When an organization loses key leadership and looks outside of the organization to find a replacement, a leadership vacuum may develop. If the organization does a full search to fill the position, it could take three to six months or longer to find the right new leader. Allowing an organization to go through this interim period without strong leadership can create challenges or let existing problems fester, even in an organization that has been functioning at a high level. This is particularly true in nonprofit organizations where next year's funding is generally a challenge and the second tier management (due to size and budget constraints) may not be strong enough to fill the void and continue agency momentum. This is when interim management is invaluable.
I have been working in the field of interim management for over 20 years, including two extended nonprofit engagements in the last year with Dewey and Kaye. In my experience, well run organizations with no obvious deficits or problems are excellent candidates for interim leadership if the opportunity presents itself. A strong and competent interim executive will:
- Handle problems and issues as they arise, so that they don't become serious.
- Keep staff on track, manage natural staff anxiety about impending new leadership, and maintain staff and agency performance and momentum.
- Maintain financial performance and accountability.
- Keep fund development efforts moving forward to ensure future financial viability.
In the strongest of programs, it often takes a new executive director several months to get accustomed to the organization, extending the time period during which momentum can be lost. If the interim period is unattended, serious problems with staff and finances may occur, thus taking the new executive months or a year to repair — moving growth and future planning to the bottom of the agenda.
If the organization has significant existing problems, the benefits of interim management are even greater. Existing challenges will multiply during a transition if not managed by competent and experienced leadership. A strong interim executive will:
- Assess the agency, analyze the problems and assist the Board in developing solutions, including board problems.
- Stabilize problem areas and make improvements.
- Stabilize staff morale and performance.
- Stabilize and organize the financial affairs of the agency.
However, it takes the right management professional to be effective in this interim role. He/she must:
- Have extensive senior management experience, ideally including successful interim management experience.
- Have an excellent management style (and appropriate to the organization), mature judgment, and a keen understanding of what an interim manager can and should not do.
- Be a quick study. (In my experience the interim, except in rare cases need not have technical and/or management experience in the organization's field).
- Have successful experience in working effectively with nonprofit boards.
In my tenure as an interim, I have had the good fortune to work with boards and staff that embraced the value of interim leadership. I have also had the distinct pleasure to "hand–off" the organizations to the retained new executive, leaving them an organization just marginally better than when I arrived. As the region looks forward to the evolution of nonprofit leadership, it is my hope that boards will embrace the interim model for the health and well–being of mission driven organizations.
Mr. Stillson has held senior management positions in Pittsburgh and around the country over the last thirty five plus years both in the for profit and not for profit sectors. He currently serves as Principal in Geoffrey Stillson Associates, a Pittsburgh based consulting firm, and has been extensively involved in the not for profit community both as a board member and consultant.
Michelle Pagano Heck, is a Senior Consultant at Dewey & Kaye, a McCrory and McDowell Company. Michelle can be reached at mheck@deweykaye.com or 412.434.1335 for information on Dewey & Kaye's Interim Management Services.
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