QUICK SHOT: 3 Phases of Succession for Nonprofit Leadership

Keep your organization moving forward when leaders leave

From Michael J. Tomlinson (MT), CEO and President, BDI

It’s often said that the only constant in life is change – and that certainly holds true for nonprofit organizations! In recent months, several of BDI’s client partners have experienced transitions in their executive leadership… and even more are asking for advice to prepare well for anticipated changes to come and future “passing of the baton.” 

While BDI is grateful to walk alongside these organizations, offering guidance and support during seasons of succession, these changes can still prove challenging for nonprofit teams. 

I shared before about a concerning trend in executive leadership, where tenure in the C-suite has been on the decline. This can be attributed to a myriad of generally positive factors such as lucrative job offers, new opportunities for personal growth and planned retirement, as well as equally common negative ones, such as burnout and changes in the alignment between a chief leader’s skill sets and the evolving needs of the organization. Whatever the reason for succession, the impact of such changes on nonprofit teams cannot be underestimated. 

Succession can be challenging for the new leader who comes aboard too. The team, board, policies and processes that a new executive inherits may be in good shape… but sometimes, there are an extraordinary number of significant obstacles and unfinished business to address, which can make filling these empty shoes especially hard. 

Yet leaders and nonprofit teams are not alone in the challenges they face in seasons of succession. As I’ve spoken with BDI’s client partners who’ve weathered such transitions, I’ve observed some commonalities that have helped them not only survive, but also thrive. Courage is essential. Focusing on long-term goals are key. Having a plan is critical.

By breaking down the at-times ominous period of transition into three specific phases, nonprofit teams can position themselves for a successful season of succession. 

Phase 1: Preparation

As much as possible, it should not come as a surprise to your internal team or your broader community when a leader moves on from the organization. Certainly there are times when sudden change is unavoidable, but when planned succession happens as a result of retirement or job change, a leader’s intentions should be communicated as early as possible.

I’ve spoken with executive leaders at several cause-driven nonprofit organizations that BDI serves who have a clear and definite plan for how long they intend to fill their current position. Others, when asked how long they intend to serve, answer, “As long as God’s work for me here remains.” Communication can easily break down during times of transition, so I encourage leaders to be transparent with their teams and make sure everyone’s expectations are aligned when it comes to a leader’s length of service. 

It’s also important to communicate key institutional knowledge that could be lost if a leader leaves. Whether your season of succession is starting now or is five or ten years down the road, it’s important to empower trusted individuals on your nonprofit team with vital information on key tasks, processes and relationships that must be maintained through the transition. These team members can also help share the responsibility of training that comes with onboarding a new leader and getting them up to speed.

Phase 2: Transition

Preparation and transition are two phases that will need to overlap. Despite their best intentions to “hand over the keys,” I’ve witnessed many CEOs only surrender their duplicate second set of keys while retaining their own… resulting in frustration and confusion for their staff and amplifying ambiguity over who, ultimately, in responsible for opening up, closing and securing the house (i.e., the organization). 

For transition to be successful, it must be made clear when a leader is planning to leave or retire. A definitive date for transition to take place motivates new leaders to emerge and gives the rest of your team a date to work toward as they finalize preparations. And, because it’s not at all uncommon for plans to change, if the timing of succession is advanced or delayed, it is critical to communicate these changes, and why, to all key stakeholders who may be impacted by the timing modification. Every organization is an interrelated ecosystem where major changes like leadership succession will impact the whole community in profound ways.

While this phase may feel daunting, it can also be an opportunity for your organization to reevaluate your goals, mission and vision. A new leader may bring with them bold plans and ideas that may come as a shock to your existing team. 

Use this time of transition to connect your incoming leader with your board and leader who’s transitioning out. Encourage open communication about areas in need of improvement, as well as about your organization’s strengths. Whatever new goals or initiatives do result from these discussions, it’s important that any changes align with your organization’s values and core beliefs. Gathering your key stakeholders together helps ensure a shared vision for your future.

Phase 3: Handoff

The day you’ve been preparing for will eventually come when your new president, CEO or executive director becomes fully responsible for the leadership of your organization. This handoff can be bittersweet, impacting your team’s morale… as well as impacting relationships with donors. As in phases 1 and 2, open communication will be key to success. 

For your internal team, it’s important that an incoming leader makes an effort to build relationships with them, thank them for their hard work, listen to their concerns and acknowledge and address them with empathy. In my own experience transitioning into the role of CEO and President at BDI, now a fast four years ago, I found that meeting one-on-one with team members very early on was a helpful way to build trust and encourage my new colleagues to feel comfortable approaching me. A new leader’s efforts to be open, approachable and transparent (especially in the first year) are critical to foster a positive work environment.

Similarly, communicating openly with your volunteers, key partners and supporting donors about changes in the organization and new plans for the future is wise for retention. Many donors may have established relationships and a sense of trust with an outgoing leader that have been a boon to their charitable giving over the years. Understanding that it can take time for a new leader to achieve a similar depth of relationships and respect in your community, know that it can and must be done!

BDI has helped many nonprofit organizations communicate with their donors about changes in leadership through digital and print touchpoints like emails, social media announcements, press releases, special newsletter articles and more. Having a trusted agency partner like BDI that you can turn to can help make your season of succession go smoothly.

The Blessings of Succession

Big leadership change is challenging, no question. However, on the other side of the transition, I believe blessings of increased opportunity, capacity and impact await those organizations who navigate it well. Certainly it is a time to review who and where we are, where we are going and to dream big!

One of the things I love most about philanthropy is the desire of those drawn to this field to make a difference that lasts way beyond themselves. The hope of succession is that it becomes a form of “paying it forward” – that is, for an outgoing leader to depart an organization that is better than when they first encountered it – more equipped to thrive, prepared for the coming change, enthusiastic about what the future holds… and open and ready to be improved upon by every leader to come. 

If you would like to learn more about navigating a change in leadership at your organization, I would be glad to share more. Send me an email today! BDI has helped many organizations prepare for changes in leadership, and we would love to partner with you to make your season of succession a success.