How to Plan for Nonprofit Leadership Succession
Planning for leadership succession is one of the most important, but also most neglected, governance responsibilities of nonprofit boards. According to BoardSource, only 23 percent of nonprofits have a written succession plan in place.
Failing to proactively plan for the departure of key executives such as your executive director, CEO and CFO can jeopardize the future of your nonprofit organization. The recent growth of the nonprofit sector and retirement of many baby boomer executives make the task especially critical today.
Here are five succession planning tips for nonprofit organizations.
- Start the process early. Almost all leaders leave their organizations eventually, so departures shouldn’t come as a surprise. By beginning the succession planning process long before you think you need to, you’ll be better prepared for the inevitable executive turnover when it happens.
Some nonprofits hesitate to address succession planning because they’re worried about sending the wrong message to current executives. But just the opposite is true: Proactively planning for succession shows the leadership team that you’re serious about ensuring the long-term viability of the organization.
- Have your board take the lead. Since the board is ultimately responsible for oversight of the executive director and CEO, it makes sense for them to spearhead and manage the succession planning process. In fact, the board has a fiduciary responsibility to help ensure the organization’s long-term sustainability, which requires well thought-out leadership succession.
It’s usually smart to create a board committee (e.g., board development or board governance) to oversee the succession planning process. The committee should create a checklist, establish a timeline and benchmarks, monitor progress, and report back to your executive team on a regular basis.
- Consider your current and future needs. Your nonprofit organization will probably look different in five or 10 years than it does today, so you should create your succession plan with this in mind. For example, will your mission change over the next few years? If so, what kind of leadership qualities are needed to navigate the new challenges you’ll face in achieving the mission?
Of course, this will require a degree of anticipation and guesswork on the part of your leadership team. But it’s better to anticipate these changes now than to plan leadership succession based on outdated ideas and strategies.
- Create a future leadership pipeline. Identify current staff members who you believe have the potential for future leadership roles. Once identified, invest resources to help train and develop them for greater responsibility. This includes having your current leaders take them under their wing as mentors so they can see first-hand what nonprofit leadership is all about.
- Be prepared for emergency succession. In a perfect world, your executives will provide ample notice that they plan to leave your organization. But executives may depart unexpectedly for a variety of reasons, including a serious accident or illness or simply to pursue another professional opportunity.
An emergency succession plan will appoint an acting successor, define the scope of work, designate lines of reporting and identify support resources. Adopting such a plan will allow your organization to continue delivering on your mission during an executive’s emergency absence while buying time to make more permanent decisions.
Succession planning goes to the heart of your nonprofit’s mission, both now and in the future. The outcome will affect every aspect of your work, from fundraising and event planning to staff retention and donor relations. Meet with your board of directors and executive team to discuss how you can best initiate a succession plan for your organization.
Contact us if you have questions about succession planning for your nonprofit organization.
Sidebar
Board Succession Planning
It’s just as important to have a succession plan for your board of directors as it is to have one for your executives. Otherwise, you may have to manage board member changes on the fly instead of in an organized and orderly fashion.
Put together a list of promising candidates ahead of time and start vetting their qualifications. Clearly describe your organization’s history and mission along with board members’ duties and legal obligations (e.g., duties of care) and the level of commitment involved. It might make sense to hire an outside consultant to help with the process.
