TransitionLeader

The e-newsletter on nonprofit executive succession and transition.   

Vol. 1 No. 4, Spring 2004   

 TransitionGuides Home Page | Newsletter Page   

• Welcome
• Feature Article
  • Executive Search & Selection - A Step-by-Step Approach
• New Research
  • Biennial Leader Transition Survey will advance understanding about the coming impact of leader transitions and the readiness of next generation leaders
• New Resources
  • Capturing the Power of Leadership Change: Using Executive Transition Management to Strengthen Organizational Capacity is the first of a series of monographs on Executive Transition Management and related topics
  • Losing Your Executive Director Without Losing Your Way: The Nonprofit’s Guide to Executive Turnover, a practical executive transition guide for board members
• Executive Transition Management (ETM) Field-Building
  • New York - New York Support Center expands ETM services with a major grant from JP Morgan Chase Foundation
  • New England - New England funders prepare to launch a three-state Executive Transition Management program
• Recent & Upcoming Events
  • Council on Foundations 2004 Conference, Toronto, Canada, April 26, 2004
  • Leadership Learning Community, Creating Space V, Marlboro, Massachusetts, May 13-15, 2004 - Generational Changes and Leadership: Implications for Social Change Organizations
  • Community Leadership Association 25th Annual Meeting, Tucson, Arizona, June 5, 2004, Keeping Your Stars Aligned: Assuring Leadership Continuity During Times of Change
  • Organizational Leadership Succession Workshop, June 2004
  • Next Steps Workshops - Baltimore, Maryland, July 20-21 and Oakland, California, September 13-14
  • Alliance for Nonprofit Management Conference, Washington, DC, August 12, 2004
  • Training for Executive Transition Consultants, Fall 2004

In the last edition of TransitionLeader, we began a series of step-by-step articles that discuss the three phases of executive transition.  We began with the “Preparation” or “Getting Ready” phase, which is the first phase of an executive transition.  In this edition we continue with the second phase, “The Pivot,” which has two objectives: (1) recruiting and hiring the next director and (2) ensuring that the organization is ready to work with the new executive, that is, preparing a solid platform for the new executive.  Due to the length of the subject, we will cover the executive search and selection work in this edition and the organizational preparation/platform-building work in the next edition.
 

Executive Search & Selection - A Step-by-Step Approach
By Don Tebbe, Senior Associate, TransitionGuides

An energetic executive search and selection process is the centerpiece of an executive transition management project.  In the last edition of TransitionLeader, we concluded the planning stage with the preparation of a search plan and the search collaterals.  To briefly recap that discussion, to begin the Search and Selection phase, we should have the following collaterals in hand:

• A position profile or executive search summary: a three-to-four page document that presents a capsule picture of the organization, lays out the leadership opportunity and outlines the essential characteristics sought in the next executive.
• A compensation plan: an understanding of the board’s approved range or its comfort zone about the compensation package.  Development of an appropriate package may require some discussion with the board about what it means to be a competitive employer in terms of wages and a responsible employer with respect to basic benefits, such as health insurance and retirement.
• A search plan and budget: a short (two-to-four page) document that outlines the strategies that will be used to develop the candidate pool and summarizes the key search and selection activities.  It also should include a projected timetable and a board-approved budget for the search-related expenses.

With these collaterals in hand, you are ready to begin the search and selection phase, which has three major steps: (1) developing a diverse candidate pool, (2) screening candidates and selecting a finalist, and (3) confirming the employment offer.

Step 1 – Recruiting a Diverse Candidate Pool

The recruiting process can involve a combination of advertising, online placements and direct contacts, e.g., emails and phone calls to potential candidates and nominators.  Nominators are individuals who probably aren’t potential candidates themselves, but are in a position to make referrals or “put the word out” among their networks.

Generally, all searches should seek to achieve diversity of gender, race and ethnicity among the finalist pool. To achieve this, it is important that the board and its search committee establish clear and specific diversity goals—goals that consider the mission, clients and objectives of the organization.  Making the diversity goals explicit at the outset of the recruitment process allows you to use this commitment to inspire and inform your decisions about the recruitment strategies. For example, as you consider your ad placements, you might broaden your advertising to include Spanish-language publications. Or, if you are reaching out to college alumni associations, you can include historically black colleges and universities. Achieving a diverse finalist pool is not an accident; it requires a commitment by the organization’s leaders to make diversity a priority and make that priority clear to those who are managing the search process.

Advertising—For most nonprofits advertising is a reliable way of letting potential candidates know about your vacancy.  Given the production schedule for most publications, we suggest starting the recruiting process by placing your ads first.  Most publications require some lead time between when you place the ad and when it actually appears. Newspapers typically have the shortest lead times (two to three days) while national professional magazines and journals can have lead times extending to several months.  You’ll need to ensure that your search plan allows for this long lead time.  You must also give sufficient time for candidates to respond to your ad.

Online—In addition to placing the announcement on your organization’s web site, you should explore any job boards hosted by the statewide or national associations related to your organization’s field of work.  There are a number of nonprofit-specific job websites.  (See the list below for suggestions.)

Direct Recruitment—Most professional recruiters rely heavily on contacts with a network of potential candidates and nominators that they constantly and carefully develop and maintain.  A nonprofit board may not be able to duplicate the depth of a recruiter’s network that has taken years to develop, but every nonprofit has its own base of contacts that can be successfully employed in the search for your next executive director.  A few hours on the phone with leaders of allied or collaborating organizations, executives and officers of related statewide or national professional associations, and key program officers of interested foundations and corporate giving programs can be very productive. This type of outreach is often the key to achieving the desired level of diversity in the finalist pool.

Step 2 – Screening & Selection

Once you’ve placed your ads, the announcement is on the web, and you’ve made your recruitment phone calls, the resumes start to pour in. What do you do?  You will want to ensure that you are prepared to receive the resumes, review them, identify the candidates that you wish to interview and arrange the interviews.

Resume Management—All resumes, whether received by fax, email or surface mail, should come to one point of contact.  Ideally, a detail-oriented person with sufficient time to devote to the task has been assigned to regularly check for new resumes, ensure that they are logged, file a copy for the record and forward a copy for review.  (Typically, an organization will need to maintain the search records for at least two years, perhaps longer, depending on state laws.) Confidentiality is essential. Wherever possible, the resume receipt and management process should take place outside of the organization’s office, in the office of a board member or the search consultant.

Resume Review—The resume review process begins with one or more reviewers reading each resume and sorting them into one of three tiers:

• Tier 1—Candidates who meet all of the criteria. The experience outlined on the resume suggests that the candidate could clearly do the job;
• Tier 2—Candidates who meet most of the criteria. The resume suggests that they might be suitable, and
• Tier 3—Candidates who do not meet the criteria or whose experience is clearly not up to the job.

Candidate Screening and Vetting—Now that you have reviewed and sorted the resumes, you may want to conduct some pre-screening of the Tier 1 candidates before arranging the interviews, especially if you have a large field of candidates. A short phone screening interview using a few select questions or a short candidate questionnaire (sent and returned via e-mail) can help narrow the field and identify the most promising prospects.   Similarly, the screening interview or questionnaire can help you check out some of the stronger prospects among your Tier 2 candidates if your pool of Tier 1 candidates is limited.

This additional screening step can help you determine the depth and diversity of your candidate pool and help you make the judgment about whether you are ready to proceed with interviews or if additional recruitment efforts are warranted. The screening interviews should also help determine if the salary expectations of the identified candidates fall within your range.  Also, this process will help you gather information about the candidates’ availability for interview and how much notice they might need to give to their current employer as well as other factors that might affect their availability to join your organization, if selected.

Interviewing—The interview process should involve several steps, for example, a “round one” interview with the search committee (with perhaps five or six candidates) followed by a “round two” interview with the executive committee (involving two or three semifinalists), and a “round three” interview in which the finalist selected by the executive committee meets with the entire board.

The process should involve both formal and informal time for the finalists to meet with board and staff. This interaction will vary depending on the mission and culture of the organization and might include a visit to the office and key facilities, meetings with staff or senior managers, social time with key board leaders and/or funders, among other possibilities. Staff involvement varies and minimally includes an opportunity for the finalists to meet with the senior managers and outgoing executive director where appropriate. In other instances, a staff representative or two serve on the transition or search committee.  Because there is a two-way sale between organization and candidate, interaction between staff and final candidates is important.  Typically, the process is better served by including the office/facility tour and staff interaction early in the finalist review process.

Reference Checks—A crucial step in the selection process is the reference check, which is best conducted as early in the process as practical, typically between the first and second round of interviews as outlined above.  Reference checks involve interviews with people who know the candidate and should not be confused with the background check discussed below.  At least three and as many as six references should be interviewed.  They should represent a range of views about the candidate—for example, someone who has supervised the candidate (particularly a board chair or board member of his or her previous nonprofit employer, if the candidate has been an executive before), someone who the candidate has supervised and a peer. Some reference checking before finalists are selected ensures that the organization really knows the candidates.

Background Checks—Background checks are an increasingly common practice among nonprofits. A pre-employment background check is conducted by a firm that specializes in such checks and may involve a review of one or more of the following: criminal background, credit history, education/licensure certification, driving records, etc. The background check should only include those items that are clearly warranted. For example, if the job involves contact with children, a check of the sexual predator registry(ies) would be required.  (Background checks are an area regulated by the Federal Trade Commission.  The process must meet the requirements of the Fair Credit Reporting Act and requires that a “FCRA-compliant” release be signed by the candidate.)

Step 3 – Confirming the Employment Offer

Typically, the capstone of the interview process is a meeting with the board.  The bylaws of most nonprofits call for the board to hire the executive director.  Accordingly, a review of the candidate by the board is important. An affirmative vote by the board to extend an employment offer is crucial.

Assuming all of the above is complete, the final step is to confirm the offer with an employment offer letter or an employment contract.  The offer letter or contract should be a reflection of prior discussions with the finalist about salary, benefits and expectations.  In other words, it should be the final step that simply formalizes those negotiations.

It is important to note that an offer of employment can be a binding contract that has many legal implications and pitfalls.  Accordingly, the employment offer/contract should be reviewed by qualified legal counsel before forwarding it to your finalist.

Most nonprofits use an employment offer letter that identifies the starting salary, benefits (especially if they are different than those covered in the employee handbook), the reporting relationship and any other conditions.  Typically, in states that allow “at will” employment, the letter also makes it clear that the employment relationship is “at will.”

Employment contracts are more prevalent among larger nonprofits and trade associations. An employment contract typically spells out the same information as an offer letter, but covers a defined period of time (typically, three years) and usually includes a termination clause that addresses severance pay.

Conclusion

The search and selection phase is complicated and requires a broad range of skills. Ideally, the search committee should be recruited with an eye toward leaders who have experience in hiring executives, in human resources, and in the work and mission of the organization.  The above description is intended to help you better understand some of the key steps involved in recruiting and employing a new executive director.

A solid recruitment effort is not only complicated, it’s time consuming.  Your board might be well served to consider retaining an executive search firm or an executive transition management consultant who can bring expertise, time and ready contacts to help the board meet the challenge of developing a diverse finalist pool and selecting a director who fits your organization’s leadership needs of today and tomorrow.

The Next Installment

Our next installment in this series will address the second part of the Pivot Phase, preparing the platform for the new executive. If you have any questions about the topics discussed here, feel free to call TransitionGuides at (301) 439-6635 or use the "ask a question" form on our web site.

The Foundation is inviting other funders, nonprofit associations, networks and partner organizations to participate in the survey. Web-based and easy to use, the survey will provide sponsors with an individualized report on their organizations as well as a national report covering all participating organizations.  For more information, contact Paige Hull at (571) 233-2627 or phull@transitionguides.com.
 

Losing Your Executive Director without Losing Your Way: the Nonprofit's Guide to Executive Turnover by Carol Weisman and Richard I. Goldbaum is designed as a practical executive transition guide for board members. Richard is a colleague and was a participant in the first Annie E. Casey Foundation meeting of ETM consultants. Congratulations Carol and Dick! Thanks for this great addition to the ET literature. Available from Amazon.com or your local bookseller.
 

New York Support Center expands ETM services -- Don Crocker and John Vogelsang of the Support Center in New York are working with their board and New York-area funders to expand the Support Center’s Executive Transition Management services. JP Morgan Chase Foundation has recently made a major grant to partially fund this expansion over the next two years and has agreed to help convene other funders. This expansion builds on a presentation by Donna Stark of the Annie E. Casey Foundation and Tom Adams of TransitionGuides at a special presentation of the New York Regional Area Grantmakers and follow-up meetings last month. More info: Contact Don Crocker at scnmdon@aol.com.

New England launches ETM program -- The New England Executive Transitions Partnership (NEETP) has completed its planning and will soon select a lead management support organization to launch an Executive Transition Management program. In cooperation with the 15 funders involved in the collaborative, this initiative will offer executive transition management consulting services to nonprofits in Massachusetts, Connecticut, and Rhode Island. NEETP members are committed to making grants available to assist with the cost of these support services to eligible nonprofit organizations. More info: Contact Gail Randall at (508) 755-0980.
 

Leadership Learning Community, Creating Space V, Marlboro, Massachusetts, May 13-15, 2004 - In a session entitled Generational Changes and Leadership: Implications for Social Change Organizations, Sherri Killins, of the Annie E Casey Foundation, Tom Adams of TransitionGuides, Tim Wolfred of CompassPoint, and Frances Kunreuther and Ludovic Blain of DEMOS will explore the impact of several significant trends in American demographics on the workforce, the nonprofit community and our collective ability to provide quality support and services to children, families and communities though nonprofit organizations.  More info: www.leadershiplearning.org/creating_space/2004/

Community Leadership Association 25th Annual Meeting, Tucson, Arizona, June 5, 2004 - Will feature a session, Keeping Your Stars Aligned: Assuring Leadership Continuity During Times of Change, a workshop on leadership succession/continuity planning presented by TransitionGuides.

Organizational Leadership Succession Workshop, June 2004 – sponsored by Neighborhood Reinvestment Corporation in conjunction with the University of Maryland Burns Leadership Academy, this is an opportunity for board chairs and executives from community development or related fields to focus and plan for leadership succession as well as long- or short-term executive transitions. Last October, teams of executives and board chairs from nine organizations participated in a successful pilot of this workshop. More info: Contact Sally Digges at Neighborhood Reinvestment at sdigges@nw.org or (410) 962-3182.

Next Steps Workshops - Baltimore, Maryland, July 20-21 and Oakland, California, September 13-14.  Next Steps is a powerful peer exchange and workshop designed for founders and long-term executives who are preparing to retire or make a career move in the next one to five years or who are otherwise interested in succession planning. Leading executive directors in the community development, advocacy and human services field, among others, have found this to be a potent--and safe--session for clarifying timing and approaches to succession planning and for exploring the their personal transitions from the executive director's role. Next Steps "alumni" who have successfully made the transition from their leadership positions include Joe McNeely of the Development Training Institute in Baltimore, James Head of National Economic Development and Law Center in Oakland and Sister Mary Paul Jonchill of the Center for Family Life in Brooklyn. Other participants now have a two to five year plan for getting ready for succession and transition. The Advocacy Institute retained TransitionGuides to offer this workshop for its Leaders for a Changing World fellows in February. For more information about attending or offering a session, contact Melody Thomas Scott at TransitionGuides: mthomasscott@transitionguides.com or (301) 439-6635.

Alliance for Nonprofit Management Conference, Washington, DC, August 12, 2004 - Will feature two ETM pre-conference sessions: The Role of the Interim Executive and An Introduction to Executive Transition Management Consulting for MSO’s and Consultants.  The Interim workshop is designed for persons already serving as interim executives or for former executive directors who want to move into interim executive work.  The Introduction to ETM is geared toward organizational development and executive search consultants, as well as MSO consulting directors who want to learn what is involved in offering the full range of Executive Transition Management services. More info: www.allianceonline.org or contact Melody Thomas Scott at (301) 439-6635 or mthomasscott@transitionguides.com.

Training for Executive Transition Consultants, Fall 2004 - Later this spring CompassPoint and TransitionGuides will announce the dates for a three-day training session for experienced consultants who want to move into the ETM arena. (This will be a repeat of the oversubscribed fall 2003 event.)  More info: Contact Ken Kurtzig at CompassPoint at 415-541-9000 ext 352 or via email at KenK@compasspoint.org.

TransitionGuides offers customized training on a variety of executive transition topics for foundations, nonprofit associations and other groups.  Please call us at (301) 439-6635 for more information.
 

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