Succession Planning: Decide If You Need a Search Firm

Note: This is the eleventh (and final) blog of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.

Principle No. 11 - Discern If a Search Firm Would Be Helpful

The toolbox materials list three options for conducting a CEO search:
   • Option #1: Retain a Search Firm
   • Option #2: Retain a Consultant/Coach
   • Option #3: Conduct Your Own Search

But heed this warning from the authors of You’re Not the Person I Hired!—a very helpful resource: “When you are tempted to rush a hire, think in terms of Return on Investment over the course of years, not months.”

Boards of larger organizations that rely on retained search firms for senior level positions will often engage a firm to conduct their CEO search. Just as organizations have unique cultures and methodologies, so retained search firms will have unique approaches for your important search. Interview at least three firms.

In his article, “Differences Between Search Firms,” Bruce Dingman suggests that the firm selected should find at least four candidates to be considered. His article outlines other factors to consider:
   • Ethical issues and “out-of-bounds” and “off-limits” industry practices
   • Reputation of the firm versus the recruiter
   • References of the recruiter
   • Pros and cons of specialists versus generalists
   • Speed versus quality
   • Cautions about saving time with a recruiter’s “short list”
   • Importance of pre-recommendation reference checking
   • Recruiters’ experience with search committees

As your board reviews the resources in the toolbox, don’t skip the spiritual discernment process—which takes time. And time is a significant issue for busy board members. But note this counsel from Michael J. Lotito: “If you spend a lot of time figuring out who you’re going to hire, you’ll have to spend far less time figuring out who to fire.”  

BOARD DISCUSSION: When our CEO exits (Plan A, Plan B, or Plan C), are we confident that we will make the search firm decision (see the three options above) based on God’s leading and our mission and vision? Or will our budget parameters push us in the least desirable direction? 

TO DO TODAY: Download the Facilitator Guide and inspire a board member to review the numerous resources, books, and articles on selecting a search firm and interviewing candidates.

DOWNLOAD: ECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit Boardroom. Click here.

Succession Planning: “One Size Fits All” Is Bad Counsel

Note: This is the fourth of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.

Randon Samelson’s helpful book on biblical strategic planning describes a leadership succession plan that actually worked!

Breakthrough: Unleashing the Power of a Proven Plan outlines a six-step plan from 1 Chronicles 28-29. That passage is the narrative for King David’s baton pass to his son, Solomon, that included the blueprints to the temple. The result? The temple was completed. Solomon thrived. Outgoing CEO David did not whine in the background.

Skip the six-step plan, warns Samelson, and you’ll face at least three problems when approaching givers. (And you must keep donors in mind in your succession planning.)

But note: the David to Solomon succession plan is just one plan—it’s not the only plan. “One size fits all” is bad counsel. Check out Moses and Joshua, Elijah and Elisha, and Paul and Timothy (2 Timothy 2:2).

Principle No. 4: Model Successful Succession in the Boardroom First also reminds us: “As the board goes—so goes the organization.”

While boards expect their CEOs and senior team members to have stellar succession plans in place, it’s rare when boards excel at their own succession planning. The best boards anticipate their future leadership needs and build board succession planning into their DNA.

Principle No. 4 lists three aspirations on board succession, including: “We are developing a quality ‘pipeline’ of likely board prospects so when relocation, death, or the incapacitation of a board member requires filling an unexpired term, we are ready.” 

Check it out here: 

DOWNLOAD: ECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: While certain biblical examples of leadership successions are not necessarily prescriptive for your unique situation, what are some foundational biblical principles you can glean from David and Solomon or Paul and Timothy or others?

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit Boardroom. Click here.