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Elizabeth Carroll

When Is Planning Strategic?

Updated: Dec 3, 2023

Strategic Plan or Operational Plan?

Hand with a lightbulb (idea) and hand with three cogs.

Terminology can create problems. People tend to have strong feelings about the use of terms, usually favoring their own definition. When there are differences in perspective about what terms mean or how they are used, I have no interest in arguing about the correct definition. I prefer an alternative where all parties say what they mean so everyone can understand one another. In most situations consensus on a definition isn't necessary but understanding is usually important.


So when it comes to using the terms "strategic plan" versus "operational plan" I prefer to explain how I use them rather than insisting that everyone adopt my definitions.


I think of "strategy" in an organization as making plans that people believe will increase the likelihood of achieving a goal. Since these plans are for the future there is inevitably some degree of uncertainty in any strategy. Strategic planning can happen at any level of an organization - department or unit level plans and institution level plans are all very useful for defining goals and working towards them.


I recommend plans at the organizational level for any small organization and at the department or unit level in larger organizations. A year seems to serve as a great planning cycle, and therefore it's the most common length of unit level plans. I tend to call these plans annual plans based on the planning cycle. Many people define these as operational plans but I prefer the term "annual plan". For me it comes down to the purpose, and the annual plans that I help organizations develop are definitely strategic. Annual planning asks people to step back from their everyday work and consider their department holistically. It asks them to think in year-long chunks about whether their resources and their efforts are helping to achieve the mission. It asks them to choose between different alternatives when the future is not that predictable. All of this seems pretty strategic.


Everyday work in organizations seems far more operational than an annual planning practice. So planning everyday tasks is what I think of as operational. Examples of operational tasks that are typically less strategic include:

  • Planning the timing of hiring and where jobs might be posted

  • Thinking about staffing levels or assignments for projects during the near future

  • Creating lists of arrangements for events

  • Considering the computer and equipment needs for an office

  • Making a list of when basic communications will be released by email and social media

I suppose any documented plans (even those listed above) can be strategic or operational, and the distinction might not be strictly binary. Perhaps all plans can be described by a spectrum with strategic on one end and operational on the other. Each organization or even each person might have their own thoughts about where their plans fall on this spectrum, or whether they would approach the task more strategically or more operationally.


Being Strategic Is Important

Winding path to a chess piece

The point is that carving out some time to think strategically is a best practice. People in most non-profits are very busy tackling a long list of everyday tasks with limited resources. In that environment it can be challenging to find time to do strategic work too. In fact, that is the most common reason I hear for not doing strategic planning - a perceived lack of time. But the truth is that strategic thinking and work is not time consuming, but it has to be intentionally planned because it won't happen in the course of doing everyday work. Strategic planning is a habit that must be cultivated like any other.


Approach your strategic work time with the mindset that it's different from everyday operational work. The value in operational planning is that it supports getting tasks done efficiently and effectively. The point of strategic work is to think more holistically - why the everyday tasks matter, what is the purpose of the organization, who is served and supported. Strategic thinking will also require some thought about conditions outside of the organization.


In my experience, people in non-profits have a lot of heart - they are generous, they believe in community, they thrive on serving and supporting others. In these beautiful conditions it is very easy to think you should be all things to all people, but losing sight of the mission can cost an organization a lot - remember that environment of limited resources. Your organization's mission says what you are and what you do; it also defines what you do NOT do and who you do NOT serve. Are you squirming just thinking about not serving everyone? Yep, sounds right - you are a generous, good-hearted person. If it feels slightly uncomfortable to face what is not your organization's purpose, you might find tremendous benefit from planning time for strategic planning and not just operational work.


While strategic planning is not time consuming, it does have characteristics that some people don't enjoy. I'll tell you what those are so you can prepare yourself (realistic expectations might make for a more positive experience). Strategic planning is about the future and therefore characterized by uncertainty. The puzzle has no right answer, and for many people that can feel frustrating. Here's one way to combat frustration: make your predictions then see how close you come to achieving them. Having measures is an important part of any strategic plan, and with a little patience you can find out how accurate your predictions were. A strategic plan is not designed to precisely predict the future, but when well done it predicts within a narrower range of possibilities than without planning.


Another characteristic of strategic planning that might not appeal to everyone is that it is ongoing; it never ends. Strategic planning lacks that satisfying moment of crossing it off a list. But this too can be easily combated - overall planning may be ongoing, but you can make a list of tasks you will do in your planning work during a year, and those tasks can be crossed off a list. In fact, people are most likely to stick with strategic planning if they make a list of tasks and then assign them work time on specific days. Strategic planning work is typically done in small chunks quarterly or every other month. Putting time on your calendar for thinking, gathering evidence, and documenting the work will satisfy the need to check off items while setting you up for success.


The third characteristic is actually a misunderstanding of planning - many people believe it lacks meaning. I think this comes from a common experience when a plan was designed or written but never really worked through. For example, have you ever worked at an organization that wrote a strategic plan full of assertions about what will occur, but then it was essentially put on a shelf to gather dust? That is a shame because a regular practice of strategic planning is valuable to the organization or unit that's doing the planning. Typically it takes the first year to see for yourself how useful strategic planning can be, but there is great value in the process.


Strategic Planning Exercise

Three steps in a process

As an exercise, I suggest that you collect a little information to find out if your unit already has a planning practice and whether there is room for improvement. Departments are not the only units in an organization that can do planning; committees are important organizational units that rarely make strategic plans (but should).


Define the unit and several objectives

First, define the unit you are thinking about. Is it your department? A committee? Just you if you are a department of one? Find out if there are currently, or ever have been, documented objectives for the unit. If nothing else exists, you might find useful objectives by creatively grouping and interpreting people's individual goals (for annual evaluations) if they are willing to share the gist of them with you. If there are no official objectives, draft a few unofficial ones and know that they can be adjusted later if you're off base (I suggest a maximum of three objectives for this exercise). Objectives should be about outcomes or effects you want to see, not lists of tasks.


Identify efforts made

Second, choose a year-long period that has already occurred (or is nearly done) - the organization's fiscal year can be a great annual planning timeframe because it supports the linkage of planning to budgets. For each objective think of the major domains of effort and activity that your department or unit exerted in the year. Don't be extremely specific - think high level. Name two or three for each objective.


Consider metrics or evidence

Third, think about whether you have any evidence to demonstrate whether each objective was achieved or not achieved. If you want to do a lighter version of the exercise you can just name the evidence sources you know about; for a more thorough exercise you could actually try to find some evidence. Note that this is not the same as saying the activities were done - it's looking for ways of measuring the objectives.


Evaluate what you gathered

Lastly, put it all together and evaluate what you can learn from it. Does this information compiled in this way provide a different perspective than the everyday tasks and plans you are accustomed to? Does it indicate what might need adjusting in the next year? Does it lead to more questions you want to answer or aspects of the work you want to learn more about?


Well look at that - you have yourself a lovely annual plan, and it is definitely strategic! How much time total did it take you to do this exercise? Imagine with a few hours each quarter what kind of a plan you could have. And once all that strategic thinking is documented, you can share it with others to get their insights too. There are some tricks of the trade that more experienced planners can employ to improve your plan (perhaps people in your organization, or outside sources like Eight Ninety Consulting).


You have also probably identified which aspects of planning are done more in your department and which are done less. This varies greatly between organizations, or even varies greatly between the departments within an organization. You probably had an easier time with some steps than with others. Maybe it was easy to name actions and find some metrics, but objectives were hard to find. Maybe objectives were well documented but evidence had not been collected. Each annual plan can be a little more rounded out than the previous one.


Conclusion

Most of us spend a lot of work time being operational. Hopefully if you tried the exercise you have begun to think differently - thinking strategically about the work in your department or committee. Strategic thinking is not time consuming, but it is a habit that requires a bit of cultivation. I hope you will keep checking out the Eight Ninety website for more ideas, how-tos, and resources about strategic planning that can support your own work.


© 2023 Eight Ninety Consulting, LLC

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