Strategic Planning on First Nations
Joe Melisek
BDO Dunwoody LLP
JAM: Journal of Aboriginal Management
July 2008
How do First Nation communities and their entities increase the likelihood of success in whatever they do? Like anything in life, setting goals and planning to reach those goals increases one’s chance for success. For a First Nation, adopting a strategic planning process at all levels of the organization, regardless of the political environment, can assist. Typically, strategic planning is for the entire organization, but what if your organization has not adopted a strategic planning process? The answer quite simply is that you have to adopt the process within your own department, in your own job or set the expectation for your superiors. This was the message conveyed at the 2008 Aboriginal Financial Officer’s (AFOA) conference where BDO Dunwoody Chartered Accountants and Advisors presented the session “An Introduction to Strategic Planning: The Key to Better Performance in Your Community”. This article summarizes the key points of that presentation and shows how far an organization can go when it adopts a strategic planning process.
The term process is appropriate since strategic planning is more than a one day, feel good brainstorming session. The process described herein outlines: the importance of planning on First Nations today more than ever; the keys to success; issues identification, causes and what needs to be addressed; a solution framework and some best practices.
INTRODUCTION
With the relatively short terms of First Nation elected officials, and a history that is geared to dealing with issues at the Chief and Council level, Aboriginal organizations/communities and their entities tend to have short-term focus on planning, if they plan at all. Aboriginal organizations, especially with current funding agreements, are no different than any other organization. They can be consumed with day–to–day issues, often without consideration of the larger picture, resulting in poor performance, not reaching goals, poor service to community etc.
Strategic planning is an ideal way of overcoming this. The website www.managementhelp.org says “simply put, strategic planning determines where an organization is going, how it's going to get there and how it'll know if it got there or not”. It is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future or in other words “increasing the likelihood of success”.
IMPORTANCE OF STRATEGIC PLANNING ON FIRST NATIONS
Why is it now more important than ever to adopt a strategic planning process on First Nations? The Aboriginal Financial Officers Association tells us that there is/are:
- Complex Financial Environments - Over the past twenty-five years, Aboriginal financial operations have rapidly grown in complexity. Federal transfer payments are increasingly premised upon significant local decision-making and accountability. Further, Aboriginal financial operations are becoming increasingly diversified through economic development, claims settlement, tax regimes, etc. These trends are sure to continue.
- A Funding Shift - First Nations are moving from a “funding agreement” transfer-payment mentality to one where long term strategic planning and revenue generation is critical to survival. This shift is occurring at an unprecedented speed.
- More Sophisticated Requirements for First Nation Manager’s Skills, Knowledge and Ability - The knowledge and skills required of managers in today’s working environment are significantly more sophisticated than that which was required twenty years ago. A lack of effective management can translate into serious repercussions for a community and directly impact on community members.
- A Requirement for First Nation Manager‘s to Move Beyond just Financial Management and Have More Well-Rounded Skill Sets - Financial management is only one aspect of the management skills required. Effective, sound community management in all its aspects (planning, policy development; accountability, performance, program, project, risk and human resource management; communication skills and general management related skills) is critical to community success, self-governance efforts, and social and economic prosperity.
- A Requirement for Effective governance - While the focus in the past has been on capacity development at the management level, progress is also highly dependent on increasing capacity at the elected leadership level – a difficult challenge in light of the political framework in which communities operate.
- Leadership Challenges - Management face significant challenges vis-a-vis elected leadership. However, it is only through the combined efforts of all parties involved in governing and managing communities (elected leaders, CEOs, management, financial management), that progress can be made. Cooperation is essential.
IMPLEMENTATION: THE KEY TO SUCCESS
Over the years as a consultant to management and also a member of a large national firm, I have been a part of many strategic business plans. Many of these plans had participation from all stakeholders, were well thought out and the intentions were good, but sadly most of these plans sit on the shelf or in a folder on the organization’s computer network. So today, as you scroll through that folder and see strat plan 2003 or S/P 2005 or Biz plan 2007, ask yourself … What went wrong? From my experience, the answer to that is simple, it is implementation. However, the execution of the answer is much more difficult.
The dictionary defines implementation as “the carrying out, execution, or practice of a plan, a method, or any design for doing something”. As such, implementation is the action that must follow any preliminary thinking in order for that thought to come to fruition. In short, this boils down to somebody doing something to make the plan actually happen. Are or were you that person? Are you the Chief, the councilors, Manager/CEO, Director of Operations or Department Manager responsible for the implementation? The fact is that all aspects of the organization are responsible for the implementation in some way.
What can you do to make the plan actually happen? Critical to success is that every plan needs a champion. Typically, that champion is a community leader that ensures the plan is initiated, monitored, revised and evaluated. More so, if the champion creates a team of champions at the management and staff level, the likelihood for success increases.
A well designed plan is composed of smaller action plans with key deliverables. Those deliverables have resources and responsibilities assigned to them. If you as a leader can ensure that each employee at the action plan level champions their own deliverable or action item, then the likelihood of success is even greater.
Much like the success of a small business is largely based on the entrepreneur’s ability to manage; the success of a strategic plan for a multi-part organization such as a First Nation is greatly dependent on its governing body to oversee the implementation. In a typical governance model, that oversight is one which ensures implementation of an organizational vision for the future based on fulfilling a realistic mission. On First Nations, the mission usually revolves around providing services through program delivery and economic and social development. Once a First Nation's vision and mission for the community are set, including the goals involved, the objectives desired and the strategies and actions to reach them are set, a strategic plan should be developed to achieve the organization’s vision and fulfill the mission. Simply having a vision and mission is not enough to create dynamic change within a community; a well thought out plan must exist along side them."
What if this isn’t the case? What if you are proponent of planning and those around you are not? You should continue to plan regardless of the situation; it can be contagious. Planning breeds success and all too often one hears “they have a plan … maybe we need a plan?” As a financial officer or manager, why not act as the catalyst for planning? Usually, it is the financial information that stimulates the planning process from a negative standpoint. We are in deficit, we need a plan or during the budget process as the upcoming year’s projected revenue and expenditures land on your desk at the eleventh hour … Where is the plan to go with it? How does it meet our mission, vision and philosophies? How does it address the situation we find ourselves in now and in the years to come? If you ask these questions of your organization, what follows is a straight forward process that answers these questions.
MISSION, VISION AND PHILOSOPHY
A good plan has the organization’s mission, vision and philosophy (MVP) in mind. If the MVP are well stated, the plan need not overstretch their limits, but use the MVP as targets or goals:
- Mission – The purpose or reason for the organization’s existence;
- Vision - The future position of the First Nation;
- Philosophy - Set of values, practices and structures that help people share and leverage their knowledge to meet their First Nation’s needs.
SITUATION ANALYSIS
Once the MVP are identified the next step is the situation analysis. This process is simple and is the most rewarding. Start by collecting, analyzing, and reporting information that describes the current situation and anticipates changes in the future environment by way of an Environmental Scan and SWOT analysis. In other words, determine what the situation is you are operating in and will be operating in and what can you do take advantage of, or mitigate the situation, depending on the issue or what needs to be addressed. These determine driving forces, issues and trends and are used in an internal assessment (strengths and weaknesses) and an external assessment (opportunities and threats) of the First Nation as follows:
Environmental Scan
- Monitoring, evaluating and disseminating of information from the external and internal environments.
- Attempts to:
- Identify the key trends and changes that will affect the way that the First Nation operates.
- Identify the external and internal elements that influence the future of the First Nation.
SWOT
- Strengths - Positive issues internal to the First Nation
- Weaknesses - Negative issues internal to the First Nation
- Opportunities - Positive issues external to the First Nation
- Threats - Negative issues external to the First Nation
- Strength
Your strengths are the advantages of your First Nation. To determine what your strengths are you should ask questions such as:
- What do you do well?
- What community assets or resources do you have?
- Weaknesses
The weaknesses are the limitations or difficulties you encounter on your First Nation. To determine your weaknesses you should ask questions such as:
- What do you do poorly?
- Where could you progress or build capacity?
- What should you steer clear of?
- Opportunity
An opportunity is a favourable or suitable situation that provides a chance for progress or advancement. Useful opportunities can come from such things as changes in:
- The need for local resources
- Technology
- Government
- Demographics, social patterns, lifestyle changes, etc.
- Threat
A threat is a possible risk or constraint you face such as:
- Economic obstacle
- Legislation
- Geographic location
Causes
It is important to identify and group similar causes in order to set priorities and identify what needs to be addressed in a strategic plan:
- What causes a strength or opportunity and how does your First Nation take advantage or build on it?
- What causes a weakness or threat and how does your First Nation mitigate?
What Needs To Be Addressed
Once you have identified the causes, the final step in your situation analysis is to summarize, condense and prioritize causal information:
- When you identify common causes of multiple issues, it enables a more focused approach in developing alternatives and subsequently, a solution for dealing with what needs to be addressed.
- Once a solution is identified, develop GOSA (goals, objectives, strategies and actions).
SOLUTION FRAMEWORK - GOALS, OBJECTIVES, STRATEGIES AND ACTIONS (GOSA)
The outcomes from planning and brainstorming sessions with a focus on:
- Goal – Open-ended statement of an expected accomplishment
- No quantification of what is to be achieved
- No time criteria for completion
- Objective – End results of a planned activity (measurable, results oriented)
- Strategy – A comprehensive master plan stating how to achieve goals and objectives
- Actions – Tasks/activities to execute a strategy and determine scope (W5)
- Timeframes
- Deliverables
- Resources
- Costs
- Responsibilities
- Evaluation/Measure – did we meet the objective and how is it measured?
Managing Conflict
With every planning process comes conflict. It is important to identify the conflict early and address it. Here are some tips:
- Not all conflict is negative; it may result in a positive discussion or solution. Your ability to manage conflict and use the outcomes to your advantage will make you successful.
- Watch out for the silo builders – they are the first to say they will contribute, yet they are territory protectors and will do everything within their power to undermine the process.
- Take advantage of community-oriented people – they are a wealth of knowledge and have a community perspective rather than a political one.
- Avoid the talkers – they are not implementers.
- Use organization or community groups, or create one to address broad range of issues to hear all sides.
BEST PRACTICES
Best practices in strategic planning provide an awareness of what is needed to produce successful results at all stages of the process. Some best practices to initiate, implement and sustain a strategic planning process are:
What's needed to initiate a strategic planning process?
- Community and/or stakeholder engagement and support
- Capacity building/training
- Resources (time, money, external professionals)
- Communication
What’s needed to implement a strategic plan?
Keys to success are:
- Identify four or five priorities at each level of the organization and knock them off one by one to build confidence
- Integrate performance measures with strategy
- Allocate and align resources to support actions
• Involve all stakeholders in the process (e.g. communication)
What sustains a strategic planning process over time?
- Commitment to the process
- Ensures continuity
- Retreat one day every year for follow-up, evaluation and priority development. This is a feel good exercise that celebrates the accomplishments of the past and set new priorities for the future.-
- Runs across terms of government.
- Credibility
- Adhering to your own participation
- Following the documentation you have prepared.
- Communication
- Educate those around you on the existence and merits of the plan and celebrate the accomplishments to get buy-in.
Worth noting is that communication is a best practice throughout the process and finding creative ways to engage and inform your community, organization and/or department is paramount to success.
Once you have mastered the strategic planning process by readying the community for planning and adopting a continuous planning process, the next step is the Comprehensive Community Plan.*
A Comprehensive Community Plan (CCP) is a holistic process undertaken with broad community participation. A comprehensive approach that:
- Enables the community to establish a vision for its future and implement projects to achieve this vision.
- Helps to ensure community projects and programs are thought through, make sense and are the best use of resources.
- Integrates and links all other plans the community has produced with a goal of sustainable development.
Processes that are driven by the community and for the community are most effective at achieving positive change. That's why the comprehensive community planning process is inclusive and represents the perspectives of all members, whether they reside within or outside the community. All members of the community, including Elders, youth, and family representatives, can offer unique and valuable perspectives on community needs, values and priorities.
A comprehensive community plan addresses key planning areas, all of which are interrelated and interdependent: governance, land and resources, health, infrastructure development, culture, social issues, and the economy. Consideration of all key planning areas through one unified process defines community planning as a holistic and integrated exercise that can lead to sustainable development.
In the end, strategic planning in a First Nation organization builds confidence to: plan; implement the plan; and, sustain the plan with the ultimate goal of a comprehensive community plan. A CCP encourages sustainable development on First Nations and indicates to the community, funders, agencies, financial institutions, etc. that the First Nation encourages growth, while respecting history and culture. When a community effectively implements a CCP they are integrating organizational, social, economic and environmental factors into their decision-making, which increases their likelihood for success.
*The Comprehensive Community Plan information from above is excerpted from
http://www.ainc-inac.gc.ca/ai/scr/bc/proser/fna/ccp/ccphb/pub/ccphb-eng.asp
Joe Melisek B.Sc., B.A, CMC is a Certified Management Consultant and Senior Manager of Consulting with BDO Dunwoody LLP in Sault Ste. Marie. BDO is a national chartered accounting and consulting firm primarily concentrating on the special needs of Canada’s not-for-profit organizations, independent businesses, corporations, local governments, credit unions and aboriginal sector clients.
This material is general in nature and should not be relied upon to replace the requirement for specific professional advice.
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