How To Maintain A More Effective And Efficient Mission Strategy Part 2

How To Maintain A More Effective And Efficient Mission Strategy

Part 2

Smart Business Thinking by Jim Whelan

In my previous post I gave an overview of a way to maintain your mission strategically focused. The following is an edited version of a report to a Board I made in 2009. This is intended to provide a concrete example of strategic thinking.

If you have any questions or wish to discuss this further contact me at:

jimproactivecorp@gmail.com or 800 224-9920

The Sky Isn’t Falling . . . but. . .  The Ground Has Shifted

TO:                  FOOD PANTRY Board

FROM:           Jim Whelan, Chair

DATE:            March 6, 2009

“Prediction is hard especially about the future.” Yogi Berra.

Shortly the budget process for the next fiscal year will start. This year will present more that the usual challenges planning for the next 12 months.

The turmoil in the economy with the effects it is creating in everyday life establishes unknown conditions, in particular, those that affect FOOD PANTRY. While I don’t believe the sky is falling, I do believe there has been enough shift in the core conditions that, as directors, we must consider FOOD PANTRY’s options.

The Sky Isn’t Falling

Anyone in either the past or present administration who has looked behind the corporate veil of the financial industry has determined that we are in a crisis. 

The crumbling financial stability is global with the attending loss of confidence and reluctance of buyers to commit to spending or investing funds as long as the cloud of an uncertain future remains. 


Bad yes, black hole? I don’t thinks so. It will be a painful journey but, in my judgment, solvable. The sky isn’t falling.

The Ground Has Shifted 

Stagnant construction, bloated inventories, layoffs, reduced hours, credit scarcity continued high prices for commodities, and tax collection reduction all contribute to a shift in the way of life that will last for a prolong period. 

These changes affect FOOD PANTRY in every facet of our operation:

·      Continued growth in the number of people who turn to us for assistance

o   At FOOD PANTRY the client families seeking help each week has grown at an accelerating rate. In the 12 months from 2007 to 2008 it increased by 200 families; from 2008 to present it increase by 400 families. Of that 400, apprpx. 200 families were added in the last three months.

o   Currently 2,00 families have been referred although only 1,200 have registered with FOOD PANTRY. This means we have an existing exposure of 800 families with no additional families applying to the county. There is no reason to expect this trend to abate in the near future.

·      Potential shortfall of both number of donors and average donation

o   Donations in each sector – volunteer time, food, and money – have maintained at an increased level that has allowed us to meet the increased demand with no change in the amount or quality of groceries provided. With employment slacking, wage reductions for those working, fear of the future all indicate an alert in this area is warranted. There are ample reports of reductions in donations across the country.

·      Possibility that contributions from government agencies will not hold
o   The commonwealth’s current budget shortfall is well known with its consequences on future contributions to non-profits. Will the county be able maintain FOOD PANTRY with its contribution in the future? Time will tell.

Given the uncertainties of the future facing us as FOOD PANTRY directors, it is my judgment that:

1. Now is the time to examine the effect the confluence of these pressures may have on FOOD PANTRY. 
2. Now is the time to consider contingency plans that will address the need for an adjustment in our operation.

How To Maintain A More Effective And Efficient Mission Strategy

How To Maintain A More Effective And Efficient Mission Strategy

Smart Business Thinking by Jim Whelan

A question posed to us at Smart Business Thinking, you urge us to keep revisiting our strategy so that it speaks to the pressures and needs of current day and near-term circumstances. What is the process we should use?

The cornerstone of analyzing your plan is to be aware of underlying trends in those areas that have an. influence on your business. What are the keys you must employ as you work toward your mission?

Let’s look and see how this would apply.

·      Do you operate in a local, national, or international arena?

·      Is the base of your key activity holding steady, shrinking, or expanding?

·      What are the underlying reasons for the current trend?

·      Is the trend likely to continue or change in the near future

As you formulate your view of what may change in the future, you should think about possible courses of action that are (or may be) available. What effect in one of the key actions have on others?

To provide you with a concrete example of a method of assessing the implication of current and possible near-term changes, the next post How To Maintain A More Effective And Efficient Mission Strategy – Part 2 will be an actual report I made to a nonprofit board. It will give you a sample of pressures to be reviewed and possible effects on the organization.

Bottom Line?

You are not in the business to foretell the future. Your responsibility is toe maintain an awareness of your environment and think about the possible moves you could make if there is a shift.

Jim Whelan, experienced executive, coaches business owners on Strategic Business Choices, Written Goals, Value and Mission Statements that actually Improve Results. With Jim’s coaching, New, Small, and Troubled Businesses develop Operational Plans, Future Contingencies Focused on Outcomes and an Exit Strategy.

Fair Warning - A Mission Statement Is Not A Strategy

Fair Warning - A Mission Statement Is Not A Strategy

Smart Business Thinking by Jim Whelan

A nonprofit CEO contacted us at Smart Business Thinking to ask if a mission statement didn’t suffice for the organization’s strategy. An interesting question and we can se why it would seem to make sense. To consider the question, let's look at the essential elements of a mission statement and a strategy.

What is a Mission Statement?

A mission statement is an affirmation of the organization’s core reason for being. Such as:

• We provide supplemental groceries to those who cannot afford all the food they need.

• We provide free, high-quality medical care to low-income, uninsured adults.

• We provide quality homes for low- and moderate-income families.

What is a strategy?

A strategy is a thought-out plan to achieve the mission. It sets the strategic and broad policy directions.

Here’s an example where this strategy works toward the mission – “We provide quality homes for low- and moderate-income families.”

Our strategy is to produce, preserve, manage, advocate for and finance affordable rental and owner-occupied housing. We provide housing services to low- and moderate-income families and individuals. As an extension of our rental housing program, we offer educational services to strengthen our residents’ economic and social stability.

That strategy clearly advances the organization’s mission.

There can be a mission and not have a strategy. There cannot be a strategy without a mission. Without a goal what can you plan for?

Bottom Line?

To answer the question – No, the Mission Statement cannot be a surrogate for a Strategy Statement. The Mission Statement is an affirmation of why the organization exists. Strategy is a high level plan of actions to effectively address the mission.

Jim Whelan, experienced executive, coaches business owners on Strategic Business Choices, Written Goals, Value and Mission Statements that actually Improve Results.

With Jim’s coaching, New, Small, and Troubled Businesses develop Operational Plans, Future Contingencies Focused on Outcomes and an Exit Strategy.

A Fatal Flaw In Strategic Planning

A Fatal Flaw In Strategic Planning

Smart Business Thinking by Jim Whelan

"In preparing for battle, I have always found that plans are useless, but planning is indispensable." 
Dwight D. Eisenhower (1890-1969)

In the Q&A session following a presentation on Strategy, I was asked how to determine if a Strategic Plan is effective. Excellent question that we at Smart Business Thinking are not asked nearly often enough.

In the presentation I urged the audience to focus on strategy before developing a plan. Here’s not what I have in mind. You may have witnessed this scenario –

The CEO reads in a business magazine that every business should have a vision statement, a mission statement, and a strategic plan. So what happens - everyone swings into action.

There’s a Vision Committee, a Mission Committee, and a Strategic Plan Committee. After due consideration of two one-hour crisis meetings, the committees report their findings. And VOILA - the company has vision and mission statements and a strategic plan.

Those statements and plan are put in a three ring binder and placed on a shelf in an unused office. No one knows the vision except the CEO and the vision committee. The mission is a closely guarded secret. The next annual report proclaims how forward thinking the company is because it has a strategic plan.

In that process there is a total lack of strategic thinking that looks at the company’s place in the market, its financial capacity, or how it plans to expand (assuming it wants to). The strategy in this organization is to placate the CEO and the future will take care of itself.

Any guess what company will be surprised when the next change in the business environment occurs? How effective is the plan?

While this may be an exaggeration (or it may be close to the truth) the fact remains that many organizations do not properly consider the fundamentals of its strategy or relook at their strategy often enough to keep it effective.

Bottom Line? To be effective, a strategy should be the overriding impetus guiding an organization. It should be derived from a carefully thought-out analysis reflecting the company’s philosophy and personality.

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve 

How to Use Visualization to Achieve Your Goals

Smart Business Thinking by Jim Whelan

Recently a client asked us at Smart Business Thinking if Visualization can help her succeed? That’s a very good question and one we enjoy responding to.

Visualization is a powerful method of achieving personal success.

Let’s look at the difference between Vision and Visualization.

VISION is applicable to both organizations and individuals. It is the conceptualizing of a future event or condition which the author wishes to accomplish.

"Land a man on the moon and safely return him to earth by the end of this decade." President John F. Kennedy.

This Vision is a simple statement of what JFK wanted to reach before the decade was out.

VISUALIZATION is applicable to individual(s). You, the Visualizer, see in your mind the thing you want to create. The power of visualization is that you not just see it; you feel it, as if it were already real.

Focus your mind on having reached the goal, and thereby making decisions and employing tactics to match that outcome.

As the astronauts went through their training for the moon mission it’s probable that in their minds they saw and felt what it is like to already have it.

They picture in their minds:

Successful launch

Orbiting the moon

Identifying the landing site

Landing, walking and planting the American flag on the moon

Return to the spaceship

Returning to earth

Another example of Visualization is the Olympic athlete who visualizes during the grueling hours of training, standing on the winner’s platform receiving the gold medal. The individual incorporates into her mind the picture of having reached the goal.

Bottom Line?

Successful people from many walks of life use visualization to help them achieve beyond their comfort level.

Jim Whelan, experienced executive, coaches business owners on Strategic Business Choices, Written Goals, Value and Mission Statements that actually Improve Results.

With Jim’s coaching, New, Small, and Troubled Businesses develop Operational Plans, Future Contingencies Focused on Outcomes and an Exit Strategy,

Paul Revere's Message Was Crystal Clear - Is Yours?- Four Questions To Consider

Paul Revere's Message Was Crystal Clear - Is Yours?-  Four  Questions To Consider

Smart Business Thinking by Jim Whelan

“Writing, the art of communicating thoughts to the mind through the eye, is the great invention of the world.” President Abraham Lincoln 

What is the purpose of your communications?

BUSINESS CARD

While visiting my ophthalmologist, I looked at her business card. The phone number print is so small to be a challenge to good eyesight. Is the card’s purpose to attract clients? I’m curious as to how useful it is for people with eyesight problems.

Of course my more cynical friends claim its purpose is to have potential clients convinced they need her services.

Have you looked at your communication material to see if it is in sync with your intended audience?

CEREAL BOX

The cereal box proclaims “Gluten Free”. Curious, I read the back for more information and learn “Gluten Free” means the cereal “contains no gluten”.

Not a startling message to me, but then the message isn’t aimed at me. The audience is the shopper. Apparently, the buyer’s concern is that the consumer – kids? – will not be affected by gluten. 

When was the last time you checked your site message’s effectiveness?

WEB SITE

Visited the web site of local service provider to find out the cost of a standard service provided by many others in the community. Searching every corner of the site there is no price list to be found.

Prominently displayed is the owner’s email address inviting everyone with a question to submit it. The email was returned because it is not an active address. On to a different provider.

Are you a straight shooter when communicating with your employees and customers?

DOUBLE SPEAK

Many times double speak is used to gloss over unfavorable news. One of the US automakers before the Troubled Asset Relief Program (TARP) used the term “Career Alternative Enhancement Program” when it laid off 5,000 workers.

Bottom Line?

Are you communicating with your audiences in your world or theirs? A second look may not hurt.

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.

 

Warning Your Strategic Plan May Be Out Of Date

Warning Your Strategic Plan May Be Out Of Date

Smart Business Thinking by Jim Whelan 

In the current shifting environment everyone is living through, we at Smart Business Thinking are asked the question how often clients should review their strategic plan. A sensible question for businesses and for individuals.

Here in the metro Washington DC area many firms are struggling with the effect of reduced government spending. If it is going to affect their company how badly will it hurt? Contributing to the upheaval is a strategic plan that is based on the “old way we did business”.

If there were a strategy that was the basis for the plan, most likely, it didn't consider that the past might not reflect the future. While no one should try to predict the future in developing a strategy, an observation about what may come down the pike is necessary.

The answer to the question is that any business (or individual) should periodically survey what is going on in the “outside world”. Look for potential storm clouds on the horizon and think of possible future changes.

Major shifts seldom happen without some forewarning. With the winding down of the wars and the move afoot to reduce government spending, the change in government related business should not be a shock. Those organizations that relied on their old strategic plan for direction are now playing a desperate game of catch up.

Don't get caught. Be alert and rethink strategy periodically.

Bottom Line? A strategy is the overriding impetus guiding an organization. Implementing strategy must be flexible and one that adjusts to current circumstances. An eagle eye to spot those signals is a must. 

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.

Do We Need A Strategic Plan?

Do We Need A Strategic Plan?

Smart Business Thinking by Jim Whelan

"In preparing for battle, I have always found that plans are useless, but planning is indispensable." 
Dwight D. Eisenhower (1890-1969)

A common question we at Smart Business Thinking are asked is whether or not a strategic plan is really necessary. A very good question and an important one, too, for anyone working toward building a successful business.

Focus on the Eisenhower quote. It’s not the end result of a written plan that is the key ingredient. The thought process of deciding the ultimate target and how to achieve it is the way to win the battle.

So let’s think about strategic thinking (strategy) rather than a strategic plan. Strategic thinking focuses on the core purpose of the business and possible ways you can reach that objective.

I’ve had a successful business owner maintain he has never had a strategic plan. Yet when he spoke to a group about building a business, it is clear he has strategically thought through why he is in business and developed a process in his mind that is an effective strategy.

Although the plan isn’t written down, it exists in his mind and his company is following the strategy.

Returning to the question: Is a strategic plan really necessary?

Necessary? Not if we agree with General Eisenhower . But we must assume there is a strategy developed after careful consideration of the ultimate objective and includes means of achieving the goal.

Desireable? For most I believe it is. As long as it reflects the analysis and results-oriented thinking used to develop the strategy. It can be a communication tool providing all understand it is subject to revision as conditions change

Bottom Line? A strategy is the overriding impetus guiding an organization. Implementing strategy must be flexible that adjusts to current circumstances. Be careful not to get caught in the strategic plan web.

Jim is an expert business coach and a respected advisor management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.