Key Facts

• Over half of small and medium U.S. business owners are older than 55, raising leadership succession concerns.
• Nonprofit leaders also face pressure to maintain their missions during leadership changes.
• Succession planning has become a high priority at the board level in many organizations.
• Will Heath, founder of Sherpa, studies leadership transitions and says succession is about managing change, not just replacing leaders.
• Organizations often confuse executive search with succession planning; search happens too late to address deeper issues.
• Effective succession requires examining an organization’s culture, governance, and communication before searching for new leaders.
• Timing matters—the frequency of important conversations about transitions is more important than how many years remain before a leader leaves.
• Poorly handled transitions can harm donor trust, staff retention, and the organization’s mission continuity.