Nonprofit Sustainability: How Does Departure of a Founding Leader Impact Outcomes?

Nonprofit Sustainability: How Does Departure of a Founding Leader Impact Outcomes? by Lauren McIndoo M.S., Syracuse University, 1994 B.A., State University of New York at Buffalo, 1991 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University November 2017 Abstract There is a high failure rate among local community-based nonprofit human service organizations in New York State, which may lead to service gaps in communities. Increasing sustainability may reduce these gaps and allow nonprofits to continue following the first leadership transition. Using McGregor’s human resource theory as the guide, the purpose of this phenomenological study was to explore the relationshipThere is a high failure rate among local community-based nonprofit human service organizations in New York State, which may lead to service gaps in communities. Increasing sustainability may reduce these gaps and allow nonprofits to continue following the first leadership transition. Using McGregor’s human resource theory as the guide, the purpose of this phenomenological study was to explore the relationship between leadership succession planning and how departure of founding leaders impacts the sustainability of nonprofits. Data were collected through interviews with 16 leaders that included departing founding leaders, successors, and 2 board members in 4 local community-based nonprofit human service organizations in New York State, regarding the impact of the founder’s departure on (a) leadership, (b) motivation, (c) teamwork, (d) power balance, (e) work environment, and (f) organizational change. Interview data were inductively coded and analyzed using a thematic analysis procedure. The results yielded 4 thematic elements that contributed to successful outcomes: (a) strengthening accountability to balance power, (b) individual versus collaborative leadership to increase shared governance, (c) assessing and developing competencies to efficiently use human resources, and (d) ability to conceptualize change and plan for the future. The results of this research study may help to contribute to positive social change by offering the leaders of local community-based nonprofit human service organizations strategies to sustain their organizational culture during and following their first leadership transition, involving the departure of the founder, allowing the organizations to continue to contribute positively to the community. Nonprofit Sustainability: How Does Departure of a Founding Leader Impact Outcomes? by Lauren McIndoo M.S., Syracuse University, 1994 B.A., State University of New York at Buffalo, 1991 Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy Public Policy and Administration Walden University November 2017 Dedication In grateful dedication to my mother, Gail MacCleverty, for always believing in me and supporting me, and for encouraging me to be the best version of myself possible. Acknowledgments I wish to sincerely thank my committee chair Dr. Ernesto Escobedo and my committee member Dr. Gary Kelsey for their constant support and encouragement throughout my doctoral journey. I am grateful for the guidance, insight, and feedback you provided to help me accomplish this goal. I would also like to thank my children, Rachel and Conner, for forgiving my mistakes and celebrating my successes. You will always be my greatest accomplishments. There are several other important people very deserving of recognition. Dr. Carroll Grant, was more than my boss for decades, a mentor and friend, and always believed in me. Carol Sonneborn, who was probably the first person to encourage this endeavor that has changed my life, served as a constant sounding board. Dirk Sonneborn provided a listening ear and some incredibly valuable resources, suggestions, and support. Without all of you, this never could have happened for me. I am especially thankful for the participants who so graciously agreed to be interviewed for this study and so generously shared their personal stories. I met so many interesting and inspiring people, and learned so much about our community and about our world. They changed me, and there is no sufficient way to repay that gift. Finally, many thanks are owed to my family and friends for their support and encouragement as I traveled through this journey. In particular, I owe thanks to my running girls, who endured many long miles of my ideas and my processing, listening with interest and providing helpful suggestions and insights along the way.