By Molly Penn
We are living in an era of unprecedented change. How many times have I written those words since 2018? Yet here we are again, in a moment in our history that is breaking all kinds of precedent and serving up the future on a platter of uncertainty. So how do we do strategic planning in this VUCA (volatile, uncertain, complex and ambiguous) context? Do we throw out strategic planning in favor of contingency planning?
Contingency Planning
Contingency Planning is an extremely useful tool and very needed in this moment, AND we are not yet clear about what contingencies we are planning for. Nonetheless, this is a conversation that should be practiced regularly in your organization, using the following questions:
- What aspects of our work feel most at risk in this moment – in this environment?
- What cuts do we foresee or predict that seem most likely to happen?
- If those came to pass, what parts of our work would need to be scaled back or cut?
- How should we adapt if that happens – how would that change or affect the other work we do?
- How could we continue to exist if that happened?
We recommend this should be a regular conversation – either monthly or quarterly depending on how susceptible your organization would be to these government cuts. Once the most likely cuts have been identified and you have discussed the implications, it is time to engage in financial scenario planning. How would those cuts affect your agency, and how can you prepare for them so they don’t interrupt your core work? For this we know of several good tools we can recommend, so talk to us!
Strategic Planning
Strategic Planning is about planning for the future you want to create for your organization. At its best, strategic planning is about examining what about your approach might need to change or shift in order to bring you closer to your vision of the future? You want to make sure you are not holding your current approach as sacred and untouchable but really engaging in rigorous discussion about what you might need to change or do differently to be more effective in the current context. First, this requires revisiting and refining your vision of the future you are working to create, and then it involves asking yourselves what about your approach might need to change to make you more effective at realizing that vision of the future. From there, you can start the conversation about goals that will help you make those desired changes. We don’t mean to imply that change is always necessary, but it’s important to engage in the conversation and be open to the possibility of change. That will produce a really effective strategic plan.
Contingency Planning vs. Strategic Planning?
In today’s context, we recommend that our clients engage in both of these things simultaneously. Actually they are substantially different conversations and should not have anything to do with each other. One is about the future and how you might need to grow or change to be more effective. The other is about the present, and what you might need to do to adapt to potential cuts or setbacks. Both are muscles that need to be built and there is no reason why they should not happen congruently.
Think of it with this example, your personal goal in the next 5 years is to run a marathon. That goal will inform how you need to train and build strength and get into condition to be able to do that, in terms of your strength, endurance and mental fitness as well. That said, it is entirely possible (and maybe even likely if you are not careful) that you could injur your leg during your training. This would interrupt your training schedule and force you to regroup. Anticipating this possibility though, with the arc of time it would take you to get into condition would give you a sense of what you could work on while your leg is healing and getting therapy. Then you would need to create a new training routine to get to your goal, taking care not to overstress your leg. That contingency planning means you are prepared for that possibility, and have factored that into how you might approach your overall goal. It does not mean you’ve changed or given up on your goal. You need both to be motivated and to be prepared so it doesn’t knock you off balance if something happens.
Do Both – Simultaneously!
As consultants who do a lot of strategic planning, we know many clients are afraid of the potential impact on their mission of government cuts. But that should not stop you planning for the future, it just means building in contingency planning so you can be prepared for the possibility of interruption towards your long-term goals. Don’t let this moment hinder your dreams, just make plans of how you will address the interruption.
If you want help with this balance, or if you want to discuss how you and your board should be having these conversations right now, we’d be happy to help. Just get in touch and we’d be happy to speak with you.
