Published By:


When a good CEO is really hard to find

By Michael Stern 6th June 2007


Choosing the right person to head up a company or business unit is never easy. Does this candidate have the right combination of experience and vision? Can that candidate fit into the corporate culture and yet lead it in new directions?

Getting it right requires planning, experience, hard work and patience. But it can get even harder.

Recently, I was asked why many non-profit organizations have so much trouble finding great leaders. As we talked, I realized that finding executives for professional associations, or social agencies can add several layers of complexity to a process that most people already find difficult enough.

These days, business people are becoming increasingly active in the not-for-profit sector. If you are ever asked to help an industry association or public-interest group select a leader - here are some points to help you understand some of the ways not-for-profit organizations can differ from companies in the private sector.

• Businesses have a single overriding goal: to make money. Yes, the better ones are also responsible corporate citizens, and treat their stakeholders fairly and with respect. However, even the most stakeholder-conscious corporation won't be around long if it's not profitable.



• As strategic as they try to be, non-profits usually have multiple objectives. Their mission or social purposes come first, with financial performance generally considered a means to an end.

Financial discipline is rarely the prime concern of not-for-profits. Their passion is for their constituents or their causes. As a business-oriented advisor, it's your responsibility to remind them that financial savvy isn't just a "nice to have," but an essential candidate trait that ensures their organization can continue to flourish and meet its obligations.

• To complicate your life, leaders who can strike the right balance between their organization's financial and non-financial objectives of are much harder to find than executives trained to focus on one or the other.




• Some social organizations are hampered by a lack of clear objectives. At one association, for instance, the directors I talked to all agreed on the need for a president who could lead their organization to the "next level." But there was no agreement on what that meant.
  
  It was only after playing devil's advocate and asking many pointed questions that I got them to express their goals in quantitative terms that led to usable search and selection criteria.



• Some professional and industry associations confuse their mission with their needs.
  
  I once worked with a group of lawyers who were convinced only a trained lawyer could lead their organization. They wanted someone to bring new energy and direction, and make the group a national leader. Why, I asked, did they presume a lawyer was the best person to do that?
  
  Eventually they admitted that maybe the best candidate would not be a lawyer. Although it was clear that after all was said and done, they were still hoping I would find someone from "the brotherhood."



• Associations are usually more democratic than the average company. They are more tolerant of debate and dissenting voices.
  
  Any consultant who is used to business clients using their personal clout to end debates has to be patient and diplomatic when dealing with non-profits. Issues are more complex, passions are heightened, consensus takes longer. You have to help your clients slice through uncertainty and make decisions while honoring their need for tolerance and inclusion.



• Money can be limited in the non-profit sector. Running a successful association or social organization may require a broader range of skills and judgment than most businesses, but the job usually pays less.
  
  Luckily, many organizations have opened their wallets to ensure they're paying a competitive wage. Compensation packages of $150,000 or more are no longer unknown - and a select number of large organizations are paying double that for top talent.

In the end, your most crucial job may be to help woo candidates by pitching this special opportunity to make a difference in their community, industry or profession. Play to their passions - not the size of the paycheque.

Non-profits offer great challenges and personal rewards to the right people. But it may take your best leadership skills to find them.