9 Keys To Effective Nonprofit Executive Director Succession

by William J. Moran, J.D., MS.Ed.

Do you have a CEO who is planning to retire in a year or two?  Well, a lot are.

76,000,000 baby boomers have or are now planning to retire over the next decade. We are in the midst of a leadership “changing of the guard!”

Having an effective Executive Director is perhaps the greatest indicator for nonprofit success.

Here are nine keys to effective Succession Planning:

1.   Have a strong board.  The Board will make the decision on the new hire.  If the Board is strong and functioning well…the CEO hire is likely to be strong.

2.  Consider hiring an interim Executive Director to lead the organization for a transition period of 6-12 months.  An interim Executive Director can be of value:

• If the retiring Executive Director is a “Founder” or has been the “face” of the organization for many years.  Providing “space” between such a person’s departure and a new hire will help the nonprofit through a necessary adjustment time.  (This can be compared to a grieving period after a serious loss.  The organization needs time to adapt to a new reality without that key person.) Without allowing this “space,” the new Executive Director may be a “short timer.”
• If the organization is confronted with difficult decisions that will be resisted by some stakeholders (ex., downsizing, unpleasant staff terminations, merger etc.),  an interim can lead the Board through difficult decisions without worrying about alienating supporters.  The new executive director will come in with a “clean slate”.

3.   Have a current strategic plan in place to guide the nonprofit for the next 3-5 years.  If no current plan exists, have the board go through a SWOT process (Strengths – Weaknesses – Opportunities – Threats) to anticipate the nonprofit’s needs.

4.   Reviewing the strategic plan, have the Board agree on the attributes of the person who can lead them toward the stated goals.  Put these attributes into writing.  This will be the basis for the position description.

5.   Assign the best board leadership to serve on the Search Committee.

6.   Have a robust search process.  Do not passively post the position and wait for candidates to show up.  Actively go out into the community and “recruit” excellent individuals who are not actively looking to change positions.

7.   Stay away from hiring “the strongest in a weak field.” Have multiple solid candidates to choose from.

8.   Have someone active in the search who is a shrewd evaluator of nonprofit talent.

9.   If possible, have someone active in the search with the connections to confirm the candidates’ background and productivity.

Leadership succession obviously is a critical time for a nonprofit. Losing a key leader is a loss. Yet it is also an opportunity. New leadership can refresh the organization. New plans are made and new directions are taken. Succession done well will result in a reinvigorated organization and mission well-positioned for future success.

Bill Moran, The Moran Company, specializes in nonprofit executive searches for fundraising staff and executive directors.

© 2012 The Moran Company, “We find great nonprofit executives”