Mission-Based Management
In Times of Financial Difficulty

 

Your Presenter

•      Peter Brinckerhoff

–   Corporate Alternatives, inc.

–   2707 West Washington, Suite C

–   Springfield, IL 62702

–   217-787-6993 (voice)

–   217-787-9316 (fax)

–   peter@missionbased.com (email)

–   www.missionbased.com (website)
 

 

Our Agenda…

•      Introductions

•      What is Mission-Based Management?

•      Signs of a Troubled Nonprofit

•      10:00 Break

•      Strategies for Tough Financial Times

•      Mission & Board

 

Visit www.missionbased.com

•      Management, marketing and technology ideas.

•      Not-for-profit links

•      Publications & other resources

•      Information on training.

•      Sign up for free-online newsletter.

•      Free management tools.

 

Three Core Philosophies…

•             Your organization is a mission-based business.

•             No one gives your organization a dime!

•             Nonprofit does not mean no profit!

 

Predictions

•      Government less important, less flexible, and less likely to bail you out.

•      Boomers age….

•      More demand for services.

•      A more competitive environment.

•      Tech, tech, and more tech.

•      More accountability.

 

What Works?

•   A viable mission statement

•   A businesslike board

•   Strong, well-educated staff

•   Wired, and technologically savvy

•   Social entrepreneurs

•   A bias for marketing

•   Financially empowered

•   A vision for where you are going.

•   Tight controls

•   All of these characteristics work together.

 

What is a Mission-Based Manager?

•   Someone who balances mission needs with available resources.

•   Someone who innovates, and takes risk on behalf of the people the organization serves.

•   Someone who leads by example, motivating their staff, board, and community.

•   Someone who can communicate effectively.

 

The Signs of a Troubled Nonprofit

•   No Financial Information

•   Severe staff turnover

•   Severe board turnover-or lack of quorums

•   No new programs or methods of mission provision

•   No budget-or one that is amended each month-or one that is ignored.

•   Out of date personnel/financial or other policies.

•   No continuing education for staff/board.

•   No current strategic plan.

 

More Signs of Trouble…

•   No (or severely limited) sharing of internal information among staff and board

•   The organization breaks even or loses money each year.

•   The organization is severely leveraged.

•   There is NO staff or board turnover.

•   Marketing materials are out of date-or service centered.

•   There is no website, or just an elementary one.

 

What  kinds of crises do we face?

•   Financial—our budgets are reduced.

•   Ethical—someone in the organization does something illegal or immoral and we have to deal with it.

•   Community change—a major shift in community need. For example: a one factory town’s factory closes. There is a crisis outside our doors.

 

How do we respond?

•      Panic!

•      Angst!

•      Kneejerk responses!

•      A flurry of activity but no positive outcomes.

 

How should we respond?

•      Focus on our mission.

•      Look at strategic and tactical issues.

•      Focus on our mission.

•      Keep our discussions internal.

•      Focus on our mission.

•      Make sure we are LEADING.

•      Focus on our mission.

 

Adversity and  Opportunity    

•      Remember that challenging times also bring impetus for needed change.

•      Make the best OF a situation, and also make the best OUT OF the situation for your organization in the long run.

•      Stay focused on your mission.

 

Starting Questions…financial crisis..

•      How bad is the shortfall?

•      What is the cause of the shortfall?

–   Donations, major contractor, systemic.

•      Is the shortfall long-term or short-term?

•      Is organizational viability at risk?

•      Are services at risk?

•      Are legal responsibilities/contractual obligations at risk?

 

Strategic Responses-to any crisis

•   Review the mission and values statement —what does it say about priorities?

•   Review the strategic plan — what does it say about priority services?

•   Review the marketing plan --- what markets are most important?

•   Talk to peer organizations --- are there group responses that are appropriate?

•   Talk to state trade associations --- what are other organizations doing?

•   Is there a need for long-term, strategic restructuring?

 

Tactical Responses-for any crisis

•   Run weekly cash flow projections.

•   Develop a small group of board and staff to deal with the crisis. Include your banker? And accountant?

•   Inform staff and board early and often—weekly or daily updates.

–   Communications is CRITICAL.

–   Be open and available for questions.

–   The rumor mill is your worst enemy.

•   Review contractual obligations.

 

Tactical Responses-continued-for financial crisis

•   Check state labor laws, union contracts for layoff/cutback limitations.

•   Inform vendors of possible late bill payments.

•   Inform creditors.

•   Develop best case, middle case, worst case scenarios. Share this with a board-staff crisis team.

•   Can everyone take some pain to avoid layoffs? Remember that lower-wage people may not have the ability to take a 10% or even 1% cut, and that minimum wage is minimum wage.

 

Tactical Responses

•      If layoffs are necessary, do them carefully, in complete accord with state regulation, union contracts, and best HR practices.

–   Sooner is nearly always better with layoffs.

•  Communicate, communicate, communicate:

– with staff, volunteers, service recipients, community members, funders, vendors, and creditors. Prepare for media inquiry.

 

Leadership checklist…

•   Am I getting enough sleep, exercise, nutrition?

•   Am I asking the hard questions?

•   Do I have the information I need?

•   Am I sharing information widely?

•   If other staff have to take a financial hit, am I taking a bigger one?

•   Am I leading optimistically?

•   Am I putting mission first?

•   Am I listening to everyone?

 

Holding on to your core values

•      Not all changes are for you.

•      Review new opportunities in light of your mission and values.

•      Try to pick those opportunities that make you more mission-capable.

 

Questions…..          

•      Questions for Peter, or for your peers about the issues we’ve discussed?

 

Thanks!

•      Have a great lunch discussion and I’ll see you all later this afternoon.

•      See me today, or remember to call or e-mail with any questions!