Hope Is Not a Strategy - Managing During Good and Bad Times
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Transcript of Hope Is Not a Strategy - Managing During Good and Bad Times
“Hope is Not a
Strategy…Managing During
Good Times and Bad”
11th Annual Connecting for Children’s Justice Conference
Nancy Chandler, ACSW
CEO
Georgia Center for Child Advocacy
Atlanta, GA
Georgia Center for Child Advocacy
Do you remember what caused the
recession?
Recession of 2009 - 2011
Began in December, 2007
The economic environment Housing bubble (low interest rates)
Regulatory failure (credit default swaps etc.)
Financial crisis
Failure of financial institutions
Credit crunch
Plunging home prices
Record foreclosures –first wave from loose
lending second from unemployment
Georgia Center for Child Advocacy
How did this effect non-profits?
Squeezed between rising demands and fewer resources
In 2009, 60% of surveyed human services organizations were cutting expenses, including cutting services and/or staff due to shortages.
The type of human service agency most likely to be under funded were those serving children and youth.
Foundations lost 40% of their investment portfolio.
Perception was (and still is) that there are too many non-profits.
Margins for success are razor-thin.
Georgia Center for Child Advocacy
Now that we have pulled out of the recession,
how should you be preparing for the future?
Managing – first of all, you must have your own stuff together. You must be a savvy non-profit leader.
Constantly scan the environment for trends Have any foundations that you work with changing
their focus?
Stay current on the economy – what’s happening in your local area.
Be open minded to change.
Lead and manage. Lead by example
Build transparency.
Anticipate events Know the guideposts (revenue or expenses) that will
help you know when you need to begin a change.
Diversity of Funding Streams
Source of Funding Percentage
State and Federal 45%
Foundations 30%
Special Events 13%
Local 5%
Individuals 3%
Corporations 2%
Organizations 2%
Georgia Center for Child Advocacy
Potential Legislative Advocacy
•Funding for
Forensic
Interviews
•PSSF
•VOCA
•State Funding
Georgia Center for Child Advocacy
Georgia Center for Child Advocacy
What are the keys to managing
through difficult times?
Managing Mission
Laser like focus
Who ever tells the best story “wins”.
In times of trouble many will suggest you cut back
on some area of operation
Key Performance Measures – Outcomes –
What % of change was there because of
something specific we did.
Results based strategic plan.
Georgia Center for Child Advocacy
What are some of the keys to
managing a great CAC?
People Management
Effective Communication – often, honest, real
This is where we are; We’re doing everything we
can, and these are the steps we are taking.
Model good coping skills
Allow employees opportunities to discuss
Effective Employee involvement
If you must cut back, think through all possible
strategies to determine best response.
Georgia Center for Child Advocacy
If you must cut back…
Hiring freezes
Wage freezes
Postponement of wage increases
Reducing fringe benefits
Work furloughs
Reducing work hours with proportional pay cuts
Five stages of grief
Denial, Anger, Bargaining, Depression, Acceptance
Georgia Center for Child Advocacy
Engage your Board of Directors
You have to be in control of the process…or
Board will do it for you.
Frequent meetings with Finance Committee,
Executive Committee
Scenario planning for them
Figure out each of your possible options and
think through the effect of each on the
organization before you go into the meeting.
Georgia Center for Child Advocacy
Money, money, money!
Managing Money
First of all, know your budget inside and out.
You should know every item on your accounts payable
sheet. What is it, what is it for, is it recurring, etc. Make
sure you ok every expense.
You should be aware of every dollar coming into the
agency. What is it for, is it restricted?
Georgia Center for Child Advocacy
Managing Money
Make sure that you are
getting correct numbers
from your
accountant/accounting staff.
Look at each expense
item…nice to have or
imperative.
Be ready to challenge staff.
It may be in the budget, but
that doesn’t mean there is
money to pay for it.
Create a cash flow
projection…get help if you
need it. Cash is King.
Georgia Center for Child Advocacy
What are the other keys to managing?
Managing Performance
Measure results, evaluate program success,
and create clear expectations for performance.
High performance starts and ends with
Mission.
Georgia Center for Child Advocacy
What do you do next?
Think about the future and what the
organization might look like. How it might
need to look/or how it should look.
Expect surprises.
Challenge assumptions.
How to deal with uncertainty…
Venture forth, step by step, updating
information, planning for contingencies