Leadership transitions are inevitable in any organisation, but for non-profits they can pose particular challenges.
In New Zealand, where small non-profits and charities often depend on a few key individuals, the departure of a key person at governance or management level can disrupt operations, jeopardise funding relationships, and stall progress towards organisational goals. Succession planning is not just a safeguard, it is a critical strategy to ensure continuity, stability, and long-term success.
Too many small non-profits are started by a small team of enthusiasts with little or no idea how leadership of the organisation will continue if the founder(s) are no longer able to continue. The very existence of the organisation can be threatened if transitions are not carefully thought out and executed.
Why Succession Planning Matters
Succession planning involves preparing for both planned and unexpected leadership changes. It ensures that an organisation can continue to operate effectively during transitions while preserving its mission and values. Without a clear plan, organisations risk losing institutional knowledge, donor confidence, and operational momentum. A well-thought-out succession plan builds resilience by identifying future leaders, fostering leadership development, and creating contingency strategies.
Key Steps in Succession Planning
- Identify Key Leadership Roles
Start by pinpointing the roles critical to your organisation’s success. These typically include the executive director, board chairman, CEO, and other senior positions. Consider both formal leadership roles, and informal ones where individuals hold significant influence or institutional knowledge. For small non-profits, this might also include volunteer coordinators or fundraising leads and informal leadership roles that may be overlooked such as a long-serving volunteer or fundraiser. - Assess Current Leadership Capabilities
Evaluate the strengths and gaps within your current leadership team. Use tools like a skills matrix to identify areas where additional expertise or training is needed. This assessment helps in determining whether potential successors exist internally or if external recruitment will be necessary. - Develop a Leadership Pipeline
Invest in leadership development programmes tailored to your organisation’s needs. These could include mentorship initiatives where current leaders guide potential successors or training programmes focusing on strategic thinking, financial management, and stakeholder engagement. For example, organisations such as the LEAD Centre for Not-for-Profit Governance in New Zealand provide resources to build leadership capacity and the ‘Workshops’ page on this site often features a number of useful courses at a reasonable cost. - Engage the Board
The board plays a vital role in succession planning, particularly in overseeing transitions at the executive level and it is a prime responsibility of the board to ensure that succession planning is given more than lip-service. Ensure that the board is actively involved in developing and approving the succession plan and monitoring the implementation of it. Regular discussions about leadership needs should be integrated into governance practices to align with the organisation’s long-term vision. - Plan for Emergencies
Unexpected departures can disrupt even the most well-run organisation. Develop an emergency succession plan that outlines interim leadership arrangements and ensures critical knowledge is documented and accessible. Cross-training staff or volunteers can also minimise disruptions during sudden transitions. - Communicate Clearly
Transparency is essential during leadership changes to maintain trust among staff, donors, and stakeholders. Clearly articulate the reasons for the transition and outline how the organisation will manage it. This helps curb speculation and reassures stakeholders of your organisation’s stability.
Best Practices for Small Non-Profits
- Start Early: Succession planning should be treated as an ongoing process rather than a one-time task.
- Tailor Your Approach: Small non-profits may not have large teams or budgets but can focus on cultivating internal talent through mentorship and training.
- Document Processes: Maintain up-to-date records of key roles, responsibilities, and organisational procedures to ensure smooth handovers.
- Embrace Diversity: When identifying future leaders, prioritise diversity of thought and experience to bring fresh perspectives to your organisation.
Practical tips for Small Non-Profits. Identifying Leaders and Documenting Processes
For small non-profits in New Zealand, succession planning can feel daunting, especially when resources are limited. However, there are practical and cost-effective ways to prepare for leadership transitions. Here are some actionable tips to help identify potential leaders within small teams and document organisational processes efficiently.
Identifying Potential Leaders
Finding future leaders in a small organisation requires a keen eye for specific traits and behaviours:
- Look Beyond Job Titles: Leadership potential isn’t always tied to formal roles. Observe team members who show initiative, take ownership of tasks, and consistently go above and beyond their responsibilities. For example, someone who volunteers to lead a project or solve a problem may have natural leadership qualities.
- Focus on Soft Skills: Effective leaders often possess strong interpersonal skills, such as emotional intelligence, adaptability, and the ability to motivate others. Pay attention to individuals who demonstrate empathy, communicate effectively, and build positive relationships within the team.
- Encourage Responsibility: Provide opportunities for team members to take on new challenges or responsibilities. This might include leading a small project, managing a volunteer group, or representing the organisation at community events. Monitor how they handle these tasks to gauge their readiness for leadership roles.
- Use Peer Feedback: In small teams, colleagues often have valuable insights into each other’s strengths. Create opportunities for peer feedback to identify individuals who are respected by others and exhibit leadership traits.
- Invest in Development: Once potential leaders are identified, offer them opportunities for growth. Peer-based learning environments can also help emerging leaders build confidence and skills.
Affordable Ways to Document Processes
Documenting organisational processes is essential for smooth transitions during leadership changes. While small non-profits may lack the resources for expensive tools, there are free or low-cost options available:
- Google Drive: This free platform allows you to create shared folders and collaborative documents. Use Google Docs to outline key processes such as fundraising workflows, volunteer onboarding, or financial reporting. Real-time editing ensures that documents stay up-to-date without additional costs.
- Trello: Trello is a free project management tool that uses boards and cards to organise tasks visually. Create boards for different organisational processes (e.g., event planning or grant applications) and use cards to break down each step. Trello’s simplicity makes it ideal for small teams.
- Templates and Checklists: Develop simple templates or checklists for recurring tasks. For instance, create a checklist for running an annual fundraising campaign or preparing board reports. These can be stored digitally and shared with new team members as part of their onboarding.
- Record Knowledge from Key Individuals: Capture institutional knowledge by interviewing long-serving staff or volunteers about their roles and responsibilities. Record these conversations or summarise them into written guides that can be easily accessed when needed.
- Leverage Free Training Resources: Websites like LEAD or GROW offer workshops on governance and organisational management that include guidance on documenting processes effectively. These resources can help ensure your documentation is comprehensive yet manageable.
Why These Steps Matter
For small non-profits, identifying future leaders and documenting processes are critical components of succession planning. These steps not only ensure continuity but also empower your organisation to adapt during times of change. By using affordable tools and focusing on the strengths within your team, you can build resilience without straining your resources.
Conclusion
Succession planning is not just about preparing for change; it’s about ensuring your organisation thrives through it. By proactively identifying future leaders, building their capabilities, and creating robust transition plans, small non-profits in New Zealand can safeguard their missions against disruption. Whether it’s a planned retirement or an unforeseen departure, having a clear strategy will position your organisation for continued success while maintaining trust with stakeholders.
The time to start succession planning is now — your organisation’s future depends on it.
Some useful resources:
https://www.myadvisor.co.nz/projects/future-proofing-non-profits-with-leadership-succession
https://causeleadership.com/8-strategies-for-non-profit-leadership-transitions/
https://www.foundationnorth.org.nz/report/developing-leadership-capacity-and-capability-in-the-community-sector
https://causeleadership.com/8-strategies-for-non-profit-leadership-transitions/