A wide range of terms are used in succession planning and the type of plan you create varies depending on your current stage in the process. I covered the basic types of planning necessary for all organizations in my article on succession planning. In this article, I will provide an overview for those organizations that have a long-time executive director who is planning far in advance for a transition.
What Interim Executive Directors Do – recorded August 12, 2020
Interim executive directors play an important role in a nonprofit leadership transition. But what do they actually do? Why are they valuable? How can you become one?
Becoming a strong executive director takes a wide range of skills. No one can be strong in every single area, of course, but you do need to have the basics down in each and know where you can improve. The skills listed below are all ones you can learn with practice.
When I first became an ED, I had a variety of skills from my previous nonprofit position, but there was a lot to learn. The biggest areas of growth for me were financial management, fundraising, and HR, as I came from an organization with whole teams for those tasks. Other skills I had already. I was passionate about the cause, and cared about helping others. I had written and managed grants of all kinds. I had managed staff, and programs. Especially in those first few years, I spent my time learning the areas that I wasn’t as strong in.
Below are a few of the broader skills to consider developing if you are interested in an ED role. The good news is that they are applicable across all sectors. All my ED knowledge was quite valuable in my later roles as an interim ED in very different types of nonprofits.
Good succession planning is about more than choosing a successor to the executive director. It needs to encompass planning for all leadership roles to strengthen the organization for the long term. A key component is leadership development planning, which provides a structured method to build leadership capacity.
As a young program manager at a social service agency, I was lucky to have many supervisors who were great mentors. They encouraged me and stretched my skills. They expected me to learn how to budget for my program, ask hard questions, supervise and mentor staff, communicate clearly, and develop partnerships in the community. They supported me in learning these skills by stretching my thinking and giving me opportunities to take on higher-level tasks. When I left that role to become an ED of a nonprofit, those leadership skills helped me tremendously, although I still had plenty to learn.
The possibility of a long-term trusted and high performing executive director leaving their position is a scary prospect for most boards. It can be made more manageable by intentional planning and open discussions. In addition, taking the time to explore succession planning and leadership development now will benefit the organization immediately through reduced workloads, better-trained staff, and the opportunity for future growth.
Through a new program called Successful Transitions, Lincoln organizations developed their plans and prepared for the future. The first Successful Transitions cohort consisted of six nonprofit organizations. One has an executive director who had a firm retirement date less than a year away. Two others have founding executive directors considering retirement someday in the future, but knew they needed to put plans in place for a smooth transition. The other three have no departure plans but understood that succession planning would benefit the entire organization now and in the future. There was also a wide range of organization size (staff sizes between 1 and 75) and executive director tenure (2 to 40+ years).
In this video, I cover all of the basics of succession planning. It’s an important tool for long term sustainability for nonprofit organizations. Contact me and I’ll be happy to help you develop your own organization’s succession plan.
For many small nonprofit boards, hiring a search firm to find their next executive director simply isn’t an option financially. Organizations can do the search themselves, but should involve people in the process who have experience in searches, and to follow best practices. What follows is an overview of the process that will result in the best possible hire on a budget.
There are a million posts out there on how to thank someone who is retiring by buying them a gift. But how meaningful is a plaque or clock after someone has spent decades serving their community as a nonprofit leader? How can you thank someone in a way that really connects to their work and reminds them that they are valued?
The first day for an executive director, or any nonprofit position, sets the tone for their career. It’s a critical part of the entire onboarding process.
There are plenty of ways to do the first day right and make the new hire feel welcomed and excited. Here are some of the basics:
For large nonprofit organizations, a chief financial officer (CFO) is a critical part of the management team. A CFO provides a high level of financial knowledge, and helps the organization understand their finances on a deeper level, as well as create plan strategically for its financial future.
For smaller organizations, this level of knowledge isn’t affordable. Some organizations are able to hire a CFO on a contract basis for a limited number of hours per month, but for many, even that cost is too high. This means the executive director needs to develop their financial knowledge to help the organization thrive.