GuideStar Webinar (12/11/13) - Filling the Gap When You Have a Vacant Leadership Position

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In reaction to the culture shift of turnover and gaps in leadership, many nonprofits -- large and small -- are using consultants as short- and long-term solutions.

We invite you to join us for an interactive session as top thinkers in nonprofit management and philanthropy offer techniques and anecdotes for getting through these tumultuous times. Some of the topics that will be addressed include: determining if outsourcing your leadership on a short- or long-term basis is a good fit; assessing the current state of the outgoing leader's responsibilities and reallocating resources to keep moving towards the fundraising goals and mission objectives; and relationship management of your board and donors during transitions.

Presenters: Stephen K. Orr, Managing Partner, Orr Associates, Inc; Emma Kieran, Vice President, Fundraising and Development, Orr Associates, Inc; and Jenny Taylor, Marketing Specialist, GuideStar USA (moderator)

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GuideStar Webinar (12/11/13) - Filling the Gap When You Have a Vacant Leadership Position

  1. 1. Filling the Gap When You Have a Vacant Leadership Position December 11, 2013 Stephen K. Orr, Managing Partner Emma G. Kieran, Vice President, Fundraising and Development w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 1
  2. 2. Introductions Steve Orr Managing Partner and Co-Founder, Orr Associates, Inc. (OAI) Founder and Executive Director, Youth, I.N.C. Emma Kieran Vice President, Fundraising and Development, Orr Associates, Inc. (OAI) w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 2
  3. 3. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 3
  4. 4. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 4
  5. 5. The Facts: EDs • Concerns: – Turnover is imminent: • 1 in 6 EDs are 60 years old+ • 33% of EDs reported being somewhat or very burned out (rates are even higher for those facing high recession anxiety (52%) SOURCES: Nonprofit Compensation & Benefits Survey, The Nonprofit Resource Center, www.cfsarasota.org/portals/0/nrc/2008nonprofitcompensationreport.pdf Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 5
  6. 6. The Facts: EDs • Concerns: – Succession: NPOs with a documented succession plan EDs that were very confident their board could hire the right successor 17% 33% SOURCE: Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/ w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 6
  7. 7. The Facts: EDs Time it takes to fill ED positions • Concerns: – Hiring: 43% 36% 21% 0% Less than 1-3 months3-6 months More than 1 month 6 months SOURCES: Nonprofit Compensation & Benefits Survey, The Nonprofit Resource Center, www.cfsarasota.org/portals/0/nrc/2008nonprofitcompensationreport.pdf Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/ w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 7
  8. 8. The Facts: CDOs • 51% of CDOs anticipate leaving the organization within 2 years. • 19% of CDOs at these organizations anticipate leaving the field entirely within 2 years. • 50% of EDs were unsatisfied with the quality of candidates in their last CDO search • 25% of EDs fired their last CDO • Only 36% of EDs are very satisfied with the performance of their CDO • Boards are sufficiently engaged in asking for gifts in only 22% of these organizations • EDs “l • Ov • e asking” in only 44% of organizations SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped. w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 8
  9. 9. The Facts: CDOs • For organizations with budgets of $1 to $5 million the average vacancy rate to fill a Chief Development Officer position is 10 months. • 51% of the CDOs at these organizations anticipate leaving the organization within 2 years. • 19% of CDOs at these organizations anticipate leaving the field entirely within 2 years. • 50% of EDs were unsatisfied with the quality of candidates in their last CDO search • 25% of EDs fired their last CDO • Only 36% of EDs are very satisfied with the performance of their CDO • Boards are sufficiently engaged in asking for gifts in only 22% of these organizations • EDs “lov • e asking” in only 44% of organizations SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped. w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 9
  10. 10. The Facts: CDOs SOURCE: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped. w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 10
  11. 11. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 11
  12. 12. Your Situation, Your Options What is your situation? What are your options? What will happen to my donor/board relationships? ED/CDO resigns, gives his/her two-weeks notice Existing staff serves in role Hire Outsource (long term or short term) Relationships are held by an insider temporarily, gap in transfer Relationships are held by a new insider, gap in transfer Relationships are held by an outsider, no gap in transfer w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 12
  13. 13. Your Options: Existing Staff Serves in Role Pros • No immediate cost • Existing organizational knowledge Cons • Loss to their job function • Gap in fundraising, leadership • Ramp-up period w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 13
  14. 14. Existing Staff: First Steps • Maintain donor relationships • Work towards existing goals • Create a strategic plan of action for fundraising, including: – Clear reporting structure – Designated task owners – Regular meetings to ensure deadlines are met – Focus on fundraising tasks with highest ROI w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 14
  15. 15. Your Situation, Your Options What is your situation? What are your options? What will happen to my donor/board relationships? ED/CDO resigns, gives his/her two-weeks notice Existing staff serves in role Hire Outsource (long term or short term) Relationships are held by an insider temporarily, gap in transfer Relationships are held by a new insider, gap in transfer Relationships are held by an outsider, no gap in transfer w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 15
  16. 16. Hire External Staff Pros • Fully embedded solution • Determine exact skills required for success • Vetted by staff leaders Cons • Lengthy hiring process • Recruiter fees • Opportunity costs SOURCES: Underdeveloped: A National Study of Challenges Facing Nonprofit Fundraising, Compass Point, http://www.compasspoint.org/underdeveloped. Daring to Lead 2011, CompassPoint and the Meyer Foundation, http://daringtolead.org/ w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 16
  17. 17. Hiring External Staff: First Steps • Appoint transition team and search committee – Develop strong communication plan – Redesign comprehensive job description – Set up processes for decision making – Always check references • Create plan for closure • Confirm plan for moving forward towards goals • Develop robust onboarding plans w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 17
  18. 18. Your Situation, Your Options What is your situation? What are your options? What will happen to my donor/board relationships? ED/CDO resigns, gives his/her two-weeks notice Existing staff serves in role Hire Outsource (long term or short term) Relationships are held by an insider temporarily, gap in transfer Relationships are held by a new insider, gap in transfer Relationships are held by an outsider, no gap in transfer w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 18
  19. 19. Outsourcing: Long or Short Term Pros Cons • Keep momentum • Maintain focus • Accomplish fundraising objectives • Keep donors connected • Bring in new fundraising techniques and expertise • Single person or team approach • Create stability for new CDO • Ramp-up period • Need to learn about the organization and mission • Develop rapport with team • Time still required for leadership involvement • Cost w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 19
  20. 20. Outsourcing: Is it Right for You? • Will it take more than a few months to fill the position? • Will completing a strategic review, restructuring, or project before hiring new staff make sense? • Do you need assistance with the hiring process? w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 20
  21. 21. Outsourcing: Benefits • Chronicle of Philanthropy endorsed • Nonprofits -- large and small -- are using consultants as shortterm interim fundraising leadership solutions • Efforts keep fundraising on track • Allows nonprofit to address longer term leadership and strategy issues during staffing transitions SOURCE “Temporary Fundraisers Can Ease the Strain of Rampant Turnover,“ The Chronicle of Philanthropy, May 2013. w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 21
  22. 22. Case Study (Short Term Outsourcing): American Red Cross – Northern New Jersey Region • Challenge: – Significant changes in strategic direction – Superstorm Sandy shifted fundraising and staffing priorities • Actions: – Strategies for individual, foundation, corporate fundraising – Proper gift levels for each prospect and cultivation/solicitation plans – Recommendations for maximizing staff efficiencies; improving internal operations; and expanding fundraising capacity – On-site support three days/week w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 22
  23. 23. Case Study (Short Term Outsourcing): American Red Cross – Northern New Jersey Region • Results – Organized and focused the regional team – Opened lines of communication with National Headquarters – Improved donor relationship activities – A long-term stewardship plan for the scores of new donors who contributed to the disaster recovery “Emma (Kieran) came in, ran the department, and kept it steady until they found me. Rather than me starting over, Emma was the glue that helped the department going.” - New CDO w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 23
  24. 24. Case Study (Long Term Outsourcing): Youth, I.N.C. • Actions: – For more than 20 years, Steve Orr has played a large role in the initial development of the organization – Brought in OAI to manage the back-office financial, administrative, and human resources functions – Brought in OAI to co-manage the front-office fundraising, event/gala management, strategic planning, and board management functions • Results – Youth, I.N.C. provides more than $45 million of support to nearly 600,000 children and youth through partnerships with more than 100 youth programs w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 24
  25. 25. Case Study (Long Term Outsourcing): Youth, I.N.C. • Results – Youth, I.N.C. provides more than $45 million of support to nearly 600,000 children and youth through partnerships with more than 100 youth programs “OAI has helped Youth I.N.C. to run soundly and efficiently, better enabling us to achieve our mission and vision. As a result of OAI's outstanding nonprofit management services that have greatly benefited our organization.” - Board of Directors, Youth, I.N.C. w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 25
  26. 26. Outsourcing: First Steps • Assess the fundraising team to set them up for fundraising success – Team's strengths – Fundraising plan – Opportunities – Challenges • Develop a focused plan • Develop relationships with the board and staff w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 26
  27. 27. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 27
  28. 28. Maximizing Current Staff Before They Depart • Assess the current state of the organization with outgoing ED/CDO • Set up a transition plan • Meet with staff collectively • Develop a 6-month action plan • Transition donor relationships w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 28
  29. 29. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 29
  30. 30. Relationship Management During Transitions • Be honest • Be transparent • Share transition plans with leadership • Reassure donors – Importance to organization – Value as contributors • Appoint donor relationship leaders (permanent or interim) • Introduce donors to new leadership w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 30
  31. 31. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 31
  32. 32. Being Prepared • Create succession plan • Develop transition plan • Implement annual performance review • Encourage ongoing board involvement • Utilize annual staff retreat • Groom a successor w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 32
  33. 33. Agenda • Trends in ED/CDO turnover • Your Situation, Your Options • Maximizing Current Staff Before They Depart • Relationship Management During Transitions • Being Prepared • Conclusion w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 33
  34. 34. Top 5 Takeaways 1. You have options – consider them all 2. Don’t be discouraged – take the time to find the right solution 3. Be prepared, even when you don’t think you need to be 4. Maximize your current staff 5. Donor relationship management is key w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 34
  35. 35. Q&A Thank you! Steve Orr sorr@oai-usa.com (212) 424-1915 Emma Kieran ekieran@oai-usa.com (212) 424-1910 x3 w ww.oai-usa.com Copyright © 2013 Orr Associates, Inc. All Rights Reserved. 35

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