Question

Discuss whether strategic management is necessary for NPOs based on your personal opinion and literatures reviews.

Answer 1

Strategic management or strategic planning is the basic requirement in any organization whether profit-based or non-profit really does not matter. Unlike profit-making companies, NPOs do not focus on increasing the shareholders' wealth rather they focus on the community services in any form. Well, NPOs also have vision, mission, and objectives which need to be fulfilled for which proper planning, formulation, implementation, and evaluation is required. Hence, the requirement for strategic management. Strategic management should be an incremental process which is ongoing throughout the operation of the company. It helps in aligning the employee goals with organizational goals and it helps in reviewing the fact that whether the organization is proceeding in the right track. It assesses the critical factors and the key players to have a sustainable workplace.

From the literature, realizing the importance of strategic management, a framework was suggested by Brown, 2015 in his book only on NPOs He has emphasized that managers and leaders should follow the framework to fill the gap in decision-making and failure. The concept is not new as Hatten(1982), suggested that as the board of directors belongs to diverse areas in the NPOs, strategic management will give them a common platform to contribute for the business growth. According to Courtney (2002), who was the CEO of an NPO gave his experience and shared success stories of implementing strategic management approaches.