keshavcdas organisational development

A conversation with my CEO: Why Strategies Fail

March.Blog

This is always a pleasure to get an opportunity to work with a CEO, who is accessible, responds to your questions and feedbacks in impressive time and drives an organisation with exemplary motivation and zeal, because of which, his employees feel ‘free to innovate and deliver results’.  We are lucky to have such a CEO in SNV Netherlands Development Organisation, with whom; all the employees get opportunity to have an open chat in a month. In one of such chat sessions, I was asking my CEO about SNV’s strategic focus for next five years; mainly to understand, where do we [SNV] want to go and what do we want achieve and how quickly and efficiently we can do it together!

Response of my CEO for that question was built on his pragmatic understanding of the subject, which was evolved based on his long term engagement in planning and strategy development for government of Indonesia as well as his works with other development organisation and bi-lateral agencies. The answer was short and simple: ‘to survive in a competitive market, we need constantly evolving strategies and success is possible, even in a hostile environment. Long term planning may not work all the times although we can do a planning for plan sake’.

I believe the above mentioned statement reflects that understanding the value of and need for a strategic plan is a great place to start, but just wanting something, isn’t enough. Developing a strategic plan takes discipline, foresight, and a lot of honesty. Regardless how well we prepare, we are bound to encounter challenges along the way. I could find out six key points[1], which should be considered to introduce effective planning in organisation and translating it into real actions, which will bring us, closer to our goal of implementing a strategic plan that actually achieves results and improves our business.

  1. Understanding the environment or focusing on results. Planning teams must pay attention to changes in the business environment, set meaningful priorities, and understand the need to pursue results.
  2. Full commitment.Organisational leaders like CEOs, Managing Director, Country officers must be fully committed and fully understand how a strategic plan can improve their enterprise. Without this knowledge, it’s tough to stay committed to the process.
  3. Having the right people involved.Those charged with executing the plan should be involved from the onset. Those involved in creating the plan will be committed to seeing it through execution.
  4. Willingness to change. Organisation and our strategic plan must be nimble and able to adapt as market conditions change.
  5. Having the right people in leadership positions.Management must be willing to make the tough decisions to ensure the right individuals are in the right leadership positions. The “right” individuals include those who will advocate for and champion the strategic plan and keep the company on track. However, we must avoid micro-managers, which is very evident in many instance and I have witnessed such ‘management killers’’.
  6. Unrealistic goals or lack of focus and resources.Strategic plans must be focused and include a manageable number of goals, objectives, and programs. Fewer and focused is better than numerous and nebulous. Also be prepared to assign adequate resources to accomplish those goals and objectives outlined in the plan.

By adhering to these success factors, we can create an effective planning process, build a realistic business direction for the future, and greatly improve the chances for successful implementation of our strategy.

Keshav C Das, Senior Advisor, SNV Netherlands Development Organisation

New Delhi, March 01, 2015

[1] http://www.forbes.com/sites/aileron/2011/11/30/10-reasons-why-strategic-plans-fail/

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Why does ‘not for profit’ pathetically fail in business development?

October.BlogThere is a paradigm shift in accepting ‘business development’ as one of the core activities in not for profit organisations in recent days. This ‘shift’ is mainly triggered due to the reasons that funders and donors are demanding more accountability, traditional forms of funding are becoming smaller and less reliable, donors are focusing for an increasing engagement with private sector instead of not for profit entities and hence, for-profit businesses are competing with non-profits (not for profits) to serve community needs and lastly needs of community are growing in size and diversity!

In the face of this new reality, an increasing number of forward-looking non-profits are beginning to appreciate the increased revenue, focus and effectiveness that can come from adopting “for profit” business approaches. Increasingly, they are reinventing themselves as social entrepreneurs, combining “the passion of a social mission with an image of business-like discipline, innovation, and determination.”[1]

For many not for profit organisations, this new reality is still a surprise and struggling in a confusing state of operations to survive; taking up quick-fix based remedies like reducing size of human resources, cutting cost, merging with other organisations or merging it multi-country operations into a regional operations. Will this change bring brighter days to them? Answer is clearly NO!

To survive in the present competitive development market, not-for profit companies really need to look for a systemic change in its overall process of business model, orientation and strategies. Non-profit organisations now need to carry out a serious self–reflection and identify its key strengths and services (offerings), which are unique, competitive, affordable and having a ‘brand ’ of these offerings in market. To formulate its services, accurate understanding of community and development needs to be ensured so that organisation can offer higher quality of services by focusing on what it does best, which will eventually enhance credibility with clients and funders. Needless to say that such transformation will happen in organisation only through a continuous learning and improvement.

We have several myths on pursing business development activities; such a business development is a team work, funding can be mobilised with a smart and innovative business proposal or even for many non-profit workers; business development can also be done over an informal beer meeting. These beliefs are relative and its success is also isolated, but it can’t be considered as organisational business development strategy.

In the contemporary competitive environment, non-profit business development should be built upon five key principles:

  • Identifying a set of best mission-related earned income opportunities, where fund raising will be smooth and there is a better chance of winning (it could be water, health, energy or agriculture and any other opportunities). A continuous researching on feasibility of these opportunities is crucial, based on which organisation can select the most appropriate ones to develop realistic business plans
  • Identifying the major assets and capabilities that organisation has to invest in its business development. These asset could be a team of experienced ‘warrior’ for business development or internal fund to invest for business development
  • Recognising that organisation’s vision, mission and strategic goals represent the purpose and context for business development.
  • Gaining a better understanding of the motivations and support for doing business development, both within the organisation and in peers, and, at the last
  • Leadership in the organisation, to drive business development with proven knowledge and skills. We must remember business development is a specialised job.

Sad part is that most organisations do not consider these principles, instead take up business development activities without a clear strategy and plan of actions. Outcome of such initiatives is ‘A Bad Dream’.

Keshav C Das

Senior Advisor

SNV Netherlands Development Organisation

[1] “The Meaning of Social Entrepreneurship” by J. Gregory Dees.