Non Profit Leadership Non Profit Leadership TransitionsTransitions

By Principals In Philanthropy By Principals In Philanthropy

And Trujillo Group, Inc.And Trujillo Group, Inc.

Trends to consider in nonprofit Trends to consider in nonprofit leadership transitionsleadership transitions

Overview of the needOverview 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

2

Trends to consider in nonprofit Trends to consider in nonprofit leadership transitionsleadership transitions

Drivers of the needDrivers 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 Trends to consider in nonprofit leadership transitionsleadership transitions

Drivers of the needDrivers 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

4

Trends to consider in nonprofit Trends to consider in nonprofit leadership transitionsleadership transitions

Drivers of the needDrivers 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

5

Trends to consider in nonprofit Trends to consider in nonprofit leadership transitionsleadership transitions

Drivers of the needDrivers 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) 6

Transition Scenarios & Transition Scenarios & ChallengesChallenges

• 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 FactorsInfluencing Factors

Organization health & life cycle

Organization size

Organization mission & culture

Diversity considerations

Departing executive’s role legacy & shadow

Circumstances of the departure

8

Executive Transition Management, CompassPoint Nonprofit Services,

2005

Growth CurveGrowth Curve

9

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 TransitionManaging TransitionComing to Terms with ChangeComing to Terms with Change

10

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 Checklist for Key InterventionsInterventions

• 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 Checklist for Key InterventionsInterventions

• 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 Checklist for Key InterventionsInterventions

• 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 Executive Transition ManagementManagementProcess OverviewProcess Overview

14

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 ChartComparison 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.

15

Organizational Assessment Capacity Organizational Assessment Capacity ToolTool

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

16

Capac

ity

Capac

ity

Elem

ents

Elem

ents

https://sp.socialventurepartners.org/Document%20Library/Forms/SVP%20Investee%20Capacity%20Tool.aspx. 

Executive Director Entry PlanExecutive Director Entry PlanAgreement between Board and new executiveAgreement between Board and new executive

Plan for 90 days to 180 days 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 PlanExecutive Director Entry PlanAgreement between Board and new executive Agreement between Board and new executive

Plan for 90 days to 180 daysPlan 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 LeadershipBoard Leadership

•“Stepping up to the plate.”

•“Reversing roles with the executive.”

19

Board Leadership

Departing ED Board Incoming ED

Executive Transition Management, CompassPoint Nonprofit Services, 2005

Values and Principles – Rules for the Values and Principles – Rules for the RoadRoad

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 Values and Principles – Rules for the RoadRoad

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.

BibliographyBibliography

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 22

PresentersPresenters

Molly Cannon Stevenson, CFRE, CAHP Judy Hudson-Trujillo,Principals In Philanthropy Trujillo Group, inc.MStevensPIP@aol.com

Judy@TrujilloGroup.netPh. 303-290-0213 ph. 720-333-1540

www.TrujilloGroup.net

23