As the nonprofit sector grows, it faces perhaps its greatest challenge in its long history of service to America – an acute leadership shortage. According to a study by the Bridgespan Group, nonprofit organizations will need 640,000 new senior leaders over the next 10 years. That’s 2.4 times today’s number. And the study says that the demand for new leaders could be as high as 1.2 million.
Given the significant management challenges faced by nonprofits, “any kind of leader” will not due. According to Tom Tierney, chairman of the Bridgespan Group:
It’s harder to run a nonprofit than a private company, you have the extra layer of a board of directors – and you’re wearing a lot of different hats. Successful leadership will call for individuals who are value-driven, highly-skilled managers capable to lead, inspire and transform.
It’s apparent that the Ford Foundation understand this new reality. In the August 14th issue of The New York Times, Ford announced that it selected Luis A. Ubiñas, who has worked for the international consulting firm McKinsey & Company for 18 years, as its next leader. Mr. Ubiñas’s appointment has stunned the nonprofit world, which has been speculating about who in the field would succeed Susan V. Berresford, Ford’s influential leader who retires in January. Ford is the nation’s second-largest foundation, with $11 billion in assets.
Increasingly high-profile nonprofit jobs are going to people who have done well in the business world or politics, a reflection of the pressure on charities and foundations to become more accountable.
What is your organization doing to increase the skills of your leaders? Do you have a board committee specifically dedicated to leadership development? What percent of your operating budget are you setting aside for training?
