Unotida Nyoni is Founder and CEO of Grand Scale CFO. He helps leaders of development organizations scale their impact and improve their cash flow by providing coaching, training, and consulting in the areas of strategy, people, execution, and cash.
Disclaimer: This article was submitted to WorkwithUSAID.gov as a guest blog post. The views expressed by WorkwithUSAID.gov guest blog contributors do not necessarily reflect the views of the United States Agency for International Development (USAID) or the United States Government.
As someone who works with organizations in the international development sector, I find that many struggle with designing effective and winning strategic plans. Often this plan is only known by the Executive Director and the board. They draft a document every five years and revisit it when they are in deep trouble and/or need new leadership. It is written in a complicated MBA language that is not easily understood by everyone. It is often a long document that no one takes time to read, except the consultants who are hired to write it to justify their high fees. Strategic planning is often considered to be a waste of time by many in the organization because it distracts them from getting “important work” done. There is frequently no direct relationship between daily operations and the strategic plan.
If you can identify with the above-mentioned scenario, below are some important points that will help you make strategic planning work for your organization.
A strategic plan is more than just a document; it’s a blueprint and a guide outlining an organization’s purpose, values, goals, and the actionable steps needed to achieve these objectives. We can look at it as a compass guiding every decision and action that the organization takes. A strategic plan answers and outlines fundamental questions and objectives (i.e., why the organization exists, where it’s headed, how it plans to get there, who’s responsible, and when goals will be achieved). A strategic plan provides clarity, alignment, and a shared sense of direction.
Without ongoing commitment, consistent buy-in from your team, and adaptation of the plan and its goals, this great tool runs the risk of becoming pointless.
When everyone understands why they need a plan, they are more likely to buy into the process of strategic planning. So why should you have a strategic plan?
First, it creates cohesion between different teams and departments. Picture this: you’re on a boat with four of your team members all rowing, in your own way in opposite directions. A recipe for disaster and you’re definitely going nowhere slowly. When everyone understands the shared goals and their role in achieving them, collaboration flourishes. This mutual understanding of the goals and objectives reduces any confusion among employees; furthermore, it aids decision-making and ultimately enhances productivity.
Second, a strategic plan optimizes resource allocation, as everything is well outlined within the plan. In an organization, it is vital to identify priorities and allocate resources accordingly. This allows for the optimization of time, energy, and finances, resulting in maximum impact.
Last, a strategic plan serves as a roadmap for growth. It enables organizations to anticipate challenges, seize opportunities, and adapt to evolving market dynamics proactively.
When it comes to strategic planning, a One-Page Strategic Plan (OPSP) is a revolutionary tool pioneered by Verne Harnish, the author of the book Scaling Up. Despite its simplicity, the OPSP encapsulates the essence of strategic planning, condensing it into a single-page document.
The beauty of the OPSP lies in its simplicity and comprehensiveness. By condensing and simplifying complex strategies into a concise plan, it fosters clarity and focus. Moreover, the limited space compels organizations to prioritize ruthlessly, ensuring that only the most critical objectives make the cut.
Creating an OPSP isn’t only a task for the Chief Executive Officer (CEO) or Executive Director; it’s a collaborative effort. Gathering the leadership team offsite for dedicated planning sessions fosters focus and creativity, away from the distractions of daily operations. Additionally, enlisting an external facilitator can provide invaluable insights and ensure that all voices are heard.
While the designing of the plan can be done by the leadership team, the plan needs to be shared with every employee. The beauty of the OPSP is that one can easily share it in a few minutes. This can be during induction of new team members, in town hall meetings, or in the monthly, quarterly, and annual review meetings. It is the best snapshot of what the organization is about and what the current priorities are.
The OPSP has a quarterly section that is reviewed at the end of every quarter. If the leadership team is in the habit of reviewing results and planning each quarter, and they use the strategic plan in doing so, the plan becomes a living, breathing document. It is used to decide priorities for the next quarter.
In conclusion, a strategic plan isn’t just a document; it’s a mindset, a process, and a catalyst for organizational success and development. By embracing simplicity, collaboration, and adaptability, international development organizations can better navigate, plan, and achieve their objectives with confidence and clarity.