Best Practices for Replacing a Long-tenured, Non-Profit CEO
As a search firm, we repeatedly encounter the following scene: A frantic Board Chair or Search Committee member calls because their esteemed founder and long-tenured leader (LTL) has decided to retire. The organization has no succession plan or otherwise strong internal candidates so they must engage a search firm.
It is never easy to replace a founder or otherwise LTL. This is typically someone who many consider a legend, a leader with a distinguished career, remarkable body of work and legacy of profound impact. Accordingly, boards of directors must navigate a sometimes unenviable duality that includes exiting the retiring CEO with grace, professionalism and respect, while partnering with the search firm to recruit the right leader at this stage of the organization’s life cycle. The process requires empathy, inclusivity, transparency, common sense and foresight.
Over the years, we have observed that a lack of cohesive succession or transition planning tends to make these situations decidedly more difficult. Even when a LTL attempts to groom a successor, they don’t always do so in alignment with the Board or the organization’s strategic plan. Thus, even if an internal candidate emerges at the eleventh hour, it is highly unlikely that the internal candidate will be championed by the Board.
In addition, many qualified external candidates shy away from these types of opportunities because they would rather be the person AFTER the person who replaces a legend, not the immediate successor. Understandably, the prevailing thought is that the LTL casts a long shadow and legacy, potentially making it difficult for the new leader to truly gain traction.
While an organization’s search for a new CEO or Executive Director may prove challenging, opportunity exists, and putting into place a few simple best practices will build the framework for success.
Manage the perception that “We’ll never find anyone as great as our LTL.” Of course, this assertion is nothing more than FEAR — False Evidence Appearing Real — and is absolutely not true. No one is irreplaceable. For every CEO search, there is always a cohort of “interested and qualified” candidates. Moreover, in many instances, when you look closely at the last five years of the LTL’s work, you will note a diminishment in overall performance, creativity and innovation. This natural phenomena opens a window of opportunity, making the case for the change management and strategic vision that a new leader will need to bring.
Get a good grip on your organization's “WOT of the SWOT.” Boards must take a good, hard look at the needs of the organization today and into the future, identifying what the new leader must tackle to take the organization to another level. In particular, the Board Committees must assess the organization’s weaknesses, opportunities and threats (WOT). Doing so will provide the bases for the “must-have” competencies, characteristics, skills and attributes that they seek in a new leader. When we speak with LTLs about their legacy, they invariably regret the initiatives, projects and imperatives that they simply ran out of time to navigate and complete before retiring.
Be objective, fair and open minded about the challenges your organization faces. While it’s okay to be deferential to the legacy, leadership and accomplishments of the LTL, now is the time to craft a message both internally and externally that a new era of leadership is needed. It is the Board’s job to make this happen.
Do not create a new strategic plan within one year of hiring a new leader. New leaders do not wish to inherit a strategy plan; instead, they should be a part of developing it. They are excited about their ability to bring a fresh perspective and vision to an organization that has only had an LTL. Ultimately, this will invigorate the organization, providing an opportunity for positive change.
Before the search is launched, conduct extensive stakeholder interviews. These include but are not limited to board members and direct reports as well as funders, elected officials, strategic partners and sponsors. These stakeholders will offer thoughts, opinions, ideas and perspectives about the new leaders “must haves” and Measures of First Year Success. The latter provides a glimpse into the 3-4 imperatives the Board wishes the new leader to accomplish in Year One that gives them strong momentum going into Year Two. We also encourage our clients to conduct an employee survey, allowing staff to express the qualities and attributes they would like to see in the next leader. This way, all employees feel like they have had substantive participation.
Do not allow the LTL to be involved in the final decision making and selection process. While we understand that LTLs have a vested interest in who will succeed them, they should in no way get to choose the successor or otherwise serve on the Search Committee. In fact, the LTL must take a back seat during the search so that candidates can be duly engaged and cultivated. No candidate wants the LTL to be a visible part of the interview or selection process. However, it is appropriate for the search firm to include the LTL in their stakeholder interviews at the outset of the search, and integrate them into one-on-one meetings with the two finalist candidates. There needs to be a strength of conviction from both the board’s Executive and Search Committees to honor and respect these boundaries.
We understand that replacing a long-tenured, legendary leader can be a daunting process. However, there is tremendous precedent and best practices that can and should be followed in doing so. By being thorough, objective, honest, courageous, transparent and strategic, a board can find the perfect successor to usher the organization into a new era with strength and conviction.