Key points discussed:
1) All charities should have a strategy plan.
Not only is this in the Governance Code, but it leads charities to greater achievements. SATA, for example, had reached a stage of having hardly any tuberculosis patients anymore and a rich pool of funds. Through strategy examination, they pivoted to catering to health of the community and extended their relevance to the public. How wonderful!
In the case of Casa Raudha, the work started with providing crisis shelter for victims of domestic violence. They then added on public education, counselling and other services for a more comprehensive coverage and more effective messaging to the community. Another example of how a strategy plan enhances effectiveness in the performance of our mission!
80% of participants had a strategy plan in their charity.
2) Having inputs from the board is very important for drafting a strategy plan.
All speakers agreed that both board and management should get together to craft strategy. The board’s role is to ask questions and be challenged in turn. Having a knowledgeable consultant can be useful to explore alternatives widely as well as to focus opinions.
70% of participants had Board inputs in their charity’s strategy plan.
3) The strategy plan is not a one-off annual exercise. Think of it as a rolling plan that gets adjusted along the way.
Keeping the plan relevant to developments in the operating environment is a dynamic process. It is useful to have more outward consciousness of what regulators or other charities are doing, as we are not alone in this sector. With a rolling plan, the board can focus on different aspects of the strategy each year.
46% of participants had 3-year strategic plans in their charity.
4) Dynamics between board and management is important for realising the full value of the organization.
There should be tension between management and the board. Board exists to challenge the management and vice versa. When questions are asked, it may challenge accepted norms. SATA’s strategy repositioning led to closure of clinics and relocations to different areas.
5) Need to build that trust between management and board, which allows questions and challenges.
Board has the same purpose as management, and both are accountable. Board is expected to challenge the management to see new perspectives for the greater good. There is a need to continue to communicate. Every board member views risk and opportunity from a different perspective. Interactions before, during and after board meetings are all useful. Practice what you preach.
6) Alignment happens when everyone understands the mission and vision of the organization.
Everyone has to be on the same page and share the same concerns and issues so everyone know what to expect and play their role effectively. Understanding mission and vision is not just articulation, but to internalize and elaborate.
Translating into outcome indicators, targets, KPIs make alignment tangible. Setting these as goals for management heads drives action.
7) Diversity of thought is important and should contribute more dynamism in strategy and outcomes.
Speakers agreed a perfect board and management team were rare. Diversity in experience and expertise would cause questioning and learning from each other. At times Board members were recruited for their potential contribution to strategy or mission.
8) No compromise on ethics.