Don’t Leap To A New Leader!

Don’t Leap To A New Leader! Chris DameUse Twitter Hashtag #npweb Special Thanks To Our Sponsors

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Today’s Speaker Chris Dame President and Founder, Non-Profit Transitions Hosting: Sam Frank, Synthesis Partnership Assisting with chat questions: April Hunt, Nonprofit Webinars

Using Leadership Transition to Improve Your NonprofitBeyond the Search Consultant © NPT LLC

Today’s Webinar is about• Making Transition Time more effective• Improve ED Hiring• Prepare for future success• Improve Board’s understanding of Leadership Needs• Create excitement - next chapter• Help new ED - “taking care of business” © NPT LLC

Leadership Transition is like climbing a mountain•Need Map•Need Guide•Need Tools•Need Teamwork•Need Plan•Need Luck © NPT LLC

Why is Leadership Transition Time Important © NPT LLC

All nonprofits experience leadership change • Voluntary • Involuntary • Choice = drift or advancement © NPT LLC

Special Challenges• Founders & long term leaders • Confusion – leader w. mission • Emperor’s Syndrome• Fired Leaders • Recovery – focus on mission • Attention to deficits © NPT LLC

National Studies• Annie E. Casey Foundation• NE Executive Trans. Partnership• Takeaways: – many ED’s leaving soon • ~10%/yr • 66-71% w/i five yrs – Boards need to be ready – Np’s do not mentor well – Weak bench strength – No back up quarterback © NPT LLC

Planned transitions are rare• Large number of non-profits (NCCS) – 29 k in MA – 1.5 m in US• Every organization changes leaders © NPT LLC

Executive Leadership is needed EVEN during transition ESPECIALLY during transition © NPT LLC

Interim periods stress every organization Staff Board Stakeholders © NPT LLC

The Board is busyFocused on future & leadershipOperations = distractionTransition influences future © NPT LLC

Transition Period ≠ Stagnation• Assessment• Introduce change• Strengthen Leadership• Build the Base• Look to Future © NPT LLC

Search Consultant is NOT enough• Focus = Build Bright Future• Untouched: Daily Operations Organizational Changes Middle Management Leadership• Relationship = Board only © NPT LLC

Smart Nonprofits seek newINSIGHTS during transitions © NPT LLC

Questions at Several Levels:• Board Do we just need another “Harry ” What does the ED job REALLY entail What is OUR mission tomorrow What does that mean for leadership needs How do we attract an exiting new leader © NPT LLC

Questions - StaffWho’s in charge?What are we really about?Is this FINALLY time to addressold problems?Who cares about US(the staff)?Is the Board really listening? © NPT LLC

Kinds of transitions © NPT LLC

Planned– Retirement– ED Promotion: Gradual transition to new job– Merger & consolidation of 2 agencies © NPT LLC

Unplanned– Death of ED– ED involuntary sudden departure (Firing/Forced resignation)– ED’s voluntary rapid departure (greener pastures) © NPT LLC

Special Case – TheFounder/Emporor Syndrome – Long tenure = difficult transition – Legacy issues – Loyalties (div btw old and new) – Board leadership (can be lacking/old friends) – Legacy threats (perceived and lead to:) – Sabotage © NPT LLC

William Bridges - ManagingTransitions: Making the Most of Change (2nd ed. Da Capo Press, 2003) © NPT LLC

Bridges says• Old paradigm – Beginning – middle – end• Bridges - Flips – Endings (saying goodbye) leads to – Middle - the neutral zone (unfocused wandering), leads to – Exciting new beginnings © NPT LLC

Bridges lessons for nonprofits• people grieve – let them• don’t skip the neutral zone• help staff EXPERIENCE change – THEN get excited about new growth © NPT LLC

So What’s Needed?• Change leader – wilderness guide• Challenge to GROW• Caring, not caretaking © NPT LLC

How long is transition? • Depends • Matches search process • Six months © NPT LLC

Why caretaker is wrong• Caretakers are blind – loyalty to past – protect the status quo• No movement thru Bridges zones• Missed change opportunities• No re-examination of mission & leadership needs• Standstill means to fall back – LaPiana – competition is reality © NPT LLC

What Makes Effective Interim Leader? • Objectivity • Flexibility • Judgment • Future focus • Thick skin • Humility © NPT LLC

Objectivity See things as they are, not how peoplewant to describe them Speak truth to power © NPT LLC

FlexibilityFast learnerOvercome roadblocks © NPT LLC

JudgementHow much change?How fast to change? © NPT LLC

Future focus: 3 “E’s” Excitement Energy Enthusiasm © NPT LLC

Thick skinAnger focusSlings and arrows © NPT LLC

HumilitySelf effacingSay “Good-bye”Stay away © NPT LLC

Who Should Be the Interim Leader? © NPT LLC

1. Existing employee– Pros: – Knows agency – fast start – Employees know – Reassuring to public – Link to the “golden” past – Link to Board – high trust– Cons: – Temporary promotions stir jealousy – Caretakers become candidates – Peter principle – Retrograde difficult © NPT LLC

2. Board member– Pros: • Quick & easy & maybe cheap • Knows organization (or thinks so) • Keeps leadership team intact • Organization knows him/her (or thinks so) • Good board rapport • strong link to search • high trust level • Continuity to outsiders (appearance) • Familiar with mission © NPT LLC

2. Board member– Cons: • Governance skills ≠ executive skills • Conflict – search vs. operations • Possible Time constraints • Board Power dynamic shifts • Search consultant • Retrograde difficult • new CEO inherits critic & comparison • ED/Board relationship complicated • Unfair comparisons set up © NPT LLC

Professional IED– Pros: • Experienced in transition • Deliberate change agent now is different from then change is uncomfortable but good encourage rising expectations • Sets the stage for an empowered ED • Offers new insights to the ED • Reassures stakeholders • Delivers bad news to Board • Makes hard & unpopular decisions © NPT LLC

Professional IED– Cons: • An unfamiliar role to Staff Board Stakeholders/clients • Can be more costly © NPT LLC

What Does Interim Leader Do © NPT LLC

Leader & CEOTheme maker – what are we about?Operator, hands-on – attend to businessMovement agent - keep organizationmoving forwardTroubleshooter - meet problems thatcome up © NPT LLC

Counselor & Therapist– Listen to staff tell stories– Avoid he said/she said situations– hold up a vision of the whole • the mission • possibilities for the future • the need for teamwork– Recognize noise as necessary– Meet emotions with confidence & vision © NPT LLC

Link or transition figure• between the staff and the Board• between the staff and the search consultant• between the past and present• between the present and the future © NPT LLC

Detective:• Why is the organization here – what am I seeing as its needs• What needs am I not seeing – what’s not revealed yet• Where does the organization have to go © NPT LLC

Change Agent – ask questions like– What needs to be done TODAY?– What change can wait?– How do I get people excited & moving toward the future?– What do stakeholders need to know about?– What does the new ED need to know? © NPT LLC

Whip– Hold people accountable – Be firm - fair & consistent– Move toward performance standards – Align to best practices– Cut the “fat’ – If you don’t do it NOW the new ED will have blood on his/her hands © NPT LLC

Mentor/advisor– Advise Board on impacts to search– Prepare the Board – set expectations– Brief the new permanent leader– Be available for consultation © NPT LLC

What the IED is NOT!• Miracle worker Financial expert Instant fund raising resource Magnet for funders & regulators• Staff buddy• Disconnected from governance• Substitute for strategic plan © NPT LLC

IED’s Challenge - “H-E-L-P” “H-• Honor the Past• Examine the present• Look for (reasonable) change• Plan for the future © NPT LLC

Honor the Past• Trash talk is unproductive• Don’t point fingers• Staff know the issues - better• Staff can help or hinder• Attitude set by how they observe others treated – including former staff © NPT LLC

Honor the Past• Staff invested in agency’s past• Want their story to positive• Want jobs to have meaning• Bad story demeans their investment © NPT LLC

Few basic rules:• Tell at least one good story about past• Help people say goodbye to the past• Link past to present & especially the future• talk up the promises of the future © NPT LLC

Examine Mission• Clear mission statement• Reality match rhetoric• Circumstances changed mission• Impact of Leader’s departure• Stakeholders needs & resources• View of mission by: – Outsiders – Staff – Board• Use in ED recruitment © NPT LLC

Examine Finance• Paying bills – why not• Collecting revenues – why not• Board fully aware of finances• What elements need change - pace• New revenue sources• Steps needed TODAY © NPT LLC

Examine Stakeholder Relations• Organization performing to expectations• Compliance standards met• Stakeholders view OUR future – same – reduced – potentially enlarged• What stakeholder needs NOT met?• Is movement TODAY appropriate © NPT LLC

Do Organizational Assessment• Does structure match mission• Are managers equal to positions & funding• Can organization afford current staffing• Changes needed - costs & benefits• Are there legal considerations• Timing for such changes – best early• Complete changes and empower the new ED © NPT LLC

Ask questions like• Old skeletons needing attention• Staffing changes needed TODAY• Financial operations improvements• Stakeholder relationships - sound © NPT LLC

Take Action to• Strengthen Governance – to help new ED• ID important Stakeholder relations for new ED• ID most important challenges for the new ED © NPT LLC

Take Action to• Crystallize Staff view of future – Briefing book – Dreams• Clarify Mission Impact of change – Focus for new ED – Board considerations © NPT LLC

Conclusion – Remember• All nonprofits change leaders• Interval = opportunity for positive change• Board & the staff need self examination• ACT to make change in the interim• Key = objective interim leadership• Interim Leader should H-E-L-P• Set the stage - bright new chapter © NPT LLC

Find the listings for our current season of webinars and register at NonprofitWebinars.com Chris Dumas Chris@NonprofitWebinars.com 707-812-1234 Special Thanks To Our Sponsors

Don’t Leap To A New Leader!

by NonprofitWebinars.com on Feb 23, 2011

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Don’t Leap To A New Leader! — Presentation Transcript