The M Word
So. It’s been about two months of lockdown (or various versions of it), and although many of our worlds are beginning to “open”, that doesn’t mean — as we know — that things are “back to normal”. The “new normal” seems to be the phrase of the day, except that nobody really knows what that ultimately means.
For nonprofit organizations, it’s just been tough. For some of you with missions related to disasters, crises, or even pandemics, you’re probably super busy — and this moment is what you live for. For most of you, your mission and work is severely derailed because of the pandemic, and the future isn’t so clear at all.
As the initial panic subsided, and the short-term measures became longer-term measures, it’s been time to figure out a plan. That plan may include cuts, layoffs, or even a pivot. Much of is planning for the worst, and hoping for the best.
But what if it all just seems uncertain? What if it feels impossible to move forward, because you just don’t know what’s next, and when?
I’ve been waiting for the right time to discuss this, and I think it’s here. The answer, for some of you is to Face the M Word. What’s the M word, you ask? The word is merger.
Say it out loud. It’s not the end of the world. A merger might be right for you, and it might not. The point is that you don’t know if it’s right or not if you haven’t at least thought about it.
I was heartened by a recent survey of 750 nonprofit professionals by La Piana Consulting, published just this past week. The survey is well done and offers a good summary of how nonprofits are doing right now. Sure, there are parts that are very frustrating and disheartening (the comment by a leader of a music education program, for example, trying to figure out how to teach students who play wind instruments when masks are required), but there are also signs of strength and resilience.
The part I found most interesting is that “nearly a quarter” of those who responded said that they were “considering partnerships, such as (a) merger with another nonprofit, as a strategy for responding to the pandemic”. Just the fact that a partnership or merger was being considered as a strategic move is great. Shouldn’t every organization explore partnerships, in good times and in not-so-good times? Although I was pleased to see the “nearly a quarter” part, I would have expected that number to be even higher. My guess is that the thought is crossing nearly everyone’s minds, but it’s too scary to talk about.
As a donor learning about a new organization that I might want to fund, I try to always ask my version of “How well do you play with others?” I’m surprised again and again when the answer to that is evasive or even dismissive. What’s wrong with playing with others? Many organizations, via a partnership or merger, can become stronger than the sum of their parts by working together. Whether that “working together” means a merger, a partnership or even something as basic as shared services, more often than not the result is that it makes organizations stronger.
Of course, the frightening part is the “what if I lose my job?” part as well as the “my board members love this place as it is and will never agree to a merger” part. Both are definitely valid points, but neither, as I’m sure you know, should stand in the way of creating a stronger, more stable and sustainable organization — whatever it takes.
Keep thinking of the mission, and what you can do as opposed to what you can’t. Take a good look at your organization, and if something close to the “M” word starts to make sense, look at it seriously. These are definitely challenging times, but those who come out the other end stronger and smarter — by thinking about and doing what needs to be done — are bound to succeed.
Stay safe out there!
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- Lisa