Interim Leadership

…using the pause between leaders to make change, not mark time.

A regional community development corporation with a $4.3 million budget, 50 employees, 350 units of housing, and a large and important housing voucher program had a problem. Actually, they had several serious problems. Their leader of a quarter century retired. The Board, most members for a decade or more, opened the fourth straight auditor’s “going concern” letter. Climbing Guide With almost one million in undocumented grant expenditures several state agencies were threatening to close the agency down. Other creditors were asking about another $2 million. Fourteen of the agency’s programs were operating at a loss. Absent a CFO, the finance director juggled funds weekly to make payroll. Vacancies at the agency’s low income rental units were high and climbing higher. At this point the Executive Search consultant suggested the Board consider hiring a professional Interim Executive Director during the search, and they chose Chris Dame of Non-Profit Transitions.

Chris quickly assessed the situation and presented the Board with a plan to repair funder relations, cut costs, and put the agency on a stronger footing for the new Executive Leader. Over the next six months Chris and the Board, with strong help from the staff, tackled the problems. A creditor’s stakeholder group prioritized debt repayment. Nonperforming programs were ended, a reduction-in-force was implemented, and new fiscal discipline was imposed. Chris obtained  new state grants to improve property management, purchase IT equipment, and engage a nationally know voucher consultant. Other NPT associates arrived to rebuild the HR system and begin the search for a CFO.

At the end of six months, as the new ED arrived on schedule, Chris and the Board could look back and conclude they had provided a solid base for the incoming leader. The first large debt repayment had been made and the stakeholder group was supportive. Finances improved. A balanced budget, with a scheduled COLA, was adopted. Staff morale changed for the better. And qualified candidates for both the CFO and the rental assistance program director were ready for final interviews by the new ED. Today, NPT continues to coach the new Director.   

Hopefully your organization’s interim transition leadership needs are not this severe, but even if they are, the NPT team of consultants is waiting to help. We can provide qualified Interim Executive Directors to meet every level of challenge. Give us a call.