TSB 022: What to do when revenue is flat but expenses keep increasing
Mar 18, 2023![TSB 022: What to do when revenue is flat but expenses keep increasing](https://kajabi-storefronts-production.kajabi-cdn.com/kajabi-storefronts-production/file-uploads/blogs/2147666985/images/471207-4478-e11-bdf4-44e4e5b6114d_22.png)
Read Time: 2 minutes
This week's tip: Seven steps to secure your organization's future.
Are your revenues flat but your expenses are increasing?
You want to retain your best people, and give them a raise, but you don’t have the budget.
In the words of Winston Churchill, “Never let a good crisis go to waste.”
Take this as opportunity to reduce non-personnel expenses that won't limit your ability to serve your clients. If you've done that, and you are still coming up short, it's time to strategize on restructuring your nonprofit organization to ensure the right people are in the right roles, and are contributing to a positive work culture.
While the specific steps vary depending on your organizational goals and constraints, here is a roadmap:
Step 1: Find your model or prototype
Which organizations in your field or similar fields represent where you want to be in two, five, or ten years from now? Ask if they are willing to share their historical organizational charts, job descriptions, and compensation strategies or ask a consultant to gather the information.
Step 2: Identify the cans and cannots
Compare your approaches, constraints, and possibilities to theirs to determine what your organization can or cannot do to achieve a similar level of success.
Step 3: Define the vision
Clarify your goals and objectives for restructuring. What do you want to achieve through this process? Who do you want to include in the process? What are your priorities, and how will you measure success?
Step 4: Develop a restructuring plan
Using your goals and objectives as a guide, develop a comprehensive restructuring plan that outlines the steps you and your team will take to achieve your goals. This plan should include timelines, budgets, roles, and responsibilities. Role assignments should be based on the team member’s strengths.
Step 5: Communicate with stakeholders
Effective communication is critical to the success of any restructuring process. Communicate your plans and goals with your staff, board, donors, and other stakeholders. Listen to their feedback and concerns, and address them as appropriate.
Step 6: Implement the plan
Once you have developed your restructuring plan and communicated it to your stakeholders, it's time to implement it. This may involve making changes to your organizational structure, programs, funding, partnerships, or governance. Ensure that you have the resources and support you need to implement the plan effectively.
Step 7: Monitor and evaluate
After implementing your restructuring plan, it's important to monitor and evaluate its impact. Measure your progress against your goals and objectives, and make adjustments as needed. Celebrate your successes, and learn from your challenges.
See you next Saturday.
Whenever you're ready, there are three ways we can help you: