Key Terms to Understand in Developing a Strategic Plan
Strategic Plan: Is a document that guides and organization, for a specified period of time, towards achieving the organization’s mission.
Environmental Analysis/Situational Analysis/Contextual Analysis: All these terms are used interchangeably to mean an analysis of the current situation to understand the issues on ground that needs intervention. This analysis is done for a specific geographical area where the organization is operating or intends to operate.
PESTLE Analysis: In seeking to gather and interpret information about changes in the wider environment, PESTLE is a commonly used tool. It highlights the importance of identifying trends and anticipating changes in a variety of environments:
- Political: Information on the governance, policies, population, geographical description of intervention area.
- Economic: Economic factors like markets, funding availability, income generating activities, predominant occupation, inflation, income levels, etc.
- Social: Ethnic beliefs, religion, tradition.
- Technological: Trends in technology that can be leveraged on, social medial platforms, virtual meetings and trainings including the challenges associated with the use of technology.
- Legal: Registration and certification requirements for NGO operations in the state, law that can affect the implementation of activities etc.
- Environmental: Climatic conditions, rains, flood, famine or any type of disaster associated with environmental conditions.
SWOT: An assessment too used for internal analysis of the organization. SWOT means Strengths, Weaknesses, Opportunities and Threats. The purpose of the SWOT analysis is to assess the organization and its external environment and identify the forces that are likely to help and hinder its ability to achieve its mission. In conducting a SWOT analysis, the NGO needs to consider all aspects of its internal functioning – the organisation’s ‘programme’ (what it does) and its ‘process’ (how it goes about doing it).
Stakeholder analysis: Involves identifying all those groups who have a stake or an interest in your work. A stakeholder analysis can be useful in deciding who should be involved in the strategy development process.
Vision: A broad futuristic statement of the change/impact the organization wants to see in the society where they work.
Mission: Is the purpose of the organization and how it intends to achieve the vision.
Values: Statements that guide the conduct of the staff of the organization
Strategic Choices: These are approaches an organization chooses from the bunch of alternatives, that will help in achieving the set goals or objectives.
Some examples include partnerships, advocacy, capacity building.
Theory of Change: Is a statement that explains how a given intervention, or set of interventions, is expected to lead to specific development change. In most cases, theory of change is depicted in causal diagram form that explains the context, key interventions, assumptions, outputs which ultimately lead to the expected achieving the vision/ desired impact.
Assumptions: Describe the situations, events, conditions or factors which are necessary for the success of the project, but which are largely or completely beyond the control of the implementing organization.
Risks: Are events that may have a negative impact on the project.