It seems that almost every TV and radio advertisement is using the slogan “now more than ever” at the moment. Now more than ever, we should be shopping at Aldi. Now more than ever, we should be dying our grey roots… Well, now more than ever, organisations need to think hard about how they can recruit the very best finance leaders.
The role of Finance Director or Chief Financial Officer is not only an essential part of a charity’s mitigation of negative risk; great FDs are trusted partners to the Board and Senior Management Team as they assess the healthy risks required to capitalise on new opportunities in a challenging market. Below are our observations on how charities can hire the very best talent first time.
The evolution of the Finance Director across the Social Sector over the past decade has empowered and enabled finance leaders to operate in a genuinely advisory capacity at the heart of decision making. Only by having a great finance leader can an organisation really achieve its ambitions in an intelligent, well-managed and sustainable way. Do not be afraid of taking appropriate risks when hiring any great leader; be sure to challenge your own thinking and perceptions when you meet an impressive candidate who does not 100% meet your initial brief. Not only will lateral thinking open up the doors to a wider and more diverse talent pool, it will probably also get you and your Board thinking differently too.
Starfish Search provides senior executive search and interim management services to create strong and diverse leadership teams. Our focus is on developing effective leadership by enabling people to fulfil their potential. We promote individuals from all backgrounds and want new leaders to be encouraged to enter the frame. As trusted partners, we provide balanced, thoughtful recruitment advice based on intelligence and insight and ask the difficult questions that help clients appoint the best, not the predictable.
As we emerge from the crisis phase of the COVID-19 pandemic, organisations are once again starting to think about the future.
For many, May and June 2020 will present the first opportunity to take stock and assess the impact of the coronavirus response, while starting to plan different scenarios for the remainder of the year. For others, the remaining Spring months offer the opportunity to progress recruitment to critical roles that was originally planned for February and March.
We have continued to support our clients throughout the lockdown period. Our three key messages for organisations who are considering recruitment to non-executive, Director and CEO appointments in the months of May, June and July are:
If you are a talented executive director looking for your first CEO job, this is your moment. CEO appointments in mainstream sectors or subject areas are still attracting a strong response. Expect to see fewer serving CEOs in the field; unless these candidates had planned a move for themselves in 2020 and were already open-minded to it, they may be less likely to engage with the idea of a move at the moment.
Many leaders we have spoken to feel a duty to their current Board and are loyal to their teams. With fewer experienced competitors in the field, this is the time for talented executive directors to shine. If your organisation is open to a first-time CEO, you may have exceptional choice.
Expect higher numbers of applicants for senior executive roles. Although it is still too early for many organisations to count the true cost of COVID-19, uncertainty and nervousness within the workforce is nonetheless reflected in significantly higher applicant numbers.
If you are advertising a role that has a mainstream role title, expect to receive a higher than normal level of interest. It is likely that this response will be drawn from a variety of sectors.
While this may sound appealing to those seeking a cost-effective approach to recruitment, beware: within the higher numbers, we have experienced a much higher volume of candidates who have not given consideration to the organisation or context.
While overall numbers are up, focused search is still producing the top contenders for jobs; effective and thorough screening is also essential. We anticipate further increases as we enter the Summer period, once it becomes clear that organisations are unable to continue employing the same numbers of staff.
Searches for particular Chair and Board member appointments will take longer to complete. Overall, the market of suitable and available non-executives has contracted. This is because high calibre applicants who are already serving on boards are now being asked to increase their time commitment significantly, in order to help those organisations through the transition phase. For many, this will make it impossible to commit to a new role for the time being.
The lockdown period has presented an unrivalled opportunity to access very senior people without the usual structure and boundaries of the working week. Paid non-executive Chair posts are continuing to attract a good response, subject to the usual considerations (financial health of the organisation, reputation and strategic priorities).
Voluntary chair roles where the organisation is funded through contracts, membership or another comparatively stable source, are also continuing to attract high quality applicants in smaller numbers.
All Chair candidates are taking their time to carry out additional due diligence and may require greater access to detailed information. Mainstream charities with a historical reliance on fundraising, for example, may appear to present a more mixed opportunity, especially while the impact on future income is yet to be understood. For this reason, our role as advisers and brokers on these appointments has become more fundamental.
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All organisations will need effective leadership and governance if they are to transition successfully out of the current period. They must have the right skills, experiences and perspectives at the top to make confident choices about the ‘new normal’, and to begin the process of planning for a new future.
These appointments continue to require outstanding people with the vision, commitment and tenacity needed to take organisations, and possibly parts of the sector, forward. While current conditions mean there may be additional questions for candidates to ask, these roles remain outstanding opportunities to restore, revive, and deliver positive change for good.
The crisis phase of the COVID-19 pandemic has continued to evolve at an unprecedented pace. But while those charged with leading and governing organisations – across all sectors – remain focused on steadying the ship, the last week marks a sizeable shift in thinking and attitude. In particular, the many leaders we have stayed in touch with during this period – wherever they are working – have now started to look ahead.
Few will tell you that they have the answers. Like most of us, they have been listening to an increasing number of influential voices, each busy painting a picture of what our lives may look like as we come out of the biggest global health crisis of our lifetimes. From these varied sources, we are all starting to shape our own view, and piece together our own emerging picture of what the future could hold post lockdown and, longer term, post coronavirus.
Even in such unprecedented times – and very likely precisely because of them – effective leadership depends on practical, real world solutions. For many organisations, continued uncertainty and ambiguity will delay long term commitments. However, the skills of interim managers – especially in handling change and transformation, and in sense-making from chaos – will make these professionals a fundamental part of the senior transition team.
Here are our top six observations on how best to source and utilise the best interim talent:
1.As we emerge from crisis management to business continuity, organisations are likely to find internal capacity is limited and look to appoint strategic advisors on a short-term basis, for example in areas such as workforce planning or financial modelling.
2.A recent YouGov poll commissioned by the RSA( https://flo.uri.sh/story/262445/embed#slide-0) showed that fewer than 10% of people want a complete return to normal after lockdown is lifted and organisations will already be thinking about their future delivery models and the impact on their workforce. Even though people feel confined by lockdown, most have valued the time at home and agile working. Digital capacity within organisations was mobilised at lightning speed and will likely go further. As organisations build capacity and seek investment in technologies to enable more remote working, we expect to see a spike in requirements for interims with experience of digital transformation and innovation.
3.Organisations will be starting to onboard employees virtually; this will continue and can be utilised for Interim hires. Interims have proven track records in their fields and can be relied upon to deliver on objectives set even in a virtual environment.
4.The future of some organisations is already uncertain. We are expecting to see more collaboration (including mergers) between similar organisations to survive; this puts added strain on stretched workforces. We work with many Interims who have specific talents around Mergers and Acquisitions, Restructuring, Organisational Design. Strategic intervention at this time could add significant value. You may not have the expertise internally and acting quickly will pay dividends. External interim leaders can make tough decisions without fear of fallout from the organisation.
5.The environment we are working in now is unchartered territory especially for CEOs – consider hiring Interim expertise at CEO level, Interim Managers can empower you to make the best strategic decisions for your organisation.
6. You may have gaps on your leadership team and a weakened infrastructure at this time means more work for the CEO – Interim Managers can help fill these gaps and give extra capacity to executive teams.
The interim market is strong. Outstanding experienced leaders can be accessed quickly and cost effectively by any organisation looking for remedial or specialist support. Like everyone else, people who have chosen to invest in an interim leadership career are keen to add value and expertise to organisations in these changing times. Many are uniquely equipped to join senior teams at short notice and provide essential support with their trademark resilience. As we move deeper into the stocktaking and transition phases of the COVID-19 response, we would encourage organisations to think laterally about the solutions they may need, and to consider the benefits that this community can offer.
The last few weeks have seen more dramatic change and upheaval than many of us have experienced in our lifetimes, with limitless different personal and organisational reactions to the covid-19 situation as it has continued to unfold. Despite everything, organisations still need leaders who can help strengthen their response to the crisis, and transition out of it, whether new Board members, interim or permanent staff.
We have been asked the question about when and if it is worth recruiting at the present time. Starfish Search has remained available to support the Sector during this period and our advice to those leading organisations, based on our own experience, recognises the unprecedented times we are in. Here are our top five observations:
Many organisations are holding off making decisions about hiring now for obvious reasons – they are still in crisis mode, are experiencing major financial and broader uncertainty, or are simply not yet in a position to prioritise particular posts. But it is, for many, a question of time; as the situation evolves, organisations and the sector at large will begin the process of transition. We will all have a role to play in shaping the ‘new normal’ and building the future together.
However, others will need to and want to proceed with recruitment for key roles at the present time and there is no need not to, so long as the process remains sensitive to the circumstances. Flexibility is key. Some searches will move slower than others depending on the role or even the prevailing values within that community. But all search can succeed with sound and realistic planning and an authentic focus on engagement and connection.
Earlier this year we held a client round table event under Chatham House Rule to discuss the topic: ‘If transparency builds trust, what’s stopping us from embracing it?’ 15 charity CEOs and Industry leaders joined us. Thanks to 11 London and Trust Impact for partnering on this event and Kate Lee, CEO of Clic Sargent for giving such an insightful and honest appraisal of how transparency around impact reporting has created positive change both internally and externally at Clic.
In an age of misinformation, trust and transparency hold powerful currency. But in the non-profit sector, the fear of speaking honestly about failures is still holding many leaders back. Are they right to be afraid, or should they take the plunge and issue a ‘warts and all’ impact report?
Last week, 11 London teamed up with non-profit experts Starfish and Trust Impact to hold a breakfast event with 15 charity CEOs and industry leaders, hosted by broadcaster Liz Barclay, where we discussed how speaking honestly about failure can build trust. Here are 11 key insights from our debate about why it’s good to be transparent – and how to go about it:
WHY:
#1: Being honest about your failures means people believe your success stories: one charity that saw an uplift in major donations was told: ‘Because of the honesty, I believed everything else’.
#2: Transparency also builds engagement: your donors and beneficiaries will feel included in your challenges (as they should), rather than sold to.
#3: Honesty can win awards as well as hearts – as Clic Sargent’s ‘Hands up, we’re not perfect’ annual review proved.
#4: The cultural pressure that ‘this must work’ can freeze things up. Conversely: ‘Transparency has improved our internal culture. Because people have permission to fail, they’re trialling stuff.’
#5: Integrity is important to a new generation of job candidates – a transparent organisation attracts a bigger, better pool to recruit from.
HOW:
#6: You can’t start being open with the outside world if your own team don’t feel they can admit their failures. So grow a culture of transparency within your organisation first.
#7: Build psychological safety in your team. By giving people permission to fail, and ensuring that ‘failure’ isn’t seen as personal, you also empower them to learn.
#8: Your donors and beneficiaries are part of your team, so talk to them as though they are – you could even ask service users to write your review!
#9: Honesty provides a real opportunity to educate people about how complicated your work is – so don’t be afraid to be complex with some audiences.
#10: Thank your team members personally for being honest – one CEO recommends a handwritten letter.
AND FINALLY…
#11: If you’ve already aired your dirty laundry, no one else can wave it around. One CEO was told by a journalist: ‘I couldn’t find anything out you hadn’t already said.’