BOSTON, Feb. 15, 2018 (GLOBE NEWSWIRE) -- Is a clean break really the best way to ensure a successful nonprofit founder succession? While conventional wisdom suggests that it is, new research from The Bridgespan Group finds that the answer is often no.
“Making Founder Successions Work” published today in Stanford Social Innovation Review, details key findings from Bridgespan’s in-depth, quantitative study of nonprofit founder transitions, among them:
According to Jari Tuomala, Bridgespan partner and coauthor of the study, “Bridgespan’s research indicates that an extended founder role, when done right, can be the best path to maintain funder, board, and staff loyalty, while allowing the new leader to benefit from the founder’s capabilities and knowledge. Everyone wins, including the organizations and most importantly, their beneficiaries.” According to Pritha Venkatachalam, a partner in Bridgespan’s Mumbai office, while this Bridgespan study focused on North American NGOs, Bridgespan’s previous study on leadership development in NGOs in India found that similar dynamics are playing out.
“Some of the pioneering social entrepreneurs who launched NGOs a decade or two ago are beginning to relinquish their spot at the peak of the organization’s pyramid. However, for nearly 60% of NGOs in India that were established over a decade ago, the founders are still involved as a Board member or in other non-leadership roles – which can support transition. For example, Ramesh and Swati Ramanathan, who founded Janaagraha, invested in grooming an internal successor as the CEO, and continue to guide the organization as Governing Board members,” she said.
Coauthor Donald Yeh, a Bridgespan manager, noted that interviewees mentioned a number of long-standing practices to manage leadership transitions. Among them: start early in planning for transition, invest in developing internal successors, establish frequent interaction between successors and board chairs, and maintain active board engagement in the process.
In addition, Yeh said the research identified five recommendations that more directly address the practical aspects of managing an ongoing role for a founder. “These recommendations apply to any organization that seeks to extend the founder’s stay,” said Yeh. They are:
“Every year," said Tuomala, “thousands of nonprofit boards face the daunting task of hiring a successor to replace the seemingly irreplaceable, long-serving, beloved founder, and the transition is fraught with anxiety. Our aim in conducting and sharing this study is to help nonprofits and their boards plan for these transitions and lay the foundation for stronger organizations better able to serve their beneficiaries.”
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About The Bridgespan Group,
The Bridgespan Group is a global organization that collaborates with mission-driven leaders, organizations, and philanthropists to break cycles of poverty and dramatically improve the quality of life for those in need. We bring a rigorous approach, shared passion, and deep social sector experience. Our services include consulting to nonprofits and philanthropists, leadership development support, and developing and sharing insights.
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