Trimming the Fat
by mollypenn
In a recessed economy, with job losses mounting, endowment values falling, and heightened sensitivity to inappropriate spending, how do we trim the fat without losing mission-critical services?
One organization I know is using task-forces, made up of board members, staff members, and content experts (who can be trusted to maintain confidentiality) to study certain segments of the business and propose a plan for sustainability going forward. Ways to reorganize that aspect of the business to maintain mission services, maximize profitability and minimize risk or exposure.
Crucial to this type of study is a financial analysis based on scenario forecasting. The task-force articulates certain assumptions going forward, and budgets are created based on those assumptions. Having numbers in hand makes us feel much more confident about our decisions in a risk-averse climate. Plus, it has the added benefit of showing your funders you are serious about “trimming the fat.”
If you elect to use task forces, it is important for the group to articulate how the particular area of business they are studying relates to the mission, and how they recommend preserving or maximizing services to clients. It is also recommended that the task force have a timeline, with clear deliverables, and a format for their final recommendation. This keeps them focused and helps produce the analysis you need to support your thinking.
In this climate, trimming the fat means looking for the extremes: minimize financial drain, maximize client service.
