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This is the second in a series of blogs based on findings and insights from our 2023 ED/CEO Survey.
We know that the relationship between a board chair and a top leader (CEO/ED) can really range from lifelong friends to frosty acquaintances. When you mix culture, inherited dynamics, mission, expertise, identity, working styles, and the many other factors that influence the CEO–board relationship, it’s easy to see how unique each relationship can be.
But there are commonalities we can learn from.
We pulled three insights from our recent survey of nonprofit CEOs and EDs that are specific to board members and have some ideas on how to address each.
Succession Planning is the elephant in the room.
A whopping 71% of CEOs/EDs had not communicated a succession plan to their board.
Succession planning, despite being a best practice, can feel almost taboo in cultures that prize loyalty above honesty. CEOs may wonder whether they can be truly honest with the board about their personal plans and Board members may feel ill-equipped to be an effective partner in a transition process. Further complicating the dynamic and incentivizing secrecy, funders often “wait and see” once they know a top leader will transition.
Turnover in top roles is a reality.
Of those who shared their plans, 17% of CEOs said they plan to stay less than 1 year and 24% said they plan to stay 3-5 years in their current roles.
There are so many factors that feed into CEO retention. The board cannot control or even influence many of these factors, but the board can affect the way they support and resource a leader. They can affect how they engage with leaders (and how many nudges it takes to give that annual gift or RSVP to the program event). They can carve out time to be effective ambassadors, fundraisers, and recruiters of other board members. They can be transparent about what role they want to play on the board and what commitments they will make.
Chances are, you don’t understand the depth of challenges the CEO is facing.
When we asked CEOs to name where they often or always draw support from in challenging times, just 24% of them named the board of directors.
Take a step back and consider that you are more likely to be part of the 76% of boards that are not relied upon in challenging times. It’s possible you may not really understand or know the issues as well as you think. This is completely understandable given the power dynamics and a slew of other factors, including funding relationships, culture, and your expertise as a board member.
As you take these insights back to your fellow board members, here are some actions we recommend:
- Make Succession Planning for the CEO role a priority for the board in 2024. Carve out the time and get the outside support you need to live this best practice.
- Self-organize the board in service of the mission and the CEO’s strategy. Hold yourselves and each other accountable.
- Accept that you are not all-knowing and ensure the CEO has the outside support they need (executive coaching, time off to spend with loved ones, self-identified professional development, or ability to connect with peers) to be effective.
Whether you are new to your board career or a long-time leader, consider that each year is a chance to rethink how you position yourself in support of the mission.
