Factors that Influence the Implementation of Effective Succession Planning in Nonprofit Organizations

Abstract: All organizations may eventually face a change in leadership (Farah et al., 2020). Most organizations intend to operate well into the future and understand that management has a responsibility to ensure the development and stability of their workforce. One way to develop and stabilize the workforce is through developing succession plans, which have short-term and long-term implications (Carter et al., 2019). Although for-profit and nonprofit organizations usually incorporate their boards of directors and consultants in the succession planning process, there is a significant difference in how each type of organization addresses succession issues. For-profit organizations are guided by financial performance, which keeps their succession protocols strategic and focused (Shen & Cannella, 2003, as cited in Santora et al., 2015). However, nonprofit organizations are often directed to appoint successors that are sympathetic to the existing operating principles, which may result in political influence having a negative impact on the succession process (Santora et al., 2015). To help organizations survive in a competitive market, they should identify and develop individuals to be successors in key positions throughout the organization, which Rothwell (2016) considers to be the essence of succession planning.
The purpose of this study is to explore factors influencing the implementation of effective succession planning in nonprofit organizations. External factors including opportunities and threats to the organization, as well as internal factors including leadership personality traits, philosophy, and competencies will be considered. This study adopts Cascio’s (2016) definition of succession planning as “the process of identifying replacement candidates for key positions, assessing their current performance and readiness for promotion, identifying career-development needs, and integrating the career goals of individuals with company goals to ensure the availability of competent executive talent” (p. 697). This definition supports the continued development of individual leadership because organizations are generally not prepared for replacing key leaders and employees (Harrell, 2016).
Rothwell (2022)’s seven-pointed star process model of succession planning will be employed to guide the current study. We will use the lens of systems theory to examine organizations and see what are the factors that influence the implementation of effective succession planning in nonprofit organizations and how do they work. A basic qualitative research design is selected as an appropriate method to collect information from the participants describing their experiences in their own words (Bell et al., 2019).
Two research questions will guide the study: What internal and external factors may influence the effectiveness of implementing succession planning in nonprofit organizations, and how do the internal and external factors influence the effectiveness of succession planning in nonprofit organizations at different implementation steps? Semi-structured interviews with an interview protocol will be used as the primary data collection method. Other types of data to be collected include qualitative documents, such as minutes of meetings and official reports or other documents (Creswell & Creswell, 2018). The extent of the data collection will be until a point of data saturation of themes and categories is reached (Charmaz, 2006). 60–90-minute, one-on-one interviews via Zoom video-conferencing platform will be performed.
Purposive sampling using convenience sampling will be used for the study. Participants will be affiliated with a nonprofit organization, specifically an electric cooperative, and have been involved with a succession planning process. Participants will be selected through their membership in an association for the electric utility industry.
Data analysis involves segmenting the data and putting it back together in a way that makes sense for the study and will occur simultaneously with other procedures, such as the collection process and reporting the findings of the study, as analysis can occur while interviews are being conducted (Creswell & Creswell, 2018). Qualitative data analysis software will be used to interpret data through identification and coding of themes, concepts, processes, or contexts to build explanations or theories (Lewins & Silver, 2009). The process of analyzing data will involve five sequential steps that range from specific to general analysis as identified by Creswell and Creswell (2018).
The findings from this study are expected to provide empirical evidence on factors that may influence the implementation of effective succession planning in nonprofit organizations. Since HRD focuses on finding ideas and methods that may develop knowledge, skills, and abilities (Heathfield, 2021), this study may contribute to HRD scholarship by discovering knowledge, skills, and abilities to promote long-term stability and workforce development in nonprofit organizations. Also, it may provide HRD insights to identify and develop future leaders for nonprofit organizations.
Keywords: succession planning, nonprofit organizations, leadership.