Belinda: Having just returned from the summer board meeting of the non-profit Institute for which I serve as President, I am really appreciating the concept of Recovery Leadership. When you first coined the term, Kelly, I wasn't sure that it was time to be focusing on recovery instead of just surviving. This board meeting was all about recovery, as it turns out. We had a great response to our programs this summer and I realize that we need to be planning for an increase in revenue just a few short months after worrying about whether we can keep the place open. It is a big 180 turnaround in my thinking.
Kelly: Great story, Belinda. I think the hardest thing in the world is ignoring the obvious threats in front of you, and focusing instead on opportunities that aren’t there yet. It seems completely irresponsible, but it’s exactly what’s called for when recovering from a crisis, such as a difficult acquisition or the economic recession we’ve all been going through. Recovery Leadership means setting aside trying to manage the present so you can focus instead on building the future. There’s a leap of faith involved that makes the difference between leaders and companies who surge ahead in the recovery that inevitably follows crisis, and those remain stuck in the past. Sounds like your board is on the right track!
Belinda: What I notice is having to restructure the budget to plan for spending based on several possible levels of revenue and to invest in projects that increase our outreach while also upgrading our facilities. We are funding a new position to handle increased programming. All of this is based on seeing the increased interest in our current programs and building toward a stronger economy in the next few years. If we don’t lay these new foundations we will not be able to respond quickly in the future.
How does this experience with a non-profit organization compare with corporate environments?
Kelly: It’s fundamentally the same. We know of course that scale matters, that large organizations have a more difficult time pivoting quickly than small ones do, but otherwise non-profits face the same challenge as for-profits: When and how to start creating a dynamic future if you’re still struggling with current problems. Some things to think about:
1- When a financial crisis ends, the recovery from it is almost always faster and longer-lasting than the decline. There’s no reason to think that won’t happen this time around. When it does, what will it mean for your non-profit and what new opportunities might open up for you? What new opportunities can you create? The same thing applies in large companies, or even in departments within the company: When the pendulum swings back the other way, what will your (sales/IT/finance/marketing/etc) department do to seize the day?
2- If you haven’t already done so, start accumulating cash. Building something new will involve spending beyond to your normal operating expenses. You have to be ready. No matter how tight things are now, if you want to take advantage of new opportunities, then you need to find ways to reduce your cash outflow and put money in the bank now, while times are tight. Or you have to be willing and able to borrow, but that’s a whole other conversation. In a departmental corporate world, this means cutting expenses even deeper, so you’ll be ready to invest.
3- One of the hardest things about tough times is how they affect the people on your team. Bottom line: they’re a huge downer. While it’s completely normal for your staff to have 20/20 vision for today’s crisis but be blind to the boom times coming, attitudes like that effectively stifle energy and innovation. Your role as the leader is to (a) make it clear that you have a plan and the organization will weather the storm, and (b) show them the road ahead, demonstrating your confidence, optimism and excitement about where you’ll all go together. This is where true leaders really shine and it’s when the next generation of leadership emerges.
Our 2 cents worth….comments invited!
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