If Wall Street Got Drunk…

Then someone should tell Bush that our sector is suffering from a potentially fatal hangover. Much worse than a mere headache, startups, especially non-profit ones, are being hit by a maelstrom of factors that may have terminal consequences for many organizations that don’t have the capacity to weather the storm. Though bailouts galore will not anchor the financial markets enough to reduce the impact of this tempest to zero, they at least provide some sails for the heaviest players in the game to stay afloat.

Meanwhile, nonprofits the size of FORGE have absolutely no protection against macroeconomic fluctuations that affect the pool of disposable income available to us from individual private donors, our primary source of funds. This fact, combined with the bad luck of being rejected in the final rounds of two large and prestigious grants, and not making as much money as we had hoped from a traditional fundraiser (fancy expensive dinner featuring Tom Brady, Giselle, etc.), have lead to dire straits for budgets in the field.

Last week our Programming Director informed us that Meheba had to make around 24,000,000 kwacha worth of budget cuts to remain operational through March1st. In perspective: over HALF of our budget needed to be slashed. The PMs hashed out some drastic changes, entire programs were cut, and 10 staff members (almost a quarter of our workforce) were laid off in total. The PMs took a pay cut in solidarity and decided to use the money toward creating a small severance package; but the timing of the announcement was brutal, only four days before pay day, leaving no time for employees to budget their money. However demoralizing the facts of the financial situation are, the suddenness of the situation was by far the worst part of the announcement, and it severely limited our ability to damage control.

In Meheba, there is no free market economy. There are NO other employers in the camp. Wages are standardized to already pittance levels and the World Food Programme is no longer providing food rations to anyone in the camp (including the elderly, disabled, orphans, and other vulnerable people) beginning January 1st. Unlike other camps where salaries are incentives for people to work, to lose your job in Meheba is to lose any possibility of having some livelihood. The only other option is to become a farmer, but cultivation has already begun, if you haven’t prepared your field already, it’s too late to start for this year’s harvest. Some of those let go include FORGE’s first employee ever, and all of the staff from FORGE’s first project.

Beyond our staff, the community is equally affected by the abruptness of our scale back. Vulnerable (mentally and physically disabled or orphaned) preschoolers who are already psychologically unstable now must completely change their schedule midterm and adjust to new teachers with no training overlap, who are unfamiliar with the new students (personally, linguistically, and culturally) and are taking on twice their previous workload. The example is one of many.

I made it through the emergency staff meeting that we held to announce the changes. I made it through nine of the lay offs, where the PMs stoically and calmly took turns repeating the same words over and over: “unfortunately,” “the reality of the situation,” “I am so sorry,” “absolutely nothing to do with your performance,” etc. Finally we reached the last one, an outreach worker named Given, who I personally manage for the health services project. Given’s coworker is his good friend (and mine) and holds the exact same position and was not being let go because of her certification has a psycho-social counselor. She was the first to cry all day. And then quietly, the tears just started flowing, leaving cool trails on my cheeks, evaporating quickly into the African heat.

Being a young manager, for all the advantages it holds in energy, innovation, optimism, dedication, freshness, and drive; my youth in this case did nothing but long for advice. I missed my dad, a seasoned manager who has supervised hundreds (maybe thousands?) of people and let go of a few in his time; someone who has navigated through organizational and financial turbulence with deliberate finesse and forward thinking. I have no tools to deal with this from a managerial stand point, nor from an emotional and psychological one. And none were given to me by the executive team that is equally as wet behind the ears as I am, and whose responsibilities, as is the case in any startup, are already spread paper thin.

Having grown up in the entrepreneurial culture of the bay area and then having worked for one of the largest bureaucracies in the world (the U.S. government), I had once concluded unequivocally that the latitude of having a youthful, flexible, approachable group of supervisors and employees would be the strongest advantage FORGE has to “Go get ‘em.” And that fact remains. But in this situation I see more clearly than ever the benefits traditional, conservative, and most importantly experienced, leadership can have in tempering instability.

Ironically, this whole experience may be exactly what develops all of us into more mature managers, ready to take on bad news and expertly handle it whenever it’s thrown our way. Unequivocally I look at this as an experience I look at as an opportunity to grow. Here’s hoping!