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Executive Director
In the coming year, thousands of nonprofit CEOs will leave their organizations to enjoy retirement, pursue preferred pastimes, and resume travel plans to exotic locales that were delayed by the global pandemic. For most organizations, the departure of a long-time, well-respected CEO will be seen as a costly loss. The best news for nonprofit missions is that every CEO departure can be a positive, mission-advancing moment if plans are made for that departure.
Respond to the statements below to assess your readiness for executive turnover risk:
Assess Your Readiness for Executive Turnover Risk |
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1. | The current Board has capably managed through another CEO transition during the past 5 years. | YES ☐ |
NO ☐ |
2. | The current CEO ensures cross-training and backup staff for all their key functions and roles. | YES ☐ |
NO ☐ |
3. | The Board annually reviews the CEO succession plan; updates are made as needed to ensure the plan’s relevance. | YES ☐ |
NO ☐ |
4. | The Board Chair and/or Officers are clear about the specific steps—and timeframes for those steps—that should be taken in an unexpected (emergency) CEO departure. | YES ☐ |
NO ☐ |
5. | The CEO’s Position Description is reviewed from time to time and is generally up to date. | YES ☐ |
NO ☐ |
6. | The Board has a good relationship with the CEO’s direct reports; senior staff periodically interface with the Board, understanding each team member’s role. | YES ☐ |
NO ☐ |
7. | The CEO has shared with the Board their view about whether a senior staff member is suited, prepared, and potentially interested in an “Interim CEO” role. | YES ☐ |
NO ☐ |
8. | The CEO and team regularly practice succession strategies—handing off assignments and responsibilities to the designated backup—such as when the CEO is on a sabbatical, vacation, or sick leave. | YES ☐ |
NO ☐ |
9. | The Board has a clear sense of organizational priorities and activities and receives periodic updates between regularly scheduled board meetings. | YES ☐ |
NO ☐ |
10. | The Board is a high functioning team; differences of opinion arise, but there are no factions, in-fighting, or behaviors antithetical to teamwork. | YES ☐ |
NO ☐ |
To score your assessment, give yourself 1 point for every YES answer and 0 points for every NO answer. A perfect score (10 points) suggests that your mission is in an excellent position to survive and thrive during an executive transition. Anything less than 10 points means you have work to do! The statements preview the important work all Boards should do to get ready for an executive transition—planned or otherwise. Below, we explore specific strategies and activities that will help your team manage the risk of lost momentum, chaotic transitions, and rocky on-ramps for new leaders.
The staff member’s handling of the feedback from the Board will inspire confidence and showcase the team member’s ability to be and think in the moment. All too often, presentations feel like well-rehearsed, sanitized CEO-approved descriptions of what’s happening.
While an annual plan is often part of the new CEO playbook, shorter-term plans (think 30, 60, and 90 days) will inspire confidence by the staff and the Board.
Executive turnover can be a time of turmoil, uncertainty, and the risk of mission derailment looms large. Even organizations that prepare for turnover by naming a successor candidate do not escape this risk. Instead, by building a resilient process, organizations can infuse calm and opportunity during these transition times.
Melanie Lockwood Herman is Executive Director at the Nonprofit Risk Management Center. She welcomes your questions and comments about succession planning and executive turnover risk at your nonprofit at 703.777.3504 or Melanie@nonprofitrisk.org.
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