Why an Interim Executive Director May be Right for Your Organization
By Ben Delaney
© 2023 ImmersivEdge Advisors. All rights reserved.
Nonprofit organizations often face various challenges, ranging from financial instability, to leadership transitions, to changes in the organization's strategic direction. In such situations, hiring an Interim Executive Director (IED) can be an effective solution to maintain stability and continue moving forward.
An IED is an experienced leader who steps in temporarily to provide leadership and management while the organization searches for a permanent Executive Director. An IED’s assignment typically lasts between three and twelve months, depending on the needs of the organization.
There are several reasons why nonprofit organizations choose to use an IED. First, an IED can provide stability and continuity during times of transition. A leadership change can be unsettling for staff, board members, donors, and other stakeholders, and an IED can help maintain organizational momentum and morale. Additionally, an IED can provide objective guidance and expertise in a situation where an organization may be struggling. They can bring a fresh perspective, evaluate the organization's strengths and weaknesses, and identify areas for improvement.
Second, an IED can provide a seamless transition between executive directors. It can take several months to find a permanent Executive Director, and an IED can ensure that the organization's daily operations continue without interruption. They can also help with the search process by providing guidance on what the organization needs in a permanent Executive Director, helping to update or develop the ED’s job description, reviewing resumes, and participating in interviews.
Third, an IED can help manage organizational change. For example, if an organization is shifting its strategic direction or restructuring, an IED can provide guidance on how to make these changes effectively. They can also help with succession planning, ensuring that the organization has a solid plan in place for future leadership transitions.
Fourth, a professional IED can help assure funders, staff, the board and other stakeholders that the organization is in good hands and is being managed well during the stressful times of a transition. When needed, an IED can face unpleasant realities, manage staff realignments, and provide a clean slate for the permanent ED, easing that person’s onboarding.
Finally, hiring an IED can be a cost-effective solution. In some cases, it may not be financially feasible for an organization to hire a permanent Executive Director immediately. An IED can provide leadership and management on a temporary basis at a lower cost.
In conclusion, nonprofit organizations use IEDs for several reasons, including providing stability during times of transition, ensuring a seamless transition between executive directors, managing organizational change, and providing a cost-effective solution. By bringing in an experienced leader to guide the organization through a challenging period, nonprofits can ensure they continue to serve their communities and achieve their mission.
Sources:
"Why hire an Interim Executive Director?" Third Sector Company, https://www.youtube.com/watch?v=qJA0TpbBDz0.