“Change is inevitable in life. You can either resist it and potentially get run over by it, or you can choose to cooperate with it, adapt to it, and learn how to benefit from it. When you embrace change, you will begin to see it as an opportunity for growth.” – Jack Canfield
Organizations in all sectors are experiencing unprecedented levels of change, including public health, economic, and environmental disruptions. According to research by Deloitte, since the year 2000, 52% of companies in the Fortune 500 have gone bankrupt, been acquired, or ceased to exist as a result of digital disruption. This disruption is a clear indication that all organizations must learn how to systematically and effectively manage change. The role of the Board of Directors is especially important in this process, and nonprofit organizations are particularly at risk. Over half of all chartered nonprofits are designed to fail or stall within a few years of inception due to leadership issues and the lack of a strategic plan.
To adapt to rapid change, organizations must have steadfast leadership. Innosight reports that 58% of executives who have launched transformative change and innovation in their companies cite committed leadership as the single biggest factor determining success in the marketplace. To achieve this, CEOs, board chairs, and executive teams must work together to ensure a clear vision and buy-in from the top down.
Managing change for a long period can be exhausting. Organizations should consider benchmarking progress and celebrating forward movement with their teams to mitigate the risk of lost momentum. Regular check-ins, feedback, creating support networks, and modeling self-care will positively impact the transition.
Supporting change through diversity is crucial for surviving and thriving in a rapidly changing environment. Diverse life experiences and viewpoints among board members positively impact organizational performance and the ability to adapt, with problem-solving, innovation, creativity, recruitment potential, and financial strength all elevating as a result. According to McKinsey & Company, organizations that rank at the top for ethnic diversity in board composition and management are 35% more likely to outperform companies that do not.
To secure resilience and adaptability, boards of directors need to evaluate the shifting ground beneath their organization and develop new, long-term solutions. Leaders can allocate resources more effectively and efficiently by thinking of themselves as a sector rather than focusing on individual organizations. Collaborations, alliances, and partnerships can be developed to spread resources to meet the most needs.
Maintaining strong communication between CEOs and boards of directors will ensure a shared vision necessary to embrace transformation. Board members who stay connected with the organization’s client base will gain a heightened awareness of fears and personal biases that may be impediments to implementing change processes. Through data collection and mission impact measurements, board members will be given the tools to determine programmatic effectiveness.
When executed well, adapting to change and implementing organizational transformation can be a catalyst. Nonprofit organizations can use this period of rapid change to develop strategies that address systemic inequities with the paradoxical long-term goal of putting themselves, as a sector, out of business. Now is the time to build resilience into our systems, allow for adaptation along the way, and master change management. The strength and survival of our organizations and our communities depend on it.
A study conducted by the Boston Consulting Group found that companies that approach digital transformation through incremental changes instead of wholesale transformations are more likely to succeed. Instead of starting with an ambitious, large-scale transformation, organizations should break it down into smaller pieces that can be tested and evaluated along the way. This approach allows organizations to adapt to change more sustainably.
Another study by Harvard Business Review found that successful change management depends on having a clear, compelling reason for the change. The study found that 70% of failed change initiatives were due to employees not understanding why the change was necessary. When employees understand the reason for the change and how it will benefit the organization, they are more likely to embrace it and work to make it successful. As a nonprofit organization, it is crucial to prioritize the role of the board of directors in managing change effectively. With committed leadership, a focus on diversity and inclusion, effective communication, and a strong commitment to core values, your organization can thrive in the face of disruption and make a meaningful impact on the world.
Change is not always easy, but it is essential for growth and progress. By embracing change and taking proactive steps to manage it effectively, your organization can build resilience and adaptability into its systems, allowing for continued success in the face of uncertainty and disruption. With a steadfast commitment to your mission and the support of a strong board of directors, your organization can not only survive but thrive in the years to come.
Citations:
Innosight (2019). Corporate Longevity Forecast: Creative Destruction Accelerates. Retrieved from https://www.innosight.com/insight/corporate-longevity-forecast-creative-destruction-accelerates
McKinsey & Company (2020). Diversity wins: How inclusion matters. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/diversity-wins-how-inclusion-matters
Randstad US (2019). 2025 Workplace Trends Report. Retrieved from https://www.randstadusa.com/workforce-insights/workforce360/archives/2025-workplace-trends-report/102/
