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STRATEGIC PLANNING 81931 NMAC 8/7/03 11:57 AM Page 1 ORGANIZATIONAL EFFECTIVENESS SERIES Needs Program Assessment Development Fiscal Strategic Management Planning Volunteer Grant Technology Management Writing Development Human Resources Surviving an Audit Board Development Program Evaluation Faith-Based Starting a Leadership Nonprofit Development Leadership Development STRATEGIC PLANNING 81931_NMAC 8/7/03 11:57 AM Page 1 Dear Colleague, On behalf of the National Minority AIDS Council (NMAC), thank you for picking up this manual and taking a step toward increasing your capacity in this struggle. As we enter the third decade of HIV/AIDS, it is more important than ever to develop our skills and knowledge to better serve our communities and our constituents. NMAC, established in 1987 as the premier national organization dedicated to developing leadership within communities of color to address the challenge of HIV/AIDS, works to proactively produce and provide skills-building tools to our community. One such tool is the manual that you hold in your hands. The Technical Assistance, Training and Treatment Division’s mission to build the capacity and strength of community-based organizations, community planning groups for HIV prevention and health departments throughout the United States and its territories is supported through a multifaceted approach. This approach includes individualized capacity- building assistance, written information (manuals, publications and information provided through NMAC’s website and broadcast e-mail messages) and interactive learning experi- ences (trainings). All components are integral to providing a comprehensive capacity- building assistance experience, as opposed to offering isolated instances or random episodes of assistance. After undergoing a revision of existing curricula and publications and an expansion of our current catalog of subject areas to include more organization infrastructure topics, NMAC is proud to present you with this new manual, Strategic Planning. One of 15 topic areas in which we provide capacity-building assistance, this manual will provide you with detailed information, resources and the knowledge to enhance your capacity to provide much- needed services in your community. Our hope is that this revised manual will give you the skills and knowledge to increase your capacity and serve your community at a greater level than ever before. Please feel free to contact us if you would like further information on other services we can provide to you and your community. Yours in the struggle, Paul Akio Kawata Executive Director 1 81931_NMAC 8/7/03 11:57 AM Page 3 Contents Preface ......................................................................................5 Introduction ...............................................................................7 UNIT 1: Understanding Strategic Planning .................................9 I. A Definition of Strategic Planning .......................................................11 II. The Strategic Planning Process ...........................................................14 UNIT 2: Initiating The Planning Process ....................................19 I. Getting Ready ....................................................................................22 II. Organizing a Strategic Planning Committee .......................................27 UNIT 3: Developing a Mission and Vision ................................33 I. Mission Statements ............................................................................35 II. Vision Statement ................................................................................38 UNIT 4: Conducting an Environmental Assessment .................41 I. Assessing the Environment ................................................................43 II. Competitive Analysis of Programs ......................................................49 III. Identifying Critical Issues ....................................................................52 UNIT 5: Developing Goals, Strategies, and Objectives .............55 I. Defining Strategies, Goals and Objectives ..........................................57 II. Strategies and Goals ...........................................................................57 III. Developing an Annual Operating Plan ................................................63 UNIT 6: Writing the Strategic Plan ...........................................65 I. Writing the Strategic Plan ...................................................................67 Post-training Assessment..........................................................71 Appendix A: Glossary .............................................................73 Appendix B: Frequently Asked Questions ...............................75 Appendix C: Bibliography ........................................................77 3 81931_NMAC 8/7/03 11:57 AM Page 5 Preface Organizational Effectiveness uccessful community-based organizations (CBOs) can attribute their success to Semploying 15 key components that support organizational effectiveness. See the model below. Ongoing learning and training in each of these areas will allow your organization to meet the needs of your constituents. For information regarding training in any of these areas, contact the National Minority AIDS Council’s Technical Assistance, Training and Treatment Division by telephone at (202) 234-5120 or by e-mail at [email protected]. ORGANIZATIONAL EFFECTIVENESS MODEL Board Development Faith-Based Leadership Development Fiscal Management Grant Writing HIV Prevention Community Planning Human Resources Leadership Development Needs Assessment Program Development Program Evaluation Starting a Nonprofit Strategic Planning Organizational Surviving an Audit Technology Development Effectiveness Volunteer Management 5 81931_NMAC 8/7/03 11:57 AM Page 7 Introduction Purpose Nonprofit organizations must have a grounded starting point to effectively accomplish their missions. A strategic plan is a vital tool and an important process that helps an organization reach its goals and achieve success. The purpose of this training manual is to provide learners with the fundamentals of building a successful strategic plan for operating a nonprofit support organization for AIDS advocacy, prevention and treatment. This manual presents information for preparing a strategic plan for people with varying levels of experience in strategic planning. Learning Objectives Upon completion of this workshop, learners will be able to: ✓ Explain the importance of a strategic plan. ✓ Define the key components of strategic planning. ✓ Explain the structure of strategic planning. ✓ Initiate the strategic planning process within their organization. ✓ Articulate a mission and vision. ✓ Conduct an environmental assessment. ✓ Explain the differences between strategies, goals and objectives. Introduction This manual offers a framework for strategic planning with suggestions developed specifi- cally for nonprofit organizations dedicated to AIDS advocacy and prevention. Those who already have experience with strategic planning will find this a useful refresher and “source book” of fundamental techniques. Those without such experience will find this to be a comprehensive tool and roadmap to use in building a strategic plan. This workbook defines what strategic planning is — and is not — and explains how to make the best use of the strategic planning process. When strategic planning works, it is both a creative and a participatory process that builds new insights into helping a group pursue its mission. It is also an important tool that, when used correctly, can help AIDS service organizations achieve their goals. But, a tool’s effectiveness ultimately depends on how well it is used. With this manual, we hope to help learners develop and execute well sound strategic plans that ensure the viability and suc- cess of their organizations. 7 81931_NMAC 8/7/03 11:57 AM Page 8 Pre-training Assessment The pre-training assessment below is an opportunity for you to check your own knowledge against the information that will be provided in this manual. The correct responses to the assessment are located on page 71. Pre-training Assessment Please circle either True or False for the following statements. 1. True False Strategic planning is the same thing as long-term planning. 2. True False Organizations should have a strategic plan, regardless of whether or not they are ready to plan. 3. True False Four key criteria for building a strategic plan are having a mission and values; environmental assessment; developing strategies, goals and objectives; and writing the strategic plan. 4. True False Strategic planning prepares for an exact result desired in the future. 5. True False Strategic planning is not necessary in nonprofit organizations. 6. True False Only one individual is needed to develop and build a strategic plan. 7. True False The executive director and board chair are the two most important internal individuals for developing a strategic plan. 8. True False SWOT stands for strengths, weaknesses, opportunities and threats and helps an organization look internally only. 9. True False The critical issues an organization faces help it to determine which strategies it will pursue. 10. True False Editing, proofreading, and generally “polishing” a strategic plan are not as important as the project ideas contained within it. 8 81931_NMAC 8/7/03 11:57 AM Page 9 UNIT 1: Understanding Strategic Planning Purpose: The importance of advance preparation cannot be overemphasized. Before the
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