A significant number of executive directors are retiring or leaving the field. Part of the turnover is due to generational change and part due to founder or long time executive director retirements. But another key factor is burnout from the compounding demands of the job, particularly when funding is scarce (and/or the mission is a difficult "case") and public trust in nonprofits is low.
Hiring a new executive director is one of a nonprofit board's most important jobs. In fact, facing an executive transition often brings home to board members the full extent of their responsibility. The experience can be unnerving because most board members don't know what to do when faced with this situation.

Executive transition is the board's responsibility. Many nonprofit boards and executive directors mistakenly believe that the job of hiring a new executive director should be handled by the outgoing executive director. But it is counter-productive for the board to offload its responsibility in this area. Executive transition is an ideal opportunity for the board to fully assume its leadership role as it considers a number of factors, including:

• The needs of the organization and its constituents.
• The environment in which the organization operates.
• Future leadership needs.

The context of leadership transition gives these discussions the gravitas they deserve.

Create a transition committee to oversee the process that positions the organization for success.

Take your time! Because the responsibility can seem so overwhelming boards want to rush the transition process and just get someone in there! But the executive director's role is a keystone; a lot is riding on getting it right. Getting it wrong could mean lawsuits, demoralized staff and board, and diminished funding. As the saying goes, "If you don't have time to do it right, how are you going to find time to do it again?"

Before conducting a search, the board must think about the organization's direction in the future. Be willing to face any barriers to success and address those that might prevent a new director from succeeding. For example, a highly dysfunctional board, power struggles within the organization, and/or severe financial difficulties often undermine a successful transition.

When time is limited, such as when there has been an abrupt departure of the executive director, the board should consider hiring an interim executive director who would not be a candidate for the position.

Consider your options. Executive transition offers an opportunity to do some creative thinking about the future of your organization. Fundamental questions to ask include:

• If our organization didn't already exist, would we start it today?
• If we were to close our doors tomorrow, who would miss us?
• Where else could our constituents go to get what we offer?
• Is there another organization that does something similar to what we do or something complementary?
• What relationship might we want to consider with that organization? Mergers or shared services might reduce infrastructure costs.

The timing of executive transition offers a unique opportunity to consider new or difficult ideas that would not be considered at other times, especially when there is an executive director firmly in place.

Get help! Executive transitions are tricky and can be unnerving. Outside professionals can help you design and implement the transition process. While a consultant won't "hand you the answer," s/he can help build board capacity to undertake this significant project and can guide the board through the work involved. For more information on how outside professionals can help click here.

For more on executive transition click here.

Board Benefits Leading an organization through an executive transition strengthens the board because it must:

• Fully embrace its governance and leadership roles within the organization.
• Become more knowledgeable about the operation of the organization.
• Reaffirm or refine the organization's vision and strategic direction.
• Formally articulate the differences and relationships between the board's and executive's role.
• Form relationships with key organizational stakeholders.

For Roles Moving Forward, click here.