Why Nonprofit Succession Planning Often Fails

​Every day we work with organizations that are in transition. Some have already lost their Executive Director, while others are in the process of losing leaders that have been instrumental in their growth over the years. Regardless of when they bring us in, each organization is facing the same fundamental questions: “What do we do next?” and “Where should we go from here?”

Missing the mark with nonprofit succession planning.

These are the kinds of questions that succession planning can answer in advance. However. Most organizations simply do not have effective succession planning efforts in place before they need them. Even among organizations that have taken the time to put together a succession plan, it doesn’t always help them much when an unexpected situation arises because their plan falls short in scope. 

​So, why does succession planning for nonprofits so often fail? There are four main reasons we see time and again:

Timing
If succession planning is not done before it’s needed, it is simply less likely to succeed. Planning ahead of time increases the likelihood that you’ll make the best choices for the transition, not just the fastest or easiest decisions to get it done. A succession plan should answer key questions around what the transfer of leadership will look like and then be used to proactively communicate this key information to everyone involved so that they are prepared for whatever may lie ahead. Dave Lenox elaborates on the importance of early succession planning when he says,

Effective succession nonprofit planning is crucial for an organization to maintain its focus and purpose regardless of who is leading. Nonprofits accumulate valuable institutional knowledge and expertise over time. A well-executed succession plan helps create a transfer of knowledge from outgoing leaders to their successors, preventing the loss of critical information and experience needed to keep the organization serving its key audiences. For this reason, it is always a worthwhile endeavor for nonprofit leadership to plan for the future no matter what stage of their career they are in or what is going on within the organization!​

And, after you make the plan, don’t forget to update it regularly to stay relevant with the organization’s current needs. Checking in on your succession plan as part of your annual strategic planning initiatives is always a good practice.

Scope
Unfortunately, even the best intentioned and timed succession planning efforts can fail if the purpose of the plan is off. Getting the scope right is the next barrier that organizations face during their planning efforts.

Too often organizations view succession planning as simply a way to determine what will happen when a key leader (like their Executive Director or Board President) leaves and needs to be replaced. However, succession plans should be in place for all senior leadership roles and these plans should promote skills growth in the role after someone is hired as well as contribute to their ongoing professional development, especially in the case of co-leadership. When discussing nonprofit leadership transition Liz Swanson explains,

Hiring the Executive Director is the most important job of a Board of Directors. The next most important job after that is to effectively onboard your new leader and support them throughout their leadership transition. This is as much about the Board’s commitment to successful governance as it is about recognizing the strategic opportunity the transition brings for the organization… How the board supports the outgoing and incoming ED signals whether you want to help the new leader be successful in their role, and in turn, ensure the organization remains strong through this time of change. Shaping and implementing an intentional executive transition plan is a sign of how committed you are to succeeding together.

A succession plan that is not thorough enough will fail because it will only plan for one part of the journey of bringing someone new into the role. Finding someone new is certainly part of the process, but a succession plan must also spell out how the organization plans to onboard them properly and support them in the role afterwards. 

Get our Step-by-Step Guide to Creating a Succession Plan Now!

Stigma
Unfortunately, there tends to be a negative perception around succession planning at an organizational level. This stigma can thwart attempts to plan well for the organization’s future. Normalizing succession planning is key to organizational success and stability.
Leaving is an eventual inevitability because nothing lasts forever and recognizing that is healthy and productive. When a leader leaves well, they set everyone else within the organization up for success, benefiting both the organization itself and the audience they serve. As Hannah Cavendish-Palmer explains when discussing best practices around a leadership departure, 

Why should you leave well? The primary purpose of any organization is to deliver on its mission. Enabling that to continue as seamlessly as possible is one reason to leave well. When someone leaves poorly, it can cause unintended consequences such as lower productivity due to decreased morale among remaining staff. Sometimes organizations will overcorrect following a tricky departure, making fast or sweeping reactionary changes that create instability and decrease impact. Simply put, leaving well allows organizations to remain committed to their missions so they can act as a force for good in their communities… Leaving well will be best for you and anyone you leave behind.

Responsibility
Even within organizations that understand the value of succession planning there can be disagreement over who should “own” the plan. The responsibility doesn’t just fall to the Board or the ED – to be successful it should be shared by both the leader themselves and the rest of the leadership team. The Board and the executive should work in unison to develop, embody, and update the plan so that everyone in leadership shares ownership.

When you need help planning for a transition or bringing in a new Executive Director, please reach out to us! Our nonprofit consultants can assist your existing Executive Director and Board with putting together a succession plan, as well as provide interim nonprofit leadership while you look for a replacement. Additionally, our nonprofit recruiters can help you find your next leader to take the organization into the future. Contact us today to find out more!