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Executive Director
By Melanie Lockwood Herman
“An infinite-minded leader does not simply want to build a company that can weather change but one that can be transformed by it. They want to build a company that embraces surprises and adapts with them.” – Simon Sinek
Across the U.S., and the world, many nonprofit teams are confronting decisions with potentially devastating impacts. The risk of losing a primary source or stream of funding—a risk that tops the list of risk worries for many nonprofits—has moved from the distant horizon to the front burner.
Black Swan events, chaos theory, and the unpredictability of human behavior and Mother Nature add up to a world that consistently defies our confident forecasts. Not even thoughtful scenario planning will enable us to imagine the precise futures our organization will face or the obstacles we will inevitably encounter. Therefore, resilience is fundamental to mission success.
At NRMC we believe that “simplify” and “streamline” are keywords for coping with disruption. If you face an existential threat or mission-disrupting event or decision over which you have no control, gather your team to take these actions.
Step 1: Sort key activities and strategies into 3 major categories:
Step 2: Reflect on key questions about the priorities in each category. For example:
During the COVID pandemic, a colleague told us about the “fallacy of crisis management,” sharing his view that, in the middle of a crisis, it feels as though you are focused on the most significant risks (possibilities). But the truth is that many leaders focus too intently on what they know (or think they know) about their present circumstances, and spend too little time discussing knowledge gaps and looking ahead at the horizon.
During times of crisis, looking at the horizon feels like a luxury. But because we care about the people and missions of the organizations we steward with pride, we must look up and out to the vistas in the distance. As you look to that horizon, carve out time today to infuse your team and organization with the resilience it will need to imagine and safely navigate to a brighter future. Consider the following to help you focus:
If you’re planning to shutter or scale back programs you may be able to resurrect in the future, jot down a short list of steps and strategies to bring those programs back on line. What would be required? What are the ‘nice-to-do’ tasks—to tackle now and then—that will reduce friction during a period of resumption?
If you knew many months ago that policy changes or other developments would necessitate program closures or restructuring, what would you have done? Make a list of what you would have done differently given six months’ advance notice that the crisis you’re facing today was coming. What steps would you have taken to ensure a smoother transition to scale back or re-engineer operations?
In a previous edition of the RISK eNews, I shared Gary Keller’s advice from his book, The ONE Thing. Keller urges readers to set aside exhaustive lists and focus on ONE thing that has the potential to make a significant difference. Keller writes, “To-do lists tend to be long; success lists are short. One pulls you in all directions; the other aims you in a specific direction.” What ONE thing can you do today and tomorrow to help your mission bounce back from loss, disappointment, and circumstances beyond your control? Keep asking that question throughout the period of crisis for your nonprofit.
The best path to get your body—or your nonprofit—back in shape is to choose a manageable routine. Simon Sinek explains: “We can’t simply go to the gym for nine hours and expect to be in shape. However, if we go to the gym every single day for twenty minutes, we will absolutely get into shape.” With this potent advice in mind, identify a handful of realistic routines you can implement to begin re-building a strong organization to advance your mission.
Resiliency is a quality that we wish for ourselves, our loved ones, and our cherished nonprofit organizations. We can’t achieve it overnight or become resilient by wishing and hoping. It takes small steps every day to slowly and steadily prepare for a brighter future. What steps and strategies will you embrace to foster resilience?
Additional NRMC Resilience Resources
Note to readers: If you have found, created, or adapted a resilience-building tool or worksheet and you’re willing to share it with other RISK eNews readers, please send it to info@nonprofitrisk.org.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of NRMC to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of NRMC. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The NRMC team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!
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