12/23/2024

Inside a CEO Succession Plan

A nonprofit financial pro shares the steps for planning for an exec’s sudden departure

Uncertainty is draining on an organization, never more so than when the uncertainty is around the chief executive. A leader’s abrupt departure can throw a wrench in an association’s best-laid plans, but most organizations are ill-prepared for it: According to one study, less than half of nonprofits have a written succession plan. 

It may be that associations are loath to draw up such a plan because it requires squarely facing uncertainty, but it can also be due to a lack of understanding about what such a plan might involve. A. Michael Gellman, CPA, CGMA, head of Fiscal Strategies 4 Nonprofits, says the planning for a CEO’s sudden departure should be just as urgent as the plan around a serious IT outage or social-media crisis.

"Just like having operating reserves, it's good to have a set of procedures in place for A, B, C or D if the chief staff position turns over quickly," he said.

Please select this link to read the complete article from Associations Now.