Giving Compass' Take:

• Aarti Madhusudan at India Development Review (IDR) discusses how a new CEO can address issues when he or she inherits board members at a nonprofit organization. 

• What is the role of board members to help usher in new CEOs?  

• Read more in the Giving Compass Boards and Leadership magazine. 

There is an increasing trend among nonprofits in India to hire professional CEOs to run the organisation. Often this is because the founder is no longer able to, in some instances does not want to, and in rare cases truly believes that it’s time to move on from being at the helm of things.

Typically, along with the organisation, its staff, and programmes, the incoming leader also inherits its board. A board that was constituted by the founder to suit their needs at the time.

And while the newly appointed CEO usually enjoys the freedom to run the organisation in the manner that they think is best, it’s rare for them to enjoy the same liberty to make changes at the board level, certainly not for the first few years. What are some of the common challenges that such a situation brings with itself?

When a new CEO takes over, they inherit, along with everything else, a board that is used to functioning and responding in a particular manner to the founder/predecessor. The presence of the new CEO impacts everything within the board—chemistry with the CEO, their relationships with each other, and which asks are prioritised over others.

When a new CEO takes over, they inherit, along with everything else, a board that is used to functioning and responding in a particular manner to the founder/predecessor. The presence of the new CEO impacts everything within the board—chemistry with the CEO, their relationships with each other, and which asks are prioritised over others.

What can a CEO do in their first few months to mitigate these challenges?

  • Understand the board better
  • Understand the board’s work culture
  • Give it time, and be honest

Read the full article about managing an inherited board by Aarti Madhusudan at India Development Review (IDR)