Even though the current economic crisis seems huge and immediate, nonprofit organizations can think in the long term about ways to position themselves, react to changing economic conditions, and have the broadest input possible from the constituencies they serve.
The Fieldstone Alliance (also used as a resource in the first post in this series), offers organizations questions to ask to identify “Opportunities in Lean Times,” encouraging self reflection as a way to stay strong through economic turmoil:
“Know thyself. In tough times, it’s even more important to be crystal clear about your mission, your competitive advantage, and your strategies. Having your organization’s mission foremost helps you make decisions that are best for the people your organization serves. You also need to understand your competitive advantage. When undertaking significant strategic work, the organization must know itself (who are we?), its position in the market (Where are we?), and its history (How did we get here?). Then, when it gets caught up in the complex possibilities inherent in most Big Questions (where do we go next?) and in finding successful strategies (how do we get there?), it is less likely to lose its way.”
Contingency planning has also been a consistent theme in many of the articles listing tips and best practices for hard times. Thinking in the short- and long-term, the Bridgespan Group encourages organizations to plan ahead for any situation:
“Act quickly, but not reflexively, and plan contingencies. In the current climate, this means taking immediate action: to manage costs aggressively, to do away with nice-to-haves, and to delay undertaking new initiatives. It also entails developing explicit contingency plans, even if your organization is not yet feeling any pain. Waiting to get specific until the wolf really is at the door will not make the choices any easier, but will sharply increase the likelihood that the available options will be fewer and more draconian.”
Finally, engaging broad stakeholder input is offered as a key ingredient for nonprofits looking to plan for success in tough economic times. The Fieldstone Alliance advises organizations to:
“Use “kaleidoscope” thinking. If you’re looking for new ideas, but you’re asking for input from only your board and staff, you’re likely to get the same answers that you’ve gotten for the last two years. Here’s how you can start putting kaleidoscope thinking to work: convene local nonprofits to talk about the issues and brainstorm options; network with small and midsize businesses with a personal stake in the local community; and hold community issue forums – discuss community goals.”
The tips above offer strategies to strengthen nonprofit organizations in tough times. Visit the following links for the full text of each article:
Fieldstone Alliance: http://www.fieldstonealliance.org/client/focus-opportunities_in_lean_times.cfm
Bridgespan Group: http://www.bridgespan.org/learningcenter/resourcedetail.aspx?id=2638
For even more information, visit The Denver Foundation’s website and check out “Resources for Nonprofits” for a more complete list of websites and articles offering resources in a variety of areas.
3 responses so far ↓
Molly Cannon Stevenson, CFRE, CAHP // January 30, 2009 at 10:15 pm |
To piggyback on the guidance offered by The Fieldstone Alliance, I would suggest drilling further to identify opportunities and challenges with the way our organization does its work.
Perhaps a survey with stakeholders and opinion leaders of opportunities presented by and challenges to our resources of time, technology and talent?
If, for example, systems for information management and communication are critical to our work and mission, then how can we use existing resources in technology to do things differently or better? What financing is available to provide technology improvements. Or, where do we turn for technical assistance?
For the entrepreneurially- minded who want to look at their infrastructure after the planning and self-examination suggested by Fieldstone Alliance, I would suggest a resource, http://www.socialedge.org, the newsletter published by The Skoll Foundation.
Molly Cannon Stevenson, CFRE, CAHP // February 3, 2009 at 9:42 pm |
Thomas Tierney and others from The Bridgespan Group (www.bridgespan.org) have written an article on management in challenging times in the current issue of “The Chronicle of Philanthropy”.
The article is entitled “Four Questions for Charities to Answer as They Seek to Thrive in Tough Times.”
While the particulars of the featured nonprofit organization and its adaptive strategies may not apply to all organizations, the questions for self-examination posed by the authors are generally relevant.
The authors say that the most important question that organizations should ask themselves are:
1) What results will we hold ourselves accountable for?
2) How will we achieve results?
3) What will the results really cost and how can we finance them?
4) How do we build the organization that we need to deliver results?
A subscription to The Chronicle is required to read the article. But, there is related information on the Bridgestar website which does require a subscription.
Roundup: The Economy’s Impact on Nonprofits & What to Do About It | Step By Step Fundraising // February 27, 2009 at 1:01 pm |
[...] Denver Foundation advocates planning ahead and the importance of self-reflection, contingencies, and broad thinking: Even though the current economic crisis seems huge and immediate, nonprofit organizations can [...]