Interim Executive Director Benefits: Ensuring Smooth Nonprofit Executive Transitions

change management executive director executive transition human resources nonprofit strategic management May 24, 2021
nonprofit executive transitions

When to Consider an Interim Executive Director

An Interim Executive Director can facilitate a smooth nonprofit executive transition. This highly specialized executive will be there to triage priorities, manage day-to-day practices, and solve some of the structural, legal, financial, and cultural challenges that the organization may be facing in order to achieve two principal goals: 1) to prepare the organization for the incoming ED to be successful, and 2) to minimize turn-over. This is the case whether the organization is in crisis or functioning smoothly. 

An Interim Executive Director will also help match, attract, and prepare the organization to retain the right type of long-term candidate for the organization by conducting a holistic analysis of the organization. She or he will also make professional recommendations through a neutral lens that is driven by the best interest of the organization, rather than self-interest or influence by siloed narratives from staff and board members.  She or he will also make tough decisions that a long-term executive director may not want to live with.

During a nonprofit executive transition, an interim will also ensure that the organization is: 

  • Compliant with state and federal laws 
  • Operating quality programs 
  • Adequately tending to the finances of the organization
  • Running an ethical and effective organization

Why is an Interim Executive Director Needed During an Executive Transition?

A nonprofit executive transition is a critical period that will impact the short-and-long-term sustainability of the organization. In addition to continuing the work of the organization, an Interim Executive Director will also help to harness both the positive and negative energy of staff and board members during a nonprofit executive transition in a productive manner that will strengthen the organization.  Thus, an Interim will help to recalibrate all of the weaknesses of the organization that can come to light during this time due to: internal power plays; fear; uncertainty about roles and responsibilities during the executive transition period; increased work requirements for employees during the executive transition; and/or unrealistic expectations pertaining how much can be accomplished during this time-frame. This step, though, requires everyone in the organization to have a clear understanding of what an Interim Executive Director should and should not do. 

Misguided Beliefs About Nonprofit Executive Transitions

It is common for board members to question the financial benefit of waiting to begin the hiring or search process for the permanent ED. However, research shows that not preparing the organization with an Interim Executive Director for a leadership transition can result in either a high staff turnover rate or the incoming executive director leaving within a year. Both of these options will put the organization’s sustainability in peril. 

How long should an Interim Executive Director Placement Last? 

Many organizations want the Interim Executive Director placement to last 3 months. This, however, is an unrealistic time frame that can be counterproductive to the long-term sustainability of the permanent Executive Director. Although the time frame can vary, the ideal time is about 9-12 months. This allows for the Interim Executive Director to: 

  • Conduct an assessment of the organizational challenges and triage priorities 
  • Address organizational, staff, board, and structural challenges
  • Identify the characteristics the organization “needs” for a permanent Executive Director to succeed
  • Engage the board and staff in the recruitment and preparation for the permanent Executive Director 
  • Conduct a search 
  • Onboard the permanent Executive Director

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As always, if there are any questions, comments, or issues you would like me to address either privately or with an article, please do not hesitate to contact me. 

Warmest regards, 

Paulina

Founder & CEO

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