Moving the Needle

The economy remains volatile and government cuts are upon us.  The needs in our communities are growing and even the strongest nonprofit organizations are struggling to “steady the ship.”  Executive Director and CEO transitions, too, are disrupting the ability of nonprofit organizations to remain effective.

As nonprofit funding changes, community need increases, and executive directors transition, it makes sense that the most caring and connected foundations and corporations are looking for ways to ensure the health and stability of their own “mission-critical” grantees.  Karen Brown (Support Center Board Member and Fairfield County Community Foundation VP of Programs), in a recent interview in Philanthropy News Digest’s Philantopic said, “We’ve been urging grantees to continue to invest in staff and professional development and not to look at those kinds of investments as frills…funders need to consider supporting these programs in order to help organizations hold the line on their budgets without sacrificing effectiveness.”

Many private and corporate funders are investing in efforts to ensure the health and well-being of the nonprofit groups and communities they care about.  JPMorgan Chase Foundation, the Altman Foundation, and the Prudential Foundation are just three of the many foundations that are demonstrating a real commitment to nonprofit effectiveness and impact, and are partnering in the Support Center’s efforts to guide nonprofit change and transition.

While we know that some of our readers have worked directly with us and have experience with all of these services, we realize that many of you may not be as familiar with our full scope of offerings.  Here is a brief overview:

Executive Search and Transition Management (ESTM)

A change in leadership, whether from a founder, long-time executive director, or a mismatched hire, can be a pivotal time in the life of a nonprofit—presenting an opportunity to examine organizational challenges and make decisions for future directions. Here at the Support Center, we use the proven techniques of Executive Search and Transition Management  to address organizational needs and work to strengthen the whole organization, while also successfully managing the hiring of a new leader. Our three-phase process addresses a nonprofit’s needs through an organizational assessment, facilitates the hiring of the new executive, and guarantees a successful outcome with “on-boarding” consulting for the new leader. Throughout the process, our consultants work hand-in-hand with board members, staff, funders and other stakeholders in the community.

Change Consulting and Turnaround Services

In addition to facing leadership changes, NYC nonprofits—like many others nationwide—have been hit by significant declines in funding in the wake of government shortfalls and the volatile economy. Nonprofits—from arts and culture groups to human service organizations—are undergoing painful reassessments and restructuring, including mergers, acquisitions, collaborations, cutbacks and closings. Adjusting to this new economy means increasing effectiveness and sustainability for many small to mid-sized neighborhood based nonprofit organizations. Increased funding from foundations this year allows us to reach out to more nonprofits and provide critical Change Consulting  services that can help them assess current programs, improve financial management, increase board engagement and fundraising effectiveness, while keeping our fees affordable to NYC-area small and mid-sized nonprofits.

Professional Development and Cohort Learning

Each year we strive to develop the best course offerings, listening to your requests and needs for professional development. As we plan for 2012, increased funding will allow us to expand the range of workshops, tailor them to your time-frames (half-day, full-day and evening offerings), and add more custom programming at affordable rates. In addition, we also will be developing new opportunities for cohort learning. The Trajectory Leadership Group we formed this year has confirmed our belief that cohort learning is an effective means for executive directors and other senior nonprofit professionals to learn new skills and learn from one another in a supportive atmosphere outside of their offices and daily activities.

Find out more about our work and partnerships by visiting us at www.supportcenteronline.org.

In this new book, authors John Brothers, Senior Fellow here at the Support Center, and Anne Sherman,  of TCC Group seek to help nonprofit leaders figure out how to effectively navigate change within their organization, no matter how large or small the nonprofit might be.  They use the theory of nonprofit  “lifecycle advancement’  as a type of change management that can help organizations build capacities that are appropriate to each stage of a nonprofit.

“A central question for leadership is to identify where, and when, to focus organizational energy, and that is where Brothers and Sherman’s book comes in. Changing organizations is never easy, which is why managers need the right set of maps and tools—like this one.” Jon Pratt, Executive Director, Minnesota Council of Nonprofits.

What’s Included?

Chapter One:  Change as a defining force in the nonprofit sector

Chapter Two – Chapter Six: Examines the five life cycle phases of organizations, including a discussion of how an organization in decline can navigate a turnaround

Throughout the text the authors:

• Make the case for a deliberate change process, yet also acknowledge the very real challenges
• Provide a context for the struggles that nonprofits face
• Offer success stories
• Offer frameworks and tools that leaders can apply in their own organizations.

Building Nonprofit Capacity is a highly useful guide for nonprofit professionals who want to focus on capacity building efforts that will yield the greatest impact. Books can be ordered at Amazon.

John Brothers, is a Senior Fellow at the Support Center for Nonprofit Management  and the owner of Cuidiu Consulting in New York City.

Anne Sherman is an Associate Director and Co-director of the Strategy Practice at TCC Group in New York City.

There was a time in the nonprofit world when bringing up the “M” word (merger) was avoided like the plague.  Our volatile economy and drastic government budget cuts have opened the door to greater discussion and exploration.  While such exploration may not be for everyone, there appears to be evidence that there are a host of benefits to such exploration.

The Forbes Funds in an article from their Tropman Reports publication notes that “The exploration process is time consuming but viewed as worthwhile, even if organizations don’t merge.”  Some of the benefits highlighted include:

• Organizations that don’t merge often instead structure program alliances with their merger exploration process.
• The process helped clarify and reinforce organizational missions.

In our own experience at the Support Center, organizations that take this journey of exploration are able to clarify their unique value within their community, have an enhanced understanding of their capacities, and – in some cases – discover cost savings and program innovation opportunities.  A good time to explore a merger is during an Executive Transition (learn more here).

Merger exploration can often result in other forms of restructuring that may be helpful to your organization such as joint programming, strategic alliance, collaborative proposal writing, consolidation of services or administrative functions, and cross-referral agreements.

Can exploring a merger opportunity benefit you? Please leave a comment and let me know.

The new economic challenges we are all facing have given rise to a dramatic up-tick in conversations around building collaborations and exploring mergers. Not surprisingly, when I talk to nonprofit CEOs and board members about their success in such endeavors, the reports are mixed.

Regardless of the results, our sector will need to learn more about what makes collaborations and mergers work. We will need to stay nimble, flexible and innovative if we are going to be able to meet the needs of the communities we serve. The Forbes Funds of Pittsburgh recently commissioned research on mergers and collaborations and highlighted the following issues:

• The primary driver for merger exploration is expansion of capacity to deliver on the mission, closely followed by increased competition and the viability of one of the two organizations

• Leadership questions are key in mergers

• The chances for success are heightened when strong ties already exist with a potential partner

• Although the timeline to complete the merger typically met leaders’ expectations, full integration takes much longer to address due to challenges and obstacles resulting from cultural differences

Are you considering a new partnership, alliance or merger for your organization? Take a look at some of the things that are being learned about mergers (“What Makes Mergers and Collaborations Work?” from The Forbes Funds).

Let me know what you are learning and please leave a comment.

-Don Crocker

CEO/Executive Director

Don Crocker

A board member of one of our area nonprofits recently told me that “the board doesn’t hire the nonprofit CEO; the nonprofit CEO hires the board”.

Are you kidding me?

Sadly, the reality of this perception is frightening — especially given the current economic realities we face.

Here are some thoughts for Board Development and Effectiveness in 2011:

1. Increased board engagement is NOT optional! Boards must step up and govern and they must be “in-charge” of hiring and firing CEOs

2. The board as a body and as individuals must sharpen their understanding and ownership of finances

3. Board members must up their activity in engaging new supporters and stewarding long-term supporters

4. The board leaders and CEO must communicate openly and often

5. The board must organize itself and its individual members to be effective and efficient, set clear goals for itself, and regularly measure its progress toward results

Our most thoughtful and progressive boards are renewing their commitment to strategic planning and organizing their meetings to determine how board members can fuel staff efforts to meet organizational imperatives.

Let’s talk about this and let me know what your board is doing to fuel your strategy in 2011.

Please post your comments/strategies.

Many of us start the New Year by taking stock of where we are and where we are headed.

It might serve us well to do the same for our organizations. Where is your organization right now and where are you headed?

A terrific tool to help you in this reflection is the Five Life Stages of Nonprofit Organizations by Judith Sharken Simon (Fieldstone Alliance. 2001).

In her piece, Ms. Simon highlights five life stages of nonprofit organizations:

• Imagine and Inspire
• Found and Frame
• Ground and Grow
• Produce and Sustain
• Review and Renew

Nonprofit Life Cycles (PDF)

In Stage Five “Review and Renew” “the organization is reinventing itself in some way, shape, or form through a process of review and renewal.”

In our current environment many organizations find themselves in Stage Five due to the rapid changes in the needs of our clients and communities, funding, and other resources.

Here are some tips in engaging through the fifth stage:

o    Check your assumptions:
Check in regularly with your clients, your peers and partners, and your funders to get a better handle on the environment in which you are working

o    Benchmark your peers nationwide:
Get a handle on what is happening with “like” organizations that have similar missions and goals to yours, and understand what is working and not working for them

o    Keep “strategy” alive:
Be sure everyone understands your organization’s strategy and incorporate time in each board and staff meeting to make sure you are on-track, overcoming obstacles, and achieving your objectives

o    Don’t go it alone:
Ask for help.  Keep your key supporters in the loop and ask for assistance that can help your organization remain (or get back to being) healthy, focused, and successful

As one of your partners, the Support Center is here to help.

Visit our website to see what we are up to this year and how we can help:

>>> Professional Development/Workshops

>>> Executive Search &Transition Management

>>> Consulting & Turnaround Services

The FoodBank of Monmouth and Ocean Counties, founded in 1984, serves over 270 pantries, soup kitchens and other feeding programs with over five million pounds of food annually.

With a new, state of the art warehouse and office complex completed in 2001, the FoodBank has seen an 84% increase in the number of individuals and families served since 2005.

Over 1,000 volunteers complement staff efforts to provide emergency food, skills training, outreach programs and advocacy for individuals and families in need.

Once the incredibly busy holiday season was over, the Executive Director, Susan M. Kelly, and Board Chairman, Robert Brown, engaged the Support Center to facilitate both a board retreat and a strategic planning process.

Marie Zieger

Marie Zieger, Senior Affiliated Consultant, and Don Crocker, Chief Executive Officer, are looking forward to working with the FoodBank team over the next six months to draft a blueprint for the future.

>>> Consulting Services

The vision that drives Lincoln Square
Neighborhood Center was born over 100
years ago with the rise of the Settlement
House movement.

Rooted in this tradition, Lincoln Square Neighborhood Center was founded over 60 years ago on the west side of Manhattan.

Their mission is to improve the lives and life prospects of the residents within their community: the greater Lincoln Center neighborhood.

Programs and services are provided to over 2,700 individuals and 1,250 families, from pre-schoolers to senior citizens.

Melanie Schmidt, the new Executive Director of the Lincoln Square Neighborhood Center, recently transitioned from interim to permanent Director, and has been benefiting from executive coaching with Dart Westphal, Senior Associate at the Support Center.

Sessions are focusing on developing strategies and activities to achieve strategic objectives, operational targets and measurable outcomes.

Going forward Ms. Schmidt plans to work with her coach focusing on expanding the organization’s fundraising efforts, strengthening the staff’s commitment to the goals of the Center, solidifying her working relationship with the board of directors and honing her own leadership skills.

>>> Coaching Services

Recently, two of our strongest ambassadors provided the opportunity for 250 nonprofit professionals to engage in dynamic conversations with funders about their priorities and goals.

“The panel assembled by the Support Center was truly top-notch, comprised of veterans in the field of corporate philanthropy and sponsorship, each of whom was eager and willing to share their expertise and advice on how to move our organization forward.”
Michael Gary, VP for Corporate & Foundation Relations,
New York Botanical Garden

By Don Crocker, CEO/Executive Director

Don Crocker

Unfortunately, in the recent challenges posed by a difficult economic environment, many organizations find themselves in difficult, sometimes “crisis” situations where they need to decide a course of action designed to “turn around” the organization.

Many people ask, “What are the key elements needed to move the organization in a better, more sustainable, more practical direction?” Here are some thoughts:

1. Someone must lead
2. The leader must have a plan and a “team”
3. The leadership team must engage with the plan
4. You must focus on today and tomorrow, not yesterday
5. You cannot exclusively “save” your way to organizational health
6. Tough decisions must be made quickly, but with respect and thoughtfulness
7. Marketing at this stage is about relationships and communication, not just brochures and advertisements
8. There must be a lead spokesperson, all must be “on message,” and the message must be positive
9. Fund raising must be focused, realistic, and targeted to the larger donors and/or grantmakers
10. The board must allow itself to be restructured
11. Organization restructuring must be an option
12. The organization must have the discipline to follow each of these rules

The Support Center helps nonprofit organization in a turnaround situations.

>>> Turnaround Services