THE WHEN & WHY OF INTERIM NONPROFIT LEADERSHIP
Have you noticed a trend lately of more nonprofit organizations hiring interim executive leaders after an Executive Director (ED)/CEO departs? Your eyes are not deceiving you! More and more nonprofit organizations are benefiting from bringing on an interim leader during a time of transition. While sometimes it makes perfect sense to hire a new Executive Director to take over from a departing ED, in many instances it can be advantageous to first bring on an Interim ED for a period of time.
WHEN TO CONSIDER AN INTERIM LEADER?
There are some situations where interim leadership just makes sense. One is the departure of a founder or long-term Executive Director/CEO. Imagine how difficult it would be to an incoming ED to fill the shoes of a long-time, beloved leader immediately after their departure! Bringing on an interim leader can provide a little time and space that will ultimately allow the next ED/CEO to thrive.
Another situation where an Interim ED can be useful is when the organization is considering a major strategic shift. Perhaps the Board of Directors wants to use the departure of a long-time leader as an opportunity to explore a major change for the organization, like a merger or a strategic shift in programs. An interim leader can help the Board explore those options and even help steer the organization during an important pivot.
There are various other situations in which hiring an interim leader might be advantageous. We interviewed three different Seattle-based nonprofit organizations who brought on Valtas Group consultants to provide interim leadership. Here, we share with you their thoughts on why interim leadership made sense for their organizations, and how it shaped their trajectory.
STORIES FROM THE FIELD
Small Organization: City Fruit
City Fruit helps put Seattle’s urban orchard to its best and fullest use. The organization harvests fruit from public and private orchards and redistributes it to food banks and others in our community who are in need.
In City Fruit’s case, their Board of Directors elected to bring on interim leadership because they wanted to give themselves time to have a thoughtful hiring process for a new, permanent ED. After a period of organizational growth, they felt the time was right to take stock of the organization’s programs and finances before bringing on the next ED. They also wanted an organizational assessment from an outside perspective, which would help inform their ED search. Board President, Patrick Gordon, said, “We knew that we had the funds to bring on an Interim for a certain period. That would allow us to take more time and care in hiring the new ED.”
City Fruit especially benefited from the outside perspective that an interim leader can bring. As Patrick said, “when someone knows they’re in an interim position, they have more liberty to share concerns with you without being concerned about losing a job.” The organization was able to use the Interim’s assessment to implement some changes immediately which shaped the hiring process, and to provide ideas for the Board to consider in the future as the organization grows.
Mid-Size Organization: Ada Developers Academy
Ada Developers Academy is a nonprofit, tuition-free coding school for women and gender diverse adults. They are working to break down the barriers that have excluded some people from the tech industry.
Ada chose to bring on an Interim Executive Director during a time when they needed a new leader on short notice. As their permanent ED was departing late in the year, their Board of Directors didn’t feel that it was realistic to identify a new ED in December. Yet, they were committed to having executive leadership to manage the organization’s operations and support their staff. One of Ada’s co-founders, Scott Case, said this about Valtas Interim ED: “She knew what needed to be done at the financial, operational, and managerial level. She was able to keep those things moving forward.”
One of the biggest benefits of interim leadership that Ada board members voiced was the Interim’s help in recruiting the next leader of the organization. They also helped the organization with strategic planning, building up the board, and getting the staff ready to accept a new ED. Said Board Chair, Scott, “all of those things helped us tell our story to attract great candidates.” Valtas Group also led the search process to locate their next ED, who has successfully picked up where the Interim left off.
Large Organization: Keiro Northwest
Keiro Northwest is the nonprofit organization that owns and manages Nikkei Manor, an assisted living community in Seattle’s International District designed specifically to meet the needs of Japanese American elders.
Keiro chose to move forward with an Interim Executive Director when they closed a skilled nursing facility in Seattle and five associated businesses, shrinking from about 350 employees to 40. Real estate needed to be sold, contracts terminated, and all financial systems replaced. Because they went from two facilities to one, their leadership needs changed. Said Keiro Northwest President, Ted Tomita, “I don’t think our organization needs a permanent Executive Director right now.” In addition, Ted reports the organization is saving money by having a part-time Interim Director, rather than bringing on a full-time ED. For these reasons, they have decided to continue operating with an Interim ED until they have a clearer idea of the organization’s long-term needs.
One major benefit that Keiro’s Board of Directors experienced with their Interim ED is continuity of operations. While the structure and work of Keiro is evolving, “he has everything under control. He knows what he’s doing.” That has given the Board peace of mind during the time of transition.
ASK VALTAS
Wondering if bringing on an interim director from the Valtas Group might be the right move for your organization? Please drop us a line or give us a call. We are happy to have a confidential conversation about your organization’s unique situation.
