Director succession planning in not‐for‐profit boards

Abstract

Many Australian not‐for‐profit boards face a crisis in attracting suitably qualified board members who are willing and able to take on governance roles in increasingly complex not‐for‐profit business environments. These boards often do not have the expertise, time or resources to conduct the necessary succession planning. As a result, succession planning for board directors is not a widespread practice. This study investigated the attitudes of 88 directors of not‐for‐profit organisations to succession planning. Results revealed that existing board directors perceive succession planning in the two dimensions of practices and value. Directors evaluated their participation in the succession planning process depending on the referent group of CEO , management team and board of directors, and not on their level of involvement in the succession planning process. Directors recognise the positive relationship between succession planning and board effectiveness. Implications for not‐for‐profit organisations and human resources functions are addressed.

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