Chrysler Technical Center: Auburn Hills, MI

When it comes to resource management, strong nonprofits optimize everything.  I like to say that they learn how to spend every dollar twice.  Everything and everyone is multi-purpose.  Here’s a smart example: your marketing/PR department needs a new computer that has the technology to handle current graphics and media software.  You purchase the computer and design the hardware looking ahead and knowing that in 2-3 years, the computer will be transitioned to an administrative position that doesn’t require the computing power of the marketing position, but that will need an upgrade from what it has today.  At which point, the marketing department receives a new computer that can handle the even more bloated software code that has developed during that time.  What that means though, is that you can’t buy a computer with the oldest technology and you will probably pay a few hundred dollars more than what you had hoped.  However, if you are able to extend the useful life of that computer, the extra cost is saving you thousands down the road.

Contingency planning is critical for nonprofit organizations before embarking on a new program or project.  Generally speaking, there is a continuum of 5 different levels of success/failure for which you should have contingency plans:

Both extremes of the continuum could be deadly for a nonprofit organization.  If success causes the endeavor to grow beyond the resources to manage it, it could implode and take the entire organization with it.  So failure is not necessarily the worst outcome.

For each level of success/failure, you have to ask yourself what your organization would look like and address the following issues:

1. Staffing levels and needs
2. Facilities and resources
3. Funding
4. Effect on mission and other programs

In regards to the success end of the spectrum, is the performance sustainable and does it represent where you want your organization to be over the long term?  When evaluating failure, you must determine what would be left over and how could it be used in a positive manner.

Unfortunately for Chrysler, they didn’t take into consideration that the headquarters would be geographically located in an economically depressed area and the last thing that would be needed is another shopping mall – especially after all those people lose their jobs.

It is impossible to plan for every contingency, but with smart planning, you should be able to address the most likely outcomes to make sure your nonprofit organization is well positioned to make the most of good results and make the right decisions when faced with bad results.