitated and conducted many strategic planning processes can provide significant information and advice on tools and processes that can best accomplish your process and content goals.

For a more extensive discussion of the role of the outside consultant, refer to FAQ 14 in this series, Should I Use an External Consultant?

Once the Decision to Plan Has Been Made

The planning process is like any other process, it needs to be managed. People have many expectations when they hear the word planning. It is important to make sure that everyone is operating from the same set of expectations and knowledge base. Organizations often train key board and staff members in process and planning language before embarking on the planning process.

Large groups of individuals are not conducive to the creation of documents and quick decision making. They are more suited to producing feedback, ideas, and suggestions about existing documents or modifying draft decisions after the initial analysis has been completed. A strategic planning committee is one tool that is used to focus the energies and responsibilities of the process. The planning committee spearheads the process, serving as the quarterback of the team, but it does not take sole responsibility for all decision making and all the nuts and bolts work.

It is also important to identify the potential information needs of the process. Key decisions will be made during planning. In order for these decisions to be high quality, decision analysts and decision makers need to have appropriate financial, program, and client information.

Another tool used in the management of the planning process is a work plan, or a plan to plan. It is an outline of the steps and activities that will take place during the planning process. The plan specifies the tasks, outcomes, resources to be expended (time and financial), and the person(s) responsible in each of the phases in the process.

Steps to Prepare for Planning

The following items summarize the steps necessary to prepare for the planning process:

Obtain a formal commitment to conduct planning, including education of board and staff, if necessary
Select a strategic planning committee of no more than five to seven people, a combination of visionaries and "actionaries," or a planning liaison to spearhead the process
Develop a workplan or a plan to plan that outlines who is responsible for each outcome and time frames
Consider the adequate level of resources (dollars and time) required to conduct an appropriate planning process