Thursday, April 21, 2011

The 3rd Deadly Sin of Nonprofit Strategy: Over-Emphasis on Fundraising

Like so many sins, this one starts out innocently enough.

An organization has financial challenges and decides it needs a big new fundraising campaign – maybe even a capital campaign.  Then someone remembers that a big fundraising effort will need to be explained as being part of a strategic plan.  So they hasten to throw together a strategic plan that justifies the campaign.  The final product says “Strategic Plan,” but it is essentially a fundraising plan.

So what?  Why am I making such a big deal out of this?

Well, a strategy is more than a fundraising plan.  And the process I described above is anything but strategic.  A strategy needs to take a big picture look at the organization, its future, and its environment.  Otherwise, opportunities and challenges can be missed.  Here are issues I see that are often overlooked when the strategy development process has an over-emphasis on fundraising:

*Performance Metrics are usually not clarified, beyond “raising more money.”  Strategy development is an ideal time to ask yourself “how do we know we are accomplishing our mission and what metrics are we going to use to determine that.”  Without those metrics you won’t know if you are accomplishing your mission, no matter how much money you raise.

*Weaknesses or Threats not related to fundraising can be overlooked.  Examples:  What about human resources issues?  Is the staff design sustainable?  What about succession planning at the senior levels?  The first baby boomers are turning 65 this year.

*Strengths or Opportunities not related to fundraising can also be overlooked.  Examples:  Can we leverage our good reputation to create strategic alliances that will increase our impact?   Would a merger be an opportunity to be more efficient and increase impact?  These are questions that many funders are asking.  

*Innovation in Program Delivery is often not considered.  Do we need to raise 25% more money to deliver more programs/services or do we need to innovate on how we deliver the programs?  Maybe both!

These are just examples of the types of questions that can be asked if an organization broadens its view beyond the need for more money and actually takes a “strategic” approach to developing its strategic plan.

The crying need for funding for most nonprofits makes this sin understandable, but I encourage you not to commit it.  By overlooking some of these other strategic issues you can undermine your fundraising plan and end up in even worse shape.

Deadly Sin #4 coming up soon.


For more ideas on how you can lead breakthroughs in your organization, follow this blog and check out my web site at www.SheehanNonprofitConsulting.com   You will find free resources you can download, including a Breakthrough Strategy Workbook that you can download at no cost.  You can also check out my book, Mission Impact:  Breakthrough Strategies for Nonprofits, and buy it if you are interested.  And you can follow Sheehan Nonprofit Consulting on Facebook.

Wednesday, April 13, 2011

The 2nd Deadly Sin of Nonprofit Strategy: “Insular Mountaintop Planning”

It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together.  But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish the plan.

I get push-back on this, because it can take some time.  When a CEO asks me why she/he should take the time to ask others for input, here is my response (this is the unfiltered version):

1.  I know you are brilliant.  But brilliance is widely distributed.  Let’s ask others to contribute their brilliant ideas and maybe they will think of something that you and your senior team have not thought of.  (I know, shocking possibility.) 

2.  Once the brilliant strategy is set, you will need others to help implement it.  Let’s get them involved so they are inspired by it as well.  This will help with successful implementation. 

3.  It’s their organization too!  You and the senior team don’t own it.  Others have a right to provide input into creating the future of the organization in which they have a stake. 


IMPORTANT:  When you ask people for their input, actually listen to them.  It is said that there are two different ways to listen to people – “listening to respond” versus “listening to understand.”  When you are listening to respond, you are mentally preparing to explain to the other person why they are wrong.  When you are listening to understand, you authentically want to hear what they have to say and you will consider adding their ideas to your own.  It is this kind of listening that James MacGregor Burns says is the cornerstone of transformational leadership – the kind of leadership that can transform organizations and communities.

Gathering input from others does not mean you have to individually interview each one of them or that they all have to be on your strategy planning group.  You can do some interviews, but also do focus groups, surveys, and/or town halls.  Provide opportunities for meaningful involvement and input.

Without demonstrated opportunities for people to provide voice, organization leaders run the risk of falling into a fateful pitfall that consultant and author Peter Block calls leadership by lamination.  This is the mistake that leaders make when they go to a mountaintop retreat and come back with a new vision that they print on the back of every employee’s business card, and then laminate it.  Think of it.  If you had an idea of how to make a slight improvement to the vision, you can’t even write it on the card -- it’s laminated.

Don’t provide leadership by lamination.  Involve others.

Next up soon, Deadly Sin #3.  Stay tuned.


For more ideas on how you can lead breakthroughs in your organization, follow this blog and check out my web site at www.SheehanNonprofitConsulting.com   You will find free resources you can download, including a Breakthrough Strategy Workbook that you can download at no cost.  You can also check out my book, Mission Impact:  Breakthrough Strategies for Nonprofits, and buy it if you are interested.  And you can follow Sheehan Nonprofit Consulting on Facebook.

Wednesday, April 6, 2011

The 1st Deadly Sin of Nonprofit Strategy: “It’s Just Sitting on the Shelf”

This is the first blog in a series that will review my Seven Deadly Sins of Nonprofit Strategy.  And the first is, by far, the worst:  “It’s Just Sitting on the Shelf.”  This means, of course, that the nicely bound final strategic plan report is just sitting on a shelf and not being implemented in any way whatsoever.

The reason it is the worst is because it is so pervasive and represents a huge waste of money and time – from staff, volunteers, and stakeholders who are asked to participate.  This sin can be deadly, indeed, when board members or donors realize the hours they have wasted from making strategic plans that are never implemented.  And for the attorneys on your Board, those are billable hours.

Why does this happen?  I think the responsibility goes, in this order, to CEOs, Boards, and Consultants.

CEOs fall into the trap of knowing that they should do strategy, but they don’t know how.  So, they call a consultant to tell them what to do.  What they need to do first is to get at least minimally informed.  Read a book or at least a few articles.  Yes, I have free articles on my web site and I have a book – but there are lots of good books out there on strategy.  If you don’t want to read mine, I’d suggest John Bryson’sIf you go into the process informed, then you can work with a consultant to make sure you get a final product that will help you lead and manage the organization for the coming years.  You are the Chief Strategy Officer and you need to own the process.

Boards need to be engaged in the strategy process and hold the CEO accountable for actually implementing the plan.  Even the worst strategic plans I have seen can be turned into actionable ideas by adding specific, measurable goals – for example.

Consultants – my sisters and brothers – shame on us when we let CEOs rely on us too much.  We know we are leaving town after the ink dries on the last flip chart page.  We can’t leave these folks hanging out there like this.  We need to push CEOs up front on what kind of final product will really help them run the organization.  My approach includes the idea that I don’t write up the final product.  We finish the core elements of the strategy together, but the CEO and senior staff need to figure out how to write it up for their different audiences.  Of course I collaborate with them on how this is done, but it is their plan – not mine.  It needs to be written in their voice.

Nonprofits need to heal themselves from this deadly sin by getting informed, taking responsibility for the process, and holding one another accountable for actually implementing the strategy.  And don’t hire consultants to create a plan for you.  Hire them to collaborate with you to assist in creating your plan.

Stay tuned – six more deadly sins to come.


For more ideas on how you can lead breakthroughs in your organization, follow this blog and check out my web site at www.SheehanNonprofitConsulting.com   You will find free resources you can download, including a Breakthrough Strategy Workbook that you can download at no cost.  You can also check out my book, Mission Impact:  Breakthrough Strategies for Nonprofits, and buy it if you are interested.  And you can follow Sheehan Nonprofit Consulting on Facebook.