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Non Profit Leadership Transitions By Principals In Philanthropy And Trujillo Group, Inc.
Trends to consider in nonprofit leadership transitions Overview of the needAccording 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 2
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 3
Trends to consider in nonprofit leadership transitions Drivers of the needOn 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 4
Trends to consider in nonprofit leadership transitions Drivers of the needOn 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 5
Trends to consider in nonprofit leadership transitions Drivers of the needProposed 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) 6
Transition Scenarios & Challenges • Insufficient level of salary for expertise needed Start Up • Role clarification • Reenergizing demoralized staff & stakeholders Turn Around • Restoring reputation, improving accountability • Rebuilding systems, restoring service delivery • Lack of recognition that organization has Realignment “peaked” • Strategy, systems & culture behind the times • Finding a way to build on success Sustain Success • Creating your own leadership profile • Living with someone else’s team • Intertwined identities and relationshipsFounder & Long-term ED • Departure circumstances/timing • Former executive’s “power shadow” Executive Transition Management, CompassPoint Nonprofit Services, 2005 7
Influencing FactorsOrganization health & life cycleOrganization sizeOrganization mission & cultureDiversity considerationsDeparting executive’s role legacy & shadowCircumstances of the departure Executive Transition Management, CompassPoint Nonprofit Services, 2005 8
Growth Curve Renewal Leadership Transition Complexity ChaosGrowth ConfusionConsistencyControlClarity Decline Management Entrepreneurial - Adapted from Changing the Game by Larry Wilson and Grow or Die by George Ainsworth-Lead 9
Managing Transition Coming to Terms with Change The New Beginning: Commitment, Rebirth, New Energy, New Sense of Purpose The Neutral Zone: Confusion, Direction Finding, Re-patterningThe Ending:Loss, Letting Go . . .Relinquishing Old Way, OldIdentity Source: William Bridges 10
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 - Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 11
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 - Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 12
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 - Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 13
Executive Transition Management Process Overview PREPARE PIVOT THRIVE Search & Select Initial Plan Search Launch &Consultation & Transition Support Wrap Up Clarify Transition Leadership Stabilize Situation Prepare Organization (if needed) Executive Transition Management, CompassPoint Nonprofit Services, 2005 14
Comparison Chart Executive Transition Management Executive Search Process•Assess agency’s leadership needs (interim or •Meet with key leadership to determine newacting position), determine transition hire qualities, qualifications, compensation,timeline, address agency stabilization issues. and timeline.•Assure good ending for departing executive.•Set up Search Committee; agree on process •Set up Search Committee; agree on processsteps, who involved, how decision made. steps, who involved, how decision made.•Conduct agency assessment, initiate/review •Research compensation, advise client.strategic plan. Discuss compensation,research comparables.•Identify new executive attributes, prepare •Identify new executive attributes, preparejob description, advertise, network, screen job description, advertise, network, screencandidates, conduct/phone screen initial candidates, conduct/phone screen initialinterviews. interviews.•Present list of candidates; do reference •Present list of candidates; do referencechecks. checks.•Develop entry plan for new executive.•Manage close out of search process. •Manage close out of search process. 15
Organizational Assessment Capacity Tool Clear need to Basic level of Moderate level High level of increase capacity capacity in place of capacity capacity in placeMission, Vision,Strategy, PlanningProgram Design,EvaluationHuman ResourcesSenior ManagementTeam LeadershipInformationTechnologyFinancialManagementFund DevelopmentBoard LeadershipLegal AffairsMarketing, ExternalCommunication https://sp.socialventurepartners.org/Document%20Library/Forms/SVP%20Investee%20Capacity%20Tool.aspx. 16
Board Leadership •“Stepping up to the plate.” •“Reversing roles with the executive.” Board LeadershipDeparting ED Board Incoming ED Executive Transition Management, CompassPoint Nonprofit Services, 2005 19
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