Nonprofit Organization

Organizing for Leadership Transition

Just like in family businesses there are some common threads for most nonprofits. The challenges are different for organizations that are transitioning from founders to the next generation vs. those that have been in business for some time and have gone through few leadership transitions. Many nonprofits we have come across are still led by their founders. It is difficult for them to let go of their baby and move on. Many such organizations have executive team that is in the same age group as their founders and holding on to their power for a very long time. The layer below them may be good at delivering results but are mainly task focused and not really strategic business oriented individuals. There is high level of respect and admiration for the CEO and leadership team which creates a perception that they are indispensable. Additionally many of these organizations may not have strong financial model.  All these factors lead to procrastination when it comes to planning for leadership transition continuity and growth.

Finding a Successor

Some of the challenges faced by nonprofits are similar to any other family business. Loyalty and tenure is valued over competencies and skills to lead into the future. This comes into picture prominently when finding a successor for the CEO especially in deciding internal vs. external candidate. Layer beyond the executive team is mainly task oriented and may lack the business acumen and vision to take the organization into the next phase of growth.

Challenges are similar even for many of the organizations that have lasted beyond the founders. If continuity, sustainability and growth are your goals then here are some stories of nonprofit organizations we worked with…

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