Creating a Strategic Plan for Your NGO

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Creating a Strategic Plan for Your NGO

• NGO Workshop
• Troy Holmberg
• November 10, 2003

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Overview

• Introduction What is a strategic plan and why
  should I have one?
• Elements of a Strategic Plan for an NGO
• Description of Organizational Focus
• Target Market
• Viability
• Growth Strategy
• Management
• 15-20 minute work sessions between each section
• Your goal Create the building blocks for your
  organizations business plan

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SWOT Analysis

• Strengths
• What do we do well?
• What sets us apart?
• Weaknessess
• Where are our deficiencies?
• What do we need to improve upon?
• Opportunities
• Can we become better at our mission?
• Can we expand our ability to help?
• Threats
• What/Who could shut us down or threaten our
  success?

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Part I Description of Organizational Focus

• Identify the problem or need
• Describe your proposed solution to the problem
• Mission Statement
• What you do
• How you intend to solve the problem

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Identify the problem or need

• 49 of Filipinos live in poverty

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• 69 of LDS Filipinos live in poverty. Over 60
  live in rural areas

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Senator Sergio Osmena

• There is clearly a need for Filipinos to
  undergo a paradigm shift in the way they view
  their future economic well-being as individuals
  and as a nation. From the prevailing mind-set of
  depending on government or large business to
  create jobs for them, the Filipinos outlook
  should radically shift toward their giving
  importance to generating their own income and
  jobs for others through the entrepreneurial path.

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The Problem

• 900 Filipino missionaries released each year
• Return to rural provinces
• Few jobs in the provinces
• No money for school
• Limited economic future
• Somewhat less church activity when poor
• Tend to migrate to Manila
• Emigrate to Hong Kong, U.S., Canada, and Arab
  countries

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A Solution

• Create a non-profit academy to teach
  Micro-Entrepreneurship skills to Filipino
  Returned Missionaries

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The Mission Statement

• A mission statement must be simple and clear
• It has focus on what your organization really
  tries to do, then do it in a way that everyone
  can recognize their contribution to the goal
• -Peter Drucker, Managing the Non-profit
  Organization

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Critical Elements to an Effective Mission
Statement

• OPPORTUNITIES
• Where can we, with our limited human and
  financial resources, really make a difference?
• COMPETENCE
• What are we good at? What can we do better than
  everyone else?
• COMMITMENT
• What do we really believe in?
• -Peter Drucker, Managing the Non-profit
  Organization

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Examples of Mission Statements
The academy will annually provide 125 Filipino
returned missionaries with the necessary hope,
motivation, education, and tools needed to plan,
start, and build their own province-based
businesses.
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Yehu Bank Mission Statement

• the mission of the bank is to combat poverty by
  empowering the very poor women of rural kenya to
  help themselves by giving them access to very
  small loans and other basic financial services,
  which can be used to start or expand their small
  businesses

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Description of Organizational Focus

• Who you are
• What you do
• How you solve the problem

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what is the yehu bank?

• the yehu bank is a project being administered by
  choice humanitarian in the rural costal region of
  kenya
• yehu in the swahili dialect means our
• it is a bank for the poor, of the poor, offering
  savings and small loans to women for
  income-generating ventures

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what kinds of small businesses?

• animal husbandry
• vending agricultural products
• vending handmade crafts
• kiosks vending basic necessities

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typical bank member kiosk
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how does it work?

• 5 women form a group and join an existing bank
  centre
• they meet weekly in their own village with a bank
  worker and each contribute a small amount of
  savings for six months
• The first small loan is made to a member of the
  group
• social collateral
• the peer group encourages solidarity among
  members who effectively co-guarantee each other's
  loans

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woman receiving a loan at a weekly centre meeting
with bank manager
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Part I Description of Organizational Focus Work
Session (15 min.)

• Write a paragraph identifying the problem or need
• Describe your proposed solution to the problem
• Write or review your mission statement,
  particularly as it addresses the needs you have
  identified
• Describe what you do as an organization
• Describe your methodology about how you intend
  to solve the problem

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Part II Target Market

• Who is your customer? What is your niche?
• Who else is addressing this need or problem?
• How do you reach your customers and market your
  services?
• What is your organizations competitive
  advantage? What do you do best?

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ACE serves Filipino Returned Missionaries

• 900 Filipino returned missionaries released each
  year
• Over 7,500 Filipino RMs
• 500,000 members of the LDS Church in the
  Philippines

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Marketing Strategy

• Local church leaders
• LDS Employment Resource Centers
• LDS Church Education System
• LDS Church Philippines Area Presidency
• Word-of-mouth by ACE graduates

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ACE Strengths Competitive Advantage (what can
we do better than anyone else?)

• Entrepreneurship Education
• Case-based, hands-on learning
• Relevant, practical training for job creation in
  the rural areas

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Part II Target Market Work Session (15 min)

• Describe your customer? What is your niche?
• Describe the competition who else is addressing
  this need or problem?
• Describe your marketing strategy how do you
  reach your customers and market your services?
• What is your organizations competitive
  advantage? What do you do best?

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Part III Viability

• How do we measure results? How do we know we are
  fulfilling our mission?
• Do we have a plan for sustainability?
• What does it cost to provide our services?
• What is our fund-raising strategy?

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yehu bank key metrics

• of members 3127 members in 70 villages
• Repayment rate 96
• of loans given 3337
• Cumulative saved by bank members 85,000
• Cumulative loaned 250,000 USD
• of employees 16 all native Kenyans
• Retention rate of members 95
• Cost per unit loaned .25 cents
• Portfolio at Risk 4
• Active clients per Credit Officer 230
• Operational Self-Sufficiency 50

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Part III Viability Work Session (15 min.)

• What are the key things you need to measure in
  your organization? How do you know you are
  fulfilling your mission and that your
  organization is succesful?
• Do you have a plan for sustainability? What is
  it? What is your timeline?
• What does it cost to provide your services? What
  is your budget for the next year? Five years?
• What is your fund-raising strategy? Does it
  correspond with the budget you have set?

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Part IV Growth

• What will we look like in 5 yrs?
• What is our strategy for growth?
• Do we desire growth?
• Do we increase number of clients served,
  introduce new services, or both?
• Do we expand geographically, or try to penetrate
  deeper into the current countries we are serving?

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ACE Growth Strategy

• Fixed capacity for number of students attending
  ACE (125 per year)
• Growth by adding services, particularly business
  development services (BDS)
• Joint Ventures
• 10 Distance Learning Centers
• Community Payback Program
• Create opportunities for contracts with LDS Church

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Yehu Bank Growth Strategy

• 15,000 members by end of 2005
• Operating in 500 villages
• 6 branch offices
• 65 employees of the bank
• 120 Operating self-sufficiency
• Growth funded by loans from capital markets
  rather than grants
• Become the leading microfinance organization
  serving rural Kenya

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Part IV Growth Work Session (15 min.)

• Describe what your organization will look like in
  5 yrs?
• What is your strategy for growth?
• Do you desire growth?
• Will you increase number of clients served,
  introduce new services, or both?
• Will you expand geographically, or try to
  penetrate deeper into the current countries/areas
  you are serving?

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Part V Management

• Brief description of the people who are
  responsible for executing your organizations
  mission
• Include members of your board or advisory
  committee if they add expertise, credibility, or
  are key participants in the organization
• Your management team is critical...it is not how
  good your idea is, it is how capable your team is
  of executing that idea that matters to funders!

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Part V Management - ACE

• Steve Gibson Co-founder of ACE
• Started nine ventures, one of which ranked as a
  top 500 fastest growing private business in US
• Entrepreneur-in-residence at BYU Entrepreneurship
  Center. Taught many entrepreneurship courses
• Weekly columnist for Deseret News,
  entrepreneurship and small business advice
• Former board member of EMI, Philippines Area and
  BYU Communications Advisory Board
• Married to Bette Gibson, 4 children

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Management Bios

• Bette Gibson Co-founder of ACE
• 5 yrs at BYU, Early Childhood Development
• Masters from University of Colorado, Denver
• Created a project-based, participatory curriculum
  for ACE
• Tony San Gabriel Director of ACE
• Masters from Asia Institute of Management the
  premier business school in Asia
• 7 yrs with MFI, Philippines Enterprise
  Development Fund
• LDS Church Education System
• Four ACE graduates teach, coordinate outreach,
  student life and biz development services

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Part V Management Work Session (15 min.)

• Briefly describe the people who are responsible
  for executing your organizations mission
• Include members of your board or advisory
  committee if they add expertise, credibility, or
  are key participants in the organization
• Your management team is critical...it is not how
  good your idea is, it is how capable your team is
  of executing that idea that matters to funders!
  Give them a good reason to believe that you can
  pull it off.

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Questions Answers???

• Thank you!!