Case Study – Leadership Succession
Introduction
Many nonprofit founders find it difficult to hand over the leadership reigns of the non-profit. However, sometimes circumstances dictate that a succession plan is needed to maintain the health of the organization. Indeed, for an organization to continue to grow, it needs a strategic plan to move beyond the ideas and efforts of the founder. This case study is not a real organization, but it based on a growing amount of information that shows that a leadership transition can be less than rosy.
Make-A-Mark International
Make-A-Mark International (MAMI) is a US registered 501(c) (3) that supports poor children and women in developing countries. MAMI was founded by Mariam Argo McDonald of Colorado Springs about 30 years ago. Mariam is a global advocate for the welfare of girls and women, especially those in difficult circumstances. A daughter of an immigrant family from Austria, Mariam grew up in poverty. Her family moved to the United States to escape the throes of communism in Eastern Europe in the early 1960s. She was only a teenager then. They moved into a dilapidated part of Cleveland where her dad worked as a construction worker and later as a handyman. Her mother could not find steady employment, and therefore cleaned people’s houses to make ends meet. Since both parents did not speak English well, Mariam became the family translator. The family lived in a block of apartments with several other immigrant families who were from different parts of Europe. Mariam had an uncle who cared for her while her parents worked. The uncle, who was close in age to her dad, took advantage of the young and lonely Mariam, sexually abusing her repeatedly. Although the abuse was discovered, the family did not turn him over to authorities because they did not want him to lose face in the close-knit immigrant community. This not only made Mariam distrust her family and community, she learned to protect herself since she feared no one else would look out for her.
After college, Mariam left home got married to an army officer, Sgt. James McDonald of Alpharetta, Georgia. Their marriage ended several years later after James became extremely violent. He abused Mariam several times, one time leaving her with a broken arm. The marriage had produced two girls, who were growing up under dreadful circumstances. Mariam sought counsel from a friend who advised her to divorce James. In leaving the marriage, she knew it was going to be difficult, but this would be the best way to protect the girls and guarantee them a different future. With government and other social welfare support, Mariam was able to raise the girls. Once they entered college, she started MAMI with her own savings and launched a support Board. Her organization was dedicated to supporting girls and women in difficult circumstances.
What she started as a way to serve a few girls grew quickly grew through several partnerships and especially after a godsend chance to address the United Nations Commission on Gender Equality. Her passionate plea for the protection of girls worldwide won her many partnerships and an avalanche of funds. The small nonprofit she had founded grew into a multi-million international agency with offices in over 20 developing countries. Over the years, she also hired country directors and engaged the volunteer service of several board members in these countries.
Mariam’s charismatic leadership and personal testimony was always an endearing point for the development of MAMI. She was able to bring on board many high ranking government and business individuals worldwide to support her cause. All along, she served as founder and president for the organization. She was handsomely paid and highly regarded as a forthright and visionary leader. However, within the international office staff, she was known to be driven and often an uncharacteristically rash person who did not allow for alternative views or criticism.
Two years ago, after almost 30 years on the helm, some key board members suggested that Mariam should consider retiring and handing over the reins of the organization to new leadership. This came following a poor international audit of some of the programs in several countries that cited poor management and especially poor financial processes. Mariam and the international leadership team were blamed for some of the lax processes. Mariam defended her leadership vehemently to the board. She also fired the International Programs Director and the Financial Director claiming they were to blame for the mess. This did not appease the board who voted to remove her from the CEO/President position citing the poor state of the organization and the need for renewed leadership.
To support their decision to have her step down, many board members also cited Mariam’s growing disconnect between her and the staff in terms of interests and approach. Further, most of her peers in the organization had left, many retiring due to age and or to work elsewhere. The board also felt that she was questioning the multi-cultural philosophy that had framed the organization and consequently the mission and approach that they should take into the future. In all, she was finding it difficult to maintain the same energy and enthusiasm for the work. The board had decided it was time for her move on.
Mariam believes these attempts to have her leave are an attempt to discredit her work and to stall her new desires to create new programs. She argues that at just 65, she is not ready to quit what she passionately birthed and has been a big part of her life. She has threatened to fire the board if they persisted with their demand that she resigns.
The board members point at several big donors who have cut ties with the organization due to what they consider as poor leadership. The organization is forced to rely heavily on fewer personal connections, friends of the founder, and the local community to spread the word. Due to reduced funds, the organization has started laying off staff in all its offices. They have had to curtail some of the programs and even close some national offices.
Assignment
Part A: The MAMI Board is seeking the advice of your consulting group on how they should best proceed. First, identify the stakeholders. Second, provide an analysis of the best way to proceed, given the poor relations within MAMI between the founder/executive director and everyone else. What would you recommend that they do in the short term? What do you think this organization needs to do to ensure the smooth transition to the next executive director? What would you recommend that they do in the long term?
Part B: Once you have made your recommendations consider how they reflect the 6 core Jesuit values. If you are not aware of the values, you can go to Regis.edu webpage and search for Jesuit Vales.