1. Non Profit Leadership
Transitions
By Principals In Philanthropy
And Trujillo Group, Inc.

2. Trends to consider in nonprofit
leadership transitions
Overview of the need
According to various experts, nonprofits across the country, to
keep pace between now and 2016 will need to:
•Recruit new senior managers (executive directors and direct
reports) in numbers ranging from 640,000 to 1,250,000 – an
minimum increase of 140% of the current population of
nonprofit executives ( Bridgespan Group study)
•Anticipate wider and deeper turnover of staff beyond current
measurements with significant numbers of leaders leaving
nonprofit management altogether ( Meyer Foundation and
Compasspoint Nonprofit Services – “Daring to Lead, 2006”)
•Accelerate the response to the trend in turnover of
leadership
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3. Trends to consider in nonprofit
leadership transitions
Drivers of the need
On the increase:
•Numbers of nonprofit organizations. Larger organizations,
requiring more executives, are being established faster than
smaller ones. (Bridgespan Group study)
•Transfer of wealth and the rise of baby boomer giving
(Center on Wealth and Philanthropy at Boston College)
•Baby boomer retirement
•Exodus of professionals from the nonprofit and government
sectors
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4. Trends to consider in nonprofit
leadership transitions
Drivers of the need
On the increase:
•Greater dependence of the public sector on the private
sector
•Higher accountability from constituencies requiring higher
levels of professionalism
•Prevalence of flat, understaffed organizations lacking
infrastructure for grooming and succession
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5. Trends to consider in nonprofit
leadership transitions
Drivers of the need
On the decrease or lagging:
•Pipelines of younger professionals to feed the supply
•Depth and experience at Board level to provide coverage for
quasi-staff functions
•Seasoned board leadership understanding the need for
investment in talent infrastructure, recruitment, human
resources management
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6. Trends to consider in nonprofit
leadership transitions
Drivers of the need
Proposed remedies:
• Investment in capacity building from the donor community
• Prioritization of performance reviews, mentoring, training,
succession planning, recruiting, and talent development by Board
and staff
• Evaluation of management compensation and competitiveness in
the labor market
• Exploration of new talent pools (career-changers, ladders for
younger professionals, boomers who are anti-retirement, veterans,
mothers returning to the workforce, etc.)
• Creative work and leadership arrangements ( job-sharing, career
path development, targeted volunteer service v. membership on
the Board)
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7. Transition Scenarios & Challenges
• Insufficient level of salary for expertise needed
Start Up
• Role clarification
• Reenergizing demoralized staff & stakeholders
Turn Around • Restoring reputation, improving accountability
• Rebuilding systems, restoring service delivery
• Lack of recognition that organization has
Realignment “peaked”
• Strategy, systems & culture behind the times
• Finding a way to build on success
Sustain Success • Creating your own leadership profile
• Living with someone else’s team
• Intertwined identities and relationships
Founder & Long-term ED • Departure circumstances/timing
• Former executive’s “power shadow”
Executive Transition Management, CompassPoint Nonprofit Services, 2005 7

8. Influencing Factors
Organization health & life cycle
Organization size
Organization mission & culture
Diversity considerations
Departing executive’s role legacy & shadow
Circumstances of the departure
Executive Transition Management, CompassPoint Nonprofit Services, 2005
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9. Growth Curve
Renewal
Leadership
Transition
Complexity
Chaos
Growth Confusion
Consistency
Control
Clarity
Decline
Management
Entrepreneurial
- Adapted from Changing the Game by Larry Wilson and Grow or Die by George Ainsworth-Lead 9

10. Managing Transition
Coming to Terms with Change
The New Beginning:
Commitment, Rebirth, New
Energy, New Sense of Purpose
The Neutral Zone:
Confusion, Direction
Finding, Re-patterning
The Ending:
Loss, Letting Go . . .
Relinquishing Old Way, Old
Identity Source: William Bridges
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11. Checklist for Key Interventions
• Phase One – The Ending
– Consider using external professional to guide
transition
– Create a good ending with departing executive
– Define post-departure role for departing executive
with staff and board members
– Helping the departing executive focus on new
beginnings, next venture
– Determine role of departing executive
– Letting go of old ways, dealing with loss,
acknowledge contribution
- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 11

12. Checklist for Key Interventions
• Phase Two – Neutral Zone
– Conduct agency assessment
– Create Board development plan
– Develop and executive an interim
management plan
– Prepare for executive recruitment; engage
staff and board in developing transition plan
– Conduct search
– Communicate profusely with all key
stakeholders – staff, funders, volunteers,
clients
- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 12

13. Checklist for Key Interventions
• Phase Three – New Beginning with New Executive
– Orientation & welcome ceremonies
– Create executive entry plan
– Celebrate successful transition; acknowledge
accomplishments
– Develop strategies to address issues identified in
agency assessment
– Connect with stakeholders
– Engage previous or interim executive as appropriate
– Work with Board to recruit fresh Board members
- Adapted from Executive Transition Management, CompassPoint Nonprofit Services, 2005 13

14. Executive Transition Management
Process Overview
PREPARE PIVOT THRIVE
Search & Select
Initial Plan Search Launch &
Consultation & Transition Support Wrap Up
Clarify
Transition
Leadership
Stabilize Situation Prepare Organization
(if needed)
Executive Transition Management, CompassPoint Nonprofit Services, 2005 14

15. Comparison Chart
Executive Transition Management Executive Search Process
•Assess agency’s leadership needs (interim or •Meet with key leadership to determine new
acting position), determine transition hire qualities, qualifications, compensation,
timeline, address agency stabilization issues. and timeline.
•Assure good ending for departing executive.
•Set up Search Committee; agree on process •Set up Search Committee; agree on process
steps, who involved, how decision made. steps, who involved, how decision made.
•Conduct agency assessment, initiate/review •Research compensation, advise client.
strategic plan. Discuss compensation,
research comparables.
•Identify new executive attributes, prepare •Identify new executive attributes, prepare
job description, advertise, network, screen job description, advertise, network, screen
candidates, conduct/phone screen initial candidates, conduct/phone screen initial
interviews. interviews.
•Present list of candidates; do reference •Present list of candidates; do reference
checks. checks.
•Develop entry plan for new executive.
•Manage close out of search process. •Manage close out of search process. 15

16. Organizational Assessment Capacity Tool
Clear need to Basic level of Moderate level High level of
increase capacity capacity in place of capacity capacity in place
Mission, Vision,
Strategy, Planning
Program Design,
Evaluation
Human Resources
Senior Management
Team Leadership
Information
Technology
Financial
Management
Fund Development
Board Leadership
Legal Affairs
Marketing, External
Communication
https://sp.socialventurepartners.org/Document%20Library/Forms/SVP%20Investee%20Capacity%20Tool.aspx. 16

17. Executive Director Entry Plan
Agreement between Board and new executive
Plan for 90 days to 180 days
Board support offered to the Director in the first 90 days:
The Board Will . . .
Training
Coaching
Regular communication plan
Peer networking
Expectations for the Director in the first 90 days:
The Director Will . . .
• Staff leadership
• Member relations
• Board development
• Grant management/fundraising
Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
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18. Executive Director Entry Plan
Agreement between Board and new executive
Plan for 90 days to 180 days
Board meetings – how will work together?
• How is agenda set for monthly Board meetings?
• What does the executive contribute to the meeting?
• Who handles the logistics for Board meetings – Room, Food, Copies?
• Who decides what is in the Board packet?
• Who attends the Board committee meetings?
• Who is responsible for meeting minutes?
Tasks to be completed in first 6 months
• Complete strategic planning; set or review agency goals
• Identify supports for new executive: professional development, executive
coaching, mentoring, training
Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission. 18

19. Board Leadership
•“Stepping up to the plate.”
•“Reversing roles with the executive.”
Board Leadership
Departing ED Board Incoming ED
Executive Transition Management, CompassPoint Nonprofit Services, 2005 19

20. Values and Principles – Rules for the Road
1. Assessment is best done when executive is
departing or has departed.
2. Interview a wide range of constituents and
stakeholders during an assessment.
3. Budget and prepare for technical assistance
and/or interim management.
4. Avoid putting former executive on the Board.
Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
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21. Values and Principles – Rules for the Road
5. Avoid having Board members apply for the
executive position.
6. Regard succession planning as a necessity.
7. Consider entry plan which guides and supports
executive.
8. Be sensitive to undue influence from former
staff leaders, employees and former Board
members.
9. Build in mechanisms for rotation and growth in
Board – nominating committees, term limits,
Board self-evaluations, etc.
Copyright © 2007 by Principals In Philanthropy and Trujillo Group, Inc. Usage or reprints only with permission.
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22. Bibliography
Websites
• Bonfils Stanton Foundation www.bonfils-stanton.org
• Bridgespan Group www.bridgespangroup.org
• Annie E. Casey Foundation http://www.aecf.org
• Center on Wealth and Philanthropy – Boston College
http://www.bc.edu/research/cwp
• Compasspoint Nonprofit Services http://compasspoint.org
• Grantcraft http://www.grantcraft.org
• Meyer Foundation www.meyerfoundation.org
• Transition Guides http://www.transitionguides.com
Articles
• Stevenson, Molly Cannon.2006. “Safeguarding Organizational Capacity.”Cause Planet. no.
11(July 28,2006), http://www.causeplanet.org/articles/article.php?id=11
• Stevenson, Molly Cannon. 2007. “Transition Planning and Management Capacity.” Cause
Planet.no.60 ( March 2,2007) , http://www.causeplanet.org/articles/article.php?id=60
• Tierney, Thomas. 2006 “The Leadership Deficit”. Stanford Social Innovation Review.
(Summer, 2006), http://www.ssireview.org/articles/entry/the_leadership_deficit
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23. Presenters
Molly Cannon Stevenson, CFRE, CAHP Judy Hudson-Trujillo,
Principals In Philanthropy Trujillo Group, inc.
MStevensPIP@aol.com Judy@TrujilloGroup.net
Ph. 303-290-0213 ph. 720-333-1540
www.TrujilloGroup.net
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