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Management Tip
Coming Out of the Recession Stronger

There may be some readers who expected to see the second installment of "Nonprofit Innovation" in this month's edition. Sorry-you'll have to wait until April, but this topic is very, very closely related. I hear far too much talk about "nonprofits surviving" the recession, and hunkering down, getting by, working their way through the economic hard times. It's gotten to the point that I really need to speak out, so here we go.

As a steward, your job is to make decisions each day that make your nonprofit more mission-capable. If your organization entered this recession financially weak, or over-extended, or under capitalized (and we think about 60% of nonprofits did just that) then survival may be your primary first thought. That said, this financial malaise is an opportunity for you, your staff and your board to rethink a number of things so that you can come out the other end of the recession tunnel stronger and more able to do great mission for the long term. Let's look at some things to think and talk about to help you achieve that goal:

First, think through your core business model. Are you doing things you are really good at (core competencies), or are you just taking money from anyone? Recessions are very hard on nonprofits trying to avoid mission creep. Stay focused on what you do best. Review your mission and your strategic plan if you feel that will help, but most of all, focus on what you do best.

Second, Are you too dependent on one source of revenue? For example, many Illinois nonprofits that receive most of their funds from the State of Illinois have had to wait six months for payment this year......six months. Or what about the New York nonprofits that counted on the largess of Lehman Brothers....remember Lehman Brothers? Take a look at your income streams and think through whether what you are getting paid for is worth the dependency.

Third, look at what's happening in your community. Predictions are for over 100,000 nonprofits in the US alone to close in the next 12 months...that's about 1 in 8 nonprofits, so some will be near you. Pay attention to what's happening around you and think carefully when approached by a failing nonprofit asking to be absorbed by your organization.

Fourth, focus on your people. They are stressed, of course, like everyone else. You want to do everything you can to keep your best people on board. As a leader it's very important to be out there, visible with your staff and volunteers. Don't hide behind your open door policy. And lead optimistically. If you go around looking and acting like Eeyore in Winnie the Pooh, well, that's a communicable disease.

Fifth (and there's more on this in the Marketing and Tech tips), keep up your external visibility. Polish your website and your outside marketing efforts. Let your core funders (and donors) know what you're doing. Tell them about your plans, your re-organizations, re-focusing, etc.

Finally, retool, if you can. Send staff to training, update your website, put a new coat of paint on your offices or service space. Why? Because this shows you are preparing for the future, not just trying to get through today.

Remember the words of Andy Grove (the former CEO of Intel) has said: "Weak organizations are doomed by a crisis, good organizations survive them, and great organizations are transformed by them." Be great. Your mission, and the people you serve, deserve it.

March, 2010 -by Peter C. Brinckerhoff