Management Tip
Co-op boards demonstrate leadership
through strategic planning process
By Jean Freeman, President
Jean Freeman & Associates
Editor’s note: The author is a Fairfax, Va.-
based consultant who specializes in
governance and communication issues for
cooperatives, nonprofits and for-profit
companies.
here is no question that
all governing boards are
under the spotlight
today. Due to some
highly publicized
scandals in both publicly traded
companies and nonprofits, in which
board members did not properly fulfill
their duties, many cooperative boards
are taking a closer look at their
governance practices, including their
long-range planning and monitoring
systems.
Some boards, however, are so
enmeshed in short-term compliance
issues that they risk dropping the ball
when it comes to long-term leadership.
One of the best tools available to
cooperative boards in fulfilling their
important fiduciary duties is the
dynamic process of strategic planning.
Few people will disagree that
planning is important. However, many
may be unclear about what strategic
planning is and why it is so critical to
the future success of the organization.
What is strategic planning? Simply
put, it is the process of determining
where the co-op is going over coming
years, how it will get there and how the
co-op will know when it has succeeded.
There is no one correct method of
planning strategically. However, there
are some key tools which should be
considered when a board takes on this
process.
Reach consensus on need
The board must thoughtfully explore
the need for strategic planning. It is
almost as wrong to jump into the
process without first reaching consensus
on the need to do so, as it is to fail to
go through the planning process at all.
Once consensus is reached, the
strategic planning team can begin the
important work ahead. For small
boards, it is common for the team to
include all sitting board members, along
with the manager or CEO and key staff
members. Some co-ops may include
other stakeholders in the process.
Review the mission
Before beginning to plan for the
future, the board should review the coop’s
statement of purpose, or mission
statement. This statement should
concisely describe why the organization
exists, what services it provides and, in
some cases, what core values will be
maintained in the process.
The mission statement is the
umbrella under which all plans should
then fit. The board should look
carefully at the co-op’s mission and
agree that it is still completely relevant
and accurate. If not, this is the
appropriate time to tweak the mission
to reflect the current culture and
membership expectations.
Review former plan
This may not be the first time the
co-op has worked on the strategic
planning process. If there is a strategy
in place, this is a good place to get
started.
Board and management participants
(“the team”) can look with fresh eyes at
what is in place and begin thinking
about how clearly the existing plan
reflects the purpose of the organization.
Create the strategy
Any board member at any time
should be able to answer the question:
“Are we still heading toward the place
we want to be?” The board should do a
thorough analysis of current conditions,
future projections and potential
competition for its cooperative’s goods
and services.
Based on this thorough analysis,
board members can then develop a
strategy. At this point, it is important to
take a good look at membership needs
and the co-op’s ability to create value
for its membership.
Remember, once the strategic
planning process has been completed,
leadership must continue to think
strategically to keep on track.
Good set of tools needed
Mission, vision, values, goals — As
stated before, it would be a waste of
time for a co-op’s leadership to begin a
strategic planning process without
reaching consensus for a clear mission.
If you have established that mission,
and if the board feels passion for that
mission, then you’re ready to move
forward.
The board should at least revisit that
mission to make certain it is indeed why
your organization exists. Some like to
establish additional statements, such as
a vision or a values statement. It isn’t
necessary for all organizations to adopt
the same set of statements. However,
the mission is a necessary statement of
purpose. Goals and objectives will
naturally flow from a targeted mission
statement.
Environmental analysis — A part
of the planning process should include a
hard look at the current and the likely
future environment. This analysis might
include legislation, consumer survey
results, economic development,
technology, competition and other areas
with the potential to impact the co-op’s
ability to stay on mission.
SWOT —Some find the exercise of
identifying strengths, weaknesses,
opportunities and threats (SWOT) a
very helpful tool. The co-op leadership
can benefit by including key staff and
stakeholders in this exercise. Of course,
the team must head into the planning
process open-minded and ready to hear
from different players with different
perspectives.
Executing the plan
No matter how beautiful a
completed plan may look, it is only a
beautiful symbol of a waste of valuable
time unless the board builds in
monitoring requirements to hold others
accountable for keeping the plan in
play. These monitoring tools typically
involve reports from management to
the board at scheduled intervals.
The board of directors is responsible
for establishing the mission, hiring the
manager or CEO, providing financial
oversight and monitoring the progress
of the organization. Once the hard
work of developing a strategic plan is
done, it now becomes much easier to
make sure that goals are accomplished.
The board now has a plan to hand
over to the manager, and the manager
now has a clear guidebook for putting
together an action plan and working
toward attaining the desired goals. It is
clear what types of monitoring must
take place in order to keep track of
progress. The board, with a solid plan,
is positioned to demonstrate
transparency to its membership.
Keep the plan alive
Although a lot of planning takes
place in any well-run company, strategic
planning is not done every month. It
may not even be necessary to conduct
full-blown strategic planning every year.
But it is important to review the plan
and monitor its progress on a regular
basis.
Many organizations “visit” their plan
on a monthly basis, simply by reviewing
monitoring reports from management.
In most cases, plans should be reviewed
at least annually.
Although no board wants to restrategize
frequently, it is important to
remember the plan is not static. We live
in rapidly changing times. Regulations,
technology, climate and member
expectations, to name a few, are not
static areas. Therefore, it makes sense
for a responsible board to be prepared
to revisit the plan formally, as necessary.
