Standards for Canadian organizations

2020 Edition

For-Profit Administration and Financial Management (CA-AFM) 2: Strategic and Annual Planning

The organization engages in an inclusive, long-term, strategic planning process and annually conducts short-term planning in support of the long-term goals and objectives.
2020 Edition

Currently viewing: FOR-PROFIT ADMINISTRATION AND FINANCIAL MANAGEMENT (CA-AFM)

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Purpose

The for-profit organization ensures accountability through effective administration and management, and sound financial management practices.
Note: Please see the Governance Standards Tool Kit - Strategic Plan Template for additional guidance on this standard.
1
The organization's practices fully meet the standard, as indicated by full implementation of the practices outlined in the CA-AFM 2 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the CA-AFM 2 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the CA-AFM 2 Practice standards.
4
Implementation of the standard is minimal or there is no evidence of implementation at all, as noted in the ratings for the CA-AFM 2 Practice standards.
Self-Study EvidenceOn-Site EvidenceOn-Site Activities
  • Strategic and annual planning procedures
  • Long-term strategic plan
  • Review of service population demographics
  • Assessment of strengths and weaknesses
  • Community Demographic Profile
  • Annual plans
  • Meeting minutes where mission fulfillment and strategic planning were discussed
  • Interviews may include: 
    1. Owner
    2. CEO or designee
    3. Senior management
    4. Relevant personnel

 
Fundamental Practice

CA-AFM 2.01

Strategic planning includes:
  1. envisioning and setting the organization’s strategic direction; and
  2. engaging in inclusive, management-directed, organization-wide long-term planning at least every four years.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • One of the standard's elements is not fully implemented.
3
Practice requires significant improvement; e.g.,
  • Long-term planning has not been done in more than four years; or
  • One element is not addressed at all.
4
Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
  • Long-term planning has not been done for more than five years; or
  • The strategic plan is wholly inadequate or nonexistent.

 
Fundamental Practice

CA-AFM 2.02

The organization’s long-term planning process includes:
  1. a review of the organization’s purpose or mission, values, mandates, and strategic direction;
  2. a review of the demographics of its defined service population;
  3. an assessment of strengths and weaknesses;
  4. measurable goals and objectives that flow from its purpose and mandated responsibilities; and
  5. appropriate strategies for meeting identified goals, including the need to redirect, eliminate, or expand services to respond to changing community demographics and the needs of persons served.
EAP

Interpretation

 
In an EAP demographic information should be representative of its customer base.
Examples: To enhance its assessment, organizations can draw upon the findings of other external needs assessments, such as those conducted by the United Way, municipal planning boards, universities, or other organizations with a community-wide focus.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • The review of service population demographics did not include all populations served or geographic locations; or
  • The strategy (element (e)) for meeting one or two of the identified goals needs greater specificity.
3
Practice requires significant improvement; e.g.,
  • One of the elements has not been implemented; or
  • The organization did not review the demographics of its service population; or
  • Identified goals and objectives are vague; or
  • Most identified goals and objectives are not measurable; or
  • Strategies for meeting identified goals are cursory and do not provide a sufficient framework for success; or
  • Long-term planning has not been done in more than four years.
4
Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.
  • Two of the standards elements have not been implemented; or
  • Long-term planning has not been done for more than five years; or
  • The strategic plan is wholly inadequate or nonexistent.

 
Fundamental Practice

CA-AFM 2.03

The organization develops and implements an annual plan that supports its mission or purpose and integrates the priorities and objectives of each of its departments and programs, and:
  1. operationalizes the goals and objectives of the long-term strategic plan;
  2. reflects organizational responses to changing conditions and needs such as, resource allocation, funding and regulatory changes; and
  3. responds to information from PQI activities.
Examples: Annual plans can also incorporate other regular planning processes, including:
  1. HR planning;
  2. evaluation of training needs;
  3. budget planning;
  4. technology and information management planning; and
  5. PQI summary reports.
1
The organization's practices reflect full implementation of the standard.
2
Practices are basically sound but there is room for improvement; e.g.,
  • Departmental priorities and objectives could be better defined; or
  • While department and program plans are not integrated into an organization-wide annual plan, all but one or two departments or programs have developed a comprehensive annual plan.
3
Practice requires significant improvement; e.g.,
  • Management objectives are not included; or
  • Several departments or programs are not included in the most recent annual plan or have not done an annual plan; or
  • One of the elements is not addressed at all.
4
Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
  • Two of the elements are not addressed at all.