Posted on March 14, 2006

print  e-mail

'Leadership Deficit' on Horizon for Nonprofit Sector, Report Finds

For nonprofits, the ability to attract, recruit, and retain qualified leaders is a key variable in their ability to fulfill their missions, and the challenges associated with those tasks are likely to become more pronounced over the next decade, a new study by the Bridgespan Group in Boston finds.

According to The Nonprofit Sector's Leadership Deficit, nonprofits will need to attract and develop 640,000 new leaders over the next decade — the equivalent of 2.4 times the number currently employed. To make up for leaders who retire or leave senior leadership positions, the sector will also need to develop nearly 80,000 senior leaders annually over the next decade. That estimate, the report points out, is actually conservative given historic trends, and the numbers could well increase. "The amount of social impact a nonprofit organization delivers is primarily dependent upon the capability and performance of the people in that organization," said Thomas J. Tierney, the report's author and the chair and co-founder of Bridgespan. "Results are a 'who thing.'"

The study by Bridgespan addresses the needs of nonprofits with revenues greater than $250,000 and does not include major higher education or healthcare institutions, which have well-established infrastructures for developing and recruiting new leaders, including access to national executive-search firms. According to Tierney, the leadership deficit is aggravated by the nonprofit sector's overall lack of intermediaries to help recruit and develop managers and by its lack of robust management-education and executive-search capabilities.

The reasons for the looming leadership deficit are complex, the report argues. The growth of the sector, the swelling numbers of baby boomer retirees expected over the next decade, and the lack of internal resources to develop leaders are contributing factors, as is the lack of career mobility for current leaders. Moreover, a significant need exists for functional expertise, particularly in finance, operations, and marketing. According to Tierney, the solution to the problem will require cooperation and collaboration among organizations, boards, funders, donors, and government. The paper, which is accompanied by perspectives from fourteen nonprofit and business leaders, recommends that nonprofits explore opportunities to invest in leadership capacity, refine management rewards to retain and attract top talent, expand their recruiting horizons, and foster individual career mobility.

To read or download the complete report (33 pages, PDF), visit: http://www.bridgespangroup.org/PDF/
LeadershipDeficitWhitePaper.pdf.

To read or download the accompanying commentaries (32 pages, PDF), visit: http://www.bridgespangroup.org/PDF/LeadershipDeficit
Commentaries.pdf.

Birnbach, Norman. “Bridgespan Group Identifies Nonprofit Sector 'Leadership Deficit'.” Bridgespan Group Press Release 3/10/06.

Primary Subject: Philanthropy and Voluntarism
Location(s): National, United States

FC008806