Jim Ryan was instrumental in facilitating and guiding the development of our first Strategic Plan. The outcome was excellent and this plan now sets the stage for our next phase of growth, independence and the accomplishment of our mission.
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Opportunities Unlimited
September 2011 Newsletter – Succession and Exit Planning
Does Your Nonprofit Have a Succession Plan? By Emily Wachter
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Study after study has indicated an impending crisis in the nonprofit sector with a mass exodus of executive leadership as the baby boomer population begins to near retirement age. The Daring to Lead studies conducted in 2001 and 2006 both found that nearly 75 percent of nonprofit executive directors surveyed indicated they planned to leave their jobs within the next five years. However, only 14 percent of those who “planned” to leave were actually set to retire.
With all the talk about the need for succession planning in nonprofits, why aren’t more executive directors ready to retire?
The question of why more executive directors aren’t ready to retire is not a one size fits all answer. However we often find some combination of the following to be key reasons why nonprofit leaders are not reaching their projected retirement age:
Five Ways to Successfully Exit Your Business
And some of the steps to do so! by Don Moore
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| Don Moore |
There are essentially five ways to exit your business successfully.
1. Sell to Private Equity firm or Strategic Buyer
2. Sell/Gift to Children
3. Sell to the Management Team
4. Sell to an Existing Partner
5. Hold as Investment, run by your Management Team
While each of these methods has a number of flavors, these five are the basic categories. Over the last 23 years, Decision Associates has helped dozens of owners exit their business through one of these methods.
If we have learned anything through these experiences, it is this: almost all owners have a set of expectations that are largely established by anecdotal case histories that are heard in a seminar or over a glass of wine with a friend.
The result is that it is difficult for you, the owner, to gain an understanding of what you should expect in terms of outcomes and how you need to prepare in order to get your expected outcome. There is little in the way of guidance on the conditions that have to be met and how long it takes to set events in motion.
Over the next five newsletters, I am going to take each of the above exit methods in turn and attempt to provide some guidance. In the meantime, here are a few observations to help set the stage.
Succession Planning: A Critical Strategy By Jim Ryan
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Succession planning as an integral and critical component of an exit strategy for a business owner is one thing but what about internal succession? What about a strategy to ensure a smooth continuity of management and leadership within the company for key positions?
According to a recent study by the American Management Association’s Corporate Learning Solutions, leaders at one in five organizations are completely unprepared to deal with the sudden loss of a key executive and only 14 percent were well-prepared. Where do you fit? With unemployment at such high levels and budgets having been cut back due to recessionary worries, true internal succession planning has taken a back seat to many other more pressing matters. This trend is a recipe for real trouble.
Decision Associates welcomes Madeline Morales as an Administrative Assistant. We are happy to have her as part of our team and hope that you will welcome her as well.
Emily Wachter and Jim Ryan will be presenters at the Nonprofit Day conference on October 12th. Their workshop, “Succession for Nonprofits,” will be held at 9:30 a.m.
Congratulations to the two finalists in Decision Associates’ Services Grant award, Multicultural Resource Center and ExpERIEnce Children’s Museum. Our special thanks to The Nonprofit Partnership for helping with the selection process. The winner will be announced at Nonprofit Day on October 12. We are looking forward to the start of this project!
Congratulations to Emily Wachter of Decision Associates for completing her first run at the Presque Isle Half Marathon and to Don Moore who completed the 25-mile Tour de West County to benefit EmergyCare!
Congratulations to Don and Sue Moore on the birth of their first grandchild. Jenson, son of Brent and Nicole Moore of the Philadelphia area, was born on June 14.
A special Kudos goes to the Erie Community Foundation and all of the nonprofit organizations who benefited from Erie Gives on August 2nd. What a great way this was to help our favorite charities!
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This month’s issue of the Web Wire features Mike Estrich. He joined Decision Associates in late summer, 2010, as a strategy and marketing specialist to assist with our business and manufacturing customers.
Prior to joining Decision Associates, Mike was a branch manager for National City/First Niagara Bank and also worked as the General Sales Manager at the Cornell Radio Guild in Ithaca, New York. He is a graduate of Binghamton University where he majored in Financial Economics with a concentration in International and Industrial Trade, and minored in Graphic Design. All of this experience is being greatly used with his clients in the marketing and sales projects that he is leading. He also specializes in developing and implementing strategies for his clients to expand their current markets and pursue new ones.
Mike is married to Meredith, a veterinarian with the North East Animal Hospital, and they make their home in Erie. They are the proud parents of 10-month old Noah. When he is not spending time with the family, Mike enjoys playing golf, cycling, skiing and working with several nonprofit organizations, including the Erie Ad Club and the Glenwood Hills Neighborhood Watch Association.
We are pleased and proud to have Mike as a member of the Decision Associates’ team. If you are interested in strategy, marketing and sales development for your business, he can be reached at mike.estrich@decisionassociates.net or 814-528-9409.
Did we raise any questions for you and your business or nonprofit organization? If so, please contact us.
Send your suggestions for future topics of interest to: SueMoore@DecisionAssociates.net.
