the leadership, strategy, innovation link: a conversation about possibilities

The Leadership, Strategy, Innovation Link: A Conversation About Possibilities

2014 Nonprofit Empowerment Summit

Giving It Our All!

Dr. Rob Sheehan, Executive MBA Director, University of Maryland

Robert M. Sheehan, Jr., Ph.D.

PrincipalSheehan Nonprofit Consulting

@SheehanImpact

RobSheehan@aol.com301.523.1864www.SheehanNonprofitConsulting.com

POSSIBILITIESLEADERSHIP, STRATEGY,

INNOVATION LINK

ABOUT ROB SHEEHAN

*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA

Program

*Center for Philanthropy & Nonprofit Leadership, UMD

*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork

*Robert H. Smith School of Business, University of Maryland Academic Director, Executive MBA

Program

*Center for Philanthropy & Nonprofit Leadership, UMD

*Sheehan Nonprofit Consulting Strategy, Leadership, Teamwork

ABOUT ROB SHEEHAN

Ph.D., The Ohio State University College of Business School of Public Policy &

Management Organization Development,

Leadership, Organization Effectiveness

Published Researcher

Ph.D., The Ohio State University College of Business School of Public Policy &

Management Organization Development,

Leadership, Organization Effectiveness

Published Researcher

ABOUT ROB SHEEHAN

CEO, 18 years, Two National Nonprofits

AΣΦ Educational Foundation, 1981-1990

LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising

Executive), 1986-2004

CEO, 18 years, Two National Nonprofits

AΣΦ Educational Foundation, 1981-1990

LeaderShape, Inc., 1992-2001 CFRE (Certified Fund Raising

Executive), 1986-2004

QUICK SURVEY

How many of you think that most people in the nonprofit

world work very hard?

QUICK SURVEY

world are smart?

LEAP OFREASON

“Incremental Change is Not Enough”

-Mario Morino

Leap of Reason

“Incremental Change is Not Enough”

-Mario Morino

Leap of Reason

“INNOVATE OR DIE”

“We’re in an environment where its innovate or die.”

-Amelia Franck Meyer

CEO, Anu Family Services,

Hudson, WI

The Chronicle of Philanthropy

“We’re in an environment where its innovate or die.”

-Amelia Franck Meyer

CEO, Anu Family Services,

Hudson, WI

The Chronicle of Philanthropy

BREAKTHROUGH STRATEGY

The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact.

A NEW MINDSET

We need a new mindset.

NEW PATTERNS OF THOUGHT

“The problems we face cannot be solved using the same patterns of thought that were used to create them.”

- Albert Einstein

“The problems we face cannot be solved using the same patterns of thought that were used to create them.”

- Albert Einstein

BEING UNREASONABLE

“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”

- George Bernard Shaw

“The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.”

STRATEGYDEVELOPMENT PROCESS

Establish Mission Gap Adopt Aspirational Mindset for

Creating Vision Adopt Aspirational Mindset for

Setting Strategic Stretch Goals Discern SWOTs Create Strategy Narrative

Establish Mission Gap Adopt Aspirational Mindset for

THE BREAKTHROUGHSTRATEGY WORKBOOK

A guide for strategy development that follows the Mission Impact process.

Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).

An example of the final output from a strategy development process is included on pp. 22 – 28.

A guide for strategy development that follows the Mission Impact process.

Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).

An example of the final output from a strategy development process is included on pp. 22 – 28.

STRATEGYDEVELOPMENT MAP

Mission Impact

“MISSIONGAP”

Imagine what the world would look like if you were accomplishing your mission 100%.

Compare that to the way the world really looks like today.

The difference between the two is your “Mission Gap.”

Imagine what the world would look like if you were accomplishing your mission 100%.

Compare that to the way the world really looks like today.

The difference between the two is your “Mission Gap.”

MERRILL COUNTYLITERACY COUNCIL

Mission

To assure that all adults age 16 or older in Merrill County are literate.

Mission Accomplishment Measure

The literacy rate in Merrill County, as reported by county officials.

Mission

To assure that all adults age 16 or older in Merrill County are literate.

Mission Accomplishment Measure

The literacy rate in Merrill County, as reported by county officials.

MERRILL COUNTYLITERACY COUNCIL

Mission Gap

With 100,000 adults, age 16 and older, living in Merrill County, the Mission

Gap is 20,000 adults.

Mission Gap

With 100,000 adults, age 16 and older, living in Merrill County, the Mission

Gap is 20,000 adults.

BIG RIVER REGIONHOUSING SERVICES

MissionTo ensure that all citizens within the Big

River Region have access to safe, affordable, and quality housing.

Mission Accomplishment MeasuresPercentage of households within Big River Region which meet the standards

we set for affordability, quality, and safety using Success Measures©

surveys.

MissionTo ensure that all citizens within the Big

River Region have access to safe, affordable, and quality housing.

Mission Accomplishment MeasuresPercentage of households within Big River Region which meet the standards

we set for affordability, quality, and safety using Success Measures©

surveys.22

BIG RIVER REGIONHOUSING SERVICES

Mission Gap

With 250,000 households in Big River Region, the Mission Gap is 80,000

households without safe, affordable, quality housing.

Mission Gap

With 250,000 households in Big River Region, the Mission Gap is 80,000

households without safe, affordable, quality housing.

NORTH TEXASFOOD BANK

YOURMISSION GAP

Do you need a Breakthrough Strategy

that will drive Innovation in your

organization?

Do you need a Breakthrough Strategy

that will drive Innovation in your

organization?

✔ Establish Mission Gap Adopt Aspirational Mindset for

The Power

Vision

The Power

Vision

ANALYTICALVISIONING

Analyze Internal Capabilities & Predictable Changes

Analyze External Environment & Predictable Changes

Forecast (Extrapolate) Reasonable Future

Establish “Vision” as “Best Case Scenario”

Analyze Internal Capabilities & Predictable Changes

Analyze External Environment & Predictable Changes

Forecast (Extrapolate) Reasonable Future

Establish “Vision” as “Best Case Scenario”

ASPIRATIONALVISIONING

Dream with no constraints Create an Ideal “Future Picture” based

on what is Inspirational and Drives Passion

Create New Internal Capabilities Search Environment for Opportunity

Dream with no constraints Create an Ideal “Future Picture” based

on what is Inspirational and Drives Passion

Create New Internal Capabilities Search Environment for Opportunity

“Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’”

CHANGINGTHE WORLD

“Because the people who are crazy enough to think they can change the world are the ones who do.”

-Steve Jobs

“Because the people who are crazy enough to think they can change the world are the ones who do.”

-Steve Jobs

DIVINEMADNESS

“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”

-Longfellow

“Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.”

-Longfellow

STRATEGICINTENT

Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”

- Hamel & Prahalad

Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.”

- Hamel & Prahalad

CREATIVETENSION

“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”

- Peter Senge

“the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.”

- Peter Senge

VISION

With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:

“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.

With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question:

“If you could have it any way you wanted it, what would your organization be like?” Describe it in detail.

THE $100 BILLIONCHALLENGE

Why dream a vision that can never come true?

VISION

Visions give us something to aspire to.

Visions can inspire others to help make dreams come true.

Visions provide meaning to the “day to day.”

Visions give us something to aspire to.

Visions can inspire others to help make dreams come true.

Visions provide meaning to the “day to day.”

How should leaders establish vision?

POSITIONAL LEADERSHIP

Leadership by “lamination”

Leadership as a catalyst

Leadership by “lamination”

Leadership as a catalyst

TRANSFORMATIONALLEADERSHIP MODEL

PARTICIPANTSLEADERS

LEADING INNOVATION

“The role of a leader of innovation is not to set a vision and motivate others to follow it. It’s to create a community that is willing and able to innovate.”

Collective Genius

Harvard Business Review, June, 2014

“The role of a leader of innovation is not to set a vision and motivate others to follow it. It’s to create a community that is willing and able to innovate.”

Collective Genius

Harvard Business Review, June, 2014

LEADING INNOVATION

Creating Community Shared Purpose & Values Creative Abrasion: Discourse &

Debate Creative Agility: Experiment, Learn,

Adjust Creative Resolution: “And/Both”

Thinking

Creating Community Shared Purpose & Values Creative Abrasion: Discourse &

Debate Creative Agility: Experiment, Learn,

Adjust Creative Resolution: “And/Both”

Thinking

WHAT FOLLOWERS WANT

“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”

-Kouzes & Posner,

“Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.”

-Kouzes & Posner,

2009 46

✔ Establish Mission Gap ✔ Adopt Aspirational Mindset for

The Importance

Of Goals

The Importance

Of Goals

VISION TO ACTION:GOALS

Direct attention to relevant activities

Affect intensity of effort

Affect persistence

Strategic Stretch Goals: Outcome-Based & SMART

Direct attention to relevant activities

Affect intensity of effort

Affect persistence

Strategic Stretch Goals: Outcome-Based & SMART

OUTCOME VS. ACTIVITY GOALS

“To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2014.”

OUTCOME VS. ACTIVITY GOALS

“To receive $300,000 in contributions from our organization’s previous donors by December 1, 2014.”

SMARTGOALS*

Specific Measurable Attainable Relevant Time-bound

*Traditional version

Specific Measurable Attainable Relevant Time-bound

*Traditional version

ATTAINABLE GOALS

Set with at least 80% chance of success

Sounds reasonable – failure can be followed by negative consequences

Set with at least 80% chance of success

Sounds reasonable – failure can be followed by negative consequences

ATTAINABLE GOALS

What might be the downside of setting goals that are reasonably “Attainable?”

ATTAINABLE GOALS

Goal research: The more difficult the goal, the higher

the level of performance.

Goal research: The more difficult the goal, the higher

the level of performance.

Performance

Paradox

Performance

Paradox

SMARTGOALS*

Specific Measurable Aggressive, yet Achievable Relevant Time-bound

*Doug Smith version

Specific Measurable Aggressive, yet Achievable Relevant Time-bound

*Doug Smith version

AGGRESSIVEYET ACHIEVABLE

Allows you to maximize performance, but with a higher chance of failure

If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment

Allows you to maximize performance, but with a higher chance of failure

If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment

SMARTCOMPARISONS

ATTAINABLE

AGGRESSIVE

Which SMART formula is best?

ATTAINABLE

AGGRESSIVE

Which SMART formula is best?

ATTAINABLEGOALS

Best when the priority is to accurately predict performance of the current system

Good for generating “quick wins” Good for Learning Goals in new

domains Good for a team that needs to build

confidence

Best when the priority is to accurately predict performance of the current system

Good for generating “quick wins” Good for Learning Goals in new

domains Good for a team that needs to build

confidence

AGGRESSIVEGOALS

Best when the priority is to maximize the performance of the current system

Maximize intensity of effort Maximize persistence Performance vs Goal Attainment

must be rewarded

Best when the priority is to maximize the performance of the current system

Maximize intensity of effort Maximize persistence Performance vs Goal Attainment

must be rewarded

SMARTGOALS

Write out a goal that you are currently working on and write

it so it fits the “SMART” guidelines.

Write out a goal that you are currently working on and write

it so it fits the “SMART” guidelines.

A NEW ‘A’FOR SMART*

Specific Measurable *Almost Impossible Relevant Time-bound

*Rob Sheehan version

Specific Measurable *Almost Impossible Relevant Time-bound

*Rob Sheehan version

GREATLEADERS

Great Leaders Have a Healthy Disregard for the Impossible

IMPOSSIBLE . . .

“Space travel is utter bilge.”

- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956

“Space travel is utter bilge.”

- Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956

IMPOSSIBLE . . .

“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”

- Lee Deforest, American Inventor (1873-1961)

“While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.”

- Lee Deforest, American Inventor (1873-1961)

IMPOSSIBLE . . .

“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”

- The Boston Post, Editorial, 1865

“Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.”

- The Boston Post, Editorial, 1865

IMPOSSIBLE . . .

“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”

- Maj. Gen. John Kerr, U.S. Army (1878-1955)

“We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.”

- Maj. Gen. John Kerr, U.S. Army (1878-1955)

IMPOSSIBLE . . .

“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”

- Dionysius Lardner, English Scientist

(1793-1859)

“Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.”

- Dionysius Lardner, English Scientist

(1793-1859)

BULLET TRAINTHINKING

It used to take more than six hours to travel by train from Tokyo to Osaka. If the Japanese executives had said to their engineers: “I want you to reduce the time to six hours,” the engineers would have instinctively thought in terms of small improvements, perhaps in the way they boarded passengers and unloaded baggage. But instead, the Japanese executives set out a challenge to reduce the time of the journey to three and a half hours. Faced with such an “impossible” goal, the engineers and designers were forced to reexamine the most fundamental assumptions governing rail travel in Japan. The result of this reexamination was the bullet train. (Jack Welch)

It used to take more than six hours to travel by train from Tokyo to Osaka. If the Japanese executives had said to their engineers: “I want you to reduce the time to six hours,” the engineers would have instinctively thought in terms of small improvements, perhaps in the way they boarded passengers and unloaded baggage. But instead, the Japanese executives set out a challenge to reduce the time of the journey to three and a half hours. Faced with such an “impossible” goal, the engineers and designers were forced to reexamine the most fundamental assumptions governing rail travel in Japan. The result of this reexamination was the bullet train. (Jack Welch) 70

TRADITIONAL ANALYTICAL GOALS“This is a forecast of the result we should be

able to produce if we work hard at it.”

ASPIRATIONAL STRETCH GOALS“This is the very best result we can

imagine possible (1% chance) and we have no idea how to make it happen.”

ASPIRATIONAL STRETCH GOALS“This is the very best result we can

imagine possible (1% chance) and we have no idea how to make it happen.”

STRETCHGOALS

You can’t think outside of the box, when you are

standing in it!

You can’t think outside of the box, when you are

standing in it!

STRETCHGOALS

You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it.

STRETCHGOALS

“The most fun game is one you’ve never played and your inventing as you go along.”

Jerry Seinfeld

Fast Company, June 2014

“The most fun game is one you’ve never played and your inventing as you go along.”

Jerry Seinfeld

Fast Company, June 2014

STRETCHGOALS

Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning.

THE MOON SHOTvs CANCER

1961: President Kennedy sets the goal to send a man to the moon and return him safely by the end of the decade.

1970: Congress passes a resolution to cure cancer by 1976 as a fitting celebration for the bicentennial.

1961: President Kennedy sets the goal to send a man to the moon and return him safely by the end of the decade.

1970: Congress passes a resolution to cure cancer by 1976 as a fitting celebration for the bicentennial.

STRETCHGOALS

You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play.

SAFE - FAILENVIRONMENT

“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”

The Failure Tolerant Leader

Harvard Business Review, 2002

“‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.”

The Failure Tolerant Leader

Harvard Business Review, 200278

STRETCHGOALS

You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks.

Pessimists & Optimists Unite

Use “Flexible Optimism”

Pessimists & Optimists Unite

Use “Flexible Optimism”

STRETCHGOALS

Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high.

STRATEGICINTENT

“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”

-Gary Hamel & C.K. Prahalad

“Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.”

-Gary Hamel & C.K. Prahalad

THE WALLSTREET JOURNAL

“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”

-Jack Welch, March 8, 1994

“Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.”

-Jack Welch, March 8, 1994 84

START WITH THE END IN MIND

*When brainstorming new ways to go about accomplishing a goal,

“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.

*When brainstorming new ways to go about accomplishing a goal,

“start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that.

STRATEGIC STRETCHGOALS

Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization

toward your vision and help close your Mission Gap most effectively

Meet the Almost Impossible SMART criteria

Set five Strategic Stretch Goals for the next five years which: Inspire you!!! Would catapult your organization

toward your vision and help close your Mission Gap most effectively

Meet the Almost Impossible SMART criteria

CHALLENGES WITHSTRETCH GOALS

Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals.

You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that.

The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else.

You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .

. . . . . unless you are Dilbert’s boss.

You should not try to “force” others to be inspired and more creative about a Stretch Goal, just because it inspires you . . . . .

. . . . . unless you are Dilbert’s boss.

The biggest challenge is setting Strategic Stretch

Goals is overcoming the Fear of Failure that has been bred

within us.

The biggest challenge is setting Strategic Stretch

Goals is overcoming the Fear of Failure that has been bred

within us.

FAILURE

We need to transform our relationship with failure in order to leverage the aspirational mind-set and the power of Almost Impossible Goals.

What is your relationship with failure?

We need to transform our relationship with failure in order to leverage the aspirational mind-set and the power of Almost Impossible Goals.

What is your relationship with failure?

YOU FAILURE!!!

“I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!”

TRANSFORM YOUR RELATIONSHIP WITH FAILURE

“We Celebrate Noble Failure.”“We Celebrate Noble Failure.”

Result:Any accomplishment of positive

magnitude

Success:Any accomplishment which meets or

exceeds its intended result

Failure:To fall short of an intended result

Result:Any accomplishment of positive

magnitude

Success:Any accomplishment which meets or

exceeds its intended result

Failure:To fall short of an intended result

OHIO STATEFUNDRAISING PROJECT

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

1992 $150,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

1992 $150,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

1992 $150,000 $143,000

Goal Result

1988 $40,000 $48,000

1989 $25,000 $24,000

1990 $25,000 $17,000

1991 $50,000 $62,000

1992 $150,000 $143,000

LEADERSHAPEPARTICIPANTS

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

10XTHINKING

Larry Page lives by the gospel of 10x. Most companies would be happy to improve a product by 10 percent. Not the CEO and cofounder of Google. The way Page sees it, a 10 percent improvement means that you’re basically doing the same thing as everybody else. You probably won’t fail spectacularly, but you are guaranteed not to succeed wildly. That’s why Page expects his employees to create products and services that are 10 times better than the competition. Thousand-percent improvement requires rethinking problems entirely, exploring the edges of what’s technically possible, and having a lot more fun in the process. (http://www.wired.com/business/2013/01/ff-qa-larry-page/all/)

Larry Page lives by the gospel of 10x. Most companies would be happy to improve a product by 10 percent. Not the CEO and cofounder of Google. The way Page sees it, a 10 percent improvement means that you’re basically doing the same thing as everybody else. You probably won’t fail spectacularly, but you are guaranteed not to succeed wildly. That’s why Page expects his employees to create products and services that are 10 times better than the competition. Thousand-percent improvement requires rethinking problems entirely, exploring the edges of what’s technically possible, and having a lot more fun in the process. (http://www.wired.com/business/2013/01/ff-qa-larry-page/all/)103

A HEALTHY DISREGARDFOR THE IMPOSSIBLE

Page thought big even when he was little—he has said he always wanted to be an inventor, not just to produce gadgetry but to change the world. As an undergrad at the University of Michigan, he found inspiration in a student leadership-training program called LeaderShape, which preached “a healthy disregard for the impossible.” By the time he got to grad school at Stanford, it was a natural step for him to 10X his potential thesis idea—a tool to annotate web pages—into a search engine that transformed the web and the world.

FAILURE WITHTRADITIONAL GOALS

“We messed up.”“We messed up.”

FAILURE WITHSTRETCH GOALS

“Look at our results!”

“What could we have done differently?”

“I’m glad we went for it, but I wish we had accomplished it 100%”

“Look at our results!”

“What could we have done differently?”

“I’m glad we went for it, but I wish we had accomplished it 100%”

FAILURE ANDCREATIVE TENSION

“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”

- Peter Senge, The Fifth Discipline

“Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.”

- Peter Senge, The Fifth Discipline

FAILURE ANDINNOVATION

“Failure is just a part of the culture of innovation. Accept it and grow stronger.”

- Albert Yu, SVP, Intel Corp

“Failure is just a part of the culture of innovation. Accept it and grow stronger.”

- Albert Yu, SVP, Intel Corp

“The only real stumbling block is fear of failure. In cooking, you’ve

got to have a what-the-hell attitude.”

-Julia Child

“The only real stumbling block is fear of failure. In cooking, you’ve

got to have a what-the-hell attitude.”

-Julia Child

GETTINGSMARTER FASTER

“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”

- Tom Peters, Fast Company, December 2001

“ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.”

- Tom Peters, Fast Company, December 2001

Creating Vision ✔ Adopt Aspirational Mindset for

Clarity on Your Current RealityClarity on Your Current Reality

STRENGTHS &WEAKNESSES

Better to use systematic tools rather than just asking “what do you think are our strengths & weaknesses?”

Use “systems thinking” as you assess the organization.

Better to use systematic tools rather than just asking “what do you think are our strengths & weaknesses?”

Use “systems thinking” as you assess the organization.

VENTURE PHILANTHROPY PARTNERSCAPACITY FRAMEWORK

ELEMENTS

Aspirations Strategy Organizational

Skills Human

Resources

Aspirations Strategy Organizational

Skills Human

Resources

Systems and Infrastructure

Organizational Structure

Culture

Systems and Infrastructure

Organizational Structure

Culture

VPP-MCKINSEYOCAT 2.0

Now available on line:

http://mckinseyonsociety.com/ocat

Now available on line:

http://mckinseyonsociety.com/ocat

SYSTEMS THINKINGAPPROACH

• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?

• The essential elements of organization performance:• Financing• Staffing• Products/Services/Programs

• A “systems” approach – focuses on the “whole” of the system and asks: What are the “essential elements” that make the system effective?

• The essential elements of organization performance:• Financing• Staffing• Products/Services/Programs

BLASPHEMY

“Programs do not produce impact.”“Programs do not produce impact.”

BLASPHEMY

“Programs do not produce impact.”

“Organizations do.”

“Programs do not produce impact.”

“Organizations do.”

SYSTEMS THINKINGAPPROACH

Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Products/Programs/Services

It is the System, the Whole, which allows for Mission Impact

An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System

Evaluate the interactions of essential operations of the organization as a “system”: Funding, Staffing, Products/Programs/Services

It is the System, the Whole, which allows for Mission Impact

An over-emphasis on any one part or ignoring the impact one part may have on another can lower the performance of the System

OPPORTUNTIES & THREATS

Better to be systematic rather than just asking “what do you think are our opportunities & threats?”

Engage stakeholders, use data from government or other sources, do some research.

Better to be systematic rather than just asking “what do you think are our opportunities & threats?”

Engage stakeholders, use data from government or other sources, do some research.

YOURSWOTs

Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?

Weaknesses? Opportunities? External threats?

Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?

Weaknesses? Opportunities? External threats?

Setting Strategic Stretch Goals ✔ Discern SWOTs Create Strategy Narrative

The Role of Strategy

WHAT ISSTRATEGY?

Strategy is more than strategic planning

Strategy is not just a collection of goals and budget forecasts

Most organizations have plenty of plans, but very little strategy

Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end.

Strategy is more than strategic planning

Strategy is not just a collection of goals and budget forecasts

Most organizations have plenty of plans, but very little strategy

Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end.

WHAT ISSTRATEGY?

Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future.

NONPROFIT STRATEGY

The purpose of having a strategy is to guide the organization toward its desired future.

Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.

The purpose of having a strategy is to guide the organization toward its desired future.

Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward.

NONPROFITSTRATEGY

The “cause & effect performance story” tells how you will get from “here to there” while . . .

. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.

The “cause & effect performance story” tells how you will get from “here to there” while . . .

. . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats.

YOUR STRATEGY

Your Strategy is “like” your theme song

WHAT IS YOUR STRATEGY “TUNE?”

A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.

Everyone in the organization should know the strategy as well as they can recognize a popular tune.

A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.

Everyone in the organization should know the strategy as well as they can recognize a popular tune. 129

STRATEGYNARRATIVE

A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.

Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.

As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.

A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.

Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.

As you design strategy, remember to think of the organization as a “system” of funding, staff, programs.

STRATEGYNARRATIVE

“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”

- D. J. Collins & M. G. RukstadHarvard Business Review, 2008

“Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.”

- D. J. Collins & M. G. RukstadHarvard Business Review, 2008

How does an organization go about creating its Strategy & Strategy

Narrative?

How does an organization go about creating its Strategy & Strategy

Narrative?

STRATEGYDEVELOPMENT

Review each of your SWOTs and explain what “Strategic Actions” you should take regarding it.

A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.

Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.

These build the “themes” of your Strategy Narrative

Review each of your SWOTs and explain what “Strategic Actions” you should take regarding it.

A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.

Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.

These build the “themes” of your Strategy Narrative

STRATEGYDEVELOPMENT

Evaluate Weaknesses & Threats

Look for Leverage & Opportunity

Evaluate Weaknesses & Threats

Look for Leverage & Opportunity

EVALUATE WEAKNESSES AND THREATS

Look at interactions of Weaknesses and Threats for necessary “damage control”

Evaluate all Weaknesses and Threats Look at interactions of Weaknesses

and Threats with Strengths for possible solutions

Fortify Weaknesses as necessary and Block relevant Threats

Look at interactions of Weaknesses and Threats for necessary “damage control”

Evaluate all Weaknesses and Threats Look at interactions of Weaknesses

and Threats with Strengths for possible solutions

Fortify Weaknesses as necessary and Block relevant Threats

LOOK FOR LEVERAGE & OPPORTUNITY

Focus on the Strategic Stretch Goals What can you use from the current

reality and SWOTs to catapult forward?

Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas

Focus on the Strategic Stretch Goals What can you use from the current

reality and SWOTs to catapult forward?

Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas

STRATEGYNARRATIVE

A cause & effect performance story with a beginning, middle, and end

The General speaks:

A cause & effect performance story with a beginning, middle, and end

The General speaks:

“First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.”

STRATEGY:MAKING CONNECTIONS

NAPOLEON

Greatest Military Strategist Ever?

NAPOLEON

Greatest Military Strategist Ever?

YOURBATTLEFIELD

STRATEGYNARRATIVE

Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward

Be sure to have strong levers Integrate and balance actions in

funding, staffing, programs/services

Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward

Be sure to have strong levers Integrate and balance actions in

funding, staffing, programs/services

Setting Strategic Stretch Goals ✔ Discern SWOTs ✔ Create Strategy Narrative

“SO WHAT”MINUTE

What three things will you do during the next week to apply some of the ideas we have discussed today?

“SO WHAT”MINUTE

Design a new strategic planning process

Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”

Design a new strategic planning process

Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.”

“SO WHAT”MINUTE

Review all of your goals and make sure they are SMART.

Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.

Share your key learnings with others at your next staff or Board meeting

Review all of your goals and make sure they are SMART.

Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.

Share your key learnings with others at your next staff or Board meeting

THE BLOG

Check it out:

http://strategyleadershipmissionimpact.blogspot.com/

Email me if you want on the distribution list: RobSheehan@aol.com

Check it out:

http://strategyleadershipmissionimpact.blogspot.com/

Email me if you want on the distribution list: RobSheehan@aol.com

THANK YOU VERY MUCH!!!

For your leadership! For your commitment!! For the difference you make!!!

Robert M. Sheehan, Jr., Ph.D.Principal

Sheehan Nonprofit Consulting

301.523.1864RobSheehan@aol.com

www.SheehanNonprofitConsulting.com@SheehanImpact

FOR MORE INFORMATION

THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY

#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours.

#1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours. 149

#2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”).

#3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund-raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under-emphasized – such as program innovation, leadership succession, strategic partnerships, and more.

#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance.

#4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance. 152

#5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance.

#6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities.

#7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.”

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