defining a field of practice · 2018-04-01 · defining a field of practice: guiding principles for...
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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
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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.