Transitions and Updates

 Greetings blog readers! While I don't blog nearly as much as I used to, I'm still here, and still quite busy.

I'm in the midst of wrapping up an Interim Executive Director position, and already beginning another long-term contract and scheduling trainings for 2022!

First the Interim job... Since May of 2020 (second month of "shelter-in-place") I've been the IED for Friends of Oakland Animal Services (FOAS). I will always think of FOAS as my "pandemic position," as so much of the experience was colored by the ongoing response to COVID-19, and 95% of the work had to be done virtually, online.

The assignment started with a merger exploration. After several months of (Zoom) meetings with the other nonprofit we all reached the conclusion that, while we were all committed to some form of future collaboration, a full merger was not appropriate at this time.

We then turned our attention to getting ready to hire FOAS' first permanent Executive Director. This included putting fiscal controls into place, creating administrative policies and procedures, and getting our staff benefits for the first time. An old colleague from CompassPoint days came out of retirement to help us with interviewing stakeholders and doing an organizational assessment. 

FOAS has now brought on an excellent young ED who is well positioned to grow the organization over the next several years. I'm still on contract to provide some support as needed, but he's doing great.

My new long-term contract is with the Recovery Cafe Network. I had previously been the Executive Director for Recovery Cafe San Jose (2015-2019), and for the past two years I've been a founding Board member helping to launch Recovery Cafe Santa Cruz. 

Obviously, I'm a fan of the RC model, and feel it is a needed and successful approach to providing long-term support for addiction, homelessness, mental health challenges, and recovery from a thousand other life traumas.

My contract (part time) is to be a "California Catalyst," providing technical support and guidance to new emerging Cafes in the region, identifying others who may be interested in implementing the model, and developing some regional funding for all the local Cafes.

My online courses in Grant Proposal Writing and Board Basics are continuing, and doing well, and have led to my first East Coast in-person training contract! I will be doing a version of the Board training, and a session on dealing with organizational change in South Carolina in March 2022 (more on that later).

As the world seems to emerging from the worst of the pandemic into a new reality, I am pleased with where I am, and the work that I'm doing. I hope things are well for you, too. Thank you for reading.

The Virtual Interim ED

A few weeks ago I began a new consulting gig as the Interim Executive Director of the Friends of Oakland Animal Services (FOAS).

No big new thing there. I've taken Interim ED assignments half a dozen times before. But I've not taken an assignment like this during a time of official Shelter-in-Place orders (but, really, who has?).

Previously, the only "virtual" consulting I've done has been limited to very short engagements. A few conversations, and advice, dispensed by phone or email. I've also been conducting my Basic Grant Proposal Writing course online, but again, for each student, it's a limited amount of contact and a few messages exchanged while they complete the class.

This is an entirely new adventure, with my work - at least to start - being conducted entirely online, via email, phone, and a seeming endless number of Zoom and Google Meet video calls. It's a very different experience, having staff that I've never in person, and building relationships with them, and with my Board members.

Hopefully, it won't be too many more weeks before the Shelter-in-Place restrictions in the Bay Area ease to the point where we can meet "in real life," but even after that, it won't be a daily thing. This is a small organization, with no actual office space. They mostly worked remotely already. When shelter-in-place ends, many of our regular meetings may be in person, but the bulk of the work will still be done remotely.

At FOAS, our work is changing along with the rest of the world during this global pandemic. We will find ways to transform the organization that will be stronger and even more successful than before shelter-in-place. This is a new and different way for me to be an Interim ED, but the challenge is exciting, and I'm looking forward to seeing what develops.

I'm Back

After four years of working as a "permanent" full-time Executive Director, launching a start-up nonprofit, and only taking a few short-term consulting gigs from existing clients, I am once again available for new opportunities.

So, what have I been doing these four years? I took on the challenge of being the first Executive Director of Recovery Cafe San Jose. And, yes, there were many challenges and frustrations, but it was also one of the greatest experiences of my professional life.

RCSJ is a healing community for those traumatized by addiction, homelessness, and mental health challenges. Through support groups, classes, community meals, and social activities, members build their recovery capital, recognize their self-worth, and achieve their personal goals.

When I arrived, the Cafe had only been operating for about one year, and was only open three days each week, and serving four meals. Of those meals, only one was prepared fresh in-house; the others were delivered by another partner organization. They are now open five days each week, and serving seven meals, all created in their own state-of-the-art, commercial quality kitchen.

In 2015, there were only had about 50 members who were actually participating in their Recovery Circles regularly. There were no consequences for missed Circles, and not much direction for what was expected of members besides showing up.

As I leave,  membership is over 160, with all members actively sharing in Circles and a number of other activities, and holding themselves (and their peers) accountable for being present and participating. When they're going to miss a Circle, they call in to make sure they don't lose their valued membership.

In 2015, the Cafe had a handful of Circles, and a few drop-in activities. Now there is a full schedule of Circles, a robust School for Recovery curriculum, and a Community Participation Program that uses one-on-one kitchen and barista training to build self-esteem and social skills, as well as job skills.

Then, the Cafe had not yet lifted any members up to be peer leaders. Now 30% of Circles are peer led, members have created School for Recovery classes, taken charge of the coffee bar, participated in a planning retreat and program committee meetings, and taken on other leadership roles.

Along the way we also did a $1.2 million renovation of the Cafe itself, financed through CDBG funds, and all the delays, bureaucracy, endless meetings, and hard work that implies. Not to forget operating programs at a different location while managing the construction at home base.

Even with all that, much of what we did in the last four years was behind the scenes. When I walked in, basic things like Worker's Comp coverage were lacking, the financial reports to the board had the same wrong figure in the "balance forward" space month after month, there were no policies on holidays, time off, or benefits, etc., etc. Needless to say, that was all corrected, and they are now in full compliance legally and with best practices of proper financial systems and reporting, and have completed several successful audits.

In those four years, I took RCSJ from being barely recognized or understood, to being held up by our peer organizations as a crucial part of the local effort to end homelessness, including being recognized by the Santa Clara County Behavioral Health Board as a "2017 Agency Community Hero."

But what I am most proud of and grateful for is the opportunity to have been a part of the lives of the Cafe members. It is their strength that kept me going and kept me humble. It is their example of striving for something better that inspired me to hold on to the highest ideals of what the Cafe can and should be.

It is sad to end this chapter of my career, but it is time to move on and apply these lessons in the next big challenge.

Challenges of an Interim Executive Director

Several weeks ago I had the pleasure of being interviewed by Kirsten Bullock for her Nonprofit Leaders Network podcast. The conversation turned quickly to my experiences over the years as an Interim Executive Director.

Whether your organization is thinking of using an Interim ED, or whether you are a consultant thinking of getting into this sort of work, I hope you will find some advice in this conversation that will help you navigate the relationship successfully.

We talked about staff and board relationships, priority setting, advice gathering, communications, self-care, and the million other considerations to think about when entering into an Interim situation.

Kirsten asked great questions, and the time on the phone with her passed quickly. And she sent me a nice box of cookies when it was all over.

You can listen to our interview, as well as other great podcasts, at the Nonprofit Leaders Network website.

Interim Executives Are Part Of Succession Planning

Yesterday, on Alan Harrison's Voice of Reason blog, he posted a great article about the pitfalls of bad succession planning and the occasional need for Interim Executive Directors. As a consultant who has five times served as an Interim ED, I agree with much of what Mr. Harrison has to say.

In Mr. Harrison's colorful example, Jack is the departing long-term Director, who helps to personally choose Jill as his successor. Jill then flounders along for about a year before being eventually replaced. The details of the scenario presented ring all too true, and a story we've all seen played out before.

An Interim ED can be a great solution following the departure of a long-term leader. It gives Board and Staff room to breath, consider mission, separate the reputation and legacy of the departing leader from that of the organization, and contemplate changes in their vision before making the mistake outlined in the blog of trying to fit Jill's round peg into Jack's square hole.

So, who should be your Interim ED?

A well-meaning board member stepping in may sound great, but unless they've sat in the ED's chair before, and have the time and attention to devote, this can be a disaster (not to mention the conflicting roles of ED and board member).

A senior staff member could be a good choice (particularly if they're "auditioning" for the permanent job), but be careful how you back-fill their regular position - or are you expecting them to do two jobs at once? Be careful of setting unrealistic expectations for anybody you put in this tight spot.

An out-of-work ED, who is looking for a permanent position has other motivations in accepting your Interim offer. They're number one goal is completing their own transition, not assisting your agency in yours. If this is somebody who you are seriously considering for the permanent position, do not make the mistake of "trying them out" on an interim basis.

Those of us who regularly take on Interim ED assignments as part of our consulting business do so because we're not necessarily looking for the gig permanently. In fact, when I've accepted an Interim job that includes searching for a permanent ED, I would consider it a conflict of interest to then apply for the permanent position.

My mission as an Interim is to work on the Board's agenda, not my own, and to facilitate as smooth a transition for the staff, clients, funders, and community as is possible.

Returning to Mr. Harrison's post for a moment, he ends on what he considers to be such an important point that he prints it in bold and underlined:

It is never a good idea to have the outgoing director have a say on his or her permanent successor.  No matter who the outgoing director is or how amicable the separation is.  Never.  Never.  Never.

I found this point surprising, and while I'm not certain I agree, thinking of some real life examples I'm not certain I can argue with him either. It certainly goes along with my point of using an Interim to provide "breathing room" for the Board and Staff to do some reflection on where they've been and where they want to go, rather than just trying to duplicate the leader who's just left - an often impossible and unforgiving task.

Yes, it may sound self-serving (and it probably is), but if your organization is facing the departure of a long-term, strong leader, bring in an Interim ED first, before starting your search for a permanent replacement. Oh, and I just might be available ;^)

About Interim Executive Director Services

There are many times in the life cycle of a nonprofit organization when it is appropriate to hire an interim CEO (or executive director) instead of bringing in permanent leadership:

• The loss of a long-term leader or founder,
• A change in strategic direction,
• Time to review long-term strategy,
• A financial or other management crisis that requires special skills,
• Consideration or negotiation of a merger.

Interim staff leadership during a period of transition gives a board of directors the time necessary to make appropriate strategic decisions. The use of a consultant as interim brings additional industry experience to the table in guiding the board through the strategy setting and transition process.

I have served as an interim executive director for five different organizations, each with a unique situation, and each with successful results for that organization.

• Two of my interim assignments resulted in successful mergers. One of a small, single-program agency into a larger regional organization, and the other of a mid-sized multi-program, single-topic agency into a larger regional organization. In each case I served as part of the negotiating team, protecting the interests of my client, and managing communications to staff, as well as managing day-to-day operations of the organization.
• A third assignment began with merger negotiations, but for strategic reasons the merger agreement was never completed. At that time the focus of the assignment became stabilization and sustainability of the organization before beginning a search for a new, permanent executive director.
• With another organization, I was asked to bring it back from the brink of bankruptcy after mismanagement by the previous executive director. My focus here was on bringing in new funding, re-negotiating a building purchase agreement, cutting the operating budget by 20%, and rebuilding the board from four to eleven members, before beginning the search for a new, permanent executive director.
• In only one situation was I asked to investigate, and then implement, a plan for bankruptcy and an orderly shut down of operations. Before proceeding with the shut-down, I held private interviews with all stakeholders, including funders, clients, board members, and others in the community, as well as other nonprofit leaders who had gone through bankruptcies.

To discuss the needs of your organization, please contact me at ken at goldstein.net. If I feel we may have a fit, we will arrange an initial meeting at which we will discuss your organization's situation and needs and create a personalized plan.

Interim Executive Director Cost Savings Question

I love it when I get a good question in my email that results in a good blog post. This is one of those situations.

If you're a regular reader of this blog, you know that one of the main things I do as a nonprofit consultant is serve organizations as an Interim Executive Director (IED).  When an organization is between leaders, and perhaps facing other problems, fiscal, strategic, or otherwise, they'll bring me in to run the agency for a limited term as kind of temporary CEO and on-site consultant.

Well, today I received a question from a colleague asking about hiring an IED. In part, the email asked:

... For an organization thinking of bringing in an interim executive before hiring a full-time executive, do you think there are any real cost savings to be had? My thinking is not really, it would be more to give time or focus to the organization and its next steps or to bring in a specific expertise to help move things forward? ...

My reply was:

The safest answer is to say that you're right, cost savings are not the reason to go with an interim; time to review, assess, plan, strategize, and hire the right person (or, more and more these days, merger) is.

If it's up to dollars and cents, you could really spin it either way, an IED costing more or less than a permanent ED. Let's say the organization's paying $70-85,000/year for a full-time ED [based on the type of organization the question related to]. An interim, depending on who they get and how they set their rates, might charge anywhere from $75-100/hour for their time.

On the surface, the Interim rate comes out much more than the permanent ED, but is the interim working 40 hours/week? I usually put in an average of 25-30 hours/week as an Interim. Also, the Interim's rate is the full cost. As an independent contractor, the organization is not paying the payroll taxes, health care costs, etc., associated with a "real" employee.

The bottom line is that the bottom line is not an argument for or against hiring an Interim. Getting things right is. And I'm available ;^)

Merger Complete

Now that the ink is dry and the papers filed and the merger official and done, I can publicly reveal that the Interim Executive Director assignment I was working on for the past 8-1/2 months was for the Support Network for Battered Women (SNBW), and that as of April 1, 2010, Support Network is now a division of the YWCA of Silicon Valley.

We completed the merger quicker than many thought possible, but we did it well. Because we knew we had an ambitious schedule we committed early to frequent meetings of the negotiations team, open and frequent communication out to the full board and staff of each organization, and to bringing together the implementation team and planning process even before the final agreements were completed.

The transition was smooth as the YWCA's CEO and COO each began attending SNBW staff meetings to assist with updates and get to know staff early. As negotiations wound down, the YWCA Administrative Director also began spending time at SNBW to begin answering HR questions and allay any concerns staff might have about transitioning to the YW's employment.

About that time it was announced that the YW's COO would be the Support Network Interim Division Director following the closing date, and she began dividing her time between the Support Network's office and the YWCA's office before the official merger date. When April 1 came, and my services as Interim Executive Director for SNBW were no longer needed, it was simple and stress-free to transition my duties over to her and make my exit.

Because of the focus on communications and transparency we managed to avoid the pitfalls of too-quick a transition and the potential jarring effect that could have had on staff and operations. As it was, when the official date came, it was a welcome move, well-understood by all, and a positive experience. Support Network staff attended a YWCA orientation session before the closing date, and a final private celebration of the 30-year history of SNBW took place to provide staff closure to that period in the organization's life.

Of course, while this was all happening each agency conducted their full due diligence review of the other agency's operations, including full financial review, personnel records inspections, etc., and a communications plan was continually updated to guide our messaging to key funders, constituents, and community partners.

As I've mentioned in earlier blog posts, this was my third time going through merger negotiations as an Interim ED. Each time is a little different, and the lessons learned help guide the next project, and then there's more to learn again.

And now, I'm available, once again, for an Interim (or the right permanent) Executive Director position, if you know of an agency in need of my services...

The Board's Role in Supervising the Executive

I get lots of interesting questions by email, and I try to answer as many as I am qualified to give an opinion on. In this case, the sender is looking for your opinions, as well as my own:

Hi, Ken. I have a question for you and your readers. I am wondering about the duty line between Boards and an Executive Director of a non-profit. What is the role of the Board in supervising that E.D.? If there are problems on a regular basis with how the E.D. executes his/her goals and objectives (i.e. things that fall under the auspices of the E.D. and not the board) does the board deal with this as a normal supervisor would (asking for explanations, suggesting or requiring specific solutions?) or does the Board have to stay quiet? - Jenny - Albuquerque, NM

Jenny brings up a common problem; boards that don't properly carry out their duty as the Executive's supervisor.

While it is true that nonprofit boards should have no role in supervising other employees (all staff should report to the Executive Director or subordinate), the ED reports to the board, and it is the board's responsibility to ensure that the ED performs to their contract. That includes the things Jenny mentions (asking for explanations, suggesting or requiring specific solutions) all the way up to the removal of the ED, if necessary.

Equally important, and even more frequently forgotten, is the board's role in supervising a successful Executive Director. When EDs perform well, boards often feel they have met their obligations to the ED. The result is that years go by without a formal annual performance evaluation, and often without a raise, even to keep up with the cost of living.

So, yes, Jenny, the Board (or the executive committee of the board) does need to execute proper supervision and evaluation of the Executive Director - in both bad situations and good ones.

Do any other readers have anything else to add? Please post your comments below!

Hiring an Interim ED

I am currently in the midst of my third assignment as an Interim Executive Director. I really enjoy these assignments, as I get to really learn about a number of different organizations, help them through some transition or another, and then move on bringing that experience with me.

That explains why I like these jobs, but, if your nonprofit is in the midst of an executive transition, why should you hire an outsider consultant as your Interim instead of somebody already on staff?

An "insider" can be a good Interim ED under certain circumstances, but there are dangers as well. I can tell you about one agency I'm familiar with that made a major error with an insider Interim.

Upon the retirement of their long-term ED, the Board was pleased to promote a certain senior staffer to Interim. This staff person had been groomed by the previous ED for the position, and the Board expressed confidence in her ability to lead the organization during the transition.

The key words there are "during the transition." The Board simultaneously began a major search for their permanent ED. The Interim, of course, applied, but so did many well qualified outsiders. While the Board, staff, funders, etc., all loved the Interim, one of the outsiders was hired to be the new Executive Director.

The Interim was demoralized to return to her staff position after being in the leadership post for nearly six months (and having been praised for her performance). She considered it a slap in the face, and so did many of the other staff. The new ED shortly had to contend with many key people resigning and leaving for other organizations, including the previous Interim ED.

Had an outsider been brought in as Interim, her feelings may have still been hurt at not getting the big job, but it would not have been such a public and obvious insult. Much of the fall-out would have been avoided.

What can you learn from this?

If your Executive Director (or really any other important position) is leaving, look inside your organization first and before the ED leaves. If there are no internal candidates that you feel good about promoting, hire a consultant to be your Interim ED before going to an external search. You can always promote the internal candidate after an external search, but taking away the leadership role once assigned is a hornet's nest you'd be better off avoiding.