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Thrive. Grow. Achieve.
January 12, 2016
Dr. Rob Sheehan, Robert H. Smith School of
Business at the University of Maryland
...
Robert M. Sheehan, Jr., Ph.D.
Principal
Sheehan Nonprofit Consulting
@SheehanImpact
RobSheehan@aol.com
301.523.1864
www.Sh...
ABOUT
ROB SHEEHAN
*Robert H. Smith School of
Business, University of
Maryland
 Academic Director, Executive MBA
Program
*...
ABOUT
ROB SHEEHAN
 Ph.D., The Ohio State University
 College of Business
 School of Public Policy &
Management
 Organi...
ABOUT
ROB SHEEHAN
 CEO, 18 years, Two National
Nonprofits
 AΣΦ Educational Foundation,
1981-1990
 LeaderShape, Inc., 19...
6
QUICK
SURVEY
How many of you think that
most people in the nonprofit
world work very hard?
7
QUICK
SURVEY
How many of you think that
most people in the nonprofit
world are smart?
8
LEAP OF
REASON
“Incremental Change is Not
Enough”
-Mario Morino
Leap of Reason
9
“INNOVATE
OR DIE”
“We’re in an environment
where its innovate or die.”
-Amelia Franck Meyer
CEO, Anu Family Services,
Huds...
BREAKTHROUGH
STRATEGY
The intention of the Breakthrough
Strategy approach is to drive
higher levels of innovation and
crea...
DESIGN
FOR TODAY
 To provide you with a “taste” of
the Breakthrough Strategy
approach
 To demonstrate ideas on how you
c...
A NEW
MINDSET
We need a new
mindset.
13
NEW PATTERNS
OF THOUGHT
“The problems we face cannot be
solved using the same patterns of
thought that were used to create...
BEING
UNREASONABLE
“The reasonable man adapts himself
to the world; the unreasonable one
persists in attempting to adapt t...
THE IMPORTANCE
OF LEADERSHIP
 Nothing we discuss today can be
successfully utilized within an
organization without effect...
STRATEGY
DEVELOPMENT PROCESS
 Establish Mission Gap
 Adopt Aspirational Mindset for
Creating Vision
 Adopt Aspirational...
THE BREAKTHROUGH
STRATEGY WORKBOOK
 A guide for strategy development that
follows the Mission Impact process.
 Multiple ...
STRATEGY
DEVELOPMENT MAP
19
Your
Mission Impact
20
“MISSION
GAP”
 Imagine what the world would look
like if you were accomplishing your
mission 100%.
 Compare that to the ...
MERRILL COUNTY
LITERACY COUNCIL
Mission
To assure that all adults age 16 or
older in Merrill County are literate.
Mission ...
MERRILL COUNTY
LITERACY COUNCIL
Mission Gap
With 100,000 adults, age 16 and older,
living in Merrill County, the Mission
G...
NORTH TEXAS
FOOD BANK
24
YOUR
MISSION GAP
Do you need a
Breakthrough Strategy
that will drive
Innovation in your
organization?
25
STRATEGY
DEVELOPMENT PROCESS
 ✔ Establish Mission Gap
 Adopt Aspirational Mindset for
Creating Vision
 Adopt Aspiration...
The Power
of
Vision
27
ANALYTICAL
VISIONING
 Analyze Internal Capabilities &
Predictable Changes
 Analyze External Environment &
Predictable Ch...
ASPIRATIONAL
VISIONING
 Dream with no constraints
 Create an Ideal “Future Picture” based
on what is Inspirational and D...
DREAM
“Some men see things as they are and
say ‘why,’ I dream things that never
were and say ‘why not.’”
- George Bernard ...
CHANGING
THE WORLD
“Because the people who are crazy
enough to think they can change the
world are the ones who do.”
-Stev...
DIVINE
MADNESS
“Let us build such a church that those who
come after us will think we were madmen’,
said the old canon of ...
33
STRATEGIC
INTENT
Companies that have risen to global
leadership over the past 20 years
invariably began with ambitions tha...
CREATIVE
TENSION
“the gap between vision and current
reality is also a source of energy . . .
the gap is the source of cre...
VISION
With your current environment in mind –
including your “mission gap” – think
about how you could make “quantum
leap...
THE $100 BILLION
CHALLENGE
37
Why dream a vision that
can never come true?
38
VISION
 Visions give us something to aspire to.
 Visions can inspire others to help make
dreams come true.
 Visions pro...
How should leaders
establish vision?
40
POSITIONAL
LEADERSHIP
Leadership by “lamination”
vs.
Leadership as a catalyst
41
TRANSFORMATIONAL
LEADERSHIP MODEL
PARTICIPANTSLEADERS
42
LEADING
INNOVATION
“The role of a leader of innovation is
not to set a vision and motivate others
to follow it. It’s to cr...
WHAT
FOLLOWERS WANT
“Constituents want visions of the future
that reflect their own aspirations.
They want to hear how the...
STRATEGY
DEVELOPMENT PROCESS
 ✔ Establish Mission Gap
 ✔ Adopt Aspirational Mindset for
Creating Vision
 Adopt Aspirati...
The Importance
Of Goals
46
VISION TO ACTION:
GOALS
 Direct attention to relevant activities
 Affect intensity of effort
 Affect persistence
 Stra...
OUTCOME VS.
ACTIVITY GOALS
“To mail 11,000 personalized
fund-raising letters to our
organization’s previous donors
by Octo...
OUTCOME VS.
ACTIVITY GOALS
“To receive $300,000 in contributions
from our organization’s previous
donors by December 1, 20...
SMART
GOALS*
 Specific
 Measurable
 Attainable
 Relevant
 Time-bound
*Traditional version
50
ATTAINABLE
GOALS
 Set with at least 80% chance of
success
 Sounds reasonable – failure can be
followed by negative conse...
ATTAINABLE
GOALS
 What might be the downside of
setting goals that are reasonably
“Attainable?”
52
ATTAINABLE
GOALS
 What might be the downside of
setting goals that are reasonably
“Attainable?”
 Goal research:
 The mo...
The
Performance
Paradox
54
SMART
GOALS*
 Specific
 Measurable
 Aggressive, yet Achievable
 Relevant
 Time-bound
*Doug Smith version
55
AGGRESSIVE
YET ACHIEVABLE
 Allows you to maximize
performance, but with a higher
chance of failure
 If you are a boss & ...
SMART
COMPARISONS
ATTAINABLE
vs.
AGGRESSIVE
Which SMART formula is best?
57
ATTAINABLE
GOALS
 Best when the priority is to
accurately predict performance of the
current system
 Good for generating...
AGGRESSIVE
GOALS
 Best when the priority is to maximize
the performance of the current
system
 Maximize intensity of eff...
SMART
GOALS
Think of a goal that you are
currently working on and write
it so it fits the “SMART”
guidelines.
60
A NEW ‘A’
FOR SMART*
 Specific
 Measurable
 *Almost Impossible
 Relevant
 Time-bound
*Rob Sheehan version
61
GREAT
LEADERS
Great Leaders Have a
Healthy Disregard for the
Impossible
62
IMPOSSIBLE . . .
“Space travel is utter bilge.”
- Sir Richard Van Der Riet Wooley, The Astronomer
Royal, 1956
63
IMPOSSIBLE . . .
“While theoretically and technically
television may be feasible,
commercially and financially I
consider ...
IMPOSSIBLE . . .
“Well informed people know it is
impossible to transmit the voice
over wires and that were it
possible to...
IMPOSSIBLE . . .
“We must not be misled to our
own detriment to assume that
the untried machine can displace
the proved an...
IMPOSSIBLE . . .
“Rail travel at high speeds is not
possible because passengers,
unable to breathe, would die of
asphyxia....
BULLET TRAIN
THINKING
It used to take more than six hours to travel by
train from Tokyo to Osaka. If the Japanese
executiv...
TRADITIONAL ANALYTICAL
GOALS
“This is a forecast of the result we should be
able to produce if we work hard at it.”
ASPIRA...
STRETCH
GOALS
You can’t think outside of
the box, when you are
standing in it!
70
STRETCH
GOALS
 You use stretch goals, they don’t use
you. They do not exist to dominate
you and stress you out. They exis...
STRETCH
GOALS
“The most fun game is one
you’ve never played and
your inventing as you go
along.”
Jerry Seinfeld
Fast Compa...
STRETCH
GOALS
 Fully achieving a stretch goal is not
the main focus of your attention.
You are interested in being creati...
THE MOON SHOT
vs CANCER
 1961: President Kennedy sets the
goal to send a man to the moon and
return him safely by the end...
STRETCH
GOALS
 You need to create a “safe-fail”
situation with a stretch goal. You
can’t treat failure as an issue. You
h...
SAFE - FAIL
ENVIRONMENT
 “‘The fastest way to succeed, IBM’s
Thomas Watson, Sr., once said, ‘is to
double your failure ra...
77
STRETCH
GOALS
 You have to set your own boundaries
on resources you will use to achieve
the goal—including the amount of
...
Pessimists & Optimists
Unite
Use “Flexible
Optimism”
79
STRETCH
GOALS
 Since the prospects of failing at the
stretch goal are high and failure at
some goals can have real life
i...
STRATEGIC
INTENT
“Creating stretch, a misfit between
resources and aspirations, is the
single most important task senior
m...
THE WALL
STREET JOURNAL
“Stretch is a concept that would have
produced smirks, if not laughter, in
the GE of three or four...
START WITH
THE END IN MIND
*When brainstorming new ways to
go about accomplishing a goal,
“start with the end in mind.”
Im...
STRATEGIC STRETCH
GOALS
 Set five Strategic Stretch Goals for
the next five years which:
 Inspire you!!!
 Would catapul...
CHALLENGES WITH
STRETCH GOALS
 Everyone else operates on the
forecasting mindset so you have to
be careful about with who...
CHALLENGES WITH
STRETCH GOALS
 You may fall back into the old
mindset and get stressed or feel bad
if you fail. Watch for...
CHALLENGES WITH
STRETCH GOALS
 The stretch goal approach does not
guarantee you good creativity. It will
unleash creativi...
The biggest challenge is
setting Strategic Stretch
Goals is overcoming the Fear
of Failure that has been bred
within us.
88
FAILURE
 We need to transform our
relationship with failure in order to
leverage the aspirational mind-set
and the power ...
YOU FAILURE!!!
“I am as worthless as the slugs
who creep in the crevices of
the deepest, darkest parts of
the ocean!”
90
TRANSFORM YOUR
RELATIONSHIP WITH
FAILURE
“We Celebrate Noble Failure.”
91
Result:
Any accomplishment of positive
magnitude
Success:
Any accomplishment which meets or
exceeds its intended result
Fa...
OHIO STATE
FUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
93
OHIO STATE
FUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
1991 $50,000
94
OHIO STATE
FUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
1991 $50,000 $62...
OHIO STATE
FUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
1991 $50,000 $62...
OHIO STATE
FUNDRAISING PROJECT
Goal Result
1988 $40,000 $48,000
1989 $25,000 $24,000
1990 $25,000 $17,000
1991 $50,000 $62...
LEADERSHAPE
PARTICIPANTS
0
500
1000
1500
2000
2500
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
98
10X
THINKING
Larry Page lives by the gospel of 10x. Most
companies would be happy to improve a product by
10 percent. Not ...
FAILURE WITH
TRADITIONAL GOALS
“We messed up.”
100
FAILURE WITH
STRETCH GOALS
 “Look at our results!”
 “What could we have done
differently?”
 “I’m glad we went for it, b...
FAILURE AND
CREATIVE TENSION
“Mastery of creative tension transforms the
way one views ‘failure.’ Failure is, simply,
a sh...
FAILURE AND
INNOVATION
“Failure is just a part of the culture
of innovation. Accept it and grow
stronger.”
- Albert Yu, SV...
“The only real stumbling block is
fear of failure. In cooking, you’ve
got to have a what-the-hell
attitude.”
-Julia Child
...
GETTING
SMARTER FASTER
“ . . . there’s no substitute for getting
smarter faster. And the way you get
smarter is to screw a...
THE POWER
OF GOALS
*Free Article: The Power of Goals
*Read & Share the Link with others:
www.sheehannonprofitconsulting.
c...
STRATEGY
DEVELOPMENT PROCESS
 ✔ Establish Mission Gap
 ✔ Adopt Aspirational Mindset for
Creating Vision
 ✔ Adopt Aspira...
Clarity on Your
Current Reality
108
STRENGTHS &
WEAKNESSES
 Better to use systematic tools rather
than just asking “what do you think
are our strengths & wea...
VENTURE PHILANTHROPY PARTNERS
CAPACITY FRAMEWORK
ELEMENTS
 Aspirations
 Strategy
 Organizational
Skills
 Human
Resourc...
VPP-MCKINSEY
OCAT 2.0
 Now available on line:
http://mckinseyonsociety.com/ocat
111
YOUR
SWOTs
 Given your vision and commitment to
achieve the strategic stretch goals,
what are the key strengths of your
o...
STRATEGY
DEVELOPMENT PROCESS
 ✔ Establish Mission Gap
 ✔ Adopt Aspirational Mindset for
Creating Vision
 ✔ Adopt Aspira...
The Role of
Strategy
114
WHAT IS
STRATEGY?
 Strategy is more than strategic
planning
 Strategy is not just a collection of
goals and budget forec...
WHAT IS
STRATEGY?
Strategy is an integrated and coherent
explanation of how an organization is
going to guide its performa...
NONPROFIT
STRATEGY
 The purpose of having a strategy is
to guide the organization toward its
desired future.
 Crafting s...
NONPROFIT
STRATEGY
The “cause & effect performance story”
tells how you will get from “here to
there” while . . .
. . . Le...
YOUR
STRATEGY
Your Strategy is “like”
your theme song
119
WHAT IS YOUR
STRATEGY “TUNE?”
 A strategy does not tell you what
actions to take in the fourth week of
the second quarter...
STRATEGY
NARRATIVE
 A Strategy Narrative is a three – four
paragraph summary explanation of
the organization’s strategy.
...
STRATEGY
NARRATIVE
“Leaders of firms are mystified when what
they thought was a beautifully crafted
strategy is never impl...
How does an
organization go about
creating its Strategy &
Strategy Narrative?
123
STRATEGY
DEVELOPMENT
 Review each of your SWOTs and explain
what “Strategic Actions” you should take
regarding it.
 A St...
STRATEGY
DEVELOPMENT
 Evaluate Weaknesses & Threats
 Look for Leverage & Opportunity
125
EVALUATE WEAKNESSES
AND THREATS
 Look at interactions of Weaknesses
and Threats for necessary “damage
control”
 Evaluate...
LOOK FOR
LEVERAGE &
OPPORTUNITY
 Focus on the Strategic Stretch Goals
 What can you use from the current
reality and SWO...
STRATEGY
NARRATIVE
 A cause & effect performance story
with a beginning, middle, and end
 The General speaks:
“First, we...
STRATEGY:
MAKING CONNECTIONS
NAPOLEON
Greatest Military Strategist
Ever?
129
130
YOUR
BATTLEFIELD
131
STRATEGY
NARRATIVE
 Make sure Weaknesses and Threats
are addressed first so organization is
stable enough to move forward...
STRATEGY
DEVELOPMENT PROCESS
 ✔ Establish Mission Gap
 ✔ Adopt Aspirational Mindset for
Creating Vision
 ✔ Adopt Aspira...
“SO WHAT”
MINUTE
 What three things will you do during
the next week to apply some of the
ideas we have discussed today?
...
“SO WHAT”
MINUTE
 Design a new strategic planning
process
 Use the next staff meeting to
brainstorm a vision for your
or...
“SO WHAT”
MINUTE
 Review all of your goals and make
sure they are SMART.
 Distribute the VPP Organization
Capacity Asses...
THE BLOG
 Check it out:
 http://strategyleadershipmissionimpa
ct.blogspot.com/
 Email me if you want on the
distributio...
THANK YOU
VERY MUCH!!!
 For your leadership!
 For your commitment!!
 For the difference you make!!!
138
Robert M. Sheehan, Jr., Ph.D.
Principal
Sheehan Nonprofit Consulting
301.523.1864
RobSheehan@aol.com
www.SheehanNonprofitC...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#1: “It’s Just Sitting on the Shelf.” The
rest of the sins are not necessarily...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#2: Insular Mountaintop Planning. It
can be good for a strategy planning
group...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#3: Over-Emphasis on Fund-Raising.
“What?!?” “Impossible!” I can just hear
my ...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#4: Too Rushed. Rather than rushing
(e.g., “We are doing our strategic plan at...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#5: Lots of Plans, No Strategy.
Strategic planning documents can
contain volum...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#6: No Annual Review. No one can see
into the future when developing a
strateg...
THE SEVEN DEADLY SINS OF
NONPROFIT STRATEGY
#7: Not Ambitious Enough. A strategy
and its associated goals and plans
should...
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2016-01-12 Breakthrough Strategy for Nonprofits

Have you ever had someone tell you to "think outside of the box?" The Breakthrough Strategy session will actually help you see the box you are in and how to escape from it. Learn from the author of Mission Impact: Breakthrough Strategies for Nonprofits how you can design a vision and a set of goals that will revolutionize your organization’s ability to make an impact and help your organization create a strategy that will catapult you into the future. Start applying these new ideas immediately to lead innovation, creativity, and bottom-line impact.

Topics to be covered include: *Identifying your organization’s Mission Gap *Creating an inspirational vision for your future *Setting bold goals which drive innovation *Clarifying a strategy that will catapult you forward

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2016-01-12 Breakthrough Strategy for Nonprofits

  1. 1. Thrive. Grow. Achieve. January 12, 2016 Dr. Rob Sheehan, Robert H. Smith School of Business at the University of Maryland Breakthrough Strategy for Nonprofits
  2. 2. Robert M. Sheehan, Jr., Ph.D. Principal Sheehan Nonprofit Consulting @SheehanImpact RobSheehan@aol.com 301.523.1864 www.SheehanNonprofitConsulting.com © Robert M. Sheehan, Jr., Ph.D., 2016 BREAKTHROUGH STRATEGY 2
  3. 3. ABOUT ROB SHEEHAN *Robert H. Smith School of Business, University of Maryland  Academic Director, Executive MBA Program *Center for Philanthropy & Nonprofit Leadership, UMD *Sheehan Nonprofit Consulting  Strategy, Leadership, Teamwork 3
  4. 4. ABOUT ROB SHEEHAN  Ph.D., The Ohio State University  College of Business  School of Public Policy & Management  Organization Development, Leadership, Organization Effectiveness  Published Researcher 4
  5. 5. ABOUT ROB SHEEHAN  CEO, 18 years, Two National Nonprofits  AΣΦ Educational Foundation, 1981-1990  LeaderShape, Inc., 1992-2001  CFRE (Certified Fund Raising Executive), 1986-2004 5
  6. 6. 6
  7. 7. QUICK SURVEY How many of you think that most people in the nonprofit world work very hard? 7
  8. 8. QUICK SURVEY How many of you think that most people in the nonprofit world are smart? 8
  9. 9. LEAP OF REASON “Incremental Change is Not Enough” -Mario Morino Leap of Reason 9
  10. 10. “INNOVATE OR DIE” “We’re in an environment where its innovate or die.” -Amelia Franck Meyer CEO, Anu Family Services, Hudson, WI The Chronicle of Philanthropy 10
  11. 11. BREAKTHROUGH STRATEGY The intention of the Breakthrough Strategy approach is to drive higher levels of innovation and creativity throughout an organization to it increases its Mission Impact. 11
  12. 12. DESIGN FOR TODAY  To provide you with a “taste” of the Breakthrough Strategy approach  To demonstrate ideas on how you can generate more innovation and creativity in your organization 12
  13. 13. A NEW MINDSET We need a new mindset. 13
  14. 14. NEW PATTERNS OF THOUGHT “The problems we face cannot be solved using the same patterns of thought that were used to create them.” - Albert Einstein 14
  15. 15. BEING UNREASONABLE “The reasonable man adapts himself to the world; the unreasonable one persists in attempting to adapt the world to himself. Therefore, all progress depends on the unreasonable man.” - George Bernard Shaw 15
  16. 16. THE IMPORTANCE OF LEADERSHIP  Nothing we discuss today can be successfully utilized within an organization without effective quality leadership.  Ethical, Inclusive, Authentic, Empowering  Contributes toward building a more just, equitable and thriving society 16
  17. 17. STRATEGY DEVELOPMENT PROCESS  Establish Mission Gap  Adopt Aspirational Mindset for Creating Vision  Adopt Aspirational Mindset for Setting Strategic Stretch Goals  Discern SWOTs  Create Strategy Narrative 17
  18. 18. THE BREAKTHROUGH STRATEGY WORKBOOK  A guide for strategy development that follows the Mission Impact process.  Multiple copies may be downloaded at no cost from web site: www.SheehanNonprofitConsulting.com Other Sheehan articles may also be downloaded at no cost (see pp. 30-31).  An example of the final output from a strategy development process is included on pp. 22 – 28. 18
  19. 19. STRATEGY DEVELOPMENT MAP 19
  20. 20. Your Mission Impact 20
  21. 21. “MISSION GAP”  Imagine what the world would look like if you were accomplishing your mission 100%.  Compare that to the way the world really looks like today.  The difference between the two is your “Mission Gap.” 21
  22. 22. MERRILL COUNTY LITERACY COUNCIL Mission To assure that all adults age 16 or older in Merrill County are literate. Mission Accomplishment Measure The literacy rate in Merrill County, as reported by county officials. 22
  23. 23. MERRILL COUNTY LITERACY COUNCIL Mission Gap With 100,000 adults, age 16 and older, living in Merrill County, the Mission Gap is 20,000 adults. 23
  24. 24. NORTH TEXAS FOOD BANK 24
  25. 25. YOUR MISSION GAP Do you need a Breakthrough Strategy that will drive Innovation in your organization? 25
  26. 26. STRATEGY DEVELOPMENT PROCESS  ✔ Establish Mission Gap  Adopt Aspirational Mindset for Creating Vision  Adopt Aspirational Mindset for Setting Strategic Stretch Goals  Discern SWOTs  Create Strategy Narrative 26
  27. 27. The Power of Vision 27
  28. 28. ANALYTICAL VISIONING  Analyze Internal Capabilities & Predictable Changes  Analyze External Environment & Predictable Changes  Forecast (Extrapolate) Reasonable Future  Establish “Vision” as “Best Case Scenario” 28
  29. 29. ASPIRATIONAL VISIONING  Dream with no constraints  Create an Ideal “Future Picture” based on what is Inspirational and Drives Passion  Create New Internal Capabilities  Search Environment for Opportunity 29
  30. 30. DREAM “Some men see things as they are and say ‘why,’ I dream things that never were and say ‘why not.’” - George Bernard Shaw 30
  31. 31. CHANGING THE WORLD “Because the people who are crazy enough to think they can change the world are the ones who do.” -Steve Jobs 31
  32. 32. DIVINE MADNESS “Let us build such a church that those who come after us will think we were madmen’, said the old canon of Seville . . . Perhaps through every mind passes some such thought, when it entertains the design of a great and seemingly impossible action . . . This divine madness enters more or less into all our noblest undertakings.” -Longfellow 32
  33. 33. 33
  34. 34. STRATEGIC INTENT Companies that have risen to global leadership over the past 20 years invariably began with ambitions that were all out of proportion to their resources and capabilities. But they created an obsession with winning at all levels of the organization . . . We call this obsession “strategic intent.” - Hamel & Prahalad 34
  35. 35. CREATIVE TENSION “the gap between vision and current reality is also a source of energy . . . the gap is the source of creative energy. We call this gap creative tension.” - Peter Senge 35
  36. 36. VISION With your current environment in mind – including your “mission gap” – think about how you could make “quantum leap” progress on your “mission gap” if your organization existed in an “ideal state.” Answer the question: “If you could have it any way you wanted it, what would your organization be like?” Describe it in detail. 36
  37. 37. THE $100 BILLION CHALLENGE 37
  38. 38. Why dream a vision that can never come true? 38
  39. 39. VISION  Visions give us something to aspire to.  Visions can inspire others to help make dreams come true.  Visions provide meaning to the “day to day.” 39
  40. 40. How should leaders establish vision? 40
  41. 41. POSITIONAL LEADERSHIP Leadership by “lamination” vs. Leadership as a catalyst 41
  42. 42. TRANSFORMATIONAL LEADERSHIP MODEL PARTICIPANTSLEADERS 42
  43. 43. LEADING INNOVATION “The role of a leader of innovation is not to set a vision and motivate others to follow it. It’s to create a community that is willing and able to innovate.” Collective Genius Harvard Business Review, June, 2014 43
  44. 44. WHAT FOLLOWERS WANT “Constituents want visions of the future that reflect their own aspirations. They want to hear how their dreams will come true and their hopes will be fulfilled . . . The only visions that take hold are shared visions . . . And you will create them only when you listen very, very closely to others, appreciate their hopes, and attend to their needs.” -Kouzes & Posner, 2009 44
  45. 45. STRATEGY DEVELOPMENT PROCESS  ✔ Establish Mission Gap  ✔ Adopt Aspirational Mindset for Creating Vision  Adopt Aspirational Mindset for Setting Strategic Stretch Goals  Discern SWOTs  Create Strategy Narrative 45
  46. 46. The Importance Of Goals 46
  47. 47. VISION TO ACTION: GOALS  Direct attention to relevant activities  Affect intensity of effort  Affect persistence  Strategic Stretch Goals: Outcome- Based & SMART 47
  48. 48. OUTCOME VS. ACTIVITY GOALS “To mail 11,000 personalized fund-raising letters to our organization’s previous donors by October 1, 2016.” 48
  49. 49. OUTCOME VS. ACTIVITY GOALS “To receive $300,000 in contributions from our organization’s previous donors by December 1, 2016.” 49
  50. 50. SMART GOALS*  Specific  Measurable  Attainable  Relevant  Time-bound *Traditional version 50
  51. 51. ATTAINABLE GOALS  Set with at least 80% chance of success  Sounds reasonable – failure can be followed by negative consequences 51
  52. 52. ATTAINABLE GOALS  What might be the downside of setting goals that are reasonably “Attainable?” 52
  53. 53. ATTAINABLE GOALS  What might be the downside of setting goals that are reasonably “Attainable?”  Goal research:  The more difficult the goal, the higher the level of performance. 53
  54. 54. The Performance Paradox 54
  55. 55. SMART GOALS*  Specific  Measurable  Aggressive, yet Achievable  Relevant  Time-bound *Doug Smith version 55
  56. 56. AGGRESSIVE YET ACHIEVABLE  Allows you to maximize performance, but with a higher chance of failure  If you are a boss & you want to use Aggressive goals, check your rewards system. If you punish failure, people will not want to be aggressive. Reward “performance” vs. goal accomplishment 56
  57. 57. SMART COMPARISONS ATTAINABLE vs. AGGRESSIVE Which SMART formula is best? 57
  58. 58. ATTAINABLE GOALS  Best when the priority is to accurately predict performance of the current system  Good for generating “quick wins”  Good for Learning Goals in new domains  Good for a team that needs to build confidence 58
  59. 59. AGGRESSIVE GOALS  Best when the priority is to maximize the performance of the current system  Maximize intensity of effort  Maximize persistence  Performance vs Goal Attainment must be rewarded 59
  60. 60. SMART GOALS Think of a goal that you are currently working on and write it so it fits the “SMART” guidelines. 60
  61. 61. A NEW ‘A’ FOR SMART*  Specific  Measurable  *Almost Impossible  Relevant  Time-bound *Rob Sheehan version 61
  62. 62. GREAT LEADERS Great Leaders Have a Healthy Disregard for the Impossible 62
  63. 63. IMPOSSIBLE . . . “Space travel is utter bilge.” - Sir Richard Van Der Riet Wooley, The Astronomer Royal, 1956 63
  64. 64. IMPOSSIBLE . . . “While theoretically and technically television may be feasible, commercially and financially I consider it an impossibility.” - Lee Deforest, American Inventor (1873-1961) 64
  65. 65. IMPOSSIBLE . . . “Well informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value.” - The Boston Post, Editorial, 1865 65
  66. 66. IMPOSSIBLE . . . “We must not be misled to our own detriment to assume that the untried machine can displace the proved and tried horse.” - Maj. Gen. John Kerr, U.S. Army (1878-1955) 66
  67. 67. IMPOSSIBLE . . . “Rail travel at high speeds is not possible because passengers, unable to breathe, would die of asphyxia.” - Dionysius Lardner, English Scientist (1793-1859) 67
  68. 68. BULLET TRAIN THINKING It used to take more than six hours to travel by train from Tokyo to Osaka. If the Japanese executives had said to their engineers: “I want you to reduce the time to six hours,” the engineers would have instinctively thought in terms of small improvements, perhaps in the way they boarded passengers and unloaded baggage. But instead, the Japanese executives set out a challenge to reduce the time of the journey to three and a half hours. Faced with such an “impossible” goal, the engineers and designers were forced to reexamine the most fundamental assumptions governing rail travel in Japan. The result of this reexamination was the bullet train. (Jack Welch) 68
  69. 69. TRADITIONAL ANALYTICAL GOALS “This is a forecast of the result we should be able to produce if we work hard at it.” ASPIRATIONAL STRETCH GOALS “This is the very best result we can imagine possible (1% chance) and we have no idea how to make it happen.” 69
  70. 70. STRETCH GOALS You can’t think outside of the box, when you are standing in it! 70
  71. 71. STRETCH GOALS  You use stretch goals, they don’t use you. They do not exist to dominate you and stress you out. They exist to give you something to shoot for, to have fun trying to see if you can make it. 71
  72. 72. STRETCH GOALS “The most fun game is one you’ve never played and your inventing as you go along.” Jerry Seinfeld Fast Company, June 2014 72
  73. 73. STRETCH GOALS  Fully achieving a stretch goal is not the main focus of your attention. You are interested in being creative, progress, and learning. 73
  74. 74. THE MOON SHOT vs CANCER  1961: President Kennedy sets the goal to send a man to the moon and return him safely by the end of the decade.  1970: Congress passes a resolution to cure cancer by 1976 as a fitting celebration for the bicentennial. 74
  75. 75. STRETCH GOALS  You need to create a “safe-fail” situation with a stretch goal. You can’t treat failure as an issue. You have to play. 75
  76. 76. SAFE - FAIL ENVIRONMENT  “‘The fastest way to succeed, IBM’s Thomas Watson, Sr., once said, ‘is to double your failure rate.’ In recent years, more executives have embraced this point of view, coming to understand that failure is a prerequisite to invention. A business cannot develop a breakthrough product or process if it is not willing to encourage risk-taking and learn from subsequent mistakes.” The Failure Tolerant Leader Harvard Business Review, 2002 76
  77. 77. 77
  78. 78. STRETCH GOALS  You have to set your own boundaries on resources you will use to achieve the goal—including the amount of time you spend on it. Make this all part of the “game.” Otherwise, you stress out and/or turn your 70 hour weeks into 90 hour weeks. 78
  79. 79. Pessimists & Optimists Unite Use “Flexible Optimism” 79
  80. 80. STRETCH GOALS  Since the prospects of failing at the stretch goal are high and failure at some goals can have real life implications—when you set a stretch goal, ask yourself “Am I willing to live with the worst probable outcome?” If not, don’t set it that high. 80
  81. 81. STRATEGIC INTENT “Creating stretch, a misfit between resources and aspirations, is the single most important task senior management faces.” -Gary Hamel & C.K. Prahalad 81
  82. 82. THE WALL STREET JOURNAL “Stretch is a concept that would have produced smirks, if not laughter, in the GE of three or four years ago, because it essentially means using dreams to set business targets – with no real idea of how to get there . . . . If you do know how to get there then it is not a stretch target.” -Jack Welch, March 8, 1994 82
  83. 83. START WITH THE END IN MIND *When brainstorming new ways to go about accomplishing a goal, “start with the end in mind.” Imagine you have already accomplished the goal and discern what new ideas you must have used to do that. 83
  84. 84. STRATEGIC STRETCH GOALS  Set five Strategic Stretch Goals for the next five years which:  Inspire you!!!  Would catapult your organization toward your vision and help close your Mission Gap most effectively  Meet the Almost Impossible SMART criteria 84
  85. 85. CHALLENGES WITH STRETCH GOALS  Everyone else operates on the forecasting mindset so you have to be careful about with whom you share your stretch goals. 85
  86. 86. CHALLENGES WITH STRETCH GOALS  You may fall back into the old mindset and get stressed or feel bad if you fail. Watch for that. 86
  87. 87. CHALLENGES WITH STRETCH GOALS  The stretch goal approach does not guarantee you good creativity. It will unleash creativity, but some creative ideas will sound good and not work. You need to decide when to try it again or differently or try something else. 87
  88. 88. The biggest challenge is setting Strategic Stretch Goals is overcoming the Fear of Failure that has been bred within us. 88
  89. 89. FAILURE  We need to transform our relationship with failure in order to leverage the aspirational mind-set and the power of Almost Impossible Goals.  What is your relationship with failure? 89
  90. 90. YOU FAILURE!!! “I am as worthless as the slugs who creep in the crevices of the deepest, darkest parts of the ocean!” 90
  91. 91. TRANSFORM YOUR RELATIONSHIP WITH FAILURE “We Celebrate Noble Failure.” 91
  92. 92. Result: Any accomplishment of positive magnitude Success: Any accomplishment which meets or exceeds its intended result Failure: To fall short of an intended result 92
  93. 93. OHIO STATE FUNDRAISING PROJECT Goal Result 1988 $40,000 $48,000 1989 $25,000 $24,000 1990 $25,000 $17,000 93
  94. 94. OHIO STATE FUNDRAISING PROJECT Goal Result 1988 $40,000 $48,000 1989 $25,000 $24,000 1990 $25,000 $17,000 1991 $50,000 94
  95. 95. OHIO STATE FUNDRAISING PROJECT Goal Result 1988 $40,000 $48,000 1989 $25,000 $24,000 1990 $25,000 $17,000 1991 $50,000 $62,000 95
  96. 96. OHIO STATE FUNDRAISING PROJECT Goal Result 1988 $40,000 $48,000 1989 $25,000 $24,000 1990 $25,000 $17,000 1991 $50,000 $62,000 1992 $150,000 96
  97. 97. OHIO STATE FUNDRAISING PROJECT Goal Result 1988 $40,000 $48,000 1989 $25,000 $24,000 1990 $25,000 $17,000 1991 $50,000 $62,000 1992 $150,000 $143,000 97
  98. 98. LEADERSHAPE PARTICIPANTS 0 500 1000 1500 2000 2500 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 98
  99. 99. 10X THINKING Larry Page lives by the gospel of 10x. Most companies would be happy to improve a product by 10 percent. Not the CEO and cofounder of Google. The way Page sees it, a 10 percent improvement means that you’re basically doing the same thing as everybody else. You probably won’t fail spectacularly, but you are guaranteed not to succeed wildly. That’s why Page expects his employees to create products and services that are 10 times better than the competition. Thousand- percent improvement requires rethinking problems entirely, exploring the edges of what’s technically possible, and having a lot more fun in the process. (http://www.wired.com/business/2013/01/ff-qa-larry-page/all/)99
  100. 100. FAILURE WITH TRADITIONAL GOALS “We messed up.” 100
  101. 101. FAILURE WITH STRETCH GOALS  “Look at our results!”  “What could we have done differently?”  “I’m glad we went for it, but I wish we had accomplished it 100%” 101
  102. 102. FAILURE AND CREATIVE TENSION “Mastery of creative tension transforms the way one views ‘failure.’ Failure is, simply, a shortfall, evidence of the gap between vision and current reality. Failure is an opportunity for learning . . . Failures are not about our unworthiness or powerlessness.” - Peter Senge, The Fifth Discipline 102
  103. 103. FAILURE AND INNOVATION “Failure is just a part of the culture of innovation. Accept it and grow stronger.” - Albert Yu, SVP, Intel Corp 103
  104. 104. “The only real stumbling block is fear of failure. In cooking, you’ve got to have a what-the-hell attitude.” -Julia Child 104
  105. 105. GETTING SMARTER FASTER “ . . . there’s no substitute for getting smarter faster. And the way you get smarter is to screw around vigorously. Try stuff. See what works. See what fails miserably. Learn. Rinse. Repeat.” - Tom Peters, Fast Company, December 2001 105
  106. 106. THE POWER OF GOALS *Free Article: The Power of Goals *Read & Share the Link with others: www.sheehannonprofitconsulting. com/PowerOfGoals/ 106
  107. 107. STRATEGY DEVELOPMENT PROCESS  ✔ Establish Mission Gap  ✔ Adopt Aspirational Mindset for Creating Vision  ✔ Adopt Aspirational Mindset for Setting Strategic Stretch Goals  Discern SWOTs  Create Strategy Narrative 107
  108. 108. Clarity on Your Current Reality 108
  109. 109. STRENGTHS & WEAKNESSES  Better to use systematic tools rather than just asking “what do you think are our strengths & weaknesses?”  Use “systems thinking” as you assess the organization. 109
  110. 110. VENTURE PHILANTHROPY PARTNERS CAPACITY FRAMEWORK ELEMENTS  Aspirations  Strategy  Organizational Skills  Human Resources  Systems and Infrastructure  Organizational Structure  Culture 110
  111. 111. VPP-MCKINSEY OCAT 2.0  Now available on line: http://mckinseyonsociety.com/ocat 111
  112. 112. YOUR SWOTs  Given your vision and commitment to achieve the strategic stretch goals, what are the key strengths of your organization?  Weaknesses?  Opportunities?  External threats? 112
  113. 113. STRATEGY DEVELOPMENT PROCESS  ✔ Establish Mission Gap  ✔ Adopt Aspirational Mindset for Creating Vision  ✔ Adopt Aspirational Mindset for Setting Strategic Stretch Goals  ✔ Discern SWOTs  Create Strategy Narrative 113
  114. 114. The Role of Strategy 114
  115. 115. WHAT IS STRATEGY?  Strategy is more than strategic planning  Strategy is not just a collection of goals and budget forecasts  Most organizations have plenty of plans, but very little strategy  Strategy is an integrated and coherent cause & effect performance story which has a beginning, middle, and end. 115
  116. 116. WHAT IS STRATEGY? Strategy is an integrated and coherent explanation of how an organization is going to guide its performance in the future. 116
  117. 117. NONPROFIT STRATEGY  The purpose of having a strategy is to guide the organization toward its desired future.  Crafting strategy is a creative act, not an analytical function. It is a process of creating the organization’s desired future, considering its current situation, and designing a set of actions which will catapult it forward. 117
  118. 118. NONPROFIT STRATEGY The “cause & effect performance story” tells how you will get from “here to there” while . . . . . . Leveraging your Strengths, Fortifying your Weaknesses, Seizing your Opportunities, and Blocking your Threats. 118
  119. 119. YOUR STRATEGY Your Strategy is “like” your theme song 119
  120. 120. WHAT IS YOUR STRATEGY “TUNE?”  A strategy does not tell you what actions to take in the fourth week of the second quarter of the third year of the strategy any more than a jazz tune tells musicians what exact notes to play three-quarters through the song. They know the tune to follow.  Everyone in the organization should know the strategy as well as they can recognize a popular tune. 120
  121. 121. STRATEGY NARRATIVE  A Strategy Narrative is a three – four paragraph summary explanation of the organization’s strategy.  Most organizations – in all sectors cannot articulate their strategy with a simple coherent statement.  As you design strategy, remember to think of the organization as a “system” of funding, staff, programs. 121
  122. 122. STRATEGY NARRATIVE “Leaders of firms are mystified when what they thought was a beautifully crafted strategy is never implemented. . . . They fail to appreciate the necessity of having a simple, clear, succinct strategy statement that everyone can internalize and use as a guiding light for making difficult choices.” - D. J. Collins & M. G. Rukstad Harvard Business Review, 2008 122
  123. 123. How does an organization go about creating its Strategy & Strategy Narrative? 123
  124. 124. STRATEGY DEVELOPMENT  Review each of your SWOTs and explain what “Strategic Actions” you should take regarding it.  A Strategic Action is one which will help catapult the organization toward the accomplish of the goals, vision, and mission.  Leverage your Strengths, Fortify your Weaknesses, Seize your Opportunities, and Block your Threats.  These build the “themes” of your Strategy Narrative 124
  125. 125. STRATEGY DEVELOPMENT  Evaluate Weaknesses & Threats  Look for Leverage & Opportunity 125
  126. 126. EVALUATE WEAKNESSES AND THREATS  Look at interactions of Weaknesses and Threats for necessary “damage control”  Evaluate all Weaknesses and Threats  Look at interactions of Weaknesses and Threats with Strengths for possible solutions  Fortify Weaknesses as necessary and Block relevant Threats 126
  127. 127. LOOK FOR LEVERAGE & OPPORTUNITY  Focus on the Strategic Stretch Goals  What can you use from the current reality and SWOTs to catapult forward?  Look at interactions of Strengths and Opportunities and other Strengths and Opportunities for ideas 127
  128. 128. STRATEGY NARRATIVE  A cause & effect performance story with a beginning, middle, and end  The General speaks: “First, we are going to…then some of you will…which will then allow others of us to…and that will give us the opening to…which will lead us on to victory.” 128
  129. 129. STRATEGY: MAKING CONNECTIONS NAPOLEON Greatest Military Strategist Ever? 129
  130. 130. 130
  131. 131. YOUR BATTLEFIELD 131
  132. 132. STRATEGY NARRATIVE  Make sure Weaknesses and Threats are addressed first so organization is stable enough to move forward  Be sure to have strong levers  Integrate and balance actions in funding, staffing, programs/services 132
  133. 133. STRATEGY DEVELOPMENT PROCESS  ✔ Establish Mission Gap  ✔ Adopt Aspirational Mindset for Creating Vision  ✔ Adopt Aspirational Mindset for Setting Strategic Stretch Goals  ✔ Discern SWOTs  ✔ Create Strategy Narrative 133
  134. 134. “SO WHAT” MINUTE  What three things will you do during the next week to apply some of the ideas we have discussed today? 134
  135. 135. “SO WHAT” MINUTE  Design a new strategic planning process  Use the next staff meeting to brainstorm a vision for your organization “if you could have it any way you wanted it.” 135
  136. 136. “SO WHAT” MINUTE  Review all of your goals and make sure they are SMART.  Distribute the VPP Organization Capacity Assessment Tool to everyone on staff to identify capacity building opportunities.  Share your key learnings with others at your next staff or Board meeting 136
  137. 137. THE BLOG  Check it out:  http://strategyleadershipmissionimpa ct.blogspot.com/  Email me if you want on the distribution list: RobSheehan@aol.com 137
  138. 138. THANK YOU VERY MUCH!!!  For your leadership!  For your commitment!!  For the difference you make!!! 138
  139. 139. Robert M. Sheehan, Jr., Ph.D. Principal Sheehan Nonprofit Consulting 301.523.1864 RobSheehan@aol.com www.SheehanNonprofitConsulting.com @SheehanImpact FOR MORE INFORMATION 139
  140. 140. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #1: “It’s Just Sitting on the Shelf.” The rest of the sins are not necessarily in order of severity, but this is clearly #1 because it is so pervasive and represents a huge waste of money and time – from staff and volunteers. This sin can be deadly, indeed, when board members realize the hours they have wasted – making strategic plans that are never implemented. And for the attorneys on your Board, those are billable hours. 140
  141. 141. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #2: Insular Mountaintop Planning. It can be good for a strategy planning group to go to the “mountains” to get away from distractions to do work together. But, before you go, gather input regarding the organization’s future from stakeholders – and check in with them when you get back for more input before you publish and laminate the plan (Peter Block calls this error “leadership by lamination”). 141
  142. 142. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #3: Over-Emphasis on Fund-Raising. “What?!?” “Impossible!” I can just hear my fund-raising colleagues’ reaction. Of course we frequently find new fund- raising initiatives as a part of a new strategy. The problem is that as these efforts are highlighted, other important aspects of a strategy are under- emphasized – such as program innovation, leadership succession, strategic partnerships, and more. 142
  143. 143. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #4: Too Rushed. Rather than rushing (e.g., “We are doing our strategic plan at an all day retreat two weeks from Friday, are you available?”), it is wiser to take the time to thoughtfully design and implement a strategy development process. Of course, it should not take forever either. Taking the time can lead to inspiring visions, innovative strategies, and empowered stakeholders – which produce higher performance. 143
  144. 144. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #5: Lots of Plans, No Strategy. Strategic planning documents can contain volumes of plans, activities, and environmental analysis – but many don’t include a real “strategy.” A true strategy articulates the dynamic levers which will catapult an organization toward its desired future, as well as how its key operational areas will interact to create a cycle of higher performance. 144
  145. 145. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #6: No Annual Review. No one can see into the future when developing a strategic plan! So, we make certain measured assumptions about the future – including changes in our internal and external environments. An annual review of assumptions and results is important to keep the plan relevant. You may not change your mission or vision, but you may need to change plans and activities. 145
  146. 146. THE SEVEN DEADLY SINS OF NONPROFIT STRATEGY #7: Not Ambitious Enough. A strategy and its associated goals and plans should be focused on a vision that is big, bold, and inspiring. Many strategic plans are based simply on an analytical forecast of the way things are currently headed. How dull. It was Goethe who said “Dream no small dreams for they have no power to move the hearts of men” and Mandela who stated “Your playing small does not serve the world.” 146

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