Avoiding the Fuzzy Strategy Trap
The importance of setting your own direction
In nonprofit land, having clear and actionable strategy goals is key to making positive change. However, many nonprofits develop vague and aspirational strategies that fail to align with day-to-day operations. This disconnection can lead to strategies that are set and forgotten or function more like a shopping list of initiatives that fail to cohere because they lack an overarching direction.
To get projects off the ground and make the desired impact, they must have a clear purpose aligned with the organisation’s strategic direction. Having clear strategic goals is one of the biggest indicators of project success (1). This alignment ensures that everyone in the organisation can rally behind a common purpose, driving decisions and prioritisation with a clear direction in mind. A north star. Without clear goals, it's almost impossible to design effective strategies, leading to confusion and misalignment.
The absence of a clear strategy can lead to external entities, such as government bodies or funders, setting the direction for your organisation. This can result in a disjointed portfolio of projects that don’t align with your core mission or long-term goals making it challenging to achieve meaningful impact.
Why so fuzzy?
There are several factors that contribute to fuzzy strategies (2)
Externally Driven Objectives: Project objectives are often set by government bodies or funders, leading to a disjointed portfolio of projects that don't cohere, making it difficult to align on a singular strategy or vision.
Conflicting Internal Interests: Internal conflicts and competing priorities can exist under the surface, complicating the establishment of a unified strategic direction. These can exist under the surface and sometimes those creating the strategy are unaware of them.
Strategic Capability: Many nonprofits lack the strategic capability or understanding required to create actionable and cohesive strategies.
Design Disconnected Setting: Strategies may be set by consultants or board members who are disconnected from the internal priorities and culture of the organisation, resulting in plans that are out of touch with day-to-day realities.
Dealh By Word Smithing: For political reasons, language and structure of the strategy can be massaged to the point of losing all meaning. For example “To strive for ongoing excellence and drive innovation that helps all Australians” means very little. I came across a useful word recently. “Flummary” which means meaningless or insincere words. Avoid strategic flummary!
Complex Uncertain Outcomes: Unlike projects in the for-profit sector, the outcomes of NFP projects are often difficult to measure immediately. Their effectiveness can generally only be assessed well after completion, making evaluating success more complex. This can make it easier to justify lofty aspirations rather than clear strategic goals.
The Chicken and Egg Problem
Each of these causes is amplified by the absence of a clear strategy itself. Without a coherent strategic direction, these issues perpetuate a cycle of confusion and misalignment.
The Benefits of Having a North Star
By developing a clear and actionable strategy, nonprofits can retain control over their direction, ensuring that all projects and initiatives align with their overarching mission and strategic goals. This not only empowers the organisation to communicate effectively with funders but also helps in prioritising projects that support the strategic vision, ultimately driving greater success and sustainability.
It allows for:
Negotiate Priorities with Funders: Clear goals make it easier to communicate your organisation’s objectives to funders and shape projects that align with your strategic vision. It also aids in prioritising grants that support your goals.
Finding Common Ground: A unified strategic goal can help identify overlapping priorities, bringing together people with competing agendas to find common ground.
Build Problem-Solving Culture: A clear strategy encourages staff to align their work with larger organisational goals, rewarding strategic thinking and problem-solving over box-ticking and rigidly following processes.
Guardrails for Decision Making: Strategic goals provide a framework for steering committees and boards to make informed decisions, helping avoid distractions from red-herring projects.
Connecting with the Community: A clear purpose helps you connect with the community and effectively communicate the story of your organisation’s mission and impact.
What Makes a Strategy Work
For strategies to be effective and serve as a true north star, they need several key elements:
Consider Organisational Maturity: Strategies must consider the current maturity and capabilities of the organisation.
Align with Culture and Workforce Sentiments: Effective strategies should reflect the culture and feelings of the organisation’s workforce, ensuring they resonate with the people who will implement them.
Tangible and Actionable Goals: Strategies need to consist of tangible, actionable goals rather than vague aspirations.All activities and projects should be clearly linked to and justified by the strategic goals.
Alignment with Funder Priorities: Strategies should align sufficiently with funder priorities to avoid disconnects and ensure ongoing support.
Reflect Community Needs: Effective strategies should be reflective of the needs of the community or clients the organisation serves.
Incorporate Evaluation Mechanisms: Regularly evaluate the effectiveness of the strategy and projects. Adjustments based on feedback can ensure the strategy remains relevant and effective.
Engage Stakeholders Early and Often: Involve stakeholders in the strategic planning process to ensure their buy-in and to gain valuable insights that can shape more effective strategies.
For nonprofits, having a clear strategic direction is not just about setting goals but about creating a coherent narrative that aligns all efforts towards a common purpose. By addressing the causes of fuzzy strategies and focusing on actionable, well-aligned goals, nonprofits can enhance their effectiveness, engage stakeholders more effectively, and drive meaningful change. A well-defined strategy serves as a north star, guiding decisions, prioritising efforts, and ultimately helping the organisation achieve its mission.
References
Chen, H.L., 2011, ‘Predictors of project performance and the likelihood of project success’, Journal of International Management Studies, vol. 6, no. 2, pp. 101–10
Liang, Zhanming; Stanton, Pauline. Project Management in Health and Community Services: Getting good ideas to work (p. 287). Taylor & Francis. Kindle Edition.
