From our perspective, it is always an incredibly rewarding experience to work with the Board of a Chairty, Foundation, Association, Society or other Not-for-Profit (NFP) organization in their search for a new Chief Executive Officer (CEO) or Executive Director (ED). From the Board’s perspective, it is among the most consequential responsibilities you will likely be engaged in as a Board member of a Not-for-Profit organization. A successful appointment of a new ED can usher in a new era of impact, stability, and growth for an organization. However, failing to prepare for the hiring process can cause significant strain on the Board and can impact every aspect of the search process and even the organization.
Boards vary in terms of their level of experience, understanding and governance. HumanEdge has conducted hundreds of executive searches with a wide variety of NFP Boards to successfully secure their next leader. No two NFPs or searches are the same, however there are some common actions Boards can take to significantly improve the outcome. Whether the Board elects to perform the executive search for their next CEO or Executive Director internally or partner with an external executive search firm, HumanEdge would like to share these seven (7) critical actions every NFP Board should prepare for to help ensure a successful executive search process.
1. Establish consistency in the needs of the organization
Why It Matters:
Before seeking a new leader, the Board must be consistent and united in understanding the organization’s current context and future objectives. Quite simply this will be what the Board will be interviewing, assessing and measuring their next leader on.
Sometimes an organization’s Strategic Plan can identify these needs. However, there are likely other internal issues to assess also. In a HumanEdge executive search we often will take the Board through a Leadership Needs Assessment and or Priority Setting exercise.
Key Steps:
- Conduct a review: Evaluate the current state of the organization and identify upcoming challenges and opportunities.
- Engage feedback: Solicit input from staff, funders, beneficiaries, and community partners to understand the evolving needs of the organization and in the next Leader.
- Identify leadership competencies: Translate the feedback into elements of a position profile in terms of desirable or beneficial leadership traits, experiences, and competencies in the next CEO to address the needs.
2. Review and put governance into place
Why It Matters:
NFP organizations come in many shapes, sizes and degrees of development and maturity as it relates to governance. Ensuring the establishment of some decision-making structure will go a long way to experiencing a smooth and successful search process.
In conducting CEO or ED searches for NFP organizations, HumanEdge has successfully worked with the entire Board of Directors and subcommittees of the Board (e.g. Hiring Committee). Regardless, roles must be clear so the Board or Committee can operate effectively throughout the search process.
Key Steps:
- Board vs. Committee: Confirm the direction under the organization’s Bylaws or Board policies with respect to the process or governance associated with conducting an executive search for and hiring a new CEO or ED for the organization.
- Confirm roles: Ensure everyone understands their role as a Board member or Hiring Committee and how decisions will be made through the entire executive recruitment process. If it does not exist, develop Terms of Reference.
3. Confirm the compensation package parameters
Why It Matters:
Whether the Board uses external executive search services or performs the search internally, it is essential to understand the compensation package parameters for the CEO / ED position.
Knowing the maximum or range of compensation, any bonus, and some of the key benefits will greatly help in the selection of potential candidates, and eventually who will be considered for the position. Also, consider that current market conditions may have changed since the last CEO or ED was hired and you may have to conduct a compensation review.
A key value in HumanEdge’s executive search process is our ability to draw from our considerable market experience and advise the Board on Executive Director salary ranges and benefits within their market. We can also conduct compensation reviews.
Key Components:
- Confirm compensation and benefit limitations: Understand and compare existing compensation policy or structure. Analyze the current market information, and agree upon a range or maximum base salary, any bonus considerations, benefit offerings.
- Flexibility considerations: The Board might want to agree to some flexibility beyond the base compensation limitations which may be warranted given a candidate possessing specific competencies. For example, A CEO / ED candidate is very strong, meets all expectations and qualifications but given their years of experience they would like 6 weeks’ vacation vs the organization’s maximum policy of 5 weeks. Does the Board still consider the candidate and be willing to offer 6 weeks if everything else goes well or stick with their policy and risk losing maybe the strongest candidate?
4. Develop a comprehensive CEO / ED profile
Why It Matters:
A well-defined profile is foundational to attracting the right qualified candidates and evaluating their fit. It goes beyond a job description to capture the essence of the leadership opportunity, the needs of the organization and expectations.
As an integral part of every executive search, HumanEdge works in concert with the Board to develop a position profile that accurately translates the Board’s and the organization’s needs into the skills, experiences, competencies and attributes required of a candidate.
The position profile essentially becomes the basis for the sourcing, screening, interviewing and selection processes of an executive search.
Key Content of a Position Profile:
- Description, Mission and Vision: Emphasize the organization, its purpose and values.
- Strategic priorities: Articulate short and medium-term goals.
- Key responsibilities: Define management scope for the position include the direct reports, and decision-making authority.
- Qualifications and attributes: Identify the education, training, certifications, work experience, leadership experience, management experience, leadership style…and other competencies required or desired of a candidate for the position.
- Compensation, benefits and compliances: Understand what the total rewards package will be, identify any limitations or elements of flexibility, and what checks will be involved if successful (e.g. Criminal Records).
5. Plan for interim leadership and organizational stability
Why It Matters:
Leadership transitions can destabilize operations, diminish morale, or create reputational risk if not managed with care. Where necessary and possible the Board should identify interim leadership to help ensure operational continuity and support staff. The interim should maintain reporting and communications and avoid making any sweeping organizational changes unless necessary and directed by the Board.
HumanEdge often provides interim operational leadership services over the executive search process.
Key Actions:
- Appoint an interim leader: Decide whether to elevate a senior internal leader temporarily or bring in an external interim executive.
- Communicate and ensure transparency: Keep internal (staff) and external stakeholders informed about the transition timeline, interim leadership, and search process.
- Maintain program and service momentum: Empower senior staff to continue delivering core services.
Risk Mitigation:
Avoid rushing the search process due to leadership vacuum pressures; invest in interim stability to support a thorough and effective hiring process.
6. Ensure a transparent and inclusive search process
Why It Matters:
Even before the Board decides to retain an executive search firm, the Board needs to agree on what a credible and equitable search process should look like. Transparency will increase staff confidence, stakeholder trust and reinforces the organization’s values.
Every search process will require certain levels of confidentiality, but adequate transparency can still be attained through clear communication and maintaining detailed records.
Key Elements:
- Identify risks or requirements for the search process: Include obstacles known or potential.
- Ensure inclusivity: Be intentionally open and inclusive throughout the search process.
- If using external support: Work with the executive search firm to understand and define the best search process.
- If using an internal structure: Ensure the Committee understands its role and has some form of Terms of Reference approved by the Board.
7. Have a thoughtful onboarding and transition plan
Why It Matters:
Onboarding is not an afterthought—it’s a strategic imperative. A strong start sets the tone for performance, morale, and greatly enhances retention.
HumanEdge’s executive search process includes onboarding and transitional support by a professional executive coach for the hired candidate. This has proven to be an effective transition and retention service.
Key Elements:
- First 90 days roadmap: Create a plan for key meetings, relationship-building, and knowledge transfer between the Board, senior staff, and the newly hired CEO/ED.
- Performance expectations: Establish short-term and mid-term KPIs and define success metrics.
- Board engagement: Assign a board liaison or small support team to provide continuity, context, and feedback.
Cultural Integration:
Help the new CEO/ED understand the organization’s informal norms, decision-making style, and stakeholder dynamics.
Conclusion
For Not-for-Profit Boards needing to secure their organization’s next Chief Executive Officer or Executive Director, the task is much more than finding a new face at the helm—it is about shaping the next chapter of an organization’s journey. By approaching the executive search with foresight, integrity, and diligence, NFP Boards not only protect their organization’s brand, mission, and vision, but also positions it to thrive under new leadership.
Reference code, HEG2025 to receive a 5% discount on any Executive Director, Chief Executive Officer, or any other senior level position search / recruitment with your Charity, Foundation, Association, Society, or any other Not-for-Profit organization. Valid for 1 search only per organization. Offer expires September 1, 2025.
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