Recent studies have estimated that more than 75% of current nonprofit executives plan to retire from their positions during the next five to seven years. In addition, it is estimated that 10% of nonprofits expect to hire a new executive director. As a member of the Board of Directors of a nonprofit organization, hiring your new executive director will be the most important responsibility you are likely to assume.
According to Dennis C. Miller, founder & chairman of DCM Associates, whether you plan to use internal resources or engage an executive search firm, there are five key stages for conducting a successful search and the key questions that you need to address:
- Analyze the key strategic challenges the organization is facing and the role that the new position will need to play in addressing them and create an ideal position profile.
There are key strategic issues that the new chief executive officer will need to address, according to Miller. What personal competencies and skills will the new executive need to possess to lead your organization forward? Why should someone be attracted to your organization and what makes your organization unique? How would you describe the culture of your organization and how will you know if the final candidate is a good fit.
- Conduct an extensive targeted outreach to organizations and professional trade associations to identify potential candidates with the competencies, skills and personal attributes required.
Who on your team or board has the time and experience to reach out to leaders from a vast array of organizations to help identify potential qualified leaders? Are you planning to do a national search for your next chief executive officer or more local and regional? Are you planning to conduct an aggressive outreach to potential candidates or just post the position on social media sites and hope candidates apply?
- Approach potential candidates and test their interest in this new opportunity and persuade strong candidates to consider the new opportunity.
Now that you have successfully targeted outreach to organizations to identify possible candidates, you need to reach out to them about the new opportunity and determine interest in learning more about the position. Make sure you identify the key selling points about the new position prior to speaking with anyone. Does your organization have a positive reputation that will make it attractive to someone? Will your compensation package be attractive? What is your housing market like?
- Present the most qualified candidates to the board after conducting extensive in-depth interviews and personality assessments and evaluations that best match the ideal position profile.
A search – internally or externally – requires an executive summary of each candidates’ experience, record of achievements, and competencies that is submitted to the board’s search committee. This summary should also accompany the candidate’s cover letter and resume. It is also important to measure the candidate’s core leadership and personality traits as well. There are many qualified organizations in the marketplace to help you measure a candidate’s leadership and personality traits.
- Complete the search and provide onboarding support to the newly appointed individual during their initial phase of their tenure.
Once the new executive has been hired, it is vital to prepare the individual to adjust to the social, cultural and professional components of their new job. The greater the investment in your time to onboard the new executive, the quicker your new chief executive officer will be leading your organization successfully into the future.
It is estimated that almost 50% of new CEOs reported getting little or no support from their boards after starting the new job. A positive onboarding process will maximize the return on investment, getting the most out of the resources and time you committed to the search and hiring process.
Whether you are conducting an executive leadership search on your own or with the help of a search firm, when you follow the five key stages you will ensure that a successful leader will lead your organization into the future.
