The siren wails as the ambulance steers left then right to navigate the complexity of heavy traffic at rush hour. It’s not clear which route is best. The patient is hanging on, but the stress is mounting.
In these disruptive times, leaders of nonprofits and associations are frequently the “ambulance drivers” for their own organizations, steering an uncertain path to get those they serve to safety.
Though they may feel a bit frazzled behind the scenes, many are navigating well. The most effective leaders are regularly and transparently communicating; checking on staff to ensure they are healthy and focused; figuring out how to adapt to new rules and procedures and daily financial challenges; reaching out to those they serve to make sure they’re okay and feel valued; stepping up quickly to make hard decisions and keep things moving forward.
The question is: If leaders are “driving the ambulance” during a crisis, how does the board best add value? The answer according to many nonprofit and association executives? By helping leaders see further down the road.
“The board needs to focus on serving as a helpful helicopter above the road”, suggested Fraser Pajak, former CEO of Quest Forum, now part of the Telecommunications Industry Association (TIA). “Boards need to help leaders see ahead and around the corners, and see traffic down the road.“
Research my firm is currently conducting with nonprofit and association executives, in co-operation with the Canadian Nonprofit Academy [1], is surfacing four specific ways board members can help leaders de-risk their future by being able to see further down the road during challenging times.
1. Focus on the Destination
The first priority is to re-confirm your mission. Your mission serves as the “North Star” for prioritizing all decisions when changes are required.
“Start with confirming the mission is still valid. Then evaluate how that mission can be fulfilled in new ways,” said Michael Hofmann, leadership coach and former CMO of Welthungerhilfe, a German NGO that fights against hunger around the world. “When you need to make changes to how you execute, people will often question whether you are abandoning your mission. The board can help keep the focus on the organization’s purpose as well as on the concrete possibilities to promote it that still exist (or even emerge) during the crisis.”
2. Provide Context for Making Decisions
An experienced diverse board can provide leaders with important context: perspective about the changing marketplace, experience with consequences of proposed changes, and future implications of today’s decisions.
Listening is key. “Board members help us listen, providing critical feedback about our members’ needs and their changing priorities,” shared Shirley Bloomfield, CEO of NTCA, The Rural Broadband Association.
“Two-way transparency between the board, staff and members about challenges you are facing and new options you are considering is important to building trust,” offered Todd Thibodeaux, President and CEO of CompTia, a leading technology association. “This input enables you to listen better and gain ongoing feedback as you test and validate options going forward.”
“Leading in a crisis requires putting today’s decisions in context of future impacts. Although we must be responsive, we must do so strategically,” offered Emma Quin, Executive Director of the Toronto-based Textile Museum of Canada.
Understanding future impacts means understanding a changing landscape. Many boards get concerned that changes to how the mission is achieved will put the organization at risk. Yet, previous approaches may no longer be relevant or even desired. One example: recent health restrictions on in-person events have disrupted the way non-profits and associations deliver their value and raise funds. Yet, many organizations are starting to realize that their stakeholders actually value virtual options, and are considering a hybrid model of convening (face-to-face along with virtual) going forward.
A board with a strategic lens might also encourage leaders to consider new partnering opportunities or even mergers that could improve efficiencies and leverage expertise. This may require courage.
“A crisis is a forcing function that gives every leader an opportunity to turn the strategy and business model on its head”, posed Jeannie Diefenderfer, CEO of courageNpurpose and board trustee for Tufts University and Olin College of Engineering. “Every non-profit leader must assess the organization’s reason for existing and have the courage to explore how to deliver value to their clients in a different way. This includes considering combining with other organizations to create an entity that’s more financially stable with a broader set of offerings.”
3. Optimize the Business of the Organization
It becomes evident in difficult times that some board members do not fully understand the business model of the organization they serve, especially the revenue model for funding key activities. CEO’s who have demonstrated good fiscal management and built up reserves, despite demands to spend in good times, are the unsung heroes during a crisis.
But leaning on reserves is not a viable ongoing business model. A crisis creates an opportunity for the board and the leadership team to step back and evaluate together how the business model may need to be adjusted.
“We have to run the business of our association”, shared Susan Medick, CFO of the American Association for Clinical Chemistry. “Adopting a mindset for strategic risk-taking is helpful. We can learn from businesses in other industries who’ve survived when revenues were at risk, and consider innovative new approaches.”
The Business Model Canvas [2] can be used as a helpful tool to provide a common vocabulary and a way to think through the impacts of changes you are considering. It is a way to systematically look at each element of the business model and ask: What are the risks? What are the opportunities?
4. Use Your Megaphone
One thing most nonprofit and association executives say they appreciate from board members during difficult times: Actively advocating for their organization. Whether by communicating confidence in the staff, reaching out to members to stay engaged and donate, or by donating themselves, board members can add value by visibly demonstrating support.
Susan Burke, who leads operations for the Choral Artists of Sarasota emphasized: “Boards can engage in all areas, whether it be fundraising, giving directly, scouting out resources, developing helpful connections and collaboration. In a crisis, we need to employ every option.”
Are You Stepping Up?
Going forward in the next normal, nonprofits and associations leaders will still need to “drive the ambulance” and navigate many unknowns. Board members are needed that will step up and add value by helping these leaders see around the corners and de-risk the bumpy road ahead.
If you’d like to discuss ways to de-risk your organization’s “next normal”, contact me at susan.schramm@gotomarketimpact.com
[1] Research with executives and board members of nonprofits and associations about navigating during a crisis conducted in 2020 by Go to Market Impact LLC (www.gotomarketimpact.com) in collaboration with Canadian Nonprofit Academy (www.canadian-nonprofitacademy.com)
[2] Osterwalder, Alexander; Pigneur, Yves; Clark, Tim (2010). Business Model Generation: A Handbook For Visionaries, Game Changers, and Challengers. Strategyzer series. Hoboken, NJ: John Wiley & Sons. ISBN 9780470876411.
