How do I tell the President & EVP about this mistake?

Anonymous

June 22,2023 at 7:58AM UTC

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How do I tell the President & EVP about this mistake? And how bad is it?

I'm only 3 months into a director role for a new program at a non-profit. Before I arrived, they had raised funding based on certain financial projections that included a forecast of when the program would become self-sufficient. I don't know what assumptions the numbers were based on, but the expenses are almost 10x what was projected, which throws everything off. Also, certain funds were received with the commitment to use them in specific areas where we don't have enough activity to make good on that commitment. These projections and commitments were made by my boss, the EVP.

I'm being pressured to prioritize raising more money, but I'm trying to focus on sorting out the operational issues, while leadership is implying that I'm not doing enough. My impression thus far is that they take an "act now, sort it out later" approach to things, which is the opposite of how I operate. So I guess I have two questions:

1) How should I discuss the error with the projections without offending them or making my boss look bad?

2) How do I emphasize the necessity of gathering the appropriate information before making a decision?

I'm concerned that I will come across as critical and/or condescending. How would you handle this?

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Joan Williams, Senior Talent Acquisition SpecialistJune 22,2023 at 8:20AM UTC
YOU ASKED: "How should I discuss the error with the projections without offending them or making my boss look bad?"
I would not frame it as an error. I would frame it as something like you need to discuss your analysis of the projections.
Don't make a judgement about it. Present the facts - I wanted you to know where we stand - and let them draw the conclusion.
YOU SAID: "How do I emphasize the necessity of gathering the appropriate information before making a decision?"
That could be an altogether harder proposition. Like maybe potentially changing the basic culture of the organization. Which rarely happens. At least not without a lot of blood, sweat and tears.
YOU SAID: "My impression thus far is that they take an "act now, sort it out later" approach to things, which is the opposite of how I operate."
I would stress legal liability. Also, a non-profit - do they answer to a Board? Any regulatory body? Was part of your job supposed to be to clean up any of these issues?
Legal liability and loss of reputation - both are expensive for non-profits - I'd stress those.
AnonymousJune 22,2023 at 12:23PM UTC
You should first go to your boss, discuss without accusation. Ask what their thoughts are and how to address with leadership. You can choose to not sound condescending with asking their pov. Going past them to their leader is not a great place to start without giving YOUR leader a chance to be apart of that conversation.
Anne-MarieJune 22,2023 at 1:14PM UTC
First of all, it sounds like they definitely need you there! Pointing out an error and someone else’s work, especially at the executive level can be very nerve-wracking. I would probably take the information to your boss, go through the numbers and your conclusion then basically ask if there’s anything that you are missing. It doesn’t sound like there is but this prevents you from going in with the “you guys really screwed up“ approach which I know would not be your intent. So maybe going in and doing a litmus check. “This is what I’m seeing. These numbers aren’t coming out the same for me. What am I missing?” From there you can easily get to “How do we want to move forward?” Good luck to you. You’re doing the right thing!
Kristie WhiteJune 22,2023 at 1:40PM UTC
My guess is you already know what happened. The “act now, sort it out later” EVP did just that. They already know what you have discovered. You were hired to do the dirty work. This is the culture and method of this organization and it will happen again and again. You can take it to them and test the theory. But you probably need to decide if you fit here and can deal with this behavior.
Jennifer ShoffnerJune 23,2023 at 12:31PM UTC
Yes, you should discuss the issue with the projections but approach it humbly. "Help me understand how these numbers were calculated". You already know the answer but if you go in with "these are wrong" then it puts them on the defensive. This is a soft approach but it might be helpful to understand how and why something was done to then work on solving it.
I do agree with another post that the culture of "act now, sort it out later" may not be a good fit with how you conduct yourself. Better to learn that now and take necessary steps.
GirlBossanova934974June 23,2023 at 1:07PM UTC
I have seen this "All is going to be rosy peachy wonderful" thinking in the CFO/finance world for over 20 years. Expenses get way out of whack. Revenues are well below expectations. You do NOT have a people problem. You have a SYSTEMS problem. You need to address the issue as a SYSTEMS PROBLEM as in a non existent budgeting process. Executives just throw numbers around. The way to get out of this is put in systems to formalize the budgeting and forecasting process. Projects have to go through official sign procedures and numbers have to be checked and rechecked. BUT FOR TODAY, you have to stop the bleeding as we say in CFO land. You have to find the funds to make good on the current commitments and then SHUT DOWN the whole thing until the new process is up and going. No need to accuse anyone of anything. You blame it on THE SYSTEM or as the accountants like to say, a lack of internal controls. Best of Luck!
AnonymousJune 24,2023 at 6:27PM UTC
I really like your suggestion to treat it as a systems problem. I will definitely be creating a planning procedures document that insists on verifying numbers for projections and funding commitments.
Susan MyersJune 26,2023 at 9:46PM UTC
Always, always go in with a solution. Don't point fingers but do layout the facts clearly and factually. As stated below, use "help me understand, am I missing something?"
BethBJune 23,2023 at 3:16PM UTC
Use third party language or we/our/ours.
Be as factual as possible. Avoiding adjectives helps take judgment out of your words.
Describe the situation without emotion. . Regardless of projections, our fundraising didn’t result in the amount we desired and expenses were 10x higher than projected. Let’s brainstorm ideas for handling both sides of the equation. I’d love to have a solid plan we all believe in so we can have the best programming we can. Go into the meeting with ideas. And acknowledge that more revenue is clearly needed. You aren’t trying to push your job off on others, you are a team player.
it May not be appropriate to address the budgeting challenge at this time. If so, ask to be included in the budget process or suggest that projections be in line with 2023 actuals plus ( or minus) a certain percentage or dollar amount
Paula Manczuk-HannayJune 23,2023 at 3:30PM UTC
I’m a long time professional fundraiser and would like to add to the excellent advice you’ve already received. When preparing your notes for your discussion with higher ups, include ways that you can start working on raising more funds now. While sorting things out should the the priority, there are steps you can take now to start building the pipeline for additional funding. Making calls, scheduling meetings with funders, etc. They don’t have to be asks, but can lay the groundwork for an ask once there is a better sense of what the messaging will be. If you fail to acknowledge the fundraising part, which sounds like a key part of your job, you will lose their trust.
I have been in this untenable situation myself a few times. It’s tough and seemingly impossible. Hang in there.
Cheryl NeasJune 23,2023 at 4:33PM UTC
Are you also responsible for reporting and compliance? Someone is going to have to tell that funder that you haven’t spent those funds as directed and/or have a conversation about using them in a different way that aligns with your mission and the funder’s goals. It’s not the end of this challenging situation but, “What do we say to this important external stakeholder?” might at least provide a start to addressing it.
AnonymousJune 23,2023 at 5:28PM UTC
The numbers should speak for themselves. Worst case build out the model that you think can support what they want and then let them know what the costs to deliver on that are. If you cannot deliver on it now then not bringing it up makes you part of the problem vs the solution. If you do it in a just the facts way it should be well received. If not then you might just have to realize they will blame you if things fail.
AnonymousJune 24,2023 at 2:43AM UTC
Yes, yes and yes. Come the the options and make a recommendation based on the numbers and constraints that are realistic. These conversations are tough, but coming with solutions will make you look like the badass, sharp person you are.
Also inheriting other’s programs/decisions can SUUUUCK, but variables are just that. Good for you for identifying and seeking professional ways to bring it up!
Liz MilneJune 24,2023 at 12:44AM UTC
Take a deep breath, spell it out, and let them know what will happen if they play fast and loose with funding that's been earmarked for certain things...
Heather BinghamJune 24,2023 at 12:25PM UTC
I always find it easier to ask questions. "I've noticed that the expenses are much higher than anticipated. Are we OK with that?" or "Is that as we anticipated?". The problem with going in hard and pointing out errors is that people can be sensitive and take that as a criticism of themselves, or as an aggressive challenge to their team. But if you can just gently leave it open, without seemingly making any value judgements at all, the person you are speaking to can remain more open.
Nibor EroomJune 27,2023 at 9:13PM UTC
I like this approach!
AnonymousJune 25,2023 at 12:05AM UTC
Can you make a spreadsheet of all expenses etc. and submit it for approval. If they don't like it, it sure will get rejected.