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Overview
Defining Your Nonprofit's Mission, Vision, and Values
The initial step for both the board of directors and the executive director is to meticulously document the organization's mission, vision, and values. These elements form the cornerstone of your nonprofit's identity and direction.
Mission Statement
This concise statement, spanning one or two sentences, defines why your organization exists and outlines its core purpose. It is imperative to distinguish your unique calling from the work of others in your field.
Vision Statement
In a similarly succinct fashion, the vision statement paints a vivid picture of the future when your organization has successfully achieved all its objectives. The vision helps all stakeholders see the same desired change. A fully realized vision would in theory render the organization's ongoing existence unnecessary.
Values
Values encapsulate the fundamental beliefs that underpin your organization's leadership and culture. They serve as guiding principles, shaping how your nonprofit conducts its operations. A helpful number of values is between three and seven. If there are too many, it is difficult to remember them or uphold them. Create examples for your organization that show the values being implemented to help people understand how they are applied.
It is helpful to post the mission, vision, and values around the office, to have them on your website, and to include them in the Employee Handbook. Don’t be afraid to let your team ask questions about these statements; through discussion, their understanding will deepen, creating clarity and buy-in.
Crafting Your Program Design
With your mission, vision, and values clearly defined, the next stage is to embark on crafting the program design. This approach necessitates identifying specific, measurable outcomes that serve as yardsticks for assessing your progress. Stop – before continuing, please check out the chapter on Program Development and Impact Evaluation (Chapter 5).
Outcome-Oriented Planning
Once the nonprofit leadership has clearly defined the organization's mission, vision, values, purpose/outcomes, and completed the program design, then they are ready to start to create the detailed plan to launch. As each of these steps are completed, the information should be documented and entered into a project management software tool.
- First, make sure you have clearly defined the characteristics that accomplish the mission’s outcomes.
- With the end in mind, document the subset of steps needed to accomplish each outcome.
- Continue to break down each task to its lowest level list of steps.
- With the tasks fully documented, identify what various skills will be needed to perform the work and estimate the number of hours per tasks (see Staffing, Chapter 13).
- After determining who will do what and how those tasks will be divided amongst employees, a timeline can be created in a project management document.
- After laying out all these components, a realistic timeline for launching new initiatives can be determined.
- Obviously, the budget and funds raised will need to be factored into the hiring, onboarding, training, and launch timeline. There needs to be alignment between the budget, operational plan, and measurable outcomes.
- Various methods exist for developing, formatting, and presenting a business plan. The crucial components of the final document involve documenting the foundational programming aspects and then organizing them into layers. These layers should progress from the specific programs to strategic divisions/departments, measurable outcomes (Key Performance Indicators or KPIs), the overarching mission, and ultimately, the vision. A succinct, single-page summary is often highly valued by leaders for effective communication with constituents. This concise representation provides a comprehensive overview, facilitating clear communication of the organization's key elements.
Milestones and Strategic Planning
Once a timeline is laid out, milestone checkpoints should be identified to ensure the work is on track and progressing toward the outcome goals. Keep the plan simple. It may take several years until the initial results of the nonprofit’s work are realized. Change takes time. With this information in hand, leadership can develop 1-year, 3-year, and maybe 5-year strategic plans with clear goals. The further the period of time, the more general and brief the goals should be.
Documentation, Tools, and Team Collaboration
As discussed in Policies and Procedures (Chapter 12), documentation to support the work will need to be created. There may be a need for training of staff and/or volunteers, for creating documents that describe collaborative work with another organization, or other documentation. Documenting the work will often uncover areas that have not yet been thought through in sufficient detail.
There are numerous software packages available today for little to no cost to assist in tracking tasks that need to be accomplished, estimating hours, identifying who is responsible, dependency of tasks, etc. Please see the Resources – Software section below.
Weekly Task Management and Collaboration
Once work begins, weekly meetings should be scheduled to ensure the team is working together and that issues are being raised and resolved in a timely manner. Regular meetings will keep staff focused, feeling supported, and productive. Watch for patterns that are forming and trends that the work is or is not progressing in the correct direction at the desired pace.
Monitoring and Accountability
A scorecard is a way to monitor progress and help employees know what their target is. Develop indicators or measurements that can assist in flagging areas that are not performing as desired. A common method is to color the measurement areas red for “trouble and needs immediate attention,” yellow for “caution,” and green for “on track.” This can add clarity and help focus on the areas that need attention to remain on schedule.
Issue Resolution and Effective Decision-Making
Seek to solve issues as soon as they are identified. Procrastination or not being willing to make a hard decision is often one of the key causes for an organization to not succeed. Unresolved issues can disrupt work progress or cause work to need to be redone. It is wise to track all issues and prioritize the need for resolution each week at the team meeting. In addressing an issue, make sure to discuss it in enough detail to get to the root cause. Often the symptoms of the problem are described, not the underlying cause of the problem. Be open to brainstorm on solutions to make sure the team has considered all possibilities prior to landing on a course forward.
Annual Goal Setting and Strategy
Each year, it is the responsibility of the board of directors to ensure that the nonprofit establishes clear, SMART goals—those that are Specific, Measurable, Attainable, Realistic, and Time-driven. The annual budget should align with these goals to facilitate their achievement. Additionally, conducting a SWOT analysis every couple of years is essential. This analysis evaluates the organization's Strengths, Weaknesses, Opportunities, and Threats, considering external factors such as new nonprofits entering the same field, political or economic shifts, changes in community demographics, partnership dynamics, and more. Ask partners how it is to work with you and how you could you improve. Ask donors how they describe your work when they talk with others.
Strategic Goal Setting and Division Planning
Once annual goals are set, the executive director takes the lead in creating work goals for each division and staff member. This plan should outline how each component contributes to the organization's overarching mission. To facilitate effective project management, numerous tools are available, especially when various staff members or departments are involved. Implementing checkpoints along the way ensures that the work progresses as planned and that the goals remain attainable.
Task Breakdown and Prioritization
Annual goals should be first broken down into quarterly goals (90-day plan). Then quarterly goals can be laid out by the number of hours of work needed to complete each task and any required sequence of tasks. Sometimes an employee’s project list can have too many items for quality completion. If this happens, a decision on each task will need to be made: whether to keep it, delete it, or move it to someone else’s list. Clear responsibility for each task is needed to prevent confusion and hold employees accountable.
Time Management and Effective Team Meetings
These 90-day goals should be reviewed with management. Managing each workweek can be a delicate balancing act, particularly when unforeseen tasks demand attention. To address this challenge proactively, prioritize your list of tasks that need to be completed. Then block out dedicated time on your calendar for these critical activities. Regularly allocating time to tackle priority tasks keeps them moving forward and prevents them from accumulating into overwhelming, insurmountable tasks.
Each week the team should meet to review progress and address issues. Creating a list of issues and selecting the top three to discuss during the meeting will help employees to keep their work moving forward. Do not rush this process. As is true with all activities, the upfront effort put into truly understanding the task determines the quality of the output. At the end of each meeting, allow all participants to rate the meeting. Was it productive and were their expectations met? Great meetings solve problems and answer questions.
Leader’s Wisdom
Crafting a Visionary Foundation for Your Nonprofit
1. Start Simple, Think Big:
- When you're just starting, keep it simple and high-level.
- Go back later to delve into the necessary details for each major area of your work.
2. Define Your Mission, Vision, and Values:
- Your mission statement should be concise and state why your organization exists and what it plans to do.
- It should clearly differentiate your organization's purpose from others in your field.
- The vision statement describes what the future would look like if all your objectives were met, indicating that the organization would no longer be needed.
- Values represent the core beliefs guiding your organization's culture and operations.
3. Align Mission and Daily Work:
- Ensure that all programs and initiatives align with your nonprofit's mission.
- Clearly state from the outset that your organization is a "Christian faith-based organization" for tax-exempt status purposes.
4. Focus on Your Mission:
- Avoid distractions and comparisons with other organizations; focus on making your organization the best it can be.
- Don’t try to solve everyone’s problem (“do not try to boil the ocean”). Have a narrow focus and go deep.
- Remember that your mission informs all other decisions and should guide your actions.
5. Articulate Your Vision:
- Clearly communicate your vision and involve others in its realization; don't impose your ideas.
- Prioritize a few key initiatives to avoid spreading resources too thin.
6. The Importance of Planning:
- Plans are the foundation for alignment and progress; take your time to develop clear plans.
- The maturity of your organization will influence your planning process.
- Spend adequate time on planning, be concise, and identify tangible outcomes.
- Be realistic and assess prospects for financial and work support.
- Develop a comprehensive ministry plan alongside your program-focused vision.
- Seek input from others to refine your concept and identify potential challenges.
- Create measurable outcomes that define success and adjust them based on program experience.
- A strategic plan should encompass your mission, vision, values, outcomes, and annual goals.
7. SWOT Analysis:
- Consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to maximize positives and minimize negatives.
8. Define Mission, Vision, Values, Outcomes, and Annual Goals:
- Mission: A brief statement of how your organization will increase human potential or decrease human suffering, explaining why your organization exists.
- Vision: A description of the world's future if your mission is accomplished.
- Values: Documented principles guiding interactions both within and outside the organization.
- Outcomes: Descriptions of the differences for participants or communities engaging with your organization.
- Annual Goals: SMART goals (Specific, Measurable, Attainable, Realistic, Time-Oriented) to measure your organization's impact.
9. Board Approval and Iteration:
- Ensure that each component is documented and approved by the Board of Directors.
- The creation process may be iterative, impacting other components as one aspect is solidified.
10. Seek External Input:
- Have the plan reviewed by potential funders and outsiders to gather feedback and ensure clarity.
11. Track Impact and Progress:
- Establish a feedback loop to allow those served to share their stories and experiences.
12. Implement Goals:
- Start with major annual goals and break them down into quarterly goals, assigning responsibility to team members.
- Regularly review progress in weekly meetings.
13. Prove Your Concept:
- Before forming a new nonprofit, consider continuing to stay working at your current profession, while you validate the concept and need.
- Track hours and expenses to demonstrate viability.
14. Simplify and Visualize:
- Don't overthink mission, vision, and values; use pictures to gamify and make it engaging for others.
- Be clear about your "why" and God's calling.
- Maintain clarity in your mission, vision, and values; they should remain constant, while outcomes and strategies may evolve.
15. Ongoing Planning and Growth:
- Plan annually with your C-Suite employees, dedicating two days to set your yearly objectives.
- Conduct quarterly plan reviews with each team.
- Create a dashboard to monitor progress on goals for the board and staff.
- Focus on individual staff members' well-being and workload.
- If necessary, consider hiring additional staff to manage workloads.
- Exponential growth can be achieved when employees are performing well.
- Read the book Traction early, figure out your right goals, and cut out the fat (the “good things” that are not the “great things”).
- Start with a simplified Traction model that will include one-on-one meetings along with team meetings. Systematize the management of the projects.
Traction – Book Overview by Ken Schempp
Introduction
Nonprofit organizations stand as pillars of societal change, dedicated to addressing pressing issues and making the world a better place. Yet, their path is fraught with challenges unique to the nonprofit sector. To help nonprofit organizations overcome these hurdles, we introduce The Entrepreneurial Operating System (EOS) Traction, a powerful approach inspired by the for-profit world that promises to improve their operational efficiency and effectiveness. We explore how nonprofit organizations can harness the transformative potential of EOS Traction, all while navigating the subtle differences between for-profit and nonprofit business development.
EOS Traction offers a structured methodology designed to help organizations achieve their vision. This system was conceptualized by Gino Wickman, and its core principles are elaborated in his influential book, "Traction: Get a Grip on Your Business." The system comprises six fundamental components, each of which plays a pivotal role in organizational success.
We will delve deep into these components in the subsections below and explore their applications within the nonprofit world that serves as a guide for nonprofit leaders and organizations to adapt EOS Traction to their unique needs, improve their operations, enhance mission alignment, and ultimately realize their ambitious goals.
Common Challenges Faced by Nonprofits
Nonprofit organizations are not immune to challenges, and in fact, they often face unique hurdles due to their mission-driven nature and reliance on limited resources.
1. Financial Mismanagement: Financial stability is a common concern for nonprofits. Poor budgeting, overspending, or inconsistent funding can quickly lead to organizational instability and even closure.
2. Lack of Strategic Planning: Without a well-defined strategic plan, nonprofits may struggle to set clear goals, allocate resources effectively, and adapt to changing circumstances. Strategic planning is critical to maintaining focus on the mission and adapting to evolving needs.
3. Insufficient Funding: Many nonprofits rely on grants, donations, and fundraising efforts to sustain their operations. If these funding sources are inconsistent or insufficient to cover expenses, it can lead to financial stress and eventual closure.
These challenges are often interconnected, making it crucial for nonprofits to address them holistically. The following will explore practical solutions and strategies for mitigating these challenges, providing nonprofits with the tools they need to thrive.
Leadership Matters: A Closer Look
Effective leadership is the lifeblood of any successful organization, and nonprofits are no exception. Leadership within nonprofit organizations is a multifaceted endeavor. It encompasses setting a clear vision, making strategic decisions, fostering collaboration, and ensuring that the organization's mission is at the forefront of every action. Effective nonprofit leaders model the behaviors they wish to see in their teams, creating a culture of accountability and transparency.
Effective nonprofit leadership goes beyond titles; it's about inspiring change, mobilizing resources, and driving progress toward the organization's mission. Nonprofit leaders can use EOS Traction to enhance their leadership teams and create a culture of accountability, transparency, and high-performance.
The Power of EOS Traction
EOS Traction is a game-changer for organizations. It's a leadership platform designed to boost an organization's leadership team, streamline its processes, and cultivate a thriving culture. Originating from Gino Wickman's groundbreaking work outlined in "Traction: Get a Grip on Your Business," EOS Traction comprises six core components:
1. Vision sets the stage for your nonprofit's journey, creating a clear, compelling vision that guides the organization. It ensures that every stakeholder understands and is inspired by the mission, and if implemented right, it enables the team to “all row in the same direction.”
2. People component involves ensuring that the right people are in the right positions. This promotes alignment, accountability, and fulfillment of responsibilities. Clarity of roles and responsibilities is a key element to a successful team.
3. Data emphasizes the importance of making decisions based on data. For nonprofits, data-driven decisions, managed through a “scorecard” (weekly monitoring report on 5-15 high level metrics) are vital for optimizing resources, measuring impact, and strategic planning. This scorecard enables you to have a pulse on your work and predict future developments and quickly identify if things fall off the track.
4. Issues component involves identifying and addressing challenges that hinder progress in attaining your vision. Nonprofits can apply this component to resolve resource allocation issues, mission drift, and more by applying an efficient approach to problem solving.
5. Process component helps in developing and documenting core processes (highlights “your Way of doing business”) that are “followed by all.” Nonprofits can streamline administrative tasks, volunteer management, and program delivery, ensuring resources are used efficiently. When applied correctly, this also results in simplicity and scalability.
6. Traction is all about establishing discipline and accountability to achieve your nonprofit's goals. This is a fundamental element for keeping the organization on track and ensuring progress is made by having a consistent “meeting pulse” with weekly, quarterly, and annual key meetings. A critical component of EOS brings a rhythm for the organization to sync with.
By understanding these 6 core components and how they fit together, nonprofit organizations can reap the benefits of EOS Traction. When executed well, the benefits include improved communication, clear focus and accountability, increased operational efficiency, better decision-making, and a disciplined approach to accomplishing the organization’s mission.
Adapting EOS for Nonprofits
EOS Traction is a flexible system that can be tailored to meet the unique needs of nonprofit organizations by adapting each EOS component to align with their organization's goals and challenges.
The Vision Component: For nonprofits, establishing a compelling vision is crucial for inspiring stakeholders and attracting support by setting clear financial objectives that resonate with donors, volunteers, and the community. An inspiring mission statement unites stakeholders around a common goal, fostering a sense of purpose within the organization.
Solving Issues: Nonprofits often face issues related to resource allocation, program effectiveness, or stakeholder engagement. EOS Traction's "Issues" component provides a structured approach to identify and resolve these challenges promptly. Nonprofits can apply this tool to overcome obstacles, ensuring that resources are allocated efficiently and that the mission remains on course.
EOS Traction provides a roadmap for nonprofit leaders to enhance their organizational efficiency, improve mission alignment, and achieve their goals. By leveraging the 6 components and adapting them to nonprofit-specific needs, nonprofits can unlock their full potential and drive meaningful change.
Key Differences: For-Profit vs. Nonprofit
Nonprofit organizations and for-profit businesses have distinct missions and revenue models, leading to differences in how they operate and make decisions.
The Stakeholder Challenge: For-profits primarily focus on generating profits and shareholder value, while nonprofits are mission-driven, aiming to address social or environmental issues. This fundamental difference in revenue models significantly impacts decision-making and resource allocation for nonprofits.
Performance Metrics: Nonprofits use performance indicators related to mission achievement, such as the number of beneficiaries served or the impact on the community. EOS Traction can help nonprofits set clear program goals, measure outcomes, and make data-driven improvements in areas directly related to their mission.
Finding Balance: Nonprofits often struggle to balance the need for financial sustainability with their mission-driven focus. EOS can help nonprofits set clear financial goals that align with their mission. This includes creating processes for budgeting, grant management, and financial reporting, ensuring financial stability while remaining true to their mission.
Resources
Podcasts
- Business as Mission by Erik Cooper. https://www.youtube.com/watch?v=30F8Wp-lbZE
Websites
- The Mockingbird Incubator Program is designed to help emerging nonprofit founders create sustainable growth and measurable impact in their communities. They have an on-demand program in Strategic Planning and Goal Definition for Nonprofits. This is a self-paced course to guide you through the process of creating your strategic plan. https://www.mockingbirdincubator.org/nonprofit-program
- Auxano – Get a visionary plan for real church growth https://auxano.com/
- Prosper Strategies has several articles on planning.
- How to build a strategic plan.
- How to create a theory of change.
- How to create a logic model.
- How to build an operational plan (and differentiate it from your strategic plan).
- How to engage the people you serve in shaping your strategy.
- How to prioritize among your nonprofit’s (many, important) goals.
- How to set pillars and OKRs in your strategic plan.
- How to prepare for a productive strategic planning process.
- The Nonprofit Association of Oregon has the following helpful articles:
1. Mission & Vision
2. Business Planning
3. Strategic Planning
https://nonprofitoregon.org/resource-library/
- The Minnesota Council of Nonprofits has 4 high level steps for visioning: https://www.minnesotanonprofits.org/resources-tools/starting-a-nonprofit/visionary-stage
- The Minnesota Council of Nonprofits has 22 steps to consider for planning: https://www.minnesotanonprofits.org/resources-tools/principles-practices-for-nonprofit-excellence/planning
Software
- Project Management software –
- Wrike https://www.wrike.com/vag/
- Monday https://monday.com/
- smartsheet https://www.smartsheet.com/
- ResoureGuru https://get.resourceguruapp.com/
- slack https://slack.com/solutions/project-management
- Trello https://trello.com/b/IVnWwOxP/business-start-up
Books
- Traction: Get a Grip on Your Business by Gino Wickman
- See Book Overview – Chapter 3 Planning
- Next Level Nonprofit: Build A Dream Team + Increase Lasting Impact by Dr. Chris Lambert. Dr. Chris Lambert expertly guides nonprofit leaders, founders, and managers through the proven steps to build team unity, communicate a compelling vision, establish the right strategy, and grow through disciplined execution.
- Business Made Simple: 60 Days to Master Leadership, Sales, Marketing, Execution, Management, Personal Productivity and More by Donald Miller. It’s hard to be successful without a clear understanding of how business works. These 60 daily readings are crucial for any professional or business owner who wants to take their career to the next level.
- Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman, Mark C. Winters, et al. Rocket Fuel details the integral roles of the visionary and integrator and explains how an effective relationship between the two can help your business thrive. Rocket Fuel also features assessments, so you're able to determine whether you're a visionary or an integrator.
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Understand the Terrain Challenges
Planning
The initial step for both the board of directors and the executive director is to meticulously document the organization's mission, vision, and values...
Read More
Determine NPs Core Features
Determine NPs Core Features
Collaboration & Strategic Alliances
Before launching a new nonprofit, the founder should research other organizations doing similar work, to determine if you can join them...
Read MoreCollaboration & Strategic Alliances
Collaboration & Strategic Alliances
Program Development & Impact Evaluation
Take the time now to do some research, develop your logic model, and identify your evaluation methods. It will ensure that you’re delivering services...
Read MoreProgram Dev & Impact Evaluation
Program Dev & Impact Evaluation
Accounting and Finance
Accurate financial statements are the bedrock of informed financial decision-making. When donors entrust your organization with a donation...
Read MoreAccounting & Finance
Accounting & Finance
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