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THE AUTHORS

FRANCES KUNREUTHER is the director and founder of the Building Movement Project, which works to strengthen the role of U.S. nonprofit organizations as sites for social change and focuses in part on generational change in leadership.

HELEN KIM is a consultant with experience in community organizing, fundraising, and organizational development and specializes in strategic planning, board development, executive coaching, and leadership transition.

ROBBY RODRIGUEZ is the executive director of SouthWest Organizing Project (SWOP), a statewide multi-racial, multi-issue, community-based membership organization in New Mexico.

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<b>Working Across Generations</b> <p>Leadership change is happening today in organizations all across the United States. In both business and the nonprofit social sector, as well as in government and foundations, long-time leaders are talking about what they will do next and wondering who will take their place while new generations prepare for the future. It is a time of great hope and possibility, and a time of challenge and loss. Working Across Generations offers those working in and affiliated with nonprofit groups the opportunity to think ahead and to proceed thoughtfully during this turbulent period of change. It presents a comprehensive look at the leadership transition and generational shift that?the nonprofit sector faces and gives readers practical advice on how they can prepare for this inevitable shift in healthy ways.</p> <p>The authors provide a range of ideas on how to approach generational shifts in leadership so that the contributions of long-time leaders are valued, new and younger leaders' talent is recognized, and groups are better prepared to?work across generational divides. Giving context to these differences, they explore the current assumptions about the upcoming transition between generations in the social sector; introduce new ideas or frames for thinking about generational leadership change; and examine how this change poses individual, organizational, and systemic challenges for those in the social sector. In addition, they provide numerous examples and practical exercises to show how to address these issues. The book concludes with critical advice on how to communicate across generations and key recommendations for future research and action.</p> <p><b>WORKING ACROSS GENERATIONS</b> <p>Leadership change is happening today in organizations all across the United States. In both business and the nonprofit social sector, as well as in government and foundations, long-time leaders are talking about what they will do next and wondering who will take their place while new generations prepare for the future. It is a time of great hope and possibility, and a time of challenge and loss. <i>Working Across Generations</i> offers those working in and affiliated with nonprofit groups the opportunity to think ahead and to proceed thoughtfully during this turbulent period of change. It presents a comprehensive look at the leadership transition and generational shift that the nonprofit sector faces and gives readers practical advice on how they can prepare for this inevitable shift in healthy ways. <p>The authors provide a range of ideas on how to approach generational shifts in leadership so that the contributions of long-time leaders are valued, new and younger leaders' talent is recognized, and groups are better prepared to work across generational divides. Giving context to these differences, they explore the current assumptions about the upcoming transition between generations in the social sector; introduce new ideas or frames for thinking about generational leadership change; and examine how this change poses individual, organizational, and systemic challenges for those in the social sector. In addition, they provide numerous examples and practical exercises to show how to address these issues. The book concludes with critical advice on how to communicate across generations and key recommendations for future research and action.

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Working Across Generations

Leadership change is happening today in organizations all across the United States. In both business and the nonprofit social sector, as well as in government and foundations, long-time leaders are talking about what they will do next and wondering who will take their place while new generations prepare for the future. It is a time of great hope and possibility, and a time of challenge and loss. Working Across Generations offers those working in and affiliated with nonprofit groups the opportunity to think ahead and to proceed thoughtfully during this turbulent period of change. It presents a comprehensive look at the leadership transition and generational shift that?the nonprofit sector faces and gives readers practical advice on how they can prepare for this inevitable shift in healthy ways.

The authors provide a range of ideas on how to approach generational shifts in leadership so that the contributions of long-time leaders are valued, new and younger leaders' talent is recognized, and groups are better prepared to?work across generational divides. Giving context to these differences, they explore the current assumptions about the upcoming transition between generations in the social sector; introduce new ideas or frames for thinking about generational leadership change; and examine how this change poses individual, organizational, and systemic challenges for those in the social sector. In addition, they provide numerous examples and practical exercises to show how to address these issues. The book concludes with critical advice on how to communicate across generations and key recommendations for future research and action.

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Working Across Generations

John Wiley & Sons

Chapter One

There are some people who are lifers at the organization, and some who come and go within a couple of years. There's the old generation that's been there since the organization was founded, and there's the new generation that comes in, stays a couple of years and then leaves. Personally, I'm questioning how much longer I'm going to be involved-not because of my commitment to the community, but is there really an opportunity for me to make change there if the older generation isn't willing to give up some of that power; give us a real voice? Generation Xer

Most of the talk about generation change in nonprofit leadership refers to the exodus of aging baby boomers whose anticipated departure has created enormous anxiety in the sector. The boomers are entering their sixties, an age that previous generations saw as a traditional time of retirement. That means the organizations this generation founded and built will need to find new executives to take their place.

But talk with a boomer, and the first thing he or she is likely to say is, "I'm not going anywhere!" In our workshops and discussion groups, most boomers were more worried about becoming obsolete than finding a suitable replacement. They were clear that they still had the energy, interest, and power to stay in their positions. And they certainly had no intention of leaving until they decided it was the right time to go. So what is happening? Are boomers ready to leave their jobs behind to take a much-needed rest as they enter their twilight years? Or is this large and energetic cohort gearing up for two more decades at the helm of nonprofit and social change work?

What Is the Crisis?

In 2001, a national study of nonprofit executive directors reported shocking results. Published by the California-based management support organization CompassPoint, Daring to Lead found that 75 percent of nonprofit executive directors planned to leave their jobs in the next five years. The statistics were hard to ignore, especially when a series of follow-up studies confirmed their results. For example, a study of United Way of New York City grantees found 45 percent of executive director/chief executive officers planned to leave their positions within five years. A national study commissioned by the Annie E. Casey Foundation reported 65 percent of nonprofit executives said they were leaving in the next five years. In Alberta, Canada, 86 percent of nonprofit leaders surveyed stated they would leave their jobs within the next five years. The University of San Diego found 68 percent of the area's nonprofit leaders expected to leave in the next five years. And the New England Executive Transitions Partnership study stated that over 70 percent "imagined" they would leave their position within five years.

It was demonstrated again and again in studies across the United States and Canada: executive directors were leaving, and the nonprofit sector was unprepared to handle their mass departure. To many it seemed obvious: the baby boom generation of leaders was aging, and retirement was just around the corner. Within a few years of the release of Daring to Lead, a new field, executive transition management (ETM), was developed to help nonprofit groups anticipate the impact of impending leadership transitions and support them through the process.

The focus was not only on departing executives. Concerns about who would replace them gave new energy to initiatives designed to identify and train emerging leaders. There was also growing support for programs encouraging people to enter non-profit work. The emphasis was on grooming new talent who would be in the pipeline. They would be learning how to take on nonprofit leadership while aging executives prepared for their exit.

In 2006, another report, The Leadership Deficit, was published by Bridgespan, a nonprofit arm of the for-profit consulting firm Bain & Company. The report predicted there would be 640,000 vacant nonprofit senior management positions over the next ten years, more than double the number currently existing. Using a statistical model based on the aging population and the figures on the number of new nonprofits that are formed each year, Bridgespan, with its corporate credentials, caught the attention of the nonprofit world, especially foundations. Where would the new leadership come from, and how was the sector going to survive?

A Closer Look

Although there was growing alarm about the retiring boomers, few people were questioning the conclusions that were being drawn from these studies. Why would they? There was plenty of work for those providing ETM services from organizations putting into place succession plans or in the midst of dealing with leadership change. Programs and fellowships for those interested in learning the skills needed to lead were full of energetic talent of all ages. There was clearly a need and certainly a problem that was necessary to address.

The release of Daring to Lead 2006 was the clue that there was more to the findings. This next installment of the study again asked a representative sample of nonprofit executives in the United States about their future plans. Once again there was the dramatic finding: 75 percent of executive directors planned to leave their jobs within the next five years. Yet surprisingly little attention was given to the fact that between the two reports, five years had elapsed and the predicted turnover had not occurred.

Why were so many studies finding that nonprofit executive directors were planning to move on even though they continued to stay? What were these leaders telling us? If CEOs were not leaving, what motivated them to keep saying it was time go? The answers lay squarely in the reports themselves and are confirmed in some of the observations made by the next generations.

The nonprofit leadership crisis, it turns out, is not simply about the baby boom generation aging out of jobs. Only 17 percent of directors in Daring to Lead 2006 said they were planning to retire, a fact almost entirely overlooked by those pushing the crisis scenario. Nor do those who say they will leave seem to want to pursue other interests outside the social sector. The vast majority want to continue working in nonprofits. It turns out that leaders don't want to retire or leave the sector; they just want to leave their jobs.

The anticipated exodus of nonprofit leaders-the one that still has not happened-is not about age; it is about the executive director position. Of course, the boomer cohort will start to step out of their job-and the nonprofit sector in the coming decades-but the focus on their exit has overshadowed how unhappy so many are in their current positions. Both Daring to Lead studies found that executive directors want to get out of their positions because of the amount of stress they experience on the job. Leaders find great pleasure in the impact their organizations have and the relationships they form with colleagues, but these rewards are outweighed by the unrelenting demand to raise funds, manage finances, and, in too many cases, work with unsupportive boards of directors. To meet these needs, executives work long hours with relatively low compensation. Even more disturbing is that nonprofit leaders worry not just about making ends meet but about the assessment of their work by their boards. Daring to Lead 2006 found that one-third will be pushed out or fired before they voluntarily choose to walk out the door. Those leading larger and better-resourced organizations are significantly happier with the job, the pay, and the support they receive from both boards and funders. But most nonprofits are small to midsized groups, where leaders are responsible, often without much help, for keeping the doors open.

If the problem facing the sector is not that boomers are leaving, but that the demands of the work result in executives wanting to quit their jobs, then there are important implications for organizations and the sector as a whole. The analysis and assumptions we make about older leaders exiting and newer ones entering nonprofit organizations may be focused on the wrong issues.

Plans of the Next Generation

In our conversations with younger leaders, they rarely discuss the crisis of baby boomers leaving the sector. When they talk of boomer leaders and veterans of change, they are much more likely to notice the stress in older directors who have dedicated themselves to keeping their organizations alive. Generation Xers and millennials watch these older leaders with mixed reactions. On the one hand, many cannot imagine that they would ever want to be in a similar position. Heading a nonprofit organization appears to be a thankless job with enormous demands on the leader's time that leaves little room for the pleasures that program work offers. On the other hand, younger workers are discouraged that the help and relief they can offer older leaders frequently goes unrecognized. They feel the skills they bring to the work are often left untapped by older directors, who are used to doing it all themselves.

Some of the studies on nonprofit leadership help to explain these observations. For example, the United Way study in New York City asked directors to identify staff members they thought had the most leadership potential and then asked leaders whether these staffers were ready to take on the top role. Most of the boomer executives rated these potential leaders' skills far lower than this next tier rated themselves. Even if the older leaders were right in their assessments, they were reluctant, especially in small organizations, to offer development opportunities to this group, fearing it would result in their most talented employees leaving the organization.

A recent study by the membership group Young Nonprofit Professionals Network, which "engages and supports future non-profit and community leaders," asked members about their future plans. Forty-five percent of the respondents reported that they will leave the nonprofit sector. The reasons most often mentioned were burnout, low salaries, lack of career advancement, and job-related stress. But leaving now did not mean staying away. In fact, 60 percent of those planning to leave and 65 percent who want to stay say they expect to be a nonprofit executive director in the future. That's good news, except that many report that they "are ambivalent about taking on an executive director role," fearing its impact on their quality of life.

Younger generations are wary. If they stay in the sector, they can work in organizations with a social mission-where they can make a real difference-but they may have to sacrifice both time and money, and there is no guarantee they will advance to leadership jobs.

Redefining the Problem

So is the problem that boomers are exiting? Or is it that the executive director job is too stressful? Are there too few younger leaders to take on positions as older leaders retire? Or are younger leaders' skills left untapped by current CEOs? We suggest that there is no one problem that we are trying to solve. The studies reveal that the issue is more complex than we might have originally believed. What makes this time of transition both confusing and exciting is that it is multilayered. There are several ways to define the problem, and each leads to a different set of solutions. To illustrate this, let's look at five ways to think of generational shifts in nonprofit leadership and the implications of each on the future of the sector.

Baby Boom Leaders Are Leaving

The most common scenario about nonprofit leadership is that the sector is facing a crisis because the baby boomers are aging and will soon leave their leadership jobs-in droves. This exodus will create a vacuum at the top and put nonprofit organizations and the entire nonprofit sector in peril. This scenario implicitly assumes that the problem is a people problem, that is, there are not enough people to take the jobs that will be vacated. The solution to this crisis is the replacement theory: if leaders are leaving, we need to find new ones to take their place. One person goes out and another comes in. We then develop a pipeline-a place of preparation where new leaders are given training and support. But a pipeline does not conjure up images of innovation or new ideas. It readies people to fill a spot and contains those waiting for their turn.

If the crisis is that baby boomers are leaving their jobs, the solution is to develop new leaders across different age groups and sectors. Some suggest targeting young M.B.A.s, others prefer a focus on recruiting college students to the social sector, and still others encourage retired for-profit executives to try their hand at nonprofit work. The skilled pool will increase, the jobs will be filled, and the sector will be saved!

No Room at the Top

Another view, especially from newer generations, does not see the problem as the boomers leaving; rather it is that the boomers are not leaving. They see a powerful generation living longer, staying healthier, and maintaining interest in both making a difference and making a salary. In this staying on top situation, boomers want to continue to be in charge, especially after years of building their organizations. In addition, they may need to keep, or at least see no reason to give up, their earning power.

If boomers are staying on top, then the problem is that there is no place for newer generations to run organizations, share their ideas, or define the future of the sector. Unless they start their own groups, they will remain a poor second to a boomer-dominated sector for years to come. The ideas and observations of the oldest will dominate, and younger generations' interest in nonprofit work will wane.

If this is the problem, the solution is to find ways that new generations with fresh views and youthful energy can make a meaningful impact on the sector's organizations and work. Boomers who are coasting will be helped to find places in the organization or in other nonprofits where they can still contribute while new generations lead. Others who are making a difference will be tapped for their thoughts on how to include new people in significant roles. Younger leaders will find positions of authority and responsibility to make a significant impact, and the sector will be saved!

It's the Position, Stupid!

A different take on the problem focuses on the role of the top executive. In this scenario, the crisis is that the position of executive director as it is currently conceived is no longer viable. What worked forty years ago will not hold up to new generations. The work has changed, the positions have grown, and the context has shifted.

What is needed is to redefine the position. This scenario calls for very different solutions. Here we need to look at why the job is not viable and how it could be redefined. It means searching for new models for structuring the work. There need to be changes in the culture, education of boards, and support for a new norm of what is expected from those in the top positions. It is a risky business; yet, like generational change, some of these shifts are already taking place. For example, we found several organizations run by younger leaders who had codirectors, flattened hierarchies, and different types of team approaches. These groups are trying to distribute the responsibilities of the executive position among a small group to lessen the pressures of the job and allow leaders to have more time away from work.

A focus on reworking the executive director position would mean that nonprofits would take untenable jobs and redesign them so they are attractive to new leaders. There would be less burnout and more enthusiasm, and nonprofits would be improved overall. The sector will be saved!

(Continues...)

Excerpted from Working Across Generationsby Frances Kunreuther Helen Kim Robby Rodriguez Copyright © 2008 by Frances Kunreuther. Excerpted by permission.
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