Hiring an Interim Leader Helps Arts Groups in Transition Maintain Fund Raising, Says Survey

JOB MARKET

By Lara L. McDavit

Hiring consultants to temporarily take over vacant executive-director posts proved successful for several nonprofit performing-arts organizations, a new survey reveals. The survey indicates that it also was effective to extend the term of the departing executive until a replacement could be found.

The consultants hired for the transition period alleviated the pressures on staff and board members who would otherwise have had to shoulder senior-management duties, according to the report, conducted by the Arts Consulting Group, a Los Angeles recruiting and management-consulting company. The organizations also said that an outsider gave them a fresh perspective on their strengths and weaknesses, and generated new ideas for fund raising and strategic planning.

The survey, conducted last spring, investigated the most effective ways for performing-arts organizations to handle leadership transitions. It involved 460 groups across the United States and Canada that had experienced a senior-level vacancy from 1998 to 2000. Seventy-nine organizations responded: 30 orchestras, 23 theater companies, 12 opera companies, 12 dance companies, and 2 choral groups. The majority — 60 organizations — had annual budgets of $2-million or less.

Sudden Vacancies

Most departing leaders of the surveyed groups gave short notice, according to the report. Forty-two respondents said their former senior manager gave less than six weeks’ notice. Once executive directors had departed, the report reveals, senior positions remained vacant for a median of four to six months before replacements could be found — meaning that half of the positions were vacant longer and have for less time.

Organizations coped with their vacancies in different ways. Twenty organizations said their outgoing executive directors agreed to remain on the job until their successors took over, while 21 chose to leave the position temporarily vacant. Others appointed people from within their organizations as temporary replacements: Fifteen respondents said they chose a staff member, and 16 asked a board member take over. Seven organizations said they hired outsiders.

The transition strategies produced varied results. Of the 52 arts groups that either appointed someone from inside their organizations or left the position vacant, 21 suffered a drop in donations while they searched for a permanent replacement, with 27 experiencing no change in income and only four reporting an increase. Of the 27 organizations that retained their former executive director during the transition or hired an outside consultant, 23 said donations either kept pace or increased, while the rest saw a decline.

The survey asked the respondents to rate the effectiveness of their approach to dealing with a leadership vacancy, using a scale of 1 to 10, with 10 being the most effective. Organizations that appointed consultants rated their approach highest, at 7.86. Those that retained departing executives came in second, with an average of 7.65.

A copy of “The Performing Arts in Transition: Leadership on the Move” can be obtained by contacting the Arts Consulting Group at (888) 234-4236 or by e-mail at artsconsult@artsconsulting.com The price is $15 plus $3 for shipping and handling. An executive summary is also available online.

Has your nonprofit group recently had cope with a leadership vacancy? Share your charity’s approach in the Job Market online forum.