Financial Management for Nonprofit Organizations, 3rd Edition

CHAPTER 3MANAGING MISSION, STRATEGY, AND FINANCIAL LEADERSHIP

1. 3.1 VALUE OF STRATEGIC PLANNING
2. 3.2 WHAT IS STRATEGIC PLANNING?
3. 3.3 WHAT ARE THE ORGANIZATION’S MISSION, VISION, AND GOALS/OBJECTIVES?
   1. (a) Strategy and the “Bottom Line”
   2. (b) What Are Strategic Decisions?
4. 3.4 STRATEGIC MANAGEMENT PROCESS
   1. (a) SWOT Analysis
   2. (b) What Are Internal Strengths and Weaknesses?
   3. (c) Using Environmental Scanning to Detect External Opportunities and Threats
   4. (d) Strategic Management Is an Ongoing Process
   5. (e) Financial Leadership, Sustainability, and the Business Model
   6. (f) Sustainability
   7. (g) Business Model
5. 3.5 IMPLEMENTING THE STRATEGIC PLAN
   1. (a) Three Steps in Implementation
   2. (b) Cutback Strategies
6. 3.6 PERFORMANCE MANAGEMENT SYSTEMS
   1. (a) Balanced Scorecard and Dashboard
   2. (b) Portfolio Approaches
7. 3.7 STRATEGIC PLANNING PRACTICES: WHAT DOES THE EVIDENCE SHOW?
8. 3.8 CONCLUSION

Thirty years ago a nonprofit financial management guide would have scarcely mentioned strategy or strategic management. In their expanded roles as strategic business partners, however, financial managers and board finance committees are increasingly involved in strategy development, evaluation, and implementation. According to the Association for Financial Professionals' 2016 benchmark survey of high-level corporate finance professionals regarding financial planning and analysis (FP&A):

FP&A is becoming a forward-looking operation. What began as a function that reported merely on past events is now transforming into one ...