Stanford Social Innovation Review

Rosetta,

There is a program that is helping resolve this issue. It’s called the American Humanics program and it’s designed to help students become nonprofit leaders. I have almost completed the program and I feel ready to take on the world! If you want to find out more go to http://www.americanhumanics.org

»» Posted by: Bryan L. Freeman on December 22, 2007 07:13 AM

Rosetta, excellent entry. I didn’t know the magnitude of the succession problem. 1st. comment thanks for pointing me to the humanics site.

I am not sure I fully agree with “The problem is that current leaders are not doing enough to cultivate their younger staff to take over their jobs when they retire in the coming years.” I think it is the responsibility of the younger staff to cultivate themselves for the jobs they must do. They should be looking less at jobs, current functions, current power structures and more at specific problems and how they can make a difference. When you think that way you realize you don’t need “permission” or encouragement to “lead” but that leading is the only way to do what you must do.

“What Have I done for myself and my society lately” should replace “What Have You Done for Me Lately”. This is the entrepreneurial way of looking at things. We live in a different world than that of the baby boomers. True, it would be a waste to throw away all the relationships, know-how and structures of current non-profits. However, the problem and not the institution should be at the forefront. My action plan would include:

--Inspiration: Well-written case studies and stories about people and group of people who organize themselves to solve a problem and how they can make a difference. More blog stories like yours pointing out the magnitude of the problem, the present state, and the consequences of not taking action.

--Tools: Create a database that makes core knowledge accessible and relevant. Create an online system of mentors/moderators who could advise people as needed.

--Collaboration: Bring people together. Focus on solving problems, not maintaining a status quo for its own sake.

»» Posted by: Juan Carlos Paredes Trujillo on December 27, 2007 10:20 AM

Rosetta--- interesting food for thought.  Where did you get your statistics?  A bit eye-opening, for sure.

»» Posted by: Audrie Schaller on January 6, 2008 09:10 PM

Hi, Rosetta.
Thank you for a wonderfully fresh take on the leadership “dilemma.” There are many talented young leaders who are able to step into positions of responsibility when they are young, and there are others who need help with their own development.

The one thing I should caution though is the propensity for existing leaders to cultivate traits that have been particularly helpful to *them*, and to nurture leaders who exhibit traits which they identify is critical to leading others.

The world has been volatile, uncertain, complex and ambiguous for some time, and the Non-Profit world has lagged in adaptations to this because it’s a conservative and risk-averse environment (because growing top-line is always tough; people focus efforts on minimizing costs and risks).  This is fine!  All it implies is that existing leader-mentors and leader-teachers need to enable the development of leaders through the provision of financial, social, and knowledge resources and respect the intuition of a new group of people who have evolved to meet the challenges of the current environment.

»» Posted by: Jessica Margolin on January 10, 2008 01:59 PM

Given the dramatic explosion of nonprofits over the past decade, this may present an opportunity for organizations to merge based on shared interests--or fold.  The competition for leadership is reflected in the competition for scarce resources--on all levels.

»» Posted by: Donna Blakemore on January 10, 2008 02:06 PM

Rosetta, thank you so much for this article.  I was glad to read it, and then even happier to see the first comment about American Humanics.  I went through the AH program at Indiana University’s SPEA program, and it really prepared me to think critically about the non-profit world and the mechanics of how it runs and facilitates social change.

There is a great deal current non-profit leaders can do for the next generation, especially if current leaders are aware that the long-term viability of the organization depends on the actions they take now.  I am part of this next generation, and I volunteer for several reasons.  First, I want to make good things happen in my community and advance the causes I care about.  That reason is cross-generational.  Second, I seek mentorship and opportunities to try out leadership roles.  I want practice.  And, I am going to get involved in organizations that present these opportunities to me.  That reason is specific to my generation.  So, if current non-profit leaders give me those opportunities, I think they are more likely to attract young leaders looking for the same thing.

»» Posted by: Caitlin Skinner on January 10, 2008 02:06 PM

I saw a wonderful example of people mentoring the next generation--only the nonprofit in question was my synagogue, and the next generation was me.  They invited me in, got to know me as a person, introduced me to other people in the organization with shared interests, asked me to lead things I was comfortable leading already, and then asked me to lead new things.  In five years, I was temple president.  Now, I hope people my age (50) and older will be able to do the same for the next two generations who are in or entering the workforce.  We have a lot to learn from one another, both directions!

»» Posted by: Dennis Fischman on January 10, 2008 02:14 PM

I am sure there are many great people already working in the nonprofit sector who would be able to fill leadership roles very successfully.  But there are people, like me, outside the sector who are interested in this kind of work too - and wondering how to get in.  Someone like me, with a PhD from a leading research university and 10+ years experience working in policy making in government, should be a viable candidate for an executive position in a nonprofit, but job listings (and indeed this article) always make it sound like you have to have come into nonprofit work at the ground floor, and have extensive experience at the junior levels, to be able to present as a convincing candidate for a senior role.  One of the things that puts me off applying for senior nonprofit jobs is the constant emphasis placed on having extensive experience of fundraising.  Naturally, in my working life, I’ve not done any, and it makes me disqualify myself at the first hurdle!  I can’t imagine that I am the only person in this position.  I’d be interested to know what people think about this.

»» Posted by: Michelle Cale on January 10, 2008 02:30 PM

Rosetta,

Great work! I really appreciate your willingness to put some personality and energy into your firm exposure of the future of our sector.

I have a few additional thoughts. I believe you also attended NP2020 last summer in Grand Rapids, MI. At that conference, about 100 emerging leaders from 12 states discussed this issue and proposed answers. In addition to your fabulous suggestions, we discussed larger scale change was needed, like funder education on organizational infrastructure. Young leaders bring fresh and innovative ideas, which can play a part in changing these stereotype challenges of the nonprofit sector.

Another potential solution, which the both of us can attest to, is encouraging continued formal education related to the sector. I have a MNpS in Nonprofit Leadership and Management from Arizona State University which not only offers professional development, but also demonstrates a commitment to the nonprofit sector.

It is also important for the generations to work together on these issues. Each has had different perspectives and experiences. However, for a successful transition to occur, both parties must be involved. Generational issues in the workplace aren’t new, but recently I have heard of a book tailored to the nonprofit sector, Generations: The Challenge of a Lifetime for Your Nonprofit by Peter C. Brinckerhoff.

To end my comments on a positive note, there is such a movement towards connecting young leaders in the nonprofit sector and facilitating their growth and advancement, Young Nonprofit Professionals Network (YNPN). With over 10,000 members and chapters in over a dozen states, YNPN supports the next generation of leaders and their communities with a social and professional network.

»» Posted by: Amber Martinez on January 10, 2008 03:08 PM

Five years ago, at age 34, I moved from the private sector to take up a leadership position in the non-profit sector.  It has been a very steep (and interesting) learning curve!  I have encountered career third sector people with an attitude about cross sector movers, but I would really advocate for the non-profit sector encouraging and embracing people like myself.  I was able to bring a lot of professional skills and organisational / management experience, combined with a personal belief in social justice, compassion and common humanity, to successfully lead a non-profit organisation.  There were a lot of gaps in my knowledge (including no experience in fundraising!), but common sense and the willingness to seek out mentors and advice goes a very long way.

»» Posted by: Reach on January 10, 2008 03:25 PM

I echo the comments regarding the barrier to entry into the Non-Profit sector for Senior Business Leaders from the Private Sector.

I would like to bring 18+ years of business management experience into an existing non-profit senior role, but all those jobs require extensive non-profit experience for which I have none.

So then I decide to stay in the Private Sector and simply “advise” local groups who are doing fun things for our community (such as this 24-Hour Amazing Race in Utah that promotes local businesses and the beautiful place we live - see http://www.raceallnight.com)

Thanks for the article - good information!

»» Posted by: Matt Bowman on January 10, 2008 05:13 PM

The non profit sector is interesting! 

Any good manager will train and develop their staff and ensure good replacements for when they leave.  I think the biggest problem in the non profit sector is getting talented people in and keeping them in. 

There are many talented people like me who can’t get a job in the non profit sector… for the simple reason that we have not worked in it before.  I am a smart young person and successful in the for profit sector, but I can’t get an entry level job at any non profit.  I tried!  So what if I can earn good money in a for profit sector job, I can’t get a minimum wadge job anywhere in the non profit sector.  Why not?  I have a bachelors degree in engineering.  That isn’t good enough to get a minimum wadge position with your non profit?

Just because there are a lot of people in the non profit sector, does not mean there are the right leaders in the non profit sector.  The non profit sector needs to change, adapt, and find skilled young professionals in the for profit sector who want to transition into a job where they can make a difference.  Hey non profit hiring managers… stop being so closed minded! 

Motivation, problem solving, and leadership skills do transfer.  For profit and non profit jobs still need to be run efficiently and need to get cash coming in the door. 

But speaking of cash… when are we all going to get together and get our government to print our money again?  Get rid of the private federal reserve banking system, and you will get rid of the voluntary income tax system, and you will have ample money for every program.  We need to be looking at the root causes of the problems and solving them!  Which we are not.  We are putting band-aids on gun shots… not educating the shooters, not going to the gun manufacturing facility and stopping production. 

Stop ordering band aids.  Start solving problems to root.  Start working together in a constructive way.  Ideals are great, but the non profit sector is not acting fast enough and not bringing in new idealistic people that can help with our goals of improving society. 

Sincerely,
MG

»» Posted by: Matt on January 10, 2008 06:34 PM

Reading the postings on this blog, I am quite surprised at the comments by people from the private sector. I founded and run a fast growing international NPO, and my most recent hire was someone with 25 years of experience in finance and healthcare.  He is at the point in his life where he wants more out of life than for profit success.  He has no experience in the NPO sector, nor does he need to.  In fact, none of my employees have come to the table with NPO expertise, but all of them are outstanding, open-minded highly capable individuals.  I disagree that people are hired or not hired because they do / don’t have NPO experience.  A great manager is a great manager in the FP or NPO sector alike.  However, probably more so in the NPO sector than in the FP sector, the ones who end up getting the job are those who radiate passion, the willingness to go the extra 10 miles (as opposed to extra 1 mile), the dedication and commitment to make it happen at all cost.....  and when you apply for a job in the NPO world (any level job really), you will somehow need to be able to convey to the person reviewing your candidacy that you have “more” than what it takes.
On Rosetta’s note:  one aspect of the NPO sector that does need to be addressed at some point and sooner raher than later (and that will mitigate the HR drain away from the NPO sector) are salaries and what people perceive NPOs should / should not be paying.  The revision of the 990 form by the IRS is a stark example.  A good manager is a good manager in the FP and the NPO sector alike.  A great organization needs good managers, also in both sectors alike.  And organizations, both in the FPand NPO sector, are equally expected to deliver results and impact.  If this is true - which it is:  Why should the people who choose to work in the NPO sector be treated any differently than their counterparts in the FP sector when it comes to salaries?  Why should NPOs which do treat their managers properly be “punished” or looked upon suspiciously by the donor community?  Unless this issue is addressed properly and the public educated in something that is merely common sense, you won’t ever see a huge influx of people into the NPO sector who are ready to stay in it for more than a few years.

»» Posted by: MC MD on January 11, 2008 03:31 AM

From an earlier comment:
“One of the things that puts me off applying for senior nonprofit jobs is the constant emphasis placed on having extensive experience of fundraising.  Naturally, in my working life, I’ve not done any, and it makes me disqualify myself at the first hurdle!  I can’t imagine that I am the only person in this position.  I’d be interested to know what people think about this.”

The constant emphasis placed on fundraising isn’t going to go away any time soon.  It is not unusual for the CEO of a nonprofit to spend 50%+ of his/her time raising funds.  Fundraising experience is relatively easy to get, however, because very few nonprofits will turn you away if you say you want to volunteer with their fundraising team.  Sign up to be a class agent for your college, or serve on a gala committee. 

I have worked in nonprofits for 15+ years.  I’ve worked with some incredible people who came from the for-profit sector, bringing incredible skills and resources.  I’ve also dealt with well-meaning cross-over people who have good intentions but no clue what it really takes to run a complex nonprofit organization.  (I’m tired ot picking up their slack, in fact. I’m having one of those days ... but I digress ... )

The solution is that there will be some great people who are new to the field but make the transition easily, and there will be some people who’ve come up through the ranks and will shine when put in positions of leadership.  It isn’t one or the other. 

It does amuse me ~ whenever this topic comes up, I hear peple complain about how they tried to switch, but were only offered entry-level positions.  I have no illusions that despite my extensive professional experience and successes, and my degrees from top colleges and universities, if I left the nonprofit sector to go into investment banking, I’d be right there with the freshly-scrubbed faces of the other people new to the business. 

It is rare in ANY business to move laterally into a totally different field.  Obviously, there are exceptions - accounting staff, for example, have a much easier time switching sectors. 

AND, this rarely comes up, but remember, most job searches really do boil down to personal connections.  If you work in the for-profit world and want to make the switch, consider volunteering.  Serve on a board, or board committee.  Be able to point to concrete experience and connection to the mission ... and to the people you already know who can say good things about your work as a volunteer.

»» Posted by: Andrea on January 11, 2008 10:04 AM

This meme has swept non-profit-land with no meaningful facts or real logic supporting it. I’m a career non-profit manager whose current professional role has included reading and thinking about the recent reports that inspire the claim of a looming non-profit leadership crisis. Perhaps the simplest way to sum up the results of that examination is to link to my own (fairly bitchy I must admit) blog post about it:
http://dot-org.blogspot.com/2007/05/non-profit-leadership-deficit-are-we.html

»» Posted by: Paul Botts on January 11, 2008 11:20 AM

Rosetta -
Nice commentary. Best line with which I would agree with was, “Younger workers feel the challenges every day concerning long hours and low pay, the lack of adequate infrastructure, inefficient technology, and outdated modes of implementing programs that hinder us from doing our jobs as well as we could.”

I spent 8 years at a non-profit and left as VP and agree that the organization did little to groom the junior staff/younger generations and the micro-managing board was a significant factor in this. Egos over Mission.

I learned many lessons that I thought would only be learned in the corporate world. All should read the Billion Dollar Opportunity for Non-Profits by Bill Bradley. The lack of sustainable leadership, ineffficiences, and reinvention of the wheel on various programs are a few of the downfalls for non-profits.

Keep up the good fght! Non-profits play a significant role in the moral fiber of the US.

»» Posted by: Chris on January 12, 2008 12:15 AM