Think Nothing Can Go Wrong? Think Again!
Strong Nonprofit Leadership Includes Crisis Management Planning
There are those who believe that it is bad luck to dwell on what might go wrong. They will tell you that thinking about misfortune will only serve to bring it to your front doorstep, the way a porch light attracts moths on summer evenings. Whether or not you give credence to the idea of self-fulfilling prophecies, I think we can all agree that a little preparation goes a long way in life – and in leading our nonprofit organizations.
Does my nonprofit need a crisis plan?
In a word: absolutely. I get that it can be a bit unnerving to think about all the things that can go wrong, especially for those who fear that doing so might only serve to invite trouble. I can also see how preparing for things that may never happen might seem like a waste of your team’s precious time and resources. Even so, there are two excellent reasons to invest in a crisis management plan. First, you could face a total catastrophe without a plan to lean on in times of crisis. Second – and hear me out on this – the very process of developing a crisis plan will likely unearth hidden areas of organizational vulnerability.
Even if you never need to put your crisis plan to the test, and I hope you never do, the process itself will give you an opportunity to make your organization stronger and better.
A reasonable and actionable crisis management plan offers benefits to even the smallest of organizations, including peace of mind should the unimaginable occur as well as a better chance for your organization’s strategic initiatives – and impact in the community – to thrive and grow. There is risk in not preparing for a crisis. On the other hand, the better prepared you are for an unexpected crisis, the more likely your organization will be to not only survive the problem, but to regain normalcy as quickly as possible with the least amount of disruption.
Barriers to crisis management planning
The all-too-human desire to avoid what we would prefer not to think about can easily lead to believing that bad things won’t happen – to us, anyway. The tendency is reinforced when things are going well, encouraging us to bury our heads in the sand even when omens are glimmering on the horizon. Avoidance is even more tempting when there are so many day-to-day priorities competing for our attention.
Crisis planning is a little like digging up the garden after a long winter. You know you don’t want to see what’s developed under there during the cold months, but you also know that the job has to be done if you want this year’s flowers to bloom.
Resources are a valid concern, but not an insurmountable one. Your organization might worry about using funds to hire a crisis management consultant but consider what you are putting at risk without a crisis plan in place. If funds are truly a barrier, organizations like the Nonprofit Risk Management Center and BoardEffect offer free and low-cost guides to help.
Whether facilitated by an expert or home-grown, the most effective plan will be one you’ve created and tested in advance of any dreaded and unexpected crisis.
Build the right crisis management team
Designating the group of individuals responsible for crisis management at your organization is the first step toward building an effective plan. That said, there is no one crisis team model that works for everyone. While it would be nice to have a formula to lean on, consider the benefits of being able to tailor your crisis team structure to your organization’s best advantage.
Crisis leadership might best lie with the leadership of the organization. On the other hand, it might be better to designate a standing committee that is responsible for risk management and policy development. No matter how you assemble the team, a diverse group of members bringing targeted expertise in areas such as legal, risk management, facilities, human resources, cyber security, finance, and general operations will be essential.
Once the team is in place, their first job will be to define what constitutes a crisis. Many organizations undergo a risk assessment exercise that can be very helpful in identifying where serious risk and vulnerability exists for the organization, and where a potential crisis could occur. Some groups qualify these situations on a scale of 1-3, depending upon the intensity and the overall impact of a situation on the nonprofit.
Evaluate your crisis readiness. When the shoe drops, would your organization have what it needs to fulfill its role in the community? That includes staffing, equipment, supplies, emergency facilities, and funds. What resources, such as vendors and contractors, could be called upon in an emergency?
Determine the decision-making sequence in a crisis and who will make critical decisions in what areas. A clear roadmap for decisions will expedite your organization’s response to a crisis.
Make sure crisis communications is part of your plan, and that everyone on the team and throughout the organization is aware of who will be the “official spokesperson” should a crisis occur. Have a “bench” of spokespeople prepared in case the designated communications leader is involved in the crisis or is otherwise unable to serve in this capacity.
Keep the planning process tight
Whether you have one team or have divided the responsibilities for crisis management among committees, make sure you are consistent in your approach to creating a plan and establish a timeline including meetings and benchmarks needed to reach a final version.
Educate the board and staff on the definition of crisis for your organization and make sure they are familiar with the crisis management plan. A crisis can happen at any level of the organization, so even volunteers may need to understand how to handle unforeseen and unexpected events that could turn into a larger issue.
Test your plan. There are exercises that boards and staff can do to simulate an actual crisis. This allows you to test the strength of your plan and identify where additional clarity or direction may be needed.
The benefits of planning ahead
If the pandemic taught us anything, it’s that our ability to predict the future is pretty limited. The Independent Sector’s 2023 white paper, “A Shock to the Status Quo: Characteristics of Nonprofits That Make Strategic Decisions During a Crisis,” found that:
“…the imperative of a crisis management plan emerges as the linchpin of preparedness. Such a plan serves as a compass that guides organizations through tumultuous waters, offering a systematic means to assess the environment and evaluate alternative courses of action. By embedding such a strategy, nonprofits not only mitigate risks, but also harness unforeseen circumstances as platforms for innovation.”
Think for a minute how important your nonprofit is to the people who rely on your programs and services. What would happen if your organization was suddenly unable to fulfill its mission? With a well-considered, and practiced, crisis response in place, you can ensure that your organization will continue serving your community, whatever may come.
Let our fractional staffing or NPVA services support your nonprofits needs as you prepare for the future.
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