Many organizations are facing a major leadership transition in the next few years. Is it possible to use such a leadership change as an opportunity to grow the capacity of your organization? Managed well, a leadership change honors the past, inspires creativity among board members and staff, lays the foundation for expanded organizational performance, and creates an environment in which the new leader is likely to thrive. Managed poorly, a leadership change is often a stressful, anxious experience that causes an organization to lose momentum, compromise the services it provides, jeopardize key relationships with stakeholders, and make it difficult for the new leader to succeed. Learn how to set your organization up for success.
4. The numbers
43%of nonprofit organizations
had to fill a C-Suite position in the past 2 years*
The Bridgespan Group, survey, June 2015
5. The numbers
9%of nonprofit executives turnover
every year
Nonprofit Quarterly webinar: Nonprofit Leadership Transitions and Organizational Sustainability:
An Updated Approach that Changes the Landscape,
6. The numbers
Outside Internal
Consistently over 15 years of data,
two thirds of executive hires are
from outside the organization.
This may point to organizations not
doing a good enough job
developing leaders internally.
Often it can be challenging for an
internal candidate to have people
see them separately from the role
they have had and for those
candidates to step into their new
authority.
7. William Bridges (2004)
• Formless
• Disoriented
• Lack of focus
• Withdrawal
Transition Model
William Bridges originally
created this model to describe
the experience people have
when going through a personal
transition. He has since applied
it to organizations.
Frequently people, especially in
the US’ action oriented culture,
want to jump immediately from
the ending to the new
beginning. The middle, which
tends to be the most
uncomfortable, is a necessary
part of the process.
8. People experience a variety
of emotions when they are
going through a transitions.
These are both positive – the
excitement and creativity
that can come with a time of
change - and less
comfortable – including
anxiety and confusion.
Organizations manage
leadership transitions more
successfully when they
acknowledge that it is an
emotional experiece and
give people space to talk
about this.
10. Prepare Pivot Thrive
Leadership transition process
The executive transition
process has three stages –
most people only think
about the middle, maybe
the first – and often forget
the last stage.
This is based on Tom Adams
pioneering work on
leadership transitions in the
nonprofit sector.
11. Prepare
• Organize
• Review
• Stabilize (if needed)
• Plan
• Document
Pivot Thrive
Leadership transition process
Taking the time to get prepared
sets the stage for success. This
includes getting your transition
team organized, thinking
through and articulating roles in
the search process, creating a
communications plan.
The organization should take the
time to review its situation by
conducting an organizational
assessment, address any key
deficiencies. Documenting roles
and responsibilities and key
processes is also key.
12. Prepare Pivot
•Recruit
•Screen
•Select
•Hire
Thrive
Leadership transition process
The Pivot phase is what people
usually think about with a
leadership transition – the search
process for the new leader.
How will you ensure a strong and
diverse candidate pool? Who will
screen resumes and conduct
vetting interviews? How will staff
be involved in the search
process? Who will make the final
decision? Who will negotiate the
final terms of employment? How
will you manage the handoff?
These are all critical questions to
consider.
13. Prepare Pivot Thrive
•Launch
•Relate
•Support
•Evaluate
Leadership transition process
The final stage is also one that
many miss. People involved in the
search are tired and think they are
done once the new leader is on
the job. Providing the new leader
with a fully supported orientation
is key.
One of the critical items that is
often missed at this stage is
connecting the new leader into
the organization’s social network.
Taking time at the beginning to
have meetings with key
stakeholder both internal and
external is time well spent.
14. Case for an
Interim Director
• Photo by Sangudo
There are consultants who specialize in taking interim roles.
Many have been executive Directors in the past. Many have
been interim directors multiple times.
They have the space to “tell the truth” to the board. They will
conduct an organizational assessment. They can be very helpful
with addressing key organizational issues – clean up messes
and set the new leader up for success. Allows new leader to
come in and focus on the future.
This is especially useful after a founder or a long term executive
director – one who has been in the role for 7-10 + years. It
create some space, allowing people to more naturally move
through the phases of transition. It allows the natural
separation process to happen so that the identity of the
organization and/or culture of the organization is not so caught
up in how the previous leader did things.
It helps to slow things down – so that board and staff are able
to think strategically and take the time to do a thorough search
process. It may seem like an expensive option yet can have
many long term benefits.
16. Succession planning:
ways to get started
Photo by Brick 101
Photo by Anne
There are a variety of ways to get started with
succession planning:
• emergency back up planning,
• departure-defined planning;
• leadership development
17. Emergency Back Up
Planning
Photo by Brick 101
Photo by Terry Minton
The most basic is planning for an emergency. Who will step in on a
temporary basis if your leader is out suddenly? You should include
both board and staff roles – and not just your CEO role – but your
whole leadership team.
Once you have identified who, then you need to detail the ‘how.’
Does the person stepping into the role know what to do? Are there
ways you could do cross training now to prepare? What
documentation exists to enable a person to take over as seamlessly
as possible? If it doesn’t this is a good place to get started,
especially by listing all the executive’s key functions and major
tasks..
18. Departure-defined
planning
Photo by Brick 101
Photo by Alejandro Groenewold
Your executive or someone on the leadership team knows
when they are planning to leave in the next few years.
Often this happens when they are planning to retire. This
usually happens over multiple stages – and not all may be
public – especially for a lengthy transition. It often starts
with the leaders thinking about what is next for them.
This can sometimes be challenges because the leader
may give mixed messages and may not clear totally clear
about their own intentions. Often leaders – especially
those in the role for a long time – have mixed feelings
about leaving.
A key part of planning is to assess when the organization
19. Leadership Development
Photo by Brick 101
The longest term strategy is
internal leadership
development.
How can you build your bench
strength within your
organization. How could you do
cross training? Are you aligning
staff with their strengths?
Can you reassess current
leadership responsibilities and
redistribute them, providing
more junior staff to stretch and
learn new competencies?
20. Be in Touch:
Carol Hamilton
Principal
Grace Social Sector Consulting, LLC
info@gracesocialsector.com
http://www.gracesocialsector.com
@carolnhamilton
Learn More
Editor's Notes
Carol…
Consultant with the Institute for Conservation Leadership since January 2016
20 Nonprofit experience
American University Masters Organization Development
Reasons –
New Roles
Retirement
Asked to leave
Left for another organization
Other reasons
Reasons –
New Roles
Retirement
Asked to leave
Left for another organization
Other reasons
Consistent across 15 years of data = 2/3rds of hires are from outside the organization
These numbers have not budged – not doing a good job of developing leaders internally in organizations
Looking for a hero
Launch poll - when
We are now going to take a closer look at best practices for managing executive transitions
The executive transition process has three stages – most people only think about the middle, maybe the first – and often forget the last stage. We will talk about all three
Organize
Board level transition team appointed
Address needs of departing exec – coaching, staff – who will know, how to manage anxiety, etc. how to retain key staff
What role will staff have in the search process if any – clarify expectations
Communications plan – who are the key stakeholders – when and how will they be informed. Funders, etc
Do you need a consultant to guide you through the process?
Would the organization be better served with an interim exec?
Project planning for transition
Review
Conduct an organizational assessment (another piece useful to have outside consultant help with) – strengths, challenges, direction, priorities – board, staff and stakeholder interviews
Stabilize if needed – address key deficiencies identified in assessment process
Plan – Hold a strategy and leadership session (another place for consultant help) – is board clear about strategic direction? What do you want in a new executive director. 12-18 month leadership priorities – issues to be addressed before new ED is on board
Document
Search plan, position profile, outreach lists, compensation research
Summary of Leadership and strategy session
Pivot
Recruit
Recruit a strong and diverse candidate pool
Screen resumes and conduct vetting interviews
Review resumes with search committee
Conduct interviews
Arrange for staff to meet with semi finalists or finalists
Hire
Board approval of final choice
Confirm employment agreement
Communicate through out process
Handoff –
Plan arrival and orientation of new ED
Ensure good and timely hand off of information
Thrive – this is the part that most organizations miss – they are tired from the transition and think they are “done” once the new leader is on the job.
Launch –
Announcements, plan for first days
Relate
Create a 90 day entry plan
Identify key stakeholders ED should meet with and organize meetings if appropriate
Facilitate board – ED social contracting – consensus on goals, roles and expectations (another useful point to have outside help with)
Support
Encourage ongoing support and communication – address Professional development
Evaluate –
Ensure there is a plan for regular feedback – performance, expectations. At least 90 days, 6 months, 1 year in first year
There are consultants who specialize in taking interim roles. Many have been executive Directors in the past. Many have been interim directors multiple times.
They have the space to “tell the truth” to the board. They will conduct an organizational assessment. They can be very helpful with addressing key organizational issues – clean up messes and set the new ED up for success. Allows new ED to come in and focus on the future.
Especially useful after a founder or a long term ED (7-10 + years) – to create some space – allow people to more naturally move through the phases of transition – to create some space and separation – so that the identity of the organization and/or culture of the organization is not so caught up in how the old ED did things.
Can facilitate conversations about former ED’s strengths and gaps – celebrate achievements, identify what parts of the legacy should be preserved – And start to do things differently – could identify hidden staff talents/potential
Often can provide a bridge to new ED _ and continue as mentor – to help with entry and successful launch
Slows things down – so that board and staff can think strategically and take the time to do a thorough search process.
May seem expensive – but many long term benefits
LAUNCH POLL
Launch poll
There are a variety of ways to get started with succession planning: emergency back up planning, departure-defined planning; Leadership development
The most basic is planning for an emergency –
Who will step in on a temporary basis if your leader is out suddenly. You should include both board and staff roles – and not just your CEO role – but your whole leadership team
First – the who
And then the how
Does the person stepping into the role know what to do – how can you do cross training? Documentation to enable a person to take over as seamlessly as possible
List all the executive’s key functions – major tasks
Your executive or someone on the leadership team knows when they are planning to leave in the next few years. Often this happens when they are planning to retire. This usually happens over multiple stages – and not all may be public – especially for a lengthy transition. It often starts with the leaders thinking about what is next for them. This can sometimes be challenges because the leader may give mixed messages and may not clear totally clear about their own intentions. Often leaders – especially those in the role for a long time – have mixed feelings about leaving.
A first step is to assess the organization’s readiness including the leader, board, and staff. This includes an organizational assessment. What is the organization’s current state and what does the organization need moving forward?
How financially healthy is the organization? Are there personnel issues that need to be dealt with?
You should create an emergency back up plan if the organization does not already have one. Then take the time to plan and decide when it is appropriate to move into executive transition management that described earlier. This is usually in the six -12 months time frame.
How can you build your bench strength in your organization – develop leadership through out the organization?
Have you defined what leadership competencies are needed for the roles on your leadership team? Define competencies and then assess who else on your staff has the competencies/could develop them
How could you do some cross training?
Is there room to move up in your organization?
Are you aligning staff with their strengths?
Supporting development of leadership skills – not just technical skills –
The 5 practices of exemplary leaders:
Model the way
Inspire a shared vision
Challenge the process
Enable others to act
Encourage the heart
Kouzes & Posner