{"id":625,"date":"2018-03-21T13:16:29","date_gmt":"2018-03-21T13:16:29","guid":{"rendered":"https:\/\/idronline.org\/2020\/12\/23\/founder-transition-requires-preparation\/"},"modified":"2025-11-25T14:08:54","modified_gmt":"2025-11-25T08:38:54","slug":"founder-transition-requires-preparation","status":"publish","type":"post","link":"https:\/\/idronline.org\/kn-in\/founder-transition-requires-preparation\/","title":{"rendered":"Founder transition requires preparation"},"content":{"rendered":"

Clean breaks are not always the best way to replace a nonprofit’s founder, yet that seems to be the customary advice shared with organisations. In contrast, transitions that extend a founder’s role are surprisingly common, and often yield the best results.<\/p>

A recent Bridgespan study<\/a> in the US found that transitions pairing a founder with a successor selected from within the organisation proved to be the most successful of all transition models. Success was measured by revenue growth through the transition, retention of the successor, and self-reported performance.<\/p>

The study also found that if the board, in particular the board chair, was actively engaged in and driving the transition process, there was a much higher likelihood of founder succession, than if the board was only peripherally involved. Regardless of whether the successor was from within the organisation, founder transitions required preparation from all involved parties.<\/p>

\"What<\/a><\/div>

The study identified four conditions that need to be met for an extended founder role to succeed:<\/p>

    \n
  1. The founder has the capability and desire to stay engaged.<\/li>\n
  2. The board perceives clear value from the founder staying involved.<\/li>\n
  3. The founder is willing to play a different role and genuinely wants the successor to succeed.<\/li>\n
  4. The successor is willing to work with the founder.<\/li>\n<\/ol>

    All of the above require both founder as well as the successor to sublimate their egos. If these conditions are not met, the organisation should pursue a “clean break” approach, where a founder does not have a role once the successor starts.<\/p>

    Once these conditions are met, we have five recommendations that address the practical aspects of managing an ongoing role for a founder. While our data shows that transitions with an internal successor and a role for the founder tend to be the most successful, these practices apply to any organisation that seeks to extend the founder’s stay.<\/p>

      \n
    1. Limit the founder’s new role to specific areas of high interest and capability: <\/strong>Some roles are well-focused assignments with timetables and clear deliverables, such as starting a new programme; others tap the founder’s capabilities, such as fundraising.<\/li>\n
    2. Recognise that both the founder and successor will benefit from regular coaching: <\/strong>This helps navigate the operational and emotional aspects of transition. Research has shown that a coach can increase the chances of transition success.<\/li>\n
    3. Anticipate conflict and agree to a process to mitigate it: <\/strong>Leadership transitions are inherently complex, even more so when a nonprofit’s founder stays on. The board chair needs to work with the founder and successor to establish a conflict resolution process.<\/li>\n
    4. Transition board, funder, and staff loyalty in logical order: <\/strong>Founders often develop intense loyalty among staff and board members, and funders are likely to identify more closely with the founder than the organisation. It is critical to shepherd these loyalties to the new leadership.<\/li>\n
    5. Create initial separation to allow the successor to settle in: <\/strong>This is particularly helpful if the founder’s new role is substantial or long-term. Successors need time to establish themselves, a period that may include staff restructuring or strategy changes. It is important for the founder to maintain a low profile during the early months of transition to avoid confusion about who is in charge.<\/li>\n<\/ol>

      \n

      \"founder

      Succession planning is a must-have to facilitate a smooth leadership transition<\/p><\/div>\n<\/p>

      This applies to India as well<\/h3>

      In India, the need to focus and plan for founder transition is equally important. Bridgespan’s recent research<\/a> report, ‘Building the Bench at Indian NGOs’, identified several key characteristics of leadership at nonprofits in the country:<\/p>