1 Wednesday, May 18, 2016

Thinking & Planning Strategically

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Workshop Objectives:

• Understand the three Modes of Governance and when each is applicable

• Learn to distinguish technical problems from adaptive problems

• Get ideas for incorporating strategic thinking into your organization

• Learn how a strategy map can help identify your key strategic issues

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© 2013 BoardSource

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Primary Board Responsibilities

Provide Oversight

Ensure the Necessary Resources

Set Organizational Direction

© 2013 BoardSource

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The 3 Modes of Governance Type I

Fiduciary Type II

Strategic Type III

Generative

Board’s role

Steward

Strategic

Sense-maker

Key question

What’s wrong?

What’s the plan?

What’s the key

question?

Problems are to

be:

Handled

Solved

Framed

Way of deciding

Reach resolution

Reach consensus

Reach understanding

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Fiduciary Governance

• Fiduciary

• Oversee operations, monitor organizational conformance, and ratify policy.

• Approval of Budget

• Give meaningful financial contribution, open doors for funding opportunities

• Policy approval

• Assure legal and ethical standards

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Strategic Governance

• Strategic

• Scan environments, review/modify the strategic plan, and monitor organizational performance.

• Mission, vision, values and planning

• Address issues strategically

• What drivers and associated performance will allow the organization to achieve its goals?

• Board actively participates with staff

© 2013 BoardSource

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Generative Governance

• Generative

• Reconcile value propositions, discern and frame challenges, think creatively, and make sense of circumstances.

• Collaborative approach between executive staff and board

• Gives problems and challenges a framework and definition

• Looking back helps shape the future. Asking why were we successful, or unsuccessful?

© 2013 BoardSource

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The Generative Thinking Grid B

oar

d E

nga

gem

en

t Governance by Fiat Governance as Leadership

Governance by Default Governance by

Observation

Executive Engagement

Source: “Governance as Leadership: Reframing the Work of Nonprofit Boards” by Richard Chait, William Ryan, and Barbara Taylor, John Wiley & Sons, 2005

When the engagement of board members and the

chief executive in generative work is high

the result is optimal:

Type III Governance

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In Practice • CEO or Executive Director Hiring Process

• Fiduciary Mode—What is a competitive salary range? Approval of Position Description.

• Strategic Mode—Hiring the right executive director. What strategies will assure a successful hire?

• Generative—What qualities are needed in our new staff leader to move the organization forward?

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Adaptive vs Technical Problems • Technical problems tend to be those we have

encountered before (or someone else has) and have experience, resources and understanding to successfully solve.

• May be very complex and important

• Solutions come from experts/authority

• Solutions are grounded in current structures, processes and ways of doing things

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Adaptive vs Technical problems • Adaptive challenges are those that we usually have

not encountered before and a clear solution may not be present.

• Solutions require changes in priorities, beliefs, habits and loyalties

• Expertise of people in authority is not enough; others must be mobilized in problem solving

• Likely to involve organizational or individual loss

• Requires generative thinking

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Adaptive vs Technical Problems Technical Problems Adaptive Problems

Fiduciary Governance

Strategic Governance/

Planning

Generative Governance

“If you want to change the culture, change the dialogue.”

Annette Eros

Discussion Dialogue

Different views are presented and defended

Different views are presented as a means of discovering a new view

Decisions are made Complex issues are explored

Goal is convergence on a course of action

Goal is divergence, not seeking agreement, but a richer understanding of complex issues

Action is the focus of discussion

Possible new actions emerge as a by-product of dialogue

The Practitioner’s Guide to Governance as Leadership

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The Devil's Inquisitor In what ways could we be wrong? In what ways are we uncertain? What did we miss? What is different than in the past? What is the same? What information do we have that supports an

alternative solution? How would our constituents frame this issue? How will we know if we are wrong? What are you concerned about? How much risk are we comfortable with? What is the most important question we should be

asking?

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Generative Questions • 1. What question, if answered, could make the most difference to the future of (your specific situation)?

• 2. What’s our intention here? What’s the deeper purpose that is really worthy of our best efforts?

• 5. What opportunities can you see in this ?

• 6. What do we know so far? What do we still need to learn about it?

• 7. What are the dilemmas/opportunities in it?

• 8. What assumptions do we need to test or challenge here in thinking about it?

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Exercise: Technical vs Adaptive Problems • Identify two issues currently facing your

organization.

• Are they technical problems, adaptive problems or a combination of both?

• What are the most important questions you should be asking about each issue?

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Identifying Strategic Issues

• What makes it a strategic issue? – Directly impacts our ability to achieve the

Mission

– Is customer or stakeholder driven

– Affects entire organization

– Has high consequence if not addressed; likely to get bigger, more urgent

– Requires change to effectively address

– Creates an opportunity for improvement that will have a long-term impact

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The Strategy Map

• Dr. Kaplan & Dr. Norton, HBS

• The Balanced Scorecard

• A performance management system balances:

Financial and non-financial

Leading and lagging

Planning Execution

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Linking Strategic Objectives

Cause and effect linkages vs opposing objectives How do we want to serve our clients?

In order to meet the needs of our clients/customers,

what do we need to do well?

In order to meet our customers’ needs and perform

well, how do we need to look financially?

In order to achieve our Mission and objectives, how

must we invest in our employees, Board and

volunteers?

MISSION

Customer /Client objectives

Customer /Client objectives

Process objectives

Process objectives

Process objectives

Financial objectives

Financial objectives

Volunteer

objectives

Maintain

effective,

skilled staff

Maintain

Relationships

with Funders

Business

Processes

People

Provide accurate,

up-to-date, actionable

information

Provide

scholarships

for survivors

Deliver information

in person, one-on-

one

Develop & execute an

effective Fundraising Plan

Financial

Utilize the web to

inform and create

community

To support and empower young women by increasing

their awareness and knowledge of breast cancer

Create a community of

support for those affected

by breast cancer Clients

Mission

Maintain an

engaged

Board

Cultivate and

utilize

volunteers

Protect &

expand the

B4BC brand

Use donations

efficiently

Boarding 4 Breast Cancer

CEN’s Balanced Score Card

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Exercise: Identifying Key Strategic Issues

List a few strategic issues facing your organization in each of the four perspectives:

Constituents

Processes

Financial

Board/Staff/Volunteers

How do the issues relate to each other?

Start to build your strategy map

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Share One Take-Away from Today’s Workshop

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• Governance as Leadership

• By Chait, Ryan and Taylor

• The Practitioner’s Guide to Governance as Leadership

• By Cathy Trower

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• Balanced Scorecard: Step-by-Step for Government and Nonprofit Agencies

• By Paul R. Niven

• Strategic Planning for Public and Nonprofit organizations

• By John M. Bryson

• Implementing Your Strategic Plan (Workbook)

• By John M. Bryson and Farnum K. Alston