Involvement in the organization’s strategy is one of the most important functions of the board.
I can help an organization frame its Mission, Vision and Values that reflect the relationship that the organization wishes to have with its stakeholders and, how the organization intends to address important stakeholder needs.
- Good visions are inspirational.
- The mission typically describes, what the organization does to achieve its vision.
- Shared values influence everything the organization does, its relationships with its stakeholders, and its reputation.
Many MBOs have already completed this step and need to focus on a strategy to describe the scope of the activities or programs through which the organization’s goals and objectives can be achieved. MBOs want their strategies to be compatible with their values.
Typically, management if you have it, is very involved in the setting of strategy. It is a tried and true practice to have an annual board retreat where strategy is set with a business plan developed by management from that work.
I can help the board develop strategy by helping the MBO to understand where it is now. A commonly used process for doing this is “SWOT analysis:”
- Strengths,
- Weaknesses,
- Opportunities, and
- Threats.
This is a simple model, easy to understand and use.
The resulting strategic plan will describe how the organization intends to move from where it is now towards its vision in accordance with its mission, values and tolerance for risk. In so doing it plans to use its strengths to take advantage of opportunities, remedy its weaknesses and to avoid or mitigate threats. The plan also establishes how the organization will measure progress in meeting its objectives.
- I can help the board to be actively involved in the development and approval of its strategy.
- Risk faced by the organization should be accounted for.
- Behind every strategy and budget there are a number of assumptions that should be challenged by directors to ensure that there is a full understanding.
- Working together, we can be sure that the board can use the strategic plan to monitor whether the organization’s performance is advancing the strategy.
- I can also help to have the board set aside time for inspirational discussions.