Keeping up with the dreaded economic news? Nonprofit executive directors are evaluating organizational stamina: Are we in a recession? Will my donor base remain strong? Will it be like COVID? Anything close to the Great Recession? How do I keep the contributions coming in? How do I take care of my team? Or will it blow over before we even know it’s happened?
Questions can keep us up all hours of the night, but “keeping up” means being ready. In my long gray-headed life, I have weathered 10 recessions. Though none of them were fun (well, the first one, I was an infant, so it may have been fun), recessions are an inevitable fact of economic life. They don’t get easier. But they do become more manageable to those who are experienced in navigating their organization through the turbulence.
What are we hearing now —
- At last report, inflation hit 9.1% — definitely a tough situation.
- Fed Chair Jerome Powell on prospects of a soft landing: “There’s a path for us to get there. It’s just not getting easier. It’s getting tougher” as reported by AP June 16.
- White House economic advisor Brian Deese, asked about recession: “There are always risks” as reported by Fortune May 22.
- Bruce Kasman, chief economist for JP Morgan Chase & Co.: “I’ve been more pessimistic about the opportunity of stabilizing inflation at an acceptable level without a recession” as reported by Bloomberg June 12.
Essentially, a majority of economic leaders (and those who are not political appointees) think we are either IN a recession now or WILL BE in a few months/quarters. Nonprofit leaders know from experience that whether it is a formal recession or simply an economic downturn, their costs are going up, their contributions will likely take a hit, their razor-thin margins will get thinner, and their staff will be worried.
When you’re ready —
I include this out clause for any of you who may NOT be ready. It means that our industry, the nonprofit sector, has a habit of reactionary leadership in turbulent economic times. We’re great at serving those in need, making a difference in our sphere, and inspiring our teams and boards. But our front headwinds tend not to be economic but rather programmatic and institutional. We tend to notice later that revenues are down.
Recessions affect organizations in many and varied ways. Those relying on government grants may not see a negative impact for a year or two. Those with major individual gifts may see immediate declines since gifts are often tied to a donor’s stock portfolio. Those of you in community services may wonder if you will ever see a decline in demand, while those in the arts have learned to watch the economy closely. (Our team at Capacity Partners represents all these sectors, and we see the varied impacts. Plus, we do leadership coaching!)
The point here: Be Ready. There really is no out clause for a drop in contributions.
Four Strategies You Should Work Right Now
1.) Communicate more. All of your stakeholders should know that you are paying attention to the economic uncertainty affecting your service sector and your contributions. Your beneficiaries need to know that you are there for them. Your community should be aware of your forefront position in serving them. Your donors need to know that you appreciate them. And need them. Your board needs to know that you are proactively looking – and counting on their help – toward new and pledged resources.
According to Network for Good, “Ten Strategies for Recession Fundraising,” strategy #6 is “Identify Plans B, C and D: Consider subletting a section of your current office to another nonprofit. Do you have equipment that could be sold? Develop a cause-marketing partnership with a company.”
2.) Revise your cost structure. Yes, you can! Everyone thinks their budgets are made of concrete, that their expenses are set, that there is no wiggle. You can be creative. So says Praveen Kishorepuria, Managing Director, Zero-Based Transformation, Accenture North America: “Zero-based cost transformation offers multiple options for increased flexibility….many tactical, repeatable activities can be virtualized or outsourced.” The strategy is to find partners, outsource when possible, use board member companies to provide bridge services, delay hiring….anything to reduce the expense line can dramatically (even if temporarily) improve the bottom line. And if you are worried that you are susceptible to a downturn, you should consider a dramatic 20/20 strategy, explained below.
3.) Get closer to your donors. This is the most important strategy for protecting contributions. Donor retention during a downturn is the surest measure of whether you will survive a recession intact. If you are already close to your Top 10%, then get close to your Top 25%. Imagine being on the bubble of a donor’s portfolio. If you are not among their top philanthropic priorities, you will likely be dropped from their giving program if their income is negatively impacted. Clarifying: when the donor’s ability to contribute is constricted, you will be cut. Unless you are among their top beneficiaries.
Staying close to your top donors, listening to their interests, providing worthwhile recognition, and affirming impact all will result in secure donor retention. Many nonprofits are funded at 80% by their top 20% of donors. Try to ensure that you are among their top beneficiary organizations.
4.) Work with your senior team to develop a dramatic 20/20 program. It’s simple; it brings your leadership together; it works. And it is nearly impossible to do. All you have to do is reduce your expenses by 20% and increase your revenues by 20%. Done! Except that it is excruciatingly difficult.
In a normal economy, it is not unusual to experience a decline in revenue. We manage through those experiences by cutting our costs in the 3rd and 4th quarters and squeezing our board for end-of-year giving. In a recession, you could lose a large percentage of your revenue, 10% or more, maybe 20%. You should always have a plan for cutting 20% of your expenses. Unfortunately for most, it means cutting our most important resource, our people. If you start now, and for most of you entering a new fiscal year, now is the RIGHT time to start, you can figure out how to disperse duties, what operational shortcuts you can enact, what professional services you can delay…all before the contents of your anxiety hit the fan.
But that is only the start. What if you lose revenues by 20% but you ALSO have a plan for raising an additional 20% by the end of FY23. This is difficult but not impossible.
The questions that will lead to increased revenue are:
- What grants have I not applied for that will allow for administrative infrastructure?
- What companies are my major individual donors aligned with and with whom I could get a meeting?
- Which of those companies offer a matching gift program?
- What companies could provide a corporate sponsorship that I haven’t contacted, and what benefits would attract them that we could produce?
- Who among my board is well-connected and could broker three prospect meetings in the next three months?
- What additional service sectors could I explore that might attract a significant new source of revenue?
- What members of my senior team could I enlist to help raise additional money?
- Can my finance and marketing teams come together to devise a trackable and concise plan that we can all rally around?
- How should I plan for a recognition event at the end of the 3rd quarter to thank those who are helping out and to inspire those to give by the end of the year?
These and other questions will lead you to an ambitious and challenging plan to get you to 120% of your budgeted revenue. Whether you lose significant current donors becomes hedged by the new revenue development you have just created.
A 20/20 plan is very difficult. But it is achievable, and if you start now, at the beginning of a fiscal year, it is not out of the question that you can emerge through a recession in a new position of strength.
Recessions Aren’t All Bad
Imagine post-recession that your organization has emerged stronger. You may have fewer staff members, but they are effective and productive. Your leadership team has experienced the come-from-behind success story that they embody to your stakeholders. You have weathered the turbulent conditions and come through them more focused and more capable than before.
You may have attracted new long-term investors in the organization. “Recessions aren’t disastrous for nonprofits. During typical recessions since the 1950s, giving has actually gone up on average, albeit by a modest 0.3 percent a year,” says Patrick Rooney, an economist at Indiana University’s Lilly Family School of Philanthropy.” (from Ben Gose, The Chronicle of Philanthropy, January 7, 2020)
A Few Final Thoughts
A diverse, cross-funded organization is the safest during periods of economic uncertainty. Nonprofits that are heavily reliant on government funding, or those with a mostly corporate donor base, are the most vulnerable. Create a comprehensive development plan that is represented by stable and varied sources.
Speed is king. The sooner you implement solid, consensus-developed and well-communicated strategies, the more likely you are to weather the recession when (okay… if) it comes.
Finally, remember that people – your people – are the most important asset you have. Recessions come and go (and come back), but how you handle those around you will reflect your values and integrity for years into the future. Treating your team with respect will last a lifetime.
Resources from The Chronicle of Philanthropy
“Eight Steps for Managing Through Tough Times,” Bridgespan
“Tips to Navigate Financial Crisis,” Nonprofit Finance Fund
“Hard Times, Hard Decisions: 7 Things Small and Midsize Charities Should Do When a Recession Looms,” Chronicle of Philanthropy
Attending to Retention
While the worst impacts of the pandemic may be subsiding, the so-called Great Resignation seems to be going strong. Nonprofits are feeling this at least as much as any other employer. Your people are your greatest asset in delivering on the promise of your organization. How can you keep them?
For many nonprofits, retention via better compensation is not an option. One key may be to better connect the mission of your organization to the people who work there. Working for a nonprofit often is a choice partially motivated by an individual’s identification with what your organization stands for and accomplishes. If you can’t pay people more, aim to build a culture that makes it easy for them to take personal pride in the work and your value proposition because they are part of something that is making a social impact.
Building culture and connection have become even more important with many workplaces operating in hybrid on-site/remote fashion permanently, naturally heightening a sense of disconnection.
Here are some tactics to strengthen your organizational connective tissue:
COLLABORATE
The hybrid workplace for many organizations is here to stay. This brings with it a natural tension – and potential resentment – regarding being in the office setting. But this also can be leveraged as an asset. Consider being intentional in terms of expectations about when your team must be in the office, so that those times primarily are dedicated to collaboration that works best in person.
Collaboration certainly is possible via Zoom. But different dynamics are in play when people are together in person which can spark deeper interactions. Rather than requiring someone to go into the office mostly for the sake of showing up to sit at a desk, make sure that those in-person times for your team are planful and include productive collaborative time together to exchange ideas and move projects forward.
Collaboration also is stronger through inclusion. A Capacity Partners client who is in the middle of a strategic planning exercise realized the pandemic and hybrid work environment produced a morale issue: those required to come into the office felt it was an unreasonable obligation to fill in for those who are working from home. The Executive Director decided to involve all the senior staff in the strategic planning process, who then in turn involved the rest of the staff. What began as a discovery of low morale actually became a strategy for inclusive collaboration. Together, they realized there is much work to be done in order to build a positive, forward-reaching organization. The outlook brightened for a renewed, transformed organization.
COMMUNICATE
Are changes coming up in your organization? Make sure those are communicated early and well. You want to give your team the sense that changes are happening with and perhaps even because of them (see previous bullet point on inclusive collaboration), rather than happening to them.
ELEVATE
Your team can help tell your organization’s story. In addition to validating their work, you will be emphasizing their importance in delivering on your organization’s mission. Consider featuring staff members and their mission-driven successes in fundraising pieces and general communications (social media, newsletters, short video interviews shared on social platforms).
ACKNOWLEDGE
The documented reality is that different generations view work and their relationship with it very differently. Recognize that a one-approach-fits-all is unlikely to satisfy a workforce that is diverse in terms of age, and adapt. Here are some ideas from LinkedIn on tailored approaches for Millennial employees. Acknowledgment also means recognizing people are dealing with many types of stress that can affect their commitment level and productivity. Show your colleagues your humanity by checking in with empathy and grace. During the pandemic, an Executive Director of one of the organizations that CP serves became a father. He readily acknowledged how his new role in the family dramatically transformed his ability to show empathy for his staff’s personal lives and commitments.
CP Vice President Michael Feinstein led a large nonprofit organization in the Washington, DC, area for more than a decade. When COVID hit and remote work became the norm, “I changed the cadence of my one-on-one, team, and staff meetings to check in more frequently and focus on how they were feeling in addition to what they were doing.” He notes that a key to being available to others “was managing my own stress, which meant regular exercise for me.”
EMPOWER
If you’ve hired the right people, give them the freedom to do their jobs. Let them know they have your trust to get the job done even when they aren’t sitting in the same place you are.
BUILD CONNECTION
In a hybrid environment, managers must be far more intentional about creating a sense of connection and belonging. Tactics can be simple but meaningful, such as every Monday morning sending out a message to your team asking how their weekend went and sharing a bit about yours. Intrusive? Perhaps. But people can share as much or as little as they like, and it will help them connect with each other too, especially at a time when they may no longer be bumping into each other in the breakroom. Make it easier for them to feel like they belong to a team.
We welcome new VP Michael Feinstein
I am delighted to announce that Michael Feinstein has joined CP as Vice President. He will make our very strong team even stronger. I’m particularly thrilled because Michael’s expertise in both the nonprofit and commercial worlds will deepen our capabilities in serving small and large nonprofits, both locally and nationally. He brings a business mindset to mission-driven organizations. His wealth of experience in strategic planning and board governance will strengthen the services CP has to offer. I also am excited he will be introducing business planning services to meet the varied needs of our clients. On a personal level, I have known Michael for a decade and have been mightily impressed by his creativity and leadership at Bender JCC. We are very lucky he is bringing his talents to CP as we mark 20 years of providing full-service consulting to nonprofits.
You can learn more about Michael here.
Next Steps for NextStop Theatre Company
As Covid-19 crashed into our area a year ago, the arts faced unique challenges as stages went dark and classes moved to virtual platforms. Professional theaters, such as the NextStop Theatre Company in Herndon, Va,, were thrust into unfamiliar, unprecedented circumstances. Not every arts organization survived, let alone thrived, but NextStop Theatre Company, working with Capacity Partners consultants Amy Selco and Stephanie Hanson, reached for … and attained … a new level of strength and stability over the past year. A capacity-building grant from ARTSFAIRFAX brought Capacity Partners and NextStop together.
When the pandemic rocked our economy to its very foundations, NextStop Theatre hesitated to fundraise because they believed their community’s need for food, shelter, and other basic necessities ought to be Northern Virginia’s top charitable priority. Evan Hoffmann, NextStop’s Producing Artistic Director, said, “Our roots grow deep in our community, so before we asked for funds – even though we believe the arts are essential for our souls -- we made sure that our neighbors were getting their basic sustenance needs met first.”
Capacity Partners Consultant Amy Selco adds, “In June, the board recommended the launch of the NextStop Now Fund with an audacious goal of raising $100,000 in just six months to ensure their theater and its invaluable programs would make it through to the other side of the pandemic.”
Working with Capacity Partners, NextStop didn’t simply raise funds; it changed its culture. “NextStop did the difficult work, especially since all the work happened in a virtual space, to move from a transactional fundraising culture to one that embraced philanthropy as a core value,” said Capacity Partners consultant Stephanie Hanson.
With the change of culture and the smart implementation of development strategy and tactics, NextStop Theatre has come within inches of making its long-shot goal of raising $100,000, added four new board members, and made fundraising an expectation of all board members.
“NextStop Theatre is a vital part of our community, and because of the generosity of our board members and hundreds of donors, we are here today and will be here tomorrow, producing theatrical performances and educational programs that are uniquely ambitious, intimate, and accessible both in and for the Northern Virginia community,” said Evan Hoffman with a determined smile. “The insight and wise advice from Capacity Partners, the fierce determination of our excellent board and staff, and the much-appreciated support from the community merged through our incredibly successful NextStop Now campaign to ensure the arts will continue to be a treasured pillar in Northern Virginia.”
How Coaching Can Make You a More Intuitive Leader and a More Creative Innovator
If someone offered you a magic elixir that would increase productivity, improve communications, deepen staff commitment, decrease stress, develop a culture of trust, prevent burnout, better manage risk, and leverage your personal power, wouldn’t you buy it?
Leadership coaching is that elixir, and contrary to what many may believe, it’s not only for those who aren’t performing as well as might be expected; it’s also for those who want to take their leadership from very good to extraordinary or for those who are experiencing significant challenges (like running a nonprofit during a pandemic and recession.)
A national nonprofit leader recently worked with one of Capacity Partners’ leadership coaches, Louise Stoner Crawford, and said, “I feel like a better person as a result of my coaching experience….the positive changes are showing up in all of my relationships in my life….work, family, and friends. This speaks to the transformative power of coaching and the dramatic effect that this can have on individuals and our communities.”
Coaching can develop those leadership qualities that have been empirically proven to be associated with success. These include: cognitive capacity, social capacities, personality style, motivation, knowledge. Focused on the future, not the past, the right leadership coach can enhance performance, build confidence, and help tackle difficult problems.
One leader Jeanine Cogan worked with for years said, "Leadership coaching is a wonderful source of support for me - smart, wise, and compassionate. I had obstacles that were getting in the way of my success. Jeanine helped me identify, understand, and address those obstacles so I could get out of my own way."
Here’s what the experts who study leadership coaching say:
- Coaching dramatically improves working relationships, resulting in a 5:1 return on investment.
- Return on training that is paired with coaching can be productivity increases of up to 88% – four times the increase without coaching.
- When a leader is unsuccessful and derails from their position, it typically costs an organization 150% of salary. This figure is in addition to productivity loss and team disruption.
How does leadership coaching work? Through one-to-one conversations – conversations that can happen remotely in this era of Covid – a leadership coach will help you or your key staff members move past an impasse, learn new skills, and work through communication challenges. Leadership coaches are not therapists; they are sounding boards, guides, and problem-solvers.
But leadership coaching isn’t for everyone. It works best when someone has a genuine desire to learn and grow. People who tend to blame others for their failures or act as victims rarely benefit from leadership coaching
Of course, a good fit is essential; the ineffable chemistry between two people must be right to build the trust required for optimal results. You don’t want just any leadership coach – you want an experienced, savvy, personable coach whose only focus is meeting your goals.
Capacity Partners has two outstanding coaches – Louise Stoner Crawford and Jeanine Cogan – who are ready to help you, your key staff, and your board members meet the unique challenges of leading a nonprofit organization in 2020. Want to learn more? Louise and Jeanine would be delighted to chat with you. Simply email them at louise@capacitypartners.com and jeanine@capacitypartners.com.
The future of fundraising
“Giving Plunges 6% in First Quarter” “Number of donors dropped by 5.3 percent”. “25 billion in lost revenue for nonprofits”
The headlines about the latest Giving USA study are scary, but do they portend an apocalyptic future?
Capacity Partners is encouraged that donations under $250 rose by six percent during the first quarter of 2020. We also know of some nonprofits that saw their coffers swell during the pandemic; organizations providing disaster relief and pandemic-related services have seen a surge in generosity. Organizations focused on racial equity are also seeing an upswing in contributions. Of course, other organizations are realizing mergers might be their only salvation as they watch income plummet.
Foundations are still making grants, but many are shifting funding to emergency relief for basic human needs, making it harder for arts groups to get funding. Organizations who were hoping for a grant for projects such as strategic planning may also find it more difficult to get support.
So far, virtual events are more successful than anyone thought they would be. Hopefully that stays true as virtual events remain the norm for the foreseeable future. It is difficult to imagine any in-person events being held for the rest of 2020, and maybe even the first part of 2021.
Right now, the rising stock market should result in major donors feeling comfortable keeping their commitments, but as we know from past experience, the market is capricious and as the economic recovery chugs along with a high unemployment rate, that could change. As furloughs become layoffs and as special unemployment benefits run out, budgets could tighten with less money available for charitable giving.
Fortunately, local and federal government grants and loans have kept many nonprofits whole in FY21; the question is what happens in FY22 as disaster relief programs end and government budgets are slashed due to revenue shortfalls.
In general, most corporations will be decreasing contributions, either cutting out all or a portion of many of their sponsorships. Capacity Partners predicts the effect on revenue will likely be in the second half of the fiscal year.
So much about future fundraising is uncertain; actually, so much about the nation’s future is uncertain. Covid-19 will be forefront in everyone’s minds for many months. The economy will remain fragile until coronavirus is controlled. Politics and the November election will generate stress-inducing headlines. All this is true, but equally true is the remarkable power of resiliency, caring, and determination.
Our advice? Stay close to your best donors. Stewardship is more important than ever. Don’t forget to give some of your attention to new donors, too.
In 2019, even though it feels like a lifetime ago, charitable giving showed solid growth, climbing to $449.64 billion, making that year one of the highest for giving. Capacity Partners believes that in good times and in bad, people will donate to the causes they believe are critical. Mary Robinson, Founder and President of Capacity Partners says, “Yes, even in a pandemic and in a period where unpredictability is the only thing one can accurately predict, people will give to the causes they care about.”
In a couple of weeks, we will be conducting a survey of nonprofit leaders to enable us to do a deep dive into the current state of the nonprofit sector in the DC metro area. We hope you'll participate in this brief survey so we can better understand the current situation and make recommendations to nonprofits as they navigate these unprecedented times.
Fundraising in these unsettled times
The world feels unsettled as our news feeds and lives fill with protests against pervasive racial inequity, a powerful and capricious virus that affects nearly everything, and an economy officially in recession. As nonprofits know better than anyone, this is a situation ripe for an increased demand for services while boards of directors and development staff fret over fundraising. Here are some tips to help you and your nonprofit organization raise the money you need.
1) Tell your story well and tell it often. Your donors -- both individual and institutional -- need to hear how you are making a difference under these unique circumstances. Use a variety of methods -- emails, social media, videos, Zoom calls, phone calls, etc. While it's always important to be a good donor steward, it's especially critical in uncertain times like these.
2) A matching gift can boost fundraising efforts. Perhaps your board will chip in to create a matching gift fund. Perhaps a long-term contributor will agree to a matching fund. The prospect of doubling a donation may help motivate on-the-fence supporters.
3) Avoid emergency, desperate requests for funds. You may not be sleeping as you obsessively pore over spreadsheets, but this is not the moment to share your anxiety with an anguished plea for money. Convey realistic optimism rather than panic.
4) Don't pre-judge your supporters. Don't assume they no longer have funds to give or won't appreciate hearing from you. Give your contributors the chance to show you how much they treasure your organization's mission.
5) Focus your time and efforts on current or past donors.because some organizations, especially those not providing direct coronavirus or racial inequity services, may find it more difficult to attract new donors right now.
The last three months have shown how many organizations are continuing to raise money effectively. Some are even surpassing their goals ... and not just disaster relief organizations. Some of our clients' events are hitting record highs, and some are getting generous grants. Unfortunately, some nonprofits are still having a tough time. Recovery will be an ever-evolving process so stay nimble — and ask.
Big challenges and big opportunities for the arts community
The arts have never been more important than they are today. They bring joy, act as a healing force, and educate the young and old. The arts are a key component of the economy and an important community partner as we recover and reinvent our world after the pandemic.
On May 22, Capacity Partners Founder and President Mary Robinson was honored to join Anne Corbett of Building Creative and Linda Sullivan, President & CEO of ARTSFairfax for an ARTSFairfax webinar focused on planning for what’s next in the Fairfax County arts community in the wake of the COVID-19 pandemic.
The challenges that organizations have faced over the last two months are extreme. Arts organizations, and really most nonprofits, are losing revenue, facing staff layoffs, and shifting strategies in how work gets done. However, with every challenge comes an opportunity.
As Mary Robinson noted during the webinar, to maintain organizational viability over the long term, organizations should use Dynamic Planning to create three, six, and twelve-month plans. Starting with the formation of a Dynamic Planning committee, organizations would then use the iterative Dynamic Planning process to reaffirm their mission, asses their strengths and weaknesses, and conduct scenario planning, identifying multiple scenarios and solutions.
For example, Capacity Partners client Arts for the Aging was committed to keeping their teaching artists on salary during the pandemic, despite cancelling all in-person workshops. The team of teaching artists has now activated multiple distance and virtual programs to continue serving their audience of older adults and their caregivers. Although the method of program delivery has changed, Arts for the Aging’s mission remains front and center.
Anne Corbett stressed arts organizations have a unique opportunity to be leaders in community resiliency and reinvention, utilizing multiple partnerships, audience engagement, and advocacy opportunities.
Some of the ideas discussed on the webinar include:
- Partnering with a food bank to include art kits in food boxes
- Partnering with real estate developers to bring outdoor art or performances in a socially distant and safe manner
- Producing virtual theatre or art shows and partnering with a restaurant or catering company to deliver a meal to patrons participating at home. (This would also work for virtual fundraising events.)
Webinar participant Lisa LaCamera, Senior Director, Communications & Marketing at Wolf Trap Foundation for the Performing Arts, said, “People are realizing the healing nature of the arts in times of crisis. People all over the world appreciate the need for the arts to get through this.”
Capacity Partners encourages arts organizations – and all nonprofits – to embrace the opportunities, confront the fear, create the plan, and move ahead to our next normal. The canvas of opportunity lies in front of all of us, and Capacity Partners stands ready to support you if you need a jump start.
How Dynamic Planning Can Help you Chart a Course During this Unprecedented Time
Before coronavirus, a strategic plan was enough to navigate the future, but now that we’re dealing with a pandemic and recession (or even a depression), nonprofit leaders need a different way to think about planning that builds in the agility and creativity required during these extraordinary times. And that different way is the fast-paced, flexible Capacity Partners® Framework for Dynamic Planning.
Dynamic Planning sets up a process of regular reassessment during a time of significant change; COVID-19 now, but it could also be unexpected leadership turnover, security breaches, or a sudden major drop in funding. It may seem like two steps forward, one step back for a time, but through an iterative process, boards of directors and staff can use Dynamic Planning to lead their organizations through a rapidly-changing environment and onto the “next normal.”
We’ve identified four stages in Dynamic Planning. In Stage One, you quickly develop a Response Plan that enables your organization to react to a crisis in a purely tactical fashion. While Mission, Vision, and Values still ground your organization, this is the “oh no, what is happening?” stage. During the current COVID-19 crisis, organizations transitioned to telework, assessed cash flows, and set up a response team to keep the organization functioning.
Some organizations are now in Stage Two, or Monitoring. During this stage, you remain flexible to manage ongoing change and adjust your response plan quickly. Focus tends to be operational, and board leadership is critical as your organization figures out funding and strategic direction. You may need to make hard choices about staffing and delivery of your services. Don’t forget to keep your funders and key stakeholders in the loop—communication remains vital to relationships, especially as you continue to pivot.
While adjusting operations and serving the immediate needs of your stakeholders can be all-consuming, at some point you must focus on your future—your “next normal.” This is what we call Stage Three – Planning Ahead. For some, planning ahead will involve moderate changes to an existing strategic direction; others will need to reinvent their business models significantly.
Your board and key staff will create a series of scenarios based on hypotheticals about what the future holds and different courses of action. You will lay out plans for multiple options since projections in this unprecedented time will often be wrong. Will we have a winter spike or a quick vaccine? When will people be comfortable attending in-person programs and meetings? Will the financial impact of one scenario vs. another be so great that we will need to revise our services, consider a merger, or dramatically reimagine our future?
The end result of this strategic thinking will be a Dynamic Plan lasting six to twelve months. Those organizations that think strategically and are open to reinventing themselves as necessary will be the ones that not only recover but rebound.
Finally, in Stage Four, Transition, you are ready implement the Dynamic Plan you created in Stage Three. Since the path of COVID-19 and the economic recovery remain so uncertain, you will likely unfold your Dynamic Plan in stages, staying flexible and prepared to pivot as the world continually changes.
As you work your way through the four stages, it is critical that you examine the impact on all facets of your organization, including your culture, stakeholders (board, staff, donors, volunteers, and clients), fundraising, finances, marketing, communications, programs, and technology. As part of our Dynamic Planning Framework, Capacity Partners has created pragmatic worksheets for every stage of the process.
Through Dynamic Planning, your transition will be based on clear thinking, and like a sailboat, tacking to your ultimate destination, you will arrive at a future that advances your mission and enhances your organization.
Capacity Partners’ expert consultants can help your organization use Dynamic Planning to ensure your continued success during these unparalleled times. For a copy of our worksheet or more information on our services, please contact us at info@capacitypartners.com or (240) 462-5151
(And click here if you'd like to listen to a short, informative webinar on Dynamic Planning in the Time of Covid-19 and Beyond.)