Lay the groundwork for leadership succession
With so
many pressing governance and funding issues, succession planning
is not always high on the agenda of not-for-profit boards - that is,
unless there's a looming vacancy in the executive director post.
But
even when you don't anticipate an opening, it's important for your
board to plan. Based on the odds alone, boards are likely to be faced
with the need to tap a new leader because turnover is high in the
executive director ranks. According to national and local surveys,
the average tenure is about three years.
Selecting a new leader is
one of the most critical decisions boards are asked to make and it's
too important to fail to plan for.
Being prepared
Boards should always
be ready to launch an organized executive search. Prepare by
determining in advance which board members are qualified and willing
to screen candidates. Also, ascertain whether an ad hoc transition
committee or a permanent committee will lead the search.
Another consideration
is whether you'll need assistance from an executive search
firm or board consultant. If so, do you already have a relationship
with someone who can help you?
Even if the performance of the current
executive has been exemplary, a not-for-profit may be growing
in new directions and need different skills. For instance, you might
want someone who brings stronger managerial skills or better conveys
your organization's mission. Staff members, funders, clients and
others who interact with your not-for-profit can offer valuable insights
about your leadership needs.
Creating an
emergency plan
Another solid practice is to have an emergency plan
that allows your board to respond quickly to unplanned leadership
transitions so that operations aren't negatively affected. An emergency
plan defines the executive's key responsibilities and proposes how
the organization will temporarily reassign his or her duties.
This
process might highlight the need for current staff members to undergo
additional training if they'll take over certain tasks. Or, if the
board has already determined that existing staff lack the time or
expertise to assume new responsibilities, an experienced interim director
can be brought in to maintain operations until your organization finds
a permanent replacement.
Selecting a new leader
The regular succession
plan expands on emergency backup procedures by outlining your
organization's leadership needs in the context of its long-term strategy.
For instance, if the five-year plan involves expanding your geographic
reach or forming alliances, you would probably want a leader with
experience in these areas.
By integrating strategic goals into the succession plan
and into the executive director's job description and annual performance
evaluation, the focus remains on the specific actions that both current
and future executives must perform to further the strategic plan.
Identifying
possible successors
Not-for-profit groups don't always have the depth
of in-house talent that their for-profit counterparts do, making
the need for ongoing succession planning even more important.
To
identify possible successors, start by considering whether you have
capable candidates within your organization, perhaps an associate
director or program director. As you identify potential leaders, determine
if they need additional development experiences and help them find
ways to attain them. You might increase their involvement in strategy
discussions, for example, or have them lead initiatives that increase
their visibility and build their interpersonal skills. Grooming
existing staff for leadership positions also helps to motivate and
retain them.
Although there are benefits to hiring internally, sometimes
you need a fresh start. Executive directors are often recruited from
outside organizations. Through networking and industry events, board
members can keep tabs on talented individuals at other organizations
whom they can approach when an opening arises.
Making the transition
By laying the groundwork for succession well in
advance of the need, boards can effortlessly guide their organizations
through these periods of opportunity and challenge.
Giving businesses reasons to give
Like many not-for-profits,
your organization would probably like to strengthen relationships
with existing business supporters and forge new ones. Although
increasing corporate commitment is similar in many ways to
seeking support from individual donors, a critical difference
is that companies typically need emotional and strategic reasons
to give. Here's how you can make your appeal successful on both
counts:
Draw parallels. Because businesses look for opportunities
that are a natural fit, target those that share your organization's
goals, values and service areas. For instance, the toy company
Hasbro Inc. focuses its philanthropy on children's causes.
A company may also be receptive if key executives have personal
interests or first-hand experiences relating to your organization's
mission.
Seek out corporate forums to showcase your
mission. Many companies invite not-for-profits to participate in informational
fairs held at work sites. This often leads to pledges of
monetary or volunteer support from employees. Some companies
even match a percentage of their workers' charitable contributions.
Don't just ask, sell. Corporate givers frequently cite a not-for-profit's
ability to express a clear, compelling mission as a decisive
factor in making donations. Businesses also want to align
themselves with organizations that have good fundamentals. Among
the things they want to know: Is an organization self-sustaining?
What kind of outcomes does it achieve? How much is actually spent
on programs?
Underscore the benefits. Although companies are
savvy about the PR value of their giving, it's still important
to explain how their donations will help your organization
and what benefits they'll receive.
Finally, emphasize that contributions
are investments and the work that is done in the community
is the return on the investments. These two concepts always
resonate with corporate givers. |
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