Tips for Managing in Hard Times
by mollypenn
Many of my clients are looking at strategies for managing their nonprofits during this recession. The first wave of reactions was, in many cases, layoffs or furloughs. Now that the dust has settled from the emergency response, there is a need to adjust the management mentality to a recession economy in other ways as well. But this does not have to be such a “sobering” exercise. Here are some suggestions for concrete ways in which you can use this period to position your organization for the inevitable economic recovery:
- Draw “bright lines” (as a colleague likes to say) around your most important programs. Use the following criteria to focus and bolster those programs that are vital to your organization:
- Is the program mission-critical (i.e. imperative to achieving your mission)?
- Is the program profitable or break even? If not, take a deep look at why not, and if it is not a necessary program look to bring it to a soft landing.
- Ask your staff for input in this program analysis – they are on the front lines.
- Is the program still being funded?
- Focus on staff with an eye toward the future – now is a time to invest in your remaining staff. They remain because they are among the most necessary and highly qualified. Look at how they are being deployed. Engage them in retreats to plan for the distribution of work in the near term, and most importantly to look at how their funcitonal areas may develop over time and what skills will be needed longer term. This is your opportunity to think proactively about what additional staff you may need to add back longer term, and how to do that strategically.
- Engage with funders – so many nonprofits have lost funding, had funders close down, or been told to rotate out of funding cycles for a year. For those funders who are still with you, call them! Engage them by telling them what you are doing to manage during this recession. Offer to work collaboratively with them to strengthen your organization or to participate in panels they might want to put together. Fortify your relationships with those who have demonstrated their commitment to you by continuing to fund your work.
- Energize and activate your board beyond fund raising – just as this is a hard climate for you to fund raise, it is equally hard for your board members. Don’t let them get discouraged. Engage them with the organization in other ways – form task forces of board members to help you analyze programs, or to design staff development programs. Keep them involved, sleeves rolled up, and active with the work that attracted them to your organization in the first place. Utilize their expertise between board meetings. You will need them as a resource for you now and going forward.
- Tightening your belt means you must compensate in other ways – don’t be afraid to walk around and chat with your employees. Spend time asking them about what they are working on. Thank them for their devotion during a difficult time (see my other blog on Maintaining Morale During Change).
- Be on the lookout for collaboration opportunities – perhaps you can collaborate with another organization to reduce the cost of providing services and therefore increase your program’s financial performance – but don’t stop there! If you collaborate, tell people about it, most particularly your funders. They will want to know that you are being creative about how to accomplish your mission more efficiently.
- Communicate, communicate, communicate – transparency is more important now than ever before. Managers are being forced to make very, very difficult choices. Establish a system for making those choices that allows you to be totally transparent with your stakeholders. And when your organization accomplishes something positive, share it with all your stakeholders. The old adage still holds true – people are attracted to success. Don’t miss any opportunity to tell your board, staff, funders and clients what you are doing and why.
If you have other suggestions you would like me to add to future blogs, please comment!
