What is Strategic Planning?

Strategic thinking and planning means looking into the ‘white spaces’ to find needs and wants in society not now being addressed. In contrast, making plans with action steps based on known trends is tactical and yet essential to success — to getting through the near-term and creating the ability to, and the map to chase the dreams: the mission and vision.  Mission and vision are destinations with no numbers in them. The tactical plans are more specific with time-frames or deadlines with measurable & numerical milestones. Since these latter plans are necessary to implementing strategy, to progressing toward the mission and vision, they are often called strategic planning. As a result, the more difficult strategic thinking doesn’t happen.

What examples of misuse of the term “strategic” have you found?

Herer’s one example,  an instrtuctional piece, “Strategic Planning For A Credit Card Program.” The sub-title is a clue, “Managing a credit card program is difficult, but it can be very rewarding.” Leadership is akin to strategy, doing the right things; managing is akin to tactics, getting things right, and responding to known forces and trends.

I received invites to attend a socalled “Strategic Collections Conference.” The decision to make loans or issue credit may well have been a strategic decision; once in effect, it changes the company and is difficult to undo. Once a company issues credit, collecting is a necessary operation and various tactics may make collecting more effective.

Why do you care if the word “strategy” or “strategic” are misused?

Dan’s biggest concern is applying the term strategic to tactical — long-range and operational planning — lulls leaders into thinking they are thinking and working on strategy when we are not. Leaders cannot be described as diligent and caring while ignoring the benefits of preparing their organizations for the future generations. For, if your mission and vision are worthwhile to society, they should care about viability and sustainability.

What are the new director requirements of NCUA’s rule 704.1 for Federal credit unions?

There aren’t any new requirements on the face of it. What I mean is, financial literacy within a board of directors has long been a given. The fiduciary duty of care means a board can determine the performance and staus of the organization it serves. Most corporate and nonprofit boards do their governance and fiduciary jobs well with a portion of directors having a working knowledge of financial reports and accounting principles. Even so, we have offered director financial education since the early 1980s. Now, NCUA is saying that all directors need to possess this capability. The real change is that NCUA has clarified its view of that fiduciary duty making non-compliance easier to spot,  and has raised the stakes to all FCU directors.

What makes it so important in the 1st and 2nd tiers of planning that we not pass out to the planning pariticpants things they need, for example, for the meeting we will hold after the planning retreat?

Perhaps you saw a movie called, “Somewhere in Time, ” 1980; Christopher Reeve and Jane Seymour. “A Chicago
playwright uses self-hypnosis to find the actress whose vintage portrait hangs in a grand hotel.” During a romantic
rendezvous he vanishes from her sight when she reads a future date on a coin from his pocket.

What is the meaning of your catch phrase, “Seeking Farther horizons?”

In my opinion, based on decades of working with clients and observing businesses and nonprofit organizations, that we are all too focused on now and the near term. In fact too much time is spend looking at recent historical information instead of what’s ahead. I am seeking, and help clients seek farther planning horizons as our planning model explores in more detail.

Is it okay to skip a year not conducting strategic planning retreat?

Strategic planning, “Yes. It should take a major shift in the way the world works before you re-write a mission, vision, or enterprise strategy. Strategic thinking, on the other hand, is an ongoing process that may at any time cause a reevaluation of those directions and appropriate adjustments. Keep in mind, this answer does not pertain to goals for the next decade. Refer to our planning model for clarity.

What is a mission statement?

A mission statement is an answer to the question, “why do we exist?” A memorable statement weighs-in at 13 words or less. The statement addresses a condition that will exist when the mission is completed. If a mission explains what the organization does, it should address why the organization does what it does. Statements about how you do what you do are the strategies, the behaviors, processes and unique characteristics employed to achieve the mission. Your products or services are what you do; if others do them too, your mission describing them cannot be unique.

How does a vision statement differ from a mission statement?

A mission could be the solution to a society’s needs that last a century. Visions, conditions to produce in twenty to thirty years, are stepping stones to achieving the mission. Visions address outcomes for both the communities served and key things like what the organization wants to be known for, legacy ideas, and big, hairy and audacious goals (uncover BHAGs rather then drive them.)

What new duties came out of NCUA’s regulation 701.4?

In our opinion, the National Credit Union Administration’s revisions do not add duties to a credit union director. NCUA is clarifying what is widely accepted as fiduciary duties. NCUA believes that having a working familiarity with basic finance and accounting practices is essential to a credit union’s success. As a prerequisite to becoming a director that’s a high hurdle. Members may elect directors without that knowledge. Those directors have 6-months to demonstrate  at least a working familiarity with basic finance and accounting practices, including the ability to read and understand the Federal credit union’s balance sheet and income statement. Until NCUA publishes how it will determine the existence of a working knowledge, it is best to see that all have some training. Take advantage of regulator-written quizzes to see if training is needed.

Are we free to use other than Robert’s Rules in board meetings?

Yes, unless your governing documents specify a particular set of rules to use; if it does, change that provision. Robert’s wrote his rules of order to provide structure for large assemblies: legislatures, associations with hundreds, even thousands of members. Check the index in your version of Robert’s under “Boards,” “Rules of procedure.” Robert’s Newly Revised includes rules for small boards much more appropriate for a boardroom. You may download and modify a rules of order I suggest for credit union boards of eleven and fewer; find it under Ideas and Tools. A larger nonprofit board may additional provisions of Robert’s regular rules to increase structure. Where no rules of order is specified, the Chair’s job includes setting the meeting rules.

Is it true that a proper, legal, board decision requires a seconded motion?

No. In a large assembly, a motion is a tool to capture the exact wording so the leadership and the voting assembly can know what it is they are discussing and before they vote on it. The assembly needs a “second” to authorize the time to discuss it. Most effective  Boards discuss a prepared, written proposal when it comes up on the agenda making the motion known; the formality of a motion after the discussion is therefore superfluous. For the record, after discussion, the Chair should ask if there are any objections; then say something for the record: e.g.  ”Hearing none, the motion carries.” Or take a vote and record, “The Board approved it by a majority (or unanimous) vote.”

How long should board meetings last?

Regular board business meetings should not exceed an hour. I hear some boards regularly finish in less than an hour. Some boards justify longer meetings so they can hear reports from staff and remain informed. An alternative is to read periodic written reports. Reading a report may take less time and can be referred to later. No, the secretary should not summarize verbal reports in the minutes.

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