Strategic Thinking in Non-Profit Organizations (Mark Ewer)

Strategic Thinking in Non-Profit Corporations

Mark A. Ewer MSW RSW

Strategic Thinking in Non-Profit Corporations

1. Corporate “Genesis” – Letters Patent, Objects, Bylaws

2. Guiding Statements – Vision, Values, Mission

3. Strategic Thinking vs. Strategic Planning

4. Annual Planning 5. Planning Considerations – CCAS of

Hamilton 6. Putting Planning in its Place 7. Questions

1. Corporate Genesis (beginnings!)

Non-Profits that incorporate provincially, are regulated by The Corporations Act (Ontario). They are created by filing, and having approved, the proposed Corporation’s “Letters Patent”. These can subsequently be amended by filing “Supplementary Letters Patent”.

The Objects of a non-profit called the Hamilton Family Network

Bylaws

Bylaws are the “rules of governance” for a Corporation; they define the membership, the operating structure of the board of directors, the Officers, the role of the “senior staff person” and requirements concerning the financial affairs and records of the organization.

Bylaws can be amended from time to time by the board but must be approved by the “membership”.

2. Guiding Statements – Vision, Values, MissionGuiding Statement CCAS of Hamilton Unified Engineering

Vision – thinking ahead, to a likely future, better than the present, that can easily be seen as achievement of the “Objects”

In keeping with our founding purpose as a Catholic organization dedicated to children: - We seek to create a caring world for children, where they are safe and loved in the present with opportunity to develop to their fullest in the future.

- We seek to serve our clients so their suffering is lessened and they can see, with hope for themselves and their children, contributing to a better world.

- We seek to bring together a community of staff and board members, foster and adoptive parents, volunteers and others, who with skill, spirit and love make a positive difference in the lives of the children they touch.

- We seek focus, integrity and flexibility in carrying out this shared mission so that we might marshal the human and other resources required to meaningfully serve every person who comes to us for safety and support.

Unified Engineering, through development and innovation, will be recognized for achievement, integrity and engineering excellence

Guiding Statement CCAS of Hamilton Unified Engineering

Values – key principles that govern planning and action and inspire identification with the enterprise

- Compassion, empathy and justice for the children and families we serve, in accordance with the gospel message that we love one another;

- The sacredness of human life, and the dignity and worth of each individual;

- Respect for the beliefs and traditions of others;

- Recognition of the importance of physical, emotional, cultural, and social factors;

- Faith and hope which enable us to speak as a prophetic voice for needy children;responsiveness to the needs of the poor and vulnerable;

- The importance of relationships, family and community, for those we serve, and ourselves;

- Recognition of our work as a ministry, which commits us to strive for the highest standards.

- Uphold the highest standard of quality and excellence, while providing value that exceeds the expectations of our customers.

- Promote and nurture a culture of teamwork within the company,

- Provide and maintain a safe, satisfying and caring environment that encourages personal development and offers challenging opportunities.

- Foster employee accountability and recognition for achievement.

- Always operate in an efficient and competitive manner while respectful of our environment and community

- Encourage creativity, innovation and continuous improvement through engineering, research, and development.

Guiding Statement CCAS of Hamilton Unified Engineering

Mission – a “path” that will inspire commitment and lead to achievement of the Vision

Guided by Catholic values and teachings; a belief in strengthening families; and the mandate of the laws of Ontario, the mission of the Catholic Children's Aid Society of Hamilton is to protect and advocate for the well-being of children within the "New" City of Hamilton.

To be first in the mind of our customers in solving their technical and engineering challenges


Strategic Thinking (skillful planning and managing)

a) Management Direction do we operate in a way that mitigates risks to the

organization? does everyone know what they are doing (and why)?

b) Relevance do our activities continue to make sense in terms of

the conditions, needs or problems to which they are intended to respond?


Strategic Thinking

c) Appropriateness what choices have been made between alternative means

used to respond to the conditions, needs or problems of those served?

are the investments in people, programs, technology, facilities in the right balance, under the circumstances

d) Achievement of Intended Results what are our results, against performance standards, for the

whole organization? (an approximate estimate of an accurate indicator is better than an accurate estimation of an irrelevant one!)


Strategic Thinking

e) Acceptance do we have an acceptable level of public or

customer/client respect, loyalty, recognition and trust?

f) Secondary Impacts what unintended impacts (positive and negative) are

occurring as a result of our work (health and safety, environment, community) and should this cause reconsideration in any areas of operation?


Strategic Thinking

g) Cost and Productivity are we using our resources to their best advantage? should there be current or future “investments” that

will have a longer term benefit?

h) Responsiveness How well are we anticipating and responding to

change? Have we planned for the future in terms of leadership,

staffing. product/service development and crisis management?


Strategic Thinking

i) Financial Results How good are the financial results in terms of

matching costs with revenues and financial assets with anticipated obligations?

j) Working Environment Is there a happy, healthy and constructive working

environment where staff are motivated to work together, adapt to change, and to develop their skills?


Strategic Thinking

k) Protection of Assets do protect our most valuable assets and ensure that they

will be available in the future to contribute to future results this includes intellectual property as well as human and

physical resources

l) Monitoring and Reporting does management have the information it needs to support

its decision-making and accountability, and is it used appropriately?

are we meeting applicable standards and regulations adequately?


Strategic Planninga) a popular, yet demonized form of long range

planning that provides a framework for organizational direction setting, over a longer time frame, based on a study of internal and external factors

b) various “stakeholders” participate in discussions of “strengths and weaknesses” (internal) and “opportunities and challenges” (external) which provide the “data” on which the plan is founded


Strategic Planning

c) analysis and consensus building is used to develop a plan that capitalizes on strengths, minimizes the impact of weaknesses and provides direction towards areas of opportunity.

d) the plan is approved by the governing body for implementation, via a multiple year action plan/schedule


Strategic Planning

e) periodic reports (at least annual) are used to measure progress against the plan and provide leadership where there are competing priorities

f) after a significant period of time (3 to 5 years), the process is repeated


Strategic Planning

Commentary: this form of planning is common in non-profits

but is not used exclusively. The extent of this type of “multi-year” planning in a directed fashion is limited due to the lack of multi-year funding and lack of emphasis at the “governance” (Board) level.

It is also very time consuming and potentially very costly, depending on the scope of the project and use of consultants.

4. Annual Planning

Major and Minor Capital Planning

Major Capital spending for the year could be in keeping with a multi-year Capital Plan

the definitions of “Major” and “Minor” will vary with the funding source(s)

4. Annual Planning

Operational Planning a comprehensive annual operating

budget is always required, usually in a required format, as are periodic reports (monthly or quarterly)

it is common to have function specific plans in areas such as: technology, minor capital replacement, public relations, fundraising, staff recruitment, foster parent and volunteer recruitment, etc.

4. Annual Planning

Operational Planning In child welfare, current reporting is done

using a sophisticated gov’t supplied Excel Spreadsheet used quarterly to report expenditures, and project revenue and expenditures for the balance of the fiscal year

It contains many confusing pages with similar sounding titles, which are mainly undecipherable due to small font size!

5. Planning Considerations at CCAS of Hamilton

SWOT Chart

Strengths

- very “client” focused with a good reputation for service quality- experienced supervisory group- good staff training program- up to date technology- good physical working environment- high quality volunteer and foster care programs to supplement services

Opportunities

- volume related funding system in a community of rising service volume- government initiative funding options- Foundation/grants available- serving and protecting children has good public appeal

5. Planning Considerations at CCAS of Hamilton

Weaknesses

- staff retention problem, always in hiring mode

- planning is more “reactive” to government changes rather than “proactive”

- too dependent on one funding source- insufficient volunteer and foster care

resources compared to rising need- little sympathy for restrictions placed on

available funding (staff and foster parents)

- insufficient measuring of client satisfaction

Threats/Challenges

- current unit costs are too high (+5%)- too many “uncontrollable” costs (court

related costs, group care costs, etc.)- shortage of experienced social work staff in

Ontario- local decision making results in a

“scattered” field with insufficient standardization in some areas, such as technology

- no opportunity for “multi-year” funding - increased imposed accountability measures

burden staff and reduce time available to provide services

- available funding may not match organizational priorities

6. Putting Planning in its Place! (Stephen R. Covey)

a) Understanding “Quadrant II … the Quadrant of Quality”

(increasing the “ability to do”, reduces time spent on crises and reactive activities of Quadrant 1)




b) Keeping the Production/Production Capacity (P/PC) Balance

The trick is ensuring that each day, you contribute to “capacity building”. If you do not plan for the future, you will never know when you get there … and you will not be ready when it arrives!

7. Questions

Planning isn’t as much knowing the correct answers as it is knowing the correct questions!

Business

Strategic Thinking in Non-Profit Organizations (Mark Ewer)