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| Path: Main Street : NewsWeek : Archive : Ethics Q & A Articles : Article |
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Ethics Q & A
April 24 , 2006
By Jane Garthson, Mills Garthson & Associates
The dilemma:
Is it ethical for the chair of the board to become the executive director?Jane's Response:
If the executive director position is vacant or about to be vacant, the board of directors must try to find the best new executive director they can. They need to step back and evaluate the leadership skills that will be needed for the organization's future, given the strategic plan and expected changes in the community being served. If there is no current strategic plan, and the organization has not prepared a succession plan, this may take quite some time. There should be no rush to hire. The strategic thinking should include whether this is the right time to consider merging with another organization, relocating the head office if there is a large geographic scope, and how the organization will offer a sufficiently competitive salary and benefits to compete in a tight market.
Because most Canadian nonprofits have only a small staff, succession planning rarely involves sufficient internal candidates to justify limiting the search to those already in the organization. If the organization cannot afford an executive search firm, the search committee should be prepared for a great deal of work. Even with a search firm, hiring a new executive director is a major task for any board, and will consume quite a bit of time and effort.
In other words, it would very rarely be appropriate to jump for joy at the chair's offer and end the search almost before it has begun. The chair, or any other board member, is welcome to resign from the board and take their chances in a recruitment competition. I do not believe it is ethical for a board member to apply, or ask privately for consideration, prior to resigning. That puts too much pressure on the other board members, and they know well how uncomfortable it could be to have an unsuccessful candidate as a board colleague. If unsuccessful in the ED competition, the person can run again at the next AGM. The need to resign before applying is even more important when chairs want a lower level position, given the pressure their application can put on the executive director.
If the chair is an exceptional person with just the right skill set, and there is little chance any other candidate could be better, there is no point widening the search. The search committee still needs to take some time, and preferably get some external advice, to ensure they are being objective and prudent in such a choice. If the chair needs a job badly, that is all the more reason to think the decision through very carefully. In all cases, there should not be any involvement of the chair in the decision.
If the position is going to be vacant for a while, and the chair or another board member has the right skills to lead during a transition, a temporary appointment of a board member can be less disruptive than bringing in an outsider or giving an acting appointment to a staff member who plans to apply for the permanent opening. Executive transition specialists recommend against appointing a potential candidate as the interim executive as it raises expectations and deters other candidates.
I think many in the sector have seen successful transitions from chair to executive director. Handled carefully, through a search process that confirms the chair as the best candidate after he or she have resigned from the board, there is no ethical problem. The individual may need some executive coaching to help make the adjustment, especially during board meetings! The new chair has to be respected no matter how much more experience that new ED has in the chair position.
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Because nonprofit organizations are formed to do good does not mean they always are good in their own practices. Send us your ethical questions dealing with volunteers, staff, clients, donors, funders, sponsors, and more. Please identify yourself and your organization so we know the questions come from within the sector. No identifying information will appear in this column.
To submit a dilemma for a future column, or to comment on a previous one, please contact help@charityvillage.com. For paid professional advice about an urgent or complex situation, contact Jane directly.
Disclaimer: Advice and recommendations are based on limited information provided and should be used as a guideline only. Neither the author nor CharityVillage.com make any warranty, express or implied, or assume any legal liability for accuracy, completeness, or usefulness of any information provided in whole or in part within this article.
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