2.     Work closely with your board to define the role (Ensure the Board’s full commitment to this process. A healthy succession process involves more board time than usual), be clear about what you want this new person to achieve and where their authority will begin and end. If you are planning to still be involved in the organisation, state how your new role will operate and ensure an effective transition plan to migrate to this new position step by step.

3.     Prepare formally, and in detail, for when the time to hand over the organisation comes. Document your processes, data, contacts, and important information. This will facilitate the transition and will ensure that data is preserved, and critical information is not lost in the process. This will help your incoming CEO to find their way into the organisation and limit the amount of base level questions.

4.     Take the time to work on a recruitment plan. According to the Stanford Social Innovation Review, leadership in the sector is scarce, searches for chief executive officers often turn up only one to three qualified candidates, compared to four to six in comparable private sector positions. As you plan, think of questions critical to your organisation and your mission, consider your current organisational situation and the challenges this person should tackle and overcome, and define the strengths the incoming CEO should possess.  

5.     Ensure your Board and/or Advisors are fully onboard in this process and agree a clear methodology that ensures you are assessing candidates against the same criteria and goals. It often helps to agree a scoring system against the key competencies to provide a rational comparison. Don’t be led by personality fit alone – focus clearly on the goals you highlighted and the person’s ability to meet those goals.

6.     Once you have chosen the right candidate to join the organisation, make sure to create a supportive and empowering environment for them. Avoid the ‘Founder’s Syndrome’, come to terms with the fact they are not you, and will likely act and make decisions differently, and that different is not necessarily wrong. Offer ongoing support without micromanaging, or failing to relinquish power, provide the space for them to lead and make decisions independently, but remain to be available for advice and guidance if needed. Ensure the board is equipped and empowered to directly support the candidate in this transition.

7.     Plan a structured handover period, provide opportunities for the CEO to meet the team, stakeholders, understand ongoing projects, and familiarize themselves with the organisation's operations. Be open about your decision, publicly support your new CEO to inspire confidence and continuity within the organisation (introduce them to your major donors, partners, and community to help grow and establish relationships – give them access to your network) – this will slowly build trust between you. As BoardSource states, in order for a transition to be successful, both internally and externally, good communication is paramount.

8.     Research conducted by Standford Social Innovation Review found that 45% of boards work out a continuing role for their outgoing founders. Handing over the organisation to a new CEO doesn’t mean you need to completely disappear. Consider transitioning to a strategic advisory role within the organisation, but make sure to make this a platform from where you can continue to contribute, and not a place from where you’ll remove the CEO’s freedom to lead.

9.     As your new CEO starts to take on the reigns of the organisation, support their initiatives for innovation and change. Recognize and celebrate milestones and successes under their new leadership and serve as an advisor if some decisions inevitably don’t go as planned.



To the Incoming CEO:

1.     Before you even decide on whether to accept the position or not, ensure that you deeply understand the organisational mission, vision, values, and impact. Make sure these values and interests are aligned with yours, and that you share the same passion to serve that group of beneficiaries. Passion for what you do, and the impact you have, will be one of your key drivers to fulfilment and ultimate success.

2.     Do your homework. Take the time to learn about the organisation (Who is your founder? Why did they decide to start the organisation in the first place?), go through the organisational mission, culture, values, and history - again. Learn about your immediate environment, other similar organisations and key stakeholders. Meet those stakeholders, staff members, and volunteers to grasp their perspectives and insights. The more you know, the better equipped you will be to take on the role.

3.      Understand that the founder will likely be having an emotional time handing the organisation over to you. Respect their emotions and vision while bringing your unique style and ideas to push the organisation forward. Don’t let push backs discourage you, don’t take it personally, communication will be key at the time of facing challenges.

4.     Establishing trust is critical. Engage with the founder, board members, and staff openly and respectfully. Listen actively to understand their vision, concerns, and expectations. As you listen to their concerns and expectations, conduct a full assessment of the organisation's operations, finances, programs, and challenges. Develop a strategic plan aligned with the mission while using the data you have gathered in addition to adding fresh perspectives and innovative ideas.

5.     If you have been chosen as the person to lead the organisation in this new chapter, you are likely bringing skills and knowledge that are required at this point in time. Don’t feel the need to replicate what the Founder has done or even become like them; it will be an impossible task to achieve. Work on building on the foundation that has been given to you  and add value through your knowledge and experience.

6.     Your opinion matters. If you feel you are not being heard, be assertive, constructively critical, and give tactical solutions. Raise your concerns in a timely and respectful manner. Remember, this is a process (sometimes a difficult one), and setbacks are normal and expected.

7.     Communication (again) will be key to your own and the organisation’s success. To build trust, encourage open and transparent communication at all levels. Keep stakeholders informed about your vision, plans, and decisions. Build relationships with the staff, volunteers, board members as well as the founder.

8.     Gear up with strength and determination, the journey won’t be easy. A Mckinsey & Company article noted that, as demonstrated through academic research, traits such as drive, resilience, and risk tolerance make CEOs more successful.

Transitioning from founder to CEO marks a significant milestone in the evolution of a not-for-profit organisation. Although this rarely comes as an easy, stress-free process, if all parties are accepting of change, promote communication and collaboration, respect the organisational mission, and set healthy boundaries, then  both CEO and founder will have a greater chance of ensuring a successful transition. This will set the stage for continued impact and growth.

If you are a founder thinking of handing your organisation over to a senior leader, or a senior leader who has taken over an organisation, and would like to have a conversation about this, contact us at info@recruit4good.com

In addition to the reference sources quoted in this article – we also found ‘Making Founder Successions Work’ to be an insightful work.

By Paola Carrillo