Episode 44 | 5 Steps for Managing Messy Situations

Leadership comes with challenges, and crisis moments test our resilience and decision-making. Nonprofit leaders work within a tough business model—providing critical services with limited funding and an often underpaid staff. Yet, this work is essential for our communities.

In Episode 44 of Life & Leadership with Kim Williams, I share 5 Steps for Managing Messy Situations based on my experiences and lessons learned.

Why This Topic?

Recently, I’ve worked with several nonprofit leaders facing sudden funding losses due to expired grants and contracts. Many expanded their organizations with an influx of funds, only to struggle once the funding dried up. I’ve been there—taking over as CEO of Interfaith Family Services and discovering a $500,000 deficit just two weeks in. But because of past experiences, I was prepared. I learned hard lessons early in my career and turned setbacks into strategies that led to long-term success.

Because of those lessons, I led Interfaith through financial crisis into strategic reinvention, significantly increasing our reserves and impact. How? By following these five crisis management rules.

The Five Rules for Crisis Management

1. Face It, Don’t Fight It

When crisis hits, some leaders ignore the signs, hoping for a miracle. But blind optimism only delays the inevitable. Instead of depleting your reserves trying to maintain the status quo, accept reality early and make proactive adjustments. The sooner you acknowledge the issue, the more control you have over the outcome.

2. Investigate Before You Communicate

Leaders often feel pressured to provide immediate answers when a crisis arises. But reacting too quickly can lead to miscommunication and misguided decisions. Instead:

• Gather all the facts before making announcements.

• Avoid making promises on the fly.

• Acknowledge the issue without committing to solutions prematurely.

• Set a timeline for when you’ll present a clear plan.

For example, if a major funder pulls out, instead of scrambling for answers, tell your team: “We’re facing a funding gap. Over the next two weeks, I’ll review our finances, explore solutions, and update you on the path forward.”

3. Evaluate All Activities and Explore All Options

Every crisis presents an opportunity to reassess priorities. Start by conducting a return-on-investment (ROI) analysis of all programs, services, and fundraising activities:

• How many people do we serve?

• What is the time and cost per service?

• What revenue does it generate?

• What are the risks and rewards?

This evaluation will help you identify inefficiencies and potential areas for restructuring. Simultaneously, explore all funding options, ranking them by probability (high, medium, low). Create different financial scenarios—best case, worst case, and a stabilizing plan—to prepare for all possibilities.

4. Present Options to Key Stakeholders and Develop a Unified Plan

Once you’ve analyzed the situation, bring your leadership team, board, and key investors into the conversation. Present your findings and recommendations, then collaboratively decide on a course of action. This creates alignment and ensures buy-in from critical stakeholders before rolling out the plan.

5. Share the Conservative Plan in Public, Work the Aggressive Plan in Private

Publicly, set realistic expectations. Internally, push for the most ambitious version of your recovery plan. For example:

• Base your budget on high-probability revenue sources.

• Continue pursuing medium- and low-probability opportunities behind the scenes.

• Under-promise and over-deliver to rebuild confidence among donors and staff.

Realism does not mean pessimism—it means being clear-eyed about the challenges while maintaining optimism about the solutions.

Final Thoughts: You Were Made for This

Crises are difficult, but they are also opportunities for transformation. If you’re facing a tough situation, know that you have the strength to navigate it. Your blessing is on the other side of this burden. If you pray, plan, prepare, and pursue solutions, you will come out stronger.

If you need support, I’m here for you. Follow me on Instagram or Facebook @ChangeWithKim for daily leadership inspiration. For crisis management or change consulting, visit kimwconsulting.com. And remember: Change is inevitable, but changing for the better isn’t. So please, change wisely.