The document discusses challenges and solutions for nonprofit succession planning. It notes that the nonprofit sector will need 80,000 new senior managers annually by 2016 due to a growing leadership gap. Common challenges include low pay, underfunding of leadership development, and "founder syndrome." Key elements of succession planning include identifying leadership potential, developing growth plans, and updating readiness assessments. Solutions proposed are recruiting volunteers with succession planning expertise, conducting strategic planning that includes succession, and making leadership development a regular part of organizational culture and staff evaluations.

1. St. Louis Area Foodbank
2013 Agency Conference
Succession Planning:
Challenges and Solutions
For Nonprofit Organizations
April 18, 2013

2. Jim Braun
Partner, EMD Consulting Group
636.541.3057
jbraun@emdconsulting.com
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4. The Nonprofit Leadership Gap
Definition of Leadership Gap:
The difference between the need for
leaders and the supply available in….
• Those with the required skills and
commitment
• Those trained and willing to work in
the nonprofit sector
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5. The Nonprofit Leadership Gap
Findings of a 2006 national study by
the Bridgespan Group:
• By 2016 the nonprofit sector will need
80,000 new senior managers each
year
• Follow-up data (2009) reveals the
nonprofit leadership gap is widening
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6. Challenges Facing Nonprofits in
Succession Planning
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7. Challenges Facing Nonprofits in
Developing Future Leaders
• Pay in nonprofits is well below the for-
profit sector
• Attitudes that nonprofits should have
all resources going to direct services,
keeping training and administrative
costs to a bare minimum
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8. Challenges Facing Nonprofits in
Developing Future Leaders
• Lack of funding for leadership
evaluation and training comparable to
the for-profit sector
• Nonprofits’ historic lack of know-how
in developing succession plan
processes
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9. Challenges Facing Nonprofits in
Developing Future Leaders
• “Founder syndrome”
• Overreliance on leaders making huge
time and financial sacrifices
• Crisis mode of survival prevents
organizations from planning and
taking proactive steps for leadership
succession
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10. Key Elements of Succession Planning
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11. Key Elements of Succession Planning
• Recruiting and hiring individuals with
leadership potential
• Identifying employee strengths and
growth areas
• Encouraging employee aspiration for
leadership and providing pathways for
advancement
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12. Key Elements of Succession Planning
• Developing specific individual growth
and development plans
• Evaluating employee growth in terms
of skills, experience and
competencies needed for specific
leadership positions
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13. Key Elements of Succession Planning
• Charting succession plans by defining
employees that are “potentially
ready,” “nearly ready,” or “fully ready”
to assume higher leadership positions
• Updating succession plan charts
annually based on most recent
performance evaluations
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14. Key Elements of Succession Planning
• Developing lists of individuals outside
of the organization whose leadership
skills and talents are estimated to
match leadership needs for certain
positions
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15. Nonprofit Succession Planning Solutions
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16. Nonprofit Solutions
• Recruit volunteers or board members
that have specific expertise in
succession planning
• Recruit volunteers or board members
that can get donated leadership
assessment and development
services from their business sector
associates
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17. Nonprofit Solutions
• Conduct strategic planning that
includes succession planning
• Stay open minded – don’t let
unconscious biases influence what
a successor should look like (age,
sex, race, etc.)
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18. Nonprofit Solutions
• The executive director and his/her
direct reports meet regularly as a
leadership team
• Board oversees a process that
evaluates leadership strengths and
growth areas of current leadership
team members
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19. Nonprofit Solutions
• The executive director is expected to
cultivate leadership skills among
leadership team members
• The board and executive director
develop and periodically update a
succession planning chart identifying
internal and external candidates for
filling needed positions
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20. Nonprofit Solutions
• All staff member performance
evaluations include professional
development goals and strategies
• All members of the leadership team
are evaluated annually for how they
cultivate leadership talent
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21. Nonprofit Solutions
• Succession charts are developed and
regularly updated listing “who is how
ready” to assume “which positions”
• All supervisors are evaluated annually
on their ability to cultivate successors
and leadership among their staff
members
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22. Succession Planning:
Summary
1. Think ahead – stay out of denial
2. Recruit experts (paid or volunteer) to help
develop a succession plan
3. Make leadership development an ongoing
part of your organization’s culture
4. Use experts (paid or volunteer) to help build
skills in cultivating leadership among current
leaders
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