Success by Design Not by Chance: Managing Leadership Changes in Your Board
One thing that is constant for every CEO of a not-for-profit company is change. In this article I want to chat about planning, adjusting, and succeeding when your “boss”—the board’s chair—changes every few years. I am now in my ninth year as Executive Director with the Arts Club Theatre Company, a 45-year-old institution, and today working with the sixth chair of my tenure. Each chair has had a unique style of leadership, with varying levels of time commitment for, and connection with, our company. My current chair is a very busy senior partner with a national accounting firm that has him out of town or unavailable for stretches at a time; in contrast, my last chair was a retired professor who had a flexible schedule. While the company’s needs have not changed dramatically in the past decade, with each incoming chair I have had to adjust how I communicate. The key to managing the transition from one chair to the next while assuring that your company stays on track is to ensure that the structure of your leadership governance aligns with the long-term strategic and indentified needs of the company. My mantra is “structure follows strategy.” This has served me well in general, and on this particular topic it has been essential. But let’s step back for a moment. Several years ago, I was enlightened by a simple but very incisive diagram. Susan Stevens, an American expert in the lifecycles of not-for-profit boards, ran a diagnostic study of the benchmarks of a board as it evolves through critical phases. This diagnostic is extremely helpful in identifying the developmental position of a board and company: Diagnostic Lifecycles of a Not-for-Profit Board, by Susan Stevens The “aha” moment for me came when I used this diagram to not only pinpoint my company’s position in the development cycle, but also to identify the type of leadership required to manage our status. For example, if your company is in a “mature” place—you have good working governance policies, experienced management, and stable financial structures—then the chair should be someone who can function at that level. But if your chair is more of a “start-up” type of person who wants to get involved in day-to-day operations, then the fit won’t be right. The ideal candidate in whatever situation is someone who is a quick learner, fully engaged with the mission and role of the company, and, of course, a mentor who can inspire and create a legacy on which to build. Identifying this person is the responsibility of the entire board, along with the CEO. Throughout our nomination process, we are constantly on the lookout for a potential chair. After serving four or five years on our board, those members with leadership qualities usually emerge and become very apparent to other board members and the CEO. Going back to structure now, it is critical that a transitional framework of board leadership is developed to fit the needs and position of the company. At the Arts Club, the maximum term length for our chair is two years. This means that by the time a new chair takes up the reins, he or she must be intimately familiar with the strategic direction, financial needs, and goals of our company. With this in mind, our governance committee identifies a chair-elect, who is confirmed by the board one year before the expiration of the current chair’s term. This allows the chair-elect time to observe and engage in critical strategic and governance discussions. One year later, when the chair-elect assumes the role of chair, he or she has had a full year of leadership training, so to speak. In addition, the immediate past chair remains on the board for at least one more year to provide assistance, if necessary. This is one of the most important aspects of the transition process; from the CEO’s perspective, this structure assures me that the needs of the company are continually understood, and I can rest more comfortably knowing that my “boss” is always up to speed. Once a new chair is in place, he or she will no doubt bring a personal sense of style and leadership. In an ideal world, your chair is not a caretaker; instead, he or she should continue to strengthen your place and mission. At the end of the day, the structure, and even the strategy, is only as good as the people behind it. Structure in concert with an engaged leadership will ensure a successful environment. Trained first as a musician, Howard has served as the Executive Director for the Winnipeg Symphony Orchestra, Ballet British Columbia and was the Orchestra Manager for the Vancouver Symphony Orchestra and the Orchestra of St. Luke's (NYC). In 2004 Howard completed the Stanford University Graduate School of Business/National Arts Strategies Executive Program for Non-profit Leaders in the Arts. In 2006 Howard completed the year long program of Leadership with the Shannon Institute in Minneapolis MN and has just completed the year long Executive Director Learning Circle program with Volunteer Vancouver. Howard has been an active member of several volunteer boards and committees and currently sits on the Board of Directors for Tourism Vancouver and the TELUS Vancouver Community Board. This year Howard has joined Vancouver Foundation’s Arts & Culture Advisory Committee and is a lifetime Honourary Governor for the Leon and Thea Koerner Foundation.
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