Succession Planning Study

There seems to be an avalanche of long-time leaders announce their retirements.  Anticipating this trend, in 2021 Appalachian Community Capital (ACC) commissioned Stepping Stone Partners to interview seven former CDFI CEOs to gain their perspective on the succession experience. The findings were eye-opening to say the least!
Here are four key recommendations that resulted from the study:

1. Retirement compensation guidelines are needed for CEO departures as well as protocols for ongoing interaction between the former CEO and the organization.
2. Nonprofit Search Committee experience by at least one board member characterized the difference between successful and less successful transitions. It also enhances the Board’s succession planning as a strategic and sustainability exercise, even if an imminent leadership change is not expected.
3. Former CEOs represent an underutilized asset to the current leadership ranks at CDFIs, beyond their own organization. At a time of unprecedented growth in the CDFI field, it is easy to imagine the value that an experienced cadre of retired CDFI CEOs might bring to today’s leaders.
4. Recently retired CEOs urge current CEOs to prepare for the impact of this transition on themselves personally. While all interviewed thought they were prepared, the reality of stepping away from an organization and role that has defined one for a long-time, is very difficult.