Defining a Field of Practice:

Guiding Principles for Executive Transition and Leadership Continuity Practice

A Resource Developed by the Executive Transition and Leadership Continuity Affinity Group

of the Alliance for Nonprofit Management

Adopted September 15, 2014 Revised August 31, 2017

Written by 2014 Standards Task Force Members Executive Transition and Leadership Continuity Affinity Group

Adams, Tom (Co-Chair) – Director, Raffa, PC Ridge, Kathy (Co-Chair) – Founder, Levridge Resources

Gaston Huey, Sara – Principal, +Capacity Heath, Liz – Principal, Sound Nonprofits

La Salvia, Thomas – Senior Consultant, Raffa, PC Sbarbaro, Cory – Principal, Turnpoint Consulting

Wilcox, Jeffrey – Third Sector Company Yeager, J.R. – Yeager And Carlson LLC

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DefiningaFieldofPractice:GuidingPrinciplesforExecutiveTransitionandLeadershipContinuity

UpdatedAugust31,2017

CONTENTS

INTRODUCTIONANDOVERVIEW......................................................................................................................................3

OurPurpose............................................................................................................................................................................4

OurApproach.........................................................................................................................................................................4

EXECUTIVETRANSITIONANDLEADERSHIPCONTINUITY...................................................................................6

Definition..................................................................................................................................................................................7

PrinciplesfortheFieldofExecutiveTransitionandLeadershipContinuity(Org.Transition)..........7

EXECUTIVE/CEOTRANSITIONANDSEARCH...............................................................................................................9

Definition..................................................................................................................................................................................9

TypesofEngagements........................................................................................................................................................9

ThreeStages............................................................................................................................................................................9

PracticeGuidelinesforExecutiveTransitionandSearchPractice..............................................................10

CoreCompetenciesandCharacteristicsofEffectiveCEOTransitionandSearchConsultants........11

INTERIMEXECUTIVELEADERSHIP...............................................................................................................................13

Definition...............................................................................................................................................................................13

TypesofInterimLeadershipRoles............................................................................................................................13

FiveStagesofanInterimExecutiveWorkwithOrganizations.....................................................................15

PracticeGuidelinesforExecutiveInterims............................................................................................................16

CoreCompetenciesandCharacteristicsofEffectiveInterimLeadership.................................................17

CLOSING..................................................................................................................................................................................20

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INTRODUCTIONANDOVERVIEW

Anexecutivetransitionisacriticaltimeofopportunityandriskforallorganizations.Fornot---for---profit/social---purposeorganizationsandtheirboards,itisanespeciallychallengingtimecarryingwithitaddeddemandsandresponsibilities.Yet,formanyorganizations,anexecutivetransitionprovidesoneofthemostsignificantopportunitiesfororganizationaltransformationandpositivechangeinthelifeoftheorganization.

Awell---managedexecutivetransition,andtheyearsthatprecedeit,offerleadersandstaffauniqueopportunitytoadvancethepoweroftheirorganizationtoachievemissionimpact.Conversely,therearealsocountlesscautionarytalesoforganizationsthatflounderedorwereforcedtoclosetheirdoorsduetoaninabilitytonavigateanexecutivetransitionsuccessfully.Despitetheobviousimportanceofmanaginganexecutiveturnoverwell,boardleadersdonotfollowbestpracticesoftenenoughwhentheirexecutiveleaves.Executivetransitionmanagement,aprovenandgrowingpractice,isanunknown,misunderstood,and/orunder---usedpractice.Someboardleadersrelyoninstinct,pastexperienceoruninformedcommonsensetomanageacomplexsetoforganizationalquestions.Othersattendexclusivelytothecandidaterecruitmentprocess,fromamisplacedbeliefthatsimplyhiringsomeonewithsolidadministrativeandfundraisingskills,orsomeonewhoresemblesthemostrecentexecutive,guaranteessuccess.Failuretoassessissuesimportanttothelong---termhealthoftheagency,e.g.,reviewingtheviabilityofthecurrentbusinessplan,cansetanewEDupforaruggedfirstyear,ifnotfailure.

Fordecades,someoftheolderandmorematurenonprofitsintheUnitedStatesandaroundtheworldhavepaidcloseattentiontothedynamicsofexecutivetransitions.TheGirlScouts,theUnitedWay,theYMCAoftheUSAareamongafewwhohaveconcludedthattheinvestmentinexecutivetransitionservicespayssignificantpositivedividendsfortheindividualorganizationandthestrengthandreputationofthenetwork.Additionally,inthe1990stheW.K.KelloggFoundationfundedamajorfive---yearstudyofhowcommunity---based,nonprofitorganizationsmightgetbetteroutcomesattimeofexecutivetransition.Thiseffort,ledbyNeighborWorksAmerica,resultedinthecollectionofexistingliteraturefromtheinterimministryworkincertainProtestantdenominationchurches,workwithlegalservicesorganizationsandotherfieldsonmanagingexecutivetransition.However,itisnotjustthelargeandmaturenonprofitsthathaveembracedinterimmanagement.Smallernonprofitswithoperatingrevenueof$1millionorlesshavegainedaccesstoexecutivetransitionservices.Thishasbeenparticularlyvaluablewhentheirexecutivehasdepartedforwhateverreasonandtheyhavenooneonstaffcapableofservingthepositiononaninterimorlong---termbasis.

Sincethe1990s,agrowingfieldofpractitionershasdevotedprofessionalexpertiseandenergytoconsultingwithandservingnonprofitorganizationsspecificallyduringtimesofexecutivetransition.From2000to2005,theAnnieE.CaseyFoundationsupportedaninitiative,whichincludedbuildingofthisfieldofpracticeandadaptingsuccessionplanningforthenonprofitsector.

Aspartofthisexpansionofthefieldofpractice,theAllianceforNonprofitManagementdevelopedthefirstnationalaffinitygroupfocusedonexecutivetransition.TheinitialmemberswereexecutivetransitionconsultantsandInterimExecutives;someworkedformanagementsupportorganizations(MSOs),someforfor---profitcompaniesandothersweresoleproprietors.

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Theseearlymemberssharedadeepbeliefthatplannedandfacilitatedattentiontothetransformationalopportunitiespresentedinanexecutivetransitionwasamongthemostpowerfulwaystoincreasetheeffectivenessandimpactofindividualorganizationsandthesector.Fromthiswork,abodyofknowledgeandestablishedprinciplesofpracticehaveemerged.TheseprinciplesareestablishedinanumberofpublishedbooksbypractitionersandarticlesintheNonprofitQuarterlytheStanfordSocial,InnovationReview,amongotherleadingpublications.BoardSource,AmericanSocietyofAssociationExecutives,nationalandlocalfoundationsandmanyotherassociationsusethesepracticestoguidetheirmembersthroughexecutivetransitions.

OurPurpose

TheinitialfocusoftheAllianceforNonprofitManagementAffinityGroupwasexecutivetransition.ItwasforthisreasoncalledtheExecutiveTransitionManagementorETMAffinityGroup.In2011,membersattheannualmeetingacknowledgedthatthefieldofpracticewasgrowingtoincludeongoingleadershipdevelopmentandsuccessionplanningbothpriortoandafterthemomentofaleadershiptransition.Weagreeditneededalargeridentification.Tothisend,theAffinityGroupbecametheExecutiveTransitionandLeadershipContinuityAffinityGroup.

Thispaperisintendedasafirstdraftdiscussiondocumenttobringtogetherpractitionersofexecutivetransitionandleadershipcontinuitywhoarecommittedtoleveragingleadershiptransitiontoadvanceorganizationaleffectivenessandimpact.Whileourtwomostdevelopedpractices–executive/CEOtransitionandsearchandInterimExecutive–arepresentedasseparatepractices,inrealitythereisoftenmuchoverlapbetweenthetwo.Thoughwebeganthisinitiativeasanefforttoidentifyandadvance“standards”forthisemergingfield,ithasevolvedtoanefforttodefinethefieldsofpracticeandoffersomebeginningprinciplesofpracticeandcorecompetenciesthoughttobeimportanttothework.Standardsofpracticewillemergeovertimeastheprinciplesbecomeingrainedandtestedthroughoutthenonprofitsector.

Likemanyprofessionalfieldsbeforeus,wearecommittedtoongoinglearningandtherefinementandevolutionofourworktobettersupportourcommunities.Weseektobroadenthenumberofprofessionalsconnectedtoandinterestedinthisworkandorganicallygrowourfieldofpracticeoverthenextdecades.

Weholdasharedbeliefthat,throughincreasedawareness,educationandcross---fertilizationwithrelatedfieldsofcapacitybuilding,thisworkwillcontinuetomakeasignificantandgrowingimpactontheroleofthenot---for---profitsectorandthegoodoursectordoesthroughouttheworld.

OurApproach

Ourapproachseekstodefinebroadlytheworkofexecutivetransition,organizationalsustainabilityandleadershipcontinuityandoffersobservationsonhowweseeourpracticesconnectingtoothercapacity---buildingfieldsaswellasthebroaderfieldsoforganizationaldevelopmentandmanagementconsulting,amongothers.

Theremainderofthisfirstdraftmovesintodetailaboutourtwomostestablishedpractices,executivetransitionconsultingandInterimExecutiveengagements,andincludes:

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• DefinitionofPractice• TypesofEngagementsandIntendedImpact• StagesforthisTypeofEngagement• PracticeGuidelines• CoreCompetenciesandCharacteristicsofConsultants• OtherCharacteristicsandAttributes

EXECUTIVETRANSITIONANDLEADERSHIPCONTINUITY

Becausethereisafairamountofjargonandavarietyofsimilarsoundingtermsassociatedwithourpractices,termsaredefinedineachsectionofthepaperastheyareintroduced.ThegraphicbelowisintendedtorepresentthecollaborativeworkingrelationshipbetweenInterimExecutivesandExecutiveTransitionconsultants.ThespecificrolesplayedbyInterimExecutivesandExecutiveTransitionconsultantsvarybasedontheorganizationanditsneeds.

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Definition

ExecutiveTransitionandLeadershipContinuity(OrganizationalTransition)–Asetofconsultingpracticesthatsupportsorganizationleadersinpreparingforandmanagingkeyleadershiptransitionstoproactivelybuildafoundationonwhichnewleadershipwilladvanceorganizationalcapacitytoincreasemissionimpact.

Asdescribedabove,professionalsengagedinassistingorganizationswithleadershiptransitionsandleadershipcontinuityplanningcomefrommanydisciplines.Broadlyspeaking,thefieldattractsindividualswhoviewthemselvesasmanagementconsultants,organizationaldevelopmentconsultants,executivecoachesorhumanresourcesprofessionals,amongmanylargerfields.Oneofourgoalsasanaffinitygroupistostrengthenconnectionswiththeselargerareasofpracticebothtocontinueourlearningandtoimprove(orenhance)practiceinthosefields.

Fromamorefocusedperspective,weviewourfieldofexecutivetransitionandleadershipcontinuityasincludingconsultantsandotherprofessionalsengagedinexecutivetransitionandsearchservices,InterimExecutiveleadership,successionplanning,sustainabilityplanning,boardrecruitmentanddevelopment,executivecoaching,changemanagement,leaderdevelopmentandtalentmanagement,amongothers.

PrinciplesfortheFieldofExecutiveTransitionandLeadershipContinuity

Wesuggestthefollowingprinciplestoguideourworkandthatofprofessionalsengagedinworkdescribedaboveasrelatedtoexecutivetransitionandleadershipcontinuity.BecauseofthecloseconnectionbetweenInterimExecutiveandexecutivetransitionandsearchpractices,weareproposingonesetofprinciplesfortheoverallfield.Thisinitialdraftwillbeshapedfurtheroverthenextseveralyearsbyprofessionalsinthefield.Whenwereachastrongconsensusonprinciples,wewilladoptthesemoreformally.

Thesuggestedprinciplesinclude:

1. Values---Based---Weaspiretoprovideconsultingservicesthatarebasedon:

a. Respectforclientandorganizationalstakeholders,andtheirperspective

b. Honestyandtransparencyincommunicationsandallaspectsofengagement

c. Integrityandtrustworthiness

d. Mindfulofdiversity,multiculturalperspectivesandinclusionissues

e. Accountability,thoroughnessandefficiency

f. Commitmenttobothprocessandresults

g. Sharedexperienceamongprovenconsultantsinthefield

2. Informedbypracticeexperience,resultsandsoundresearchdata

3. Maintainsanindependentandobjectiveperspective,withanopenmindandnoallegiancetoanyparticularstakeholderorpre---ordainedoutcome

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4. Viewstheorganizationasadynamicsystemthatfostersandsupportsindividualandcollectivechange

5. Commitmenttoadaptingtocontextandrequirementsofsituation;tobuildingonstrengthsandtocontinuouslearning

6. Willingnesstogrowinself---awarenessandtobeacalmingpresenceandeffectivefacilitatoroflearningandchangewiththeclient

7. Commitmenttorecognizeandbuildonorganizationalandleaderstrengths

8. Aspiretolaserclarityaboutwhoistheclient,theagreeduponscopeofwork,theconditionsforsuccess,andprocessforreviewingresultsandlearning

9. Ongoingcommitmenttoethicalpractice,continuouslearningandpracticeimprovement

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Definition

EXECUTIVE/CEOTRANSITIONANDSEARCH

Asetofconsultingpracticesthatsupportdepartingandarrivingexecutives/CEOs,theBoardandstafforganizationalleadersinpreparingforandmanaginganexecutivetransition.Thetransition,whichincludesthreephases,resultsinconsensusamongBoardandmanagementonstrategicdirection,expectationsandrequiredcompetenciesofthenewleader.Thesepracticesresultinasuccessfulexecutivehireandonboardingprocessthatadvancesorganizationaleffectivenessandimpact.

TypesofEngagements

Mostexecutivetransitionsinvolveoneormoreofthefollowingtypesofengagements:

1. SustainingSuccess–Ahighperformingorganizationwithapositivereputationandawell---

plannedexecutivetransitionaimedatsustainingandbuildingonthecurrentleveloforganizationaleffectiveness.

2. OrganizationalTurnaround–Anunder---performingorstrugglingorganizationwhereconfidenceofmanagementand/orkeystakeholdersisweakordecliningbecauseofoneormoreperceivedunaddressedorganizationalchallenges.

3. FounderorFounder---likeExecutiveDeparture–Anorganizationwhosefoundingexecutiveorlong---tenuredortransformationexecutiveisdeparting,oftenrequiringmajorshiftsinresponsibilityfortheboard,managementandhand---offofkeyfundinganddonorrelationships.

4. Start---upExecutive–Anorganizationthatisjustformingandhiringitsfirstexecutiveoristransitioningfromavolunteer---ledandstaffedorganizationtoonewithitsfirstpaidexecutive.

5. OrganizationalAssessmentandDiscernment–Someorganizationsfindithelpfultotakeamoreintensivetime---outtoassessoptionswhenexecutivetransitionoccurs.Thismayoccurforavarietyofreasons–adesiretomakesurethemissionisstillrelevant,toensurethatfunderandstakeholdersupportforcontinuing,toaddressamajorchangeintheenvironmentorcommunityserved,etc.Thisdeeperassessmenthelpsanswerthequestions:Arewereadytoseekanewexecutive?Towhatend?

ThreeStages

MostpractitionershaveadoptedathreephasemodelthatwasdevelopedfromtheirexperienceandfieldresearchsupportedbytheW.K.KelloggFoundation.Thephasesinclude:

Prepare–processofengagingBoard,staffandkeystakeholdersasappropriateinreviewingorganizationalstrategicdirection,identifyingkeytransitionissuesandpotentialthreatstotheongoinghealthoftheorganizationaswellasthedevelopmentofapositionprofileandrecruitmentstrategythatclearlyalignsrequirementsofanewexecutiveleaderwiththeorganization’s

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priorities.StartinginthePreparephaseandcarryingthroughtheentireengagement,board,staffandotherimportantstakeholdersareassistedinmovingthroughthepsychologicalstagesofembracingachangeinleadershipandanychangesinorganizationalprioritiesandstrategiesthatemergeintheassessmentandplanningprocess.

SearchorPivot–processofreviewingpotentialforinternalsuccessionand/orconductingaproactivesearchthatresultsinadiversefinalistpoolthatmeetsthedefinedleadershiprequirements.Duringthesearchprocess,agreed---upontransitionissuesareaddressedtoincreasethelikelihoodofsuccessforthenewexecutive.

Onboarding/Post--hireorThrive–processofbuildingastrongfoundationforthesuccessofthenewleader;planningforandexecutingthewelcomeandorientationofthenewexecutive,supportingher/himinbuildinginternalandexternalrelationships,establishing90---and180---dayperformancegoalswithclearmechanismsforfeedbackandreviewresultinginapositiveboard/executivestaffworkingrelationship.

PracticeGuidelinesforExecutiveTransitionandSearchPractice

Thefollowingarepracticeguidelinesthatconsistentlyresultinhiringofanewexecutivewhomeetsthecurrentandfutureleadershipneedsoftheorganization,fitstheorganizationalculture,meetsorexceedsexpectationsandremainsinher/hisleadershippositionforthreeormoreyears.Thepracticeguidelinesare:

1. Attentiontoboththeorganizationaltransitionandsearchisrequiredforsuccess.

2. Eachexecutivetransitionisunique;thequalityoftherelationshipbetweentheincumbentexecutiveandtheBoardsignificantlyinfluencesthechallengesandopportunities

3. Therearepatternstoexecutivetransitionandaprovenpractice–executivetransitionandsearch–whichreducerisksandadvanceorganizationalcapacity,ensureasuccessfulfoundationforthenewleaderandoptimizethelong---termhealthoftheorganization.

4. Effective,transparentandhonestcommunicationduringtransitionandattentiontosuccessionandsustainabilityplanningpriortotransitionincreasethelikelihoodofasuccessfultransition.

5. Asuccessfulexecutivetransitionresultsinnewleadershipthatisbuiltonapositiveandclearexecutive---boardrelationshipfromtheoutset.

6. Areviewofstrategicdirection,missionandotherkeysustainabilityfactors(culture,finances,resourcedevelopmentandleadership)isrecommendedtobestinformtherequirementsandprioritiesforthenewexecutive.Clarityofmutualperformanceexpectationsandmeasuresofsuccessbetweenthenewexecutiveandboardiscriticaltothetransitionprocess.

7. Internalsuccessionisanexecutivetransitionandrequiresproactiveplanningandatransparentprocessoftheexecutive,theboard,thestaffandpossiblesuccessor(s).Requiresthesameplannedonboardingprocessforthefirst3–6monthsasanexternalhire.

8. Aproactiveexecutivesearchthatidentifiesadiversepoolofcandidateswhomeettheleadershipprofilebestadvancesthetransitionandempowerstheselectedexecutivecandidate.

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CoreCompetenciesandCharacteristicsofEffectiveCEOTransitionandSearchConsultants

Effective,successfulexecutivetransitionconsultantsdemonstratethefollowingcorecompetencies:

In--depthKnowledgeoftheNonprofitSector

• Workingknowledgeofnonprofitgovernance,culture,leadershipstyles,modelsandstructures,legal,financial,taxandauditrequirements,fundingstreams,humanresources,subsectors,aswellasthenonprofitlifecycleandroleexpectationswithinanonprofitorganization

In--depthKnowledgeofConsultancyStagesandPractices

• Strongprojectmanagementandadministrativeskills• Knowledgeoforganizationalassessmenttoolsandpractices;abilitytocollect,analyzeand

actonqualitativeandquantitativedatafrommultiplesourcestoprovidearapidcomprehensiveassessmentofanorganization’sstrengthsandneedsinthecontextofaleadershiptransition

• Strongfacilitationskillswiththeabilitytomaintainneutrality,manageindividualemotionsandgroupdynamics,andbuildconsensuswithgroups,particularlyduringtimesofheighteneduncertaintyandanxiety

TransitionandChangeManagementExpertise

• KnowledgeoftheExecutiveTransitionManagement(ETM)modelorsimilarapproachestoexecutivetransition,whichincludeattentiontoorganizationaldevelopmentopportunitiesandchallengesaswellasthesearchforanewexecutive.Abilitytoidentifyandcommunicatestrategicchoicesinherentinexecutivetransitions

• Coachingskillsandabilitytomotivatestakeholdersandleadthemthroughorganizationalchange

• Abilitytoengageorganizationalconstituents/stakeholdersinaninclusiveprocesstoensurealignmentofstrategicgoalsandexpectations

• Abilitytoworkwithanddevelopvolunteerboardsthatmaybeperformingtheirroleatalessthanideallevel,andsupportingthemtoenhancedlevelsofleadershipofandaccountabilitywithintheorganization.

• Abilitytoaligntheexecutivepositiondescriptionbasedontheorganization’scurrentstate,culture,futuregoalsandthecommunityenvironmentinwhichitoperates.

• Abilitytoemotionallyengageandsupportboththeoutgoingandincomingexecutives,facilitatinghealthyandsupportiveendingsandbeginningswiththeboardandorganizationasawhole.

OrganizationDevelopment/Capacity--buildingKnowledge

• Understandingoforganizationalsustainabilityissues• Knowledgeandcapacityinwholesystemsthinkingandabilitytoapplythisinthecontextof

executivetransitions• Understandingofleadershipcontinuityandtalentdevelopment

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StrongCommunicationsSkills

• Abilitytoworkandcommunicatewithempathyacrossmissions,diverseculturesandpeople,andprofessionaldisciplinesinanonprofitsetting

• Strongverbalandwrittencommunicationskills• Abilitytoenergizeandfocusorganizationleadershiptobuildtheboard---staffpartnershipin

supportoforganizationalsustainabilityandleadershiptransition• Abilitytofacilitatedifficultconversationsandmanageconflictresolution

RecruitingSkills

• Abilitytopromoteandmarketleadershippositions• Abilitytogenerate,nurtureandcoachapoolofqualifiedcandidates• Abilitytoaccessanddevelopadiversepoolofqualifiedcandidates• Abilitytobuild,maintainandleveragerelationshipsacrossmultipleanddiversenetworks

ScreeningandInterviewingSkills

• Abilitytorecognizetalentedcandidates• Abilitytomanageadetailed,fast---pacedrecruitmentprocesswithmultiplestakeholdersand

demandingneedsandtimelinesflexiblyandnimbly• Abilitytodeveloprelevantinterviewquestionsbasedonthejobrequirementsandtotrain

committeemembersonappropriateandlegalinterviewprotocolsandskills• Abilitytofacilitatepost---interviewdiscussionstobringconsensusregardingfinalists• Abilitytoassistatransitioncommitteetodevelopscreeningskillsandexperienceandto

provideexpertise/guidanceonidentifyingtherightleadershipfortheorganization• Abilitytoconductin---depthcomprehensivereferencechecks

Post--Hire/OnboardingSkills

• AbilitytohelpBoardandnewexecutiveformatrustingandtransparentpartnershipandsetperformanceexpectationsofeachotherfrominterviewprocesstothehiredateandbeyond

• Abilitytohelpintegratethenewexecutiveintoorganizationbothonsiteandinthecommunity

• AbilitytocoachnewexecutiveandtheBoardtoidentifyandaddressshort---andlong---termprofessionaldevelopmentneedsinordertoensuresheorhehasalltheskillsandtoolsneededtoperformthejobatfullcapacity

• AbilitytohelpdevelopperformancegoalsforthenewexecutiveandhelpnegotiateanagreementbetweentheBoardandtheexecutiveonperformancemeasurements

• AbilitytoassisttheBoardtorefineitsgovernanceandoversightfunctionsinlightofthecurrentsituationwithoutmovingtotheextremesofmicromanagementortoomuchdetachment.

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Definition

INTERIMEXECUTIVELEADERSHIP

Anexperienced,professional,interimexecutiveisahighlyskillednonprofitleader,wellversedinbothnonprofitbusinessandchangemanagement,whobringsanobjectiveperspectiveandcanleadaboardandstaffthroughanorganizationaltransitionwhileaddressingspecificstabilization,sustainabilityandcapacity---buildingneedsoveratime---limitedperiod.

TypesofInterimLeadershipRoles

ExecutiveTransition

ThemostcommonpracticeofInterimExecutivemanagement,theexecutivetransitioninterimprovidesorganizationalleadershipandcapacity---buildingservicesfollowingthedepartureofaleadershipposition.Inmostcases,thesuccessorisyetunknownandtheinterimassistsanorganizationwithbothahumanresourcesolutionandanorganizationaltransformationprocessforsustainability,thoughtfulsuccessionandmissionadvancement.TheInterimExecutivecanhelptheorganizationassesscurrentcommunityneedsandorganizationalreadinesstocorrectlyprofilethejobdescriptionneededfortheincomingexecutive.Insomecases,especiallywithsmallerorganizations,theInterimExecutivemayconductorprovideothersupportforthesearchprocess.

FounderTransition

Thedynamicssurroundingthedepartureofafounderoraparticularlylong---tenuredandreveredexecutivecanbeparticularlychallengingtomovethrough.Iftheyarenotidentifiedandaddressedbeforethenewexecutivearrives,thosedynamicscanderailtheleadershipofthesuccessor.Asastrategyforensuringtheorganizationsuccessfullymanagestheseparationfromafounder,someboardswillbringinaninterimEDforaperiodof6monthsormoretoallowtheorganizationtimeto“letgo”ofthedepartedfounderandbereadytoembracethepersonalityandleadershipstyleofanewanddifferentexecutive.

InauguralExecutivePosition

Asanorganizationevolvesfromall---volunteertohavingafirst---timepaidexecutive,thistypeofInterimExecutiveplaysastrategicroleinestablishingastartupinfrastructure.Nothavingapersonallong---termvestedinterestinthelong---term/regularposition,thenewpositioninterimcreatessystems,buildsthecapacitiesformeasuredgrowthwithanaddedhumanresource,formsorganizationalalignmentbehindanewinfrastructure,anddevelopsfirst---timeprocessesthatwillbelaterinheritedbyapermanentexecutivetorefineasherorhisown.

OrganizationalDissolution

Whenanorganizationhasconcludedthatthesustainabilityofitsmissionhasbeenpermanentlycompromised,thedissolutioninterimischargedwithappropriatelyandlegallysunsettingthe

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nonprofit.Therewillbenosuccessor.Thereisthepotentialforhigherthanaverageinvolvementwiththepredecessor.Thedissolutioninterimspecializesincreatingbefittinglegacies,appropriatelyeliminatingtheworkforce,assuringlegaldocumentdestructionorstorageandfulfillingallobligationstotheorganization’sstakeholders.

MergerandAcquisition

Intoday’senvironment,thenumberofnonprofitschoosingtomergewithothernonprofitsortoacquireservicesthataugmenttheirmissionstatementsisgrowing.Mergerandacquisitioninterimsofferspecialtalentsthathelpnonprofitboardstonavigatethepoliticallychargedandlegallycomplicatedprocessesofformingneworganizationsorradicallymodifiedstructureswithafocusonaddressingtheorganizationalcultureissuesthataccompanysuchdecisions.

CourtAppointment

Wheneveranonprofitorganizationfilesforbankruptcy,thecourtsmayelecttocontractforanindependent,third---partyassessmentandwillissueacontractforindependenttemporarymanagementofthebankruptenterprise.Theoutcomeistorenderanexpertopinionabouttheperceivedabilityoftheorganizationtoemergefromitsbankruptcyproceedings.Suchinterimshavespecializedskillsatrunningnonprofitswhileinbankruptcyandrenderingopinionsconsidered“expertwitnesstothecourts”regardingthefutureofthenonprofit.

LeaveofAbsence

TheleaveofabsenceInterimExecutiveisprecededandsucceededbythesamelong---term/regularexecutiveusuallywithadefinedlengthofserviceaswellasparametersforinfluencingorganizationalchange.Theleaveofabsenceinterimprovidesatemporaryhumanresourcesolutiontomaternityleaves,short---orlong---termdisability,sabbaticalandotherextendedabsences.Theseprofessionalsoffercapacity---buildingopportunitiesthatprovideassessments,designandimplementenhancedsystems,andassuremanagementcontinuityaimedatmaintainingorincreasingeffectivenessandefficienciestobenefitboththeorganizationandthereturningprofessional.

SeniorManagement

Asthefieldofinterimleadershipgrows,large,complex,nonprofitorganizationsarefindingtheneedforInterimExecutivesattheseniormanagementlevel.Thepurposeofsuchplacementsmaybetodevelopandtestanewpositionwithintheorganization,toserveinapositionwhentheincumbentisabsentforanextendedperiodoftimeortofulfilltheresponsibilitiesofthepositionwhenselectionofthesuccessorwilltakeasignificantamountoftime.ThesecanincludeaninterimChiefFinancialOfficer,InterimDevelopmentDirector,etc.

Turn--AroundIntervention

Whenanonprofitisassessedtobeinastageofdeteriorationordeclineincludingthepossibilityofclosure,anorganizationturnaroundledbyaninterimexecutivewithturnaroundexperienceissometimesneeded.Thisworkbeginstypicallywithanorganizationalassessmentaimedatbetterunderstandingorganizationstrengthsandchallengesanddevelopingagreementonshort---term

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priorityactionsrequiredtoreturnorganizationtoamorestablestate.Turnaroundinterventionsofteninclude:workingwithboardofficerstorebuildtheboard;revisitingtheviabilityandsupportabilityofthemission;examiningbusinessandstaffingmodels;studyingcostandfeestructures;andbuildingnewfundingsources,amongotherturnaroundinterventions.OrganizationsinthisstageoftenneedaqualifiedinterimexecutiveforuptoayearormorewhilethecompletedturnaroundwilllikelytakeseveralyearsundertheleadershipofaskilledExecutiveDirectorhiredtocompletetheturnaroundandstabilizetheorganization.

FiveStagesofanInterimExecutiveWorkwithOrganizations

DefiningExpectations

Beforetheinterimengagementisstarted,in---depthdiscussionsareheldtoidentifyultimateexpectationsoftheproject.Thoseexpectationsthenformthebasisfortheengagementdocumentsignedbybothparties.Ofcourse,theymayberevised,especiallyaftertheassessmentiscompleted.

Assessment

Anorganizationalassessment,usingagreed---upontoolsandprocesses,isthefirststepinasuccessfulinterimengagement.Theassessmentisanobjectiveanalysisofleadershipandmanagementpoliciesandpracticesbasedoninputfromselectedindividuals,documentreviewandcomparisonwithacceptedstandardsofthenonprofitsectorandtherelevantfieldofservice.Attentionisgiventoadministrativeelementsimportanttothelonger---termhealthandsustainabilityoftheorganization,e.g.,theorganization’sbusinessplan,talentdevelopmentpractices,andfundraisingstrategiesandprojections.AnassessmentreportisprovidedtotheBoardofDirectors,whichincludesasetofrecommendationsfortheboard’sconsideration.

CreatingtheInterimWorkPlan

Basedontheassessmentfindingsandrecommendations,aprioritizedplanfortheinterimengagementisdevelopedbytheboard,andresponsibilitiesareassigned.Thisdocumentmayhavetheeffectofrevisingtheengagementdocument.Further,theplanmaynotincludeallassessmentrecommendations,leavingsometobeaddressedoncethenewexecutiveisbroughtonboard.

ImplementingtheInterimWorkPlan

Mostofthetimewillbespentintheparallelactivitiesofmanagingcontinuedoperationswhilemovingforwardtoachievethegoalsofthetransitionperiodplan.ThereisatoughbalancefortheInterimExecutivebetweenmanagingtheday---to---dayoperationsofthecurrentorganization,assessingandevaluatingtheorganizationforfuturestability,andbeinginvolvedinstrategicrecommendationsfortheshort---andlonger---termfuture.TypicallyanInterimExecutivewouldnotmakestrategicdecisionsandcommencestrategicactivitieswiththeboard,instead,leavingthosewellpositionedtobeundertakenandsuccessfullyimplementedbytheincomingexecutive.TheInterimExecutivemayalsohaveaprimaryorsupportroleinthesearchforanewleader;itisespeciallyhelpfultoinvitetheInterimExecutive’sperspectiveindevelopingthenewjobdescriptionbasedontheirinterimexperience.

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PavingtheWayfortheSuccessorExecutive

ItisessentialattheoutsetoftheengagementthattherebeclarityonthefactthattheInterimExecutiveisonlypresentforthedurationoftheengagement.Thisrequiresadelicatebalancebetweenbecomingatrustedleaderoftheorganizationandbeingonewhoisn’tthereforthelonghaul.Attheendoftheengagement,thedeparturemustbecrispandcompletewithsymbolichandingoverofthereinstothenewleader.Aplannedexitneedstobeorchestratedwiththefocusonpositioningtheincomingexecutivedirectorforsuccess.TheInterimExecutiveusuallypreparesafinalengagementreportontheprogressofsuccessmeasuresandupcomingtasksandactivitiesrecommendedforthenewexecutive.

PracticeGuidelinesforExecutiveInterims

OrganizationallyFocused

Asuccessfulinterimisrespectfuloftheorganization’smissionandtherelevancyofthatmissioninthecurrentenvironmentaswellastheneedsofthecommunity.ThegoalsoftheinterimperiodandtheassessmentoftheorganizationtobedonebytheInterimExecutiveaddresstherelevancyofthemissiontothecommunity.

ChangeAgent,NotaCandidate

Inordertomaximizeobjectivityandeffectivenessasachangeagentduringtheexecutivetransitionperiod,itisimportantthatInterimExecutivesnotbeacandidatefortheregularExecutiveDirectorposition.Theinterimservesfromanobjectiveperspectiveonatime---limitedcontract.

ProvidesClear,PositiveLeadership

Inordertostabilizeandmovetheorganizationforward,theinterimmustprovidestrongrelationshipmanagementandleadershiptopeople(staff,board,volunteersandstakeholders)intransitionandoften,crisis.

FocusedonPerformanceGoals

WiththeBoard,theinterimdevelopsperformancegoalsanddesiredoutcomesatthestartofanengagementandrevisitsthemregularlyastheassignmentunfolds.

AlerttoConflictsofInterest

Asuccessfulinterimavoidsallconflictsofinterestandbringsallpotentialconflictstothechairand/orexecutivecommittee.

AvailablefortheDurationoftheEngagement

TheInterimExecutiveremainsavailableforthedurationoftheinterimperiodunlessnegotiateddifferentlyupfront.Theinterimroleisthereforenotsuitedforactive,between---jobsjobhunters.

WorksWithinaSpecific,NegotiatedDegreeofAuthority

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Whiletheremayberareexceptions,mostinterimengagementsrequirethefullfocusofaninterim,althoughthatmaynotalwaysbefulltimeintermsofhours.Atthestartofanengagement,thedegreeoftheinterim’sauthorityinmajoradministrativeareasisnegotiatedwiththeBoardorExecutiveCommittee.

CommunicatesClearlyandBroadly

Throughouttheengagement,theinterimhasregular,“check---in”discussionswiththeBoardChairand/orExecutiveCommitteeaswellascommunicationswhencircumstancesrequire.

ProvidesLeadership

Leadership,guidanceandmentoringareprovidedtobothBoardandstafftoassisttheminimprovingwiththeirownperformancethroughouttheengagement.

CoreCompetenciesandCharacteristicsofEffectiveInterimLeadership

Effective,successfulInterimExecutivesdemonstratethefollowingcorecompetenciesandcharacteristics:

NonprofitSeniorLevelExecutiveExperience

Becauseinterimassignmentsaretransitions,aquicklearningcurveisessential,andtheInterimExecutiveneedstoarriveonthescenealreadypossessingprofessionalexperiencewithnonprofitgovernance,legal,financial,taxandauditrequirementsaswellasthenonprofitlifecycleandroleexpectationswithinanonprofitorganization.

In--depthKnowledgeofConsultancyStagesandPractices

Insomesituationstheinterimistheleaderandgeneralmanageroftheorganization,andinsomecasesheorshemayalsoassistintransitionconsulting.Inordertoaccomplishrapidassessmentofthesituationandquicklyandcorrectlyidentifyissues,knowledgeofneedsassessment,problemidentification,workandorganizationalsystems,organizationdevelopmentandprocessdesigniscritical.

TransitionManagementExpertise

Mostsituationsrequiringaninteriminvolvechange.Thenatureofthechangevariesandmayincludeleadershipchange(executive,keymanagerorboardleader);changeinprogramsordirection;changeinsystemsandinfrastructure,culturalchangeorsomecombination.Toeffectivelysupportorganizationsthroughchange,interimsneedanunderstandingandappreciationoftransitionmanagementaswellasexperiencesuccessfullyfacilitatingchangeprocesseswithgroupsandorganizations.

Capacity--buildingSkills

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Mostofthechangeworkdescribedaboveinvolvesassessingcurrentstrengthsandcapacityoftheorganizationandassistingleadersinarticulatingandadvancingaspirationsandgoalstoenhanceorganizationalcapacityandmissioneffectiveness.Knowledgeofandexperiencewithorganizationaldevelopment,includingappreciativeinquiry,smallgroupfacilitationandtechnicalareasofdesiredcapacitychange(governance,fundraising,finance,technology,amongothers)addsvalueastheinterimleadscapacitybuilding.WheretheInterimExecutivedoesnothavethecapacity---buildingskillstoaddressidentifiedneeds,heorshewillhavereadyaccesstoconsultantswhodo.

BusinessAcumen

AnInterimExecutivemustidentifyquicklyifthereisanimmediaterisktotheorganization,soasolidbackgroundandexperienceinfinancialpoliciesandmanagement,balancesheets,cashflowprojections,andfinancialmanagementpoliciesandpracticesisneeded.

Communications

TheInterimExecutivewillneedtomotivate,inspireandpresenttoadiverserangeofconstituents,includingboard,staff,majordonors,clients,andguests,andwillneedtobeabletocraftandadaptmessagesappropriatetoeachaudience.TheInterimExecutivewillneedexperiencepreparingandpresentingverbalandwrittenmessagesaswellasininfluencing,facilitatingandmeetingwithothers.

ProjectManagement

TheInterimExecutivewillbeinheritingcurrentprojectsandproductionworkoftheorganizationaswellasconductingassessmentandevaluationservices;creatingandmanagingtransitionleadershipactionswhilesimultaneouslyinitiatingnewprojectswithstafftomeetorganizationperformancegoalsand/ormitigateimminentriskstotheorganization.Therefore,theInterimExecutivemustbeabletodevelopprojectsthatcanbeaccomplishedbythestaff,board,andorganizationandcreateproject---basedworkplansandtimetablesthattrackprogressandstatus.Theinterimworkstoensuresuccessfulcompletionofprojectplansduringtheinterimperiodsotheycanbeeasilytransferredtotheincomingexecutive.

MultipleRoleManagement

TheInterimExecutivepossessesleadershipaswellasexperttransitionmanagementconsultingskillsandunderstandsthedifferencesinthosetworoles.Theeffectiveinterimwillbeabletoleadtheoperationsoftheorganizationwhilealsoadvisingtheboardandstaffofchangesandshiftsnecessaryforthefuturehealthoftheorganization.Atthesametime,theinterimwillnotassumetheleadershiprolefordeterminingandimplementingstrategy.

CommittedtoPersonalProfessionalDevelopment

Whileinterimsareexperienced,theyalsorecognizetheneedtobecontinuouslearnersinallareasrelatedtononprofitmanagement,operations,leadershipandgovernance.Theyactivelyengageduringandbetweeninterimassignmentsinlearningandpersonaldevelopmentsotheycanbring

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currentexpertiseandpersonalself---awarenesstothedynamicsoftheorganizationstheyserve.Theyarecontinuallystrivingtounderstandtheirownchallengesinworkingindifficultsituations.

Inadditiontotechnicalcorecompetenciesandskills,thesuccessfulprofessionalInterimExecutivewillexhibitahighlevelofthefollowingtraitsandcharacteristics:

InspireOtherstoActandMoveForward

Theinterimleaderisoftenengagedforashortperiodofseveralmonthssosheorhemustbeabletoquicklyassessandcommunicatetoothersinsuchawaytheyarewillingtomovequicklytopreparetheorganizationtomitigateanyimminentrisksaswellassettingthestageforanincomingexecutivetobesuccessful.TheInterimExecutivedoesnotallowanorganizationtostallorloseexistingmomentumtowardsustainabilitystrategies,nordoestheinterimleader“taketheorganization”backwardtoreassessorreexaminestrategicplanswhentheircurrentpathisontargetwiththemission,communityneedsandsustainablefutureoftheorganization.

FearlessTruth--Teller

InterimExecutivesareinauniqueroleandareofteninthebestpositiontohelpthenextexecutivedirectorbytellingthetruthinawaythatitisheardandacteduponbytheboard,stafforkeystakeholdersoftheorganization.TheInterimExecutiveisanindependentexpert,inatemporarycapacityofstewardshipoftheorganizationandnotacandidateforthepermanentEDrole,soitisincumbentonthemtomakesuretheboardleadershipisawareofthefactstheorganizationfacesthatmightjeopardizeitsfutureorthenewexecutive’schancestobeasuccessfulleader.

ThrivesinandEnjoysComplexity

ThedailytasksfortheInterimExecutiverangefromstrategicthinkingtomundaneprojectdetails.Therelationshipmanagementaspectsofthepositionareascomplexforalong---term/regularexecutiveandsometimesmoresoforanInterimExecutive.Theinterimmustbecomfortablewithandsuccessfulataddressingcomplexissuesandchallenges.

ValuesandDemonstratesaHighLevelofTransparency

Theboardofdirectors,keystaffandstakeholdersmusttrusttheInterimExecutivetorespondwelltochangeandoperationsshifts,sotheinterimmustbeveryaccessibleandtransparentintheirassessmentfact---finding,recommendationsandday---to---daydealings.

ListenswithoutJudgment;AccessibleandOpentoallVoicesandOpinions

Inordertogaintheconfidenceandactionoftheboardandstaff,theInterimExecutivemustdisplayneutralitysothatcommunicatingwithothersaboutthestateoftheorganizationisnotconstruedasjudgingor‘blaming’.This,therefore,allowsrecommendationstobeacteduponwithoutpeoplefeelingindictedforpreviousleadershipdecisionsoractions.Theinterimmustbecomfortablewithchaosandabletoprovidesteadyguidanceduringconflict.

Anorganizationinleadershiptransitioncanoftenbedestabilizing.Theinterimmustbeastabilizingforce,quicklycalmingchange---relatedemotionswithempathy.TheInterimExecutive

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motivatespeopletoworkwiththeorganization’sprioritiesandfocusestheorganizationonitsmission,purposeandtheworkathand.

ManagesSelfwithPositivityandGrace

Theinterimleaderwillhelpothersbecomeoptimisticabouttheorganizationanditsabilitytoovercomeleadershiptransitionsbydemonstratinggraceunderpressureandgivingstaffandboardtheconfidencethatanewexecutivecanbefoundtoleadtheorganization.

RelationshipOriented

Justasanyexecutiveengagement,theinterimleadermustbeabletodealeffectivelywithadiversityofconstituentsandstakeholderstoinfluenceandmanagetheminthebestinterestofthefuturestabilityoftheorganization.TheInterimExecutivewillfaceskepticismuponenteringtheorganizationandbeabletoquicklyputpeopleatease,gaintheconfidenceofboard,staffandkeystakeholders,andbuildtrustandwillingnesstoworktogetherforthebestinterestoftheorganization.

CLOSING

Thanksforyourinterestinthefieldofexecutivetransitionandleadershipcontinuity.TolearnmoreabouttheAllianceofNonprofitManagementandthecurrentactivitiesoftheExecutiveTransitionandLeadershipContinuityAffinityGroup(ETLC),gototheAllianceforNonprofitManagement.