management

Executive management in hard times - Retrenchment, reflection, transition, recovery

posted by
Herb Paine,

President
Paine Consulting Services

What’s a nonprofit executive to do when all the forces of nature, politics, and the economy conspire to thwart organizational (program and resource) development?

The answer lies in leveraging the crisis strategically for the opportunity that lies within the eye of the storm, in daring to lead beyond expectations and risking professional comfort.

Yes, a unique and seismic convergence of economic (the Great Recession and its aftermath), political (Congressional stalemate on the national budget and sequestration), social (demographic shifts and changes in attitudes and values regarding social responsibility), and technological (the democratization of social media and alternative forms of charitable expression) have taken a financial and programmatic toll on nonprofits. Today’s storm is unlike those of past economic downturns in both scale and duration.

In other words, times are rough for nonprofits, and every indication is that they are going to get even rougher and more challenging. These dramatic changes in the marketplace have broad implications for organizational governance and for the viability of the conventional nonprofit business model.