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Mastering the Org Crisis

Mastering the Org Crisis

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Published by reneemcgivern
Provides guidance for nonprofit leaders about how to manage an internal crisis
Provides guidance for nonprofit leaders about how to manage an internal crisis

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Published by: reneemcgivern on Jun 12, 2008
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06/14/2009

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Mastering the Organizational Crisis

Heidi Neff Christianson, Moore, Costello & Hart, PLLP Renee McGivern, Spark Plug Consulting

Defining a crisis
• A time of intense difficulty, trouble or danger • Shakes people’s faith in the organization, others and/or themselves
2

What crises have you faced?

Describe • What happened • How it made you feel
3

Three elements of mastery
• Policies • Perspective • Transparency

4

Policies
The backbone that will prevent or see you through a crisis
1) Conflict of interest and annual disclosure process 2) Whistleblower 3) Expense Reimbursement 4) Blogging

5

Exercise
Accountant discovers and reports to Executive Director that CFO received checks for $15,000 during three months of the fiscal year, which were not substantiated.
6

Exercise
Key constituents contact Executive Director regarding the damage they believe is being done to the organization by the personal blog of an employee who criticizes the organization in the blog.
7

Perspective
• A particular attitude or way of regarding something, a point of view • True understanding of the relative importance of things; a sense of proportion • Remove the drama
8

Exercise
A temporary bookkeeper advises the Executive Director and Finance Committee that the organization has misused $600,000 in federal grant funds.

9

Exercise
A key children’s activity program director is arrested for his involvement in a child pornography website. The arrest is published in the local paper.
10

Transparency
• Providing information that
allows the public to make informed choices and government officials to root out problems* • Balancing confidentiality and transparency to protect the organization AND maintain the public’s trust
* From Strengthening Transparency Governance Accountability of
Charitable Organizations, a report of the Panel of the Nonprofit Sector, June 2005

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What communication exists?
• Newsletters, emails • Meetings and events • Online - web site, blogs, Guidestar • Mission statement, policies, Bylaws
12

Exercise
A whistleblower of a national membership organization reports to the Board Chair that a key program director has, for several years, used the corporate credit card of the organization to purchase $10,000s of items for personal use
13

Exercise
A multi-chapter organization decides to merge 6 chapters into one chapter. From the beginning of the merger, it is clear there will be layoffs of the leaders of each of the chapters.
14

Take Away
• Policies - Review them and determine what you can do to strengthen your ability to prevent and respond to a crisis • Advisors - Identify who can advise and coach your through the crisis; update address book • Transparency - Look at your current communication methods and ask if they are enough in a crisis
15

Thank you!
For a pdf of this Powerpoint presentation, go to www.mchlaw.com or www.sparkplugconsulting.blogspot .com

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