Stanford Social Innovation Review

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Michele Popiel on Organizational Development
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I'm a trustee for a small nonprofit that provides prosthetic limbs in Vietnam, Sierra Leone, and Bangladesh. The organization is successfully raising funds and growing, but I'm concerned that the executive director is both overpaid and under-qualified to manage the growth. What's the best way to assess the situation and figure out next steps in staff development? (The organization is based in Seattle, has a budget of under $1 million, and fewer than five local employees. An ambitious strategic plan has recently been written.)

It is possible that your organization has reached that plateau which demands a new senior executive to achieve the next level of success. This is a natural occurrence in the evolution of organizations. Without sufficient information about the organization, the contents of your strategic plan or the performance or capabilities of your executive director, I am unable to determine whether you are at that stage. I am also wondering how the board operates as a group and whether you have shared your concerns with other trustees.

I would presume that your executive director has had a significant role in bringing the organization to its current success in growth and fundraising and creating the new strategic plan. As you and your colleagues interact with your executive director to discuss the plan's implementation, you have a prime opportunity to evaluate whether your ED has in fact the vision and ability to manage the next level of growth.

I would recommend that you look at my piece on Organizational Development on the ACT website. It should provide guidance to you in assessing what you will require in organizational resources to achieve an ambitious new strategic plan in comparison to what exists in your present organization. While you may find that the supplemental skills and capabilities exist in your current resources with some reorganization and training, you may just as likely find that you need to hire outside managers and a new executive to lead the growth.

As you carve out a potential new organization and the requirements for its leadership, you will be creating a rough job description for the senior executive and gaining a better sense of whether your current leader fits that role. I suggest that at some point you peruse current job offerings in the marketplace to gain awareness of the job responsibilities, skills, and capabilities required of leaders of organizations similar to your own and the corresponding salary ranges. A good place to start would be the position listings at Bridgestar. This research will help you confirm whether your executive director is in fact overpaid and under-qualified in the marketplace as well as view the market price commanded by a candidate with a higher level of skills.

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