No Time to be Timid

Published on Monday, December 01, 2008
ARTICLES

A financial crisis alone is bad enough, but this one is coupled with public denunciation of policies and politicians associated with free-market ideas (however unfairly). So this is no time to be timid. Rather, now is the time for aggressive measures that generate income, conserve cash and sustain your impact. Strategic action can even propel you to new heights.

Below are some rapid-fire suggestions for managers and other team members. There are ideas for institutes of all sizes. Some of them will especially help smaller institutes strengthen themselves for the long term.

Managers

Don't be silent about the financial crisis. Give your team the straight scoop and enlist their help. You've built a culture of trust and collegiality for such a time as this. How are income projections? Cash reserves? What are donors telling you and the staff? What is your board saying? Your colleagues take their cue from your optimism and confidence.

If you've built an emergency reserve fund, this is the moment that rewards your wisdom and discipline. Establish clear guidelines on how to spend it. Is it business-as-usual until the fund is depleted? A certain percentage or amount per month? Reach cost-cutting goals before drawing against the fund?

Leave no penny-pinching stone unturned. If you haven't scrutinized your insurance, phone plans, service contracts, printing, subscriptions, travel and vendor relationships in two or three years, significant money can probably be saved. Assign the most detail-oriented person on your team to find those dollars.

Don't assume you can just "save" your way out of a financial pinch. Re-task employees to fundraising projects. Ratchet up performance standards with specific new goals related to weathering the storm.

Favor projects and programs that produce measurable impact. Delay, cancel or scale back others.

Align incentives clearly. Change the mix of merit-pay increases vs. performance bonuses linked directly to goals.

No money for raises? Some people might rather have more vacation.

Be especially wary of borrowing money to make payroll. It's one of the last things bankrupt enterprises do just before they go bankrupt!

If you've been putting off a difficult personnel decision, now is the time to act for the good of everyone. Hard times demand strong performance.

Finally, don't ask good performers to sacrifice until you sacrifice. This is when you will prove if you believe "the troops eat first."

Staff

This is an outstanding time to show the boss, and your colleagues, how much you care. Volunteer for the dirty job. Show how to cut costs in your area. Embrace higher standards. Loyalty and hard work during a crisis is seldom forgotten.

If you've mastered your current duties, you have a base from which to "stretch." Ask for additional duties, more responsibility. Such things lead to promotions.

Has it been a long time since you've asked a friend, neighbor, or acquaintance to support your institute? Has it been a while since you sent a personal note to a donor?

Lastly, managers and staff must look for - and act upon - opportunities. Some of your state's biggest political donors are now wondering how much bang they got for all the bucks they gave to parties and office-seekers. They may be newly receptive to your appeal to invest in ideas, not just politicians.

Joseph G. Lehman is president of the Michigan-based Mackinac Center for Public Policy. Write him at lehman@mackinac.org.