Strategic Planning and Budgeting Shelly Trent, SPHR; SHRM - PowerPoint PPT Presentation


Title: Strategic Planning and Budgeting Shelly Trent, SPHR; SHRM


1
Strategic Planning and Budgeting
  • Shelly Trent, SPHR SHRM Field Services Director
    and Kellie Conn, SPHR Director-Elect for TN SHRM

2
Myths About Planning
  • Most people plan
  • Planning takes too long
  • Planning is not an investment
  • Planning is complex
  • Planning should be concrete and unchangeable

3
Why Change? Why Have a Plan?
  • Decreased Membership
  • Unhappy Members
  • Competitive Threats
  • Financial Instability
  • WHAT ELSE?

4
Pressures Against Planning for Change
  • Comfort/Arrogance
  • Fear of Failure (or Success)
  • Lack of Skills
  • Too Much Work
  • WHAT ELSE?

5
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).

6
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.

7
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

8
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
9
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?

10
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.
11
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

12
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

13
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

14
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.

15
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

16
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?

17
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?

18
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.

19
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)

20
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?

21
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.

22
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.

23
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?

24
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.
25
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.

26
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.

27
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

28
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

29
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

30
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

31
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?

32
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!

33
  • Kellie Conn, SPHR
  • State Director-Elect for Tennessee

34
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.)

35
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.)

36
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

37
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

38
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

39
  • 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.
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Strategic Planning and Budgeting Shelly Trent, SPHR; SHRM

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Title: Strategic Planning and Budgeting Shelly Trent, SPHR; SHRM


1
Strategic Planning and Budgeting
  • Shelly Trent, SPHR SHRM Field Services Director
    and Kellie Conn, SPHR Director-Elect for TN SHRM

2
Myths About Planning
  • Most people plan
  • Planning takes too long
  • Planning is not an investment
  • Planning is complex
  • Planning should be concrete and unchangeable

3
Why Change? Why Have a Plan?
  • Decreased Membership
  • Unhappy Members
  • Competitive Threats
  • Financial Instability
  • WHAT ELSE?

4
Pressures Against Planning for Change
  • Comfort/Arrogance
  • Fear of Failure (or Success)
  • Lack of Skills
  • Too Much Work
  • WHAT ELSE?

5
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).

6
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.

7
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

8
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
9
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?

10
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.
11
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

12
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

13
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

14
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.

15
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

16
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?

17
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?

18
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.

19
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)

20
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?

21
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.

22
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.

23
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?

24
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.
25
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.

26
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.

27
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

28
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

29
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

30
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

31
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?

32
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!

33
  • Kellie Conn, SPHR
  • State Director-Elect for Tennessee

34
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.)

35
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.)

36
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

37
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

38
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

39
  • 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.
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