When you DON’T Hire an Interim Executive

It might be easiest to understand the value of an interim executive director (or Interim CEO or whatever you call it) by looking at the challenges that arise when you don’t have one.

If a nonprofit organization chooses to bring in a permanent executive director without hiring an interim director first, several potential outcomes and challenges may arise. Because even when the executive transition is planned and harmonious, transition is stressful!

Transition Challenges: The disruptions of transition increase organizational challenges such as a leadership vacuum; a decline in operational efficiency; and uncertainty, anxiety, and reduced morale among staff, volunteers, and stakeholders. The new executive director may face significant pressure to address immediate challenges. But the new person is on a learning curve — even if they’re an internal hire. Without having a complete understanding of the organization and/or the role, the new ED may not be able to make thoughtful, strategic decisions. Without having the opportunity to assess organizational needs and build relationships with the team, the new executive director may find it difficult to justify changes to staff and stakeholders they may feel are necessary to improve the organization.

Decreased Support for New Leadership: Leadership may be facing difficult decisions, such as shifting program priorities, restructuring the org chart, or letting go of certain employees, that will be met with resistance from current staff members. Without a skilled interim executive to manage the transition — and yes, take the heat for potentially unpopular changes — the new ED is faced with a choice of either not making needed changes or making changes that negatively impact relationships with staff. If they make the tough decisions and necessary changes, then they must deal with the fallout from staff, volunteers, and stakeholders. The associated stress and challenges increase the risk of the new leader burning out and/or leaving the organization prematurely.

Delayed Organizational Improvement: If the new executive director decides not to make necessary changes in order to maintain staff support and harmony, the organization may miss opportunities for improvement and growth. It can become stuck in its current state, with inefficiencies and obstacles that hinder progress.

While a permanent executive director can succeed without an interim period, it can be a more challenging process and may take longer for the organization to stabilize and thrive under new leadership. To mitigate these challenges, nonprofit organizations should have succession plans in place, provide thorough onboarding and support to the new executive director, and communicate transparently with staff and stakeholders about the transition process. Additionally, efforts should be made to build trust, involve employees in the decision-making process, and provide support to those affected by changes. A thoughtful transition and skilled interim executive will set the stage for the new executive director to be successful.