The question of who will lead an organization into the future is a pivotal one. Should you hire a known quantity from within, or conduct an external search? If you have a potential internal successor, navigating the process requires careful consideration of several key factors. In my experience with ED searches, I have seen that regardless of which path you follow, step one is vital.
Step 1: Assess Your Organization’s Future Needs
- Identify the leadership qualities required for the organization’s future over the next 3 to 5 years. Your organization doesn’t need to clone your current leader or choose their opposite. Instead, consider what the agency needs to thrive in the future.
- What is essential in this phase of the organization’s journey? Is it stability, a fresh perspective, growth, or transformation? Do you need an externally focused leader? Someone who can revamp operations?
- Be sure to gather input from the entire board, staff, community partners, and funders for a well-rounded perspective.
Once you have this broad overview, schedule time to thoroughly consider its implications. This means the board’s decision will be based on what is needed for the long-term sustainability of the organization.
Step 2: Vet the Internal Candidate
Once you know what you need, vet the internal candidate. Do they have the skill sets identified in step 1? Do they have the soft skills needed to be a successful leader? There needs to be a strong consensus among the board that the internal candidate meets most of what the organization needs. (This article suggests around 70% agreement as a benchmark.) The vetting process could include inviting the candidate to a board meeting to meet the whole board, a formal interview, and checking references outside the organization. Be upfront with the candidate that this is a process and not a foregone conclusion.
Often the internal candidate has been put forward by the outgoing leader as an heir apparent. This vote of confidence should certainly be weighed, but don’t let the ED’s perspective unduly influence the outcome. Encourage them to share their concerns about the candidate as well as their strong points. Sometimes an ED puts forward an internal candidate out of fear of who the board might select. It is important to remember that this is the board’s decision, not that of the outgoing ED. The board should also be careful not to assume that an outsider is the better choice, either. The internal candidate may be ready to lead. (More thoughts on vetting an internal candidate.)
In addition, hiring the internal candidate maintains organizational knowledge and encourages staff to grow their skills and stay with the organization. There is real value in promoting from within for building morale across the board. (Learn more in my article about creating a solid plan to develop staff skills.)
Step 3: Reach Consensus on a Decision
After this process, the board needs to come to consensus through an open, participatory process. If the internal candidate is clearly a good match for the position, they should move forward with the hiring.
If the board isn’t sure, give the internal candidate feedback and encourage them to apply for the position. This is a delicate process and an area where an external search consultant can benefit the relationship between the board and the internal candidate. While an external search will take longer, the costs in time and money are worth it for accessing a diverse talent pool with fresh perspectives and ultimately making the best decision possible.
Step 4: The Importance of Managing Transitions and Relationships Well
No matter who is hired, there must be a strong transition and onboarding process. This article has good pointers on why that matters.
If you do go forward with an external search and have an internal candidate apply, make sure to:
- Ask the internal candidate to keep their candidacy a secret (at least until the finalist stage) – it will save everyone headaches later on.
- Be sure all candidates have the same information at the finalist stage (or earlier if appropriate). External candidates should know about the challenges facing the organization.
- Have a one-on-one conversation with the unsuccessful internal candidate to tell them why and what skills they should work on developing. This will go a long way toward retaining them. I encourage the unsuccessful internal candidate to let the person hired know about their candidacy. This lets the new leader work on building a relationship with that person, which will also help them stay.
- Some additional pointers on including an internal candidate.
Conclusion
Deciding to hire an internal candidate is an important decision. As a search consultant, I can help you throughout this process, even if you decide not to conduct an external search. Contact me for a free, no-obligation discussion.
In one search I conducted, the board had a strong internal candidate, but they weren’t fully convinced she was the right hire. After an external search with three fantastic finalists, the board realized that their internal candidate was best-suited for the position and chose her. I’ve also conducted searches where the external candidate was chosen over a strong internal finalist after careful consideration. When boards take the time to seriously consider their options, they can make an informed decision.