“It’s only a money problem.” With those words, Jennifer Barraclough, Director of Woodbrooke Quaker Study Centre in Birmingham, England, addressed the fears of Woodbrooke’s staff and board when the cash reserves dropped off precipitously after the financial crisis of late 2008 and Woodbrooke, like many non-profits, faced its worst deficit ever.
“It’s only a money problem. It’s not a problem of our strategy. It’s not a problem of our policies. It’s not a problem of our practices. It’s not a problem of our people. It’s only a money problem.” As Jennifer reassured Woodbrooke’s constituents, she reminded them that Woodbrooke had entered the financial crisis in the strongest position it had ever attained, and that its people, policies, and practices formed a solid foundation to face the coming storm.
Jennifer herself had her own fears, along with everyone else, as she faced the coming year. At the same time, she knew that she needed to “hold her nerve” as she held the organization. While no one knew what would happen next, she knew that she and her leadership team needed to make decisions based on both good business sense and sound Quaker values.
The leadership team agreed on basic principles as they faced difficult decisions:
-Avoid layoffs
-Freeze pay
-Reduce benefits
As they wrestled with the challenges they faced, the leadership team worked together with their staffs to find imaginative ways to cut expenses that would leave staff positions intact. For example, when it became clear that Woodbrooke could no longer afford to provide the benefit of free staff meals in the way that it had been, the chef worked creatively to devise a plan which would reduce waste and offer staff a scaled-back version of free meals.
Morale remained high despite the cutbacks, as ideas were contributed from many quarters and layoffs avoided. Teams grew stronger as they worked together to face challenges.
Today, after a year and half, Woodbrooke finds itself growing financially stronger again. 2009 showed financial results much better than expected and the first half of 2010 started better than any year yet. No staff members have been laid off, and it may be possible to consider lifting the pay freeze.
“It’s only a money problem.” When leaders can “hold their nerve” and hold their organizations, keeping financial challenges in perspective, anything is possible.
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Strengthening your organization in tough economic times
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For more info: Margaret Benefiel, Ph.D., author of Soul at Work and The Soul of a Leader works with leaders in healthcare, business, churches, government and non-profits to help them stay true to their souls. Visit her website.
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