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Don’t Leap To A New Leader!

Chris DameChris Dame

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Today’s Speaker

Hosting: Sam Frank, Synthesis Partnership

Assisting with chat questions: April Hunt, Nonprofit Webinars

Chris DamePresident and Founder, Non-Profit Transitions

Using Leadership Transition to Using Leadership Transition to

Improve Your Nonprofit Improve Your Nonprofit

Beyond the Search Consultant Beyond the Search Consultant

© NPT LLC © NPT LLC

Beyond the Search Consultant Beyond the Search Consultant

Today’s Webinar is about,Today’s Webinar is about,

• Making Transition Time more effective

• Improve ED Hiring

• Prepare for future success

• Improve Board’s understanding of


• Improve Board’s understanding of

Leadership Needs

• Create excitement - next chapter

• Help new ED - “taking care of business”

Leadership Transition is like Leadership Transition is like

climbing a mountain climbing a mountain

•Need Map

•Need Guide

•Need Tools


•Need Tools

•Need Teamwork

•Need Plan

•Need Luck

Why is Leadership Transition Why is Leadership Transition

Time Important Time Important


All nonprofits experience All nonprofits experience

leadership changeleadership change

• Voluntary

• Involuntary

• Choice = drift or


• Choice = drift or

advancement

Special Challenges Special Challenges

• Founders & long

term leaders

• Confusion – leader

w. mission

• Emperor’s Syndrome


• Emperor’s Syndrome

• Fired Leaders

• Recovery – focus on

mission

• Attention to deficits

National Studies National Studies

• Annie E. Casey Foundation

• NE Executive Trans. Partnership

• Takeaways: – many ED’s leaving soon


– many ED’s leaving soon• ~10%/yr

• 66-71% w/i five yrs

– Boards need to be ready

– Np’s do not mentor well

– Weak bench strength

– No back up quarterback

Planned transitions are rare Planned transitions are rare

• Large number of

non-profits (NCCS)

– 29 k in MA

– 1.5 m in US

• Every organization


• Every organization

changes leaders

Executive Leadership is Executive Leadership is

needed needed

� EVEN during transition

� ESPECIALLY during transition


Interim periods stress every Interim periods stress every

organizationorganization

� Staff

� Board


� Board

� Stakeholders

The Board is busyThe Board is busy

� Focused on future & leadership

� Operations = distraction

� Transition influences future


Transition Period ≠ Transition Period ≠

StagnationStagnation

• Assessment

• Introduce change

• Strengthen Leadership

• Build the Base


• Build the Base

• Look to Future

Search Consultant is NOT Search Consultant is NOT

enoughenough

• Focus = Build Bright Future

• Untouched:

� Daily Operations


� Daily Operations

� Organizational Changes

� Middle Management Leadership

• Relationship = Board only

Smart Nonprofits seek new Smart Nonprofits seek new

INSIGHTS during transitions INSIGHTS during transitions


Questions at Several Levels:Questions at Several Levels:

• Board

� Do we just need another “Harry,”

� What does the ED job REALLY entail

� What is OUR mission tomorrow


� What is OUR mission tomorrow

� What does that mean for leadership needs

� How do we attract an exiting new leader

Questions Questions -- StaffStaff

� Who’s in charge?

� What are we really about?

� Is this FINALLY time to address

old problems?

� Who cares about US(the staff)?


� Who cares about US(the staff)?

� Is the Board really listening?

Kinds of transitionsKinds of transitions


Planned Planned

– Retirement

– ED Promotion: Gradual transition to new job

– Merger & consolidation of 2 agencies


Unplanned Unplanned

– Death of ED

– ED involuntary sudden departure

(Firing/Forced resignation)

– ED’s voluntary rapid departure

(greener pastures)


(greener pastures)

Special Case Special Case –– The The

Founder/Emporor SyndromeFounder/Emporor Syndrome

– Long tenure = difficult transition

– Legacy issues– Loyalties (div btw old and new)


– Loyalties (div btw old and new)

– Board leadership (can be lacking/old friends)

– Legacy threats (perceived, and lead to:)

– Sabotage

William Bridges William Bridges -- Managing Managing

Transitions: Making the Most of Transitions: Making the Most of

ChangeChange

((22ndnd ed. Da Capo Press, 2003)ed. Da Capo Press, 2003)


((22ndnd ed. Da Capo Press, 2003)ed. Da Capo Press, 2003)

Bridges says,Bridges says,

• Old paradigm

– Beginning – middle – end

• Bridges - Flips,

– Endings ,(saying goodbye) leads to ,


– Endings ,(saying goodbye) leads to ,

– Middle - the neutral zone (unfocused

wandering), leads to,

– Exciting new beginnings

Bridges lessons for Bridges lessons for

nonprofits nonprofits

• people grieve – let them

• don’t skip the neutral zone

• help staff EXPERIENCE change


• help staff EXPERIENCE change

– THEN get excited about new growth

So What’s Needed? So What’s Needed?

• Change leader – wilderness

guide

• Challenge to GROW

• Caring, not caretaking


• Caring, not caretaking

How long is transition? How long is transition?

• Depends

• Matches search process

• Six months


Why caretaker is wrong Why caretaker is wrong

• Caretakers are blind

– loyalty to past

– protect the status quo

• No movement thru Bridges zones

• Missed change opportunities


• Missed change opportunities

• No re-examination of mission & leadership needs

• Standstill means to fall back – LaPiana – competition is reality

What Makes Effective Interim What Makes Effective Interim

Leader? Leader?

• Objectivity

• Flexibility

• Judgment

• Future focus


• Future focus

• Thick skin

• Humility

ObjectivityObjectivity

� See things as they are, not how people

want to describe them

� Speak truth to power


FlexibilityFlexibility

� Fast learner

� Overcome roadblocks


JudgementJudgement

� How much change?

� How fast to change?


Future focus: 3 “E’s”Future focus: 3 “E’s”

� Excitement

� Energy

� Enthusiasm


Thick skin Thick skin

� Anger focus

� Slings and arrows


Humility Humility

� Self effacing

� Say “Good-bye”

� Stay away


Who Should Be the Interim Who Should Be the Interim

Leader?Leader?


1. Existing employee1. Existing employee

– Pros:– Knows agency – fast start

– Employees know

– Reassuring to public

– Link to the “golden” past


– Link to Board – high trust

– Cons:– Temporary promotions stir jealousy

– Caretakers become candidates

– Peter principle

– Retrograde difficult

2. Board member 2. Board member

– Pros:• Quick & easy & maybe cheap

• Knows organization (or thinks so)

• Keeps leadership team intact

• Organization knows him/her (or thinks so)


• Organization knows him/her (or thinks so)

• Good board rapport

• strong link to search

• high trust level

• Continuity to outsiders (appearance)

• Familiar with mission

2. Board member2. Board member

– Cons:• Governance skills ≠ executive skills

• Conflict – search vs. operations

• Possible Time constraints

• Board Power dynamic shifts


• Board Power dynamic shifts

• Search consultant

• Retrograde difficult

• new CEO inherits critic & comparison

• ED/Board relationship complicated

• Unfair comparisons set up

Professional IED Professional IED

– Pros:• Experienced in transition

• Deliberate change agent

now is different from then

change is uncomfortable but good


change is uncomfortable but good

encourage rising expectations

• Sets the stage for an empowered ED

• Offers new insights to the ED

• Reassures stakeholders

• Delivers bad news to Board

• Makes hard & unpopular decisions

Professional IEDProfessional IED

– Cons:• An unfamiliar role to

Staff

Board

Stakeholders/clients


Stakeholders/clients

• Can be more costly

What Does Interim Leader Do What Does Interim Leader Do


Leader & CEOLeader & CEO

� Theme maker – what are we about?

� Operator, hands-on – attend to business

� Movement agent - keep organization

moving forward


moving forward

� Troubleshooter - meet problems that

come up

Counselor & TherapistCounselor & Therapist

– Listen to staff tell stories

– Avoid he said/she said situations

– hold up a vision of the whole • the mission


• the mission

• possibilities for the future

• the need for teamwork

– Recognize noise as necessary

– Meet emotions with confidence & vision

Link or transition figure Link or transition figure

• between the staff and the Board

• between the staff and the search

consultant

• between the past and present


• between the past and present

• between the present and the future

Detective:Detective:

• Why is the organization here – what am

I seeing as its needs

• What needs am I not seeing – what’s

not revealed yet


• Where does the organization have to go

Change Agent Change Agent –– ask ask

questions like,questions like,–What needs to be done TODAY?

–What change can wait?

– How do I get people excited & moving

toward the future?


toward the future?

–What do stakeholders need to know

about?

–What does the new ED need to know?

Whip Whip

– Hold people accountable– Be firm - fair & consistent

– Move toward performance standards – Align to best practices

Cut the “fat’


– Cut the “fat’– If you don’t do it NOW , the new ED will have blood

on his/her hands

Mentor/advisorMentor/advisor

– Advise Board on impacts to search

– Prepare the Board – set expectations

– Brief the new permanent leader

– Be available for consultation


– Be available for consultation

What the IED is NOT!What the IED is NOT!

• Miracle worker

� Financial expert

� Instant fund raising resource

� Magnet for funders & regulators


� Magnet for funders & regulators

• Staff buddy

• Disconnected from governance

• Substitute for strategic plan

IED’s Challenge IED’s Challenge -- “H“H--EE--LL--P”P”

• Honor the Past

• Examine the present

• Look for (reasonable) change

• Plan for the future


• Plan for the future

H = Honor the Past H = Honor the Past


Honor the PastHonor the Past

• Trash talk is unproductive

• Don’t point fingers

• Staff know the issues - better

• Staff can help or hinder


• Staff can help or hinder

• Attitude set by how they observe

others treated – including former staff

Honor the PastHonor the Past

• Staff invested in agency’s past

• Want their story to positive

• Want jobs to have meaning


• Want jobs to have meaning

• Bad story demeans their investment

Few basic rules:Few basic rules:

• Tell at least one good story about past

• Help people say goodbye to the past

• Link past to present & especially the

future


future

• talk up the promises of the future

E = Examine the Present E = Examine the Present


Examine Mission Examine Mission

• Clear mission statement

• Reality match rhetoric

• Circumstances changed mission

• Impact of Leader’s departure

• Stakeholders needs & resources


• Stakeholders needs & resources

• View of mission by:

– Outsiders

– Staff

– Board

• Use in ED recruitment

Examine Finance Examine Finance

• Paying bills – why not

• Collecting revenues – why

not

• Board fully aware of finances


• Board fully aware of finances

• What elements need change -

pace

• New revenue sources

• Steps needed TODAY

Examine Stakeholder RelationsExamine Stakeholder Relations

• Organization performing to

expectations

• Compliance standards met

• Stakeholders view OUR future

– same

– reduced


– reduced

– potentially enlarged

• What stakeholder needs NOT

met?

• Is movement TODAY appropriate

Do Organizational Assessment Do Organizational Assessment

• Does structure match mission

• Are managers equal to positions &

funding

• Can organization afford current

staffing


staffing

• Changes needed - costs & benefits

• Are there legal considerations

• Timing for such changes – best early

• Complete changes and empower the

new ED

L = Look for Reasonable L = Look for Reasonable

Change Change


Ask questions like,Ask questions like,

• Old skeletons needing attention

• Staffing changes needed TODAY

• Financial operations improvements

• Stakeholder relationships - sound


• Stakeholder relationships - sound

P = Plan for the Future P = Plan for the Future


Take Action to,Take Action to,

• Strengthen Governance – to help

new ED

• ID important Stakeholder relations for

new ED


new ED

• ID most important challenges for the

new ED

Take Action to,Take Action to,

• Crystallize Staff view of future

– Briefing book

– Dreams

• Clarify Mission Impact of


• Clarify Mission Impact of

change

– Focus for new ED

– Board considerations

Conclusion Conclusion –– RememberRemember

• All nonprofits change leaders

• Interval = opportunity for positive

change

• Board & the staff need self examination


• Board & the staff need self examination

• ACT to make change in the interim

• Key = objective interim leadership

• Interim Leader should H-E-L-P

• Set the stage - bright new chapter


THE ENDTHE END

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