A couple of years ago, I was invited to propose a project to a prospective client in the health & human services industry. The client had developed a “plan” previously (2019). He explained that he was now looking for help updating it.
Many people use the word “plan” when they really mean “strategy,” and since 2019 was pre-pandemic, I assumed he meant the latter. After all, it was clear from our conversation that his business and industry had changed dramatically over the past few years.
To my amazement, what he had in mind was, in fact, just a plan. He saw no reason to make any adjustments — pandemic-related or otherwise — regarding his business. All he wanted was help refreshing the plan’s goals and coming up with some additional, aspirational ideas, similar to those in his last plan that were prefaced with words like “explore” or “consider.”
I realized we were not on the same page about what was needed, so I declined to take on the project.
Unfortunately, I see this kind of thing often: an organization’s “strategic plan” is nothing more than a bullet-point list of high-level goals and some ideas to consider in the future.
That’s possibly helpful at some level. But absent an understanding and assessment of the broader framework within which the business operates, this kind of to-do list, as the old joke goes, can result in “making good time” while still remaining hopelessly lost.
Context and Priorities
Organizations don’t operate in a vacuum. Whether they are a nonprofit or a for-profit enterprise, if the context in which they operate has changed (eventually, it always does), the strategy and the plans that result must evolve as well.
The relevant changes can be of several different types, such as…
Changes in technology.
For example, prior to the turn of the century, organizational web sites were, for the most part, nice-to-haves. It didn’t take long, however, for the company web site to become an essential element in every organization’s marketing mix (even if, initially, they were mostly just static, basic information about the company).
A few years after that, as smart phones became ubiquitous and technology evolved further, those same web sites now needed to be both interactive and “adaptive” (i.e., readable and functional on a phone).
A cutting-edge, year 2000 web site, while perfectly fine then, would be of zero value today.
Changes in competitors.
Even for nonprofits, when another organization develops a different approach to meeting the needs of those you serve, you need to pay attention. For example, universities are facing increasing pressure from lower-cost, highly focused certification programs or tuition-free community college programs.
Changes in demographics.
Many performing arts organizations need creative ways to sustain programs long popular with their now, older audiences. As that population ages out, these groups will only survive if they can attract new, younger audiences with relevant programming.
What to Do
When an organization defaults to a basic to-do list without considering context and prioritizing future activities on that basis, it is essentially operating in the dark. There’s no good reason to believe what worked yesterday — at a particular time and under a particular set of circumstances — will still work today.
With that in mind, here are three suggestions for applying a strategic approach within your organization:
#1. Understand your Constituents
Generic approaches rarely take hold; it’s essential to develop strategies that reflect the needs, desires, and problems of your chosen audience(s).
Surveys are a useful way of getting closer to this information, provided you avoid common survey pitfalls and conduct these well. (You may want to seek outside assistance if you are unsure how to proceed.) In-person conversations can be especially useful in helping uncover issues and opportunities you may not have previously considered.
Also, if your organization is regional in nature, you may be able to gain insights from similar organizations in other regions. While there are regional variations to consider, you may uncover things that can be applied locally.
#2. Engage an External Perspective
Many organizations develop a strategy using only internal resources. But there are challenges with this.
One is confirmation bias. People who have been with an organization for a while tend to value what they currently offer and are likely to hear support for status quo from the feedback they receive. Another is that those questioned tend to provide less candid feedback when speaking to insiders. Using external advisors minimizes both of these challenges.
Further, external advisors who have worked with different kinds of organizations can help trigger new insights based on their broad experience with other companies, industries, and locations in which similar situations may have arisen.
#3. Take an Investment Perspective
One of the most important reasons to develop a strategy with a multi-year perspective — rather than a near-term to-do list — is that some ideas or opportunities may take more than one year to develop. They may require your organization to accept some near-term challenges in order to allocate resources to build for the future.
Reflections
A good strategy helps in deciding what you will do — and what you will not do. It provides a roadmap towards a future that remains strong and sustainable, while guiding priorities and decisions about resource allocation in the near term and along that same path.In other words, a good strategy is much more than a simple to-do list!
