Organizational Planning Primer
An Introduction To Planning In His efforts to communicate the true meaning of discipleship, Jesus spoke to the large crowds that followed Him in terms in which they could immediately relate: “For which one of you, when he wants to build a tower, does not first sit down and calculate the cost to see if he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who observe it begin to ridicule him, saying, `This man began to build and was not able to finish. ' "Or, what king, when he sets out to meet another king in battle, will not first sit down and consider whether he is strong enough with ten thousand men to encounter the one coming against him with twenty thousand? " (Luke 14:28-31) Everyone has goals and intentions. Everyone makes plans and no reasonable person would launch on a course without first taking into consideration important factors that could impact their ability to succeed.
Planning and Stewardship The Word of God makes it clear that God created all things ... " ... The earth is the Lord's, and everything in it, the world, and all who live in it; for He founded it upon the seas and established it upon the waters" (Psalm 24:1-2). It is equally clear from the Scriptures, that God created mankind to manage His creation... "...so God created man in His own image, in the image of God he created him; male and female He created them. God blessed them and said to them, `Be fruitful and increase in number; fill the earth and subdue it. Rule over the fish of the sea and the birds of the air and over every living creature that moves on the ground. ' The Lord God took the man and put him in the Garden of Eden to work it and take care of it. " (Genesis 1:27,28; 1 Copyright 1993. Not to be reproduced.
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2:15). A steward is someone called upon to manage the affairs of another. In the case of those who have been entrusted with leadership, your primary role is that of a steward. It is to you that the mantle of leadership has fallen. It is to you to whom Paul wrote ... "…moreover it is required of stewards that a man be found faithful" (1 Corinthians 4:2)
Developing A Biblical Philosophy Of Planning This study is designed to walk you through a process of planning. Before you begin, however, it is important that you develop a Biblical philosophy of planning. In the space that is provided below you will be asked to respond to specific questions relating to the planning process. The background for your comments will be selected portions of the Word of God. The themes that are suggested in this study are intended to enable you to think through the various components of planning. Write down your perspectives on the following questions from these Biblical references: How does God look at leadership (Numbers 12:1-9)? Should planning be the result of consensus (see Numbers 14:1-4)
What was the mission of the early church (see Matthew 28:1820; Acts 1:8)?
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What role should "mission" have in planning?
What perspective does Matthew 6:25-33 provide planners?
What perspective does Acts 16:7 provide planners?
What perspective does James 4:13-15 provide planners?
What perspective does Luke 14:28-31 provide planners
What perspective does 1 Corinthians 4:1-4 provide planners?
Your Philosophy Of Planning From your understanding of these and other Scriptures, write a statement below that reflects your philosophy of planning.
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Chapter One The Importance Of Planning Development Marketing Associates (DMA) has assessed the developmental health of Christian ministries through a variety of evaluative instruments. The most widely used instrument, The Comprehensive Development Assessment, has been administered to over 500 different evangelical ministries and has revealed startling information concerning issues relating to planning. The fact is, most Christian ministries don't plan. Statistical analysis indicates that only 12% of all the evangelical ministries have a comprehensive strategic plan that states where the organization is going and articulates the process through which they intend to get there. It's no wonder that organizations give the appearance of floundering, seeking to establish their identity in a crowded market place. They are!
Why Organizations Don’t Plan One could talk to members of the Board of Directors of these organizations and ask questions relating to the importance of planning and most would undoubtedly agree that planning is essential. If one were to look at the businesses represented by those who serve on these boards, it is likely that there would be clear examples of planning evident. Why don't these same leaders bring to the ministry board table the same commitment to planning that they exhibit in other areas of their life? Consider the following: •
A Mission Which Is Difficult To Quantify. Most businesses have a clearly articulated mission which can be easily quantified. A manufacturing firm exists to produce products, a restaurant seeks to deliver fine cuisine, and a retailer seeks to sell product to an identifiable clientele. Specific goals regarding production, sales, and impact are easily established and progress measurable. While most evangelical ministries have a mission statement, it is often difficult to quantifiably measure whether or not progress is being made in the achievement of that mission.
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Resources are Difficult to Project. Revenue streams are easily projected in most businesses. Christian ministries generally don't 4
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produce predictable income and the additional money required for capital expansion is difficult to project. •
Leaders are Reluctant to Lead. Most board members of evangelical ministries volunteer their time to assist those organizations in which they believe and administrative staff are reluctant to infringe more on them. Administrative leadership may also be intimidated by the successful businessmen and women who serve on their boards.
While there may be several reasons why organizations don't move forward in pro-actively planning their future, these three reasons represent the most significant.
The Dangers Of Not Planning It is estimated that 90% of all non-profit ministries are managed reactively. In many instances, the way these organizations are managed reflects how they began. A crisis existed in the community where they provide their services and a group of individuals joined together to establish a ministry to meet the need. Little time was committed to thinking through what the organization would look like, how big it would become, the breadth of services it would provide, and how future development would be financed. Growth often occurs when an organization comes into existence which meets a felt need. Since little attention was given to future development, organizations tend to react to the variety of circumstances that they face. Reactive management styles tend to be seen in a variety of ways. Have you ever seen an organization that looked like this? •
No Clear Focus. The mission of the organization seems to constantly change from year to year.
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Inadequate Facilities. The facilities of the organization have been added to meet changing needs and show no evidence of thoughtful planning.
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Frequent Leadership Changes. Administrative and board members pass through the organization like people passing through a revolving door.
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A Lack of Resources. There's never enough money or people to 5
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do the job that needs to be done.
Why Long Range Plans Fail Often organizations, recognizing the importance of planning, launch initiatives to set a course for the future. Unfortunately many of these plans never are achieved and, in many instances, what was intended to increase morale among constituents actually ends up demoralizing them. There are reasons why long range planning initiatives fail to achieve their intended purposes. Make special note of the following: •
Plans are Created Without Cost Constraints. Many times organizations plan without any consideration of available funds. It's the "pie in the sky by and by" philosophy of dreaming without constraints. While there is an initial enthusiasm for the visionary new ideas incorporated in the plan, reality quickly sets in and people begin to realize that the plans are unlikely ever to be achieved.
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The Wrong Planners. Occasionally boards will seek volunteers to coordinate the planning initiative. Unfortunately, they often get them! And often, each volunteer uses their new position as an opportunity to push their own agenda.
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No Guidelines (or Guidance). Too often plans are conceived without any guidelines. People are asked to create a map without a destination. The sky is the limit because there is no guidelines to direct the planning process.
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No Implementation Plan. It's one thing to create a plan and quite another to develop a program that provides for its incremental implementation.
Thinking Through Your Needs In the space provided below, write down five words that seem to describe the ministry with which you are involved?
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Write down the specific areas that need to be clarified in your organization?
How would you know if your ministry was successful? List specific ways in which your organization could measure its success.
Are you doing these things?
What are the five greatest needs of your organization?
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Chapter Two
Setting A Budget For Planning Every long range plan has a dollar sign attached to it. It is impossible to achieve the vision you have for your ministry apart from an influx of money beyond traditional sources of income. The first step in the long range planning process is determining the amount of money you might have at your disposal as you move forward in your plans for the future.
Where Money Comes From It is important to understand where the funds you will require for ministry development will come. There are four primary sources: •
Fees. Many organizations charge fees for the services they provide. These fees are used to offset administrative expenses and are frequently used to fund growth and development.
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Annual Gifts. Often there are a large group of friends who choose to support your ministry through making regular gifts. Organizations generate these funds through programs, projects, activities, and special events.
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Capital Gifts. Occasionally organizations will orchestrate a "capital funding campaign" to raise funds for expanding facilities and programs.
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In Kind Contributions. In many organizations, individuals might offer professional services or products at no cost (or for a reduced cost).
Setting A Budget For Planning One of the first pre-planning activities ought to be the creation of a planning budget. Once planners have perspective on the amount of money that might be available to them to implement a plan, they can begin a process of assessing their needs in view of what is most important to complete in order to fulfill their vision for ministry. Sense most visionary plans will require more money to implement than what the organization can generate through normal sources of income (tuition, fees, etc..), it is important to have an idea of the 8 Copyright 1993. Not to be reproduced.
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amount of money that could be raised should the organization choose to enter a funding campaign. Certain formulas have proven to provide the kind of accurate prognostications required to establish a planning budget. Take time to complete the feasibility assessment exercise.
Determining Your Funding Potential Every organization has the potential to raise a certain amount of money at any time. It is important to know what that amount of money is and what the organization can practically do to increase its potential. The following exercise can help you to determine your funding potential: •
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The Annual Giving Contribution. The people who are most likely to support your capital development are the people that are currently financially supporting you. Take the average amount of annual gifts you receive from individuals (be careful not to count fund-raising project income, i.e.. the money you raise through fund-raisers) and multiply that number by five. Insert that number:_________________________ The Contributions of Individuals. Because your organization is a ministry, it stands to reason that there are those within the body of Christ who might have an interest in becoming financially involved in supporting your work. Take the number of churches that are impacted directly by your ministry (they either provide workers, clients, or support dollars to assist you), multiply that number by $100,000, and multiply that number by .02. Insert the results of that exercise here:______________ Collective Group Activity. You could anticipate that there are individual groups of constituents who might want to raise money for you through special funding activities. Their efforts could generate a minimum of 5% of your annual operating budget. Take the number that represents 5% of your annual operating budget and place it in the adjacent space.__________________________ Major Donor Involvement. Begin creating a list of individuals that you know or with whom you have built relationships that you feel could contribute $5,000 or more providing their could amortize their commitment over a period of three years. Divide that number by 4 and multiply the answer times $5,000. Insert the answer here:_____
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In Kind Contributions. It is possible that people might come forward and make contributions of goods or services to support your capital development. If you are projecting the need for changes in your physical facilities, determine the amount of money that you project this capital development would cost and multiply that number times .15. Record the answer in the adjacent space:___________________________ •
Other Sources. You could anticipate income through a capital funding program from other sources like foundations and deferred (planned) gifts. Add an additional $10,000 from miscellaneous sources.______________________________________
If your organization were to total the numbers in the spaces you have completed (plus the additional $10,000 from miscellaneous sources) you will have an idea of the capital potential of your organization. What is that number?_______________________________
Fudge Factors There are some subjective factors that can determine whether or not you could anticipate success in any major capital funding initiative. The four factors are: • Funding Potential. You should examine the number you have come up with from the feasibility worksheet and evaluate it in relationship to your projected funding need. •
Prevailing Attitudes. An organization should come up with some means of being able to objectively assessing the prevailing attitudes that exist among those with whom you are most closely linked. If people feel good about your organization and the work that it is accomplishing, they are likely to support your funding initiatives. If they feel frustrated with what you are doing, they are not likely to support you in any significant way.
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Perceived Need. It is important that your organization create an iron-clad case for the need for which you will seek financial support. If people feel that the need is real and justified, they will probably come forward with the support you require. If they feel that there is little or no need, they will probably resist supporting your cause.
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Comprehensive Plan. Constituents need to know that the need for which you seek support is part of a more comprehensive plan that you are seeking to achieve. Donors need to know that you are not "shooting from the hip" in your organizational development. It is 10
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important to communicate that you are moving on a clearly established path that is taking you to where you feel God is leading you. In assessing your feasibility potential, you can ascribe a maximum of ten percentage points for prevailing attitudes, perceived need, and comprehensive plan. These are the "fudge factors" that can increase or decrease your feasibility bottom line by as much as 30%.
The Long Range Planning Matrix There is a rule in development that says, "you should not go into a capital funding campaign within five to seven years of the beginning of the previous campaign." This developmental rule emphasizes the fact that campaigns are cyclical. Many organizations plan a major capital funding initiative every five to seven years. By doing so they commit to achieving their long range plan in phases, funding each phase through the proceeds they gain from successful funding initiatives. Your organization's campaign potential changes as you improve your developmental health. You may have the potential of raising $1 million today but that could increase in a year by just concentrating your attention on developing your sources of money through a proactive development program. In the appendix, a planning matrix is provided. You can construct a "campaign ladder" that can serve as a means of projecting the potential financial resources you might have available should you continue to show modest progress in your development activity. This can serve as a guide in "phasing" the implementation of your long range plan.
Planning Exercises What do you see as your organizations developmental strengths'?
What do you see as developmental weaknesses?
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Prioritize those things that you feel your organization must address developmentally to improve itself.
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Chapter Three Constituent Attitudes And The Five Areas Of Planning People have a perception concerning your ministry. They either feel very positive about what you are doing or they feel somewhat apprehensive about you. While it is easy to be critical of our supporters, organizations need to be aware of the fact that they are the ones who are responsible for the attitudes that are demonstrated among their constituents.
The Attitude Continuum Think of your constituents somewhere on an imaginary line. On one end of the line you have the word "cynical" and on the other end of the line you have the words "unbridled enthusiasm" Everyone familiar with your ministry is somewhere between being cynical about you and your work and totally enthusiastic about what you do. Not everyone associated with your ministry is at one extreme or the other. If the center of the line reflects ambivalence, to the right you could identify specific attitudinal steps that lead to cynicism. They might be reflected in words like: discouragement, frustration, and apathy. People initially become discouraged with you, then their discouragement leads to a more active frustration, they become apathetic in their attitude towards you, and eventually become cynical. To the left of ambivalence you might see words like encouragement, hope, and enthusiasm These reflect the positive responses of people with whom you are associated. They become encouraged, then hopeful, their hopes yield to encouragement, and to the degree that they see you progressing toward your goals they become totally enthusiastic about your work. Where anyone is on the attitude continuum is predicated on their perception of your ability to do what you say you plan to do. To the extent that you say you are going to do something and do it, people move toward being totally enthusiastic. To the extent that you say you are going to do something and don't, they begin moving toward cynicism.
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Leaving A Trail Of Success Long range (strategic) planning can have a positive impact upon supporters of your organization. People get excited about visionary plans. After the creation of a plan, people begin to watch and wait. When they see action toward the goal they become enthusiastic but should they see nothing ever happen as it pertains to the visionary plans you announced, they will move toward cynicism. It is very important for every organization to show progress in everything it does. This progress needs to be reported. Reports of success need to be shown within the broader picture of where it is you are going. Leaving a "trail of success" can produce the kinds of attitudes among your constituents that will be essential if your organization is to achieve its vision for the future.
Areas Where Every Organization Should Plan There are five broad areas that need to be included in your long range plan. These five specific areas include the following: •
Facilities. Your facilities "facilitate" your ability to achieve the fulfillment of your organizational mission. Your long range plan needs to assess the sufficiency of your facilities to achieve your mission, changes within existing facilities that must occur, and any expansion that may be required to accommodate your growth and development. .
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Curriculum. Your curriculum reflects programmatic activities in which your organization is involved. The plan for the future of your organization ought to assess current programs and project changes that might need to occur to more effectively and efficiently achieve the fulfillment of your mission.
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Co-Curricular Activities. Most organizations promote involvement in activities outside their primary thrust. It is felt that involvement in these "extra" activities supports (complements) the fulfillment of the mission. A long range plan for an organization needs to look at co-curricular activities and plan for their implementation (if needed).
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Clientele. How large will your organization become? How many people can you effectively service (or minister to)? The size of 14
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your organization needs to be addressed in long range planning. Should growth be projected, phased development ought to be considered in all other areas that the plan addresses, i.e. facilities, curriculum, etc. •
Personnel. All long range plans need to take into consideration personnel issues, specifically issues relating to salaries, benefits, and organization. Your future plan needs to assess the current situation and make projections for expansion if it is required.
Accessing Your Organizational Needs In regard to the issues that have been included for your consideration in this chapter, answer the following questions. Where do you feel people are on the attitude continuum in your organization?
Why are they there?
Are there areas that you can identify within your organization where you could report success?
How could you report success to constituents?
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Prioritize the five areas of planning as you feel they must be dealt with in conjunction with your organization. As important as planning is for any organization, the selection of the planners is also extremely important. The wrong planners can use the planning process to implement their personal agenda and, in doing so, could move the organization far from its stated purpose.
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Chapter Four Selecting Your Planners The Long Range Planning Committee The Long Range Planning Committee should be composed of seven to ten people. Generally they will all be board members and administrators of the organization. While others will be strategically involved in the planning process, e.g. Task Forces composed of constituents outside the management team, they will not be responsible for putting together the final plan. The final long range (strategic) plan will be assembled by the Long Range Planning Committee.
Maintaining Control Of The Planning Process It is essential for leaders of an organization to lead. Unfortunately, in many long range planning activities the leaders relinquish their responsibilities and turn over direction to others. The key to the success of long range planning is to maintain control over the entire process. There are four specific ways in which organization's can maintain control of this essential administrative function. Make special note of the following: •
Selecting the Planners. While it is appropriate to engage those outside the administrative structure of the organization in the planning process, it is important that leaders don't "deal away" the responsibilities to which they have been entrusted. Once you have selected the specific thrusts that will be included in your plan you may want to create Task Forces to assist in providing the input essential to good planning. Each Task Force should be chaired by a representative of the organizational leadership team and staffed by carefully picked representatives of key constituent groups.
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Setting A Budget. Determine the amount of money that you feel could be realistically raised to fund your plan and provide each Task Force with a budget for planning. A budget is helpful in prioritizing initiatives. Limited funds also enhance the creativity of planners who often seek to maximize the impact of their plans despite limited resources. Establishing an Agenda. The organizational leadership team should seek the assistance of the respective Task Force in assessment, research, prioritization, and recommendations. A suggested agenda should be provided the Task Force to guide
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them in their deliberations. While planners ought to have the freedom to move beyond what has been suggested to them as practicality may require, the agenda will start them in the direction that you intend for them to move. •
Planning Profiles. A profile is a description of the ideal. A profile ought to be created by the administrative leadership of an organization in conjunction with every planning area. The profile can serve as the goal to be achieved and serve as a basis for assessment, prioritization, and planning recommendations (see appendix).
Selecting Your Planners The key to good plans are good planners! It is important to engage the right people in the planning process. The best planners bring to the table expertise, perspective, and the ability to do what it is they are being asked to do. Organizations should consider following specific steps in selecting individuals to support the planning initiative: •
Task Force Chairmen. The chairperson of each of the Planning Task Forces ought to emerge from the organizational administrative team. They should be completely familiar with the organization, its stated mission, and its vision for the future. The only individuals for which the board is directly responsible for recruiting is the Task Force Chairperson.
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Committee Members. The chairperson should be strategically involved with the board chairman and/or the head administrator in identifying potential committee members. Committee members ought to be selected from key constituent groups and be representative of the group of which they are a part. Each member should also be chosen in terms of what they can provide professionally, e.g. does the committee require a finance person, an attorney, a contractor, etc.
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Board Approval. Before candidates for each committee slot are asked by the Task Force Chairperson to participate in the planning process, the board of the organization should reserve the final right for approval or disapproval of the candidates. This will prevent someone being placed on a committee whose involvement might be more negative than positive.
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There is a rule in development that no volunteer should be asked to do more than five specific tasks. Abiding by this rule can prevent volunteer "burn out" and allow more people to participate in the development of the organization. One way an organization's developmental health can be measured is by the number of people who are actively involved in supporting its ongoing work. Prior to selecting volunteers, it would be beneficial for the board chairman to review with each Task Force Chairman the tasks that will be required to complete the portion of the planning to which they have been assigned. The size of the committee will be determined by the size of the task to which they have been assigned.
Preparing The Way For Planners There are a number of things you can do to prepare the way for selecting planners for your long range (strategic) planning initiative. Answering the following questions could be helpful in assessing your organizations specific needs. Take each of the areas you have prioritized for planning and list the constituent groups who could provide valuable input to your administrative leadership team.
List the professional resources you would need in conjunction with each area to make informed decisions.
Identify the administrator or board member of your organization who could best chair each specific Task Force you will require.
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Chapter 5 The Planning Profile Nothing is more helpful to the long range (strategic) planning process than the Planning Profile. A profile is a description of the ideal and is generally constructed by the administration and/or board of an organization in response to the question, “If we were the ideal (or perfect) organization as it relates to this particular area, what would we look like?” Once you have a picture of the ideal, you can assess your organization, prioritize your need, and plan a program that will take you from where you are to where you want to be.
What should be profiled? Profiling should occur in virtually every area of an organization. For planning purposes, each specific area to which you have identified the need for a Task Force should be profiled, e.g. facilities, curriculum, extra-curricular areas, clientele, and personnel. Each Task Force Chairperson should have a clear picture of what the organization is seeking to become. There is much more, however, that can be profiled. You can profile events (banquets, organizational activities, programs, and events), positions (board members, administrative personnel, etc.), ministry thrusts (public relations), and organizational specifics (classrooms, offices, etc.).
Creating A Profile Creating a profile is a simple process. The profile should be created by a group of individuals who, from their varying perspectives, can provide insights to the process in view of their understanding of your mission and their involvement in your ministry. Developing a profile statement is the result of three specific steps: •
Using Adjectives and Phrases to Describe the Ideal. In a brainstorming session, ask individuals to use specific adjectives or descriptive phrases to describe the ideal. The question to which they would respond is, "If we were the ideal (or perfect) organization in this particular area, provide me some words or phrases that people might use to describe us?" Write each of these 20
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words or phrases on a board. •
Organization of Ideas. Once you have exhausted the creative insights of your group, begin a process of combining ideas into thoughts. These categorized thoughts will become the basis of phrases and/or paragraphs in your final profile.
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Creating the Statement. Once you have the thoughts narrowed down, begin a statement with the words, "The ideal is . . ." Seek to write a brief description that incorporates all of the ideas that were originally submitted.
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Distribute for Fine Tuning. Take the results of your work and present it to the planners with the assignment to return it within a specific period of time with any suggestions they might have.
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Final Approval The final approval of the profile should be reserved for the administrative team of the organization. It is appropriate to make the approval of the profiles an item recorded in your formal minutes.
What To Do With A Profile Once you have profiles in place, they become an important tool in the creation of your organizational long range (strategic) plan. Use your profiles in the following ways: •
Submit Them to the Task Forces. Each Task Force should have a profile in front of them that clearly articulates an ideal picture of what you want to be. This can serve as an agenda for the group.
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Assessment. The profile provides an objective basis for assessing where the organization is in relation to the ideal. Each Task Force can create a basis for assessment and use that to specifically quantify organizational needs.
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Quantification. Effective planning can not occur until the organization has created a specific list of quantifiable (something which can be measured) needs. The profile is helpful in enabling planners to show strengths and deficiencies. Once you have a list of needs (deficiencies) you can begin to quantify.
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Prioritization. After the process of quantification has occurred, planners can establish a prioritized list of things that must be incorporated in the long range (strategic) plan. Where anything stands on the list will be predicated on a number of factors 21
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established by the planning guidelines, i.e. budget, agenda, etc. •
Planning. As the process moves forward, a plan for the organization begins to emerge. The plan includes issues that must be dealt with, when they are to be addressed, the approximate cost to satisfy the recognized need, and a recommended program to guarantee that the need will be met.
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Evaluation. The profile proves to be invaluable as progress is made toward the fulfillment of your plan in that progress is measured against the profile standard.
A Profile Exercise The best way to learn profiling is to practice developing one. The following exercise will help you establish a planning profile. The profile you will create will be one that will describe how your overall organization would look should it "perfectly" fulfill its stated mission. Answer the following: If your organization were to fulfill its mission, what adjectives or phrases would people use to describe you? List as many as you can think of in the space provided below.
Categorize these adjectives into primary ideas. For example words or phrases like: well known, visible, respected, credible, etc. might fall into a "positive public relational image" category. In the space below, list all the primary categories:
Begin to craft your organizational profile. Complete the sentence, "Our organization will be viewed by others as ...”
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Chapter Six The Assessment Process Once you have a series of planning profiles established, the process of assessment can begin. The profile allows for assessment to be objective and objective assessment tends to “neutralize” the agendas of individuals who enter this process with preconceived ideas as to what you need to do.
The Assessment Process While it might be easier and more efficient for the administrator of your organization to create the long range (strategic) plan, it will never be as effective. The more people involved in the process, the greater the likelihood that the plan will be achieved. Planners "buy into" the plan because they created it and will be the most powerful resources you will ever have to sell the plan to others. If one of the reasons that will determine the effectiveness of a campaign is the "perceived need" for the project for which you seek funding, it is vital that the need be established. There is no better way to accomplish that objective than through assessment. The assessment process begins with the planning profile. Imagine that you are a school and that you have created a profile for the ideal classroom. The profile might read something like this, "The ideal classroom for our school will provide a minimum of 10 square feet for each student, will be bright with as much natural light as possible, will have a minimum of two walls of white board, bulletin boards, desk modules to encourage student interaction, will have a retractable movie screen, and be wired to accommodate advances in the fields of technology. " The profile should be distributed to members of the Facility Planning Task Force and each planner should be commissioned to survey every classroom in the school. The following steps should take place: •
A Broad Overview. Every classroom should be graded by using a letter from A to D. The "A" classroom would match the profile perfectly, the "B" classroom would match the profile in many ways, the "C" classroom would be marginal, and the "D" classroom would not match the profile at all. When information is gathered, the collective input of all the planners will provide an overall assessment of your classroom need.
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Quantifying Need. Each classroom should be looked at a second time, this time with the specific needs identified. The planner should ask the question, "Why is this classroom a "B" and what would be required to make it ideal?" Planning can never occur apart from quantification.
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Prioritization. A prioritization process should be created that allows the planners to assess each classroom in relation to all of the classrooms. A secondary list of the prioritized needs of each classroom should then be produced.
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Counting The Cost. Preliminary estimates should be placed alongside each prioritized need providing the estimated cost to make the changes deemed essential.
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Planning. The plan for this aspect of the facility needs would begin to emerge based on the parameters earlier established to guide the planning process, e.g. budget, etc.
Assessment Reporting Prior to engaging in any major funding effort, organizations should maintain a plan to communicate the results of the planning process to constituents. It is important that information be given over a long period of time, through a series of news releases, and in a variety of forums. You cannot assume that one announcement concerning your activities will be heard. Consider the following public relational ideas: •
Announce the Process. Some means of communicating to your whole constituency the fact that a planning process is being undertaken by the organization is essential. Point out areas where planning will occur and the process that will be followed to come up with a plan that the organization could realistically achieve.
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Announce the Planners. As Task Forces are created and planners brought on board to staff them, appointments should be announced. Since others will undoubtedly have insight that they would like to communicate, they should be urged to contact the individual who serves on the task force who is the liaison of their particular constituent group.
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Report the Profiles. The profiles should be reported to the constituencies. This allows others to grasp how you see the mission of the organization being fulfilled and what it will require 24
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to accomplish those goals. •
Reporting Subsequent Steps. It is important that you create realistic expectations among constituents. Subsequent steps of the planning process should be announced only after needs have been prioritized and a realistic plan has been created to satisfying them. Remember, it is important that you leave a "path of success" in conjunction with everything that you do.
Practice Makes Perfect In preparation to assessing your ministry needs, complete the following exercises: Take the profile that you have created for the "perfect organization” and assess your organization. Grade your organization overall using an A, B, C, or D classification.
Why did you give your organization the letter grade?
What specifically could you do to improve your organization? List specific areas of strength and weakness.
What could you do to make things different? Attach a cost figure alongside each one
Create a prioritized list of each of these items.
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Putting Your Plan Together No long range (strategic) plan can be achieved until needs are quantified and prioritized. If you cannot measure success, you will never achieve it. A long range (strategic) plan is nothing more than a set of specific goals joined together in a comprehensive way designed to take your organization from where it is to where you long, before God, for it to be!
What Is A Quantified Need? The next step in the planning process is quantifying your identified needs. Note these characteristics of a quantified need: •
A Quantified Need is Objective. When a need is quantified it doesn't speak to a generality (The classroom is inadequate) but to a specific need (A 4X8 white board is needed on the east wall of the classroom). Planners are initially drawn to generalities but effective plans must move from the general to the specific.
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A Quantified Need is Measurable. You can measure whether or not you have been successful in achieving a quantifiable need. If you add a white board to the classroom, you have fulfilled the need. Check it off and report your success!
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A Quantified Need is a Part of Something Greater. White boards, desks, and bulletin boards come together in creating the "perfect" learning environment. It will be the combination of quantified needs that will make up the whole of your long range (strategic) plan.
Prioritizing Your Quantified Needs The challenging next step in the planning process is prioritizing your needs. The first step in the this process requires each individual Task Force to prioritize identified needs (following the planning parameters you have created) and the second step involves the Long Range Planning Committee putting together the comprehensive plan. Consider using the following guidelines in prioritizing needs: •
Available Funds. The driving force that will determine whether or not you can meet a need is the amount of money it will require to 26
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make essential changes. One of the primary reasons for creating a preliminary budget for planning is to give planners guidelines to make informed recommendations. •
Creative Funding. Planners may conceive of ways to make changes in a more cost effective way. A plan might be recommended where items could be contributed (inkind contributions) or funding sought from individuals who might like to purchase a required commodity, e.g. white boards. A quantifiable goal may rise or fall on the prioritization list based on how easy or difficult planners perceive acquisition to be.
•
Major Alterations. Often renovation is not an option, e.g. it is difficult or impossible to turn a closet into a classroom! When facilities need to be built to accommodate the needs of an organization, the need for a new facility needs to be weighed against expansion or renovation.
The key to prioritization is choices. Planners must make choices based on their understanding of the needs of the organization. To the degree, however, that choices are shared they will be more easily communicated and "sold" to the constituencies that must fund them.
Putting The Plan Together The calendar for planning will involve precise steps. Those steps include: •
Task Force Reports. Written reports should be required of each Task Force. These should be submitted in writing accompanied with an oral report to the Long Range Planning Committee.
•
Committee Recommendations. The Long Range Planning Committee should take the reports of the planning Task Forces and begin preparation of a comprehensive strategic plan for the organization. This should be written in a first draft format within two weeks of the Task Force report presentations. The first draft should include recommendations, a plan as to how the recommendations will be implemented, and a calendar defining when planning activities will occur.
•
Reviewing the First Draft. Once the first draft of the long range (strategic plan) is put together, Task Force Committees should be invited to join the Long Range Planning Committee for a preliminary review. Opportunities should be given for the planning groups to make suggestions to add or delete portions of 27
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the report. •
Final Report. Once the preliminary report is reviewed, the final report should be prepared and presented to the organization's constituency.
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Chapter Eight
Implementing Your Plan As important as having a plan is a program in place to see that the plan that you have spent so much time in diligently preparing is effectively implemented.
Getting It Done There are several steps you should consider as you seek to get your plan from paper to reality. Consider the following: •
Garner the Resources. It will be important that the resources you require to complete your plan have been secured. These resources will include money, materials, and a wide range of professionals.
•
Setting A Time Line. Create a schedule that begins now and continues until the time the plan is achieved. Time deadlines are strong motivators to individuals who will be needed to assist you in implementing your implementation program
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Appoint Custodians. Identify individuals who will serve as “custodians” over various components of your plan. Ask them to work with you in putting together the implementation plan, to assist you in identifying resources that you will require (personnel, professional assistance, etc.), and monitor your progress toward completion.
Holding Yourself Accountable People are motivated by big plans. Everyone wants to be on board the train that is going somewhere and if you can provide a vision that is comprehensive in its nature and broad in its appeal you are well on your way for organizational success. Leaders in a non-profit organization are stewards of God's resources. Just as you hold yourself accountable to others in the way you manage day to day activities, create a structure that holds you accountable to achieve the plans you have prepared. You can do this through: •
Keeping People Informed. Announcing your timeline and listing the names of people who are working with you to complete your 29
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plan is one way of making your organization accountable to its constituents. • Measuring Progress. The ever-present thermometer in most organizations can be overdone but the principle is a good one. It keeps in front of people the need and shows them the progress you are making to achieve it. Keep in mind, however, to report success and not failure. Nothing can be more disconcerting than to see a thermometer with only the bottom bulb filled it. Introduce visual aids when success is "around the comer." •
Regular Updates. Many organizations will have a regular column in their newsletter reporting progress in implementing the long range (strategic) plan. It is best if these updates can be visual. Include charts, diagrams, and pictures. Ask others to think of different ways in which you can announce progress.
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Chapter Nine Ch
Selling Your Plan If your organization is successful in creating a written long range (strategic) plan you will move into an elite group of those who have considered their mission, assessed strengths and weaknesses, and put in place a plan to take you from where you are to where you want to be. You will have significantly improved your prospects for enduring success since now you have a destination to strive for and a road map to take you to where you want to go. The next steps in the planning process are communicating your plan to your constituents and securing their support for your initiatives.
Communicating Your Plan Most of the frustration that constituents have with the organizations they support can be directed to communication. They don't feel informed. And one of the biggest mistakes we make in seeking to communicate with others is relying on one source to accomplish our objectives. Organizations should consider using a variety of methods to inform valued constituents of their plans for the future: •
Distribute the Complete Plan. Make available copies of the final written plan to your constituents. Rather than preparing copies of the plan for everyone, a letter announcing the completion of the planning process and focusing on highlights of the plan should be prepared. If particular constituents would like a complete copy of your activity, make it available to them upon request.
•
Promote Components of Your Plan in Your Newsletter. Use your organization's newsletter to share components of the plan. And don't just write about it! Whenever you can show renderings of projected new facilities, graphs to illustrate needs, and pictures to make connections between your plans and those who will benefit from their achievement your case will be strengthened.
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Focus Sessions. Many organizations will schedule meetings with key constituents for the purpose of announcing their plans for the future and providing opportunity for people to ask specific questions.
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Briefings. The news briefing can be an effective tool in 31
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communicating to special groups of people (businessmen, news media, pastors, etc.) who you want to keep informed about your ministry and its future. •
News Releases. You should prepare news releases for local and national (if appropriate) media. Don't overlook local publications where key constituents get information, e.g. the Chamber of Commerce Newsletter, etc.
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Public Meetings. Local service clubs, if your ministry impacts the community of which you are a part, can be ideal forums to share your plans. Hosting special meetings of groups who meet regularly at your ministry can also be helpful, consider specifically hosting a service club meeting or a Chamber of Commerce "After Hours" event.
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Fax Bulletin. You might consider preparing a special Fax Bulletin to special individuals with whom is difficult to schedule personal meetings, e.g. company presidents, foundation directors, denominational leaders, etc.
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Announce Success. Regardless of how small the achievement, make it a habit to announce progress of your plan. Leaving the "trail of success" will be the primary reason why people will move toward the right side of the attitude continuum.
The key to communicating is determining to do it and then setting in place a plan that will "get the word out" about where you are going, why you are going there, and when you intend to get there!
Ways To Involve Others There are so many ways in which people can join with you in support of your organization. The more people that are a part of your ministry, the greater the likelihood that you will be successful in achieving your goals. Consider involving people in these ways: •
Prayer Partners. Don't overlook the most important way in which people can share with you and your work, through prayer. Establish programs that your supporters can be a part of with specific, quantifiable things they can do.
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Task Forces and Committees. There are a variety of ways in which people can come together to help you. Standing committees are often avoided by busy people because of the time demands they require but busy (interested) people will generally be 32
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attracted to groups that are brought together for shorter periods of time, e.g. ad hoc committees, task forces, etc. •
Consultants. Many of the resources you will require to fulfill your plan may be found among those in your constituency. Seek input from these people within your organization's constituency. You may ask them to review your projections, provide their insight into areas where they are proficient, or serve in an official consulting role as your plan unfolds.
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Volunteers. If you are planning a funding campaign to raise money to supply resources to implement your plan, ask constituents to serve in one of the many volunteer roles that will become available. Always remember to limit the responsibilities of volunteers to no more than five specific tasks and the time commitment for their efforts.
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Donors. Allow people to give to your organization. They could give cash, their time, their expertise, appreciated assets, or "in kind" contributions. Provide them with alternatives from which they can select. Remember that almost everyone who is associated with your ministry wants to do something. Provide them a variety of opportunities.
Let Others Sell Your Plan The best way to get a large group of people involved with your organization is to have a large group of people that are excited about what you are doing and sharing their enthusiasm with others. To the degree that you are successful in communicating and involving others in your work will be the measure by which you can determine your success. Respond to the following exercises as you prepare to engage others: Identify specific groups of people that you feel are critical to your organization's future?
Alongside the name of each group, list ways in which these groups receive information about your organization.
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What ways could you communicate to these important groups?
What ways could you involve these groups in the ministry of your organization?
Conclusion As you contemplate the importance of long range planning for your organization, there are many things you can do today to posture yourself for the future. Take time to consider these ways to help yourself.
Focus Your Attentions Focus is what most organizations lack. Often ministries flounder, seeking to establish themselves among the myriad of other worthwhile ministries seeking the support of others. If your organization is to enjoy sustained success, it will be essential to focus your attentions in areas that will reap enduring benefits. Consider these five things that you can do to help your organization: •
Focus on Sources. When creating a budget for planning earlier in this workbook, projections were made as to the amount of money that could be raised should your organization move into a major capital funding program. Assess each one of the sources that were identified and determine those things you can do to expand and cultivate those vital resources.
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Focus on People. Earlier you were asked to identify the groups of people that you felt were critical to the future of your organization. Consider ways that you can proactively bring those people into a closer relationship with your ministry.
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Focus on Mission. The long range (strategic) plan reflects the ways through which your organization will accomplish its stated mission. Spend time clarifying that mission and communicating to your staff and constituents.
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Profiled Goals. The first profile any organization should create is the profile that shows what the mission of your organization accomplished would look like. Constantly review that profile and its components and put in place projects, programs, activities, and events intended to facilitate its successful achievement. 34
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•
Leading Development Indicators. There are five Leading Development Indicators (LDI's) that, together, enable another to assess your overall developmental health: database size, the number of donors, your average annual (real) support, your number of major donors, and your number of mega donors. Seek to improve yourself in those critical areas of development activity.
Identify Resources In addition to the infrastructural development work that should be ongoing, you should maintain an ongoing process of identifying and cultivating the resources you will require to fulfill your vision for the future. Consider identifying the following: •
Financial Resources. Record the names of prospective major donors, mega donors, in-kind contributors, and foundations. Remember that a prospect is not a prospect until you have names and addresses recorded. Seek to add a specific number of people to your database each week.
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Identify Key People. You have a broad idea of what you will require among volunteers to take you from where you are to where you want to be. Begin making lists of prospective volunteers, professionals, committee personnel, etc.
In order to move forward in the achievement of your dreams you must plan. Plan now for tomorrow.
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Appendix
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An Introduction to Institutional Profiling By: Gerald H. Twombly, President Development Marketing Associates, Inc. Introduction: A profile is a picture of the ideal. The profile provides the basis of quantifiable assessment, can be invaluable in identifying areas of need, and should become the basis of pro-active planning. I. Sample Long Range Planning Profiles. There are five areas where profiling should occur in conjunction with the long range planning process. The following are intended to be samples of what a profile in each of these areas might look like: A. Facilities. The facilities of XYZ Christian Academy are provisions from the Lord for us to fulfill our stated mission. Our commitment is that in appearance they reflect the character of the Lord whom we serve. Recognizing our responsibilities as stewards of God's provisions, our intention should always be to care for that which He has given to us. New facilities will be added to enable us to fulfill our vision for Christian education in our region and to more effectively achieve the mission to which we are corporately committed. We will add facilities only after there is demonstrated evidence that we can care for them in a manner appropriate to our calling. B. Curriculum. The curriculum of XYZ Christian School will be a means through which we will fulfill our stated mission. It shall be consistent with our school's Statement of Faith. Faculty members at our school shall seek minimally to achieve national standards in each course and to annually evaluate curriculum in terms of its effectiveness in enabling them to achieve academic.; goals while facilitating the fulfillment of the school's mission. C. Co-Curricular Activities. The Board and Administration of XYZ Christian School believe that the effective fulfillment of the school's mission cannot be achieved apart from the active involvement of a student in programs outside the classroom. Consequently the commitment of the board is to provide a variety of programs each year that meet the interests and needs of students and to aggressively work toward involving every enrolled student in one or more programs each year. Furthermore, the school sponsor, coach, or director of each co-curricular area shall be asked to state the specific aspects of the school's mission that will be addressed through a students involvement and the quantifiable goals that will be pursued. D. Staff and Personnel Believing that a workman is worthy of appropriate remuneration for their labor, the Board and Administration of XYZ Christian School is committed to providing compensation that is within 90% of that paid in comparable position in the public sector. E. Student Body and Enrollment. The Board and Administration of XYZ Christian School is committed to maintaining an enrollment capacity not to exceed 700 students using existing facilities. The expansion of facilities shall not occur until that time that our facility profile is achieved and the total resources of expansion have either been given or pledged. Admission in the elementary program at the school shall be made available to all families who have an interest in Christian school education and who have (at least one parent) born testimony of their faith in the Lord Jesus Christ. Secondary students must express desire to attend the school and must bear testimony and show evidence of a personal commitment to the Lord Jesus Christ. 37 Copyright 1993. Not to be reproduced.
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II. Other Areas. In addition to areas relating to the long range planning process, profiles should be developed in other critical areas relating to the school's future. Among these are: A. Components of the Mission Statement. Every Christian school mission statement includes certain components. Each component should be extracted from the original statement and profiled to assist the school board and administration in assessing progress in conjunction with each critical area of emphasis. B. Positions. Every position within the school, from board member to staff worker should be profiled. This should become the basis of creating job descriptions, personal expectations, and employee performance reviews. C. Activities and Events. Every planned activity should be profiled. The profile can enhance organization, planning, and evaluation of school related activities. D. Performance. Classroom teachers should be challenged to profile the product they seek to produce. This should become the basis of planning, instructional techniques, and annual evaluation of both student and instructor. E. Student Achievement. Students should be evaluated against an established profile and pro-active institutional retention programs should be created that work to guarantee that the profile is effectively achieved in the life of every enrolled student. Conclusion. There is no better way to measure performance than by placing achievements beside predetermined goals and objectives. The profile can illuminate areas of deficiency and can become the basis by which truly effective planning can occur.
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Leading Development Indicators Gerald H. Twombly, President Development Marketing Associates, Inc. Development health is essential to an organization’s ability to be able to achieve its dream for the future. Apart from a support infrastructure many ministries flounder. If someone wanted to assess the overall state of the American economy they would likely review a series of regularly published indexes that are intended to provide insight into economic health. These leading economic indicators include things like our country’s gross national product, car sales, employment statistics, retail sales, inventories industrial production, housing starts, etc. These reports reviewed overtime and compared with one another provide an economic pulse of the country.
Leading Developmental Indicators Just as there are indicators that enable others to assess economic health, there are developmental indicators that can be helpful in assessing developmental health. These should be monitored regularly alongside established benchmarks and your plans for the future. The six leading developmental indicators are: •
Database Size. The size and sophistication of an organization’s database is essential to its developmental future
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Real Support. The amount of money annually raised from people who share your vision for ministry is another important index that determines enduring developmental success.
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Number of Donors. The actual number of donors who support your ministry each year is another developmental indicator.
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Number of Major Donors. In addition to core supporters every organization should track the actual number of major donors who provide support each year. A major donor is someone gives annual gifts of between $1,000-$10,000.
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Number of Mega Donors. A mega donor provide support of $10,000.00 or more. The number of people giving at this level needs to be regularly tracked.
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Developmental Potential. The last developmental indicator is the developmental potential of an organization as a percentage of its established long term need.
Monthly Reports Organizations should consider creating monthly reports for their boards showing the development of these critical developmental areas. As progress takes place here, developmental health is exponentially enhanced.
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Organizational Planning Primer
Benchmark Assessment Introduction Another method of assessing organizational development strength is by evaluating developmental performance against established benchmarks. Benchmarks help an organization to set goals for developmental activity.
I. Database Benchmarks The organizational database is at the heart of successful development. A prospect for support is not a prospect until their name is permanently recorded in a computerized database record. A. Database Numbers. Organizations should be concerned about the sizes of their database. 1. Schools should seek, initially, to have a database that is five times the size of their student body. 2. Non-profit organizations should seek a database of 100,000 for every $1 million they seek to raise in annual fund giving, or approximately $10,000 for every 1,000 names. B. Database composition. The composition of a database ought to be distributed among nuclear, affinity and fringe prospects. Approximately 30% should be nuclear names, and 20% fringe names.
II. Fundraising Benchmarks There are guidelines that should be considered in the raising of funds. Schools should seek to raise in annual real support the number of full time students enrolled times $100. For example, a school with an enrollment of 500 should raise a minimum of $50,000 annually in rational support. Other non-profit organizations should set “real” support goals by taking 10% of their existing database and multiplying times $100.
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Organizational Planning Primer III. Donor related benchmarks There are several benchmarks to consider when seeking to establish goals for donors and prospective donors. A. Schools should seek to have as many “real” donors as one half their full time student enrollment. For example, a school of 500 should have 250 annual donors. B. Non-profit organizations would determine the number of donors they would require by taking 10% of their existing database. C. Schools should seek to identify major donors (those capable of giving annual gifts of between $1,000 and $10,000). Their number of prospects should equal 10% of their full time enrollment. For example, A school of 500 should identify approximately 50 major donor prospects. D. The number of major donors non-profit organizations should seek to identify would be equal to approximately 2% of their database. A database of 5,000 should have approximately 100 major donor prospects in it. E. Both schools and other non-profit organizations should seek to identity mega donors (those capable of giving gifts of $10,000 or more). That number should equal 10% of their major donor goal. For example, an organization with an objective of identifying 100 major donors should have approximately 10 mega donors.
IV. The Giving Pyramid There are basic rules that drive the developmental fundraising process. One of these is that 80% of all fundraising income comes from 20% of your donors. A. If an organization had a database of 2,000 it should raise approximately $20,000 each year in “real” support. That support should ideally come from 200 giving units. B. It can be expected that approximately $16,000 of the total will have come from 40 individuals while the remaining $4,000 will come from 160. This phenomena justifies the existence of “giving clubs” with wide ranges of giving opportunities. C. One of the greatest challenges facing the organizational development officer/consultant is identifying and engaging the 20%. 41
V. Attrition Benchmarks Before engaging new clients and/or donors, organizations must have a clear understanding of what is taking place among current clients and/or donors. The average attrition rate of clients and/or donors to an organization is 12%. Any loss, at any level, exceeding 12% should be a warning signal to the charitable non-profit.
VI. Identifying Organizational Needs The long term organizational requirement for annual real support will become the basis of determining areas of need. List the needs of your organization based on benchmark assessment: A. B. C. D. E. F. G.
VII. Consultant Recommendations Among the recommendations the consultant could make on the basis of disappointing assessment results in benchmark assessment could be: Focus the predominant amount of organizational attention upon securing real support. A minimum of 70% of annual fund support should be rational (or real). If more money is required on an annual basis than what benchmarks might justify, focus attention on increasing the organizational database. Organizations requiring an increase in the average size gift should focus on developing annual giving programs (Core Donor Programs, Major Donor Programs, etc.). When attrition (clients) exceeds national percentages, a pro-active strategy to retain donors should be initiated immediately. Focus first on closing the back door before opening the front!
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Organizational Planning Primer Begin retention programs where the need is greatest. If establishing an overall retention initiative is perceived as too difficult to administer, begin in focused areas where the need or opportunity is considered greatest.
Conclusion Benchmarks are intended to be a guide. Once they are attained, nonprofit organizations should set a goal of annual increase of not less than 5%.
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