The costs of high-turnover in nonprofit leadership

Aloha! Because the nonprofit sector is a major economic force in America, I was preparing today to write about the high turnover in nonprofit organizations. I came across this blog post which provides a better explanation on this subject than I could put together. 

My personal opinion is that high turnover is the result of two things: 1) Not staying relevant; and 2) Board apathy. I would also add that unless the full Board has a clear understanding of the role of the Executive Director, they will serially hire according to a fictional job description. Statistics also indicate that a greater majority of Boards do not regularly evaluate the Executive Director, despite that responsibility being one of the primary functions of a Board.

Here's the link to this page which includes some great comments.
http://www.nextlevelnonprofits.com/costs-highturnover-nonprofit-leadership/

• Posted on August 30, 2012 
• in Blog posts 
• by Natasha Golinsky

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In a discussion recently on LinkedIn, I asked a group “why do you think executive turnover is so high in the nonprofit sector and what can we do to help the leader stay in one spot for longer?” The response I got was interesting – the majority of the respondents felt that high turnover was good because it was a chance for the organization to have new ideas infused and to not get stuck in a rut.  Despite all the opinions of this nature I couldn’t help but see the collateral damage of high leadership turnover: low staff morale, inconsistent culture, lack of trust in the organization’s leadership, high financial costs of finding replacement etc. I know that organizations need a continuous flow of fresh ideas but I could not see how turning over the CEO every 4-5 years could be a good thing.

As I continued to read Forces for Good, I came across a fascinating fact; successful executive directors and their top teams have extraordinarily long tenure staying, on average, 20 years. However according to the Daring to Lead 2011 report, statistically just 25% of nonprofit executives expect to stay in their jobs for more than five years.

What are some of the costs of high-turnover in leadership? 

1. Real impact often takes decades, not years.  If you continue to change the plan, it is incredibly more difficult to get any traction towards your goals.

2. Executive directors and senior managers spend much of their time cultivating relationships – if a leader leaves, some of these are lost.

3.  Most nonprofit work relies on tacit knowledge embodied in the staff; when top leaders leave, the organization loses accumulated wisdom and skills.

4. Because the issues that nonprofits are trying to solve are so complex, constant leadership change causes the organization to focus more internally, rather than on external results.

5. Emotional damage to the team having to adjust and then readjust every time their leadership team changes.

6. Financial costs. It has been estimated that the costs of recruiting, interviewing, hiring and on boarding an ED can cost up to $50,000 – money in most cases that the organization could better spend somewhere else.

7. Mission drift as each new leader has their own take on how to best grow the organization.

 What do you think?  Is high-turnover good for the sector or is it a disruption to the organization fulfilling its strategy?  

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Where is Philanthropy?

I was born and raised in Honolulu, and in recent years have lamented the fact that the O`ahu population has doubled since I was in high school, it's over-crowded and over-developed. I found less and less evidence of neighborhoods and communities that were a big part of my youthful exuberance. My son has often commented that he wished he could experience the Hawai`i of my childhood because without a doubt, it was the greatest place on the planet to grow up.

So, for a myriad of reasons, we relocated to Lahaina, Maui. And we now find ourselves fortunate to be in the center of the best of both worlds. There is more opportunity in terms of securing stable employment, and one need not look beyond the surrounding neighborhood for some "ono backyard kanikapila". The sense of community remains in tact, and I am home once again.

The nonprofit community is diligently supported by the public sector here, and philanthropy is thriving. One of my closest Lahaina connections is a "Traditional Intellect" and has assumed the charge of caring for a cemetery that rests alongside the oldest historical landmark on Maui island, Waiola Church. He leads a group named Na Kia'i O Waine`e, and they are the stewards of the Royal Tomb at the cemetery's entrance, as well as numerous other gravesites that mark the resting places of Hawai`i's chiefs and chiefesses. The ancestral grounds are cared for with all the protocol and sacred ritual that rivals the canonization of Mother Marianne Cope - and rightfully so.

                  

Naturally, there is a much deeper, richer, profound history that can be told here about the Royal Tomb and the graves at Wainee (the location that inspired Michener's "Hawai`i"), however, today I want readers to understand the broad spectrum of the nonprofit endeavors. Within a mile's distance that we traverse each day, we will encounter someone or something that relies on our philanthropy.

Take notice! What have you seen today that relies on our philanthropy?

Send your donation to: 
"Na Kia`i O Waine`e"
c/o Waiola Church
535 Waine`e Street
Lahaina, HI 96761-1109

Mahalo!!

Maui No Ka Oi

Aloha and welcome to my new blog. I am anxious to connect with anyone directly or indirectly connected to the nonprofit sector in Hawai`i, and beyond our sandy shores, that are interested in making a positive contribution toward philanthropic objectives.

Blogging has just been added to my social media toolkit, so please be patient as I navigate my way to sharing information in the most productive and purposeful way.

Let's just use this first post as a way of introducing a new and dynamic way of creating a path to open and honest dialogues about communities, best practices in nonprofits, and any issues that matter to you. Through our voices, the independent sector can continue to be a powerful economic force in America, providing quality services to those in need, and **gulp** job creation!

For starters, here's a great link found on www.independentsector.org:

http://www.independentsector.org/uploads/about_sector/roles_nonprofit_philanthropic_community.pdf

Start thinking and sharing with the rest of us.

Mahalo.