Crystallee Crain, PhD.
Capacity Builder
The Importance of Succession Planning for Any Nonprofit
Succession planning has become a crucial topic for nonprofit organizations as they navigate the challenges of today's ever-changing landscape. With many baby-boom generation leaders retiring or leaving the workforce during the pandemic, nonprofits are facing a critical need to prepare for the future. However, a recent study found that only 27% of nonprofit leaders have a succession plan in place for their leadership positions (Plante Moran's 2023 Nonprofit Summit).
In addition to the challenges posed by an aging workforce, nonprofits must also consider competition in the job market and budget constraints that can hinder their ability to hire replacements in a timely manner. This can lead to a loss of institutional knowledge and a gap in leadership that can be detrimental to the organization. The evolving needs for staffing have forced nonprofits to rethink their traditional hiring approach. As they emerge from the pandemic and hiring challenges, many are seeking leaders with different qualities and skill sets.
This has led some organizations to redefine roles, shifting from a traditional executive director focused on fundraising to a CEO/Executive Director model centered on inspirational leadership and injecting new energy into the organization.
To effectively address these challenges and prepare for the future, nonprofits must have a well-thought-out succession plan in place. This involves considering the organization's future leadership needs, identifying potential future leaders, and implementing activities to strengthen leadership capacity. To achieve this, nonprofits should follow these five linked processes:
1. Engage senior leaders: It is crucial to have buy-in from the CEO and senior leadership team when it comes to developing and implementing a succession plan. This group should set expectations, establish processes, and hold the organization accountable for its execution. This may also include board leadership or key stakeholders.
2. Map out a vision of the future leadership team: By understanding the leadership capabilities needed to achieve the organization's goals, nonprofits can identify potential leaders among their current staff and assess their potential to meet emerging needs. Consider completing a skills matrix to get an objective view of everyone’s contributions.
3. Develop future leaders: Once potential leaders have been identified, it is important to evaluate their development needs and establish systematic processes to cultivate their growth.
4. Seek new talent to fill gaps: Despite having a strong internal pipeline, there may be instances where future leadership capabilities cannot be fulfilled by current staff. In these cases, nonprofits should have effective hiring and onboarding practices in place to seamlessly integrate new leaders into the organization.
5. Monitor and improve the process of developing leaders: As with any process, succession planning is iterative. Nonprofits should continuously evaluate and fine-tune their leadership development efforts to ensure they are effective in preparing for the future.
Succession planning is crucial for the long-term success of nonprofit organizations. By engaging senior leaders and other staff, mapping out a vision for the future leadership team, developing future leaders, seeking new talent, and continuously improving the process, nonprofits can proactively prepare for any changes in their leadership and ensure a smooth transition for the organization.
As the saying goes, "failing to plan is planning to fail." Nonprofit leaders and organizations need to take the necessary steps to develop a solid succession plan and set your organization up for success in the future.
Looking for the next step? Our ED Academy is also for aspiring leaders and those who support the executive director. They will greatly benefit from the ED Academy, gaining insights into the diverse responsibilities and challenges they face in their current and future roles. Our next academy starts late Summer/early Fall 2024.
Want more? Click here to sign up for our weekly e-newsletter. Each week you'll get a link to the most recent news, workshops, and blog post. We promise to respect your time and will not flood your inbox. We only send one newsletter email each week and when any timely important announcements need to be made.