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A 2012 report documents the executive transition challenges facing North American Jewish nonprofits. The report extols the fine work of this nonprofit community but also reveals a lack of planning for executive transition, a problem shared by many nonprofit communities.

The author and lead researcher on the report is Steven J. Noble, managing director of Noble Consulting Associates, Inc. in Brookline, Massachusetts and Adjunct Professor of Leadership/Organizational Behavior with Boston University's MBA program. The report drew responses from executives at 440 organizations across North America. The organizations varied in size and type, including federations, Jewish Community Centers, schools, camps, synagogues, foundations, advocacy groups, and family, children, and aging services.

Key findings:

• A majority (83%) lacks an emergency backup plan.
• A majority (91%) lacks a board-adopted succession policy.
• Only 30% have a suitable person ready to step in to temporarily cover CEO duties.
• Regarding departure, CEOs are strongly or very strongly concerned about: personal financial uncertainty; being unsure of finding a new meaningful post-agency life; lack of an obvious successor on staff; feeling their work is incomplete; and the ability to leave when they feel it is appropriate.
• Only 25% were strongly or very strongly confident that their boards would find the right successor for them.
• CEOs expressed strong or very strong interest in the following transition support material: best practices information (53%); articles on CEO transition (46%); workshops on transition management (42%); and coaching (40%).

We interviewed Dr. Noble to probe some of his findings. Noble, whose work includes executive coaching, said that many of his clients have surprised him with "the lack of attention both to succession planning and to their own personal next step." These concerns ultimately led to his research, which he hopes to replicate among other nonprofit communities.

Noble suggests several reasons for the lack of attention to transition planning. At the board level, board chairs may be in place only two to three years and may see other issues as more pressing than leadership continuity. Boards often do not effectively evaluate their executives. In addition, the emotional tension regarding succession planning may result in avoidance and procrastination.

As with the board, executives may feel compelled to address urgent issues. They also have concerns about why, when, and how to step down. They may feel threatened by the subject. They also may believe their deeper knowledge of the organization complicates departure considerations.

Departure planning as a source of conflict

During the interview, Noble discussed types of conflict that emerge regarding impending departures. "Conflict usually arrives when there has been no proactivity. In some cases, the executive is blindsided. He or she may have had good but perfunctory performance reviews." Then a new board chair arrives who wants immediate change. Boards also face deep internal conflicts when departure and departure planning are periodically raised. "You most often don't have unanimity. Some board members are fiercely loyal to the executive, while others want to see him or her leave to shake up the organization."

Moreover, as noted, CEOs may also feel conflicted about whether it is time to leave or not, about the financial concerns of leaving, and about whether they may be bored in retirement after years of long hours, rewarding work, and deep community appreciation.

A CEO's lack of transition planning can also create conflict among staff. "Often there is a number two person told directly or on the side, 'I'll be moving on and you're the likely choice for next executive,'" explains Noble. The second-in-command may turn down other offers, only to hear the executive recant, "'We've just launched a five-year plan-I can't leave now.' Or, 'My retirement account just took a major hit.'"

Noble proposes ten recommendations in the report to address these challenges. He feels nonprofits need to be more tolerant of risk. CEOs, says Noble, should focus much more on organizational transition issues, especially when they reach age 60. A possible "encore" career is critically important. "You want to envision and step into a life that is enriching and exciting."

Noble notes that the work and staff of TransitionGuides, Annie E Casey Foundation, and CompassPoint were central to the development of his research. A PDF of the report, Effective CEO Transitioning/Leadership Sustainability in North American Jewish Nonprofit Organizations may be downloaded here.  

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