The Upsides Of Economic Downturns

by Yonatan Gordis
Special To The Jewish Week

The nervousness about the downward turn in the global economy pervades almost every conversation in the nonprofit world these days. In Israel, the weakened U.S. dollar has struck many organizations deep in their bellies as the funds they raise abroad are now worth 30 percent less than four months ago. In the U.S., the credit crisis spurred by problems in the sub-prime market has caused many American donors to reduce their local giving. Organizational stakeholders are scrambling in a newly unpredictable world.

For the growing field of change management, this economic environment is teaching fascinating lessons — albeit painful ones — about possible responses to the economic crisis on the individual, organizational and communal levels. With centuries of experience at “turning lemons into

lemonade,” the global Jewish community is demonstrating resilience and ingenuity, despite the daily hardships the situation is invoking. It’s worth looking at some positive developments:

1. Windows (of Opportunity) Where There Were None Before.
Often, the (professional or volunteer) leaders of an organization see that major change — such as serious downsizing — needs to happen. However, in many cases, it is impossible to make needed adjustments because of politics, organizational culture and the magnitude of the tectonic shift. Many of the important and healthy changes taking place in major Jewish organizations may have once been impossible in a “healthier” economic environment. When botanists discovered decades ago that stopping forest fires also stopped Sequoia seedpods from opening, they changed their fire policies and allowed some to burn wildly so that the high temperatures could guarantee new seedlings in the California forests. Certain crises do lead to opportunity.

2. Shared Crisis Makes For Real (Organizational) Conversation.
In the past months, conversations within organizations regarding strategies and tactics for contending with reduced resources have increased significantly. Smart organizations are realizing that economic perspectives regarding organizational sustainability can be the purview of all stakeholders in the organization. Conversations about organizational priorities themselves serve not only to refine clarity of mission, but they also build staff loyalty and identification with the organization’s overall mission.

3. Shared Crisis Makes For Real (Communal) Conversation.
Inter-organizational dialogue and collaboration should happen in every environment. But against a background of bad communal habits, little dialogue, and a foreboding economic environment, it is only now that many organizations are beginning to look to peers for learning and support in contending with their own survival in the community. Initiating, supporting and expanding the conversations that have begun in the community regarding organizational economics should be a priority for everyone.

4. Philanthropists Can Be Reflective And Active.
Most funders support organizations or projects to help them thrive and achieve a mission. The current economic situation is causing funders to ask: “Who should (and can) compensate for the losses?” And of course, the follow-up question that many concerned philanthropists are asking is: “What can and should we, as philanthropists, do?” Answers and approaches abound — some short term and unsustainable and some more strategic. Most importantly however is that many philanthropists and foundations are examining their values and priorities and are making real and immediate decisions regarding the best way to manifest them. This is good for everyone. It allows philanthropists to demonstrate leadership in a way that only they can, and ultimately it strengthens the community as a whole.

5. A Time for Entrepreneurship and the Grassroots?
The return on investment (ROI) for philanthropic foundations like ours is measured by the impact investment makes on a community. This time of uncertainty is causing some funders to more seriously consider making small grants to entrepreneurs where previously they may have relied on larger grants to more established entities. For most, this does not mean less philanthropic investment overall but rather a strategic shift and a diversified portfolio.
The pain of job loss and elimination of valuable programs cannot be taken lightly, and as the community can only exist through the well being of its members, everything must be done to protect individual lives, jobs, families and communities in this time of crisis. Leaders find themselves balancing the delicate mix of immediate community concerns along with the responsibility to build a sound organization for future generations.

In Pirkei Avot, a 2,000-year-old text that explores the dynamics and ethics of being human, we are offered one of many perspectives on Jewish life which tells us that the wise person is one who “sees what is coming into existence” (ha’roeh et ha’nolad). Great and important things are happening within these difficult and unpredictable times. They are worth noting and, at times, replicating. n

Yonatan Gordis is the executive director of the Center for Leadership Initiatives, an operating foundation supporting current and emerging leaders in the global Jewish community. Its Web site is www.leadingup.org.