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In my many decades of work in the nonprofit sector, the major issue with strategic planning is ignorance of the organization’s staff and financial resources. Most plans focus on growth and demand additional personnel and money without any thought of where this investment capital is coming from. This is especially true in human service organizations that exist on government contracts – these contracts offer little opportunity to stash money away to use for future endeavors.
The budget and strategic plan have to be developed simultaneously and both have to be realistic. Always choose a strategic planning consultant that demonstrates a good understanding of the organization’s financial position.