Nonprofits and Change Management
Nonprofits are the most complex organizations to change, sometimes due to perpetual motion. With perpetual motion, a once successful nonprofit is running on autopilot because the leadership and the board became complacent and did not invest or understand that things in the future would be different. One case was Firestone Tires thinking that tire technology would never change and then having their market taken away by their competitors who invested more heavily in research and development. Nonprofits are the same.
If the board does not understand that the mission and vision change over time and if contributions are lower yearly, an organization could have cash flow issues. Management and the board will try to respond in ways they have in the past, not realizing that the times have changed and they need to expand the tent versus going back to the same donor base.
These entities need consultants like AJG to help with turnaround initiatives to improve cash flow, right-size the organization, and set it up for future success. Nonprofits help people, and, at AJG, we help nonprofits make better decisions and plan for the future to diminish perpetual motion.