According to the 2006 CompassPoint nonprofit leadership study, Daring to Lead, three out of four executive directors were expected to leave their jobs within five years.  While this alarming prediction did not come true to the extent expected, the largest concentration of executives is in the 50-59 age group and will be pursuing retirement. 

So if you serve on a voluntary board you will likely find yourself in pursuit of a new director.  Since this is one of the most important responsibilities a board can undertake, it makes sense to approach this likelihood in a thoughtful, deliberate manner.

The following resources are provided to assist nonprofit organizations with executive transition management (ETM) or excutive succession planning (ESP) or whatever specific title you want to give it.  This is not an all inclusive resource list, but does represent significant research by the author on this topic.

Background Data

Two books are considered classics in leadership transition:

Gilmore, T. (1988) Making a Leadership Change: How Organizations and Leaders can Handle Leadership Transition Successfully.  San Francisco: Jossey-Bass.  Gilmore’s classic is currently out of print.  However, in it he discusses keys to a new leader’s effectiveness, contributions to long-term success and advice on preparing for transitions.

Bridges, W. (1991) Managing Transitions: Making the Most of Change. Boston: Addison-Wesley Publishing Company.  Bridges makes a distinction between change which occurs externally and transition which is the emotional process people go through as a result of change.  He also splits the transition process into 3 stages: ending, neutral zone, and new beginnings.  The ending is an important part of transition, people must acknowledge the end and loss; the neutral zone is the turbulence people feel between the old and new; new beginnings truly occur when people let go of the past, move through uncertainty and begin to focus on the future.

Two national studies in 2004 and 2006 brought to light the planned departure of a surprising number of executive directors who were surveyed.  This raised the question of how well prepared organizations, and the sector at large, were for the projected wide-scale transitions that were projected.

Nonprofit Executive Leadership & Transition Survey 2004, Research by Managance Consulting in collaboration with TransitionGuides, funded by Annie E. Casey Foundation.  http://www.aecf.org/uploadPublicationFiles/executive_transition_survey_report2004.pdf

Provides results from a web based survey of over two thousand executive directors from nonprofit organizations with the following key findings:

·         One third of executives are either long-time executives or founders.

·         Most (60%) are first time executives and less than a quarter plan to take another executive position in the nonprofit sector.

·         Women rule the nonprofit sector in terms of numbers but run smaller organizations and make less money than men.

·         There is limited leadership diversity in the sector.

·         The sector is moving from relative stability to instability.

·         Transition will likely occur in two waves (the first by 2010 and then a second by 2020).

Daring to Lead 2006 – A National Study of Nonprofit Executive Leadership, A joint project of CompassPoint Nonprofit Services and The Meyer Foundation www.compasspoint.org

Key findings of this report:

·         Annually 9% of executives leave their jobs.

·         Three out of four executives expect to leave their current jobs within five years.

·         One in three executives is eventually fired or forced out of the job – an unexpectedly high percentage.

·         Just 29% of executives have discussed a succession plan with their board.

·         Even when executives do leave their jobs, most will stay in the nonprofit sector, 70% say that another nonprofit, a grantmaking organization or consulting is their ideal next job.

 Web Resources

Significant contributions to the growing body of knowledge of executive succession were made in a series of Monographs.  This series is managed jointly by CompassPoint Nonprofit Services, TransitionGuides, and the Annie E. Casey Foundation, and underwritten by the Annie E. Casey Foundation and the Evelyn & Walter Haas, Jr. Fund. These organizations are leaders in research and practical application of principles related to successful succession planning.  I warn you when you go to the Casey Foundation site be prepared to stay awhile as it is rich with reports and monographs on multiple topics. 

Capturing the Power of Leadership Change by CompassPoint and TransitionGuides  Volume 1

https://www.compasspoint.org/assets/63_etmono1capturing the power.pdf

Interim Executive Directors: The Power of the Middle by Tim Wolfred

Volume 2

https://www.compasspoint.org/assets/64_etmono2interimeds.pdf

Founder Transitions: Creating Good Endings and New Beginnings by Tom Adams  Volume 3

https://www.compasspoint.org/assets65_etmonofoundertransitions.pdf

Up Next: Generation Change and the Leadership of Nonprofit Organizations by Frances Kunreuther

Volume 4

https://www.compasspoint.org/assets66_etmono4upnext.pdf

Staying Engaged, Stepping Up: Succession planning and executive transition management for nonprofit boards of directors.

Volume 5

http://www.aecf.org/uploadPublicationFiles/staying%20engaged%20up.pdf

Building Leaderful Organizations: Succession Planning for Nonprofits by Tim Wolfred 

 Volume 6

https://www.compasspoint.org/assets/526_buildingleaderful organiza.pdf

Resources - National

CompassPoint Nonprofit Services established their Executive Transitions program in 1997 in response to seeing so many organizations struggle with their leadership turnover.  They offer a number of resources, workshops and a full range of consulting services. Tim Wolford, Senior Projects Director is a nationally recognized pioneer and leader in the field of executive transition.  On a regular basis they offer 3 day workshops for a limited number of consultants who work in this area. www.compasspoint.com

Wolfred, Tim (2009) Managing Executive Transitions,  CompassPoint Nonprofit Services

This book shows how a state of transition can give board and staff members a chance to put things together in new and creative ways –to discard some old pieces and to bring in fresh elements.  He recommends a three phase process  Prepare, Pivot, and Thrive.

TransitionGuides  

Offer tools, ideas and services to strengthen organizations during leadership changes. They are dedicated to sustaining and strengthening nonprofits through better managed leadership transitions and related organizational development.  They offer a full range of publications, consulting services and webinars and in-depth workshops for executives planning to leave their organizations. Tom Adams and Don Tebbe are recognized leaders in this field.  www.transitionguides.com

Tebbe, Don( 2008 ) Chief Executive Transitions: How to Hire and Support a Nonprofit CEO

This is a comprehensive guide to help boards navigate the hiring process and oversee a successful leadership transition. It includes checklists, key questions board members will need to answer as they go through the process, and practical real-life examples. 118 pages with an accompanying CD-ROM that includes 13 helpful documents, including a resume scoring sheet, sample timeline, sample interview questions, and a sample 90-day entry plan to help ensure the success of the newly hired chief executive.

Winner of the 2009 Terry McAdam Award – Available from BoardSource

http://www.boardsource.org/Bookstore.asp?Item=1086

Book w/ CD-ROM
Number of Pages: 118
Item Number: 348

Board Source member price $34

Regular  Price $51

Third Sector New England  

Since its founding in 1959, Third Sector New England has focused on building the knowledge, power and effectiveness of nonprofits, so they can better help communities leverage resources, solve problems, identify opportunities – and thrive.  They provides executive transition and search services. www.tsne.org

Resources – Local

Now that I have pointed out the national leaders in this field.  I would be remiss if I didn't at least mention my own interest and expertise in this area.

Management Strategies www.management-strategies.org  or 716-483-6939.

 Established in 1992, provides consulting and capacity building services to non-profits including interim agency management and transition.  Patricia Smith, President has served as interim executive director for seven different Chautauqua County non-profits including Family Service, Literacy Volunteers, YWCA, Cornell Cooperative Extension, Joint Neighborhood Project, Chautauqua Blind Association and the Lucy-Desi Center.  Each interim position lasted from 4-6 months and included three phases – Assessment, Visioning and New Beginnings. 

Having an interim provides a board with the opportunity to really think about their future and then identify the skill set, characteristics, experiences they need in a new director to help the organization get there.  I tried to capture the essence of the experience in the article cited below that I wrote for Charity Channel.   The other articles are ones I have written over time related to hiring the executive director and are available on this blog or my website.

89 P: 617.523.6565 | F: 617.523. Sector New England