Age UK London Working for You 19 June 2017 Strategic Planning

1. Age UK London Working for You 19June 2017 Strategic Planning

2. What is Strategic Planning? • Why is it important/Benefits • Roles in Planning • Key Considerations in Planning • Planning Cycles/ Process /Major steps • Pre Planning - Looking Outside /Visioning/Mission • Goals/Objectives/Strategies • Tactical Planning/Structure of Plan • Budgeting • Monitoring & Evaluation • Action Planning • Resources, Summary & Review .

3. Strategic Planning Aims of Workshop • Importance of sound strategic planning and the role of strategic management in ensuring effective decision-making • Link between visioning, goal-setting and decision-making; • Role of strategic planning as part of the total strategic management cycle; • Role of the board in the planning process.

4. What is Strategic Planning? • A means of mobilising an organisation (everyone!) to get to its future. • Giving an organisation purpose and direction to engage meaningfully with the external environment – linking in to beneficiaries and funders. • Making priorities clear and what the resources should be concentrated on delivering • Usually on medium to long term (3 to 5 years) but is reliant on short term and has to be flexible .

5. Strategic Planning Why Planning is Important for Your charity • Competition and rapid change present many opportunities and challenges for Charities • A key concern is: “where should our charity be heading?” • How can we effectively manage change? • Charity Directors/Trustees must be change agents, and determine the future of the charity

6. Increased awareness of key issues & opportunities Establish reference points to measure results against Establish resource commitments & priorities Improved board-management/staff relations Stimulation of new business ideas Elimination of “management by crisis” (pro-active rather than re-active approach) Basis for continuity – sets direction despite changes in people or business environment Basis on which to evaluate board & management performance Benefits of Planning Strategic Planning

7. Strategic Planning Roles in Planning • Role of Board is Strategic Planning. 3-5 year span; set the vision, mission & broad goals for the charity, and objectives and strategies • Tactical Planning is staff responsibility – 1 year time span • Tactical Plan leads to budget – 1 year time span • Strategic Plan drives the budget

8. Strategic Planning Summary –Roles for Board and Management

9. Strategic Planning Key Considerations in Planning • The planning team • Individuals who understand the goals of the charity • Can contribute their own perspectives while considering the need for the Charity to move toward a shared vision • Communication • Key elements of plan to membership • Directors should “preach” to reinforce their commitment to the decisions made in the planning process • Employees role in implementing the plan

10. Strategic Planning Realities of Planning Strategic planning is about making decisions. • Requires time and commitment. • Involves research & information gathering. • Includes a plan to communicate goals & objectives. • Involves monitoring progress of implementation. • Refining /modifying the plan if necessary. • Recognise that the planning process is year-round. • Board & staff should be aware of their role

11. Strategic Planning Key Considerations in Planning • Adequate Pre-Planning – “Planning to Plan” • Identify what information is needed to develop a fact-based plan • Situation analysis and environmental scan • Scheduling and budgeting for planning • Ensuring the readiness of your Charity for planning

12. Strategic Planning Exercise 1 • As a group, describe the planning process that is used in your charity • What are the strengths and weaknesses of the planning process you are using? • Did you achieve what you had expected?

13. Strategic Planning The Planning Process – Major Steps • Pre-planning or “planning to plan” • Strategic planning • Tactical planning • Budgeting • Monitoring and evaluation

14. Pre-Planning Strategic Planning Tactical Planning Budgeting Performance Management Monitoring/Evaluating Results Updating/Modifying Strategic Plan. Pre-Planning ……… incl. Situation Analysis Operational For situation analysis and subsequent planning Key Components of the Strategic Management Cycle Strategic Planning

15. A Continuous Process SITUATION ANALYSIS VISION & MISSION STRATEGIC PLANNING SET STRATEGIC DIRECTION & GOALS PRE-PLANNING UPDATE & MODIFY PLAN ESTABLISH OBJECTIVES & MEASURABLES TACTICAL PLANNING, DEVELOP INTEGRATED ACTION PLANS EVALUATE RESULTS MONITOR RESULTS SET BUDGETS MANAGE PERFORMANCE Strategic Planning

16. Strategic Planning Pre-planning • Schedule, budget, location, facilities, dates • Review information needs for planning • Prepare environmental scan • Ensure readiness of Charity for planning • Who will facilitate the process?

17. Strategic Planning Strategic Planning • Where are we now? • Situation analysis • Where are we going or where should we be going? • Visioning • How do we get there? • Mission, goals, objectives and strategies

18. Best done before the planning session. Inside - SWOT: strengths, weaknesses, opportunities, threats. Outside - STEP: trends in society, technology, economy & finance Financial performance trends. Membership /service users issues. Services related issues Core competencies, capabilities and limitations Competitor analysis Members/users needs analysis Use financial statements, competitor surveys, member surveys, business periodicals Situation Analysis Strategic Planning

19. Strategic Planning Visioning The process of determining the ultimate goal for your charity. Characteristics: • Should reflect the values of the charity • Should be shared & supported throughout the charity • Should never be expressed in numbers • Should be positive & inspiring • Should be detailed enough to capture the imagination of the employees and harness their creativity

20. Strategic Planning Visioning Age UK Croydon aims to ensure that the needs of all older people are best met and to promote an understanding of their contribution, independence, dignity and status within the London Borough of Croydon

21. Strategic Planning Mission Describes how the vision will be achieved: • What does the organisation do? (Functions) • For whom does the Charity perform these functions? • How does the Charity go about performing these functions? • Why does the Charity perform these functions?

22. Strategic Planning Mission "The mission of Catholic Charities is to provide service to people in need, to advocate for justice in social structures, and to call the entire church and other people of good will to do the same”

23. Strategic Planning Goals • Should relate directly to and support the mission, and therefore, the vision. • Should represent key sub- components of the mission. Goals for all key issues, e.g.: • Financial performance • Market presence • Service delivery • Human resources • Corporate governance, democratic structure and regulatory compliance

24. Strategic Planning Objectives The milestones which must be met to achieve the goals. Characteristics: • S – specific • M – measurable • A – achievable • R – relevant • T – time constrained

25. Strategic Planning Strategies • Specify the methods to be used to achieve objectives & goals, and therefore the mission and vision. Are at “the heart of strategic planning”. They should: • Enable the Charity to reach its strategic goals and objectives. • Be clearly defined and understandable. • Be consistent with the vision & mission of the Charity. • Be “implementable”.

26. Strategic Planning Tactical Planning ( often known as the Business Plan) • Addresses specific responsibilities, time frames and resource allocation for programmes & activities needed to achieve the goals & objectives of the strategic plan. • Staff are (usually) responsible for developing tactical plans. • Specifies financial and human resource needs. • Links budget to the strategic plan. • One year time horizon.

27. Strategic Plan Purpose, UniquenessMission & AimsHigh level - Key ObjectivesContextResourcesOrganisation & ManagementActions/timed

28. Strategic Planning Budgeting • The allocation of financial resources for programmes and projects, as well as various aspects of the operation. • Basis for authorisation of specific expenditure. • Key measurement tool of organisational and staff performance. • Choose a method of budgeting suited to size & complexity of the Charity. • “Strategy drives the budget.”

29. Strategic Planning Monitoring & Evaluation of the Strategic Plan • To monitor progress of the Charity in meeting objectives and performance targets. • Ensures strategic plan becomes basis for the operation of the Charity. • Devise a tracking system, e.g. budget variance reports, monthly financial reports, review of key measurables (ratios), community orientated objectives, etc. • Board should regularly review, modify or develop policies.

30. Strategic Planning Monitoring & Evaluation of Strategic Plan • Regular review gives a plan credibility. • Good communication lets everyone share in the achievement. • Feedback information lays foundation for future planning, and continuation of strategic management cycle towards Charity’s vision of the future.

31. Strategic Planning Action Planning 2017-2020 • Services existing • New Services • Staffing /Management Systems • Management Information • Resources – frontline, development and Senior management • Partners – Risk Relations • Phasing of Development • Measuring success • Use of Reserves?

32. Strategic Planning Exercise 2 For top 3 Priorities for your charity – Consider • Resources (sufficiency?) • People and skills ? • Dependencies – what is required to happen e.g. external and internal factors

33. Strategic Planning Resources • Model Plans • NCVO • Handouts

34. Strategic Planning Summary & Review • Charity Board is entrusted to use resources effectively and wisely – in interests of beneficiaries • Operate within charities objects, rules & policies • Act reasonably and prudently in all matters • Be informed & Participate in Planning • Think ahead and assess risk = key