Plan for a Great Year-end Now

There are many different ways to raise money for the great causes in our communities. Getting your hardware store to have customers round-up, special events, mailings, selling cookies, and many, many more! In my career as an Executive Director and in the work I do now as a Consultant, I’ve always been much more passionate about the relationship side of fundraising than the transactional side. 

When we get nameless, faceless individuals to give us money on impulse or out of feelings of obligation or guilt, we are essentially making a transaction. It’s usually a one-time deal, and we never see the person again. There is nothing at all wrong with this. Many organizations are able to raise significant funds in this way. It’s just that I don’t get excited about it. 

The aspect of fundraising that motivates me is connecting people to causes that they care deeply about. To me, helping people to consider ways that they can make our communities stronger and healthier is what the nonprofit sector is all about. It involves drawing out empathy and compassion, then facilitating opportunities to direct those emotions into action and impact. This starts with developing relationships and your Board of Directors is a great place to begin laying the foundation of relationship-based development. 

At the end of the year, many organizations focus a great deal of energy on tasks that drive transactional giving. This is totally understandable – there are budgets to meet and year-end generosity and tax advantages to capitalize on. However, I want to spend this article giving you five strategies that you can put in place now (or over the next few months) that will help you sail into Q4 with confidence. 

Strategy #1 – Evaluate your Board of Directors

Is your board engaged? Do they care about the critical social issue you are addressing? Do they joyfully give their time, talent and treasure to advance the work you are doing to make your community a better place? Your board should be made up of your most enthusiastic and dedicated donors and volunteers. If they are not, it’s likely time for a shakedown. Imagine the year-end potential if you have a dozen raving fans out in the community sharing the importance of the work you do! 

Strategy #2 – Educate your Board of Directors 

Many people join boards because they care about the issue and advancing the solution, but they don’t know how to help. If they are not given direction, they often become disengaged, or they focus their energy in ways that are not helpful to the organization. Staff are already more than busy, and do not have time to download the massive amount of knowledge they have accumulated while working in the industry. 

So how do you bring volunteers up to speed so they can be actively involved in advancing the work? Give homework. Here are a few ideas that can help your volunteers understand your cause better. 

    • Assign research on the history or root cause of the issue your agency addresses. What are the underlying issues that many people don’t understand? 
    • Assign interviews with other agencies tackling different aspects of the issue. How do the different agencies work together? What other opportunities exist for tackling the problem? Why should we or should we not expand to address the issue in different ways? 
    • Assign interviews with constituents to help understand the impact of the issue. What do we think we know, but we really don’t? 
    • If possible, send them through an experience that helps them understand the work better. Poverty simulations, accessing services as a potential constituent, participating in programs, serving as a front-line volunteer, and more can give volunteers a deeper understanding of the cause. 

Have volunteers do their homework, then present it to the full board during a regular meeting. Them doing the research is going to make the learning more impactful, and they will likely come away with significantly different learnings than if staff had just told them what they know. 

Board members with a strong understanding of the problem and the unique way their organization is addressing the problem, are excited about sharing your amazing work and engaging other people in the solution. 

Strategy #3 – Engage your Board of Directors

Boards that come together every month or so just to hear about operations, are totally missing the point. Board and committee meetings should be centered on the work that the volunteers are doing to advance the cause. A planning or strategic retreat early in the fiscal year can help clarify the work that they need to be doing. If your agency is new to engaging your governance volunteers in appropriate work, here are a few ideas that can come out of intentionally planning their focus:

    • Expand upon the education homework to deepen understanding
    • Debate the merits of expanding or staying narrowly focused
    • Identify marketing opportunities for participants or donors
    • Discuss ways to deepen relationships with potential participants or donors 
    • Consider the strategies of other industries and how they may inform your work
    • Compare funding streams with those of other agencies and discuss
    • Identify XX prospects who should be friends of your organization and strategize how to establish and strengthen those relationships
    • Create policies to ensure long-term success
    • Plan for change, challenges and growth

These are just a few ideas, and of course – they will totally depend on the work and stage of your organization. The idea is to strengthen your board, their understanding and commitment to your work. As a result, you multiply the number of voices you have in your community sharing your stories. 

Strategy #4 – Tell different kinds of stories

Different brains work differently. There are a myriad of personality tests out there to prove it. So if you are only telling one kind of story, you are likely only connecting with one type of brain. Very generally speaking, these four different types of stories will appeal to four different types of potential friends of your organization:

    • Empathetic – these folks want to hear the stories about the people impacted by the problem and how you are helping them
    • Analytic – tell them about the numbers of people affected, financial burdens created by the problem, money saved by your solution, etc
    • Big Picture – give them the vision of how the world will be a better place because of your work
    • Process – this group wants to understand the problem and the way that you are fixing it

Oftentimes we just tell stories that pull at the heartstrings. Those are important stories, but for some people that’s just white noise. By telling different types of stories, you will pique the interest of more people and more potential year-end givers. When you educated your board on the different kinds of stories that can be told, you help them grow, and they become better story tellers for you. 

Strategy #5 – Capture and Communicate

I’ve talked before about the idea of friend-raising. This involves connecting people to your organization so that they care and hopefully want to volunteer, donate, spread the word, or engage in some other way. To friend-raise, you need to get out and talk to people about the work you are doing. Go to Rotary Clubs and networking groups and farmers markets. Seize every opportunity to tell your stories. This is how you spread awareness and find more potential “friends” of your organization.

If you are not already doing this, establish a system for capturing anyone who has potential to be a friend. In addition to name and contact information, collect how they connected to the organization, who would be a good person to follow-up, and rank whether they are a casual friend, a connected friend, or a committed friend. This can be a sophisticated CRM or an excel spreadsheet. 

When you (staff or volunteers) are out in the community speaking about your agency, note the people who ask the extra questions. Or the ones who have a personal story to tell you. Or the ones who stick around afterwards to talk more about the issue. These are perfect people to add to your list. 

Once you have a list, follow-up with them multiple times throughout the year. Send pictures from events, updates on impact, information about upcoming engagement opportunities, success stories, and more. Set a goal of connecting with organizational friends X times throughout the year. The purpose of the communications should be to deepen the relationship (they can include a “soft ask” if it feels appropriate). The bigger goal is to give them reasons why they want to donate during your year-end efforts. 

There you go! Five things that you (staff and volunteer leadership) can do now or throughout the year, to help make Q4 successful, fun and prosperous for your organization. 

I help organizations to create the volunteer leadership they need to advance their work and help make our world a better place. Email me at Kim@Athena-CoCo.com, or schedule a Discovery Call if you would like to discuss ways to strengthen your Board of Directors and the work of your agency.

Kim is a mom, lover of being active and the outdoors, and helper of nonprofit leaders.
kim@athena-coco.com

Launching an Executive Director Evaluation Process

When I thought about this topic for an article, I was thinking it would be geared towards younger, newer organizations. That was until I recently spoke with the Board Chair of a nonprofit that has been around for 16-years. They still do not have a system in place for providing feedback to their Executive Director, or helping to ensure that the Exec’s work aligns with the goals and strategies of the agency. 

With that, this article is for any organization that does not have an executive evaluation system in place, or whose system isn’t really working for them. You may be wondering why a business would not have a system in place for evaluating their highest staff leader. The biggest reason I see occurs when the founder of the organization is the Executive Director. The board often does not know their role with providing feedback for them. It can also be hard and sometimes awkward to get started. 

Technically, the Board of Directors of a nonprofit organization supervises the Executive Director. However, the unique structure of nonprofits means that the Board and the ED have to work closely in partnership to effectively lead the organization. The challenge can come from the need to maintain a collaborative relationship, while also providing the leadership, guidance and growth opportunities of a supervisor. My recommendation is always to start this process in the same way that you lead the organization, as a shared project. 

Depending on the size of the organization and the number of employees, there may already be a system in place that the Exec has established for evaluating staff. If so, this is a great place to start. I don’t mean that the board should just take the tools that the staff is using, and apply them to the ED. What I mean is, if there is already an evaluation cycle or timeline, look at how to roll into it. Look at the tools that are being used to see if any of them make sense for your task. Get an idea of how the current process looks and feels. 

If no process exists, or the board doesn’t really like the one that is there, it actually gives you a lot more freedom. Here are some questions to think about as you start planning: 

  • What is the culture of the organization and how should it inform the evaluation process?

Is the organization formal and serious? Playful and fun? Relaxed yet determined? All processes and procedures should link back to the values and the brand of your organization. That’s not to say that if you have a playful culture you do not take the process seriously. Supporting your ED is important work. But your system may be relaxed and conversational. 

  • How should the timing look?

Many organizations tie the executive evaluation to their fiscal year or the calendar year. Since you may be starting from scratch, it’s worth evaluating the best time of year to conduct the evaluation process. The end of the fiscal year can be a very busy time for nonprofit professionals. They may be wrapping up fundraising efforts, creating plans and budgets for the coming year, and measuring the impact of the work for the past year. If the fiscal year lands at the end of the calendar year, there are all the additional commitments that come with the holidays. Consider holding annual evaluations during a slower time of year, so it’s not one more thing for staff to commit to. 

  • Who should be involved?

This depends on the size of your board. If you have a board of three people, it may make sense for one person on the board to conduct the whole thing. If you have a larger board, the Human Resources committee should drive this process or an ad-hoc task force. Ideally, more than one person provides input about what will be shared with the Exec. Additionally, the meeting should be conducted with at least two representatives from the board. This communicates that the feedback is coming from a united front. At the same time, it’s not a huge group making the ED feel ganged up on. 

  • What are the preferred outcomes? 

Conducting an executive evaluation is not just about checking something off a list. It’s about deepening relationships, providing opportunities for growth and improvement, advancing the work of the organization, and respecting the staff leader of the nonprofit. Going into the process with this mindset ensures a positive outcome. 

Once you think through these questions for your organization, you come to the matter of starting the process. Often boards struggle here because they have not put any measurements or expectations in place. It begs the question – how do you evaluate someone when you haven’t really outlined their expectations? That’s a fair question. My recommendation is two-fold: 

  1. Start out as a two-way conversation, and
  2. Base the conversation on generally accepted executive competencies. 

Rather than going into the meeting with measurements and clearly defined deliverables, approach it as a conversation. Granted, it should be a conversation that both parties are well prepared for; however, it should be a transparent discussion. Acknowledge the fact that the agency has not had a system in place for evaluating the ED. Note that getting started is difficult, and you’re more focused on getting it implemented than ensuring a perfect process from the start. Share plans for improving it in the future. 

Base the conversation on general expectations of nonprofit staff leaders. This includes things like: 

  • Operational effectiveness
  • Team leadership
  • Community presence
  • Fundraising
  • Administration & Human Resources
  • Financial sustainability
  • Mission impact
  • Board of Directors leadership 

The unique needs of your organization may lead you to add something different or remove some of these categories. This isn’t an exact list, just a good place to start. Come to an agreement with the Executive Director on what items are relevant to their role. Both parties should take some time to think through the Exec’s performance in each category, documenting their thoughts. Then, for that first evaluation, it should really be a discussion where both parties compare notes and talk about any discrepancies. Document how the conversation goes, any action steps to be taken, and start planning for next year. 

As you prepare for the future, think about how this process went. What were the positives and what should be improved. Consider any concrete measurements that should be put in place for the coming year. Be sure to tie measurements to the big picture and strategies. Then communicate them to the ED right away, so they know what they will be evaluated on the following year. 

The last point that I would like to make on implementing an executive evaluation is to keep the conversation high level. If the ED made a mistake 6-months ago, it should have been addressed at that time. Did they learned and grew from the experience? Then there is no need to include it in the year end evaluation. If anything, they have shown that they are coachable and growth minded. The evaluation is an opportunity to look big picture at the effectiveness of the Executive Director and their role in advancing the mission of the organization. 

A journey of a thousand miles starts with the first step. Initiating an executive evaluation process is an important first step in ensuring effective leadership and organizational success. Approaching the task with the mindset of having a conversation, rather than needing to have a formal process can help to get the ball rolling. By establishing a framework for comprehensive discussions, feedback and support, boards can foster a culture of continuous improvement and promote the long-term sustainability of their organization. 

Every nonprofit is different and has unique needs and challenges. Email me at Kim@Athena-CoCo.com, or schedule a Discovery Call if you would like to discuss how to get the executive evaluation process started for your organization. 

Kim is a mom, lover of being active and the outdoors, and helper of nonprofit leaders.
kim@athena-coco.com 

 

Should You Start a Nonprofit?

You see a problem. It could be for a specific group of people, for a community, or for the world. Or maybe a personal challenge leads you to want to help others in your situation. You have an idea for a unique and creative way to make the world a better place. And you think you might want to start a nonprofit. What’s next? 

A Forbes article states that 50% of nonprofit organizations will fail within their first year. A lot of energy and emotion goes into launching an organization. Before you make the decision to travel down this path there is a lot to consider. 

Who else is addressing this problem?

An unfortunate commonality with nonprofits is that there is a lot of duplication. Many agencies serving the same cause in a similar way creates confusion for clients/constituents, donors, partners and the community. It leads to unnecessary competition between organizations that could probably do more good by working together. 

As you are considering starting a nonprofit, you first need to get crystal clear on what problem you are working to solve. Then look around and see who else is working to fix that problem. Check out their methods for addressing the problem. Is your idea similar to some other agencies out there? If so, you may be better off trying to partner with those agencies and work together. However, if after researching you find that you have a unique and creative way to address the problem, you may want to move forward. 

What is your commitment level? 

Starting a new business is a LOT of work. When you start a nonprofit organization, you have the additional challenges of extra government paperwork, developing and leading a Board of Directors, and fundraising. Not only that, oftentimes the founder ends up contributing a significant amount of personal time and financial resources in order to get the agency up and operating. Before launching a nonprofit, critically evaluate how much time and money you are motivated to put into it. 

It’s definitely worth noting that not all nonprofits require significant personal investment. Those with narrow scope and size can be launched with less backing and involvement. Which brings us to the next question you will want to consider. 

What is your long game? 

Nonprofits are often started as a result of a loss or trauma. For example when a child is lost, family and friends come together to channel their grief and desire to “do something” to honor their loved one. This is a great reason to start a nonprofit organization. It provides an instrument for managing grief, directing energy and routing funds. It can raise awareness and give people an opportunity to feel a connection to the child. Often these projects have a shorter lifespan. They serve their purpose and at some point are put to rest. And that’s okay. 

In other cases, the loss leads to something much bigger. Susan G. Komen is a great example. Susan’s sister Nancy started the organization in memory of Susan, with the purpose of ending breast cancer. Nancy had a long-game vision in the promise she made to her sister. 40-years later the organization is still working to eliminate breast cancer through research, education, screening, and treatment.

So, what’s your long game? Is your idea something you want to expand, and have live on long after you are gone? Do you want to keep it small and local? Your long-game can change as your organization evolves. Formulating a clear vision for where you want to take the agency can help you think through the previous question of your commitment level. 

Who will want to support your cause? 

Lastly, think about who will want to come alongside you and help you advance the work of your agency. Any successful nonprofit requires community engagement. Volunteers are needed to govern the organization as the Board of Directors. Donors or funders are almost always needed to provide operational resources. And community volunteers are generally needed to deliver programming or services, and to help with fundraising. 

When starting a nonprofit, one of the first things I always recommend is that the founder(s) get out in the community and talk to people about the problem and their solution. From there they find out who is excited about the work. Those are your potential donors and volunteers. If no one is interested in the project, it might not be a very good idea to go the nonprofit route. 

This article might sound like I’m trying to talk you out of starting a nonprofit organization. That’s not entirely true. What I really want to do is make sure that you make a good decision for you, for the people you want to serve, and for the nonprofit sector. This is another good article to read as you’re considering if the nonprofit model is right for you and your cause. 

Thinking about making the world a better place with your great idea? I would love to visit and talk through your options. Email me at Kim@Athena-CoCo.com, let’s connect!

Kim Stewart

Kim is a mom, lover of being active and the outdoors,
and helper of nonprofits and small businesses.
kim@athena-coco.com

Board Expectations

A few weeks ago I wrote about the challenge of finding volunteers to serve on boards of directors. In that article I mentioned that an important component in finding and recruiting board members is clarifying the expectation your organization has for them. After all, it’s hard to commit to something when you don’t know what it entails. Clarifying your agency’s board expectations is a foundational piece of developing a strong board. 

An organization can set any expectations that are relevant and important to them. They can be as simple or as complex as needed. Personally, I like to outline board expectations into these seven categories:

  • Attendance
  • Executive Director Support
  • Community Conduit
  • Fiduciary Governance
  • Intellectual Contributions 
  • Mission and Outcome Focus
  • Fundraising and Storytelling

Organizations that take the time to clarify each component for their board will have a great tool for recruiting, managing and accountability. Because of the unique nature of nonprofits – where the Executive Director often directs the work of the board, which is also their boss – this tool can be crucial to ensuring that the board can hold itself accountable. Let’s explore each of these categories and what can be included. 

Attendance

In the simplest of terms, attendance means showing up to board meetings. You may want to set a percentage of meetings they are expected to attend. It is a good practice to have set board meetings, held on the same day each month and at the same times. 

Frequency of board meetings should be set based on the needs of the organization and the work of the board. That being said, I generally recommend monthly or every other month. When a group meets less frequently it can be difficult to maintain engagement and connection. However, sometimes geographic constraints or the work of the organization may require fewer meetings. In those cases it might make sense to have longer meetings. 

In addition to attendance at board meetings, an organization may want to set expectations around attending committee meetings, special events, trainings, programming and more. Some agencies require a minimum number of hours from their volunteers each month. 

This category is also where you can define your board terms. Spell out when terms begin and end, how long they are, the ability to serve consecutive terms, and maximum length a board member can serve.

Partner with Executive Director

Running a nonprofit is a big job! Supporting the Executive Director is one of the most helpful things a board can do. When given projects or tasks it should be an expectation that the board member executes them completely and on time. Often if a board member doesn’t follow through, that work falls on the Exec. That puts the Exec in a very awkward position of having to hold one of their bosses accountable or just doing it themselves. 

Secondly in this category, there should be the expectation that the board drives the strategies of the organization. The more that the governance volunteers can focus on this aspect of the organization, the more the Exec can focus on the operations. Looking outward and focusing on strategies to advance the work of the organization is an expectation of the board. 

Lastly, no one knows everything or can have their finger on the pulse of what is going on in the community all the time. Board members should be available to the Exec when they need advice, insight or special expertise. Volunteers must give their input with the best interest of the organization as their top priority.  

Conduit to the Community

Having a board of directors multiplies the number of eyes, ears and voices in the community on behalf of an agency. Board members should be out, seeing what is going on in the community related to the work of the organization, listening to what people are saying about it, and sharing about the outcomes and impact. In addition, they should be bringing information back to the board to discuss and help with decision making and strategizing. 

Some organizations utilize their volunteers to promote their work. This can involve expectations around attending networking groups or service clubs, or even hosting house parties to educate the public on the organization. Other agencies have their board submit names for “friend raising.” This involves bringing more people into their circle of organizational advocates, to nurture them into volunteers, donors, or even future board members. There are organizations that require a board member to secure their successor before their term expires. These are all options to consider when developing expectations.

Fiduciary Governance

This component is a little more tricky to quantify and measure. The board is responsible for the financial and legal integrity of the organization. Generally the Treasurer takes the responsibility of reviewing financial statements and interpreting them for the larger board. The expectation of the board is that they make decisions that are in the best financial and legal interest of the organization. It is expected that they led from a place of selflessness. 

Intellectual contributions

Every board meeting should include some sort of generative discussion. It is best if the discussion is around strategy and organizational advancement; however, sometimes the input of volunteers on operational topics is important. That being said, board members should be prepared for discussion and ready to contribute their thoughts, perspectives and ideas. 

Not everyone is comfortable sharing in large groups. That doesn’t mean that they don’t have valuable input. Some volunteers may submit their thoughts in writing after they have had time to process the discussion. When measuring board effectiveness it can be important to recognize and honor these differences in contribution styles. 

Mission and Outcomes Focused

Every governance volunteer should take the time to understand the critical social issue that the organization is working to address; as well as the unique way they are tackling it. They should be familiar with and support policies. And they should understand the organization’s needs. 

The staff (whether paid or volunteer) are responsible for the operations and program/service delivery. It is the board’s job to make sure that the programs/services are fulfilling the mission. They are the ones who need to be driving the measurement of program impact and connecting it to the purpose of the organization. 

Lastly in this section, the board is responsible for ensuring clarity around the values of the organization. Clarifying values helps with decision making, recruiting staff and volunteers, and communicating who you are and what you do. Board members are expected to be the ones setting the example of how the organizational values look in action. 

Fundraising and Storytelling

Board members should be expected to give a personally meaningful financial donation to the organization. This is important for so many reasons! Why should anyone else give to a nonprofit if the governance board doesn’t feel strongly enough about the cause to give? Why would a grantor award a funds to an organization that doesn’t have a passionate and committed board? It must start with the board. 

In addition to giving, board members should be expected to use their network, connections, and circle of influence to advance the organization. This includes asking them to contribute. I believe that this is one of the most valuable aspects of the nonprofit sector. They are compelled to tell people how they are making the world a better place and asking them to come alongside and help. 

This can be challenging for young nonprofits, or organizations that attract volunteers who have never served on a board. That’s where the phrase “personally meaningful” or “personally significant” can be helpful. An agency may set their initial expectation at $10/month, then ask those with greater means to consider an additional personally significant contribution. Special events can be a good place for volunteers to practice their storytelling skills and work on “friend raising” before they advance to fundraising. 

If the cause is important and the organization is making a difference, every board member needs to be giving. Period. 

You may notice that none of this is about daily operations. That’s because that is not the board’s role. However, with very young or very small nonprofits, there can be some cross over. As you develop your board expectations, I recommend you keep them focused on the governance side of the organization. This keeps it clean, and if/when the organization grows, the board will know what is expected of them in their role. 

Once you and your board have established their expectations, create a tool for tracking. Quantify as much as you can and put it in a spreadsheet. Put each board member’s name down the side and regularly evaluate how everyone is doing. At a minimum the board president/chair should look at it quarterly. You can also include it into your board packets. That way everyone knows where they stand and they can help hold each other accountable. One less awkward job for the Exec to do! 

Does your organization need help establishing expectations. These can be challenging conversations. It can help to have someone from outside facilitate the discussion. If so, I would love to help! Email me at Kim@Athena-CoCo.com to learn more. Let’s connect!

Kim is a mom, lover of being active and the outdoors,
and helper of nonprofits and small businesses.
kim@athena-coco.com

Nonprofits Fail – Here’s Seven Reasons Why by Tracy Ebarb

Why Do Nonprofits Fail? Does it seem a bit crowded in here?

A few years ago, during his presidential campaign, Dr. Ben Carson made the statement that 90% of nonprofits fail within a few years. While Dr. Carson’s statement was largely hyperbole, it did call to attention the alarming rate of both nonprofit failure and ineffectiveness. The real data from National Center on Charitable Statistics reveals that approximately 30% of nonprofits fail to exist after 10 years, and according to Forbes, over half of all nonprofits that are chartered are destined to fail or stall within a few years due to leadership issues and the lack of a strategic plan, among other things.

There are currently over 1.5 million tax exempt non profits in the US.

In Texas alone, there are about 106,000 non profits, about 1 for every 4000 people.

In recent years the “overhead problem” has begun to be addressed. The irony is that we did this to ourselves in the first place. Instead of clearly communicating WHY an organization needed money to be invested in overhead, virtually all nonprofits educated donors that money spent on overhead was bad! We created that story by showcasing that operating on a shoe string budget was a badge of honor. However, when we do that we are actually perpetuating and encouraging a ‘race to the bottom’ mentality where success is measured by how little we spend, not by the impact we have.

Time and time again, we see research that shows the organizations that invest in technology, talent, and professional development end up making greater gains. The old adage from the for-profit world, “You have to spend money to make money”, is widely accepted — but not so, in the nonprofit world. In The Rise and Fail of Charities in the 21st Century, Elsey points out that “Nonprofits should not be having a conversation with donors about how little they are spending. They should instead be speaking to them about how much impact they are having relative to their budget….It should not be a badge of honor to be proud of operating on a shoestring budget.”

Remember, when you stick with the “Tin Cup” mentality and fear asking for an investment —you’re missing an excellent opportunity to articulate to donors the reason you need them and their funding and how they are helping to increase impact.

Also, don’t forget – 501c3 is a tax status, not a business model.

7 REASONS WHY NONPROFITS FAIL

  1. Empty Optimism – or Pie in the Sky Dreams (without the proper ingredients to bake a pie)

    I’ve seen some of the best, most needed (in my view), and earnest efforts falter and fail because the leaders simply did not accurately calculate the amount of support that would be available and the alliances and partnerships that they would need to support their humble beginnings. In other words – they lacked a sound business plan upon which to build a platform for success. The old saying ‘to fail to plan is to plan to fail’ is so very, very true.

  2. Values Vacuum – or Poor Organizational Development

    Healthy organizations establish core values that guide the way leaders and staff do business, and how they deal with each other and with outside people and groups at every point of contact. It is far too common for autocratic and self-focused founders to establish one core value: “do as I say.” These nonprofit heads find it very difficult to transfer authority or to share the limelight and leadership with an empowered team. There is little internal trust, and insufficient values to guard against abuses of power, privilege, and people. It is also an environment in which many unethical and even illegal practices can flourish, and often do. These organizations frequently fail in the first generation, and almost never thrive when the leader with all of the chips finally cashes them in.

  3. Competitive Blinders – or ‘we’re unique, there’s no one like us in the market’

    Nonprofit leaders and ministry executives are frequently insular and blind to the external changes and “market” forces that will be their undoing. Often it’s because they are so focused on the needs and crises around them. Or they cannot imagine anyone or anything that would deter them from their righteous ends. And charities are often unfamiliar with, or even repelled by, the notion of “competitors,” so they don’t recognize true rivals or adjust to compete. There is no ability to adjust programs to match changing situations, culture, or competition and to compete for donations, volunteers, media coverage, or program space. This blindness also manifests itself in the lack of research done to determine if there are other Organizations doing the same thing, with basically the same goals. This along with a self-righteous notion that “we” can do it better, or the right way, when cooperation, even merging with another Org would be so much more efficient.

  4. Iced Innovation – or the notion that ‘our website is good enough for now’…

    Nonprofits must Embrace Technology
    Mobile access, mobile devices and the experience on the internet has changed user expectations and has also provided nonprofits with a more level playing field.
    Take a look at the businesses that have grown quickly over the past years, innovative companies which are “disruptive” or at least are very different from doing “business as usual.” Apple, Amazon, Netflix, Zappos. Or nonprofit organizations which leverage technology to deliver on mission, like DoSomething.org and donorschoose.org.
    Today’s donors are also today’s online shoppers. So your “competition” isn’t the other charity with a similar mission–it’s Zappos. Today (and tomorrow’s) donors are accustomed to finding and buying what they want, when they want it.
    Ask yourself this question: Is your organization set up to allow donors to find and give you what they want to give, when they want to give it? Now pick up your smartphone and see how easily and quickly (or not) you can find your site and make a donation– because they will not go to a desktop to make a donation or share their affinity for your cause, when the ability to do so is right at their fingertips. It’s what they’re used to.
    The good news is that this technology also makes the playing field for causes, more level. Just a handful of years ago, DRTV might have been the most effective way to reach a mass audience—but, due to expense, was only available to organizations with the largest budgets. Today’s technology allows any sized organization the ability to communicate, educate, and engage on a greater scale than
    ever before—at little cost.
    The emergence of the Internet and subsequent online innovations that have changed the world in many ways has made strikingly obvious a business truth that is actually timeless. If you do not innovate, you will disappear. If there is no adjustment of creative content, communications, or methods for new times and trends you will miss opportunities, and be judged as antiquated (and perhaps irrelevant). Creative presentation and original thinking buy you another look, enable you to capture attention in a crowded field, and present new ways for people to engage with your mission.

  5. Mission Creep or ‘yeah, we should do that too!’

    When a corporation goes beyond its initial product line and area of service, it’s called brand extension. In nonprofits, we call it mission creep, and because charities are in the business of changing the world, their leaders often cannot seem to stop themselves from seeing every need as a call. The result is too many directions, no mission clarity, diffused expertise, and donor confusion.

  6. Misplacing Priority #1 – or forgetting who the ‘real boss’ is

    At the end of the day, for nonprofit organizations – Money is more important than Mission. Nonprofits exist to serve and to meet needs on a global scale, and we care deeply for the causes we embrace, often to the detriment of our funders. A successful nonprofit knows that their #1 Customer is their donors, period. Without the donors, there would be no impact, no people served, no mouths fed, no backs clothed. Those we serve are important, but if we really want to have an impact, we must take care of our donors first, we must make sure that our programs are designed to give our donors an opportunity to fulfill the goals they have for their philanthropy, and then constantly communicate to them the impact their dollars are having. And when it comes to taking care of donors, relationships, personal relationships are KING! No fancy CRM or automated gift response mechanism will ever trump a personal relationship.

  7. The Data Conundrum – or the fear of information

    Although many organizations have begun measuring every possible statistic related to fundraising efforts, few have enough data to guide planning, analyze management systems, or redirect underperforming programs or communications. This may be because of the pressure to reduce overhead, or because the entrepreneurial spirit of charity leaders causes them to fly by the seat of their pants, to trust their own (often flawed) instincts. Also factor in the age-old truism – “there’s paralysis in analysis” – there’s a real and present danger for Organizations who dive too deeply into the studying the data on their donors at the expense of personal relationships.

Common mistakes of failing nonprofits fit into the categories below:

  • Not Having a Qualified Leader
    A leader of a nonprofit needs the following traits: A head for business, Desire to do good, Sincerity, Confidence, Goal Setting, Organization Skills
  • No Website Or Poorly Designed Website
    Make a user-friendly website, avoid bulky language, make sure the contact information is accessible & accurate. Have strong compelling content. A rule of thumb is make sure nothing is further than “two clicks deep”. Display your mission in a clear area. Have a clear button to donate on every page.
  • Poor Planning and Record Keeping
    No plan of action. A nonprofit is much like a business. There has to be a clear plan to get funding to stay afloat.
  • Poor Accounting and Money Management
    Building a solid capital structure is a key, Keep Strict Money Records, File all Documents & Forms Correctly and on time, Set Aside Seed Money, Spend wisely Evaluate Wants Versus Needs
  • Marketing Only to Large Donors and Not Thinking Smaller Donors are Just As Important
    Small donors are just as important as large donors. Don’t expect donors to maintain or increase the size of their contribution each time they give. Thank every donor in every circumstance they donate no matter how much they give
  • Nonprofit Doesn’t Mean Tax Exempt
    Know your tax laws and file your taxes.

Ultimately, the real reason nonprofits fail is because they shouldn’t have existed in the first place.

7 Reasons Why Nonprofits Fail was written by Tracy Ebarb, Veteran Fundraiser and the National Association of Nonprofit Organizations & Executives’ International Director. Tracy’s journey in the nonprofit world began in the early 80’s through his service on Church Staff as Youth Minister, Associate Pastor, Church Administrator, Director of Development and Stewardship and Senior Pastor. Tracy joined the renowned consulting firm of Cargill & Associates in 1998, designing and conducting over 60 Capital Stewardship Campaigns raising over $50 million dollars. As an independent Consultant, Tracy has traveled extensively overseas raising funds and working to develop humanitarian projects in the African nations of Sierra Leone, Malawi and Zambia, and the Central American nations of Nicaragua, Haiti and Honduras. As well as consulting and developing Capital Fundraising Campaigns in over 75 churches and nonprofits across the US. Until recently, Tracy has guided the International Bowling Museum and Hall of Fame as the Director of Business Development. He has recently accepted the position of Senior Counselor at Development Systems International.

Ten Indicators You Could Benefit from a Business Coach

Here we are in 2022! Welcome. 

The pinning up of a new calendar leads many to envision a bright new future for themselves. And anyone who has ever set a New Year’s resolution knows that change takes more than just dreaming of what could be. It takes planning, action steps, accountability, and hard work. 

Today’s article is about the value of engaging a Coach to help you get where you want to go. We’re going to explore many of the reasons why a Business Coach might be a good investment for you in 2022, and what they can help you with. If you have considered getting a Coach, reading this article is a great step in your contemplation. Let’s dig into ten reasons a Business Coach might be a great option for you! 

1. You set great goals, but regularly fail to meet them

Is it you or is it the goal? Are you creating goals based on the expectations of others? Are you lacking motivation towards the goals all together?

Sometimes goals are impressed upon us, and we have no choice but to put forth our best efforts to achieve those goals. Other times we set goals for things that we really truly want to accomplish, but then nothing happens. Either way, there are likely underlying reasons why goals are not being met. A Coach can help you peel back the layers to understand where the barriers are coming from and how to address them. 

2. You feel like you have stagnated/imposter syndrome

As we grow and advance in our careers, it’s common to get to a point where we question our legitimacy. Do we really deserve the position we hold? Are our skills suited to the role we’re in? Coaching can help you process how you’re feeling, separate feelings from facts, acknowledge your skills and expertise, and grow professionally. 

3. Your work-life balance is not balanced at all

If everything feels like it’s out of whack, it might be time for a change. When a professional or career change needs to be made, it’s not uncommon to completely throw ourselves into work, to avoid thinking about the change. It might also be time for a change if you have no choice but to spend an excessive amount of your time working or stressing out about work. 

A Coach can help you take the emotion out of your situation. When we’re overworked and over-extended, it can be difficult to separate reality from our overwhelmed mental state. Having someone process your situation with you will not only help you feel more sane, it will allow you to make rational, planful decisions. 

4. You want a career change

Many people come to a point in their life where they want more. More money, more flexibility, more impact, etc. What you decided to do for a career when you were 18 or 22 or whatever, might not be the right fit for you at this stage in your life. A Coach can help you suss-out what is important to you and get you moving in a direction that will be fulfilling and rewarding. 

5. You know you need to grow professionally

Growth can be difficult, and something we unintentionally avoid. Without knowing it, we can actively circumvent opportunities to grow, because in the back of our minds we know it will be easier to maintain the status quo. Additionally, we all have blind-spots. No matter how great we are, there are always opportunities to improve. However, without help, we don’t necessarily see them. 

A trusted Coach can help you move past your self-imposed barriers to development. They can uncover your growth opportunities and work with you to create a plan that will allow you to evolve and thrive. 

6. You need better accountability

No one likes to be held accountable. If you’re the one in charge of your own accountability, it might just not happen. Think about most diets. No matter how committed a person is to losing weight and creating a healthy lifestyle, it’s difficult to stick to the plan. 

Many people find it very helpful to engage an accountability partner to hold their feet to the fire. By sharing your goals and plans with a Coach, they can keep you on track. They will remind you of why you set your goals, and the necessary actions you have committed to in order to reach those goals. 

7. You struggle to work “on” your business

The everyday grind can easily become the thing that keeps you from growing. When all of your attention is focused on the day-to-day operations, you will never think bigger, explore options, and dream about the future. Dedicated time with a Coach gives Business Leaders the time to work ON their business. This might be in the form of strategic planning, exploring new opportunities, evaluating operations, assessing how resources are deployed, and much more! 

8. You need someone to talk to about your business and career

It’s lonely at the top! If you are the leader of your business, there isn’t a coworker you can go to who understands the challenges and pressures you face. Some people find this support in other CEOs or leaders. Others like to maintain a high level of privacy about the things keeping them up at night. A Coach can be that confidant that you need at the top. 

9. You want to save time and money

Without a sounding board, leaders still come to great conclusions on their own. However, it usually takes much longer than if you were to bring someone in to help you process your thoughts and ideas. And, as they say, time is money. 

A Business Coach helps you process through difficult decisions, crucial conversations, problem solving, and more. Otherwise, these are often topics that are put off until it’s absolutely necessary to deal with them. By dealing with them in a timely manner, you will save yourself frustration; as well as time and money. 

10. You need ideas!

An outside perspective can help you generate ideas that you wouldn’t have come up with on your own. Business Coaches tend to have rich experience in the business world and can provide creative solutions to try. When you feel like you’ve tried everything, it might be time to try visiting with a Coach.

These are just a few of the reasons it might be a great idea to engage with a Coach. Most Coaches (myself included) provide a free Discovery Call, where you can discuss your unique situation and see if Coaching is right for you. This is also a good time to interview the Coach to see if they are a good fit for you, your style, and your business.

If you would like to explore how a Business Coach could help you, schedule a 30-minute Discovery Call. You can also email questions to me at Kim@Athena-CoCo.com.

Kim Stewart

Kim is a mom, wife, lover of being active and the outdoors,
and helper of small businesses and nonprofits.
Kim@Athena-CoCo.com

Everyone Should Have a Budget. Period.

Over the last year and a half, as I’ve been meeting and speaking with small business owners and nonprofit leaders, one thing has amazed me. I’m always surprised to learn how many businesses do not have a budget. Either they are small enough that they don’t see the point. Or they have never had one, so why start now? One for-profit business told me that their entire purpose is to make money and who needs a budget for that? Maybe most concerning is when the leader has a strong understanding of the finances, but they just keep it all in their head. 

Allow me to explain why I believe everyone needs a budget. This goes for nonprofits, for-profits, and even your home finances. A budget is simply a plan; with numbers. Most business leaders, whether they write it down or not, have a plan for their business. They know that they want to grow, maybe add a staff person, possibly expand into new markets, etc. In order to do all these things and more, you need a plan. And more specifically – you need a budget. 

Why Avoid Budgeting?

It seems that many leaders avoid the budgeting process because of a fear of numbers. People decide early on that they are “not good at math.” And that leads them to steer clear of anything with numbers. This is why it can be helpful to think of a budget as a plan that you assign numbers to. With modern technology, a simple Excel or Google Sheets workbook can be designed to do all the math for you! If that’s too techy for you, a piece of paper and a calculator will do the trick too. 

Another reason leaders disregard budgets is that they do not want accountability. A budget tells you what you should be bringing in and what you should spend. That creates stress and frustration for some. Keeping in mind that you’re the boss of your business can be reassuring. YOU are the one holding yourself accountable! 

Along the lines of accountability, people will forgo a budget because they think they need to be able to predict the future. Meteorologists can’t do that, and neither can you. Fortunately, no one actually expects that of you. However, based on your knowledge of your industry, of your business, and of trends, you CAN be expected to make educated assumptions. If you’ve been growing steadily for 3-years, it can be reasonable to expect that trend to continue. If you’re in a more volatile industry, you might have to work harder to see trends, or plan for ups and downs. It’s not predicting the future, it’s developing a plan based on your expertise. 

Creating and following a budget will empower you in the following ways:

  • Making sound decisions
  • Educating you on what is really going on in your business
  • Helping you control your spending
  • Identifying problems
  • Being proactive

Making Sound Decisions

Business leaders make decisions every day. Everything from the epic to the mundane. Your ability to make really good decisions will likely determine how long you stay in business and how successful you will be throughout your career. Fortunately, you have at your disposal a super-power-like tool that can help you to make great decisions. And, you guessed it, that tool is a budget. 

Think you need to add a staff person to improve production? A budget will tell you if and when you will have the finances to make that addition. Thinking about expanding a product line? Your budget will tell you if that’s a good idea or not. Want to give raises to your amazing employees? A strong understanding of your revenue and expenses will make it clear when and how much will be appropriate and responsible. 

If nothing else, the process of creating and monitoring a budget will give you a strong understanding of where your money is coming from and where it is going. With super-powers like that, confidence in your decision making abilities will go through the roof!

Educating You on What’s Really Going On

As stated above, a budget puts your finger squarely on the pulse of your money’s comings and goings. It will tell you which product lines are kicking butt and which ones are under-performing. The amount you spend on staffing will become crystal clear; not just in terms of salaries, but also taxes and benefits. You will understand the true cost of doing business. You can even break it down so you know how much it costs to produce each item or service you sell. 

Over time you will be able to see if your business is going in a positive direction or a negative one. As you develop your budget you will be able to see how things look for your year. From there you can make decisions that can help make your year look better. If your budget for the year doesn’t show revenue covering expenses, you know this up front and have the ability to change plans. You can also build-in decision-making check-points. For example: If things are still trending up after the first quarter you may want to plan for additional investments. 

Helping You to Control Your Spending

If you are not tracking your expenses, you are definitely losing money. There’s an old saying: What gets measured gets managed. It might not be much. A few dollars here, a few there. Not knowing where your money is going can really add up. A great example is the daily coffee many people indulge in. Even if you go econo-coffee from the local convenience store, this likely amounts to $5 to $10 per week. Left unchecked, that’s over $500 a year! What would it look like if you saved or invested that money instead? 

If a daily coffee is important to you, keep it in the budget. This is not intended to anger the coffee drinkers! The purpose of a budget isn’t to take away things you need or really want. Rather, it shows you where your money is going. You are likely spending money without realizing how quickly it adds up, or considering what you can do with that money with a little bit of planning and intentionality. A budget brings bad habits to light and allows you to do something about them.

Identifying Problems

In addition to teaching you what you are spending money on, a budget can help you find problems. This is how embezzling is discovered! Does something seem off, but you can’t put your finger on it? The power of a budget will help you figure it out. By comparing the amount that should be coming in with the actual revenue you can find discrepancies and dig in. If spending seems off, your budget will help you root out the source of the added expenses.  

As this suggests, it’s not enough to just create a budget. You have to put your eyes on it. A monthly review is best. Once a month look through and see if your actual revenue and expenses are on track with the plan you created. If so, do a little happy dance! If not, you will be able to make decisions that will get you back on track. (This monthly comparison also allows you to monitor changes in trends so you can make great decisions.)

Being Proactive

Finally, a budget gives you the power to be proactive about the future of your business and your life. Whether this is in the area of saving for emergencies or planning for your retirement, a budget makes saving possible. A survey from Bankrate.com revealed that over 80% of people are not saving enough for retirement and 20% are not saving anything at all. 

A mistake often made is that people “plan” to save “whatever is left over” after all expenses are paid. As you may have guessed (or experienced), that’s not a plan at all. With that approach, nothing will ever go into your savings. And when there is an emergency, your business may not survive. By putting together a budget, and planning to save for emergencies and retirement, you are much more likely to invest in your future and the future of your business. By including ALL of your expenses in your budget, you will know what it really costs to run your business and support your life. 

Numbers do not lie. They are not there to make you feel good or feel bad. Using a budget makes you knowledgeable and in control of your business and your life. Wield it as such. 

I am not necessarily a “numbers person.” But I do love a good plan and a solid spreadsheet. I also love making good decisions with as much information as possible. This is why I’m a budget superfan! If you are interested in receiving a budget template, email me at Kim@Athena-CoCo.com. I can also help you to transfer your plan into numbers and set you up with a budget that works for YOU. Let’s connect!

Kim Stewart

Kim is a mom, wife, lover of being active and the outdoors,
and helper of small businesses and nonprofits.
kim@athena-coco.com

The Problem with SMART Goals

SMART Goals

Here we are! Summer is winding down, kids are back in school, football is in the air and crisp mornings are telling us that fall is almost here. Mother Nature is about to switch out her palette of brightly colored flowers, grasses and trees for the more muted earth tones that come from the changing foliage. I hear many people say that fall is their favorite time of year. And who can blame them! 

In addition to the relief from the heat of summer and the beauty that comes with fall, I have another theory on why we all love fall so much. With fall comes a return to normalcy. We get back into routines. And it gives us a chance to dust off goals and projects that got lost in the busy-ness of summer. It’s similar to New Year’s Resolutions, but without all the hype and dead-of-winter-gloom. 

As we refocus our attention on our goals, I thought it would be a good time to talk about the issue I have with SMART Goals. Before I do that, I want to give credit where credit is due. Many of you have probably heard of SMART Goals and possibly used them in planning. It’s been around long enough that we may forget that someone originally coined the phrase and started using it as a framework for goal setting. 

SMART Goals are coming upon their 40th birthday this November. Happy Birthday, SMART Goals! George T. Doran is credited with originally writing about the acronym. George was a consultant and Director of Corporate Planning for Washington Water Power Company in Spokane. He published a paper called “There’s a S.M.A.R.T. Way to Write Management’s Goals and Objectives.” You can read the original article here if you would like to continue your history lesson. 

SMART Goals

In case you are not familiar with this concept, here’s a brief overview. The letters serve as an acronym for five elements that go into setting good goals. The original letters represented the following word/concepts: 

  • S – Specific = area for improvement
  • M – Measurable = quantity or progress indicator
  • A – Assignable = who will be accountable 
  • R – Realistic = reality check on whether the goal is achievable 
  • T – Timely = when results will be achieved 

As with many acronyms, the words have changed a little over time. In this case the two words that have gone through an evolution are the “A” and the “R”. In today’s application the “A” usually stands for Achievable or Attainable. The “R” fluctuates between its original word and Relevant. These are good changes. It has allowed the system to be used in many different areas of life, rather than just applied to the business world. 

As for the “R”, I’m fine with either Realistic or Relevant. When coaching a client on their goals, I prefer to use Realistic. It leads to some really good conversations about how the person is going to make their goal a reality in their life and how the changes will fit with everything else they have going on.

The problem I have is really with the “A”. Set right in the middle of the acronym, it has so much potential! Unfortunately, all the words that have been assigned to the “A” fall short of really helping people reach their goals. Let me give you an example.

The Problem with the “A”

I’m going to use weight loss, because it’s an example many people can relate to. If I want to lose weight I can set a SMART Goal that states something like this:

I will lose 5 pounds in the next 8-weeks. 

This statement fulfills all the requirements of the SMART system:

  • S – Specific = area for improvement = lose weight
  • M – Measurable = quantity or progress indicator = 5 pounds
  • A – Assignable = who will be accountable = me!
  • R – Realistic = reality check on whether the goal is achievable = definitely achievable 
  • T – Timely = when results will be achieved = 8-weeks

Do you see the problem? Nothing changes by simply stating that I’m going to lose 5 pounds in 8-weeks. Wishful thinking will not make this goal happen. Even if you change to the more modern “A” words. The goal is achievable and attainable, but it’s still missing something. 

We need some movement or change in order to reach our goals. We need to do something different than what we’ve been doing. Otherwise everything stays the same. The evolution of SMART Goals acronym that needs to happen next, is the “A” needs to become Action. What is the Action that is going to lead to the outcomes we want? 

In the example above, adding action makes all the difference. And the more specific, the better:

I will lose 5 pounds in the next 8-weeks, by riding the exercise bike 4 days a week for 30-minutes, and eliminating late-night snacking. 

This is a goal that I can hold myself accountable to! I am crystal clear on the behaviors I will be changing in order to reach my goal. As far as the words we are sacrificing, Achievable and Attainable are both addressed when we consider whether or not the goal is Realistic. This new structure gives people the power to create goals that will take them where they want to go. 

As you pull out your sweaters and sip on your pumpkin spice treat, consider what a great time this is to refocus on your goals. Hold them up against this new SMART system and make sure they include the Action that will move you forward. 

I love helping people clarify, strategize, and achieve their goals. Email me at kim@athena-coco.com to schedule a free 30-minute discovery call if you are interested in setting and reaching your goals!

Kim Stewart

Kim is a mom, wife, lover of being active and the outdoors,
and helper of small businesses, nonprofits and leaders.
kim@athena-coco.com

Strategic Plan vs Operating Plan

Planning is everything

Everyone thinks they need a Strategic Plan. And sometimes they do. But not always. Often what an organization really needs is an Operating Plan to effectively drive their work. This article will share when a Strategic Plan is appropriate, when an Operating Plan is a better option, and what a solid Operating Plan looks like. Let’s dig in. 

Strategic Planning

Strategic planning is an organization’s process of defining its overriding direction for achieving its mission or purpose. A business uses this process to make decisions on how it will allocate its resources to pursue their strategies. 

The general outcome of a strategic planning process is a Strategic Plan. This can be anything from a one-page visual to a binder full of documents, information, and goals. The trap many businesses fall into is believing that the point of strategic planning is to get to the Strategic Plan. In reality, the most important part of the process is engaging stakeholders, volunteers, constituents and staff in the activity of examining the organization. 

Gathering information and input from multiple sources ensures a business or organization is staying relevant and on track for fulfilling its purpose. Through this process leaders learn what is important to the community, their customers, and those people closest to the products or services of the business. In order for a strategic planning session to be effective, leaders must be open to change and willing to let go of the past. Otherwise, there is no reason to go through the work of strategic planning. 

Another pitfall of strategic planning is to create a beautiful plan, then leave it sitting on a shelf or in a drawer. Again, if you are going to go to all the work of strategic planning and then you don’t use it to guide the work of your business, you have just wasted a bunch of time and energy. This can also serve to disengage your most loyal allies. 

When Not to do a Strategic Plan

While the strategic planning process can be a very valuable tool for guiding your work, there are several reasons NOT to do it. 

  1. First and foremost, if done right, the strategic planning process takes a significant amount of time, energy, and money. If you do not have the time, determination, or funds to do it right, you are better off not doing it halfway. 
  2. A business that falls under the guidance of a parent organization probably does not need to go through a strategic planning process. Usually the parent organization sets the strategy. In that case, your operation is responsible for figuring out how you will execute those strategies for your service area. 
  3. A business that already has effective and relevant strategies in place does not need to go through the process. There’s no right or wrong answer to how often you should go through the strategic planning process. A general rule of thumb is every 3 to 5 years. If you are actively using your strategic plan and reviewing, the need for a new planning process will organically reveal itself. 
  4. When a business uses Strategy Screens (you can read more about this concept here), they go through the process of examining their strategies every time they are faced with an opportunity or challenge. Similarly to number 3, by using this system you will know when it’s time to go through a strategic planning process. It won’t be dictated by the cycle of the calendar. 
  5. As stated above, if leadership is not ready for the potential to make significant changes, then its probably not a good time to embark on a strategic planning process. This can happen because of egos, protecting turf, and special interests. In these cases, it doesn’t matter how fantastic a plan is, it’s unlikely to result in any real change. 
  6. Other reasons for not engaging in strategic planning include a lack of understanding of the purpose, lack of flexibility, lack of ability to follow-up and a lack of engaged stakeholders. 

Due to the significant investment it takes to do effective strategic planning, you want to be sure it’s the right option at the right time. If you decide that a strategic planning process isn’t right for you, it doesn’t mean you shouldn’t do some sort of planning. That brings us to the value of Operating Plans.

Operating Plans

Strategic planning focuses on how things have changed for your business over the past few years, what’s changing now and what might change in the future. On the other hand, Operations Planning looks at the way you will conduct business over the next year. If you have a Strategic Plan in place, your Operating Plan should be directly tied to it. For businesses that do not have a Strategic Plan, it might be even more important to develop an Operating Plan. 

I recommend some level of Operations Planning every year. The best time to do this is leading up to your budgeting process. A budget is simply a plan for your year, broken down into numbers. In order to put together your numbers plan for the year, you need to know what you will be doing. 

Since most people cannot predict the future, the best we can do is make assumptions about what will happen over the coming year. Then we make plans around those assumptions. Based on your expertise in your industry, you may predict growth, stagnation, or the need to add a new product or service. Taking the time to think through what will happen over the next year, you are able to put together realistic plans. Sometimes it’s appropriate to map out multiple plans. If XXX happens we will plan for YYY. If XXX doesn’t happen, we will plan for ZZZ. 

The next step in your Operating Plan is to develop the budget. With clear assumptions in place you can create the money story to support those plans. Whether you’re predicting growth, staying the same or changing products or services, you put your numbers in place in order to carry out the plans. This is an oversimplification of the budget process. If done right, that process involves a great deal of research, comparison, and give-and-take. That’s a topic for a whole separate article. 

Once you have your budget plan mapped out you can write your goals for the year. Done right, your operating goals for the year will keep you on track to meet your budget. And when tied to your Strategic Plan, they will keep you moving towards your mission or purpose. 

In addition to being tied to your Strategic Plan, annual assumptions, and budget, a well constructed Operating Plan will include the following:

  • Goals for the year – Spell out what you want to achieve over the next year. Define how your operations will be different at the end of the year. 
  • Action steps – Break down the goals into the steps it will take to get you there. Be specific and thorough. 
  • Accountabilities – Assign each step to one person who will be responsible for carrying it out. 
  • Due dates/Checkpoints – Set a due date for each of the action steps. A good practice is to set aside time at the end of each quarter to examine your goals, action steps and accountabilities. By checking in every 90-days you stay on-track and are able to refocus. 

As you develop your Operating Plans, you will want to run it by your stakeholders. This serves as a “reality check”. While you don’t want to turn this into a pseudo Strategic Planning process, you also don’t want to do your planning in a vacuum. Check the logic of your assumptions, goals and action plans. Not only will this ensure that your plans are solid, it will also garner confidence from your stakeholders, and make it easier to get budget approval. 

I really love the quote by Yogi Berra: “You’ve got to be very careful if you don’t know where you’re going, because you might not get there.” Whether you’re ready for a Strategic Plan, or an Operating Plan makes more sense for you, it’s best to know where you’re going.  

Need help with your Strategic Planning, Operational Planning or figuring out which is best for your business? Email me at kim@athena-coco.com to schedule a free 30-minute discovery call to get started creating the best plans for your business! 

Kim Stewart

Kim is a mom, wife, lover of being active and the outdoors,
and helper of small businesses and nonprofits.
kim@athena-coco.com