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Management Research News

A New Planning Model for the Public and Nonprofit Sector


Roger L. Kemp Jonathan D. Kemp
Article information:
To cite this document:
Roger L. Kemp Jonathan D. Kemp, (1992),"A New Planning Model for the Public and Nonprofit Sector", Management
Research News, Vol. 15 Iss 2 pp. 1 - 3
Permanent link to this document:
http://dx.doi.org/10.1108/eb028192
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Management Research News Volume 15 Number 2 1992 1

A New Planning Model for the Public and Nonprofit Sector


by Roger L Kemp & Jonathan D. Kemp Regardless of the reasons for undertaking a strategic
planning project, the greater amount of time spent on
Introduction formulating and designing the strategic planning pro-
Strategic planning is a common practice in the corporate gramme, the smoother the resulting planning process will
unfold. There are many facets and variables to be con-
world. While many private-sector organisations are now
sidered when undertaking a strategic planning project, and
using strategic planning practices, public and nonprofit
they should be thought-out well in advance by officials
officials have only recently begun to embrace this concept.
before commencing any long-range planning programme.
This is being done to enhance their organisation's ability
to cope with an ever- changing environment - both external
and internal. Since business models of strategic planning Strategic Planning Model
are designed to increase a company's profits and/or con-
trol its environment, such practices should be modified After reviewing the many different approaches to strategic
and adapted to properly "fit" the unique political and ad- planning, along with their various advantages and inherent
ministrative environment of a particular organisation. shortcomings, a generic model was developed that can be
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used with only slight modifications in most public and


While officials can learn from private-sector practices, nonprofit organisations. This model has six steps which
a new strategic planning model is necessary for public and are highlighted and explained in greater detail below. Spe-
nonprofit officials to fully take advantage of this modern cial attention has been placed on the "programme design"
planning technique. This article integrates existing infor- and "programme implementation" phases because of their
mation on public and nonprofit sector strategic planning critical importance to the success of the overall strategic
practices, thus enabling officials to benefit from the experi- planning process.
ence gained from the use of this state-of-the-art planning
practice in other organisational settings. Phase I - Programme Design
While many officials agree on the need for strategic
planning in the public and nonprofit sector, little consensus Any strategic planning programme commences with an
exists concerning a common model to utilise when under- expressed interest to undertake such a project by an
taking such planning projects. The desirability of officials organisation's governing body or top management. While
for more focused planning has been brought about by the impetus for most strategic planning projects has been
many reasons external to, but greatly impacting, the oper- from governing bodies, the administrative staff, lacking
ations of their organisations. Some of these reasons are policy direction, may wish to recommend such a planning
highlighted below. programme to their policy-making body. In all cases, how-
ever, strategic planning projects should receive the appro-
* Reductions in state and federal grant programmes. val of the governing body to legitimise the process within
the organisation. The programme design should include
* The public's aversion to increased taxation. details concerning both the structure and process of the
planning project.
* The unwillingness of officials to raise taxes and fees.

* A new political era of financial self-reliancy. The number and types of participants in the planning
group, the individuals selected to actually conduct the
* A new emphasis on raising revenue without increas- planning process, is a sensitive issue. If a strategic plan-
ing taxes. ning group has too few members, it may not be repre-
sentative of the community as a whole and may lack
* Greater competition among local organisations for political legitimacy. On the other hand, too many members
available grant programmes. may create a planning group that is large and cumber-
some. Such a group may find it difficult to reach a con-
* A greater need for more multi-year financial planning. sensus on major issues and the strategies selected to
resolve these issues. The number of participants and the
* An increasing need for more multi-year capital plan-
type of representation desired should be pre-determined
ning.
by policy-makers and top management as a part of the
* A trend towards more community involvement in the programme design phase. Careful attention should be
local planning process. given to involve a cross-section of the internal and external
stakeholders of the organisation. By diversifying the plan-
* A recognition that planning is an ongoing process ning group, more viewpoints will be considered and de-
and not a "one-shot" effort. bated during the ensuing planning process.
2 Management Research News Volume 15 Number 2 1992

The programme design must be modified until it meets required to tackle some of the strategic issues not pres-
with the approval of the governing body, since they alone ently being addressed by the organisation.
have the ultimate responsiblity for allocating the financial
and human resources necessary to implement the final The gap between the "environmental" and "organisa-
strategic plan. Once approved, the project participants tional" assessments will identify threats and opportunities
should be thoroughly briefed on both the structure and the confronting the organisation. These threats and oppor-
process of the strategic planning project. Appropriate tunities will provide future strategic direction to the organi-
background materials on the organisation's operations sation based upon its ability to properly respond to these
and finances should also be provided to the members of critical strategic issues. The goal of this phase is to identify
the planning group. Outside speakers and resource per- organisational opportunities and to minimise, if not over-
sons may also be used to properly brief those involved in come, threats within the organisation due to existing short-
the programme. Policy officials and key administrative staff comings--in terms of staffpower, technical expertise, and
may also wish to attend these briefings. The next step is funding requirements necessary to meet the challenges of
for the planning group to actually start the planning pro- the future.
cess.
Phase IV - Develop Mission Statements, Develop Goals
Phase II - Conduct Environmental Assessment and Deter-
and Objectives, and Develop Action Plan
mine Strategic Directions
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Once the programme design phase has been completed, This phase encompasses the operational aspects of the
the actual planning process can begin. The initial steps strategic planning process. A mission statement should be
involve scanning the external environment to identify those prepared for each strategic issue. These statements will
critical factors, forces, and trends that impact the organi- set the general strategic direction desired for those issues
sation. The "future" is defined by the timeframe established identified in the plan. One of the key components of
in the programme design. Emphasis should be placed on strategy development is the formulation of appropriate
analysing external forces that impact, or are expected to mission statements. This may include defining and refining
influence, the organisation. This process is frequently ne- the issues, or redefining the issues as they relate to the
glected in traditional forms of planning, which are typically purpose and function of the organisation. Mission state-
goal-oriented in nature. Once this assessment has been ments frequently set forth the general direction or desired
completed, critical issues impacting the organisation future condition for each strategic issue selected.
should be selected for inclusion in the strategic plan.
Specific goals and objectives are then developed for
The identification of the issues forms the basis of the
each mission statement. This is a critical aspect of the
strategic plan since a future direction will be determined
operational component of the strategic planning process
for each issue based on this assessment of the organisa-
since it identifies ways to reduce the negative impact of
tion's external environment. This step in the planning pro-
particular issues upon the organisation, sets forth how to
cess is one of the most important components of the entire
overcome organisational weaknesses, and outlines the
programme. It forms the foundation upon which the entire
strategies required to capitalise on available environmental
plan is based. Strategy development is an excellent oppor-
opportunities. Goals and objectives should include a listing
tunity for officials to go beyond the tendency of an organi-
of those assignments, projects, and programmes required
sation to look only at internal, or operational, factors when
to achieve the desired results for each strategic issue.
planning. Strategic planning differs from other forms of
planning because it begins by looking outside of the or-
ganisation. Once strategic directions have been deter- The action plan should be approved by the planning
mined for each major issue, the attention of the planning group prior to its being submitted to the governing body
group may turn inwards to assess the organisation's ability for final consideration. At this stage of the strategic plan-
to plan strategically for the future. ning process, if the planning group was divided into com-
mittees based on issue areas, it would be desirable to form
Phase III - Conduct Organisational Assessment and Deter- a steering committee composed of a representative of
mine Organisational Capabilities each of the issue committees. The purpose of this body
would be to review the final report, reconciling any conflict-
The next step in the planning process is to review the ing goals or objectives prior to forwarding the strategic
organisation's capabilities, identifying its strengths and planning document to the governing body. The steering
weaknesses as they relate to those strategic issues pre- committee could also be assigned the responsibility of
viously identified. This step involves an assessment of the reviewing the report in detail with officials, using a study
organisation's ability to respond to, and properly address, session or similar format, prior to requesting official appro-
those issues important to its future. A review of an agency's val of the report at a public meeting. This committee may
operational and financial position is important since addi- also take on other responsibilities that may be assigned to
tional staff, technical expertise, and/or funding may be it by the entire planning group.
Management Research News Volume 15 Number 2 1992 3

Phase V - Programme Implementation to the organisation. Significant changes in the composition


of the governing body or the organisation's external envi-
Once the strategic plan has been approved by the govern- ronment may warrant adjustments to the initial programme
ing body, it is ready to be implemented. This component design, or revisions to the strategic issues contained in the
of a strategic plan sets this planning process apart from plan. If the strategic issues selected are truly essential
other traditional forms of planning. The key to strategic ones, and if the mission statements reflect basic fun-
planning is that it is result-oriented, rather than goal- damental priorities, the strategic plan should be relevant
oriented. The focus of strategic planning is on the alloca- with only minor modifications for a period of about five
tion of scarce resources to critical strategic issues. If the years or so.
process has been executed properly, there should be a
consensus on how the external environment will affect the The Future
organisation, how to capitalise on the organisation's
strengths, ways to overcome weaknesses and take ad- Too often, public and nonprofit sector planning has been
vantage of opportunities, and how to achieve the desired reactive, short-range, staff-oriented, dominated by single
outcome or condition for each issue identified in the plan. issues, hierarchial in nature, and generally lacking in popu-
lar community support. These factors have led to a general
The plan's implementation should be a shared respon- skepticism of traditional planning practices. New thinking
sibility between policy officials, top management, major is needed in times of fewer grant programmes, complex
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organisational stakeholders, and other groups that have a and interrelated issues, rising expectations regarding ser-
commitment to resolving major issues facing the organi- vices, and public aversion to increased taxation and user
sation. The implementation of the action plan may include fees. The planning models of the past do not properly
the adoption of new policies and programmes, revisions equip an organisation to effectively deal with these dy-
to existing policies and programmes, and modifications to namic issues. Strategic planning is needed to enable third
any current planning documents, such as general plans, sector organisations to optimise their human and financial
financial plans, capital plans, and if they exist, technology resources during these changing and challenging times.
plans. The requirements for any additional staffing, techni-
cal expertise, and/or funding needed to implement the plan The private sector has made long-range strategic
should be undertaken during this phase. planning a common practice over the past few decades.
Unlike traditional planning, strategic planning is proactive,
It should be noted that certain portions of the strategic long-range, and community-oriented. Additionally, it in-
plan may have to be linked to an agency's general plan if volves multiple issues, is non-hierarchial in nature, and
changes in land-use are required, to the annual budget if helps achieve a broad consensus on the issues and prob-
additional staffing and/or financial support is needed, to lems facing an agency. Furthermore, the private sector has
capital plans if public works improvements are involved, proven that strategic planning is a powerful planning tool.
and to available technology plans if new technologies are Public and nonprofit organisations, like their private-sector
needed to implement any requirements of the strategic counterparts, should be able to realise a substantial return
plan. The search for outside funding sources, such as on their investment by using this modern planning tech-
federal and state grant programmes, may also be included nique.
in this phase of the strategic plan.
It is imperative that governing bodies and other offi-
Phase VI - Monitoring and Evaluation cials provide a strategic vision for their respective organi-
sations. A shared understanding of the issues and goals
The final phase involves the actual monitoring and evalu- facing an agency not only provides a vision for the future,
ation of the implementation of the strategic plan. A suc- but also helps mobilise all available resources to effectively
cessful strategic plan requires an ongoing review of actual manage change. The public and nonprofit sector strategic
accomplishments in relation to the goals and objectives planning model outlined in this article can serve as a
contained in the action plan. Notwithstanding who is as- blueprint for similar projects in the future. The contempor-
signed this task, the monitoring and evaluation of the ary society in which such agencies operate demands new
results of the plan should be institutionalised within the planning tools to function successfully under rapidly
organisation because of its importance to the planning changing conditions. It is only through such modern plan-
process. This will ensure that action is taken on the plan ning practices that public confidence in the government
and that actual measurable results are achieved as antici- and nonprofit sector can be restored and these organisa-
pated. Frequently, the planning group and top manage- tions can successfully adapt to the future.
ment are the logical parties to keep abreast of the plan's
results and accomplishments. ROGER L KEMP is President, and JONATHAN D. KEMP
is Research Associate, of the Center for Strategic Planning.
The organisation's external environment should also The Center provides consulting and training services to the
be continually monitored and evaluated to make sure that public sector. For further information contact the authors
the strategic issues contained in the plan remain relevant at P. O. Box 1101, Clifton, NJ 07014-1101, USA.
This article has been cited by:

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& Accountability Journal 22:5, 789-832. [Abstract] [Full Text] [PDF]
3. Malcolm SmithEdith Cowan University, Perth, Australia Anita JamilEdith Cowan University, Perth, Australia Yang Chik
JohariEdith Cowan University, Perth, Australia Syahrul Ahmar AhmadUniversiti Technologi Mara, Johor, Malaysia. 2006.
The chairman's statement in Malaysian companies. Asian Review of Accounting 14:1/2, 49-65. [Abstract] [Full Text] [PDF]
4. Michael John JonesCardiff Business School, Cardiff, UK. 1996. Readability of annual reports: Western versus Asian evidence
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Downloaded by University of Melbourne At 23:50 22 June 2016 (PT)

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