The Role of an Interim Executive in a Nonprofit Merger
For some organizations, an executive director’s departure provides an ideal opportunity for the Board to consider a range of strategic partnerships or a merger.
I have served as an interim executive for several organizations undergoing the process of a merger. My interest and experience are in guiding organizations through transition and helping them to make the best possible choices – whether that means sustaining an organization, scaling back, or increasing services and impact through merger.
The ultimate decision to merge with another nonprofit—even one with a similar and/or overlapping mission—is a momentous board decision. If done well, it may result in organizational efficiencies, rejuvenation, and a path to long-term sustainability. On the other hand, a poor decision could damage the effectiveness—and even existence—of the entities considering merger.
According to the Stanford Social Innovation Review, finding roles for senior staff can be among the most difficult and emotional part of merger negotiations. However, an interim executive director, who is able to bring a more objective perspective to negotiations – and who has no expectations of continuing a position after the merger, is an effective way to avoid this hurdle and help guide the Board.
An important key to the successful mergers I’ve witnessed was that leaders from both boards saw the potential benefits of a merger, were committed to the process, and maintained excellent communication. Despite setbacks and fundamental disagreements between the parties, these leaders were dedicated to following a prescribed process, and they maintained a focus on the goal throughout the process.
Merging organizations also means merging Boards – each with different culture, procedures and practices. An interim executive’s experience working with diverse organizations and Boards in the nonprofit sector can inform and guide the development of a single unified Board to best meet the mission and scope of the new organization.
Mergers are complex and require sensitive navigation through a very detailed process, that has the potential for great impact on many lives. Its best approached with a team who can work together to support the board. I strongly recommend using an outside neutral facilitator to manage the process and securing competent and experienced (in nonprofit) legal counsel. As a seasoned interim executive, I have enjoyed playing a vital role to orchestrate this process, bringing an objective perspective, guiding the staff and board, and managing communication with key constituents.
A merger is a lot of work, beyond the day-to-day operations and typical struggles. But in the end, if we keep our sights on the mission, and we’re able to realize efficiencies, better address needs, and better serve our community, it makes the process all worthwhile.