Governance and strategic planning

Abstract

Good governance depends on adequate governance tools. Strategic planning is a critical component of good governance in nonprofit organizations because it helps formalize strategy through action plans, identify long-term goals, and identify the polices needed to achieve them. Strategic planning in bank foundations is affected by the particular nature of their business, which comprises both asset management and grant-making activities. In Italian bank foundations, every 3 years, the Board of Trustees identifies within the multiannual planning document the areas of intervention, describes the strategic objectives to pursue within them, and estimates the expected funds to realize such objectives. Every year, the Board of Directors prepares an annual planning document that describes for each sector of intervention the objectives to pursue during the next year and the funds that predictably will be allocated to them. Finally, the Board of Directors identifies an analytical plan for deliberations pertaining to the annual articulation of the activities planned for the next year. Favouring the proper allocation of responsibilities to the different organs that contribute to pursuing the mission, strategic planning can support the good governance of bank foundations.