How Can Foundations Develop the Next Generation of Leaders?

What has developing foundation leaders looked like during your career?

During the first 20 years of my career, I did not see many foundations being very intentional about developing future foundation leaders. A lot of the professionals that were in the top roles served for lengthy periods of time and these were much simpler organizations. My observation is that in the last decade, the frequency of change and shorter duration of service of leaders in these foundations is accelerating. This has impacted the total capacity and consistency of success in many foundations.

What can foundations do to develop the next generation of leaders?

Foundations must be more intentional about their commitment to developing the future leadership for these enterprises to meet the needs, challenges, and growing mission demands in the decades ahead. Today’s foundation leaders need broader knowledge capability and leadership acumen in multiple dimensions of the organization. You can’t just be a good fundraiser and do this job anymore. You have to know how high-performing foundations work: using advanced technology, building resilient budget models, nurturing strong organizational cultures, evaluating and managing risk, perpetuating engaged and aligned boards, and consistently meeting and exceeding key financial targets for fundraising, endowment growth, and the overall fiscal health of the foundation.

The total realm of responsibility and demand expectations of my role have changed dramatically in the past 10 years as our foundation and mission have grown. Remember that you are preparing leaders for where you are going, not where you are. To prepare the next generation of foundation leaders, we need to be clear about the skills and competencies they must have to be successful and ask ourselves: “What are we proactively doing to develop those skills and capabilities in the next two layers down in our organization so when we have an abrupt leadership departure or planned succession, we have the next leaders who are ready?”

What steps can a foundation take in succession planning to develop new leaders?

Succession planning requires a couple of things; first, a written plan of succession for your top two layers of leadership, minimum. This should clearly outline what you do in the event of leadership loss immediately, as an interim solution, and permanent solution for the attrition. Details should include sequential steps for communication, decision authority, and role clarity for next steps as the succession planning activity ensues. Additionally, job descriptions for each of these roles should be updated annually to reflect the current state. Second, we need a personalized development and growth plan for each of these individuals that is integrated into our performance management system. These high potential leaders must be coached, mentored, and, most importantly, assigned signature projects and initiatives they can own and drive forward for the organization for them to display they can perform at a higher level. Last, succession planning progress needs to be documented and socialized with greater frequency within the organization, so that when you need that plan, it is up to date. When succession occurs, an orderly, predictable, and well understood process will naturally unfold. I believe it is essential that the CEO and the board co-own this goal and are held accountable to working on this with enough frequency and detailed discussion that gives everyone confidence and clarity about what we are going to do when change is required.

–Interview by Elena Loveland, Trusteeship editor-in-chief