In a recent survey of 3,000 nonprofit executive directors, 67% indicate that they expect to leave their jobs within five years, including 10% who are already actively considering an exit. This survey, “Daring to Lead 2011,” which was conducted late last year, is the third leadership study produced by the Meyer Foundation and CompassPoint Nonprofit Services over the last 10 years and continues to forecast the significant workplace transition.
Of course, the forecast of high levels of executive turnover is true across all businesses, not just nonprofits. On January 1, 2011, the first baby boomers turned 65. And every single day since and for 19 years to come, more than 10,000 baby boomers will reach 65. Whether the long-time warnings of a labor shortage are real depends, in large part, on the continued participation of the baby boomers in the labor force. And how effectively workplaces attract, retain, utilize, and transition talent will determine future success.
While not alone, nonprofits as a sector have considerable challenges in addressing leadership transition:
– Tend to be small-to-medium size operations and, as a result, are not likely to have as many resources to address strategy, planning, and leadership development.
– Are often institutions with a culture of group decision making, where business gets done through committees and boards of directors – a process that can create added delays and complexity.
– Can be highly funder-dependent, and any transition – especially with an organization’s top leadership – can threaten these vital relationships and the very future of the organization itself.
– Frequently are lead by an original founder or long-time executive. Over time, the top leader and the organization itself are inextricably connected. When this leader goes away, so could the organization.
– Often do not have sufficient reserves (if any at all) to weather an economic downturn, exposing the organization to significant financial vulnerabilities. Leadership transitions, if not handled properly, can further intensify this situation.
This study’s findings also reveal that many boards of directors are unprepared to handle the transition and select and support new leaders. Despite over a decade of attention to this issue, executives and boards are still reluctant to talk proactively about succession, with just 17% reporting that their organizations had a written succession plan.
We must not overlook these pivotal leadership changes for the development opportunities that they are. Properly and proactively managed, these transitions provide an organization a period to pause, reflect, regroup, and focus. It’s a unique opportunity to examine strategic direction, priorities, and chart a future course. The key is not merely to endure it, but to emerge stronger and more dynamic from it.
Raven Reflections 