Impact of Organizational Culture on Hiring a Nonprofit Executive Director

Many nonprofits conduct strategic planning and have a pretty good sense of what the strategic priorities are. Not as many organizations evaluate their organizational culture. That is despite the fact that “culture eats strategy for breakfast” (as nonprofit guru Peter Drucker would say). This blog examines what organizational culture is, why it is so powerful, and how it can have an impact on newly hired Executive Directors, CEO’s or other nonprofit leadership positions.

What is Organizational Culture?

Organizational culture is defined by The Business Dictionary as “the values and behaviors that contribute to the unique social and psychological environment of an organization. Organizational culture includes an organization’s expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations.”

According to Robert E. Quinn and Kim S. Cameron at the University of Michigan at Ann Arbor, there are four types of dominant organizational cultures.  (http://www.artsfwd.org/4-types-org-culture/)

1. Clan oriented cultures are family-like, with a focus on mentoring, nurturing, and ‘doing things together.’
2. Adhocracy oriented cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and ‘doing things first.’
3. Market oriented cultures are results oriented, with a focus on competition, achievement, and ‘getting the job done.’
4. Hierarchy oriented cultures are structured and controlled, with a focus on efficiency, stability and ‘doing things right.’

Why is Organizational Culture so Powerful?

A nonprofit’s culture is its basic personality, the default setting that underlies how that organization evaluates and responds to people and situations. Organizational culture is established over a long period of time and becomes the comfort zone for any nonprofit. The degree to which people go outside the cultural norms in the organization influences whether their actions will be understood or supported. Over time, someone consistently going outside that comfort zone will likely be labeled as an employee who does not fit in. They often will be encouraged to move on.

How Does Organizational Culture Impact Newly Hired Executive Directors and Nonprofit Leaders?

Initially a new Executive Director/CEO is like any other new employee—learning the lay of the land. The new leader has probably been hired to focus on priorities, achieve goals, and address issues/problems. A new Executive Director may even have been hired—in part—to impact the organizational culture. If the newly hired leader is to be successful, (s)he must understand accurately the lay of the land and how the efforts the Board has asked them to undertake are likely to be in alignment with, or in opposition to, the established culture.

To the extent that the new leader’s priorities, goals and strategies are largely aligned with the existing organizational culture, then (s)he will be able to move relatively quickly. For example, strengthening staff training in a nonprofit with a “clan oriented” culture would be a relatively easy sell. However, to the extent that a new Executive Director’s priorities, goals or strategies are not in alignment with the culture, then (s)he will likely encounter resistance and will have to work harder at getting buy-in. For example, the shuffling of some middle and upper management positions will likely NOT be an easy sell in a “hierarchy oriented” culture.  This would be the case even if the shuffling of some middle and upper management positions was part of an approved strategic plan. (Remember, “culture eats strategy for breakfast.”)

What Should Boards Do When Hiring?

Three things the Board can do to consider organizational culture and ensure a smoother transition when looking to hire a new Executive Director/CEO are as follows:

1. Understand the dominant culture of the nonprofit and be prepared to discuss that with the finalists for the position.
2. Understand that some goals, priorities and strategies may take longer to implement if they do not align with the current dominant organizational culture.
3. If a significant change in the culture is desired by the Board, that goal needs to be explicitly discussed with finalists for the position during the hiring process in order to understand the approaches the finalists would propose to use to accomplish the objective. (Hint—it is NOT easy and it takes a time.)

So, prior to hiring an Executive director, a nonprofit Board will often review its strategic plan to determine the kind of leader needed.  Equally important, it also should evaluate its organizational culture and how that will impact the kind of leader required and what questions to ask in the interview process.

Should you need assistance, The Moran Company specializes in the recruitment of nonprofit Executive Directors/CEOs and top fundraising professionals for organizations and associations. We understand the nuances of governance and operations, as well as the impact organizational culture can have on the hiring process. Contact us today to learn more about our nonprofit executive search process and how we can guide you through all aspects of your leadership transition.

by Don Harkins
Senior Search Consultant
The Moran Company
“We Find Great Nonprofit Executives”

© 2018 The Moran Company, “We find great nonprofit executives.” We specialize in searches for nonprofit executive directors, directors of development/fundraising staff, and other top nonprofit leadership. www.morancompany.com