What To Do When a Senior Leader Unexpectedly Resigns

Whether you are a board member of a nonprofit and your Executive Director resigns, or a CEO of a small business and your CFO or CMO resigns, handling an unexpected resignation can be difficult under the best of circumstances. You wouldn’t be the first person to start to panic in this situation, but fear not, there are a few steps that can make this transition easier and perhaps even improve your organization in the long term. It is important to not forget about all of your options like interim leadership, restructuring, etc. So what should you do when a senior leader unexpectedly resigns? Let’s take a look.

Tell the Staff

Don’t wait on things to settle, but also don’t put commentary on it. This can be a challenging balancing act, especially if the leader isn’t giving a fair amount of notice before they leave. In some cases, the former leader may not give much notice at all. Also, if there is sensitive information involved in the leader’s role, the organization may not want/allow the leader to stay. Make sure the staff hears it from you first and not anyone else. Hearing it elsewhere could displace trust and unsettle your team. Your staff will be your biggest advocates and may have some great recommendations for new potential candidates. Be transparent and make sure they are a part of the process since they are critical to any nonprofit strategy.

Only Fools Rush In

Don’t make a panic hire. Unless you happen upon the perfect hire (of which there is no such thing), you may end up regretting it. Assess what is needed in your organization. Do you need the same skillset as the leader that is leaving, or were they missing certain qualities? Pull out the prior job description, and compare it to the role that was actually being played. Review your own strategic plan and the role this leader should play within it. All of these actions will lead you to understand what you need out of the position being filled. This is where your organization can improve when facing adversity.

There are Interim Options Available

If you know you cannot wait to get someone in (for example, did your CFO leave just before tax time?) finding an interim leader is a great solution. Especially for organizations in need of transition, updating, or assessment, bringing in the right group of people can be the perfect solution. Instead of putting a new leader behind the 8-ball with the need to plan, transition, or update, bring in an interim leader. An interim leader can focus on the immediate needs of the organization so that the new permanent leader can hit the ground running. The new leader can rapidly move towards a planned goal and set up your organization to succeed. Why is an interim leader so effective at this? Interim leaders are highly experienced professionals that offer organizations with smaller resources the opportunity to bring in someone with fantastic skillsets and have them work for several months. Because these leaders are not working full time and do not need all the other resources that come with that, an organization can get their impactful insights and get set up for success at a fraction of the cost. Be sure to take a look at our Interim Leadership options as well as our three reasons to consider interim executives.

Restructure

This move isn’t always an option or at least a readily available option. If your CEO or Executive Director leaves, you don’t want to push a move that isn’t the best choice. We’re talking about restructuring. If it is someone else in the C-Suite, there may be a good opportunity to restructure the roles within the organization. Has a younger employee earned the right to take on more responsibility? Should you break a role into two roles? Do you still need this role within the organization? Too often organizations get complacent and put out nearly the same job description of the person that just left without even thinking about how their organization has evolved since the last time someone was hired. Use this time to assess the organization and address the role accordingly. This is another great opportunity to improve your organization when faced with adversity but recognize that t may require some patience and leadership development.

Plan Ahead

Succession planning isn’t just a myth that exists within other organizations, yet 80% of nonprofits share that they do not have a succession plan in place as shown in this ASTC study. Take this time, while you’re not in transition (hopefully), to assess what your protocols should be for when a senior member of your team leaves. This should be a partnership in planning by the Board of Directors and the Executive Director/CEO.

For guidance in navigating what is undoubtedly a difficult time, NMBL Strategies can help in a variety of ways. Whether it’s building a succession plan, supplying interim leadership, or supporting development along the way, NMBL is here with experts and resources to help. Reach out to NMBL Strategies today to find out more!