The Biggest Strategic Planning Mistake

For nearly two decades, I’ve worked as a senior leader in and a consultant and advisor to nonprofits across a range of cause areas, mission types, and organization sizes.

When it comes to established nonprofits - organizations that are well out of the startup phase, have 20+ staff members, and are managing upwards of $3 million to $5 million in annual revenue and expenses - here's one of the biggest mistakes that gets made during strategic planning.

It's not about the process - though that can almost always be more equitable, inclusive, and iterative.

It's not about the formatting - though shorter and easier to understand is usually the answer.

It's not about the research that goes into it - though listening more closely to the community and to staff experts can offer tremendous value.

It's that they forgot about the budget.

Listen - I know what you're going to say:

"Veronica, I literally dream about our budget and how we're going to raise this money every night. There is zero chance I'm forgetting about it."

And to some extent, you're right.

Except for this part:

Your budget = your priorities. Full stop.

No combination of strategic pillars, frameworks, beautiful storytelling, or detailed tactics can displace the fact that your budget is the primary guiding document for how your organization spends its resources.

• If you say "Equity is a priority for us."

• If you say "Listening to our community is a priority for us."

• If you say "We want to be seen as a great place to work."

Then it needs to be appropriately represented in the budget - with both staff investments and other investments such as advisory support, consulting, technology, professional development, benefits, and other expenses.

Saying your priorities isn't enough.

You have to show it in how you expect to invest and spend your resources.

Otherwise, you have a plan that can't be put into action - just like way too many before it.

Have you seen this challenge come up in your strategic planning experiences? Join the conversation over on LinkedIn.