Basic Guide to Nonprofit Program Design and Marketing

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Basic Guide to Nonprofit Program Design and Marketing

Much of the content of this topic came from this book:

In nonprofits, the product or service that they deliver are often referred to as a “program.” Thus, the guidelines in this topic are somewhat similar to guidelines in the topic Product Development. A nonprofit that is developing a tangible product to generate a profit for the organization (referred to as a Social Enterprise) might benefit from reading the content in that topic.

This topic in the Library guides the reader to design a nonprofit program and services that are highly integrated with the organization’s mission, strategic planning goals and needs of clients. The resulting program plan also serves as a straightforward basis from which to write program proposals to funders and conduct straightforward program evaluations. References to Web addresses with additional free information are provided in most of the following sections.

These addresses are spelled out in the text of this guide. Therefore, the reader might best be served to print out the entire guide for future reference. (The guide is approximately 12 pages long. This document also includes numerous references to the free, online Basic Guide to Program Evaluation .)

Also consider
Related Library Topics

Learn More in the Library’s Blogs Related to Nonprofit Programs and Capacity Building

In addition to the articles on this current page, also see the following blogs that have posts related to Nonprofit Capacity Building. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.

WHAT’S A NONPROFIT PROGRAM?

Resources and Activities Organized to Provide Related Services

Basically, a nonprofit program is a highly integrated set of resources and activities geared to provide a service or closely related set of services to clients. The typical nonprofit organizational structure is built around programs. (Two other major aspects of the nonprofit structure are its governance (the board and, for some, the chief executive, too) and its central administration.

The board oversees the entire nonprofit organization. The central administration exists to use the nonprofit’s common resources to ensure each program is developed and operated effectively.)

Programs are not the same as activities!!! Many nonprofits have activities, not programs. The following article describes the difference:
What Nonprofit Programs Are — and Are Not

For more information now about nonprofit organizations, their structures and nature, see Overview of Nonprofit Organizations

Program “System”: Inputs, Processes, Outputs and Outcomes

Programs, like other organizations, can seem a highly confusing, amorphous mess that is very hard to comprehend. It can be hard to keep perspective. However, like the overall organization itself, a program is a system with inputs, processes, outputs (tangibles) and outcomes (impacts on clients) — with ongoing feedback among these parts. This systems perspective helps keep clarity about programs and will help a great deal during program planning.

Program inputs are the various resources needed to run the program, e.g., money, facilities, clients, program staff, volunteers, etc. The processes are how program services are delivered, e.g., clients are counseled, children are cared for, art is created, association members are supported, etc.

The outputs are the units of service, e.g., number of clients counseled, children cared for, artistic pieces produced, or members in the association. Outcomes are the impacts on the clients who are receiving the
services, e.g., increased mental health, safe and secure development, richer artistic appreciation and perspectives in life, increased effectiveness among members, etc. The outcomes are the “compass” for the program and help it keep its direction. This is why funders are increasingly requesting outcomes-based evaluations from nonprofits.

For more information now about outcomes-based evaluation, see Program Evaluation.

PREPARATION — CORNERSTONES TO SUCCESSFUL PROGRAM PLANNING

With the following cornerstones in place, the nonprofit is assured of a program plan that has a strong foundation and can survive multiple changes as the program develops.

Program Should Be Closely Aligned with Organization’s Mission

The mission of the organization is its overall purpose in the community. During strategic planning, planners work from the mission to identify several overall, major (or strategic) goals that must be reached and that, in total, work toward the mission. Each program is associated with achieving one or more strategic goals and, therefore, should contribute directly toward the mission as well.

If an idea for a program comes up at some time other than during the strategic planning process, nonprofit board members must carefully ask themselves if the program is really appropriate to the mission of the organization.

Program Planning Should Be Closely Aligned With Strategic Planning

Depending on the nature of the organization, strategic planning typically includes review of the organization’s vision, mission, values, overall issues and goals. Goals associated with services to clients often become program(s) and strategies to reach those goals often become methods of delivering services in the programs.

Because programs must be tied closely to the nature of the organization’s mission and its goals, the program planning process should also be closely aligned to the organization’s strategic planning process
as well. Typically, at a point right after the strategic planning process has identified strategic goals and issues, a team of planners can draft a framework for how strategic goals can be met. This framework is often the roadmap for a new program.

For more information now about strategic planning, see Strategic Planning

Nonprofits must strive to keep down overhead costs, which are often interpreted as the costs of central administration. Therefore, avoid developing programs to fix recurring administrative problems in the workplace.

Involve Board Members in Program Planning

A major responsibility of board members is to set the strategic direction for their nonprofit. Therefore, board members should be highly involved in the strategic and program planning processes in the nonprofit. However, staff members might be strongly involved in determining how services will actually be delivered in the program.

For more information now about the roles and responsibilities of board.

Conduct Program Planning as a Team

The chief executive, key planners on the board, relevant middle managers and representatives from major client groups should all be involved in program planning. (“Relevant middle managers” are those who lead programs or other departments that will integrate or coordinate with the new program being planned.)

As mentioned above, program planning is often initiated as part of the organization’s overall strategic planning process and so is often conducted by the strategic planning team.

Program Planning Should Involve Potential Clients as Much as Possible

One can embark on a wonderful program planning process with all the right parts, but if key clients aren’t involved to provide perspectives from the program user’s point of view, the organization may build a beautiful ladder — but on the wrong roof. Therefore, involve clients as much as possible in initial ideas for a program.

Discuss with them your perceptions of their unmet needs. Try verify if these needs actually exist and how they would like their needs to be met. You might have representatives from client groups review the final draft of your program plan. Note that this involvement of clients is a critical aspect of the marketing process, specifically marketing research.

For more information now about marketing research, see Marketing Research

Don’ Worry About Developing “Perfect” Program Plan

If the organization involves the right people, everyone participates wholeheartedly and continues to reflect on their experiences, then the organization will develop the “perfect” plan for the organization’s programs. The organization remains the only real “expert” on their own planning.

Outside consultants and facilitators can be brought in, but each planning decision is ultimately up to the organization members. The “perfect” program plan will meet the nature and needs of the organization and continue to be updated as organization members learn more about meeting the needs of their clients.

PLANNING YOUR PROGRAM AND SERVICES

Program Framework: Outcomes, Goals, Strategies and Objectives

Basically, planning is taking one’s best shot at working up a “tree” of decisions (decisions that must be made at some time, and the earlier the better) to propose (and often get funding for) developing a program. Your plan doesn’t have to be perfect and, like any plan, it isn’t a rule, rather it’s a set of guidelines that serve as reference for the future.

You can change your plans — just know why and be able to explain (e.g., to your board and funder) why you changed the plans. This planning effort is almost always more than nonprofit personnel want to undertake, but is almost always less than they fear.

Program Outcomes, Goals and Strategies Follow Directly from Strategic Planning

If your strategic planning was done thoroughly then it should be relatively easy to determine program outcomes, goals and strategies. The strategic planning process determines the mission (or purpose) of the organization in terms of uniquely accomplishing certain outcomes for specific groups of clients.

The process also determines the goals needed to work towards the mission and the general methods (or strategies) to reach the goals. As much as possible, goals are specified in terms to meet specific needs among specific groups of clients.

The overall goals of the organization very much determine whom you want to serve, that is, who your target markets will be. For example, strategic goals might be to expand the number of clients you have now, get new clients, get more revenue from current clients, etc.

You may want to develop new services in a current or new market, or expand current services in a current or new market. These examples of strategic goals greatly determine who your target markets will be.

(NOTE: Don’t be overly concerned about completely understanding correct definitions of the terms in this section. As long as your program planning proceeds directly from aspects of your strategic planning, you’ll be headed in the right direction. You might consider goals as measurable accomplishments and objectives as smaller, measurable milestones along the way to the goals. Consider strategies as methods to reach the goals or objectives.)

Program Outcomes

We’ve noted above that intended outcomes are always the compass to point direction for nonprofits and their programs. Outcomes are benefits to clients from participation in the program. Outcomes are usually in terms of enhanced learning (knowledge, perceptions/attitudes or skills) or conditions, for example, increased literacy, self-reliance, certifications, etc. For example:

- Example Outcome #1 — Drop-outs from Minneapolis high schools obtain high school diplomas or equivalent levels of certification
- Example Outcome #2 — Within three months after getting certification, participants obtain at least half-time employment or enroll in an accredited program to further their education

Program Goals

Programs goals should follow directly from, or be the same as, strategic service goals intended to meet specific needs of specific client groups. (Note that there are also strategic goals other than for meeting needs of clients, for example, getting a facility.)

Goals should specify the results from program services and be in terms that are “SMARTER” (an acronym), that is, specific, measurable, acceptable to those working to achieve the goals, realistic, timely, extending the capabilities of those working to achieve the goals and rewarding for them, as well.

Example Program Goal #1: Support at least 600 drop-outs from Minneapolis high schools to obtain diplomas or equivalent levels of certification

Program Strategies

Program strategies (or methods to reach goals) should follow directly from strategies intended to achieve each strategic goal, for example:

Example Program Strategy 1.1 — Conduct high-school equivalency training programs to drop-outs from Minneapolis high schools
Example Program Strategy 1.2 — Provide free transportation to enrollees in the program
Example Program Strategy 1.3 — Provide subsidized child care to enrollees in the program

Program Objectives

Program objectives (or specific, measurable milestones along the way to achieving program goals) are accomplished along the way while implementing the above strategies, for example:

Example Objective 1.2.1: Provide three vans that will each transport eight riders per day (enrollees and/or their children) to and from the program

Designing Each Service in Program (Through Market Analysis)

Developing program services is not unlike developing products or services in the for-profit market, particularly as nonprofits look to more innovative methods to earn revenue from products and services.

Nonprofit services must be marketed, including clarifying which client groups the nonprofit is going to serve (these are target markets), verifying their needs (a basic form of market research), analyzing competitors (nonprofits do have competitors) and potential collaborators, determining the best fee for services, determining how to produce and distribute the services, and how to promote (advertise, manage public image and sell) the services, as well.

Draft Basic Description of Each of Your Services

Typically, a service is a closely related set of activities that accomplishes a specific benefit for clients. Exactly what determines a service in an organization is highly unique to the organization itself. A program can have several services. A nonprofit might sell services separately and/or in a package of related services. For example, from the above example outcome #1, services might include:

Example Service for Outcome #1 — High-school training services
Example Service for Outcome #1 — Transportation services
Example Service for Outcome #1 — Child-care services

By now, you might have a strong, clear sense of what each of your services are. At this point, you might draft for yourself a written description of each of your services. The description should include: nature of your services (arts, social services, education, etc.), the specific groups of clients served by the service, outcomes for them, other benefits to them and where they should go next if they are interested in using the service. Be careful to describe the services in terms of benefits to clients, not to you. For example, address pricing, convenience, location, quality, service, atmosphere, etc.

What Major Groups of Clients Do You (or Do You Want to) Serve? (Target Markets and Customer Profiles)

This paragraph is repeated from above: The overall goals of the organization very much determine whom you want to serve. For example, strategic goals might be to expand the number of clients you have now, get new clients, get more revenue from current clients, etc.

Understanding your program’s target markets makes it much easier for you to ensure that your program remains highly effective. In addition to helping focus the results and evaluation of your services, understanding your target markets helps you to focus on where to promote your services, including advertising, conducting public relations campaigns and selling your services.

If you’ve done a good job so far of strategic planning and program planning, then identifying the primary targets market should be fairly straightforward. However, it is very useful to determine several additional target markets. These additional markets are often where you should focus promotions and mean additional sources of assistance and revenue. For example, a target market that follows from the above examples, might be:

Target Market #1: Dropouts from Minneapolis high schools
Target Market #2: Counselors in Minneapolis high schools
Target Market #3: Parents of drop-outs from Minneapolis schools
Target Market #4: Job placement services, seeking to help people find jobs
Target Market #5: Local businesses looking for employees

The more you know about your clients, the better you might be at serving them. At this point, write down a customer profile, or description of the groups of clients (or markets) who will use your services. Consider, for example, their major needs, how they prefer to have their needs met, where they are and where they prefer to have their needs met, and demographic information (their age ranges, family arrangement, education levels, income levels, typical occupations, major interested, etc).

For more information now about defining your target markets, see How to Identify a Target Market and Prepare a Customer Profile

What Needs Do Your Services Meet for Each Target Market?

By now, you should have a clear idea of the major needs met by each of your services for their primary (or #1) target market. It’s critical that you have a strong sense of the needs that your services are providing to clients. The services should be described in terms that are beneficial to clients — what’s in it for them?

Consider: what needs of theirs are being met, low pricing, convenience, quality, atmosphere, location, etc.

What needs might your services meet among other markets as well? For example, in the above examples:

Needs Met for Target Market #1: High school graduation, eligibility for the job, and further education
Needs Met for Target Market #2: Place to refer high school drop-outs so they can continue their education
Needs Met for Target Market #3: Place to refer their children for continued training, transportation and childcare
Needs Met for Target Market #4: Place to get clients to find jobs for
Needs Met for Target Market #5: Place to get job candidates
Note that identifying the needs of target markets is a major aspect of the marketing process, specifically marketing research. For more information now about marketing research, see Marketing Research

Who Are Your Competitors?

Nonprofits exist to serve their communities. One would think that in this spirit of service, all nonprofits should collaborate for “the common good”. However, nonprofits do compete for the attention, participation and money of their clients — and in many cases, compete for the same items from funders.

Consider the following questions: Who are your competitors? What client needs are you competing to meet? What are the similarities and differences between their products/services and yours? What are the strengths and weaknesses of each of their products and services? How do their prices compare to yours? How are they doing overall?

How do you plan to compete? Offer better quality services? Lower prices? More support? Easier access to services?

For more information now about competitor analysis

Who Are Your Collaborators?

In working together, there’s an economy of scale, or sharing of resources, that lowers costs and focuses more resources on serving clients.

An increasing number of funders are requiring evidence of collaboration planning from nonprofits applying for funding. Many nonprofit leaders naturally struggle with the notion of collaboration, of sharing resources and control with other organizations. Collaboration can be viewed as quite frustrating for nonprofit leaders.

This dilemma invites leaders to carefully consider whom it is that they really want to serve. If collaboration will better serve clients (and it usually will) and better serving clients is the overall goal, then collaboration should be attempted.

In this analysis, consider: Who are potential collaborators with your nonprofit? What client needs might you collaborate to meet? What resources might they bring and what could you bring? What could you do next to cultivate collaboration with other agencies?

For more information now about organizational alliances

What Price Should You Charge?

Nonprofit typically don’t place the same high priority on setting prices that for-profits do. However, funders won’t support a program indefinitely. The nonprofit is always wise to explore what revenue can be generated from a service to offset its operating costs.

Nonprofits that rely on federal funding would be wise to plan programs that recover costs through the use of fees because the federal government is substantially reducing its contributions to nonprofits.

Several major factors influence the pricing for a service. Strategic goals greatly influence pricing. For example, if the nonprofit really wants to get into a new market, then it might charge lower than usual prices in order to generate more clients who buy the service.

The nonprofit might consider changing pricing if the demand for its services are very high or low. Competitor pricing also has a great effect. If competitors are charging much less, then the nonprofit might do well to lower prices. Similarly, if the competitor is charging much more, then the nonprofit might consider increasing its own prices.

In this pricing analysis, consider: Is your nonprofit recouping your costs (time, money, materials, etc.) to provide it? Is it affordable to clients? Would a sliding-fee scale better? What about volume discounts? What is the competition charging? What should be the new fee(s), if any? How do you know?

For more information now about Pricing

What Laws and Regulations Must You Follow?

It’s critical to identify all laws and regulations that effect how you carry out your particular services. Contact local state agencies to determine these laws and regulations, for example, offices of your states attorney or attorney general, secretary of state, etc.

What Name Will You Use for Your Service?

To effectively promote your service, you must have a concise, yet meaningful description of the service. This can be much more complicated than merely picking a name. There are consultancies built around helping organizations to name or brand their products and services. You have to be sure that you’re not using a name that is already trademarked or servicemarked.

You should not have a name that closely resembles an already established name in your area, or clients will confuse your services with those referred to by the other name — or, the organization with the other name may choose to sue you. You need a name that makes sense locally, but if you grow, the name will still be understood elsewhere.

The name you choose for your service will be around for a long time and can have substantial impact on your services are perceived. Therefore, seriously consider some basic forms of market research to glean impressions of different names. For example, convene several focus groups to glean their reactions to various names. Have survey cards that clients can complete to suggest names.

For more information now about Naming and Branding

Protect Your Creations with Copyrights, Trademarks/Servicemarks and/or Patents?

You may want to legally protect the unique combination of ideas, innovations, processes and materials (that is, the “intellectual property”) that produce the products and services of your nonprofit. Communities usually expect nonprofits to operate in the spirit of complete support for the common good of the community.

For some people, this expectation might include that the intellectual property of nonprofits should be owned by everyone in the community, as well. Thus, these people might believe that a nonprofit should not seek to legally own — and/or seek to be reimbursed for duplication of — its products and services.

However, even if a nonprofit does not seek to be paid for duplication of its products and services, the nonprofit should seek to protect the integrity of its products and services, including that their names not be used for other similar products and services and/or that other, poorer quality products and services not be confused with the products and services of the nonprofit.

Therefore, the nonprofit should carefully consider legal protection of its intellectual property. Copyright law protects original “works of authorship”. Patent law protects new inventions and processes. Trademark laws protects words, names and symbols.

For more information now about Intellectual Property

Finalize Description of Each of Your Services

At this point, you’ve thought — and hopefully learned — more about each of your nonprofit’s services. You’ve learned more about the service’s target markets, benefits to clients, competitors, collaborators, pricing and naming. Now go back to your drafted description of each of your services and update the descriptions with what you’ve learned. Include description of:
1. The business you’re in, for example, service, manufacturing, etc.
2. The type of your service, for example, arts, advocacy, social services, education, civic, cultural, etc.
3. The target market for the service. Include description of the target market.
4. Include your strategies regarding pricing, distribution, advertising and promotion strategies, etc.

Planning Program Promotions (Advertising, Public Relations and Sales)

Promotion keeps your service in the minds of your clients and helps stimulate demand for your services. Promotion involves ongoing advertising, public and media relations, and can include sales and customer service. All of these build from having a clear idea of how you want position your nonprofit and its services in the target markets (or groups of clients) that you are aiming to serve.

Positioning Your Nonprofit and Its Services — the Positioning Statement

Simply put, positioning is determining how you want others to perceive your nonprofit and/or each of its services. Positioning builds from many of the above-mentioned activities, including clarifying target markets, which of their needs your services meet, how your services uniquely meets these needs, the price of services, how your nonprofit “stands up against” competitors, and the unique name of your services.

Your market position can be described by your positioning statement. Advertising and promotions often work from this positioning statement. This statement usually includes two to five sentences, but should be very brief and concise. It should clearly depict your organization in the way that you want others to perceive it. When writing it down, consider answers to the question: “We are the nonprofit that …”

For more information now about Positioning

Sales Planning

Sales can be a strong component of your advertising and promotions activities. In addition, the budget for advertising and promotions is often determined as a percentage of the revenue expected from sales. Therefore, we’ll look at sales at this point in the advertising and promotions information.

Sales involves most or many of the following activities, including cultivating prospective buyers (or leads) in a market segment; conveying the features, advantages and benefits of a service to the lead; and closing the sale (or coming to agreement on pricing and services). Sales forecasts (or projections about sales accomplished in terms of money made, units sold, etc.) are often used as the basis for determining how much to budget for advertising and promotions and for public relations efforts. Sales forecasts are often made on the basis of market research about the market and industry.

Unfortunately, many people in nonprofits have strong feelings against sales. They perceive sales as heavy-handed and manipulative efforts to force someone to do something that they really don’t want to do.

However, sales is evolving from this old-fashioned, heavy-handed approach to more relationship-based approaches geared toward identifying the needs of clients and helping clients decide if the services meet those needs. If a person really believes strongly in their services, then sales can be very meaningful experience. It’s often wise to send personnel to basic forms of sales training. This can make a big difference.

The best sales techniques usually include strong skills in questioning and listening. Good sales techniques also include ensuring strong methods of customer service — current customers are often the best sources of customers for new products and services. Probably the best approach to ensuring strong sales is knowing the needs of clients — this starts with effective market research.

Regarding your sales planning, consider: What target markets will be approached? How will you conduct sales efforts with them? How much do you expect to accomplish in sales (consider terms of outputs, such as dollars made, clients recruited, or other units of service). How do you generate sales contacts and potential customers (or leads) among each target group? Who does follow-up and presentations? Who actually closes the sale? How will you know if your sales efforts are effective?

For more information now, see Sales Basics
For more information now, see Customer Service
For more information now, see Questioning
For more information now, see Listening

Planning Your Advertising and Promotions

Advertising and promotions is continuing to bring a service to the attention of potential and current customers. Advertising and promotions are best carried out by implementing an overall advertising and promotions plan. The plan often includes plans for a promotional campaign, including an advertising calendar and media plan.

The goals of the plans should depend very much on the overall goals and strategies of the organization, and the results of the marketing analysis, including the positioning statement. Successful advertising and promotions depends very much on knowing what target markets you want to reach, what features and benefits you want to convey to each of them, what methods and media you will use to convey it to them, who is responsible to implement the methods and how much money is budgeted for this effort.

When selecting methods, consider what communications methods and media will be most effective in reaching target markets and when. Consider, for example, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct mail, special events, brochures, neighborhood newsletters, etc. What media is most practical for you to use in terms of access and affordability? You can often find out a lot about your clients preferences just by conducting some basic market research methods.

For more information now, see Basic Methods to Get Customer Feedback
For more information now, see Major Methods of Advertising and Promotion
For more information now, see Planning your Advertising

Public and Media Relations Planning

Public and media relations includes ongoing activities to ensure the nonprofit has a strong public image. Public relations activities include helping the public to understand the nonprofit and its services. Similar to effective advertising and promotions, effective public relations often depends on designing and implementing a well-designed public relations plan.

The plan often includes description of what you want to convey to whom, methods to convey it, who is responsible for implementing the methods and how much money is budgeted to fund these activities. Similar to advertising and promotions planning, a media plan and advertising calendar can be very useful in a public relations plan, as well.

Often, public relations are conducted through the media, that is, newspapers, television, magazines, etc. Publicity is mention in the media. Organizations usually have little control over the message in the media, at least, not as much as they do in advertising. Regarding publicity, reporters and writers decide what will be said.

Regarding public relations, consider: What groups of stakeholders do we want to appeal to and how? What impressions do you want each of your stakeholder to have? What communications media do they see or prefer the most? Consider advertising, collaborations, annual reports, networking, TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, direct mail, special events, brochures, neighborhood newsletters, etc. What media is most practical for you to use in terms of access and affordability? What messages are most appealing to each stakeholder group?

For more information now, see Major Methods of Advertising and Promotion
For more information now, see Public Relations

Regarding media relations, consider: Who in your organization should respond to calls from newspaper reporters, etc? What should organization members say to the reporters? Do you have a script that your organization can reference to represent the organization to the community? Do you have guidelines for writing press releases and are these guidelines used?

For more information now, see Managing Media Relations
For more information now, see Major Methods of Advertising and Promotion

Customer Service

The for-profit arena has seen dramatic improvements in customer service as customers become more discerning in their selection of products and services (clients of nonprofit organizations are also customers of the organization). Organizations are realizing that the best source of customers for new products and services are current customers — if their needs are being met.

As with many other areas in this guide, the place to start when understanding customer service may be some basic methods of market research.

When considering how you will ensure strong “customer” services, consider: Are clients very satisfied with your services? How do you know? If not, what can you do to improve customer service? How can you do that? What policies and procedures are needed to ensure strong customer service. Include training in your considerations, including skills in interpersonal relations, such as questioning, listening, handling difficult people, handling interpersonal conflicts, negotiating.

For more information now about Customer Service
For more information now, see Basic Methods to Get Customer Feedback
For more information now, see Questioning
For more information now, see Listening
For more information now, see Handling Interpersonal Conflict
For more information now, see Handling Difficult People
For more information now, see Negotiating

Planning Service Delivery Methods

These methods are primarily in regard to building and reproducing the service (producing it), and then bringing the particular target market and service together (distributing the service). How your nonprofit produces and distributes services depends very much on the nature and needs of your organization and services. However, there are some common questions you should address in your planning.

Producing Each Service

If your program planning and marketing is successful, then hopefully you can expect an increase in demand for your services. You consider the following questions: What resources are needed to build the service? What resources are needed to reproduce the service (that is, provide it multiple times)? How will you meet expected demand for the services over the next six months? Twelve months? Eighteen months?

Note that the development and implementation of various production methods do not have to be addressed in detail in a marketing plan — these topics are usually included in the operations or management planning for the program. However, production should be generally considered during the marketing analysis to ensure the eventual detailed production planning takes into consideration the needs of target markets and having their needs met on time.

Distributing Each Service

Matters of distribution of service can be critical for nonprofits, especially if they are providing critically needed services to specific groups of clients. For example, low-income clients may not be able to afford transportation to other areas to receive your services.

Carefully consider: What distribution channels should you consider, for example, should clients come to your facility, you visit their offices, can you provide services over the telephone, etc? What resources are needed to bring together your services and your target markets? What major steps need to occur to accomplish these distribution channels?

Note that detailed planning about developing and maintaining distribution channels is often included in the operations or management plans, rather than in the marketing plan. However, the marketing analysis should focus on selecting the methods of distribution that best meet the needs of target markets and the nonprofit.

For more information now about Distribution

Planning Methods to Measure Success of Program

The best indicator of the success of a program is clear, continued evidence that its services are meeting the previously unmet needs of its clients. To clearly conclude this success of a program, you need to clear indicators of success.

Building In Key Indicators of Success

It’s important during program planning to build in clear indicators of the success of the program. For example, consider establishing indicators that are associated with outcomes intended from the program, such as “increased self-reliance (an outcome) for 70% of adult, African American women living in the inner city of Minneapolis as evidenced by the following measures (indicators) …”

An outcomes-based evaluation will help you ascertain if you’ve reached this indicator or not. You can also resort to indicators in terms of outputs (tangible results), for example, the number of clients served, money made, milestones accomplished, measures of satisfaction among clients per questionnaires, etc.

Note that measures of outputs are very weak indicators of the success of achieving outcomes. As a result, many evaluators and funders will assert that more valid measures toward outcomes must be used.

If you struggle with identifying key indicators of success, then imagine the program operating in a highly successful manner at some time in the future. Then describe what features of the program indicate that the program is successful.

For more information now about program evaluations, their planning and how to carry them out, see Program Evaluation

Conducting Initial, Pilot of Program

Consider planning a six-month or one-year pilot effort. The pilot will be a sort of mini-program that will reflect many of the aspects of a full-blown program. However, planning and operations regarding the pilot will include numerous reviews and assessments from which to learn from experiences around the pilot program.

This learning will go into planning for the full-blown program. Note that funders are often highly cooperative in funding pilots as an approach to research or verify the nonprofit’s proposed plans.

Program Reviews

Program reviews are regular examination of the program’s activities to assess how the program is doing. A program review team should probably include the chief executive, the head of the new program and one or two other program directors, particularly those from programs that closely coordinate with the new program.

A board planner should be involved, if possible. Examine if the program seems to be following the original plan. If it’s not, the deviation is not as important as understanding why and assessing if the
deviation was necessary.

Take a look at the key indicators as noted in the plan. What is the progress toward the key indicators? What major problems exist and what is needed to address them? How are the actual costs compared to the planned costs? Are any actions needed to avoid financial problems? What would you do differently about the program if you could do anything? What limitations are holding you back from what you would ideally do if you could? What are you learning from the program implementation so far?

Evaluation of Plans (Marketing and Promotions, Public and Media Relations and Sales)

One of the most effective ways to ensure the success of your program is by evaluating the implementation of the plan. The plans are not law — they’re a set of guidelines and controls. If the plans needs to be changed, then fine — but know why they need to be changed and how.

Evaluate Progress Toward Goals and Objectives

1. Are goals and objectives being achieved or not? If they are, then acknowledge, reward and communicate the progress. If not, then consider the following questions.
2. Will the goals be achieved according to the timelines specified in the plan? If not, then why?
3. Should the deadlines for completion be changed (be careful about making these changes — know why efforts are behind schedule before times are changed)?
4. Do personnel have adequate resources (money, equipment, facilities, training, etc.) to achieve the goals?
5. Are the goals and objectives still realistic?
6. Should priorities be changed to put more focus on achieving the goals?
7. Should the goals be changed (be careful about making these changes — know why efforts are not achieving the goals before changing the goals)?
8. What can be learned from our monitoring and evaluation in order to improve future planning activities and also to improve future monitoring and evaluation efforts?

Evaluate Response from Clients

For example, consider:
1. Did customers respond to advertising and promotions?
2. Did stakeholders respond with positive impression of the agency?
3. Did customers respond stronger than expected in certain areas?
4. What media seemed to generate the most responses?
5. What else can be learned about how clients are responding to the marketing efforts?

Program Evaluations

Programs should be evaluated on a regular basis to discern if the programs are reaching their goals, achieving their outcomes and if they are doing so in an efficient manner. Small nonprofits seldom have the resources to conduct comprehensive, detailed evaluations of a program’s goals, outcomes and process.

However, personnel from small nonprofits can think about where they have the most concerns about a particular program or aspect of a program (goals, processes, outcomes, etc.) and then target a highly practical evaluation of that particular aspect of the program.

Program evaluation holds numerous advantages. It can verify or increase the impact (or outcomes) on constituents. It can fine tune delivery of program services, which, in turn, saves costs and time. Evaluations often provide wonderful client testimonials that can be used for public relations and credibility when applying for funding.

In fact, evaluations are often used by program planners to ensure that the program is indeed carrying out the original process planned for the program in the first place. Often, nonprofit leaders develop a program plan which ends up changing dramatically over time as program staff are overcome by events.

Program processes can naturally deviate from the original plan because program plans were flawed in the first place, the program’s environment changed a great deal or program staff simply found a much better way to deliver services to clients.

For more information now about program evaluations, their planning and how to carry them out, see Program Evaluation

Resourcing and Budgeting for Program Development

Program Resources and Budget

Examine the program’s process to the extent that you can associate what resources are needed to carry out that process. Consider: personnel costs (salaries and wages, fringe benefits, consultants), training, space, equipment purchase or rental, travel, copier, telephone, general office supplies, etc.

Develop a program budget by estimating the cost for each resource identified above. Note that this budgeting activity is almost always required in a proposal if the nonprofit wants to pursue funding for the new program.

For additional information now about Developing a Budget

For the Category of Program Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022March 28, 2023

Program Planning and Management (Business and Nonprofit)

Coworkers in a Conference Room having a Meeting

Program Planning and Management (Business and Nonprofit)

Adapted from the Field Guide to Nonprofit Program Design, Marketing and Evaluation.

Sections of This Topic Include

What’s a Program?
Feasibility Study for New Program
Basic Guidelines for For-Profit (Business) Program
Planning and Management
Basic Guidelines for Nonprofit Program
Design and Marketing
Program Evaluation (for-profit or nonprofit)

Also consider
Related Library Topics

Learn More in the Library’s Blogs Related to Program Planning and Management

In addition to the articles on this current page, also see the following blogs
that have posts related to Program Planning and Management. Scan down the blog’s
page to see various posts. Also see the section “Recent Blog Posts”
in the sidebar of the blog or click on “next” near the bottom of a
post in the blog. The blog also links to numerous free related resources.

Library’s
Leadership Blog
Library’s
Nonprofit Capacity Building Blog

What’s a Program?

Varying Uses of the Term “Program”

A program is 1) an ongoing process, such as
a quality control program, or 2) an activity to manage a series
of multiple projects together. (In some countries, the term “program”
refers to a software tool and the term “programme” can
mean a TV or radio show.) This is in contrast to the term project,
which is a one-time effort that produces a specific result, for
example, a building or a major new computer system (see Project
Management). Nonprofits usually refer to programs as ongoing,
major services to clients, for example, a Transportation Program,
Housing Program, etc.

Feasibility Study for New Program

If you plan to start a new, major program in your organization,
you should consider many of the same questions for starting a
new business venture. The following feasibility study will guide
you through these critical questions.
Preparation
for Planning a Business Venture

Basic Guidelines for For-Profit Program Planning and Management

Basic
Guidelines for For-Profit Program Planning and Management
Program Management Essentials

Basic Guidelines for Nonprofit Program Design and Marketing

Basic
Guidelines for Nonprofit Program Design and Marketing
Various
Approaches to Build Nonprofit Programs
What’s
a Nonprofit “Program”? Really?
Research Project: YMCA Camp Surf

Program Evaluation

Basic
Guidelines to Program Evaluation

Various Other Perspectives

Program Management Articles
Program Management: Different from Project Management
Six Strategies for Managing Revenue Risk

Additional Resources

Program Management
The International
Association of Project and Program Management

For the Category of Program Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 4, 2022

Basic Guidelines for Program Planning and Management (in for-profit organizations)

Women standing beside corkboard in a meeting

Basic Guidelines for Program Planning and Management (in for-profit organizations)

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Adapted from the Field
Guide to Nonprofit Program Design, Marketing and Evaluation.

Applies to for-profits unless otherwise noted.

Sections of This Topic Include

Introduction — What’s a Program? (includes definitions of key terms)
6 Cornerstones for Solid Program Planning
8 Guidelines to Keep Program Planning on Track
Program Direction: Goals and Objectives
Program Process (Process, Resources and Budget)
Program Evaluation
Additional Resources

Also consider
Related Library Topics

Introduction — What’s a Program?

Varying Uses of the Term “Program”

There are a wide variety of uses of the term “program” in organizations. In it’s most general use, a program is a collection of organizational resources that is geared to accomplish a certain major goal or set of goals. (For those of you who read Organizations (an Introduction), you’ll recognize that this definition of a program sounds like that of an organization and a system. A program is an organization and a system.)

For-profits often use the term for very large business efforts that have limited duration and a defined set of deliverables. Or, a program might refer to an ongoing set of activities internal to the organization, for example, a Total Quality Management Program, Workplace Safety Program, the Space Program, etc.

(Program planning is usually (but not always) of a broader scope than Project Planning.)

Varying Uses of the Term “Program”

There are a wide variety of uses of the term “program” in organizations. In it’s most general use, a major program is a collection of organizational resources that is geared to accomplish a certain major goal or set of goals. (For those of you who read Organizations (an Introduction), you’ll recognize that this definition of a program sounds like that of an organization and a system. A program is an organization and a system.)

Keeping Overall Perspective: Programs are Systems

Programs, like other organizations, can seem a highly confusing, amorphous mass that is very hard to comprehend. It can be hard to keep perspective. However, like an organization, a program is a system with inputs, processes, outputs (tangibles) and outcomes (impacts on customers) — with ongoing feedback among the parts. This systems perspective helps keep clarity about programs and will help a great deal during program planning.

Program inputs are the various resources needed to run the program, e.g., money, facilities, customers
(internal or external), employees, etc. The process is how the program’s products are delivered, e.g., products are provided to internal or external customers (internal or external), customers (internal or external) are served, etc. The outputs are the units of service, e.g., number of customers (internal or external) served.

Outcomes are the impacts on the customers (internal or external) who are receiving the products, e.g., increased quality of products for customers (internal or external), enhanced safety in the workplace for internal customers (internal or external), enhanced mental health for customers (internal or external), etc.

6 Cornerstones for Solid Program Planning

With these cornerstones in place, the organization is assured of a program plan that has a strong foundation and can survive multiple changes as the program develops.

Program Should Tie to the Organization’s Mission

Each program should be strongly associated with the organization’s overall mission. That is, the organization’s executive leaders should work from the mission to identify several overall, major goals that must be reached and that, in total, reach the mission. If an idea for a program comes up at some time other than during strategic planning, executive leaders must ask themselves if the program is really appropriate for the organization.

Program Planning Should Tie in With Strategic Planning

Depending on the nature of the organization, strategic planning typically includes review of the organization’s vision, mission, values, overall strategic issues and strategic goals (each of which, in some organizations, becomes a program) and strategies to reach the goals (strategies to reach the goals often are the roadmap for how the program meets its own goals).

Because the program planning must be tied to the nature of the organization’s mission, the program planning should be closely tied with the organization strategic planning as well. Typically, at a point right after the strategic planning process has identified strategic goals and issues, a team of planners can draft a framework for how goals can be met. This framework is often the roadmap for a new program. (For more information about strategic planning, see Strategic Planning.)

(Note that programs should not be ongoing means to fix problems in the organization — otherwise, they become just that: ongoing, costly means to fix problems in the workplace.)

Involve the Board (relevant to corporations)

A major responsibility of a board is to set strategic direction for the corporation. The corporation’s board should be highly involved in authorizing and guiding initial direction for programs. Therefore, boards should be involved in strategic planning of programs. (Admittedly, many experienced chief executives might argue that they actually drive the board to conduct strategic planning.

Many experienced chief executives, consultants, and other practitioners believe that ultimately, it’s the working relationship of the board and chief executive that determines the success of a corporation.)

Conduct Program Planning as a Team

The chief executive, key planners, relevant middle managers and major customers (internal or external) should be involved in program planning. (“Relevant middle managers” are those who lead programs or other departments that will integrate or coordinate with the new program being planned.)

Often, initial plans for a program are suggested to the chief executive and middle managers. Program planning is often initiated as part of the organization’s overall strategic planning process and so is conducted by the strategic planning team, which should be comprised of the board (in corporations), the chief executive, employee and key customers (internal or external), as much as possible.

Planning Should Involve Potential Internal/External Customers as Much as Possible

One can embark on a wonderful program planning process with all the right parts, but if key customers (internal or external) aren’t involved to provide perspectives from the program user’s point of view, the organization may build a beautiful ladder — but on the wrong roof. Involve customers (internal or external) in initial ideas about a program, discuss your perceived unmet need among those customers (internal or external), ask how they would like the need to be met.

You might run a final draft of your program plan past a couple of key customers (internal or external). (Note that this involvement of customers (internal or external) is a critical aspect of the marketing process. For more about marketing, see Marketing (research, pricing, competitor analysis, etc.).)

Don’ Worry About Developing the Perfect Program Plan

If the organization involves the right people, and if everyone participates wholeheartedly and reflects on their experiences, then the organization will develop the “perfect” plan. The organization remains the only real “expert” on their own planning. Outside consultants and facilitators can be brought in, but each planning decision is ultimately up to the organization members. The “perfect” program plan will meet the nature and needs of the organization.

8 Guidelines to Keep Program Planning on Track

Basically, planning is taking one’s best shot at working through a “tree” of decisions (decisions that must be made at some time, and the earlier the better) to propose (and often get /investing/funding for) developing a program. Your plan doesn’t have to be perfect and, like any plan, it isn’t a rule, rather it’s a set of guidelines that serve as reference for the future.

You can change your plans — just know why and be able to explain (e.g., to your board, chief executives,
investors) why you changed the plans. This planning effort is almost always more than personnel want to undertake, but is almost always less than they fear. Anyway, this planning effort is required if the organization plans to pursue investment/funding.

The following guidelines will help ensure the program planning process points in the right direction and will help ensure the resulting program is run effectively and efficiently. (For more information about
planning, see General Planning Process.)

Focus on Results/Outcomes

Results/outcomes are benefits to customers (internal or external) from the program. Outcomes are usually in terms of solutions, enhanced learning (knowledge, perceptions/attitudes or skills) or conditions, e.g., increased productivity. Outcomes are often confused with program outputs or units of services, e.g., the number of customers (internal or external) served by the program.

Examine Your Intended Results/Outcomes – Conduct Some Basic Marketing

It’s critical to verify that these planned results/outcomes are indeed useful to your customers (internal or external). Many people mistakenly believe that marketing is selling a product or idea — selling is only part of marketing. Sound marketing includes researching a market to identify its needs or to assess if an idea you already have is really needed by that market.

(A market is a group of people or organizations that may buy or need your program’s results/outcomes). Basically, you’re verifying there’s a group of customers (internal or external) who are interested in, or even better, really need your planned product.

Marketing also includes working with customers (internal or external) to identify how they prefer to have the product delivered. Marketing gives a strong impression of how much they’re willing to accept or pay for this product/service — or what to set the price at for the product/service.

Marketing also involves promoting and advertising the product/service to internal or external customers.
For more information about marketing, see Marketing (research, pricing, competitor analysis, etc.).)

Coordinate the New Program with Other Current Programs

So often, in the excitement of the birth of a new program, we ignore precious resources that already exist. The new program is but part of an overall organization, an overall system. Pay particular attention to how the new program will coordinate with other programs in the organization.

What inputs are needed from other managers and other programs? What ongoing feedback is needed among members of the new program and other programs? How can the new program benefit other programs?

Explore if Results Can Be Delivered More Effectively via Collaboration

Successful collaboration brings two or more organizations together to work in synergy, in an effort that is “more than the sum of its parts.” That is, if both organizations worked apart, both would serve customers (internal or external) and produce some solutions/outcomes — but not as many and as well as if both organizations worked together. In working together, there’s an economy of scale, or sharing of resources, that lowers costs and focuses more resources on serving customers.

Plan Key Indicators of Program Success

These planned indicators will help you establish whether the program is successful or not, and will help you avoid doing a program for the sake of a program. Consider planning indicators associated with intended results/outcomes. Programs are usually defined with very explicit deliverables.

Include Short-Range Focus in a Long-Range Plan

Getting the program off on the right foot includes not falling over your own feet because you were looking far off into the distance. Many strategic plans are usually three years in scope, with particular planning focus on the first year of the three years. Follow this format for the program planning as well.

Don’t worry about exhaustive detail even in the first year of the plan. Plans are guidelines, not rules. Plans can be changed — but understand why you changed them.

Learn by “Testing the Waters”

Consider planning a short-term “pilot” program. The pilot will be a sort of mini-program that will reflect many of the aspects of a full-blown program. However, planning and operations regarding the pilot will include numerous reviews and assessments from which to learn from experiences around the pilot program.

This learning will go into planning for the full-blown program. Note that investors are often highly cooperative in supporting pilots as an approach to research or verify the organization’s proposed plans.

Plan Program Reviews

Program reviews are regular examinations of the program’s activities to assess how well the program is doing. A program review team should probably include the chief executive, the head of the new program and one or two other program directors, particularly those from programs that closely coordinate with the new program.

Examine if the program seems to be following the original plan. If it’s not, the deviation is not as important as understanding why and assessing if the deviation was necessary. Take a look at the key indicators as noted in the plan.

What is the progress toward the key indicators? What major problems exist and what is needed to address them? How are the actual costs comparing to the planned costs? Are any actions needed to avoid financial problems? What would you do differently about the program if you could do anything? What limitations are holding you back from what you would ideally do if you could? What are you learning from the program implementation so far?

Program Direction: Goals and Objectives

Program Goals

Program goal(s) should come from and be closely associated with the organization’s overall strategic goals. Think about what, e.g., three to five major accomplishments must be reached to attain each overall goal. Goals are an overall status to be reached through continued efforts in the program. Goals should be described such that the organization can assess whether it’s reached the goal or not.

The goal should establish clear direction for the organization and portray that direction to others. The program’s goal may be to fix a problem or meet a need among customers (internal or external) — not to fix a problem in your organization.

For example, if you are just starting out to develop a new program, typical overall goals might include:
develop employees, pilot services to one group of customers (internal or external), evaluate the program process and finalize program process based on evaluation results.

Program Objectives

Think about each goal and what sub-goals, or objectives, you need to accomplish to reach that goal. (Depending on your nature, it may work to instead think of how the program process will be carried out and then identify specific milestones, or objectives, in carrying out the process. This approach is somewhat like the reverse of thinking about goals and associating objectives.)

Objectives should be worded such that one can rather easily discern if it’s been reached or not. They should specify who is going to do what to whom and when and how much.

For example, referring to the above goals, associated objectives might be: recruit employees, train
them, obtain facilities and equipment, install the equipment, develop advertising materials, distribute the materials, recruit customers (internal or external) for the pilot, develop procedures for delivery of products/services, deliver products/services over a fixed period of time, conduct evaluation of the program’s process and results/outcomes, generate recommendations from the evaluation, update policies and procedures in the program’s process, and update the overall program plan.

Program Process, Resources and Budget

Program Process

By now, establishing the program’s process should be quite straightforward and depend mostly on the nature of the product/service provided by the program. Program planners’ thoughts about the processes needed to reach each of the program objectives (above) often culminate in the overall program process as well.

After documenting the planned general process for the program, take time to reflect on whether that process will really accomplish the results/outcomes you set out to accomplish for your customers (internal or external).

Program Resources and Budget

Develop a program budget by estimating the cost for each resource identified above. Note that this budgeting activity is almost always required in a proposal if the organization wants to find an investor for the new program.

Program Evaluation

Programs should be evaluated on at least a yearly basis to discern if the programs are reaching their goals, achieving their outcomes and if they are doing so in an efficient manner. Small businesses seldom have the resources to conduct evaluations of a program’s goals, outcomes and process.

However, they can think about where they have the most concerns about a program and then gear an evaluation to look at that aspect of the program.

Program evaluation holds numerous advantages. It can verify or increase the results/outcomes on customers (internal or external). It can fine tune delivery of program services, which, in turn, saves costs and time. Evaluations often provide wonderful testimonials that can be used for public relations and credibility of the program.

In fact, evaluations are often used by program planners to ensure that the program is indeed carrying out the original process planned for the program in the first place. Often, the program plan ends up changing dramatically over time as program employees are overcome by events.

Program processes can naturally deviate from the original plan because program plans were flawed in the first place, the program’s environment changed a great deal or program employees simply found a much
better way to deliver products/services to customers (internal or external). For more information about program evaluations, their planning and how to carry them out, see Program Evaluation, including the Program Evaluation Planning Checklist.

Additional Resources

For the Category of Program Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 4, 2022

Product/Service Warranties

Golden five stars for best quality assurance on a purple background

Product/Service Warranties

Warranty Management: The New Frontier
Warranty
Management: Need for a Holistic View
Newsletter for Warranty Management Professionals
A Businessperson’s Guide to Federal Warranty Law
Extended Warranties

Learn More in the Library’s Blogs Related to Product Warranties

In addition to the articles on this current page, see the following blogs which
have posts related to Product Warranties. Scan down the blog’s page to see various
posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or
click on “next” near the bottom of a post in the blog.

Library’s Business Planning Blog
Library’s Customer Service Blog
Library’s Leadership Blog

For the Category of Product Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 4, 2022

Product/Service Life Cycles

Product/Service Life Cycles

Various Perspectives

Life Cycles of Organizations
Product life cycles — Wikipedia
Product life cycle
Software Life Cycle (humorous)

Learn More in the Library’s Blogs Related to Product Life Cycles

In addition to the articles on this current page, see the following blogs which
have posts related to Product Life Cycles. Scan down the blog’s page to see
various posts. Also see the section “Recent Blog Posts” in the sidebar of the
blog or click on “next” near the bottom of a post in the blog.

Library’s Business Planning Blog
Library’s Customer Service Blog
Library’s Leadership Blog

For the Category of Product Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022March 29, 2023

Product and Service Development — Overviews and Resources

Product and Service Development — Overviews and Resources

As written in Wikipedia, in product development, “The product can be tangible (something physical which one can touch) or intangible (like a service, experience, or belief), though sometimes services and other processes are distinguished from ‘products’.” Although there are additional differences between the nature of a product and service (as explained below), for the sake of expediency, this topic will use the term “products” to refer to both. Also, this topic focuses primarily on the development of a product, rather than primarily on its ongoing management.

Nonprofit organizations often provide services in the form of “programs”, rather than “products” — although the services from the programs are certainly “products or services” to groups of clients. Thus, nonprofit readers might more readily relate to the following guide.
Basic Guidelines for Nonprofit Program Design and Marketing

A nonprofit that is developing a tangible product to generate a profit for the organization (referred to as a Social Enterprise) might benefit from reading the content in this topic about product development.

Sections of This Topic Include

Introduction to Product Development

What is a Product? A Service?
What is Product Development?
Product Development and Product Life Cycles
Five Different Approaches to Developing Products
Typical Phases in Carefully Developing Products

Preparation

Are You Really Ready?
First Broaden Your Perspective
Planning New Business in Addition to Product?

Developing Your Product

Phase 1: Generating Ideas
- Many Sources of Ideas
- Protect Your Ideas
Phase 2: Researching
- Is Idea Feasible? Viable?
- Need an Investor or Funder for Your Idea?
Phase 3: Testing
- What Will Customers Think of Your Ideas?
- How to Get Feedback From Customers
Phase 4: Analyzing
- What Have You Learned So Far?
- What About Design Specifications? Project Planning?
Phase 5: Rolling Out
Additional Perspectives on Product Development

Also consider

Learn More in the Library’s Blogs Related to Entrepreneurship — Product and Service Development

In addition to the articles on this current page, also see the following blogs that have posts related to Entrepreneurship — Product and Service Development. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.

What is a Product? A Service?

Basically, a product is a tangible offering to a customer, whereas a service is an intangible offering. The former is usually a one-time exchange for value. In contrast, a service usually involves a longer period of time. The value of a product is inherent in the tangible offering itself, for example, in the can of paint or pair of pants. In contrast, the value of a service often comes from the eventual benefit that the customer perceives from the time while using the service. In addition, the customer often judges the value of a service based on the quality of the relationship between the provider and the customer while using the service. To understand more differences, see

What is Product Development?

The Entrepreneur website defines product development as “The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product.” That site also suggests eight situations when product development is needed. Also see:

New Product Development
What is Product Development?
What Is the Difference Between Product Management, Product Marketing, Product Development and Program Management?

Therefore, product development includes a wide range of activities, ranging from the time that there is a new idea for a product and up to the ongoing management activities to produce and provide the product to customers. (The latter is referred to by the phrase “product management.”) How a product is developed depends very much on the nature of the organization and its products, for example, retail, manufacturing or wholesale. It also depends on the culture of the organization, for example, whether products are developed intentionally and explicitly or unintentionally and implicitly.

Product Development and Product Life Cycles

Products, just like people and organizations, go through various phases in their lives (Basic Overview of Life Cycles in Organizations). Different experts suggest different stages in the life cycle and give them different names. It helps a great deal to know about different phases in the life of an organization or product because it suggests the types of activities that are typically seen in each phase, as well as what activities to do to evolve to the next phase.

For example, the following article suggests Development, Introduction, Growth, Maturity and Decline. Product development occurs primarily during the first phase. The typical final phase of product development is when it is launched or promoted to potential clients. That final phase could be included in the Introduction phase of the product’s life cycle.
Product Life Cycle & Product Development Cycle

Five Different Approaches in Development Products

There are at least five different common approaches to developing a new product. Some approaches seem to start out slow and soon stop altogether. Other approaches start out fast and then end in a flurry of confusion. Still, other approaches start out carefully and go on to make a huge difference for their customers. The approaches include:

“Build It and They Will Come” Approach
Seat-of-the-Pants Approach
Incremental Planning Approach
Business Planning Approach
Business Development Approach

Approaches to Developing Products and Services

Typical Phases in Carefully Developing Products

There are a variety of models, or sequences of phases, that people use to develop a product or service, including:

Fuzzy front-end, including often informal sharing and clarification of ideas for the new product.
Product design, including activities that result in a detailed set of specifications for the product’s design.
Product implementation, including refining the specifications by testing them, often through development and use of a sample (or prototype) of the product.
Fuzzy back-end, including producing the new product and rolling it out to potential markets.

The following article suggests five phases similar to the above in product development, including the following.

Idea generation (creativity and innovation, brainstorming, competitor research)
Research and development (market research, design thinking, prototyping, feasibility testing)
Testing (focus groups, customer surveys)
Analysis (feedback, interviews, pricing, problem solving and decision making, financial projections)
Rollout (marketing, business planning, advertising, social media)

The following content in this topic is according to this five-phase model, also listed above.
Five Phases of New Product Development

These articles suggest various phases, too.

These articles mentioned numerous models, as well.

Preparation

Are You Really Ready?

It’s one thing to have a good idea for a new product or service, but it’s another thing to actually develop and provide it — that’s the essence of entrepreneurship. The following link is to a resource that will guide you through complete consideration of whether you’re really ready for entrepreneurship or not.
Entrepreneurs — Are You Really Ready to Start a New Venture?

First Broaden Your Perspective

Many of the activities in product development are also activities in the overall process of marketing.

If the reader is highly motivated at this point, then he or she might scan the information about the basics of business planning. Business planning is usually conducted when starting a new organization or a new major venture, for example, new product, service or program. Essentially, a business plan is a combination of a marketing plan, strategic plan, operational/management plan and a financial plan. Funders or investors usually require a business plan. Far more important than the plan document, is the planning process itself.
Basics of Business Planning

Planning New Business in Addition to Product?

If you are planning to start a new for-profit business or nonprofit business around your idea for a new product or service, then you will benefit from reading information in the topics Starting a For-Profit Business or Starting a Nonprofit Organization. Note that information in these two topics will guide you through assessing the feasibility of your new business — information in the rest of this topic about product management will include assessing the feasibility of developing a new product. It’s likely that if you are starting a new business, you will eventually need information in the rest of this topic about product development.

Phase 1 — Generating Ideas

Many Sources of Ideas

At this stage, someone has an idea for a new product or service. Ideas can come from many sources, for example:

Complaints from current customers (see Customer Service and Customer Satisfaction).
Requests for Proposals from large businesses and government agencies.
Modifications to current products (see Innovation).
Suggestions from employees, customers and suppliers (see Creative Thinking).
You can learn a lot from analyzing your competitors (see Competitor Research).

Protect Your Ideas

It’s likely that someone else will think your idea is a good one, too! Therefore, it’s important to protect your idea as much as possible, for example, by getting copyrights, trademarks or patents. See U.S. Intellectual Property Law

You might also want to minimize the chance of an employee taking the idea and starting their own business. See
Non-Compete Agreements

Phase 2 — Researching

Is the Idea Feasible? Viable?

Just because it seems like a great idea doesn’t mean that it can become a product. A feasible product is one that can be realistically developed and delivered to meet the needs of potential clients. A viable product is one that needs to be profitable (or, in the case of a nonprofit, at least sustainable), including being producible and marketable.

Also, the product should be related to the purpose, or mission, of your business. Businesses can go bankrupt by trying to be too many things to too many customers, rather than doing a few things very well. You might use guidelines from these relevant topics.

Need an Investor or Funder for Your Idea?

For-profits that need investment money will benefit from the following link.
Fundraising (For-Profit)

Nonprofits that need funding will benefit from the following link.
Fundraising (Nonprofit)

As noted above, you very well may need a business plan to convince the investor or funder that your idea is viable to become or product or service. See Basics of Business Planning

Phase 3 – Testing

What Will Customers Think of Your Ideas?

Now is the time to get input from those who would be using the new product. When products have very low sales, it is often because the developers had more faith in their own preferences than in those of the customers.

But before you can get input from the potential customers, think about who those groups (or target markets) might be? Thank about:

Where did you get the ideas to develop the products in the first place?
Who is using products that seem similar to those that you are thinking about developing?
What have you been hearing and reading about regarding strong unmet needs among various groups of people? What might meet those needs? Are those needs within the scope of your organization’s mission and capabilities.

How to Get Feedback From Customers

There are a wide variety of ways to get feedback from customers. The most common are using the following tools.

A powerful way to get very useful feedback, especially regarding ideas to improve your new product, is to use design thinking. It is unique in that it is a hands-on approach that deeply involves the people (the users) who are affected by their problem or unmet need.
Design thinking

At this point, you’ve concluded that your idea can become a viable product. Now you’re faced with actually building the product itself. The particular process you use to build your product or service depend very much on the nature of the product or service. The following links might help you as you develop your unique process to build your product.

Now’s the time to write an overall, or functional, description of your new product. The more detailed description comes during the next phase.
What Are Functional Specifications

Phase 4 — Analyzing

What Have You Learned So Far?

Now is a good time to consider:

What did you hear from potential customers?
What changes are needed to your original design?
How will you make them, who will do it and by when?
What will the changes cost to implement? To continue to produce?
Who will be your primary target markets? What are the primary needs and wants of that target market?
What is the likely cost to develop and produce the product?
So what pricing structure should you use?
Who will be the primary competitors of your final product?

These questions are often answered when developing a business plan for your new product.
All About Business Planning

What About Design Specifications? Project Planning?

You certainly should develop and implement of a project plan to build your product.
Project Planning (method to carefully plan and track development of the product/service)

Businesses are coming to learn that it’s never too early to integrate principles of quality management into the design and development of products and services.

Basics About Quality Management

What about a final written specification that employees can use to develop and provide the product?

Phase 5 — Rolling Out

Developing Your Marketing Plan

Now you are ready to get the word out about your new product. Especially for a new product, it is very important to do that very carefully and systematically. It is not a time to start bursting our whatever positive messages that you have to convey to anyone who will listen. That would be a major mistake.

The place to start is to understand what goes into a marketing plan. See the following topics in the following order:

Why Should Customers Buy From You?

What are the unique features and benefits of the new product? Why should customers buy from you, rather than from competitors? The answers to this questions are your positioning statement.
Clarifying Your Unique Selling Position — Your Best “Elevator” Pitch

What Will You Convey to Your Customers?

Draft a communications plan with answers to:

What are the different target markets that you aim to serve?
What do you want each to believe about your new product?
How does each market prefer to get communications, for example, radio, television, postal mail, phone calls, emails or flyers?
So what messages do you want to convey to each and how?
Who will do that and by when?

There are numerous methods to get the word out.
Major Methods of Advertising and Promotion (Methods of External Communications)

Do not forget about the power of using social media.
Social Networking

Also see

Additional Perspectives on Product Development

Intellectual Discipline in Product Development
Creating a Strategic Product Plan
New Product Development Stages
Getting the Most out of Your Product Development Process
5 Insights for Improving Product Development Cycle Success
The Lean Product Lifecycle
The Cycle of Mistrust in New Products
Reading: Overview of the New-Product Development Process
Measuring Product Development Time to Improve the Development Process
Product Development Cycle Fundamentals

For the Category of Product Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022February 17, 2023

Product/Service Distribution

Product/Service Distribution

You can choose a wide variety of methods to distribute your products and services. You’ll probably end up with a variety of methods.

Direct distribution methods include your providing your products and services directly to your customer. Direct methods are, for example, direct mail, retail, catalogs, or even over the Internet.

Indirect methods include having a middleman. Indirect methods include, for example, using wholesalers and distributors, or retailers (the middleman is a large chain of retail stores, for example, Kmart).

Various Perspectives

Learn More in the Library’s Blogs Related to Product Distribution

In addition to the articles on this current page, see the following blogs which have posts related to Product Distribution. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog.

For the Category of Product Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 4, 2022

Configuration Management (tracking revisions of a product/service)

Configuration Management
(tracking revisions of a product/service)

Various Perspectives

Definitions of Configuration
Management
Institute for Configuration Management
many
articles

Learn More in the Library’s Blogs Related to Configuration Management

In addition to the articles on this current page, see the following blogs which have posts related to this topic. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog.

Library’s Business Planning Blog
Library’s Customer Service Blog
Library’s Leadership Blog

For the Category of Product Development:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

January 18, 2022September 5, 2022

How to Do to Planning

Man in Gray Sweater Standing In Front of His Colleagues Presenting

How to Do to Planning

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Adapted from the Field Guide to Nonprofit Strategic Planning and Facilitation and Field Guide to Nonprofit Program Design, Marketing and Evaluation.

One of the most common sets of activities in the management is planning. Very simply put, planning is setting the direction for something — some system — and then guiding the system to follow the direction. There are many kinds of planning in organizations. Common to these many kinds of planning are various phases of planning and guidelines for carrying them out as effectively as possible. Information in this document can be referenced as a basis from which to carry out various kinds of planning, ranging from highly complex to simple and basic. (The library topic Planning describes a wide variety of plans.)

To help make the following information applicable to as many situations as possible, the scope of the following planning information is to the “system”, which is fully explained below. The following process should be customized by planners to the meet the needs and nature of the planners and their organizations.

Sections of This Topic Include

Context of Planning

Putting Planning in its Larger Context (Working Backwards Through Any “System”)
Quick Look at Some Basic Terms in Planning

Typical Overall Phases in Planning

Basic Overview of Typical Phases in Planning

Guidelines for Successful Planning and Implementation

Step-by-Step Procedure
Involve the Right People in the Planning Process
Write Down the Planning Information and Communicate it Widely
Goals and Objectives Should Be SMARTER
Build in Accountability (Regularly Review Who’s Doing What and By When?)
Note Deviations from the Plan and Replan Accordingly
Evaluate the Planning Process and the Plan
Realize that the Recurring Planning Process is at Least as Important as the Plan Document
Ensure the Nature of the Process is Compatible to the Nature of Planners
A Critical — But Frequently Missing Step — Acknowledgement and Celebration of Results

Also consider

Related Library Topics

Learn More in the Library’s Blogs Related to Planning

In addition to the articles on this current page, also see the following blogs that have posts related to planning. Scan down the blog’s page to see various posts. Also see the section “Recent Blog Posts” in the sidebar of the blog or click on “next” near the bottom of a post in the blog. The blog also links to numerous free related resources.

Planning in its Larger Context (Systems Planning)

Working Backwards Through Any “System”

Before we jump into the typical phases in the standard “generic” planning process, let’s stand back and minute and briefly look at the role of planning in its overall context. This is more than an academic exercise — understanding this overall context for planning can greatly help the reader to design and carry out the planning process in almost planning application.

One of the most common sets of activities in the management is planning. Very simply put, planning is setting the direction for something — some system — and then working to ensure the system follows that direction. Systems have inputs, processes, outputs and outcomes. To explain, inputs to the system include resources such as raw materials, money, technologies and people. These inputs go through a process where they’re aligned, moved along and carefully coordinated, ultimately to achieve the goals set for the system. Outputs are tangible results produced by processes in the system, such as products or services for consumers. Another kind of result is outcomes, or benefits for consumers, e.g., jobs for workers, enhanced quality of life for customers, etc. Systems can be the entire organization, or its departments, groups, processes, etc. (For an overview of various systems in organizations, see Basic Definition of Organization and Various Ways to Look at Organizations.)

Whether the system is an organization, department, business, project, etc., the process of planning includes planners working backwards through the system. They start from the results (outcomes and outputs) they prefer and work backwards through the system to identify the processes needed to produce the results. Then they identify what inputs (or resources) are needed to carry out the processes.

Quick Look at Some Basic Terms

Planning typically includes use of the following basic terms.

NOTE: It’s not critical to grasp completely accurate definitions of each of the following terms. It’s more important for planners to have a basic sense for the difference between goals/objectives (results) and strategies/tasks (methods to achieve the results).

Goals

Goals are specific accomplishments that must be accomplished in total, or in some combination, in order to achieve some larger, overall result preferred from the system, for example, the mission of an organization. (Going back to our reference to systems, goals are outputs from the system.)

Strategies or Activities

These are the methods or processes required in total, or in some combination, to achieve the goals. (Going back to our reference to systems, strategies are processes in the system.)

Objectives

Objectives are specific accomplishments that must be accomplished in total, or in some combination, to achieve the goals in the plan. Objectives are usually “milestones” along the way when implementing the strategies.

Tasks

Particularly in small organizations, people are assigned various tasks required to implement the plan. If the scope of the plan is very small, tasks and activities are often essentially the same.

Resources (and Budgets)

Resources include the people, materials, technologies, money, etc., required to implement the strategies or processes. The costs of these resources are often depicted in the form of a budget. (Going back to our reference to systems, resources are input to the system.)

Basic Overview of Typical Phases in Planning

Whether the system is an organization, department, business, project, etc., the basic planning process typically includes similar nature of activities carried out in similar sequence. The phases are carried out carefully or — in some cases — intuitively, for example, when planning a very small, straightforward effort. The complexity of the various phases (and their duplication throughout the system) depend on the scope of the system. For example, in a large corporation, the following phases would be carried out in the corporate offices, in each division, in each department, in each group, etc.

NOTE: Different groups of planners might have different names for the following activities and groups them differently. However, the nature of the activities and their general sequence remains the same.

NOTE: The following are typical phases in planning. They do not comprise the complete, ideal planning process.

1. Reference Overall Singular Purpose (“Mission”) or Desired Result from System
During planning, planners have in mind (consciously or unconsciously) some overall purpose or result that the plan is to achieve. For example, during strategic planning, it’s critical to reference the mission, or overall purpose, of the organization.

2. Take Stock Outside and Inside the System
This “taking stock” is always done to some extent, whether consciously or unconsciously. For example, during strategic planning, it’s important to conduct an environmental scan. This scan usually involves considering various driving forces, or major influences, that might effect the organization.

3. Analyze the Situation
For example, during strategic planning, planners often conduct a “SWOT analysis”. (SWOT is an acronym for considering the organization’s strengths and weaknesses, and the opportunities and threats faced by the organization.) During this analysis, planners also can use a variety of assessments, or methods to “measure” the health of systems.

4. Establish Goals
Based on the analysis and alignment to the overall mission of the system, planners establish a set of goals that build on strengths to take advantage of opportunities, while building up weaknesses and warding off threats.

5. Establish Strategies to Reach Goals
The particular strategies (or methods to reach the goals) chosen depend on matters of affordability, practicality and efficiency.

6. Establish Objectives Along the Way to Achieving Goals
Objectives are selected to be timely and indicative of progress toward goals.

7. Associate Responsibilities and Time Lines With Each Objective
Responsibilities are assigned, including for implementation of the plan, and for achieving various goals and objectives. Ideally, deadlines are set for meeting each responsibility.

8. Write and Communicate a Plan Document
The above information is organized and written in a document which is distributed around the system.

9. Acknowledge Completion and Celebrate Success
This critical step is often ignored — which can eventually undermine the success of many of your future planning efforts. The purpose of a plan is to address a current problem or pursue a development goal. It seems simplistic to assert that you should acknowledge if the problem was solved or the goal met. However, this step in the planning process is often ignored in lieu of moving on the next problem to solve or goal to pursue. Skipping this step can cultivate apathy and skepticism — even cynicism — in your organization. Don’t skip this step.

Guidelines to Ensure Successful Planning and Implementation

A common failure in many kinds of planning is that the plan is never really implemented. Instead, all focus is on writing a plan document. Too often, the plan sits collecting dust on a shelf. Therefore, most of the following guidelines help to ensure that the planning process is carried out completely and is implemented completely — or, deviations from the intended plan are recognized and managed accordingly.

Involve the Right People in the Planning Process

Going back to the reference to systems, it’s critical that all parts of the system continue to exchange feedback in order to function effectively. This is true no matter what type of system. When planning, get input from everyone who will responsible to carry out parts of the plan, along with representative from groups who will be effected by the plan. Of course, people also should be involved in they will be responsible to review and authorize the plan.

Write Down the Planning Information and Communicate it Widely

New managers, in particular, often forget that others don’t know what these managers know. Even if managers do communicate their intentions and plans verbally, chances are great that others won’t completely hear or understand what the manager wants done. Also, as plans change, it’s extremely difficult to remember who is supposed to be doing what and according to which version of the plan. Key stakeholders (employees, management, board members, funders, investor, customers, clients, etc.) may request copies of various types of plans. Therefore, it’s critical to write plans down and communicate them widely. For more guidelines in this regard, see
Basics of Writing and Communicating the Plan

Goals and Objectives Should Be SMARTER

SMARTER is an acronym, that is, a word composed by joining letters from different words in a phrase or set of words. In this case, a SMARTER goal or objective is:

Specific:

For example, it’s difficult to know what someone should be doing if they are to pursue the goal to “work harder”. It’s easier to recognize “Write a paper”.

Measurable:

It’s difficult to know what the scope of “Writing a paper” really is. It’s easier to appreciate that effort if the goal is “Write a 30-page paper”.

Acceptable:

If I’m to take responsibility for pursuit of a goal, the goal should be acceptable to me. For example, I’m not likely to follow the directions of someone telling me to write a 30-page paper when I also have to five other papers to write. However, if you involve me in setting the goal so I can change my other commitments or modify the goal, I’m much more likely to accept pursuit of the goal as well.

Realistic:

Even if I do accept responsibility to pursue a goal that is specific and measurable, the goal won’t be useful to me or others if, for example, the goal is to “Write a 30-page paper in the next 10 seconds”.

Time frame:

It may mean more to others if I commit to a realistic goal to “Write a 30-page paper in one week”. However, it’ll mean more to others (particularly if they are planning to help me or guide me to reach the goal) if I specify that I will write one page a day for 30 days, rather than including the possibility that I will write all 30 pages in last day of the 30-day period.

Extending:

The goal should stretch the performer’s capabilities. For example, I might be more interested in writing a 30-page paper if the topic of the paper or the way that I write it will extend my capabilities.

Rewarding:

I’m more inclined to write the paper if the paper will contribute to an effort in such a way that I might be rewarded for my effort.

Also consider
A Fun Look at SMART Goal Setting!

Build in Accountability (Regularly Review Who’s Doing What and By When?)

Plans should specify who is responsible for achieving each result, including goals and objectives. Dates should be set for completion of each result, as well. Responsible parties should regularly review status of the plan. Be sure to have someone of authority “sign off” on the plan, including putting their signature on the plan to indicate they agree with and support its contents. Include responsibilities in policies, procedures, job descriptions, performance review processes, etc.

Note Deviations from the Plan and Replan Accordingly

It’s OK to deviate from the plan. The plan is not a set of rules. It’s an overall guideline. As important as following the plan is noticing deviations and adjusting the plan accordingly.

Evaluate Planning Process and the Plan

During the planning process, regularly collect feedback from participants. Do they agree with the planning process? If not, what don’t they like and how could it be done better? In large, ongoing planning processes (such as strategic planning, business planning, project planning, etc.), it’s critical to collect this kind of feedback regularly.

During regular reviews of implementation of the plan, assess if goals are being achieved or not. If not, were goals realistic? Do responsible parties have the resources necessary to achieve the goals and objectives? Should goals be changed? Should more priority be placed on achieving the goals? What needs to be done?

Finally, take 10 minutes to write down how the planning process could have been done better. File it away and read it the next time you conduct the planning process.

Recurring Planning Process is at Least as Important as Plan Document

Far too often, primary emphasis is placed on the plan document. This is extremely unfortunate because the real treasure of planning is the planning process itself. During planning, planners learn a great deal from ongoing analysis, reflection, discussion, debates and dialogue around issues and goals in the system. Perhaps there is no better example of misplaced priorities in planning than in business ethics. Far too often, people put emphasis on written codes of ethics and codes of conduct. While these documents certainly are important, at least as important is conducting ongoing communications around these documents. The ongoing communications are what sensitize people to understanding and following the values and behaviors suggested in the codes.

Nature of the Process Should Be Compatible to Nature of Planners

A prominent example of this type of potential problem is when planners don’t prefer the “top down” or “bottom up”, “linear” type of planning (for example, going from general to specific along the process of an environmental scan, SWOT analysis, mission/vision/values, issues and goals, strategies, objectives, timelines, etc.) There are other ways to conduct planning. For an overview of various methods, see (in the following, the models are applied to the strategic planning process, but generally are eligible for use elsewhere):
Basic Overview of Various Planning Models

Critical — But Frequently Missing Step — Acknowledgement and Celebration of Results

It’s easy for planners to become tired and even cynical about the planning process. One of the reasons for this problem is very likely that far too often, emphasis is placed on achieving the results. Once the desired results are achieved, new ones are quickly established.

The process can seem like having to solve one problem after another, with no real end in sight. Yet when one really thinks about it, it’s a major accomplishment to carefully analyze a situation, involve others in a plan to do something about it, work together to carry out the plan and actually see some results. So acknowledge this — celebrate your accomplishment!

There are many types of plans for people, teams, processes and organizations. All of them — if they are well done — tend to follow the above guidelines.

Major Types of Plans

Other Types of Plans

Additional Perspectives on Planning

For the Category of Planning and Project Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

January 18, 2022September 4, 2022

“Core” Sequence of Planning Information

People at the office facing white Board in a meeting

“Core” Sequence of Planning
Information

(includes typical outline of planning document)

© Copyright Carter McNamara, MBA, PhD, Authenticity Consulting, LLC.
Adapted from the Field Guide to Nonprofit Strategic Planning and Facilitation and
Field Guide to Nonprofit Program Design, Marketing and Evaluation.

One of the major functions of management is planning. There
are numerous types of plans, for example, business plans, strategic
plans, project plans, program plans — and on and on and on. (The
library topic “Planning” describes many of these types
of plans in business and management.) Most planning processes
typically use the same “core” sequence of planning activities.
The complexity and duplication of this “core” sequence
depends very much on the nature and needs of the organization.

Basic Sequence of Planning Information
Sequence in a Large Organization
Sequence in a Small Organization
Typical Outline of Planning Document

Also consider
Related Library Topics

“Core”
Sequence of Planning Information

At the core of most planning processes is the same
basic sequence of planning information, including:

What goals are to be achieved (Goals are usually major accomplishments,
results, outcomes, or “end states” to be achieved.
It’s ideal if goals can be worded such that it’s obvious whether
they’ve been reached or not.)
Who’s responsible to reach the goal
How they will reach the goal (that is, what strategies, or
methods, they will use)
When they will reach the goal

The complexity of the sequence depends very much on the nature
and needs of the organization.

Sequence for
a Large Organization

The strategic planning document for a large, multi-national
organization can be many pages long, with numerous overall goals,
associated strategies/methods to reach the goals, associated objectives/milestones
along the way while implementing the methods, and listings of
who’s responsible to achieve each objective and by when.

In the various divisions in that large company, the above sequence
might be repeated again, but on a somewhat smaller scale. In departments
in the division, the above sequence might be repeated again, but
on a somewhat smaller scale, etc.

The following sequence might be typical to each of top levels
of this type of large organization.

Each overall goal that should have be reached when the plan
is implemented (for levels other than the very top level of the
organization, each overall goal is usually directly associated
with overall goals of the next-higher-up level of the organization)
Who is primarily responsible to reach each overall goal
Overall methods/strategies to be used to reach each overall goal
Who is primarily responsible to implement each method/strategy
Specific objectives/milestones to be achieved along way to
each overall goal
Who is primarily responsible to achieve each objective
Specific methods/tactics to be used to achieve each objective
Who is primarily responsible to implement each method/tactic
For each objective, a date when the objective should be reached
For each objective, a section to provide status on the progress
toward reaching that objective
For each objective, a section to provide comments about status.

Sequence in
a Small Organization

A small organization might use the following sequence.

Each overall goal that should have be reached when the plan
is implemented
Who is primarily responsible to reach each overall goal
Overall methods/strategies to be used to reach each overall
goal
Specific objectives/milestones to be achieved along way to
each overall goal
For each objective, a date when the objective should be reached
For each objective, a section to provide status on the progress
toward reaching that objective
For each objective, a section to provide comments about status.

Typical Outline
of Planning Document

Executive Summary

One- to two-page section that highlights important points
from the plan (this summary is not a listing of the plan’s
contents — that’s a Table of Contents)
Purpose of the plan
Results the plan is intended to achieve when completed
Who has primary responsibility for ensuring the plan is completed
Key roles of others in the organization, for example, for
authorization, reviews, etc.
When the plan will be started and completed
Might include who has copies of the plan
Might include who can be contacted with questions, etc.
Might include descriptions of who was involved in the planning
and what planning process was used
Might include very brief wording about structure of
plan and how to use it

Introduction

This section usually includes more information about key
topics than was included in the Executive Summary, including
who has primary responsibility for implementation of the plan,
when the plan will start and stop, who can be contacted for information
about the plan, how to use the plan, etc.

Description of the Organization (description of the larger
context of the plan)

Overall mission of organization, or description of major
function that this plan contributes to

Goals, Objectives, Responsibilities and Timelines

(As noted above, the extent of this section depends on the
nature and needs of the organization. This section is often best
depicted in the form of a table.)

Procedure to Monitor Implementation of the Plan

Description of when the plan will be reviewed
Who will review the plan
Description of what will be considered during review of the
plan

Appendices

Description of the planning process that was used
Listing of who was involved
Any supplemental information, such as budgets, etc.
Authorization lists of who can have copies of the plan and
who has copies now, etc.
Recommendations to improve the planning process in the future

For the Category of Planning and Project Management:

To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.

Also, scan the Recommended Books listed below. They have been selected for their relevance and highly practical nature.

Related Library Topics

Recommended Books

Basic Guide to Nonprofit Program Design and Marketing

Learn More in the Library’s Blogs Related to Nonprofit Programs and Capacity Building

TABLE OF CONTENTS

What is a Nonprofit Program?

Preparation – Cornerstones to Successful Program Planning

Planning Your Program Framework

Designing Each Service

Planning Program Promotions

Planning Program Delivery and Distribution

Planning Program Evaluation

Planning Program Budgeting

WHAT’S A NONPROFIT PROGRAM?

Resources and Activities Organized to Provide Related Services

Program “System”: Inputs, Processes, Outputs and Outcomes

PREPARATION — CORNERSTONES TO SUCCESSFUL PROGRAM PLANNING

Program Should Be Closely Aligned with Organization’s Mission

Program Planning Should Be Closely Aligned With Strategic Planning

Involve Board Members in Program Planning

Conduct Program Planning as a Team

Program Planning Should Involve Potential Clients as Much as Possible

Don’ Worry About Developing “Perfect” Program Plan

PLANNING YOUR PROGRAM AND SERVICES

Program Framework: Outcomes, Goals, Strategies and Objectives

Program Outcomes, Goals and Strategies Follow Directly from Strategic Planning

Program Outcomes

Program Goals

Program Strategies

Program Objectives

Designing Each Service in Program (Through Market Analysis)

Draft Basic Description of Each of Your Services

What Major Groups of Clients Do You (or Do You Want to) Serve? (Target Markets and Customer Profiles)

What Needs Do Your Services Meet for Each Target Market?

Who Are Your Competitors?

Who Are Your Collaborators?

What Price Should You Charge?

What Laws and Regulations Must You Follow?

What Name Will You Use for Your Service?

Protect Your Creations with Copyrights, Trademarks/Servicemarks and/or Patents?

Finalize Description of Each of Your Services

Planning Program Promotions (Advertising, Public Relations and Sales)

Positioning Your Nonprofit and Its Services — the Positioning Statement

Sales Planning

Planning Your Advertising and Promotions

Public and Media Relations Planning

Customer Service

Planning Service Delivery Methods

Producing Each Service

Distributing Each Service

Planning Methods to Measure Success of Program

Building In Key Indicators of Success

Conducting Initial, Pilot of Program

Program Reviews

Evaluation of Plans (Marketing and Promotions, Public and Media Relations and Sales)

Evaluate Progress Toward Goals and Objectives

Evaluate Response from Clients

Program Evaluations

Resourcing and Budgeting for Program Development

Program Resources and Budget

For the Category of Program Management:

Program Planning and Management (Business and Nonprofit)

Sections of This Topic Include

Learn More in the Library’s Blogs Related to Program Planning and Management

What’s a Program?

Varying Uses of the Term “Program”

Feasibility Study for New Program

Basic Guidelines for For-Profit Program Planning and Management

Basic Guidelines for Nonprofit Program Design and Marketing

Program Evaluation

Various Other Perspectives

Additional Resources

For the Category of Program Management:

Basic Guidelines for Program Planning and Management (in for-profit organizations)

Sections of This Topic Include

Introduction — What’s a Program?

Varying Uses of the Term “Program”

Varying Uses of the Term “Program”

Keeping Overall Perspective: Programs are Systems

6 Cornerstones for Solid Program Planning

Program Should Tie to the Organization’s Mission

Program Planning Should Tie in With Strategic Planning