Strategic planning is designed to help nonprofits set their direction and priorities. It can be beneficial for providing a roadmap to nonprofit staff and aligning stakeholders around an organization’s mission and plan for achieving its goals.
While at Prosper Strategies, we advocate for every nonprofit to develop a strategic plan, there are instances when creating a new one may not be the most appropriate course of action. In this article, I’ll explore when nonprofits should reconsider embarking on a new strategic planning journey, opting for shorter-term planning or delaying planning altogether.
When there is a lack of stability at your nonprofit
If your nonprofit is facing significant instability, whether it be financial challenges, leadership transitions or other factors impacting operations, it may not be the ideal time to create a new strategic plan.
For example, if your nonprofit is in the process of hiring a new executive director or CEO, your board or fellow nonprofit leaders may be eager to get strategic planning underway. However, I would recommend against this. A nonprofit leader should play a key role in the strategic planning process and should absolutely be integral to charting a new course when they come on board. Strategic planning is also a great opportunity for this person to engage with a nonprofit’s many diverse stakeholders, and can serve as an opportunity for a new leader to listen and learn from various groups. For these reasons, we always recommend nonprofits hold on strategic planning until the new leader has been hired.
I’ve also seen cases where almost entirely new leadership teams come on board, and organizations choose to delay planning until these individuals have more time to discover the ins and outs of their departments and the organization before engaging in longer-term planning.
It is important to address immediate challenges and stabilize your nonprofit before dedicating resources to long-term strategic planning.
When there are a lack of resources
Strategic planning requires time, effort and resources. The strategic planning process can take anywhere from four months to a year (in rare cases more), and it generally requires consistent, dedicated time from nonprofit leadership teams on a weekly basis. Board members are also involved in the process to varying degrees.
It’s important not to overburden your organization during times of limited capacity. If your nonprofit is experiencing severe resource constraints or is unable to allocate sufficient staff or financial resources to support the planning process effectively, it may be wise to postpone creating a new strategic plan.
When your nonprofit is experiencing an identity crisis
If your nonprofit is experiencing an identity crisis or significant internal conflicts, you should resolve these issues before establishing a shared vision and strategic direction.
For example, if there is misalignment about your nonprofit’s mission, brand, scope, delivery model or intended impact, you’ll want to address that before beginning longer-term planning. In some cases, it’s better to engage in activities like organizational development, team-building or conflict resolution. These activities will lay the foundation for a successful strategic planning process in the future.
When external factors are dominating the landscape
In certain circumstances, external factors might be rapidly changing or uncertain, making it challenging to predict the future accurately. The COVID crisis is a good example of this. Many organizations created bridge plans that were extensions of existing strategic plans or one year plans designed to help them navigate changes they needed to make as a result of the pandemic.
Hopefully those were extraordinary circumstances, but that’s not to say new external factors won’t impact your nonprofit’s grand plans. The economic environment, regulatory climate or even technological advances can all create uncertainty. During these times, you may find it more beneficial to adopt a flexible and adaptive approach rather than committing to a long-term strategic plan. Continuously monitoring the environment, staying informed and making adjustments can help you navigate the ever-evolving landscape more effectively.
What to do instead of strategic planning
While strategic planning is valuable for nonprofit organizations, there are instances when creating a new strategic plan may not be the best choice. In these instances, we advocate for shorter-term planning that focuses on helping nonprofits identify two to three priorities or things that need to be accomplished over the next six months or one year.
Carefully evaluate the circumstances at your nonprofit, considering factors such as stability, urgency, resource availability and external factors before committing to a new planning process. Even if a formal strategic plan is not feasible at the moment, it’s important to maintain strategic thinking, reflection and adaptability to ensure continued progress towards your mission and goals.
