Estimated Reading Time: 6 minutes
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
As we continue to cope with disruptive consequences caused by COVID-19, many nonprofit sector leaders crave the comfort of stability. Everyone is daydreaming of a time when everything can return to “normal.” As appealing as the concept of stability might outwardly seem, there is another concept that will produce a more enduring organization poised to achieve its mission. Simon Sinek thoughtfully explores and contrasts the concepts of stability and resilience in his most recent book: The Infinite Game.
As I finished reading this book, I reflected on these concepts and how timely they are to the global pandemic situation under which we are all operating. In The Infinite Game, Sinek discusses why resilience is preferable to stability. He writes, “A company built for resilience is a company that is structured to last forever. This is different from a company built for stability. Stability, by its very definition, is about remaining the same.”
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 the core, many nonprofits already utilize resilience mindsets in the development of their service programs. For example, national youth-serving nonprofits often recognize resilience as a quality that our children need to thrive:
Resilience—the ability to adapt positively to adversity—is key to health and well-being throughout our lives. A scholarly article from the National Institutes of Health reports that “Resilience scores have been demonstrated to be positively correlated with mental health and physical functioning of the elderly.” The article cites additional studies that explore “how resilience ameliorated the negative effect of adverse events on health and well-being.” And while these studies focus on physical health, we can make correlations to how resiliency bolsters organizational health as well.
Members of our team were recently talking about the COVID-19 crisis with a leader from a consulting client. The leader spoke of 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. A true crisis consumes your focus and attention. This means that it’s very hard to focus on significant issues that may be barely visible on the distant horizon. Those hard to focus on issues may be another crisis in the making.
Looking ahead to the horizon may feel like a luxury your organization simply can’t afford during this unprecedented time. But if we care about the people and community-serving 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 organization with the resilience it will need to safely transition to a brighter tomorrow. Consider the following steps to help you focus on the future:
Sadly, most organizations aren’t resilient. According to the consultancy McKinsey, most companies last two decades or less and only the minority endure over time. Resiliency is a quality that we wish for ourselves, our loved ones, and our cherished organizations. We can’t achieve it overnight or become resilient by wishing and hoping. Small steps taken every day are required to slowly and steadily prepare for a brighter future. What steps and strategies will you embrace for your resiliency routine?
Additional Nonprofit Risk Management Center resources for resiliency:
“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 the Center 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 the Center. 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 Center 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!