"Endings are not merely about loss - they are about making room for life."

This powerful insight from the book Necessary Endings reminds us that while transitions and endings can be difficult, they are often a necessary part of growth and progress.

     One of the most significant ending in my life was the closing of a nearly 20 year career at the nonprofit organization I had served as CFO in.  I had visions of serving incredible numbers of nonprofits in incredible ways, but had returned to my job and put them up on a shelf.  Why? Because I loved what I did and I loved the organization I was a part of.  It didn’t make sense to me to say goodbye when things were not bad!

     There are necessary endings. Rather than viewing them solely through the lens of loss, we can choose to see endings as opportunities to clear space for new beginnings, fresh possibilities, and movement toward a better future.

     I often say, "A smooth leadership transition is one of the most critical factors in an organization's long-term sustainability. Prioritize knowledge transfers to lay the foundation for continued impact." 

     Nonprofit leadership transitions can be both exciting and daunting. Whether your Executive Director is retiring, moving on to a new opportunity, or your organization is preparing for a planned succession, navigating this change requires thoughtful preparation. Taking proactive steps now can help ensure a smooth handoff and position your organization for continued success. 

3 Key Things to Prioritize Before a Leadership Change

#1 Document Institutional Knowledge

      A departing leader likely has years' worth of experience, relationships, and organizational know-how stored in their head. Before they leave, work closely with them to thoroughly document this critical information. (ideally over time – a full year is ideal!) Organizations have seasons and rhythms so if you’re able to transfer this knowledge over the course of a year, you’re less likely to miss something.

 This could include:

• Key community relationships like donors, community agencies, and referral partners- How do you communicate with one another and what do you work together on?
• Detailed overviews of mission driven activity like major programs, initiatives, and processes- Capture some history of these activities in a way that can transfer to the incoming leader.
• Organizational history- Have the bylaws been rewritten? Were changes made to important policies like how much operating reserves the organization will keep on hand? Take time to capture not just policy changes, but the “why” behind major policy changes. 
• Unwritten rules- Each organization has those things that are just known by seasoned staff but could blindside a new leader. 
• A “legacy letter”- A litter from an outgoing leader to an incoming leader pouring out the heart of the organization can be a tremendous gift from one generation of leadership to the next. 
• Tips for working effectively with the board- each board has its own unique dynamics, so any tips for navigating these relationships effectively can be tremendously helpful to the new leader. 

 Capturing this institutional knowledge will be an invaluable resource for the incoming leader and help maintain continuity.

#2 Assess Your Organization’s Readiness

      A change in leadership is going to interrupt the norms and rhythm of an organization, so it’s a good idea to stop and conduct a comprehensive audit of your organization's operational health. These audits can be eye opening and are best conducted by the exiting leader that truly understands the present and future needs and can gift this knowledge to their successor.

Things to Assess:

• Financial matters- taking a thorough look at the financial health of the organization
• Funding pipelines- examine the health of your grant sources and donor composition
• technology systems- Has it been 8 years since your organization updated its technology? That’s something a new leader would need to know. 
• HR policies- The new leader should know turnover rates, benefit structures, and compensation scales. These should all be documented clearly.
• Any other core functions unique to your nonprofit

     Identify any gaps, vulnerabilities, or areas needing improvement.

Use this assessment to create an action plan for the new leader to be able to hit the ground running. Prioritize critical fixes, document workflows, and ensure all administrative, legal, and compliance needs are in order.

#3 Engage the Board 

     Keep your board of directors closely involved throughout the transition process. They play a pivotal role in providing oversight, guidance, and a smooth handoff.

Schedule regular touchpoints to update the board on progress. Solicit their input on the transition plan. Leverage their networks and expertise to help identify, vet, and welcome the new candidate. An engaged, informed board will be essential allies in setting the incoming leader up for success!

     By taking these proactive steps, you'll equip your next leader with the knowledge, resources, and support they need to effectively lead your nonprofit into the future. Don't wait until the last minute - start planning for this critical juncture today!

Ready to Prepare Your Nonprofit for a Successful Leadership Transition?

Through more than 25 years of experience, I’ve led and been part of many changes like this. I’d love to help you!

 Schedule a confidential strategic consultation to discuss your specific needs and goals.

BOOK A STRATEGIC CONSULTATION 

Additional References:

4 Step Succession Plan for Nonprofits

Why Every Nonprofit Should Prioritize Succession Planning

Succession Planning Tool