Strategic Planning and Budgeting Shelly Trent, SPHR; SHRM

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Strategic Planning and Budgeting

• Shelly Trent, SPHR SHRM Field Services Director
  and Kellie Conn, SPHR Director-Elect for TN SHRM

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Myths About Planning

• Most people plan
• Planning takes too long
• Planning is not an investment
• Planning is complex
• Planning should be concrete and unchangeable

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Why Change? Why Have a Plan?

• Decreased Membership
• Unhappy Members
• Competitive Threats
• Financial Instability
• WHAT ELSE?

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Pressures Against Planning for Change

• Comfort/Arrogance
• Fear of Failure (or Success)
• Lack of Skills
• Too Much Work
• WHAT ELSE?

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What Is Planning?

• The process by which we can become what we want
  to become through setting a strategy.
• The identification of opportunities and the
  allocation of resources to exploit those
  opportunities.
• The rational determination of where you are,
  where you want to go, and how and when you are
  going to get there (GAP).
• It is setting the direction for the
  organizations future (1 year, 3-5 years, and up).

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Components of Strategic Planning
Planning should be done by the board as a full
group. Specific aspects can be handled by
subgroups.

• Planning Base Where are we now? Where have we
  been?
• Results RequiredWhere do we want to be?
• HowSpecifically define how to get there.
• ImplementationIdentify a plan to execute. Who
  does what by when?
• ReviewHow are we doing? Monitor the results.

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Before You Plan

• Mission Statement (what we do purpose of
  organization)
• Vision Statement (how we want it to be future
  state of organization)
• Values (shared beliefs of the org culture
  framework)
• Primary Objectives (how to get there goals)
• Do you have these in place?
• If not, form a subcommittee to develop them and
  have the full group provide input

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Mission Statements Short and Sweet
Usually mission statements are short and easy to
remember. Objectives and value statements are
the steps to reach the mission and how. You
might remember SHRMs abbreviated mission
statement Serve the Professional Advance the
Profession It might help to set your mission
statement using SMART goals Specific,
Measurable, Achievable, Relevant, and
Time-bound). A mission statement provides a
path to realize the vision in line with its
values. (Wikipedia.org)
SHRM offers a sample mission statement resource
under the Templates and Tools section of the
website
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Determining Primary Objectives

• Determine which items are . . .
• Most important to success (top 3-5)
• Able to be accomplished/impacted
• Should be / can be accomplished within 1 year
• Should be / can be accomplished within 3-5 years
• Are there other issues to address for a 5-year
  plan? What are they?
• What are the budget implications, including
  whether you can fund project?
• Are there any barriers to keep you from
  accomplishing item? What?

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Strategic Planning Considerations
It is important to consider SHRMs vision,
mission, and priorities when your chapter or
council conducts planning, so that you can focus
on similar goals and objectives. There is a
strategic planning toolkit online in the
Volunteer Leaders Resource Center
(www.shrm.org/vlrc). Your Field Services
Director can assist you with your strategic
planning efforts.
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SHRMs Vision

• Based on a Strategic Business Review completed
  during 2009, SHRM has developed a five-year plan,
  along with a new vision, mission, and strategy.
• SHRMs Vision
• To be a globally recognized authority whose
  voice is heard on the most pressing people
  management issues of the day - now and in the
  future

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SHRMs Mission

• SHRMs Mission
• Build partnerships
• Provide a global community to share expertise and
  create innovative solutions
• Provide thought leadership, education, and
  research
• Be an advocate on the most critical issues facing
  workplaces and the human resource profession

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SHRMs Strategic Priorities

• Provide high-value resources to existing core
  membership
• Be a global organization
• Operate as a financially sustainable organization
• Evolve positioning to become more of an advisor
  and advocate

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SHAPE as a Planning Tool

• SHRM Affiliate Program for Excellence (SHAPE)
  planning and reporting tool
• 2010 Chapter Planning Workbook and the archived
  volunteer leader webinar are available in the
  VLRC at www.shrm.org/vlrc
• Covers calendar year
• Use this guide to help you plan your objectives.

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Items for Consideration as You Plan

• Historical highs and lows of the
  chapter/council
• Positives and Negatives for
• Membership and Member Services
• Socio-demographics
• Competition
• Technology
• Economic Factors
• Government/Regulations
• Culture
• Structure
• Daily Practices
• Cost Efficiency
• Innovation and New Products/Services
• Financial Stability and Assets

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Strategic Planning SWOT

• A SWOT analysis is also a usual part of planning
• Strengths What do we have that our competition
  does not, and they cant easily get?
• Weaknesses What does our competition have that
  we do not, and we cant easily get?
• Opportunities What are the big-picture issues
  that we should be concentrating on?
• Threats What can get in the way of our success?

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Strategic Planning SWOT

• Another way of looking at a SWOT-type exercise is
  to conduct an environmental scan/historical
  analysis for the past several years.
• Consider the following business trends in the
  local market, your competitors, current
  technology, the economy, supply/demand factors,
  your market segment, your unique selling/value
  proposition, perceptions of your organization vs.
  other similar ones, income/expenses, etc. WHERE
  ARE YOU NOW?
• Then, consider the same issues with this question
  in mind WHERE SHOULD WE BE? -- or -- WHERE DO
  WE WANT TO BE?

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Strategic Budgeting

• Also consider strategic budgeting!
• What are your current and future sources of
  income?
• Have a budget for 3-5 years out, and not budget
  only from year-to-year.
• Budget should NOT be just a checkbook statement
  showing income and expenses.
• Have a future plan of possible income and
  expenses.
• Committee should be appointed to develop future
  budgets based on plan and monitor for changes.
  Committee can determine cost of projects and plan
  to meet future expenses.

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Guide to Financial Management

• Provides essential financial information
• Includes info on taxes, incorporation, and record
  keeping
• Easy to understand
• Excellent resource for all volunteers
• Located in the VLRC under the Finance section
• If you have questions beyond those addressed in
  this guide, contact a local CPA SHRM does not
  provide financial advice, and cannot assist you
  in contacting the IRS
• Be sure you are using your own chapters or
  councils EIN / tax ID number, not SHRMs (these
  numbers cannot be shared)

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Sources of Income

• What are your sources of income for this year and
  next year?
• What might sources of income be three to five
  years from now?

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Current and Future Budget Items

• What are your current budget items?
• What items will you add to your budget next year?
  Three to five years from now?
• If you could do anything you wanted, how much
  would it cost? Its okay to have blue sky
  ideas, but be sure they are attainable.

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HOW? Strategies

• Strategies to implement plan
• Performance measures -- how did we do?
• A common mistake in many plans is that no one
  takes time to delineate the action steps and
  assign tasks.
• Creating a plan wont make it happen.

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Implementation

• Action Plans / Implementation Elements /
  Execution Strategy
• What will be done?
• Who will be responsible?
• When will it get done?
• What will the outcomes look like?
• Who, What, When, Where, How, Why?

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Implementation

• Your volunteers need a road map so they clearly
  understand how to implement the plan and meet the
  goals.

Reward your volunteers for following the plan and
meeting set goals.
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Review

• Monitoring
• Continual review of progress and gaps
• Establishes basis for alternative plans
• Watch for changes in membership, finances, local
  competition, and other items from your original
  SWOT or environmental scan.

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Review

• Controls
• BeforehandWhat can we do to make things go
  right?
• DuringIs what we want to happen, happening?
• AfterwardDid what we want to happen, happen?
• Make changes as you go along. Strategic plans
  should be ever-changing, living documents, and
  flexible.

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Post-Work for Strategic Planning Committee

• Using the final plan, create strategies and an
  implementation map
• Ensure that plan goals are able to be met (no
  impossible dreams)
• Create an Action Plan Worksheet (what gets done
  and who does it by when)
• Produce an Action Plan Implementation Schedule
• Estimate and establish the timeline
• Monitor the implementation

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Outcomes of Strategic Planning

• Clear picture of how trends impact the present
  and future
• Agreed-upon direction/strategy
• Clearly defined mission, vision, values
• Specific plans to improve performance
• Development of team behaviors through volunteers

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Outcomes of Strategic Planning

• Improved decision making
• Better leadershipmore cohesive team
• Development of strategic thinking and
  implementation skills
• Better allocation of resources and
  responsibilities
• Identification of short- and long-term
  attention areas
• Lists of short-term and long-term goals

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Outcomes of Strategic Planning

• Increased recognition from external and internal
  sources
• Consistent, sustained success, as opposed to
  marginal success
• Strategic budgeta plan for 1-2 years and 3-5
  years regarding what budget changes are needed to
  reach plan goals

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Future Leaders/Succession

• Based on the SWOT and environmental scan results,
  what traits or expertise will be needed for
  future leaders?
• Will you change your succession plan?
• Do current leaders have the skills to implement
  and follow the plan?

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After the Plan

• Follow up with your membership to share the plan
  goals and successes keep them in the loop about
  your activities and how you are working for the
  best interests and successful future of the
  chapter/council
• The most important (and the most difficult) thing
  about strategic planning? NOT allowing it to
  just sit on a bookshelf!

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• Kellie Conn, SPHR
• State Director-Elect for Tennessee

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State Councils and Chapters Planning Steps

• Appoint facilitator (internal or external)
• Discuss process with 1-2 leaders agree on
  process that works best for your group
• Hold first meeting to review process, communicate
  expectations of team members (including time
  commitment) and set timeline for steps
• Go through process
• Use plenty of reminders via email, etc., for
  planning team to stay on track (contd.)

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State Councils and Chapters Planning Steps

• Consider several small meetings/steps rather than
  one marathon meeting day
• Consider 3-5 key initiatives for one year keep
  it focused
• Finalize plan, including action items, with team
• Communicate plan to board, hold clarification
  session to be sure everyone is on the same page
• Appoint captains for each initiative from board
• (contd.)

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State Councils and Chapters Planning Steps

• Delegate action items to council/board members or
  committees and the appropriate committee members
• Appoint task forces for initiatives that do not
  need full-time committees
• Follow up
• Check in with captains at each board /council
  meeting (or otherwise on a monthly basis)
• Frequent reminders of timelines/deadlines
• Use last years plan as a starting point for the
  next years

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State Council Case Study Tennessee SHRM

• State Council Tips
• Recruiting your strategic planning team members
• Volunteers from your council
• Strategic planning facilitation experience
• Director, Director-Elect important team
  members not necessarily the best choice for
  facilitator. One can be the hammer sending
  reminders keeping group on track
• Working with team members in different
  geographical locations
• Phone conferencing tried it, didnt work well
• Video teleconferencing volunteers didnt have
  technology
• Planning worksheets what worked best for us
• Try to meet in person 1-2 x we had two May and
  Sept council meetings
• Follow up, follow up, follow up
• E-mailed reminders on scheduled deadlines
  frequent communication about progress and thank
  yous

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Chapter Case Study Middle TN SHRM

• Chapter tips
• Recruiting your strategic planning team
• Members with strategic planning facilitation
  experience
• Volunteers from board encourage participation
  but may want to make it voluntary at the
  beginning
• Advise against president or president-elect
  acting as facilitator unless they are the best
  qualified, skill-wise
• Consider outside member as facilitator
• Held 3 2-hour meetings rather than one marathon
  meeting
• Used pre-work for brainstorming SWOT
• Submitted brainstormed SWOT results, compiled, to
  team before next meeting

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• Questions?
• The recorded archive of this webinar and the
  slides will be available at http//www.shrm.org/Co
  mmunities/VolunteerResources/WebcastArchivesforVol
  unteerLeaders/Pages/default.aspx
• If you need assistance with your strategic
  planning efforts, please contact your Field
  Services Director.