Category: Organization Development

The Nonprofit Finance Fund has released their 2013 State of the Nonprofit Sector report. This is the fifth year for this large and comprehensive study. Almost 6000 organizations responded to the survey. The report includes an online analyzer which enables you to analyze data by state, sector, size, and low income communities. Be sure to check out this aspect of the report.

I strongly recommend that you review the whole report and use the analyzer to assess how your organization stacks up against others in your state and in your sector. I tried the analyzer to review the data for New Jersey – my home state – and found it to be easy to use and have some important data suitable for advocacy. Be sure to check out this aspect of the report. This study was funded Bank of America Charitable Foundation.

Click here to see the report.

I am writing two companion blog articles on the report. My blog article at marionconway.com has highlights mainly about government funding , foundation support, low income communities and comparison of my home state – New Jersey – results versus the total US results. This article features issues related to mission and Board. As always, this article features the study results mixed in with my commentary.

The overall most telling data point for me is that five years ago 44% of nonprofits answered no when asked if they were able to meet demand for services and this year the number is 54%. It is a startling increase in inability to meet demand for services. It is caused by decreased funding from government and foundations, increased demand and increased costs. This combination has become the perfect storm.

So how are nonprofits approaching this dilemma? There are some surprises in the data.

Action taken in 2012

49% Added or expanded services

17% Reduced/eliminated services and programs

39% Collaborated with another organization to grow/add services

30% Upgraded technology to improve/grow services

There is really good news in these survey results. Instead of folding, nonprofits are using the ingenuity that is in their DNA to do more even as the financial picture is challenging. I was so happy to see strong responses to collaboration and technology because I believe that both are essential keys for adapting tp the new financial normal. More good news nonprofits report big expected increased in these areas for 2013. If you’re not on board yet…..jump on! To be sure nonprofits are being cautious and seeking “balanced growth” and just as for profit corporations have become less giddy and more thoughtful about growth so have nonprofits. Many have learned the hard way that government contracts don’t pay for everything and are subject to change and new rules, etc. It a great source of funding but has to be looked at realistically. In 2012 over 40% of nonprofits hired new staff, 36% engaged more closely with Board and 31% relied more on volunteers. For 2013, nonprofits project less hiring and more reliance on Board and volunteers. If you are a Board member or volunteer get ready to roll up your sleeves even more this year.

It needs to be as much about looking at long term sustainability as it does short term survival. I see that many small nonprofits that I work with are finally coming to grips with this.

The survey results suggest that Nonprofit Boards are engaged at an acceptable, if not a perfect level of participation. Here are some of the results:

When signs of impending crisis appear, it’s no time for patchwork fixes

Often, long before a major crisis strikes, there is some sort of indication that trouble’s brewing. In the case of the Texas fertilizer facility that exploded this week, a report from USAToday’s Chuck Raasch and Sharon Jayson indicates that the company may have been lax regarding safety and maintenance procedures as far back as 2006. Here’s a quote:

The fertilizer plant that exploded in West, Texas, killing more than 30 people and causing widespread damage was cited and fined in 2006 for federal environmental violations, the Environmental Protection Agency said Thursday.

West Chemical and Fertilizer was fined $2,300 in March 2006 for failing to update a risk management plan and for having poor employee-training records and no formal written maintenance program, according to the EPA. The company later certified it had corrected the deficiencies, the EPA said.

Thing is, sometimes, even when you’re making your best effort to do the right thing, smoldering crises can go unnoticed until events send a little red flag up. Whatever your business, it’s critical to keep an eye out for indicators, whether in the form of regulatory violations, stakeholder unrest, negative media coverage or internal reports that show something just isn’t quite as it should be.

Once you’ve had a mounting issue pointed out, Crisis Management 101 dictates that you should not only patch it to the satisfaction of regulators (the public, employees, media, whoever), but actually dig to the root of the issue and fix it there.

Will it take some extra effort? Yes. Will it save your organization’s reputation, and, depending on the crisis, huge sums of money, or even human lives? Absolutely.

Put that way, do you have any good excuse not to make that effort?

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Editor’s note: We don’t usually cross-post between our two blogs, but given recent events we feel it’s important for the following to reach as many eyes as possible.

I know something about terrorists.

From 1972-74 I was part of a US Army counterintelligence operation that successfully infiltrated a front group for what became known as the “Red Army Faction,” a terrorist organization in Europe that killed dozens.

From 1975-77 I worked out of the US Army Intelligence Command’s Ft. Meade HQ, where I read daily classified “Terrorism Reports” from around the globe, activity that seldom made the news back here in the good ol’ “safe” USA.

The names have changed, the nature of the beast has not. We Americans aren’t only at risk abroad, but in our own cities, at our own major events, and at virtually any other public location.

So if you’ve been playing ostrich, get your head out of that hole, because the only way to protect yourself is awareness. The best form of crisis management has and will always be crisis prevention.

Every citizen of Israel knows the warning signs because suicide bombers and other terrorist attackers have been unfortunately commonplace over the years. Russians are more aware than ever because of attacks by the same group, radical Chechens, that are allegedly responsible for the Boston bombing. In the UK, until peace was finally made with the Irish Republican Army, every Brit was hyper-aware of the risk factors every time they went out in public.

Now it’s our turn, and here’s where to start – The FBI’s “Preventing Terrorist Attacks” page. If you want more info, follow any of the many links provided at that page. And share the info with your loved ones. If we all do this, more terrorists will be detected before they can strike, others will have their plans at least somewhat thwarted. Can we prevent them all? Of course not. But the experience of other countries is that we can do a lot more than we’re doing now, as individual citizens.

There is no way law enforcement agencies can do the job themselves, we have to take individual responsibility as well.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training.]

From dozens of suggestions in the npEnterprise Forum, our social enterprise social media site, here is our:

TOP 10 SOCIAL ENTERPRISE SOUND BITES

Social enterprises are businesses that:

1. Use the marketplace to solve pressing social problems.
2. Have a primary purpose to do social good.
3. Serve the common good, making money while solving social problems.
4. Are values-led and committed to the triple bottom line of people, planet and profit.
5. Use the power of business for positive social change.
6. Believe the bottom line and social change can be hardwired together.
7. Develop and sell products or services that address social or environmental issues.
8. Are values-centered, transparent, and in business for the benefit of all stakeholders.
9. Are dedicated to making a sustained, positive impact on social and environmental change.
10. Believe what is good for the world is good for business.

Hope this is helpful in your work.

Good luck!

• Copyright © 2013 Rolfe Larson Associates
• Social Impact App, find social enterprises nearby and online
• Venture Forth! endorsed by Paul Newman of Newman’s Own
• Speaker, Social Enterprise Summit, Minneapolis, May 19-22, 2013

When it rains, it pours. Just ask Carnival’s crisis management team.

In yet another blow to a Carnival Cruise Line’s barely-standing reputation, a CDC report detailing the failure of the ship “Fascination” to meet cleanliness and food service standards is making the media rounds.

Here’s a sample of what’s being said, from an ABC News article by Genevieve Shaw Brown:

A recent report from the Centers for Disease Control and Prevention gave an “unsatisfactory” rating to the Carnival Fascination, essentially a failing grade on a health inspection. A satisfactory rating from the CDC is a score of 85 or higher. The Fascination scored an 84.

The report outlines violations ranging from not enough chlorine in the pool to flies and a “roach nymph” found at a juice dispenser. In one case, there was no “sneeze guard” over some items on the food line.

Would we be calling this revelation, from a report written February 21, mere days after the Triumph finally made port, a crisis if Carnival hadn’t been in the middle of a string of disasters? Honestly, probably not. Just missing a passing score on inspections really isn’t all that unusual for the food service industry, especially for buffet-style eating where food is served in such massive quantities, and typically the story wouldn’t even make the news.

The fact that Carnival’s reputation has already been put in question is the one reason why this story, and any single negative incident that occurs surrounding the company for at least the next couple of months, is going to be headline news.

Thing is, that’s the problem with allowing your reputation to slip. You have no cushion of goodwill to fall back on, no brand ambassadors to leap to your defense, and reporters know that any story where a tarnished brand is being heaped with more mud is an easy sell to both editors and readers.

Carnival is going to have to be, literally, flawless in its operations, as well as much more proactive in terms of its crisis management and reputation repair efforts, if it wants to swing the court of public opinion back its way. Unfortunately, right now the company is up a creek, and, from the looks of it, nobody’s paddling.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Claiming ignorance is not good crisis management

As a consumer, how much confidence would you lose in a company if they couldn’t tell you where they picked up 50,000 tons of meat? The Dutch suppliers being questioned in the latest horsemeat development may as well be saying, “hey, we’re either lying to you or horribly incompetent, your call!”

In following quote, from a NY Times article, Stephen Castle details the return of a situation that the European meat industry surely wishes would go away for good:

After disappearing briefly from public view, the scandal over horse meat sold as beef re-emerged on Wednesday with an alert over 50,000 tons of meat sold across Europe and an earlier recall of a product in Britain containing a veterinary drug banned from the human food chain.

The Dutch food safety authority said it was trying to trace meat sold to 130 companies in the Netherlands and 370 in 15 other countries, including France, Germany and Spain. The Dutch suppliers of the meat were unable to say where the 50,000 tons in question originated, said Tjitte Mastenbroek, spokesman for the Netherlands Food and Consumer Product Safety Authority.

While there was much talk of simplifying the supply chain and keeping better track of exactly where shipments of meat come from, and go to, the wheels of big business move slowly, and there has been little done in that regard as a result of either apathy, or, for some, perhaps the thought that the more complicated things are, the harder it is for anyone to take the blame.

The reality is that when the industry has to do major public crisis management for meat mix-ups over, and over, and over again, the reputation of every organization involved is at risk. The way to ensure that your reputation stays strong is to embrace Crisis Management 101, increasing transparency in operations and reaching out to consumers to share as much information as possible. Of course, you can always try the old ostrich approach, but while your head’s buried in the sand, remember what’s sticking straight up in the air.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

View things through your audience’s eyes and gain valuable crisis communications insights

It’s become fairly accepted that, when found to be in the wrong, organizations should explain what happened, how they plan to set things right, and how they plan to prevent the same issue from occurring again.

One critical factor that’s often missing, however, is described below in a quote from Cheryl Smithem’s Charleston PR blog:

If your firm finds itself involved in a scandalous situation, always put yourself in the emotional place of an outside onlooker. Feel their intense emotions – then respond to those emotions with sincere statements of sympathy for the victims. While you must also address the details of the incident and how it will be prevented in the future, any missteps in addressing the intense emotions of onlookers who put themselves in the place of the victim will leave your firm damaged, no matter how well you mitigate physical or financial damage.

While Cheryl’s post addressed the handling of the sexual abuse case at South Carolina military college, The Citadel, the same rules apply to just about any crisis.

If you want stakeholders to be receptive to your crisis management messaging, you first have to convince them that you care about them, and understand the negative emotions they are feeling. We’ve all heard the term, “walk a mile in someone else’s shoes,” right? Well, before you even begin to craft your crisis messaging, take a mental walk in the shoes – and hearts – of the affected parties, and do your very best to understand what they are thinking, and feeling, at that very moment.

A hallmark of a great crisis manager is the ability to empathize. Get in tune with your stakeholders, say the words that are needed to unlock their ears, and your messaging can do its work.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

The notion of “scale” gets a great deal of attention in the social enterprise world. It seems to suggest fast growth from taking a successful model to expanded size, locations and social impact, all at warp speed. Social capital, business competitions, even funders often talk about scale as if it were the ultimate goal for every social enterprise, and those that aren’t ready “to go to scale” need to find a way to get there. Continue reading “Scale Isn’t Everything…”

Nearly 11 million pounds of frozen foods pulled from shelves

According to USA Today, Rich Products has called for the recall of nearly 11 million pounds of frozen mini cheeseburgers, sandwiches, quesadillas, pizzas and other snacks sold under the Farm Rich, Market Day and Schwan’s brands because of potential E. coli contamination.

So often when we write about recalls, it’s tough to even find mention of the issue on the company page, and we were disappointed to find that was the case on the main Rich Products page as well. To be fair, there are two separate press releases regarding the recall linked in the site’s news center, but it’s a world of difference compared that to the highly transparent way the situation is being handled on the front pages of the websites belonging to both Rich Products-owned Farm Rich, which features a full-page spread on the recall, and independent reseller Market Day, which has installed a large banner at the top of its home screen:

Schwan’s silence

Schwan’s, another independent reseller, neglected to post anything at all on its site regarding the recall, not even in the news section. Instead, it’s pulled all products named in the recall from its virtual shelves without explanation, certainly not the response that Crisis Management 101 would dictate.

Responsible recall

Overall, Rich Products is handling the recall responsibly, voluntarily expanding the number of products included in order to better protect its customers and sharing information with the public. The Farm Rich foods site is where its crisis management really shines, though. Not only does it allow visitors to spot recall information right away, but, as you can see in the image, there is also a link to a full FAQ regarding the FDA and USDA news releases on the topic. When we visited the page, the visibility and amount of information instantly available gave the clear impression that Farm Rich being transparent in its recall process, and that the company cares about the safety and well-being of its customers.

Good work Rich Products, and especially to the Farm Rich web team, you’ve got your priorities straight.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]

Shocking footage shows coach shoving, throwing balls at player’s heads

Rutgers University is facing a major crisis after video showing men’s basketball coach Mike Rice hurling basketballs at player’s heads, shoving, yanking collars, and screaming homophopic slurs was broadcast on ESPN’s “Outside the Lines” this afternoon.

Video of Rutgers practices from the past two years was acquired by ESPN, which broadcast just seconds of what producers say is dozens of hours of damning footage:

https://www.youtube.com/watch?v=IVoOtpDuZwA

No surprise to Rutgers

The thing that’s really going to make crisis management an uphill climb is that this comes as no surprise to the college. A thirty minute video containing similar clips was shown to athletic department officials last year, but Rice recived a $50,000 fine and a three-game suspension, essentially a slap on the wrist when it comes to college sports.

Of course, the first reaction from athletic director Tim Pernetti was to dig himself a deeper hole, defending the lack of serious punishment, as well as insufficient disclosure, for, as he called it, the “first offense.”

Well, if the ESPN footage is any indication, his first, second, third and fourth chances have been used up as well. If any person walked up to another in the middle of the street and threw a basketball at their head, kicked them, or even grabbed them by their collar and pulled, they would be charged with assault. Why you would ever try to defend taking those same actions against young adults who are under your care is beyond us, and we’re sure the Rutgers PR department is sweating bullets right now.

Send in the cleanup crew

Already, media outlets across the country are calling for Rice to be fired, and a closer look to be taken at the entire Rutgers sports system. This isn’t going to blow over, the only way to put out the fire is for Rutgers to take action.

Our advice? Clean house. Fire Rice, and fire Tim Pernetti, the director who allowed this abuse to go virtually unpunished and still continues to attempt to minimize its significance. That’s not enough, though. Rutgers will have to re-train its entire athletic staff, and do so publicly enough to assure parents that this is indeed a safe place to send their children to school.

Don’t sweep it under the rug

College programs, just like any other organization, need to learn this lesson – you don’t sweep nasty business under the rug. No matter how well you think it’s buried, no matter how long in the past it may have been, it’s going to come out, and when it does you will look all the more guilty for having hidden things in the first place.

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For more resources, see the Free Management Library topic: Crisis Management
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[Jonathan Bernstein is president of Bernstein Crisis Management, Inc., an international crisis management consultancy, author of Manager’s Guide to Crisis Management and Keeping the Wolves at Bay – Media Training. Erik Bernstein is Social Media Manager for the firm, and also editor of its newsletter, Crisis Manager]