<-- Back to Resource Center Leadership Crisis Looms in Non-profit Sector Derek Sankey for the Calgary Herald Saturday, August 06, 2005 A mass turnover in the next two to five years in the non-profit sector could hit 86 per cent of these organizations, causing a dramatic loss of jobs and cuts to vital services that millions rely on across Canada, according to research findings released by industry groups. "Donors, employees, volunteers, board members and service recipients will all feel the effects of leaderless organizations," says Carlo Jensen, director of consulting for the Calgary Centre for Non-Profit Management. The problem is engulfing non-profit groups around North America. A recent survey by the organization mirrors one conducted in the U.S., and reveals 41 per cent of current executive directors at non-profit groups plan to leave their positions within two years, while 86 per cent will leave by 2010. A lack of succession plans and suitable replacements, burn-out, an aging leadership population, a dwindling pool of support workers and core funding issues have all come together to pose serious risks for the entire sector, says Jensen. "Without effective leadership, non-profit organizations flounder, they operate in survival mode, trying to keep the organization afloat instead of effectively providing services," he says. The study of about one-third of the non-profit sector leaders in Alberta found despite Calgary's hot economy, serious challenges remain in all corners of the industry. The sector's 19,000 non-profit organizations employ more than 176,000 people, contribute $10 billion to the province's GDP and represent 449 million hours of volunteer time. The sector has always faced an uphill battle because its salaries generally fall below the public and private sectors. Yet, it has also attracted some highly skilled leaders, workers and volunteers who keep many parts of the community running smoothly. It also provides valuable business experience, says Jensen. Janice Sharlow, director of organizational development for the Alberta Cancer Board, worked several years at the Canadian Red Cross and the YMCA, but moved to the public realm after realizing greater opportunities for advancement. "The public sector has gotten its head around leadership development and succession planning much sooner than the non-profits," says Sharlow. At her time in that sector, she saw people who increasingly decided to stay in certain leadership roles for no more than five years. "We thought of ourselves as a training ground," she says. While the job offered her the organizational culture, flexibility, creativity and quality of life she wanted, it just made good career sense to move into a role with more opportunities for advancement -- and pay. Jensen believes the solution is getting creative, "to avoid, or at least minimize, this crisis." The Calgary Centre for Non-Profit Management has already started offering a governance plus program, in which corporate leaders join non-profit leaders to learn effective board governance skills. "We need to have a comprehensive system of training, rewards and career development for the next generation of leaders," says Jensen. The agency will begin a new program this fall aimed at teaching coaching skills to a mix of corporate and non-profit business leaders. It's one of several issues the organization plans to address facing the sector. "It's easy for people to walk across the street and get a job in the private sector that pays more," says Jensen. Part of the solution could be for the sector to accept leaders who generally don't want to stay long-term anymore and groom people for shorter-term roles accordingly, says Sharlow. The problem, at least in Calgary, is that in many cases the good economic times appear to have largely missed the world of non-profits. "Even though Calgary is booming, it's still becoming harder and harder to actually raise the money," Jensen says. Business partnerships with private corporations, donations and ongoing leadership and career development are necessary to combat the consequences of a virtually leaderless sector. "As corporations, if you want to develop leadership in your employees, send them to work as volunteers in the non-profit sector," he says, "because it's amazing what this sector can accomplish with very limited resources." derek.sankey@telus.net