Why Are Interim Executive Directors so Impactful for Transitioning Nonprofits?
Why is leadership transition an important topic right now?
Interim roles are highly flexible and can fit a variety of roles for nonprofit organizations. Interim executive positions are incredibly effective during a transition stage for an organization. This transition period is where their experience and confidence truly shine. The topic of leadership change is increasingly prevalent in the nonprofit sector as it experiences high turnover. Part of this is caused by leadership roles currently filled with members of the Baby Boomer generation. As this section of the population comes increasingly close to retirement age, nonprofits are seeing their executives step down and face a challenging period of transition. Many nonprofits lack the structures to plan out a successor to their executives and even more, organizations lack the financial means to court a highly experienced executive with a great offer. Finding the right replacement takes time and often training. This transition period is where an interim executive can turn damage control into a period of growth and alignment.
Drawing on his own experience serving in interim executive director roles, NMBL Strategies’ managing director of nonprofit services, Dion Brown, gives us a firsthand account of the impact of an experienced executive during transition periods and why it is the right decision: “The most important deciding factor any organization should have at the top of their list is hiring an experienced ED as their interim. Some firms have fast information/tools that they have for nonprofits to utilize, however, having someone that has worked in the trenches as an executive director is critical during a transition. They step in knowing how a nonprofit should operate and are able to identify very quickly if anything is out of order. If all is in order and the nonprofit needs someone to step in while they conduct their search. Again, the experienced executive director provides that leadership to keep the organization functioning at a high level until a permanent executive director is appointed. This is one of the most valuable and impactful assets we provide to our clients.”
What makes a transition period different
A transition period is unique because it provides the opportunity for a fresh start. Transition periods, especially unplanned ones, can cause organizations to panic, but it does not have to be that way. The course of a transition period is often predictable. An experienced interim executive will understand what to expect and will not be caught up in attempting to patch up the wrong problems. Someone with less experience or wholly unprepared to take on an executive role can’t rely on their experience and calm to effectively understand the current state of an organization and sort out organizational deficiencies. Doing this correctly in the interim phase will set the organization up for success under their new executive. Specific pieces of the nonprofit are also vulnerable to change now that the previous executive is gone. Internal structures and culture can be changed far easier than when under constant leadership. This is a great opportunity to develop or adjust the culture and structure of the office by listening to the staff absent from a full-time, internal executive filtering everything they hear through their perspective.
Transitions are also key time periods for donors. Because donors are watching, it is essential that your organization does the right things to inspire continued support. When a leader is on their way out, supporters are watching. Emotions are often running high amongst staff, the board, and the executive. Even though the transition period is an opportunity for positive change, it is just as much an opportunity for damage to the organization. Many donors are standing by with a wait-and-see attitude. Getting to see a highly experienced interim executive and the results they produce is a great step toward bringing back the same donors, instilling donor confidence in the organization, and setting up the new executive to continue to build on this success.
Why do interim executives have so much impact?
There are many reasons an interim executive has a huge impact, but we found a few to be indispensable and repeatable trends across different organizations. The first impact and one of the most essential when facing a transition period is that an interim executive gives an organization breathing room. It stops the panic and in fact, places the organization in a better position in terms of guidance and strategy. Having this breathing room allows an organization to accomplish three specific goals: (1) avoid a panic hire and rather make a quality decision (2) create separation from the previous way of doing things in order to evaluate and plan and (3) the opportunity to set up the organization for the new executive to focus their efforts on the future. Panicking can further damage an organization when they are already missing a leader. Additionally, sorting out inefficiencies and creating a properly organized nonprofit will set the next executive up for success (especially because the next executive will likely not be as seasoned a leader as the interim due to the budget restraints of nonprofits).
Similarly, the interim executive supports the board in their search for a new executive by giving them insights into what a high-quality candidate should look like. The board can get a test run examining an executive in action. This often helps a board think about how they will filter potential candidates.
Finally, having a set of unbiased eyes to call it as it helps nonprofits to fix what is not working. All too often we adjust to the environment around us after being immersed in it for so long. This familiarity can cause staff to miss issues that an outsider would see immediately. This is where an interim executive director has a huge impact. Additionally, the interim is not under the pressure that an internal interim executive would be due to working for their own board. An interim role is a great opportunity for an objective review. The interim executive can take stock in the organization and simultaneously provide the expert knowledge to fix whatever the issue is. It is a unique time where nonprofits can afford a highly skilled leader to come in, adjust the organization, and set it up for success under their new, full-time executive. This unique experience is an incredibly valuable and rich opportunity for nonprofits experiencing transition.
A firsthand account
Our most recent interim executive director role placed our managing director of nonprofit services, Dion Brown, in the driver's seat of Empower Missouri, a nonprofit experiencing a transition phase. We will finish the blog with firsthand experience of a successful application of an interim executive in transition. Below, he explains how the external perspective of an experienced interim executive helped turn the transition phase into a period of growth and rejuvenation:
“One of the key outcomes in this particular nonprofit that could only be achieved with an interim executive was to have a set of "new eyes" reviewing the overall operation of the organization. Many times if they appoint someone internally to fill in, they may keep things as status quo. In our case, we were able to implement best practices, shore up administrative roles, and to better align the organization. From a financial perspective, we were able to identify areas the board should focus on. The major factor that made NMBL successful was working with the board who felt things could be improved from an external perspective.”
Interim leadership is an incredibly impactful tool because it brings seasoned nonprofit leaders into nonprofits that typically could not afford that level of leadership. Reach out to us today to learn more about Dion’s experience leading nonprofits and what we can do to help guide your organization toward a better future.
