Next Steps After Your Executive Resigns

It would be a mistake to think that, just because layoffs continue and good jobs are hard to find, your executive director will never leave his/her position. Not true. Executive directors aren’t chained to their desks (or at least I don’t advise that!) and there’s no involuntary servitude. Life happens, even in a down economy. And you need to be prepared when it does.

If you have a good succession plan on file then that’s a significant advantage in your favor and you’ll turn your attention to implementation. But what if you don’t? What do you do?

The first thing I urge a board to do is stop and breathe. Now breathe some more! It is common for boards to react to the resignation of an executive director with fear and panic. Afterall, with that executive’s decision to leave, countless responsibilities that were routinely handled by the executive director just got shifted to the board of directors. Ugh. The additional weight on their shoulders is almost palpable to them.

But remember: change brings both opportunities and threats, and it is up to a board to maximize the opportunities and minimize the threats. What opportunities, some ask? We’ve just lost our fearless leader?

One of the organization’s greatest opportunities during a period of change is the opportunity to conduct an organizational assessment. It’s wise for boards to take a look at where they are and where they want to go. I encourage boards to spend time revising (or developing) their set of prioritized outcomes. This organizational change moment is an unique opportunity for the board to take the organization in a direction that will make a greater impact on its mission. Two other opportunities include to:

  • Bring a divided board together or tranform an underperforming board through working together during the executive transition; and
  • Hire an executive director with the core competencies needed to take the organization in the direction necessary to achieve the prioritized outcomes.

When the executive director steps down, the organization needs its board chair to step up. One of the first actions the board chair must do is form an executive transition committee. This committee is customarily tasked with the dual responsibilities of: 1) keeping the organization’s operation as close to status quo as possible; and 2) searching for and selecting a new executive director (assuming that is what the full board votes to do).  

Among the most crucial early decision this committee (or the full board) will make is who will lead the organization in the interim. The most common options include: hiring an acting director or interim director to do all or certain aspects of the executive’s work or having the staff and/or board absorb the executive’s essential functions during the transition. Before a board makes a decision, it is well advised to take into consideration the following kinds of issues:

  • What critical work must get done during the transitional period? What deadlines are we facing?
  • What skills do they require?
  • Which ones can board members take responsibility for?
  • What additional staffing can we truly afford? 
  • If we pay for staffing during the transition, what other activities will we have to forego? 
  • If a board member steps down from the board to be acting or interim director, what will happen when they want to come back on the board after the new executive director is hired?
  • If a staff member is given additional responsibilities in the interm to serve as acting director, will they be able to handle transitioning back to their old position after the new executive director is hired?

Effective executive transition management requires boards to govern in a more proactive way. Figuring out how to do this most efficiently and effectively sometimes requires the services of a consultant experienced in executive transition management. When hiring an outside consultant, you’d be well advised to consider the scope and depth of her/his experience advising nonprofit organizations about executive transition, as well her/his related nonprofit management experience.

Finally, you need a map. That is, after all, how you know you’re on course, right? So in this case, I recommend you develop a transition plan. It is nothing more complicated than an operational plan for the 4-12 months the organization will likely be without a permanent executive.

Ideally, the organization will have conducted its organizational assessment first. In doing so, it will have asked and answered questions about mission, goals, objectives, programs, resources, etc. Once that has been done, the executive transition committee can develop the transition plan to guide the work of the organization during the transition period. If you create and implement a document outlining who will do what and by when you will be many steps closer to a smooth and effective transition. In turn, this will enable your organization to capitalize on its opportunities and your new executive director to get off to a great start from day one.