Non Profit Leadership Transitions By Principals In Philanthropy And Trujillo Group, Inc.
May 25, 2015
Non Profit Leadership Transitions
By Principals In Philanthropy And Trujillo Group, Inc.
Trends to consider in nonprofit leadership transitions
Overview of the need
According to various experts, nonprofits across the country, to keep pace between now and 2016 will need to:
• Recruit new senior managers (executive directors and direct reports) in numbers ranging from 640,000 to 1,250,000 – an minimum increase of 140% of the current population of nonprofit executives ( Bridgespan Group study)
• Anticipate wider and deeper turnover of staff beyond current measurements with significant numbers of leaders leaving nonprofit management altogether ( Meyer Foundation and Compasspoint Nonprofit Services – “Daring to Lead, 2006”)
• Accelerate the response to the trend in turnover of leadership
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Trends to consider in nonprofit leadership transitions
Drivers of the needOn the increase:
• Numbers of nonprofit organizations. Larger organizations, requiring more executives, are being established faster than smaller ones. (Bridgespan Group study)
• Transfer of wealth and the rise of baby boomer giving (Center on Wealth and Philanthropy at Boston College)
• Baby boomer retirement
• Exodus of professionals from the nonprofit and government sectors
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Trends to consider in nonprofit leadership transitions
Drivers of the need
On the increase:
• Greater dependence of the public sector on the private sector
• Higher accountability from constituencies requiring higher levels of professionalism
• Prevalence of flat, understaffed organizations lacking infrastructure for grooming and succession
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Trends to consider in nonprofit leadership transitions
Drivers of the need
On the decrease or lagging:
• Pipelines of younger professionals to feed the supply
• Depth and experience at Board level to provide coverage for quasi-staff functions
• Seasoned board leadership understanding the need for investment in talent infrastructure, recruitment, human resources management
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Trends to consider in nonprofit leadership transitions
Drivers of the need
Proposed remedies:
• Investment in capacity building from the donor community
• Prioritization of performance reviews, mentoring, training, succession planning, recruiting, and talent development by Board and staff
• Evaluation of management compensation and competitiveness in the labor market
• Exploration of new talent pools (career-changers, ladders for younger professionals, boomers who are anti-retirement, veterans, mothers returning to the workforce, etc.)
• Creative work and leadership arrangements ( job-sharing, career path development, targeted volunteer service v. membership on the Board)
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Transition Scenarios & Challenges
• Insufficient level of salary for expertise needed
• Role clarification
• Reenergizing demoralized staff & stakeholders
• Restoring reputation, improving accountability
• Rebuilding systems, restoring service delivery
• Lack of recognition that organization has “peaked”
• Strategy, systems & culture behind the times
• Finding a way to build on success• Creating your own leadership profile• Living with someone else’s team
• Intertwined identities and relationships• Departure circumstances/timing• Former executive’s “power shadow”
Start Up
Turn Around
Realignment
Sustain Success
Founder & Long-term ED
7Executive Transition Management, CompassPoint Nonprofit Services, 2005
Influencing Factors
Organization health & life cycle
Organization size
Organization mission & culture
Diversity considerations
Departing executive’s role legacy & shadow
Circumstances of the departure
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Executive Transition Management, CompassPoint Nonprofit Services,
2005
Growth Curve
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LeadershipRenewal
Transition Complexity Chaos ConfusionGrowth
Consistency Control Clarity
ManagementEntrepreneurial
Decline
Transition
- Adapted from Changing the Game by Larry Wilson and Grow or Die by George Ainsworth-Lead
GROWTH
Managing TransitionComing to Terms with Change
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The New Beginning: Commitment, Rebirth, New Energy, New Sense of Purpose
The Neutral Zone: Confusion, Direction Finding, Re-patterning
The Ending: Loss, Letting Go . . . Relinquishing Old Way, Old Identity Source: William
Bridges
Checklist for Key Interventions
• Phase One – The Ending– Consider using external professional to guide
transition– Create a good ending with departing executive– Define post-departure role for departing
executive with staff and board members– Helping the departing executive focus on new
beginnings, next venture– Determine role of departing executive– Letting go of old ways, dealing with loss,
acknowledge contribution
11- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005
Checklist for Key Interventions
• Phase Two – Neutral Zone– Conduct agency assessment– Create Board development plan – Develop and executive an interim
management plan– Prepare for executive recruitment;
engage staff and board in developing transition plan
– Conduct search– Communicate profusely with all key
stakeholders – staff, funders, volunteers, clients 12- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005
Checklist for Key Interventions
• Phase Three – New Beginning with New Executive– Orientation & welcome ceremonies– Create executive entry plan– Celebrate successful transition; acknowledge
accomplishments– Develop strategies to address issues identified in
agency assessment– Connect with stakeholders– Engage previous or interim executive as
appropriate– Work with Board to recruit fresh Board members
13- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005
Executive Transition ManagementProcess Overview
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PREPARE PIVOT THRIVE
Initial Consultation
Clarify Transition
Leadership
Stabilize Situation (if needed)
Plan Search & Transition
Prepare Organization
Search & Select
Launch & Support Wrap Up
Executive Transition Management, CompassPoint Nonprofit Services, 2005
Comparison ChartExecutive Transition
ManagementExecutive Search Process
•Assess agency’s leadership needs (interim or acting position), determine transition timeline, address agency stabilization issues.
•Meet with key leadership to determine new hire qualities, qualifications, compensation, and timeline.
•Assure good ending for departing executive.
•Set up Search Committee; agree on process steps, who involved, how decision made.
•Set up Search Committee; agree on process steps, who involved, how decision made.
•Conduct agency assessment, initiate/review strategic plan. Discuss compensation, research comparables.
•Research compensation, advise client.
•Identify new executive attributes, prepare job description, advertise, network, screen candidates, conduct/phone screen initial interviews.
•Identify new executive attributes, prepare job description, advertise, network, screen candidates, conduct/phone screen initial interviews.
•Present list of candidates; do reference checks.
•Present list of candidates; do reference checks.
•Develop entry plan for new executive.
•Manage close out of search process. •Manage close out of search process.
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Organizational Assessment Capacity Tool
Clear need to increase capacity
Basic level of capacity in place
Moderate level of capacity
High level of capacity in place
Mission, Vision, Strategy, Planning
Program Design,Evaluation
Human Resources
Senior Management Team Leadership
Information Technology
Financial Management
Fund Development
Board Leadership
Legal Affairs
Marketing, External Communication
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Capac
ity
Elem
ents
https://sp.socialventurepartners.org/Document%20Library/Forms/SVP%20Investee%20Capacity%20Tool.aspx.
Executive Director Entry PlanAgreement between Board and new executive
Plan for 90 days to 180 days
Board support offered to the Director in the first 90 days:The Board Will . . .· Training· Coaching· Regular communication plan· Peer networking
Expectations for the Director in the first 90 days:The Director Will . . . • Staff leadership• Member relations• Board development• Grant management/fundraising
17Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
Executive Director Entry PlanAgreement between Board and new executive
Plan for 90 days to 180 days
Board meetings – how will work together?• How is agenda set for monthly Board meetings?• What does the executive contribute to the meeting?• Who handles the logistics for Board meetings – Room, Food, Copies?• Who decides what is in the Board packet?• Who attends the Board committee meetings?• Who is responsible for meeting minutes?
Tasks to be completed in first 6 months• Complete strategic planning; set or review agency goals• Identify supports for new executive: professional development, executive coaching, mentoring, training
18Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
Board Leadership• “Stepping up to the plate.”
• “Reversing roles with the executive.”
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Board Leadership
Departing ED Board Incoming ED
Executive Transition Management, CompassPoint Nonprofit Services, 2005
Values and Principles – Rules for the Road
1. Assessment is best done when executive is departing or has departed.
2. Interview a wide range of constituents and stakeholders during an assessment.
3. Budget and prepare for technical assistance and/or interim management.
4. Avoid putting former executive on the Board.
20Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
Values and Principles – Rules for the Road
5. Avoid having Board members apply for the executive position.
6. Regard succession planning as a necessity.7. Consider entry plan which guides and
supports executive. 8. Be sensitive to undue influence from former
staff leaders, employees and former Board members.
9. Build in mechanisms for rotation and growth in Board – nominating committees, term limits, Board self-evaluations, etc.
21Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
Bibliography
Websites• Bonfils Stanton Foundation www.bonfils-stanton.org• Bridgespan Group www.bridgespangroup.org• Annie E. Casey Foundation http://www.aecf.org• Center on Wealth and Philanthropy – Boston College
http://www.bc.edu/research/cwp • Compasspoint Nonprofit Services http://compasspoint.org • Grantcraft http://www.grantcraft.org• Meyer Foundation www.meyerfoundation.org • Transition Guides http://www.transitionguides.com
Articles• Stevenson, Molly Cannon.2006. “Safeguarding Organizational Capacity.”Cause
Planet. no. 11(July 28,2006), http://www.causeplanet.org/articles/article.php?id=11
• Stevenson, Molly Cannon. 2007. “Transition Planning and Management Capacity.” Cause Planet.no.60 ( March 2,2007) , http://www.causeplanet.org/articles/article.php?id=60
• Tierney, Thomas. 2006 “The Leadership Deficit”. Stanford Social Innovation Review. (Summer, 2006), http://www.ssireview.org/articles/entry/the_leadership_deficit
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Presenters
Molly Cannon Stevenson, CFRE, CAHP Judy Hudson-Trujillo,Principals In Philanthropy Trujillo Group, [email protected]
[email protected]. 303-290-0213 ph. 720-333-1540
www.TrujilloGroup.net
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