BNP Philanthropic Performance unveils the results of its first national study on Succession Planning in the philanthropic sector, conducted with the participation of 188 organizations across Canada. The study highlights some alarming data. Organizations are often under-prepared to ensure continuity of leadership, particularly in the key positions of Executive Director and Board Chair.
As a reminder, Succession Planning is a structured process aimed at ensuring the continuity of leadership within an organization, whether for Executive Director (ED) or Chair of the Board of Directors.
Download the report on succession planning in the Canadian philanthropic sector and view the presentation of the results.
Real Risks for NPOs
The results reveal that 39% of EDs and 74% of Board Chairs plan to leave their positions within the next three years. Yet 65% of organizations have no plan for unexpected departures, and 83% have no strategy for planned departures. This lack of preparedness represents a major risk to the organization’s stability and mission, threatening both revenues and team engagement.
The Consequences of Inadequate Planning
The absence of a succession strategy is particularly worrying when we consider the anticipated impact of departures. 94% of respondents fear a drop in revenues in the event of the departure of senior management, and 31% foresee major organizational disruption. In the case of Board Chairs, 73% felt that their departure could also harm the organization’s finances, underlining the urgent need to strengthen succession practices.
Key Stages in Securing the Future
The study identifies four crucial steps for successful Succession Planning:
- Define the organization’s needs:
- Establish a clear mandate from the Board of Directors.
- Manage risks, potentially difficult to initiate.
- Identify internal and external talent:
- Explore internal and external candidate pools: 51% of organizations have no internal candidate for ED, while 83% of boards identify potential successors.
- Assess and develop candidates’ skills:
- Prepare candidates: only 11% of ED candidates and 23% of Board Chair candidates consider themselves well prepared.
- Communicate succession expectations and processes.
- Measure the progress of the succession in place:
- Discuss Succession Planning with the Board of Directors: no discussion in 49% of cases for EDs and 37% for Board Chairs.
These steps are essential to prepare potential leaders for a smooth transition.
Towards Proactive Action
BNP Philanthropic Performance encourages NPOs to adopt a proactive approach by raising awareness among their teams and setting up specific training programs for identified candidates. Continuity of leadership is a crucial factor in guaranteeing the continuity of each organization’s mission and actions.
Methodology of the Study
- Canada’s first study of the philanthropic sector, involving 188 respondents.
- The majority of respondents were EDs and Board Chairs.
- Geographical distribution of respondents: British Columbia, Alberta, Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland and Labrador.
- Sectors of activity mainly focussed on student retention, food security, the arts, health, etc.
- The scope of the organizations is mostly local, followed by regional.
