Featured Article: Greater Cincinnati Nonprofit News September 19, 2024
by Kathy Kraushar, Vice President of Executive Search, Cooper Coleman
As nonprofit founders and long-term leaders retire, boards are increasingly taking on the responsibility of designing and leading executive searches for their next leaders who will guide their organizations' growth and progress.
For many organizations with retiring long-time leaders, this will be the first search the board undertakes. Here are a few crucial steps to take and key considerations to make when designing a successful CEO search.
» Appoint the Search Committee and Designate Its Chairperson. The Search Committee should represent a range of stakeholder perspectives and expertise among the Board and throughout the community. It is important to identify a Search Committee Chair who can clearly define expectations and align the Board on its expectations for the next CEO to achieve the desired results. The Board must also grant the Search Committee Chair the proper authority to manage and maintain the process.
» Establish a Charter. The Search Committee is typically established by the Board as an ad hoc committee with a defined charter. Their responsibilities and the recruitment process should be clearly outlined and voted on/approved by the Board for a universal understanding of the Committee’s charge.
» Decide How to Conduct the Search. Given the time-intensive nature and complexity of conducting a successful CEO search, many Boards opt to partner with an Executive Search Firm to ensure the process is exhaustive, inclusive, well-organized, and efficient. A search firm provides critical expertise, offers an objective perspective, and manages logistics, allowing the Search Committee to focus on key decision points. The Search Committee’s role is to review proposals, conduct interviews, and select a firm that best aligns with the organization’s goals and values.
» Define the Search Process. The Search Committee will work with its chosen Search Firm to design and conduct a comprehensive, equitable search process. The firm will help to determine the appropriate participants in the interview process, the format of interviews, and establishment of clear criteria for evaluating the candidates that directly aligns with the position profile.
» Develop the Position Profile. Developing a competitive, realistic, mission-focused position profile is the cornerstone to attracting and securing a highly talented, aligned leader. To achieve a comprehensive understanding of the organizational context and mission, the search firm should conduct a rigorous discovery process with internal and external stakeholders. Learnings from these key stakeholders inform the Search Partner and the Committee of the crucial areas of focus, which will ultimately lead to the best candidates for consideration and an optimal final selection.
» Establish a Timeline. Establish a detailed search timeline and secure calendar holds with all parties involved in the interview process to keep the process moving at a steady pace. Set the stage for flexibility in the schedule should you encounter a competitive situation.
Following the presentation of candidates from the Search Firm, the Search Committee should select candidates to advance for interviews, ultimately selecting finalists to recommend for the Board’s consideration. Typically, this marks the fulfillment of the Search Committee’s responsibilities.
» Board Interviews. The Board should interview each finalist in person, after which the Search Partner should facilitate a summary discussion and final deliberation. The Board will then proceed in accordance with its bylaws, which may include calling a special session to vote on the chosen candidate for its next CEO.
» Prepare the Offer. Upon an official selection, the Board typically grants authority to the Executive Committee or Board Chair to negotiate the terms of employment, salary, start date, etc., which may be facilitated by your Search Partner. The Board should also consider establishing an ad hoc Transition Committee to prepare for the candidate’s successful onboarding, internal and external communications, etc.
» Finalize the Offer. Once an initial offer is determined, the Search Partner or Board Chair will extend a verbal offer, followed by a written offer letter for execution following verbal acceptance.
» Celebrate. Don’t forget to take a moment to acknowledge the good work of all those involved and celebrate what is a milestone achievement for the organization and its future.
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