There’s a big hidden cost that nonprofits often ignore: the opportunity cost of decisions. Failure to consider this can result in poor decisions and/or allocation of resources. Fortunately, there are clear methods to incorporate opportunity cost into strategic decision-making and planning.
Organizational strategy is crucial to success, but only when it has the right balance of vision and details, and words can get in the way. Strategy is often confused with tactics, and that’s when things can go badly.
The world is changing rapidly, and Public Interest Management Group’s clients are on the leading edge of change and solutions. 2018 had many highlights.
Scott Schaffer will be leading PIMG’s daylong workshop, Strategic Financial Management for Nonprofit Executives, in Seattle and Sacramento this fall. Read this blog for details.
PIMG conducted applied research on management practices employed by 43 nonprofits. The best practices - those most closely associated with success - might surprise you. They concern organizational strategy with several specific characteristics. These practices outshine most others in clearly distinguishing successful from unsuccessful nonprofits.
A stock market correction is inevitable, and when it happens, nonprofits will be profoundly affected. Here are three ways that nonprofit leaders can proactively plan for - and navigate through - the storm.
Conventional strategic planning in the nonprofit sector is often ineffective. PIMG's Data-Driven Strategic Planning approach aims to remedy this gap. Rather than focusing primarily on alignment of people within the organization, it’s principally about identifying a strategy that will focus the organization on successful performance. Informed by hard financial and market data, nonprofits are empowered to move confidently toward ambitious, attainable goals.
Check out upcoming offerings including Strategic Partnerships for Nonprofits: Fresh Approaches to Building Scale, Impact and Sustainability” and “Business Planning as a Strategic Tool for Fundraising.”
Having a strategic plan in and of itself does show a statistical correlation with success. Public Interest Management Group has studied a variety of nonprofit organizational success factors, part of our Success Factor Analysis methodology. The most successful organizations are clear about what they’re trying to accomplish and why, and the validity of the methods they’re employing.
Starting and growing an organization is no simple matter. Learn how Public Interest Management Group helped Harold Pearson, founder of Student Program for Athletic and Academic Transitioning, use financial modeling as part of a strategic planning process. Thanks to financial modeling, Pearson could chart a successful and sustainable course for his new organization dedicated to enhancing high school graduation rates for student athletes and preparing Oakland youth for college.
Nonprofit leaders have expressed frustrations about strategic planning, for example that it is often time-consuming, overly-vague, and quickly out-of-date. While newer techniques address some of these concerns, the real issue is too much time spent on strategic planning, and too little (or no) time spent on business planning.