Revisiting Joe Esposito’s 2010 post which discussed how improper use of financial analysis can obscure problems in strategy, a problem faced by for-profit and not-for-profit organizations alike.
Given the pace of technological change, new sources of professional information and community, the increasing competition for attention, shifting demographics, and an uncertain economy, an effective strategy is more important than ever. While most commercial organizations have developed strategic frameworks, and many now have leadership roles dedicated to strategy, not-for-profit organizations tend to focus less on these activities. While some of this “strategy gap” may be due to relative resource scarcity and its associated time pressures , there are also structural and governance issues at play, particularly in the case of professional associations. These challenges are not insurmountable, however. Professional associations can close the strategy gap by incorporating this series of steps into their strategy development and implementation processes.
Improper use of financial analysis can obscure problems in strategy, a problem faced by for-profit and not-for-profit organizations alike.