Weathering the Downturn and New Models of Organization

It seems to be a big topic of conversation these days!  I’ve been mulling what the downturn means for our sector, but haven’t figured it all out yet.  On Thursday, I had the pleasure of engaging in great conversation with an impressive group of nonprofit leaders at United Way of King County’s forum on Nonprofits and the Economic Downturn.  There was clearly a lot of fear and dread in the room, but also resolve and pockets of hope and faith, and a great sense of relief at finally feeling part of a community that is facing this issue rather than a lonely executive director pouring over budget scenarios in her office.

Funders offered remarks to open the session, and they were fairly grim in their outlook:  the downturn is likely to be long and impact grantmaking significantly.  They emphasized fiscal prudence, prioritization (discontinuing some activities that are not core to mission fulfillment), efficiency (outsourcing, sharing costs, consolidation), and transparency as keys to surviving in a more competitive funding environment.  There was also considerable talk about measurable impact.  They also gave a nod to creative, out-of-the-box thinking, and noted that this may be a time when people are more open to doing things differently.

Unfortunately, there was no clarion call to change and reinvention.  Despite the fact that business as usual is not going to cut it for most nonprofits over the next few years, a vision for a new social sector has not yet emerged.  But there are some promising, creative approaches bubbling up around the country.  While I can’t offer a clear vision myself, I intuit that the new path(s) will incorporate some or all of the following:

  • An inspirational call to service (a la Obama) that appeals to a new generation of activists
  • Flexible structure that welcomes and accommodates “individual contributors” (more like a movement, less like a hierarchical organization)
  • Ability to tap social networks and communicate effectively through Web 2.0 channels
  • Success for folks who have a large network of relevant relationships and a positive, trustworthy “personal brand”
  • Declining emphasis on expertise/holding proprietary knowledge and increasing recognition of the power of sharing information/”open sourcing” strategies, curriculum, etc.

What do you think?

2 Responses to Weathering the Downturn and New Models of Organization
  1. Jill Sheldon
    December 15, 2008 | 2:54 pm

    Hi Laura – I agree that inspiration is in short supply these days, and wasn’t at the forefront of the forum last week. I’m so glad you shared your sense of what may be “under the ground” for the social sector. (See my post about being in winter!) I agree with your intuition, and think it sounds a lot like what’s happening with our social networks and business in general – diversification, sharing and personalizing. Sounds like a much more healthy ecosystem to me, even if some old strategies and practices have to die first!

    Thanks Laura – our community is better for your leadership.

  2. [...] practicing these values Scope expands to include things such as the open web, hybrid social Weathering the Downturn – laurapierceconsulting.com 12/14/2008 It seems to be a big topic of conversation these days!? [...]

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