A big thank you to Peer Reviewer and Executive Director of Champions for Children, Inc. Amy Haile for this guest post!

Few nonprofit organizations are prepared for the transition of executive leadership that is coming and the impact it will have on their mission. 

Every time a nonprofit has a transition at the CEO level, this shift in leadership impacts the organization’s financial stability, strategic direction, and employee engagement. But a 2017 survey found that only 27% of nonprofit organizations have a succession plan. Knowing the impact of executive transition on the ability of the organization to maintain a focus on delivering services to meet its mission, the Council on Accreditation (COA) requires a succession plan as evidence for its Governance 5.04 Standard: to ensure continuity during transitions in leadership, the organization maintains succession planning procedures and a succession plan. 

As an Executive Director, COA Peer Reviewer, and a doctorate student of public health, I set out on a journey to seek solutions that would help nonprofit organizations bridge the gap to create and sustain their succession planning process.  For this study I interviewed 18 community-based nonprofit organization chief executives to gather insights into the barriers and solutions to succession planning.  

CEO interview results

One of the first observations emerging from the interviews was the shared belief that a nonprofit organization’s current CEO has a responsibility of putting the greater good of the organization and its mission in front of the needs of the individual. For example, there was conversation regarding the need for a resigning CEO to provide extended notice of no less than six months, with a year preferable and two years ideal. It was opined that this length of notice was required to sufficiently prepare the organization for the transition and not believed to be burdensome in the event of a CEO’s retirement. However, many interviewed CEOs noted this type of notice would be unlikely for a CEO seeking another position.  

There was universal agreement from the interviewed CEOs that succession planning is more than planning the replacement of the CEO position. It is about other key positions and building a leadership legacy with leader development within the organization. This theme is about being intentional and the CEO creating opportunities for new leaders to emerge within the organization as well as building external relationships beyond the CEO with the community of funders, partners, donors, as well as local, state, and national organizations. Leadership development comes outside the envelope of ‘management’ and ‘supervision.’ It is about creating and encouraging employees to accept stretch assignments. Several interviewed CEOs saw these types of project-based assignments as a mechanism to create bridges for more employees to be visible within the organization as emerging leaders and an opportunity to address equity. 

A guidebook for best practices

This study culminated in the creation of a ‘Guidebook to Succession Planning for Nonprofit Organizations: A quick start framework to start and sustain succession planning.’  This guidebook contains many of the suggested elements outlined in Governance 5.04, such as: 

1. Identifying the critical positions within the organization and their key leadership and management functions. 
2. Describing under what conditions interim authority can be delegated for those positions, including unexpected leadership disruptions and planned departures, and the limitations of that authority. 
3. Outlining to whom various leadership and management functions will be delegated. 
4. Delineating the governing body and staff responsibilities as they relate to transition planning. 
5. Creating a plan for how succession planning and leadership transitions will be communicated to the governing body, staff, and other relevant stakeholders; and 
6. Implementing mechanics that assess readiness to assume leadership positions and for providing training, mentorship, and other leadership development opportunities to support readiness. 

Reviewed by nonprofit leaders, this Guidebook describes succession planning as an iterative process and for leaders to expect the plan to mature with reflection and use. To help begin a pathway forward, the guidebook establishes a three-phase approach: start with emergency planning, adopt a framework for leader development, and establish regular conversations regarding succession planning with organization leadership- including the concept of ‘legacy planning’.

The Guidebook provides a brief background with succession planning based on a thorough literature review, guiding principles based on the themes from this research project, and strategies on how to make the plan work. Woven throughout the guidebook are links and titles of other tools, further learning opportunities, and templates to ease the journey. Finally, the guidebook concludes with a sample plan.

Through a partnership with the Nonprofit Leadership Center (nlctb.org), this Guidebook is included in their Resource page and is available via a PDF downloaded file here.

Amy Haile

Amy Haile is the Executive Director of Champions for Children, Inc., the Tampa Bay region’s leading agency focused on the prevention of child abuse and neglect, which is accomplished through evidence-based family education programs that promote positive parenting and child development. Amy blends 30 years of private and public service experience and is completing a Doctor of Public Health degree from the University of South Florida, where she has focused her research on succession planning in nonprofit organizations. Her role as a Peer Reviewer allows her to witness how other family-serving organizations are innovating and implementing best practices across the country.

Recent events are inviting and requiring organizations to engage in change at a pace previously regarded as impossible. Leaders and teams are faced with creating an array of strategies that are creative, represent innovation, and will result in sustainability and survival. For some (generally the minority), environmentally-imposed rapid change offers a necessary and exciting opportunity to innovate and iterate without some of the barriers or restrictions that were previously assumed. For others, change is challenging and can result in feelings of uncertainty and distress. Both views, and the gray in-between, are accurate and real. Knowing that people’s comfort can rest at these two poles or the infinite space between is critical when engaging in the change required to address the continued inequities and disparities in our society.

There is no shortage of leadership and change management theories to use when working within an organization or system.  Critical in effecting change is understanding who you are as an organization and what approaches, actions, and activities are most congruent with both who you strive to be and what your organization intends to achieve. Working to promote equity, diversity, and inclusion must be infused into all of our efforts.

From my perspective, successful change efforts require a leader. Being “the leader” may be legitimized by role and positional authority, or it can be a designated or assumed role. While there is variability in environments, I believe that all people can be “the leader” and lead in place. While the scope and sphere may vary, every person can have self-determination, take responsibility, and assume ownership for effecting positive change. Every person can be forward thinking, aspirational, and inspirational – all required when working on change. Cynthia McCauley, Senior Fellow at the Center for Creative Leadership says that “there isn’t ‘a’ leader making leadership happen” (2014, p. 6). Similarly, I would argue that there isn’t “a” leader who will make change happen.  Change is a collaborative process. Incumbent upon the authorized or designated leader of change is to inspire those around them and to make space for change to occur.  Only through an adaptive, authentic, and inclusive process is change likely to be adopted and sustained. We must lean in to these opportunities and to contribute to evolving the systems and structures that impede our society.

Leaders of change are educators and facilitators. They must help people see and become energized by the big picture. They must share information honestly to build collective understanding. They must create a culture where ownership is shared, intended outcomes are agreed to and known, and the ability to make an impact is distributed.  Change is not about one person; it is about a process and outcomes which are enhanced by the creative tension that occurs when diverse perspectives are engaged around a common issue.  It is incumbent upon the leader to create the space for inclusivity to flourish and where new thinking can emerge.

Safe discomfort

Effective change requires that leaders create safe discomfort as a place for change. Renown leadership theorist Ronald Heifetz refers to this as the  productive zone of disequilibrium, “Your goals should be to keep the temperature within what we call the productive zone of disequilibrium (PZD): enough heat generated by your intervention to gain attention, engagement and forward motion, but not so much that the organization (or your part of it) explodes” (Heifetz et al., 2009, p. 29).  This is similar to what Jon Wergin (2020), author of Deep Learning in a Disorienting World, refers to as constructive disorientation, which he describes as “a space just beyond our comfort zone that motivates us to explore new ways of thinking and being. While uncomfortable, this level of disorientation is necessary for us to see our environment and our relationship with it in new ways.” While change can be anxiety-provoking, it is also a time when people can be energized. It can be a truly exciting time that results in increased cohesion and a stronger sense of direction, alignment, and commitment–three critical areas noted by McCauley.

Allowing people to feel disquieted while not being immobilized by fear is what I believe leads to profound change.  Over two decades ago, as a crisis clinician, I often talked about the concept of viewing crisis as opportunity.  The leader must create a manageable crisis, one which produces feelings of unease and manages and attends to potential feelings of loss.  In this space, the impossible becomes possible and alternative ways of knowing and doing emerge. While the current pandemic and events surrounding the death of George Floyd may not feel like it is a “manageable crisis,” it is nonetheless a time that requires us to come together and to think and act differently.

Shared visions (and histories)

Kouzes and Posner have suggested the importance of a shared vision: “Every organization, every social movement, begins with a dream.  The dream, or vision, is the force that creates the future” (2012, p. 18).  Generally speaking, in human and social service environments, mission and vision alignment exists. However, there may be variability in how people understand the future direction and how it will be reached. Whenever possible, co-creating the future state is encouraged. In today’s environment, this may not be possible, but few will not support the mutually held vision of promoting a just and equitable society, of being of highest service to one’s customers – however that is defined – and of organizational survival, even if both look somewhat different than previously imagined.

Change efforts must also reflect a respect for history. While the social and human service sector has continued to evolve, there are many who have contributed tremendously for decades.  For survival, it is essential for people to accept new ideas and allow them to take hold.  At the same time, it is critically important to honor and respect the past and not thoughtlessly eliminate the traditions that people, organizations, and systems hold dear.  Organizations can be prisoners of their own experience, particularly in times of uncertainty, “… when we don’t know what to do, we do more of what we know.  We construct our own psychic prisons and then lock ourselves in” (Bolman & Deal, 2013, p. 7).  In this way leaders must help others to think differently and see things through new lenses, “Because innovation and change involve experimenting and taking risks, your major contribution will be to create a climate of experimentation in which there is recognition of good ideas, support of those ideas, and the willingness to challenge the system” (Kouzes & Posner, 2012, p. 20). 

Looking to the future

Change can be unsettling, and it is generally disruptive. Today’s world requires it. Attending to people’s feelings, communicating frequently and as transparently as possible, and helping people to understand “the why” – including the intended outcomes – are all critically important. Doing all of these things does not guarantee the success of your effort; nor does it mean that everyone will agree. Engaging in change work requires each of us to become comfortable with being uncomfortable. Deep change does not always make you popular, but if grounded in your values, guided by a clearly articulated vision, and done for the greater good, those around you are more likely to at least understand it and potentially embrace it.

References

Bolman, L.G., & Deal, T.E. (2013).  Reframing organizations: Artistry, choice, and leadership (5th ed.).  San Francisco: Jossey-Bass. 

Heifetz, R.A., Grashow, A., & Linsky, M.  (2009).  The practice of adaptive leadership: Tools and tactics for changing your organization and the world.  Boston, Mass.: Harvard Business Press.

Kouzes, J.M., & Posner, B.Z.  (2012).  The leadership challenge: How to make extraordinary things happen in organizations (5th ed.  ed.).  San Francisco, CA: Jossey-Bass.

McCauley, C.D.  (2014).  Making leadership happen.  Retrieved from http://insights.ccl.org/wp-content/uploads/2015/04/MakingLeadershipHappen.pdf.

Wergin, J. (2020). Managing disorientation in a pandemic. Retrieved from https://medium.com/@jwergin/managing-disorientation-in-a-pandemic-310b49d5a03c.

A big thank you to Jennifer Flowers of Accreditation Guru for this guest post!

As an organization evolves, it will inevitably face changes in leadership. While many of these transitions are anticipated, as when additional leadership roles are established or when a leader retires, other times the agency faces the dilemma of filling an unexpected opening. The key to making any leadership transition a seamless process for staff and clients alike is to develop a thoughtful succession plan that will guide decisions when the need arises. Here, we offer fundamental succession planning tips that can help your organization to Prepare for Greatness!™ 

Why participate in succession planning?

Succession planning should be proactively and thoroughly analyzed, planned for, and reviewed, in the same manner that an organization does so for budgeting, daily operations, and strategic planning, among others. While there are many motivating factors for an agency to participate in succession planning, two key elements at the forefront are to:

1. Ensure Organizational Sustainability– First and foremost, having a well-developed, formal succession plan supports organizational sustainability, while preserving the continuous coverage of duties critical to an agency’s continuing operations.
2. Increase Transition Success – Thoughtfully considering succession possibilities will lead to smoother transitions. The executive director or CEO serves as the direct line of communication between the board of directors and agency personnel; he or she is responsible for providing the leadership and guidance to help the organization meet its strategic and operational goals and fulfil its mission. He or she also provides an understanding of the intentions and policies of the board of directors by informing and guiding senior staff leadership, administrative functions, and operational staff in the daily work of the organization. It is important to ensure a continuity of this leadership in the event of unplanned and unexpected changes, as well as during planned changes due to termination, resignation, or retirement of top leadership, including the executive director or CEO.

According to The Bridgespan Group, succession planning remains the number one organizational concern expressed by nonprofit boards and executive leadership. Additionally, BoardSource recently reported that only 34 percent of nonprofits surveyed report that they have a written succession plan in place – yet, half of all CEOs intend to leave their positions within the next five years.  

Key succession planning considerations

• Always include the board of directors and all senior leaders in succession planning, its implementation, subsequent monitoring, and future reviews.
• When listing potential candidates, consider maintaining an adequate level of staff diversity, recruiting a wide range of individuals who provide the skills your agency will need in the future, and cultivating long-term employee retention.
• Develop a short list of potential leadership successors who possess the ability to lead effectively and recognize the emerging needs of the organization, matching each individual to the most appropriate position.
• Consider how vacancies may arise – while some are easily identified, as when an executive retires or is promoted to another position, others will be unexpected and provide no advance indication or notice. By properly planning for these scenarios beforehand, selecting a replacement will be less daunting and will support a smoother organizational transition.
• Consider whether the placement of an interim leader would be of greater benefit than placing someone in a position quickly just to fill a vacancy. This is especially important for the highest-level positions in the agency where it may be beneficial to seek outside candidates for consideration.
• Succession planning must include planned, unplanned, temporary, and long-term absences. Unplanned vacancies require emergency transition plans that outline the delegation of responsibilities and authority during leadership disruptions.

Communicate and keep communicating

Communication is essential. Communication means transparency. Thoughtful and timely communication before, during, and after any leadership transition will go a long way in supporting the success of a new leader and the organization – keeping the focus squarely on fulfilling its mission of serving others.

Planning tips for leadership transitions

• Secure agency-wide commitment and continued support to ensure a smooth and successful transition.
• Identify current and/or potential challenges and the corresponding leadership qualities necessary to effectively navigate these adversities.
• Adopt an Emergency Leadership Transition Plan to address the timely delegation of duties and authority whenever there is an unexpected transition or interruption in key leadership.
• Identify opportunities to cultivate the leadership skills of current staff and board members, thereby ensuring a selection of emerging leaders who are prepared as needs arise.
• Cross-train staff to minimize disruptions from unexpected personnel changes.
• Create a formal plan that adequately supports newly-placed employees that includes coaching, mentoring, and defining job-related goals and responsibilities.

Who is responsible for planning for leadership transitions?

Generally, a board of directors is responsible for initiating a succession plan for an executive director or CEO. The board must understand that succession planning is a critical component for ensuring the short and long-term sustainability of an organization and must be considered a proactive risk management strategy. Succession plans should be carefully reviewed on an annual basis. 

The human factor

Succession planning discussions often bring apprehension to many within the organization. Those in leadership roles may see this as a sign that their performance is lacking or signals that they are considering leaving the organization, while staff may misinterpret planning as an internal power struggle, among others. Regardless of the concerns that surface, it is paramount to unambiguously clarify that leadership is simply prioritizing the agency’s future sustainability and the needs of the community it serves. The ideal time to conduct such planning is while there are no transitions taking place, allowing for greater focus of planning without additional pressure.

Other questions to consider

• If an executive is suddenly unable to serve, is it clear within the agency who will fill that role until a permanent replacement is selected? Does the board of directors have the expertise required to evaluate and appropriately fill the position?
• Are the responsibilities of the leadership position reasonable and manageable? That is, can this position realistically be served by one individual?
• Is the position’s salary commensurate with those for similar positions in comparable organizations? Wage data compiled from a variety of statistics can be found by visiting the Bureau of Labor Statistics and the Nonprofit Time’s Nonprofit Organizations Salary and Benefits Report.
• For nonprofit agencies, does the executive director also serve in the chief fundraising and development role? If so, what impact does this have on overall fundraising activities and organizational revenue?
• Are there any obvious internal or external candidates for the job?

Assigning an interim leader

Changes in leadership are inevitable, including those that are unplanned and immediate, as when an executive director is no longer able to fulfil his or her responsibility and the position is vacated. Often, the board president will work closely with the agency’s executive leadership team to identify a potential temporary replacement and offer this recommendation to the full board of directors for approval. The board will meet with the candidate, determine his or her ability to fulfil the role, and swiftly act to appoint the candidate to this interim role, as appropriate.

Following the appointment of the interim leader:

• Immediately notify the entire board of directors;
• Communicate with organizational staff;
• Direct the communications team to send press releases, communications, electronic messages, etc. to critical governmental and funding partners, families and clients served by the agency, community business partners, and the public to announce the interim appointment.

Soon after, the executive committee should meet to determine:

• Anticipated length of appointment:
  • Short-term (three months or less)
  • Long-term (greater than three months)
  • Permanent
• At what point in the future the interim position should be permanently filled
• Key benchmarks and timeframes to be provided for the board

Selection process for new agency head with advanced notice

When an agency head provides proper notice of intent to resign from his or her position, an official transition team should be assigned to conduct a formal search for a new executive director or CEO. The committee should include board members, senior staff representatives, and other relevant stakeholders associated with the organization. 

The committee should consider the following when conducting its search:

• Always consider both internal and external candidates for the position; this may include conducting a national search unless there is an internal candidate who is appropriately prepared and qualified for the job.
• Determine whether the agency’s senior-level positions could and/or should be realigned to meet the agency’s current and future needs.

Do not underestimate the power of time

It is not unusual for the head of an organization to give upwards of two years notice of his or her planned departure. However, this announcement can mistakenly be met with a “we have plenty of time” response from those involved in filling the future position. Procrastinating to fill what is arguably the most critical leadership role in the agency will often lead to unnecessary confusion and disruption throughout all levels of the agency. 

While the future is not easily predicted, taking advantage of all the time an organization is given to fill key leadership roles will not only allow the search committee to make intentional, strategic choices, those who are served by the agency will benefit, as well. Through a well-executed plan, an agency ensures that the transition is a time of focused, organized, and thought-out change. After all, uninterrupted mission fulfillment is at the forefront of every public service agency. 

The views, information and opinions expressed herein are those of the author; they do not necessarily reflect those of the Council on Accreditation (COA). COA invites guest authors to contribute to the COA blog due to COA’s confidence in their knowledge on the subject matter and their expertise in their chosen field.

Jennifer Flowers

Jennifer Flowers, Founder and CEO of Accreditation Guru, is an experienced accreditation consultant and has dedicated her career to the areas of accreditation and nonprofit management. Her 20+ years of accreditation experience includes serving as Director of Volunteer Services and Accreditation Commission at COA, as well as working with a variety of nonprofits in the education, health care, religious and social service sectors. Her background gives her an intimate knowledge of what Peer Reviewers look for during an onsite survey and what Commissioners need to make an informed accreditation decision. 

Prior to founding Accreditation Guru, Inc. in 2009, Jennifer has held key management positions in both for-profit and nonprofit organizations. She earned her B.A. in Sociology from the University of California, Berkeley and holds an MBA in International Management from Thunderbird School of Global Management. Jennifer is also certified in Nonprofit Board Education by BoardSource.