Reference no: EM131012195

Commentary on the internal and external factors that might impede the development of a successful financial strategic plan presented in the following article:

The Dream Big Foundation Inc., is a nonprofit organization developed in 2010 by J. Reddick-Williams in North Carolina (TDBF, 2010). The Dream Big Foundation was created to assist those exiting prison with a chance to learn how to adapt in a world that can at times be unforgiving. The goal is to decrease recidivism by offering an array of services that will uplift the ex-offender (TDBF, 2010). The Dream Big Foundation is a reentry program for ex-offenders of nonviolent crimes that provide services such as anger management, parenting, self-esteem building, application assistance, job training, drug testing, group coaching etc.(TDBF, 2010). These services are offered to assist those released from prison a chance to get back on their feet and become law abiding citizens while reducing recidivism (TDBF, 2010).

Every organization experiences pitfalls when change is involved and internal and external factors can hinder the development of a successful financial strategic plan. In order to grow and continue to develop as a successful organization, managers must be skilled in able to notice and handle any change in the internal and external environment (Casey & Seay, 2010). An internal factor that can hinder a successful financial strategic plan is their human resources department. Casey & Seay (2010) discusses how a successful organization is as good as its workforce. The hiring and training of staff is an area that particular attention should be paid too due to the fact that this is where the organizations capability is birthed. If proper staff isn't hired or if employees are in need of training in addition to the initial training provided upon hire will cost the organization additional monies, which can limit the organization's financial strength (Casey & Seay, 2010). Moreover, good training is an important part of management that should never be overlooked (Moynihan, 2012). Another internal factor that can hinder the development of a successful financial strategic plan is its assets (Casey & Seay, 2010). Assets have the ability to make any organization (especially non-profits) prosperous or unsuccessful. If the organization has the supplies it needs then functions of the employees are not hinders however, if supplies are scarce, then staff will not be able to perform duties to the best of their ability and clients will be unsatisfied hence the organization receiving a poor reputation (Casey & Seay, 2010).

Just as there are internals factors that hinder the development of a successful strategic plan, there are external factors as well. One external factor is the economic conditions in our country. If the country is suffering economically it makes it difficult for citizens to spend as they may be used to spending (Moynihan, 2006). It also hinders the government and any monies (grants, loans etc.) that may have been available to non-profit organization (Moynihan, 2006). Non-profit organizations depend on grants, loans and fundraisers. If the nation is in financial turmoil, then citizens are spending less, therefore fundraising will not be profitable. Loans will be scarce and grants that had been available prior to the hardship may not be available for present disbursement (Moynihan, 2006).

In order to overcome these internal and external factors, strategic planning is in order. Human resources would need to be more strategic in the hiring process by hiring more skillful or educated people and extend training sessions (Moynihan, 2006), so that all types of learners could come away feeling as if they benefited from the training because people do learn both by visual and audio. With the organizations assets it is essential to be careful with equipment, tools and/or supplies. Do not spend frivolously and keep everything legal (Casey & Seay, 2010). You want to take the best possible care of the few assets you have. Lastly, the external factor of economic conditions can be overcome by spending very little and not giving up with grant applications and fundraising. Although, there are national financial hardships, it is still possible to bring in funds on a smaller scale (Moynihan, 2012).