As the opening entry to my new blog, I would like to answer a frequently-asked question: what is the difference between nonprofit business and strategic planning?
Simple answers: each asks unique questions; employs unique processes; and serves unique audiences.
Strategic planning poses external (long range, fully informed, results focused) directional questions; who it seeks to serve and impact; and what results it seeks to achieve. Strategic planning also poses internal directional questions: management and operations; sustainability (which are both internal and external); amd, governance.
Business planning questions center around each of the program customers a nonprofit seeks to serve and impact and first digs deeply to understand that customer's needs, wants and interests; the numbers of these customers; the environment these customers face; and, the options or choices these customers have to address the needs, wants and interest they face. Next, business planning poses the marketing 5P (product, price, place, promotion and value proposition)questions: what will the nonprofit offer (to satisfy needs etc.); what will it cost the customer (money or other exchanges); how the customer gets access to the offering; how the customer will learn of the offering; and, the organization's position often viewed in terms of how this offer will address needs in relationship to other alternatives. Questions must then be answered about management and operations, the financial model, and the risks as well as a strategy for addressing risks.
Of course, the questions are different as is the process for answering the question. Strategic Planning is best accomplished in group getting lots of buy-in from the board, staff and customers and possibly others. Business planning is principally a research project bounded by decisions by a small group of the folks who will be implementing. The board may also sign-off.
PS. Business planning is about all planning focused on serving a nonrpofit's customer (client) etc. For each program coming off a strategic plan, a business plan is warranted.
So, there you have it. My launching blog. Please come back regularly as I look for examples (good and not-so-good) to help us all move our business planning forward.