Planning the Departure of a Long-Standing Nonprofit Executive Director (CEO)

by Bill Craig, Senior Consultant
The Moran Company  “We Find Great Nonprofit Executives”

Throughout the course of my career, I served as CEO of a nonprofit for 22 years. After this long tenure, my transition took careful planning. Based on my experience and the advice given to me, I have put together some thoughts on best practices to incorporate when considering the departure of a long-standing Executive Director.

Selecting the Executive Director (or CEO) is the most important function a nonprofit board undertakes. When that selection follows the departure of a long-standing CEO, the importance of the decision is magnified and the complexity of potential risks and gains is much greater.

Ideally, the departing CEO will initiate preparation for this transition well in advance. This is done through communication with an engaged nonprofit board that is educated about their responsibilities. This conversation would flow out of what should be a regular (annual) review of the Succession Plan and should precede the planned date of separation by at least a year.

The next decision is whether to use a specialized recruiter or search firm to shepherd the identification and selection process of new candidates. Often board members will express the sentiment that they can do this without help. Especially in the case of a long-standing CEO, this may be shortsighted if this is a task that few or none of them have ever performed.

The right nonprofit recruiter adds the value of confidence that a search is thorough. They will provide an objective process in which all board members feel included and are more likely to own the final decision. So, my advice, use a proven nonprofit search consultant.

The next step should be scheduling a retreat to clarify the status of the organization in relation to its mission, customers, and environment; to identify emerging factors to be accounted for; and to embrace a vision for its future evolution. The key benefit of this effort is to point to the characteristics desired in the next leader. Having this session facilitated by a skilled outsider will allow the board chair to be a full participant and increase the chances that a cohesive vision will emerge.

These initial steps are more likely to succeed if the board has had an active development and renewal process over the years. However, sometimes with a long-standing CEO, the board may have adopted a more passive approach. In either case, a focused time of reflection is critical.

A key question this process must answer is: status quo vs. major redirection. If the board is generally satisfied with the organization’s direction and with the demonstrated qualities and activities of the current CEO, then the search will focus on those qualities in a person with long-term potential. However, when there is major dysfunction within the organization or unique external threats to its viability, a short-term crisis manager may be needed.

Another key consideration: is there a prospective (or openly identified) internal candidate for the position? If this individual is truly a strong candidate, the incumbent and the board should have already had this discussion and considered actively grooming him/her to take over. Even in this case, the process and the ultimate success of the organization will be enhanced by a broad, open search.

The board’s work is not done when the selection has been made. A well-thought-out transition plan is especially important in the case of a departing, long-term CEO. Every stakeholder of the organization (customers, employees, donors, funders, and community partners) wants to be assured that the board is placing them in good hands. With the enthusiastic assistance, if possible, of the departing CEO, the board must openly discuss this crucial period with the new CEO and provide specific direction.

A board that has shepherded its organization through this major developmental process deserves to feel a great sense of accomplishment. It has assured the ongoing pursuit of the mission and earned a share of its successful legacy.

–   Prior to his work as a recruiter with The Moran Company, Bill Craig previously spent 22 years as President/CEO of an organization dedicated to serving those with developmental disabilities. To read more about Bill’s background and the expertise of our other consultants, view their bios.

© 2016 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