Developing strategy is a tough assignment for foundation leaders
, and there are few forces compelling them to tackle it. Funders do not face the competitive pressures that influence corporations, and private foundations do not have the fundraising imperatives that drive nonprofit charities. Further complicating strategy formulation is the fact that many funders have a grantmaking structure that involves several distinct programs, each with its own goals. Yet most foundation leaders believe that strategy increases a foundation’s ability to create impact. CEP believes there are three core elements of foundation effectiveness: Clear goals, coherent well-implemented strategies, and relevant performance indicators.
You can’t develop a strategy without clear goals and you can’t measure progress against those goals or know whether your strategy is the right one without relevant performance indicators.