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Association Executive Tenure 3

The Challenge of Association Executive Tenure

Why do association executives and CEOs typically remain for only 4.5 to 7 years? This question is more relevant than ever as I’ve recently observed several outstanding association leaders willingly stepping down or being asked to leave. As shown by ASAE studies and reports from nonprofit search firms, the tenure of association executives continues to hover in that range, with BoardSource’s 2021 findings echoing the same. Even in the private sector, the Harvard Law School Forum data shows CEO tenure slipping from 7.6 to 7.2 years in 2022, with the median down to 4.8 years in the private sector.

The top leadership position is often the most vulnerable in business, associations, or even sports. So, what are the reasons behind these short tenures in associations?

Critical Factors Behind Association Executive Turnover

  1. Strategic Shifts:Like many organizations, associations regularly reassess and change strategic direction. When boards pivot toward new priorities, they often look for fresh leadership perspectives, leading to executive turnover.
  2. Burnout and Stress: The role of an association executive is a high-pressure position, juggling member needs, board expectations, and financial realities. Burnout is an expected outcome, driving many executives to exit after only a few years.
  3. Board Dynamics: The relationship between the CEO and the board is critical. As boards change and new directors emerge, differing views and expectations may prompt a leadership change.
  4. Achievement of Goals: CEOs are often hired with a specific mission—executing a significant restructuring, fundraising campaign, or membership drive. Once these goals are achieved, boards and executives sometimes feel it’s time for a new leader to carry the organization forward.
  5. Career Advancement: Talented association executives often move on to larger organizations or different challenges after proving themselves, contributing to the relatively short tenures.
  6. Market Realities: The association sector faces volatility, with economic downturns, shifts in member engagement, and changes in industry trends impacting the stability of executive roles.
  7. Cultural Fit: As organizations evolve, the initial alignment between an executive and the association may shift. Cultural misalignment, over time, can result in leadership turnover.

These factors, when combined, explain why association executives often have tenures on the shorter side. However, the frequent turnover can be disruptive, leading to instability and frequent strategy resets. While we can all point to long-serving leaders, they are the exception rather than the rule.

How to Encourage Longer-Term CEO Tenure

The question then becomes, how can associations promote longer executive tenures? Here are some strategies to create a more stable leadership environment:

  1. Ongoing Leadership Development: Invest in continuous development for CEOs to help them stay adaptable to shifting environments and member needs. This type of continued professional development enables executives to lead through transitions rather than stepping aside when new challenges arise.
  2. Improving Board-CEO Relationships: A robust, transparent, and supportive relationship between the board and the CEO is essential. Regular communication and clearly defined shared goals can reduce friction and misunderstandings, often leading to turnover.
  3. Succession Planning: Formal succession planning for CEOs andcritical leadership roles can provide organizational stability, thus enabling CEOs to focus on building a solid leadership team, delegating responsibilities, and preparing for long-term success.
  4. Work-Life Balance and Well-being Support: Burnout is a significant driver of CEO turnover. Offering well-being initiatives, mental health support, and flexible working conditions can help create a work environment that prioritizes the executive’s health and encourages long-term commitment.
  5. Strategic Goal Alignment:Associations should focus on leaders with long-term vision rather than hiring CEOs to achieve specific short-term objectives. Multi-phase goals can keep executives engaged over a more extended period.
  6. Cultural Fit and Adaptability: While cultural fit is essential, adaptability is vital. Regular check-ins to assess cultural alignment and offering flexibility for CEOs to shape the organization’s culture over time can promote retention.
  7. Incentives for Long-Term Stay: Offering retention bonuses or milestone rewards tied to long-term achievements may encourage CEOs to stay longer, thus reflecting sustained progress rather than short-term accomplishments.

In 2023, material by the Directors Institute pointed out benefits to the long-term executive. These include:

  1. Stability and Consistency
  2. Deep Organizational Knowledge
  3. Strong organizational culture
  4. Ability to Nurture Long-term Relationship
  5. Continuity and Succession Planning
  6. Institutional Knowledge and Learning

Conclusion

By addressing these areas, associations can create a more favorable environment for long-term CEO success. Retaining practical leadership benefits the executives and the associations they serve, allowing for sustained progress and a more stable future. The association community rarely provides the kind of parachutes that we find in the private sector. When boardsseek quick fixes, they become known for a lack of CEO support, and the candidate pool changes. A positive stewardship priority will go a long way to correcting the tenure issue.

While executive turnover may never disappear entirely, the right strategies can help ensure that association leaders have the support and incentives they need to stay for the long haul.