Imagine the following scenarios:
- In a nonprofit board meeting full of smiling people everyone is congratulating the Executive Director on a job well done. She is at the front of the room, making jokes and seeming very happy. The following week, she resigns.
- As he compiles data for an annual report, a Program Manager realizes that the organization’s primary program had significantly worse outcomes than the year prior, despite increased staffing. He decides to keep the information to himself and highlight other data in the report.
- The Treasurer of an established nonprofit calculates that the organization’s last fundraising event missed its goal by thousands of dollars. Worried about the future of the organization, they decide not to contact a wealthy friend with their annual request for support.
In the nonprofit space, like all spaces, things go wrong. This can happen regardless of your level of preparation, financial capacity, and good intentions. Organizational leaders at the board and staff level need to know what has gone wrong and why so that they can make informed course corrections. Usually, the sooner they know, the better. But often, bad news doesn’t reach key decision makers in a timely way and sometimes it doesn’t reach them at all!
The pull to keep things positive is strong, especially in the nonprofit space where hope is a dominant force. Passion for the mission is what draws most people to the work, and staying optimistic is important for morale. But when leaders create an environment where everything needs to be positive and look good all the time, problems get hidden away where they fester and multiply.
When nonprofit leaders turn towards bad news, they receive more information, more quickly. This gives their organizations increased resilience and longevity.
How to Uncover Bad News Early
So how do we turn towards bad news instead of away from it? Answering the following questions will help you consider your access to bad news and chart your next steps:
1. How is the relationship between your board and staff? Is it smooth, rocky, or more like a ticking time bomb? Are there certain staff or board members that everyone worries about offending or impressing?
Action Item: At least once a year, hold an event with both groups present that builds familiarity and trust.
2. Is the board tuned in to how the Executive Director is doing?
Action Item: Have at least one board member build and maintain a close connection with the ED and make sure they receive a performance evaluation at least once a year.
3. Are your leaders prone to perpetuating an “optimism bubble” where they discount negative feedback from staff or data that doesn’t align with their assumptions?
Action Item: An anonymous survey could help bring this to light, along with new solutions.
4. Does everything feel urgent?
Action Item: Slowing down can create space for bad news to bubble up, which is a good thing! Figure out which deadlines are truly imminent and consider eliminating unnecessary urgency by phasing the work. Alternatively, experiment with doing fewer things.
5. Are board members well-informed and asking thoughtful and compassionate questions?
Action Item: Board Presidents (or Executive Committees) can help EDs prepare materials for board meetings and then set the expectation that board members read ahead of the meeting and come ready for an in-depth discussion. If this strategy is failing, try including reading time within the meeting agenda.
6. What happens when disagreements arise? Do people at all levels of the organization have opportunities to provide feedback and ideas? Is idea-sharing safe or are fault and blame thrown around?
Action Item: Real debate creates quality work and huge growth can come from tricky moments. Carve out space for working through disagreements and create a “parking lot” so that you can chip away at especially thorny ones over time.
7. Are you tracking mission delivery success in a consistent way that is transparent to all staff and board members? What do your leaders do when your measurable outcomes slump or backslide?
Action Item: Get aligned on a strategic plan that has a vision of the future that is as specific as possible. That vision should confirm your success metrics.
8. Are your books in order and are you following generally acceptable accounting practices (GAAPs)?
Action Item: Having an open and honest relationship with your bookkeeping and accounting staff can prevent lots of unfortunate surprises.
9. Is your leadership afraid to admit they don’t know everything?
Action Item: Practice vulnerable leadership. Go ahead and admit that you don’t have all the answers. Let staff share their experiences and give your ED the benefit of the doubt when you hear something negative.
If these suggestions feel out of reach, consider bringing in an external facilitator. As nonprofit consultants we bring objectivity and a deep skillset in asking hard questions and leading tricky conversations. We can help you think carefully about your organization’s purpose and path forward! Contact us to find out more today.
It’s not easy to create an environment where information, and even bad news, flows freely. Most of us want to increase celebration and gratitude and avoid conflict. But remember, building an organization that can weather ups and downs for the long haul is well worth it!
