Turning Transition into Opportunity: Interim Leadership and Succession Planning

A DRG Brief for Nonprofits Navigating Leadership Transition

Succession planning is often a long-term exercise that includes developing internal talent, defining leadership competencies, and preparing for an orderly transition. Succession plans are critical, but they’re not the whole solution for a nonprofit organization facing a leadership transition. Executive departures are frequently unplanned, timelines compress quickly, and boards are asked to make consequential decisions under pressure.

This challenge is intensified by sector-wide trends. An estimated 60–75% of nonprofit executives are expected to leave their roles within the next five to ten years, yet fewer than one-third of nonprofits have a formal written succession plan in place. As a result, many organizations find themselves reacting to transition rather than managing it strategically.

This is where a more strategic and comprehensive approach to leadership transitions can make all the difference, including interim leadership and a transition strategy.

Stability Without Rushing a Decision

An interim leader provides experienced, steady leadership during a period of uncertainty, allowing organizations to maintain momentum while boards exit crisis mode. Rather than rushing to hire a long-term leader, an interim period creates space to assess the organization’s needs and often reveals that the future leader’s skillset must differ meaningfully from their predecessor’s.

This pause is not just prudent; it is protective. Research shows that rushed executive hires significantly increase the risk of misalignment and early turnover, which can cost organizations up to double an executive’s annual compensation when accounting for search costs, lost momentum, staff disruption, and donor confidence.

DRG-placed interim leaders are seasoned nonprofit executives with proven transition experience. They know how to stabilize operations, support staff and stakeholders, strengthen systems, and partner closely with boards during moments of change.

Interim Search as a Strategic Discipline

Interim leadership placement is most effective when paired with a structured search process. A thoughtful interim search prioritizes fit, transition expertise, and organizational context. As demand for interim leadership has grown across the nonprofit sector, so too has variation in interim leadership’s quality, readiness, and impact.

Boards facing unplanned departures often feel pressure to move quickly—yet evidence shows consistently that searches conducted under urgency increase the likelihood of poor fit. Finding the right interim leaders is as important as finding the right long-term leader. DRG brings rigor, speed, and deep nonprofit specialization to interim searches. We ensure that organizations are matched with interim leaders who can address immediate priorities while deliberately preparing the organization for its next phase—and its next long-term leader.

Insight as the Foundation of a Stronger Transition

One of the most valuable outcomes of an interim period is clarity. Strong interim leaders begin with disciplined listening, engaging staff, board members, and key partners to understand an organization’s culture, systems, strategy, and stakeholder expectations. They surface risks and opportunities that may not have been fully visible before the transition.

Experienced interim leaders pair insight with transition expertise. They stabilize operations while helping the board forecast what the organization needs from its next leader, which capabilities are essential, and where strategy or structure must evolve.

These insights should inform a deliberate transition strategy. In partnership with senior staff and the board, the interim leader can help refine the leadership profile, strengthen the long-term search strategy, and set clear expectations for the incoming executive. Given that board members are volunteers and often have many demands upon their time, the interim leader can become an important part of the transition team.

Investing in this work while the interim leader is in place creates continuity. Stakeholders are engaged. Priorities are clarified. The next leader steps in with context, not confusion. Organizations that use the interim period intentionally benefit from efficiencies and launch long-term searches with greater clarity and alignment, significantly increasing the likelihood of organizational success.

Interim Leadership as a Succession Planning Best Practice

Succession planning is not only about who comes next, it’s about protecting the organization during transition and positioning it for long-term success. Integrating interim search into succession planning allows boards to move deliberately, maintain continuity, and ensure alignment between current realities and future leadership needs.

DRG partners with nonprofit boards and organizations to craft succession plans, helping them clarify priorities, assess needs, and prepare for the unknown. Where needed, DRG can conduct a rigorous search process to find the right experienced interim leader for the moment.

Whether planning ahead or responding to an unexpected transition, DRG’s interim search expertise and the Interim Leadership Collective offer a disciplined, mission-centered approach to leadership continuity and long-term success. Interim leadership is not a pause in succession planning; it is the strategic bridge that allows organizations to move from transition to long-term strength.

Carole Wacey, Senior Advisor, DRG Interim Placement

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Michelle Tafel
Principal & Managing Director, Organizational Consulting

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