What Do Current and Future
Leaders Need to Succeed?
Session 1




ArtsForward
Surviving and Thriving during Times of Change
Alene Valkanas
This program is made possible with support from
National Endowment for the Arts, American Express
Foundation and the New York State Council on the Arts, a
State Agency
2



Answers come from thousands of
dedicated workers
3




Our leaders are leaving their posts.
• Does the next generation want to lead?

• Are they prepared?

• Are the boards prepared to make good hires?

• What are the opportunities for retiring execs?
• Does the culture have to change to meet the needs
  of the new generation?
4




The Bridgespan Group – The Nonprofit
Sector’s Leadership Deficit
24,000 vacancies in 2009
Top barriers to finding suitable leaders:
  Compensation
  Difficulty finding executives with specialized skills
  Competition for same in-sector talent
  Lack of resources to find and cultivate new leaders
5




The most important attribute recruiters are
seeking

“Cultural fit” – shared passion for the mission



                 “Functional skills will get you on the short lists,
                 but only cultural fit can seal the deal.”
                                                 -Wayne Luke
                                                 Bridgespan Partner
6




Succession – Leadership for the 21st Century

    First Generation of arts nonprofits retiring
    Most learned on the job
    Only 5% of organizations have a succession plan
  in place
    Organizations lack staffing depth to develop
  leaders within
7




Do arts professionals like their jobs?
Job Satisfaction Findings
 Executive Directors—76%
 Emerging Leaders – 78%


     “This is a job I love, but I wouldn’t
          wish it on anyone else.”
                     - Executive Director
8




Focus Group Findings

• Emerging leaders are             • Racial barriers hamper
  dedicated to the arts              minority progress
• The starving artist is an idea   • Arts management degrees
  whose time has passed              carry both pros and cons
• Professional performance         • Professional development
  must command fair                  can be hard to come by
  compensation                     • Mentors are important but
• There’s no clear path to           rare
  moving forward in the arts       • Lack of exposure to board
• Structure encourages               hinders advancement
  turnover
9




What can we do?
•   Make leadership transition a more visible issue
•   Make information about succession readily available
•   Become an advocate for Professional Education
•   Create opportunities for person-to-person assistance
10



Focus Groups Recommendations
Current leaders must
Provide young artists with info about arts management careers
Reward the skills developed in arts management degree programs
Provide mid-career challenges and growth experience
Provide opportunities for professionals from the corporate
   sector to learn about arts management
Accept some attrition as inevitable & provide mechanisms for those
   who leave paid positions to stay connected
Create support systems for new leaders to help overcome the
   stress and isolation
Encourage mentoring and communication among all levels of the
field
11




Compasspoint – Daring to Lead
Massive Turnover – Boomer Retirement
 70% plan to leave in 5 years

5 Arts service organization leaders departed in last 5
 years
 Half of social service orgs. are still led by
 founders
 Leadership gap expands with smaller population
 of Millenials
12



Majority of executive directors will not do
it again!
Challenges of the Executive Director Job

Dissatisfied with Boards of Directors
Financial Management and Fundraising – least favorite
  aspects of job
73% say fundraising most desired partnership area
  with Board
Many admit to making significant financial sacrifices
13




Rewards of the Job
• Working for organizations that change lives of
  individuals and communities
• A level of autonomy
• Wide variety of tasks and responsibilities
• Opportunity to work in constructive partnerships
 I think we have a responsibility to dig deep in the community and engage
 people who are going to care as much about what we’re doing today as we
 care. Emerging leaders are living with this incredible naiveté about how this
 really works. We have to grab one and say you and I are going to be partners
 here. We’re having lunch at least once a month until you have arrived.”
                                                     -Executive Director
14




Compasspoint - Ready to Lead

  Follow up study to Daring to Lead
  Largest national study to date
  Profiles 6,000 emerging leaders across country

“Becoming an ED is one of my goals, but not yet.
 I would say probably five to ten years down the road.
 I think I still have a lot of training to go through. .. I think more than schooling,
I would say more hands-on…I need a lot of management experience.”
                                                                           -Emerging Leader
15




What did They Learn?
• One in three aspire to be an executive director
  someday
• A higher percentage among people of color
• Nonprofit Sector desirable place to work for social
  change
• Pipeline filled with highly educated and committed
  individuals
• Most feel they have meaningful and satisfying work
16




The Barriers
• Lack of Work/Life Balance
• Nonprofit salaries and lifelong earning potential
• Lack of mentorship and support form incumbent
  executive directors
• Inherent nonprofit structural limitation
• Prevailing executive director job description
  unappealing to next generation of leaders.
17


Recommendations to Current Executive
Directors, Next Generation Leaders,
Boards of Directors, and Funders

Current Executive Directors
• Replace dated power structures
• Help staff build strong external networks
• Be a mentor
• Be a good role model
• Pay reasonable salaries and provide benefits
• Engage in succession planning
• Recognize generational differences
18




Next Generation Leaders

Take control of your career
Develop broad management expertise
Join a board
Find a mentor
Work with a coach
Recognize and respect generational differences
19




Boards of Directors

• Pay reasonable salaries and provide benefits
• Ensure robust leadership beyond the executive
  director
• When hiring - get out of your cultural comfort zone
• Recruit young leaders to serve with you
20




Funders
• Support leadership and training programs
• Ask the question
• Don’t be part of the problem
21



The William and Flora Hewlett Foundation
    Involving Youth in the Arts Project Phase II – April 2009
            Focus Groups on Next Generation Leadership

Study Looked At
•   Millennials – born between 1980 and 2000
•   Generation Xers – born between l965 and 1980
•   Boomers – born between 1944 and 1965

         “There are profound and sharp differences in
         generational attitudes towards a wide range of issues of
         work within the nonprofit arts sector, based on differing experiences,
         customs, perspectives, priorities and thinking.”
                                       Barry Hessinius
22



What young people want from their jobs:
  Meaning
  Inclusion
  Life/Work Balance     “While a life in and around the arts may always
  Appreciation          attract talent, the lack of professional
                        development opportunities, of a support network,
  Learning              of constructive reviews on job performance, of
                        guidance on how to map out a career path and, all
  Career Path Options   too often, miscommunication between colleagues
                        of different generations (on top of the chronic
                        under compensation that permeates the
                        nonprofit sector) makes retaining such talent
                        extremely difficult.”
                                              ~Moy Eng, Program Director
                                               Hewlett Foundation
23




Specific Recommendations
1.    Create Sensitivity to the Challenge
2.    Improve Communications
3.    Provide Lots of Opportunities for Professional Development
4.    Delegate Real Decision Making Authority
5.    Modify the Organization’s Culture
6.    Increase the Opportunities for Junior Level Employees to Network
7.    Address the Issue of Advancement, Promotion and Career Path
8.    Help Identify Preferred Perks
9.    Provide Frequent Performance Reviews and Feedback
10.   Facilitate and Nurture Employee Creative Interests & Enterprises
11.   Consciously work at integrating “Fun” into the Workplace
12.   Bring Staff and Board Closer Together
13.   Include Line Item in Budget for Updating Organization’s Technology
24



The Ideal Executive Director
 (drawn from focus groups – IL Arts Alliance Succession: Arts Leadership for
the 21st Century)
   Honor the Mission
   Stay Strategic, Focus on the Big Picture
   Look Outward, Not Inward
   Be an Excellent Fund-Raiser
   Be Multi-dimensional
   Work Well With People
   Hold Up Under Pressure
   Be An Excellent Financial Manager
   Be Motivated by Intangible Rewards
   Be Ego-driven, But Only a Little
25



Message from         Forces for Good:
The Six Practices of High-Impact Nonprofits
What do nonprofit leaders need to do
to create impact that extends far beyond
what they could achieve alone?

•   Great nonprofit leaders share power
•   Let many leadership styles bloom
•   To relinquish control, hire a COO
•   Empower your executive team
•   Great leaders last
•   Develop a succession plan
•   Build a big and strategic board
•   Balance power
26




                          What do you need to
Follow up with            succeed?
Alene on the BLOG.
www.nysarts.typepad.com   Should the job of executive
                          director change? If so,
                          how?

                          How can arts organizations
                          best retain talented
                          professionals?

What Do Current And Future Arts Leaders Needsession1

  • 1.
    What Do Currentand Future Leaders Need to Succeed? Session 1 ArtsForward Surviving and Thriving during Times of Change Alene Valkanas This program is made possible with support from National Endowment for the Arts, American Express Foundation and the New York State Council on the Arts, a State Agency
  • 2.
    2 Answers come fromthousands of dedicated workers
  • 3.
    3 Our leaders areleaving their posts. • Does the next generation want to lead? • Are they prepared? • Are the boards prepared to make good hires? • What are the opportunities for retiring execs? • Does the culture have to change to meet the needs of the new generation?
  • 4.
    4 The Bridgespan Group– The Nonprofit Sector’s Leadership Deficit 24,000 vacancies in 2009 Top barriers to finding suitable leaders: Compensation Difficulty finding executives with specialized skills Competition for same in-sector talent Lack of resources to find and cultivate new leaders
  • 5.
    5 The most importantattribute recruiters are seeking “Cultural fit” – shared passion for the mission “Functional skills will get you on the short lists, but only cultural fit can seal the deal.” -Wayne Luke Bridgespan Partner
  • 6.
    6 Succession – Leadershipfor the 21st Century  First Generation of arts nonprofits retiring  Most learned on the job  Only 5% of organizations have a succession plan in place  Organizations lack staffing depth to develop leaders within
  • 7.
    7 Do arts professionalslike their jobs? Job Satisfaction Findings Executive Directors—76% Emerging Leaders – 78% “This is a job I love, but I wouldn’t wish it on anyone else.” - Executive Director
  • 8.
    8 Focus Group Findings •Emerging leaders are • Racial barriers hamper dedicated to the arts minority progress • The starving artist is an idea • Arts management degrees whose time has passed carry both pros and cons • Professional performance • Professional development must command fair can be hard to come by compensation • Mentors are important but • There’s no clear path to rare moving forward in the arts • Lack of exposure to board • Structure encourages hinders advancement turnover
  • 9.
    9 What can wedo? • Make leadership transition a more visible issue • Make information about succession readily available • Become an advocate for Professional Education • Create opportunities for person-to-person assistance
  • 10.
    10 Focus Groups Recommendations Currentleaders must Provide young artists with info about arts management careers Reward the skills developed in arts management degree programs Provide mid-career challenges and growth experience Provide opportunities for professionals from the corporate sector to learn about arts management Accept some attrition as inevitable & provide mechanisms for those who leave paid positions to stay connected Create support systems for new leaders to help overcome the stress and isolation Encourage mentoring and communication among all levels of the field
  • 11.
    11 Compasspoint – Daringto Lead Massive Turnover – Boomer Retirement 70% plan to leave in 5 years 5 Arts service organization leaders departed in last 5 years  Half of social service orgs. are still led by founders  Leadership gap expands with smaller population of Millenials
  • 12.
    12 Majority of executivedirectors will not do it again! Challenges of the Executive Director Job Dissatisfied with Boards of Directors Financial Management and Fundraising – least favorite aspects of job 73% say fundraising most desired partnership area with Board Many admit to making significant financial sacrifices
  • 13.
    13 Rewards of theJob • Working for organizations that change lives of individuals and communities • A level of autonomy • Wide variety of tasks and responsibilities • Opportunity to work in constructive partnerships I think we have a responsibility to dig deep in the community and engage people who are going to care as much about what we’re doing today as we care. Emerging leaders are living with this incredible naiveté about how this really works. We have to grab one and say you and I are going to be partners here. We’re having lunch at least once a month until you have arrived.” -Executive Director
  • 14.
    14 Compasspoint - Readyto Lead Follow up study to Daring to Lead Largest national study to date Profiles 6,000 emerging leaders across country “Becoming an ED is one of my goals, but not yet. I would say probably five to ten years down the road. I think I still have a lot of training to go through. .. I think more than schooling, I would say more hands-on…I need a lot of management experience.” -Emerging Leader
  • 15.
    15 What did TheyLearn? • One in three aspire to be an executive director someday • A higher percentage among people of color • Nonprofit Sector desirable place to work for social change • Pipeline filled with highly educated and committed individuals • Most feel they have meaningful and satisfying work
  • 16.
    16 The Barriers • Lackof Work/Life Balance • Nonprofit salaries and lifelong earning potential • Lack of mentorship and support form incumbent executive directors • Inherent nonprofit structural limitation • Prevailing executive director job description unappealing to next generation of leaders.
  • 17.
    17 Recommendations to CurrentExecutive Directors, Next Generation Leaders, Boards of Directors, and Funders Current Executive Directors • Replace dated power structures • Help staff build strong external networks • Be a mentor • Be a good role model • Pay reasonable salaries and provide benefits • Engage in succession planning • Recognize generational differences
  • 18.
    18 Next Generation Leaders Takecontrol of your career Develop broad management expertise Join a board Find a mentor Work with a coach Recognize and respect generational differences
  • 19.
    19 Boards of Directors •Pay reasonable salaries and provide benefits • Ensure robust leadership beyond the executive director • When hiring - get out of your cultural comfort zone • Recruit young leaders to serve with you
  • 20.
    20 Funders • Support leadershipand training programs • Ask the question • Don’t be part of the problem
  • 21.
    21 The William andFlora Hewlett Foundation Involving Youth in the Arts Project Phase II – April 2009 Focus Groups on Next Generation Leadership Study Looked At • Millennials – born between 1980 and 2000 • Generation Xers – born between l965 and 1980 • Boomers – born between 1944 and 1965 “There are profound and sharp differences in generational attitudes towards a wide range of issues of work within the nonprofit arts sector, based on differing experiences, customs, perspectives, priorities and thinking.” Barry Hessinius
  • 22.
    22 What young peoplewant from their jobs: Meaning Inclusion Life/Work Balance “While a life in and around the arts may always Appreciation attract talent, the lack of professional development opportunities, of a support network, Learning of constructive reviews on job performance, of guidance on how to map out a career path and, all Career Path Options too often, miscommunication between colleagues of different generations (on top of the chronic under compensation that permeates the nonprofit sector) makes retaining such talent extremely difficult.” ~Moy Eng, Program Director Hewlett Foundation
  • 23.
    23 Specific Recommendations 1. Create Sensitivity to the Challenge 2. Improve Communications 3. Provide Lots of Opportunities for Professional Development 4. Delegate Real Decision Making Authority 5. Modify the Organization’s Culture 6. Increase the Opportunities for Junior Level Employees to Network 7. Address the Issue of Advancement, Promotion and Career Path 8. Help Identify Preferred Perks 9. Provide Frequent Performance Reviews and Feedback 10. Facilitate and Nurture Employee Creative Interests & Enterprises 11. Consciously work at integrating “Fun” into the Workplace 12. Bring Staff and Board Closer Together 13. Include Line Item in Budget for Updating Organization’s Technology
  • 24.
    24 The Ideal ExecutiveDirector (drawn from focus groups – IL Arts Alliance Succession: Arts Leadership for the 21st Century) Honor the Mission Stay Strategic, Focus on the Big Picture Look Outward, Not Inward Be an Excellent Fund-Raiser Be Multi-dimensional Work Well With People Hold Up Under Pressure Be An Excellent Financial Manager Be Motivated by Intangible Rewards Be Ego-driven, But Only a Little
  • 25.
    25 Message from Forces for Good: The Six Practices of High-Impact Nonprofits What do nonprofit leaders need to do to create impact that extends far beyond what they could achieve alone? • Great nonprofit leaders share power • Let many leadership styles bloom • To relinquish control, hire a COO • Empower your executive team • Great leaders last • Develop a succession plan • Build a big and strategic board • Balance power
  • 26.
    26 What do you need to Follow up with succeed? Alene on the BLOG. www.nysarts.typepad.com Should the job of executive director change? If so, how? How can arts organizations best retain talented professionals?