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How Crisis Can Compel Change
Transformative change is often precipitated by an internal or external crisis, says Julia Classen, a consultant who works with nonprofit boards. In this way, crises are fundamental to an organization. They can jar an organization in surprisingly healthy ways and compel their boards to act differently, the author explains.

As an example, Classen cited an association that had experienced a financial crisis. The organization had come to rely heavily on a single stream of income for more than half of its budget, but that income stream declined by 75 percent within three years. In response to this crisis, the board, working with staff, made several important changes. When seats on the board opened, it recruited members with the specific professional expertise it needed, like financial skills. It also made a series of tough decisions that stabilized the organization, initiated a strategic planning process, and created systems of oversight to ensure the budgetary crisis would not be repeated.

Crises can help boards make bigger shifts that are often necessary to secure their continued relevance to the organization, Classen writes. She notes that as associations continue to change, evolve and grow, their boards must do the same.
Nonprofit Quarterly (06/14/17) Classen, Julia
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SEPTEMBER 2017 EDITION
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