Assignement introduction Leadership Training Develo.pdf

Section 1: Foundation of the Study

Nonprofit organizations (NPOs) are a major part of the social makeup in

emerging and established economies (Hudson, 2005; Weerawardena, McDonald, & Mort,

2010). Leadership has a critical role in the performance of organizations, whether the

organizations are NPOs or for-profit organizations (FPOs). Leadership is more than just a

single position; it includes all parties involved in leading an organization. Religious and

charitable NPOs have historically served as society’s conduit for giving and for altruistic

behavior (DiMaggio & Anheier, 1990). The aim of this qualitative single case study was

to provide strategies that leaders of NPOs can use to develop the future generation of

leaders and prepare them to assume leadership roles (succession planning) within the

organization.

Background of the Problem

Many NPO leaders face a lack of direction and talent throughout the organization

(Kramer & Nayak, 2012), a lack of strategy and sustainability in leadership succession

plans (Al-Tabbaa, Gadd, & Ankrah, 2013), and a lack of financial support from donors

that makes them dependent on government intervention (Stid & Shah, 2012). The success

of an organization depends on the abilities, experiences, and capabilities of its leadership

(Ready & Conger, 2003). Some NPO leaders search for external candidates to help them

remain competitive, whereas others prefer to promote internally (Johannessen &

Skålsvik, 2013). Chief executive officers (CEOs) play a vital role in defining an NPO’s

place in the community (Froelich, McKee, & Rathge, 2011). In theory, CEOs are

responsible for what an organization does or fails to do (Froelich et al., 2011).

Organizations need competent leaders who are aware of social and financial

responsibilities (Hind, Wilson, & Lenssen, 2009). Some form of leadership development

is necessary for an organization to survive in a sustainable way. Leadership is a necessity

for sustainability. An NPO’s future relies on training employees to cope with continuous

changes in the work environment (Laff, 2008) and engaging executives, boards, and

stakeholders in executive succession planning (Cornelius, Moyers, & Bell, 2011), but the

leaders of many NPOs are struggling to cope with a decrease in funding and with

providing services within communities (Kahnweiler, 2013).

The inability to balance available funds with the needs of the mission is one of the

primary issues involved with managing NPOs (Chetkovich & Frumkin, 2003; McDonald,

2007). High-profile financial fraud in some NPOs has led to public skepticism, reduced

giving, and diminished NPO performance (Alexander, 2010). Leaders of NPOs should be

aware of other NPOs that are trying to fill the same space. To keep NPOs viable in the

community, strong continuous leadership is necessary (Morino, 2011).

Problem Statement

Succession planning is a major concern for NPOs in the United States, but many

NPO leaders fail to develop the pool of talented future leaders needed to undergird

effective succession planning (Landles-Cobb, Kramer, & Milway, 2015). In a global

survey of 381 NPOs, including the United States, 74% of the NPOs claimed they lacked a

leadership succession plan (Santora, Sarros, Bozer, Esposito, & Bassi 2015). The general

problem is the lack of leadership development and succession planning in NPOs. The

specific business problem is that some NPO leaders have limited strategies for

developing the future generation and preparing them to assume leadership roles within

the organization.

Purpose Statement

The purpose of this exploratory single case study was to explore strategies that

NPO leaders use to develop future generations and to prepare them for leadership roles

within organizations. The target population consisted of leaders in a nonprofit

organization in Houston, Texas, who developed strategies for forming future leaders

within their organization. This study has a strong potential for positive social change in

helping NPO leaders strategically develop future leaders to maintain their charitable

missions. The implication for positive social change is the potential for NPOs to develop

strategies to improve performance practices and actuate their mission to better society.

Leaders might use the findings to improve sustainability.

Nature of the Study

The method for this study was qualitative. The three types of research methods

available to researchers are quantitative, qualitative, and mixed methods (Venkatesh,

Brown, & Bala, 2013). A qualitative research design includes the collection, analysis, and

interpretation of narrative and visual information (Simon & Goes, 2013). The

quantitative research method is the collection and analysis of numerical data to describe,

explain, predict, or control phenomena of interest, which was not the focus of this

research. I selected the qualitative research method to explore strategies used by NPO

leaders to develop the future generation and prepare them to assume leadership roles

within the organization. Quantitative research includes statistics, numerical data, and

hypotheses for testing purposes (Simon & Goes, 2013). The quantitative research method

involves collecting and analyzing numerical data to describe, explain, predict, or control

the phenomenon of interest (Morse, 2015), which was not the focus of this research. A

mixed–methods study includes both quantitative and qualitative data collection and

analysis (Anderson, Leahy, DelValle, Sherman, & Tansey, 2014), which was not

appropriate for revealing the experiences business owners used to avoid permanent

business closure in the aftermath of a natural disaster. Qualitative exploratory research

involves using semistructured interview questions to gather detailed data that lead to

open-ended responses (Morse, 2015).

A case study involves interviews and open-ended questions to obtain information

about a topic under study (Yin, 2014). Case study research involves how and why

questions, for example, how and why some organizations decide to invest in training

(Pettigrew, 2013; Yin, 2014). A case study is suitable to explore strategies and training

plans NPO leaders use to prepare future leaders of an organization.

A phenomenological design is an approach in which researchers explore and

describe the lived experiences and perceptions of a group of people around a

phenomenon (Kruth, 2015). This design was not appropriate for this study because the

intent was to understand how leadership and succession programs work rather than how

they are perceived by individuals. Ethnography is the study of shared patterns of

language, beliefs, and behavior within a cultural phenomenon (Kruth, 2015), which was

not the focus of this study. The intent of grounded theory study is to develop theories and

to use empirical analysis to reinforce the theories (Goulding, 2017). This study did not

have a focus on theory discovery, but I did focus on strategies used by leadership

personnel.

Research Question

What strategies do NPO leaders use to develop future generations and prepare

them to assume leadership roles within the organization?

Interview Questions

I used the following semistructured interview questions so participants could

explain their experience in depth regarding strategies used to develop human capital and

future leaders. The questions determined that there was a need for more information and

confirmed why the information was important. Responses to the questions helped

elucidate the strategies of succession planning and leadership development within

specific organizations.

1. What was included in your strategic plan for succession planning?

2. How have you, as a business leader of an NPO, participated in developing the

future generation of leaders in your organization?

3. What processes have your organization used to find leaders?

4. What have been some of the effective processes used in your organization for

leadership development?

5. What factors were considered in the succession plans in your organization?

6. Please elaborate on different strategies your organization might enact to

prepare future generations in assuming leadership roles within your

organization.

7. What other information, if any, would you like to share concerning how you

find and develop leadership within your organization?

Conceptual Framework

After reviewing different business theories relating to succession planning, two

theories materialized to construct a conceptual framework for this purposed study: the

theory of human capital (Becker, 1964) and succession theory. Human capital theory

refers to developing current and future leaders’ skills, knowledge, and comparable

characteristics in response to human capabilities while the leaders continue to be

productive at work (Schultz, 1961). According to Becker (1964), human capital is one of

the best investments organizational leaders can make, and leaders must develop human

capital to ensure growth in any industry.

As applied to this study, human capital in the succession planning process is

critical to the sustainability of the organization. Human capital is one of the most

valuable assets an organization possesses. The value in human capital should be treated

with care (Crews & Scherron, 2013). Human capital is an investment for any

organization. The knowledge obtained, preserved, and transferred is a benefit for the

successor in a leadership role (Tunheim & McLean, 2014).

Fundamental to succession theory is an underlying philosophy that executive

management must develop human capital for sustainability, the organization, and

stakeholders. Succession planning and leadership development are critical to all

organizations, yet the leaders of many NPOs have little no interest in succession planning

(Froelich, McKee & Rathge, 2011). The framework is appropriate for those business

leaders exploring complex phenomena involving succession planning and leadership

development. The diverse nature of NPOs provides a framework for investigating why

executives are not necessarily open to succession planning.

Definition of Terms

This study included the following operational definitions:

Leadership: Leadership is a process whereby an individual influences a group of

people to achieve a common goal (Northouse, 2007).

Nonprofit organization (NPO): A corporation or an association whose leaders

conduct business for the benefit of the public without shareholders and a profit motive

(Chastain, 2013).

Organizational change: Organizational change involves making changes to an

organization that will affect the way individuals and groups operate and interact

(Schwartz, 2013).

Replacement planning: Replacement planning is a process of identifying short-

term or long-term backups so that organizations have people who can assume

responsibility for critical positions during emergencies (Rothwell, 2011).

Succession planning: Succession planning is the process of optimizing the

identification, development, and placement of leadership talent (Masthan Ali &

Premchand Babu, 2013).

Transactional leadership: Transactional leadership is a leadership style based on

meaningful exchanges between leaders and followers. Transactional leaders enter a

contractual agreement in which followers perform duties that meet specified objectives.

Transactional leaders also lead using rewards and punishment (Avolio, Bass, & Jung,

1999).

Transformational leadership: Transformational leadership involves using

empowerment and a shared vision to embrace the transcendence of self-interests.

Transformational leaders are agents of change who motivate and influence followers

toward high performance that meets or exceeds organizational objectives (Bass, Avolio,

Jung & Berson, 2003).

Workplace innovation: Workplace innovation refers to the implementation of new

and combined interventions in the fields of work organization, human resource

management, and supportive technologies (Pot, 2011).

Assumptions, Limitations, and Delimitations

Assumptions

Assumptions are circumstances that are out of a researcher’s control, but if they

are not present in a study, the research becomes irrelevant (Simon & Goes, 2013). An

assumption is a belief that something is true without validation (Wahyuni, 2012). An

assumption provides the foundation to conduct research (DeSimone & Buzza, 2013). The

primary assumption was that participants would respond honestly without bias. Since

participation was voluntary and the identity of participants and the organization were

confidential, this assumption was likely met.

Limitations

Limitations are potential shortfalls within a study and are out of the researcher’s

control (Simon & Goes, 2013). A small sample size was a limitation of this study;

research findings may not apply to a broader population when a small sample size is used

(Button et al., 2013). Participant and researcher bias is another limitation (Simon & Goes,

2013). Participants’ biased responses to interview questions and a researcher’s biased

interpretation of the data could influence research findings (Yin, 2012). I used bracketing

to set aside preconceived perceptions to mitigate bias. Other limitations in place for this

study were out of my control, such as time, convenience, and the ability to a take a broad

view of the findings based on the chosen population and sample. The workplace

environment and interruptions may affect the flow of the interviews (Wiederhold, 2014).

Delimitations

Delimitations are boundaries for the scope of a study set by the researcher (Simon

& Goes, 2013). Reality and observation define the study delimitations. Delimitations are

in a researcher’s control. The population size, data collection process, and time

constraints bound the scope of the study. Delimitations give structure to research, and

study images classify case (Yin, 2013). This study was delimited to NPOs in Houston,

Texas. Only leaders and managers participated in the study. Excluded from this study

were any for-profit businesses.

Significance of the Study

The results of this study could be valuable to NPOs. The research of succession

planning strategies and leadership development could assist NPO leaders who fail to

recognize succession planning as a key component in sustainability. Leaders and

employees of NPOs may benefit from this study by gaining an understanding of the

importance of developing an organization's human capital for sustainability. NPOs have

many distinct goals that separate them from one another; however, unlike for-profit

businesses, NPOs are formed to benefit society in a tangible way.

Contribution to Business Practice

NPO leaders may benefit from the themes and innovations derived from this

study. The findings of this study may contribute to the body of knowledge in the field by

providing an understanding of the importance of developing an organization's human

capital for the future. For NPOs to survive, their leaders need various management

methods and skills, strategic creation, and, most of all, strategic leadership (Stumpf &

Mullen, 1991).

Implications for Social Change

This exploratory single case study has the potential for positive social change by

providing strategies to develop new leadership in the NPO sector. Each NPO has a

unique business mission, but all have goals to improve society. NPOs are the heartbeat to

society and essential to communities (Xie & Bagozzi, 2014). There is a need for NPO

leaders to develop future generations of leaders and prepare them to assume leadership

roles within the organization. Society, in general, could benefit by current NPO leaders

proactively identifying and developing new leaders to succeed them (Dobrai & Farkas,

2016). By so doing, NPOs can continue to fulfill their charitable missions.

A Review of the Professional and Academic Literature

The purpose of this exploratory single case study was to examine the effect of

succession planning and leadership development on future leaders in NPOs in Houston,

Texas. To understand the effect of human resource management on the effectiveness of

an organization, it is necessary to understand the process of developing human capital

and identifying appropriate training strategies by evaluating occupations and tasks. The

focus of the study was the perspectives of executives with leadership experience in NPOs

regarding succession planning. The literature review includes five primary topics:

characteristics of leadership, strategy for leadership development, employment training

strategies, succession planning, and considerations specific to the nonprofit environment.

Title Searches, Articles, Research Documents, and Journals

The literature review for this study involved using multiple databases from

Walden University’s library, including Business and Management, ProQuest, Google

Scholar, Sage Journals Online, Business Premier Source, and EBSCO. Other sources

used for this review included Walden University’s document delivery service. The

literature review included a review of works completed by other scholars about training

and development and a consideration of other studies in the area of leadership

development. The information and sources reviewed included peer-reviewed journals,

doctoral dissertations, books, Internet websites, and reports on the subject of training and

development in NPOs.

The literature review consists of 320 articles, including 280 peer-reviewed articles

published between 2014 and 2018 and 39 published in 2012 or earlier. I also used 32

books to compose the literature review. The percentage of peer-reviewed articles

included in the literature review published within 5 years of anticipated graduation in

2018 is 90%.

Characteristics of Leadership

Leadership is necessary for continued success in any organization (Palumbo,

2016). Professional development for all leaders is essential to growth in an organization

(Popescu, 2013). A true leader is more than a person giving instructions and leading

others. A true leader recognizes all employees and shows respect for each individual

(Hitka & Balazovz, 2015). Many people can make important contributions to

organizations and society by not being in a leadership role. Effective leaders recognize

that training is necessary for all employees, and organized leadership training should be a

requirement.

A leader’s responsibility to the organization is to serve as a resource to help

employees achieve the objectives for which the leader holds them accountable.

Accountability means a leader must identify the strengths and needs that followers bring

to tasks and responsibilities that link to business outcomes and objectives (Bozer, Kuna,

& Santora, 2015). An organization that lacks a global focus, sustainable organizational

performance, supportive management practice, and organizational motivation is an

organization without effective leadership (Tonkham, 2013).

Situational leadership. Another term used to describe situational leadership is

the contingency theory (Amanchukwu, Stanley, & Ololube, 2015). This type of theory

has attracted researchers for many years. The contingency theory includes an emphasis

on a given situation and on the characteristics of how a leader will function (Fiedler,

1967). Thus, the situation determines how a manager will respond to certain

circumstances. The situation at hand will determine a leader’s response. Situational

leadership centers on the tasks given by a leader and the way followers respond to those

tasks (Thompson & Glasø, 2015).

The effectiveness of leadership is critical to the performance of employees (Pitts,

2013), especially in the NPO sector. Finding the right talent is challenging, and searching

for the right person for the right position can be even more challenging. NPOs play a vital

role in society, as they provide services and charity for communities. When facing

everyday challenges, NPO leaders should be able to respond to all types of environments

and people. Many NPOs lack leaders who have the ability to make difficult decisions.

Complexity science is an additional resource to help understand leadership and its

value to organizations (Thompson & Glasø, 2015). Having knowledge and understanding

of leadership components is an added advantage for any organization. Exceptional

leadership adds value to an organization’s mission, vision, and culture. A leader of the

present-future should be able to adapt to many different leadership styles. Leadership is

most important when it comes to managing an organization. Leadership differs than

management and requires leaders to be trained to handle different situations (Palumbo,

2016).

Servant leadership. Servant leadership represents some basic parts of leadership

that are significant for firm performance (Huang, Li, Qiu, Yim, Wan, 2016). NPOs’

struggle to retain capable leaders who look at the for-profit sector as a chance to propel

their career. Little is thought about the pertinent attributes that recognize the viable

leader in the nonprofit sector (Zeinabadi, Yasini & Mirhadian, 2016). Some followers

become reliant on the servant leader rather than being empowered, unwilling to embrace

proactive conduct to meet the organizational instances. Researchers are steady in

asserting that leadership is a basic achievement factor for NPOs (Palumbo, 2016).

Transformational leadership. Transformational leadership is one of the most

effective styles of leadership (Belias & Koustelios, 2014). Transformational leaders can

lead others but also have the ability to lead themselves (McCleskey, 2014).

Transformational leadership happens when leaders consider the emotions and values of

their employees (Belias & Koustelios, 2014). Transformational leaders also create a

planned vision that enlightens all those involved in the strategy of the organization, and

they look for a commitment to the vision (Mokhber, Ismail, & Vakilbashi, 2015).

Transformational leaders encourage followers to take ownership and, while doing

so, advance their ideas and agenda for success (McCleskey, 2014). Transformational

leadership is primarily about a team’s development and creating an environment of

innovation and creativity. Transformational leadership is for the greater good, and

transformational leaders consider the critical role that trust plays in employee

engagement (Reunanen & Kaitonen, 2017).

One characteristic of transformation leadership is sharing the vision of the leader

with others (Brown, 2014). Transformative leaders effectively communicate with

employees (Mazzei, 2014) and have a relationship with their human capital, which has an

effect on workplace attitude, employee conduct, work–life balance, and employee

turnover (Trmal et al., 2015). Transformational leadership improves employee morale

and motivation (Gupta, 2015), which influences employee performance and supports

career development (Korsakiene, Stankeviciene, Simelyte, & Talackiene, 2015).

Five major components of transformational leadership encourage participation by

employees: (a) leaders’ influence on the employees, (b) leaders’ behavior, (c) leaders’

studious motivation, (d) leaders’ encouragement, and (e) individual relationships with

leaders (Sahin, Çubuk, & Uslu, 2014). Leaders who display transformational leadership

characteristics become warriors of change within organizations by empowering

employees and transforming the vision (Yahaya & Ebrahim, 2016). Regardless of

leadership style, leaders with influence over employees usually have some characteristics

of charisma, which is a style that is about personality and captivation (Effelsberg, Solga,

& Gurt, 2014).

Transactional leadership. Transactional leadership is a valuable concept and

suitable style of leadership during select situations in the workplace (Mgeni &Nayak,

2016). Transactional leaders reward followers who perform tasks or reach a certain level

and punish those who do not. Transactional leadership behavior is contingent upon the

behavior of the employee, which reflects a difference between transactional and

transformational leadership. Transactional leadership theory is comparable to

contingency theory because of the focus on the obvious and implied relationship between

employees and leaders (Girma, 2016).

Many organizations have a clearly defined mission and vision; however, mission

and vision are not necessarily the focus of transactional leadership (Bass, 1995). A

transactional leader focuses primarily on productivity and maximizing output rather than

on innovative initiative (Mohamad & Yahya, 2016). Transactional leaders use rewards

that are contingent on the performance of the employees. Transactional leaders also offer

rewards for completing tasks (Tyssen et al., 2014).

Strategy for Leadership Development

Leadership. The idea of leadership is ephemeral. One characterization of a leader

is a person who can motivate others, and a leader is sometimes comparable to a hero in a

movie or story. Some authors have contrasted leadership to management by describing a

leader as more of a persuader and a manager than an intimidator (Phillips & Phillips,

2014). The need for a leadership construct continues to grow throughout different

industries, organizations, professionals, experts, and academics (Kilkelly, 2014).

The theory known to many as the great man theory includes the idea of a leader

being born and not taught (Eisenberg et al., 2015). Another way for leaders to develop

their leadership skills is through on-the-job training. On-the-job training can provide

leaders and employees with benefitted developmental activities. Many leaders and most

followers understand that leadership is about managing change (Kilkelly, 2014).

Effective leadership and managing organizations is an ongoing process, and poor

employee performance in many NPOs makes leadership more important than in FPOs

(Eisenberg et al., 2015). Some descriptions of leadership echo the notion that leaders

should have the talent and ability to provide guidance, eliminate inconsistencies, and

create a climate in which people can excel and advance within the organization (Hujala &

Viitala, 2014). A difference exists between leadership coping with change and

management managing the change. Managers manage the strategic focus within

organizations, which includes planning, organizing, and budgeting (Pradhan & Pradhan,

2015).

In the NPO and FPO sectors, many corporations have experienced challenges due

to poor leadership and a lack of accountability, and the nonprofit sector has struggled for

years due to a lack of leadership development, accountability, and succession planning.

The lack of leadership affects the principles of the organization, the value of

performance, and plans for success (Phillips & Phillips, 2014). Organizations lack

transparency and accountability to shareholders, donors, and the community. The basis

for the lack of training and development is leaders not understanding what leadership

training involves and not knowing the difference between a manager and a leader

(Phillips & Phillips, 2014).

A challenge facing the leaders of many NPOs is a decrease in leadership

personnel, vision, and strategic perspective (Reunanen & Kaitonen, 2017).

A reduction in financial support from the government and donors is a contributing factor

to organizational leaders failing to hire the right talent (Cox, Hannif, & Rowley, 2014).

Financial stability is important when trying to hire the right person or persons to lead an

organization. The complexity of NPOs requires someone with a diverse background,

strong leadership skills, an understanding of the enterprise, the ability to work across

boundaries, and knowledge of how to grow the business through executive

communication, financial planning, and strategic planning (Palumbo, 2016).

Leaders rely on others following their guidance (Pauliene, 2013). Leadership

refers to the idea that someone can lead others to a specific task or goal. Leadership

focuses on influence and the impact a leader has over human capital within the

organization (Cherry, 2013). Buy-in by the people will determine the influence a leader

has within an organization. Relationships between leadership styles and successful NPOs

have not received the attention they deserve.

Leaders of successful businesses involve everyone’s understanding why they are

in business and in planning how to move that business forward. Being a leader and

demonstrating leadership involve being a motivator and inspiring those in the

organization. Effective change management reflects the strategy and talent management

of a real leader (Yahaya & Ebrahim, 2016). Leadership styles differ across the spectrum

and situation. Leaders must carry out specific tasks that require different behaviors and

handle situations that arise (Phillips & Phillips, 2014).

Leaders should be good at training their employees to be good followers.

Followers need to have a good sense of judgment and enthusiasm. By building trust,

leaders can communicate their ideas effectively and transfer their vision to followers

(Palumbo, 2016). However, organizational leaders often struggle to communicate the

need for change (Kilkelly, 2014).

Common factors that characterize leaders include (a) strategy and vision, (b)

communication and information, (c) authority and responsibility, (d) creating a learning

culture, (e) engaging, (f) plainness and simplicity, (g) humanity and trust, (h) walking

around, and (i) reflective personal leadership (Larsson & Vinberg, 2010). However,

Mathieu, Fabi, Lacoursiere, & Raymond, (2015) failed to mention research regarding

how leaders should not conduct themselves. Effective leadership starts with individuals

believing in their abilities and themselves. Effective leadership balances qualities that

present employees with inward and outward skills. Effective leaders maintain necessary

and essential organizational elements while initiating required changes within employee

procedures to reach objectives (Reunanen and Kaitonen (2017).

The style of leadership is important, as effective leadership can be vital to

success. Prior research has shown that supportive leadership has a better effect on the

environment, more engagement, and greater inspiration of employees (Fusco, O'Riordan,

& Palmer, 2015). Effective leaders depend on effective organizational cultures and the

ability to improve performance (Batool, Khattak, & Saleem, 2016). Organizational

leaders expect managers’ abilities to vary, and their styles should apply to the situation at

hand. The right leader will support enforcing strategic initiatives within an organization

(Phillips & Phillips, 2014).

Leadership development. Organizational leaders tend to provide leadership

development as a separate entity. Leadership development is one way to provide

sustainable solutions to an organization and diminish some of its strategic challenges

(MacKie, 2014). Benefits associated with leadership development include increased

productivity, improved bottom line, and greater knowledge (Clarke & Higgs, 2016);

however, many NPOs do not have such training resources for employees (Hopkins et al.,

2014). Organization and planning are strategies necessary for organizational success in

the field of management.

The management of people has become strategic in its significance, and the focus

of its outlook is attracting, retaining, and employing the right people. Managers’ needs

may not connect with organizational needs (Eken, Ozturgut, and Craven, 2014). Hiring

the right people and making sure a person is right for a role is part of the strategy.

The population of the world is changing, and people are living longer (Ng &

Feldman, 2013). Many people want to work to an older age, which creates more

competition with younger workers. Global life expectancy in 1950 was approximately 48

years old, and it reached 68 years of age in 2010 (Roberts, 2011). With the improvements

in technology and health care worldwide, life expectancy is likely to increase to 76 in

2050 and 81 years in 2100 (Bloom, 2011). As life expectancy increases, organizational

leaders will need to provide support in some capacity to help the aging workforce

(Truxillo, Cadiz, & Hammer, 2015).

Analysis revealed flaws in most commentaries on whether the aging workforce

threatens a nonprofit leadership crisis within a theoretical framework of supply and

demand in the market for nonprofit executives (Eken, Ozturgut, and Craven, 2014).

Based on global dynamics within businesses, managers and leaders must make strategic

adjustments to compete and sustain organizations. The attention given to the topic of

aging workers has increased and become a central focus for organizations (Wang, 2015).

Leaders of NPOs still view the aging workforce adversely, which causes some leaders to

concentrate on the lack of experience by the new generations instead of on providing

solutions to overcome the decline of the mature generation of workers (1925 and 1945)

and the other group known as the baby boomers (1946 and 1964).

Research on leadership development extends back far more than a century

(Avolio, Reichard, Hannah, Walumbwa, & Chan, 2009). No leaders are the same, and

neither are their styles of leadership. Due to the constant changes in people and the work

environment, leaders should exhibit some ability to handle different situations and have

the mind-set of knowing how to approach situations. Leaders of NPOs who practice

leadership development are increasing their organization’s worth and sustainability (Galli

& Müller-Stewens, 2012).

Leaders of NPOs need to develop future leaders to provide vision and guidance to

sustain organizations. One of the characteristics of leadership development is someone

who can motivate teams, develop others, and develop leaders (Helmig, Ingerfurth, &

Pinz, 2014). Leadership development requires a return on investment. Research has

shown that NPO leaders located in the United States tend to spend less than 10%

focusing their time on developing their human capital (Mazzei, Flynn, & Haynie, 2016).

Leadership development is about facilitating relationships and improving

employee performance, but high turnover continues to be a problem (Mahdinezhad et al.,

2013). Developing the right people and having support in transition are important as the

workforce changes. Leadership development should involve focusing on developing and

defining expectations (Pauliene, 2013). The challenge is limited training opportunities for

leaders and managers of NPOs (Austin, Regan, Samples, Schwartz, & Carnochan, 2011)

due to scarce resources in an uncertain economy (Hailey & James, 2004).

Leadership development involves improving the quality of leaders and training

them for success (Groves, 2007). Approximately 87% of the increased employment in

NPOs between 2004 and 2014 was due to health care, education, and social services,

which is a primary focus of NPOs (Hopkins et al., 2014). The retirement of many NPO

leaders led to a leadership deficit because of the lack of succession planning and

leadership development of small business leaders. Researchers indicated that NPO

leaders would need to staff approximately 80,000 new senior leaders by 2016 due to the

changes (Bridgespan Group, 2012; Center for Creative Leadership, 2012).

Effective leadership development is necessary due to changes in organizational

structure (DeRue & Myers, 2014). The results of one survey showed that many

organizations have a lot of available talent (Amagoh, 2009) because the leaders in those

organizations integrate leadership development as part of the organizational culture,

which enhances leadership effectiveness. Organizational culture affects business success

(Khana & Afzalb, 2011) and the relationship between customers and organizations.

Assessing the skills and knowledge of those in leadership positions and assessing

what is necessary to improve performance is important (Josan, 2013). Furthermore,

assessing needs and proactively addressing those needs add viability to an organization.

Leaders need to be aware of unengaged employees and the ways they can influence

others adversely. Employees sometimes find the means to deviate from an organization’s

objectives without breaking any of its norms (Bryant & Higgins, 2010). Partnerships

between companies and staff can increase returns on investment (Davenport, 1999).

Finding individuals with the right talents and skills to make a business flourish is

important. Organizational leaders must know what to do with their talent to be successful

(Karimi, Malik, & Hussain, 2011). Training and development are keys to retaining talent,

ensuring succession planning, and maximizing profitability. Although many

organizational leaders are mindful of the cost to retrain, no organization can afford not to

train and develop its staff. Most employees want to do well, but do not know how to do

things or where to get the resources to assist them in their effort (Josan, 2013).

Management’s role throughout the training and transfer process is important. One

way to motivate employees is to inspire and energize the management and the staff to

increase performance and productivity (Pinho et al., 2014). Managers should make all

team members feel comfortable by introducing team-building exercises and opening lines

of communication and collaboration. Additional research is necessary to investigate

employee feelings in multicultural environments further (Boros, Meslec, Curseu, &

Emons, 2010).

Differences in education, culture, and other factors influence facility, supplier,

and employee perspectives on sustainability (Millar, Hind, & Magala, 2012).

Organizational culture and training and development programs have unbreakable links

(Kissack & Callahan, 2010). The culture of an organization molds and shapes these

programs, which in turn influences the organizational culture, as the programs do not

exist in a vacuum. Effective communication and collaboration among various segments

of an organization are necessary to address cultural differences and ensure everyone has

an adequate understanding and acceptance of coworkers’ cultural beliefs (Castaneda &

Bateh, 2013).

Integrating and planning for social risk factors is important in established

organizational costing and risk-management systems (Epstein, 2008). Employee

incentives and rewards are useful for improving corporate sustainability. Measurable

sustainability is also important. Leadership development should show that management is

successful within the organization and that return on investment demonstrates noticeable

changes in the individuals receiving training (Pilcher, 2012).

Organization Strategies for Succession Planning

Succession planning. Succession planning is a critical component of human

resources. Leadership succession planning has been a topic of concern in the private

sector since the 1980s (Zepeda, Bengtson, & Parylo, 2012). Successful organizations

withstand the challenges involved with replacing the leadership and continue moving

forward when faced with difficult situations (Conger & Fulmer, 2003). Succession

planning prepares organizational leaders to face future challenges and remain viable.

Such planning results in organizations having someone ready to step in should the need

arise.

Organizational strategy is another important factor of succession planning

(Quigley & Hambrick, 2012). Leadership succession is necessary for organizations

(Grosu & Coretchi, 2011). Previously identified future leaders facilitate succession

practices (Gothard & Austin, 2013; Kim, 2012; Zhang & Rajagopalan, 2010).

For organizations, characteristics and style of leaders form the way an organization will

operate (Kilkelly, 2014). Organization leaders must do an outstanding job in planning for

the future within organizations. Effective leaders observe employees and ensure

employees are able to ensure the future of an organization. Succession planning ensures

necessary human capital will be available when needed (Gandhi, 2014).

Due to the constantly changing work environment, organizational leaders must

focus on developing the leadership functions necessary for sustainability (Hayek, M.,

Williams, W. A., Jr., Taneja, S., & Salem, R. (2015). Organization leaders are

responsible for identifying the right subordinate as the successor. Succession planning

involves preparing new leaders to take over organizations after leaders leave (Florea,

Cheung, & Herndon, 2013). A national survey of 413 NPOs conducted by researchers at

Nonprofit HR (2014) indicated that 33% were operating with a succession plan in place,

while another 14% were in the implementation stage. Results from the study revealed that

leaders of one in three organizations had identified their new leader through succession

planning (

Thiessen, 2012).

Succession planning requires a central focus and an understanding of an

organization’s strategic direction (Flynn, 2014). Strategic guidance is necessary before

implementing and operating a succession planning process. Succession planning has

contributed to the success of many organizations, and a lack of succession planning can

have negative effects. The lack of succession planning in some NPOs leads to questions

regarding the viability of these organizations (Gothard & Austin, 2013). Formal

succession planning processes are rarely part of strategic planning in NPOs (Barten,

2012).

NPOs lack talent management practices globally (Datt & Riveria, 2013). Formal

succession planning should be a part of NPOs’ development and processes. However,

NPOs are often at a disadvantage, because succession planning is not a top priority. Many

NPOs do not have people available who are fully able to assume top posts (Walker,

2014). This is due to the many different reasons such as funding issues, time constraints

and issues with the selecting the most qualified candidate. An organization lack of focus

on succession planning could impact the organization and its development of human

capital.

Succession planning is essential for all organizations. Succession planning serves

the purpose of training and guiding both current and future leaders of many organizations

of all sizes (Kowalewski, Moretti, & McGee, 2011). Succession planning is essential for

maintaining successes, transferring organizational knowledge, building skills, and

continuing the mission of organizations (Braun, 2015). Succession planning is about

transitioning from older leaders to the new generation (Cater & Kidwell, 2014).

Succession planning is also about preparing for the future. As the boomers retire,

they leave behind vacant positions (Walker & Forbes, 2014). The leaders of many NPOs

are not ready when employees leave long-standing positions. Approximately 83% of 300

organization leaders who participated in one study failed to have any documented

succession plan in place (Cornelius et al., 2011). The sustainability of NPOs requires

forward thinking and the continuous recruitment of highly talented performers to fill key

positions.

Process of succession planning. Succession planning expands throughout

organizations by teaching leadership skills, effective communication skills, leadership

development, and other skills to engage employees (Gray, 2014). The dialogue on what

causes turnover and the need for succession can be unpleasant. Situations can happen that

are beyond anyone’s control, such as unexpected resignations, unexplained or unforeseen

deaths, planned retirements, or voluntary separations. A strategic and organized

succession plan leads to a better leadership transition (Prestia, Dyess, & Sherman, 2014).

Succession planning should be a part of the organization’s strategy and a

extension of the human resources department that is function of employee development

(Sharma & Sengupta, 2017). The process of succession planning starts with the human

resources as they should be tasked with all creating, developing succession planning

programs. As part of the strategic plan, succession planning is a core function that is

driven by strategies, training and development of employees that can negatively affect the

organizations training investment. Succession planning is a method of developing

employees and improving morale (Ognjenovic, 2015).

Many organizational leaders struggle to retain exceptional employees who have

the potential to achieve the desired organizational objectives (Sherman, 2014). One

reason for the struggle may be the lack of a mentor strategy. Mentoring involves

identifying potential future leaders and providing a training plan and career growth

opportunities for someone currently in an organization (Ognjenovic, 2015). Succession

planning is a developing tool that provides organizations with a talent pool.

An environment that does not have a focus on learning can have high employee

turnover because employees do not want a long-term commitment to the organization.

Research has shown that employee promotions from within lead to better retention results

(Gray, 2014). Placing unorganized employees in leadership roles could interrupt

organizations’ efforts toward success and negatively impact (Kleinsorge, 2010).

Organizational leaders need to avoid high employee turnover, morale issues,

underperforming employees, and the loss of generational knowledge (Bennett, Pitt, &

Price, 2012).

Employee turnover. Employee turnover can be harmful to any organization. The

loss of an employee also results in the loss of knowledge in an organization, which can be

detrimental to financial growth (Durst & Wilhelm, 2012). In a 2008 survey of employee

turnover in the nonprofit sector, 81% of respondents reported that their organizational

leaders were looking to fill a management or leadership position (Opportunity Knocks,

2008).

Employee perception of an organization is important (Shuck, Twyford, Reio, &

Shuck, 2014). Organizational leaders understand that employee turnover will happen, but

too much turnover can hurt an organization (Reh, 2014). Costs associated with employee

turnover are high due to the recruitment and training of new hires (Zhang, Fried, &

Griffeth, 2012). There is a global shortage of talented workers, and leaders in 34% of

companies are having a difficult time finding knowledgeable or appropriate talent to fill

open positions (Manpower Group Talent Shortage Survey, 2011).

How turnover affects the ability to move ahead within an organization remains

unknown. Adding happiness to the work environment is a good way to maximize

organizational productivity (Chaudhry & Shah, 2011), but happiness is an ephemeral

construct. Sustaining positive employee morale is essential for a productive, sustainable,

and available labor force (Asiyabi & Mirabi, 2012). High turnover seems to affect many

NPOs, mostly in areas that are hard to staff or when matching the job responsibilities

within the organization is not easy. One of the key ingredients to a successful NPO is the

executive leadership team (Froelich et al., 2011). Communication opens the door for

learning, learning is essential for businesses, and business leaders should have a

developmental program in place.

The leaders of most NPOs emphasize recruiting the best managers who are highly

educated, which results in a high turnover percentage for those organizations (Watson &

Abzug, 2005). Leaders of NPOs are at a disadvantage regarding staffing due to the types

of interested applicants and the lack of understanding of the industry. The leaders of

successful organizations focus on building a comprehensive set of leadership

development activities, as they support the diverse talent throughout their organization

(Amagoh, 2009).

Leaders tend to lay off highly trained employees at a lower rate than they lay off

new employees due to the benefits of human capital (Becker, 1993). Many leaders prefer

to invest more in human capital than in the general population of the organization

(Mincer, 1993). As long as an association exists among cost and human capital, training

and development, and succession planning, employee turnover will be a substantial cost

to organizations. A loss in revenue occurs when an employee leaves an organization

(Palanski, Avey, & Jiraporn, 2013).

The organization’s role. Succession is about the success of the organization, the

people, and the mission and about continuing in the future. Board members, as well as

executives and lower management, should support succession planning. Many NPO

board members lack enthusiasm regarding the importance of succession planning

(Groppe, Urbach, & Kutas, 2011). Executive leadership plays a major role in succession

planning for NPOs (Vetter, 2012). Both executive leaders and lower management levels

should have the same goals for staff development and the same continuity about

competence, production, and effectiveness maintained throughout an organization

(Wright, Stewart, & Moore, 2011).

The leaders of NPOs must have a plan in place for training, staffing, and

sustainability so that the NPO can survive (Klein & Salk, 2013). The leaders of any

organization who plan to increase their organizational success by competing with other

agencies should plan for the short and long term. Those who choose not to plan will more

than likely be reactive to the changes in the environment, society, staff, and industry

(Grau, 2014). Effective succession planning is about the present, future, and resistance

(Kalra & Gupta, 2014). Succession planning increases organizational leaders’ ability to

maintain an established workforce of employees ready for advancement should the need

arise (Brochhaus, 2004).

Leaders of NPOs can build their present and future operations from the blueprints

of competency models (McCallin & Frankson, 2010). These types of models define what

leadership skills and characteristics are necessary for different management positions.

The various types of models include business skills, development programs, job

challenges, cultural competencies, organizational knowledge, transformation of

knowledge, and organizational goals and missions (Dust et al., 2014).

Leaders of NPOs can also provide succession planning for employees in other

ways. Training and mentoring programs are successful ways of developing personnel.

For sustainability, NPO leaders must design, implement, and develop a succession plan

that will help grow the organization for the future (Aragón-Correa, Martín-Tapia, &

Hurtado-Torres, 2013). Those considered for development programs might be employees

at lower management levels (Hum, 2010). Working on group projects with experienced

employees, or with generation groups that will be phasing out, is good developmental

training (Succession Planning Team, 2011).

Organizational leaders can use succession planning to understand the importance

of maintaining key positions and of quickly filling vacancies (Gandhi & Kumar, 2014).

Succession planning involves a strategic approach for selecting an employee for the

process and some in-depth training. Succession planning involves preparing selected

employees to fill vacant positions when someone dies, retires, or leaves for other reasons.

Many U.S. companies are not able to withstand the changes in workforce demographics

and are unable to keep up with vacancies (Walker & Forbes, 2014).

Many NPO leaders are unfamiliar with succession planning, which leads to a lack

of understanding and a need to improve perceptions on the subject (Ahern, 2015).

Available information on succession planning indicates how executives and board

members’ decision-making influences the sustainability of an organization (Santora et al.,

2014, p. 16). Leaders of FPOs usually navigate succession planning through the bottom

line. In NPOs, the board of directors and leaders of other government groups that have a

stake in the organization fill higher positions (Zhang & Rajagopalan, 2010).

When considering a succession plan, mirroring the vision and strategic plan of the

organization is important. A link should exist between organizational culture and

succession planning, where there is a flow within the organization (Valentine, 2012). The

ability to retain, acquire, and share knowledge is essential to an organization’s

competitive advantage and is a good measurement of succession planning (Durst &

Edvardsson, 2012). Knowledge transfer or knowledge sharing does not necessarily

guarantee increased productivity or sustainability for an organization (Mäkeläa,

Andersson, & Seppälä, 2012). Sustainability involves mutual collaboration from

intellectual capital, transfer of knowledge, and succession planning (Durst & Wilhelm,

2012).

Another important factor in succession planning is the performance of leaders

(Garg & Van Weele, 2012). Performance transforms an organization either positively or

negatively. In addition to capital and technology, hiring the right talent is one of the most

important considerations that organizational leaders face (Hamid, 2013). Succession

planning ensures employees are available and ready when it is time to place them in

major executive or staff positions. Many leaders choose not to engage in succession

planning because they fear losing their positions, which can affect their performance

(Cairns, 2011).

Succession planning has a relationship with leadership development (Nieh &

McLean, 2011). Succession planning serves many purposes for organizations, such as

training and development, employee morale and motivation, and ways to reduce high

turnover (Nieh & McLean, 2011). Succession planning ensures someone will be ready to

take over should the need arise due to retirement and any unforeseen issues (Zepeda et

al., 2012). One purpose of succession planning is to prevent leaders from selecting

unqualified successors to take over. Organizational leaders who incorporate succession

planning increase employee morale and employee value and allow organizational change

to flow (Fibuch & Van Way, 2012).

Many organizations do not have a formal succession plan (Personnel Decisions

International Corporation, 2011). Succession planning is a systematic approach to

identifying a leadership pipeline, develop talent pools at all levels, and assess potential

(Couch, 2013). The successes and failures of an organization seem to have a relationship

with the strategy of succession planning. Organizations need succession planning to

continue in the present and future. Leaders of NPOs need to ensure all employees

understand the mission, value, and vision; how important the management styles are to

the organization; and how to advance through the organization (Crews & Richard, 2013).

Strategic planning. Strategic planning includes a vision for an organization and

the direction an organization should go. Leaders use the vision to spark motivation, to

keep the projects and changes aligned, as a filter to evaluate how the organization is

doing, and as a rationale for the changes that the organization will undergo. When a

vision is in place, members of an organization have a reason to succeed (Siciliano, 2006).

Organizational leaders involved in strategic planning focus on tasks to help achieve

desired results and evaluate an organization’s current state and future (Kotter, 1996).

Strategic planning is not perfect (Mintzberg, 1993). Factual evidence is still lacking in

proving that strategic planning improves employee performance (Poister, Pitts, &

Edwards, 2010).

The impact a strategic plan has on an NPO’s performance is significant as it

pertains to serving the needs of a community and helping organizational leaders manage

more efficiently (Hu, Kapucu, & O’Byrne, 2014). A strategic plan is necessary to

improve an organization's sustainability. Leaders of NPOs and FPOs both take strategic

planning seriously and use tools to increase performance and maximize profitability.

Regardless of an organization being an NPO or an FPO, strategic planning is vital to its

survival (Mosley, Maronick, & Katz, 2012). NPOs can benefit from strategic planning

(Kapucu, 2012). Leaders who create strategic management plans equip their

organizations with tools to compete with or outperform the competitors (Cordeiro, 2013).

Strategic planning often includes a guide for organization that explains the goals

of the company, how to attain the goals, how to make decisions, and how to allocate

funds and resources to pursue these aims. Strategic thinking involves contemplating how

a strategic plan comes together (Bryson, 2011). Strategic thinking is a psychological

development that includes processing organization needs, strategic analysis, strategic

planning, and strategic management (Aslani, Feizi, & Aslani, 2013).

The efforts of strategic planning can be time consuming and may cause an

increase in spending funds that many NPOs are lacking (McHatton, Bradshaw, Gallagher,

& Reeves, 2011). While attempting to recover from a difficult economic climate, the

leaders of many NPOs are struggling with the decline of charitable giving, providing

services, and maintaining volunteer services (Mosley et al., 2012). Strategic planning

must be a focus in every organization, as it serves as a guide for success and

sustainability (Abdalkrim, 2013). A sustainable organization offers goods and services

for consumers and generates revenue (Patzelt & Shepherd, 2011). The mainstay for

accomplishing business goals is to have a strategic business plan (Eddleston,

Kellermanns, Floyd, Crittenden, & Crittenden, 2013). Leaders of NPOs must be

confident that a strategic plan is in place and used to benefit the organization.

There is a need for NPO leaders to help their organizations become more efficient

in their efforts to plan and train for the future. Leaders of NPOs need to redefine their

purpose and mission (McDonald, 2007). Organizational leaders should focus on all

aspects of an organization while optimizing the use and effectiveness of all its resources

(Harrington, 2005, p. 107). To ensure future sustainability, pressure on NPO leaders to

achieve the best results in performance through development is increasing (Cairns,

Harris, Hutchison, & Tricker, 2005). Effective leadership can have the following effect

on the work environment (Chaudhry & Shah, 2011).

Training and development. Changes in the economy challenge NPO leaders to

increase their efficiency and competency while continuing to grant opportunities to

employees (Kearns, Bell, Deem, & McShane, 2014). It is not clear how human resource

practices affect specific organizational capabilities that contribute to improved firm

performance (Wright et al., 2011). Training is an indispensable tool for building people

and teams (Allan, 2008).

Developing talented individuals in a company involves more than just conveying

information to them (Brown & Eisenhardt, 1995) and more than teaching them a few

shortcuts along the way. Training and development mean supporting, coaching, and

guiding talented individuals. Development means getting people to implement the skills

and information they have learned to help them achieve goals for the organization they

serve. There might also be goals that they want to achieve as individuals (Goleman,

Boyatzis, & McKee, 2013). One of the purposes of training and development is to teach

and learn new skills (Robineau, Ohana, & Swaton, 2014).

Many learning environments exist in the business world. Employees often have a

choice on how they learn (Dunlap, 2015). The objective should be to learn, not to focus

on where they learn. Although the classroom is the most traditional place to learn, there

are other possible learning environments. For example, some group learning

environments have couches and chairs but no tables, which creates an intimate

environment to make the learners feel comfortable.

Training and development efforts are an investment for an organization. The

purpose must be in the best interest of the organization, as either a short-term or a long-

term process (Dunlap, 2015). The purpose of training employees is to teach them

something new to enhance their capabilities and experience. Training and development

support the transfer of training within an organization (Grossman & Salas, 2011).

Development is a term dedicated to the topics of organized or unorganized

leadership and employees, as well as different industry or work environments designed to

cultivate the skills of many different organizations’ employees. Development should

always maximize the potential and abilities of an organization (Mabey, 2013). If there is

accountability, there is implementation. Implementation creates new practices, flexibility,

and self-directed training. Managers will not always have to ask staff to receive training

because staff will begin to ask for opportunities to learn (Johnson, 2009).

Acquiring skills through training and development programs increases

employees’ ability to use the skills both personally and professionally. Effectively

communicating to staff the expectations of training and returns on investment is

important. Training is also important to the morale of an organization and can contribute

to organizational culture and the sustainability of a business (Shahzad et al., 2012).

Training should include development opportunities and improve employee retention. The

key to promoting a business’s worth is employee development (Mayo, 2000).

The workforce is changing because many employees are becoming eligible to

retire and aging out of positions. The way human resources practice will contribute to

preparing for change and to the types of development that will help high-functioning

employees to remain unknown (Kooij et al., 2013). After many years of small staffs,

reorganizing, and reengagement, organizational leaders have duplicated the same type of

process and caused employee exhaustion (Bartlett & Ghoshal, 2013). Training is essential

for organizational growth and development assists employees. One challenge facing

many human resources departments is recruiting and hiring advanced leaders that are

equipped

Some managers implement practices they learn in training, but the return on

investment is often low regarding what managers expect. Researchers have found that

training has only a small effect on the sales and revenue of organizations. One finding in

a business-training article indicated that many evaluations suffer from small sample sizes,

measure impacts only within 1 year of training, and experience problems with survey

attrition and measurement that limit the conclusions researchers can draw (McKenzie &

Woodruff, 2014).

Professional development is about organizational leaders investing resources in

human capital (Pilcher, 2012). Researchers have tried to understand the complexity of

leadership (Smith, Montagno, & Kuzmenko, 2004). There is an expectation as a leader to

contribute to social change (Burns, 1978). The components of developing talent

management include identifying talent, developing talent, and retaining and encouraging

talent (Hajimirarab, Nober, & Ghalambor, 2011). Knowledge is one of the most

important outcomes of talent management (Schuler, Jackson, & Tarique, 2011).

Human capital development. Human capital development is necessary for

organizational development and is related to succession planning (Kariuki & Ochiri,

2017; LeCounte et al., 2017). Human capital is the financial investment in people. There

a few categories that relate to human capital development such as the employee’s

potential, professional development, progression, motivation and commitment (Muda et

al., 2016). One of the positive results of human capital development is a return on

investment. Human capital development allows employees the opportunity to enhance

their skills (LeCounte, Prieto, & Simone, 2017).

Organizational leaders should invest resources in their employees, even if the

resources are minimal (Sherman, 2014). Human capital consists of growth and retention.

Leaders must develop a process to link training to performance goals for individuals

aligned with an organization’s goals (Acree-Hamann, 2016). The impact of human

capital needs to align within the strategy of an organization. Human capital creates a

competitive advantage for organizations.

Researchers believe that human capital are an organization’s most prized asset

and is worth organizational leaders expect returns on investment but cannot guarantee

them (Kariuki & Ochiri, 2017. Investing in human capital is one of the greatest decisions

an organization can make (Dillard, 2017). As long as continuous training is involved,

enhanced performance and providing the opportunity to transfer knowledge and skills.

Human capital is directly related to succession planning, as is, succession planning is an

investment that grows the human capital (Kariuki & Ochiri, 2017).

Considerations Unique to the Nonprofit Environment

Nonprofit organizations. NPOs are critical to the workforce in the United States

(Salamon, 2012). As the world economy continues to struggle, constant change in the

global business community will remain a reality (Chambers, 2013). NPOs are mission

driven and have a positive influence on others in the community (Kahnweiler, 2011). The

largest source of donations for NPOs is individual giving (Nonprofit Research

Collaborative, 2011). Leaders of NPOs depend on grants to fund their programs but can

no longer obtain grants and have only mediocre results, as they must show proficiency

and efficiency (Kearns et al., 2014).

Professional divides on the board of directors and the executive team can lead to a

shift in the mission, and the demise of services related to funding an organization

(Kearns, 2013, p. 273). Executive directors and staff members frequently face difficult

choices that involve right versus wrong. To maintain ethical integrity, NPO leaders need

a system for developing and sustaining ethical behavior and accountability (Hamilton &

Slatten, 2013). As an organization’s strategy evolves, managers need to create or modify

systems and structures to install and reinforce the kind of culture required to implement

the type of strategy selected (Gupta, 2011).

Many NPO leaders are hiring applicants with skills related to information systems

but with no management or supervisory skills. An entity’s primary mission is to

demonstrate its effectiveness in attracting resources and transforming them into valued

products or services (Keller, 2011). Even as leadership talent becomes scarce, many

organizational leaders are maximizing their investments in leadership development

(DeRue & Myers, 2014). The most crucial aspect of an organization is future leadership,

which affects the success and growth of an organization (Abolaji & Kolade, 2011).

Organizational culture. Organizational culture and leadership affect an

organization’s results (Hartnell, Kinicki, Lambert, Fugate, & Doyle, 2016).

Organizational culture and organizational strategy work together within an organization.

Organizational culture and leadership describe the naturally occurring activities, attitudes,

and behaviors in an organization (Fullan, 2014). Being able to fit in with the cultural

norms and mores adds to the challenges of finding leaders in a succession plan. The

development of culture, organization design, and human resource policies is necessary

for organizational leaders to create a sustainable competitive advantage (Caillier, 2014).

Organizational leaders encourage creativity, an environment of competitiveness and

performance, and a climate that supports change (Chiles, 2015).

Organizational culture plays a role in employees learning how to understand and

enjoy a work–life balance (Doh and Quigley, 2014). Understanding the origin, changes,

and effects of culture is one of the most important aspects of organizational research.

Organizational culture forms the experiences of an organization and affects people’s

interactions throughout the environment (Sethuraman & Suresh, 2014). The challenge in

all organizations is how to introduce the organizational culture to applicants throughout

the hiring process, relay information, and train new employees during the orientation

period. There is also a period of learning the culture and subcultures of the organization

and meeting the people who define the cultures (Miller, 2014).

Organizational change involves planning and development and includes the

behaviors and attitudes of the employees (Chiles, 2015). Organizations will experience

organizational change as part of their life cycle, often without warning. A majority of

NPOs are not ready when abrupt change happens, and such change often causes chaos

within organizations. Chaos occurs when the wrong person is in control, does not have a

strategy for moving forward, or lacks sustainability efforts. The three most important

areas of focus for sustainability efforts are people, proﬁt, and environment (Elkington,

1998).

Transition and Summary

Section 1 included a discussion of several aspects of this study including: (a)

foundation of the study, (b) the background of the problem, (c) a general and specific

statement of the problem, (d) the purpose statement, (e) the contextual nature of the

study, (f) the research question, and (g) the review of the literature. The lack of

succession planning in NPOs is an issue because these organizations often do not remain

sustainable when the current leadership changes. The literature review included topics on

NPOs, characteristics of leadership, strategy for leadership development, organization

strategies for succession planning, and considerations unique to the nonprofit

environment.

Section 2 includes a detailed discussion of the project. Topics of discussion in

Section 2 include purpose statement, role of the researcher, participants, method and

design, population and sampling, and ethical research. Other topics are data collection

and organization techniques, data analyses, and reliability and validity of the research

study.

Section 3 will include an introduction, brief summary of findings, presentation of

findings, application of professional practice and implications of social change. I will also

present recommendations for further study, reflections learned during the doctoral study

journey, and the conclusion of the doctoral study.

Section 2: The Project

Section 2 includes a discussion of the project. The discussion includes the purpose

statement, role of the researcher, participants, research method and design, population

sampling, and research ethics. The section also includes a discussion of data collection,

data organization techniques, data analysis techniques, reliability and validity, followed

by the transition and summary. Section 3 includes a brief overview of the study and a

presentation of the findings.

Purpose Statement

The purpose of this exploratory single case study was to explore strategies that

NPO leaders use to develop future generations and to prepare them for leadership roles

within organizations. The target population consisted of leaders in a NPO in Houston,

Texas, who have developed strategies for forming future leaders within their

organization. The implication for positive social change was the potential for NPO

leaders to create strategies that will provide future leaders to maintain their charitable

missions. Unlike FPOs, NPOs exist primarily to benefit society in a tangible way. Many

NPOs rely on donations, fund-raising, and grants to sustain their organizations. NPOs

operate in a competitive marketplace, and their leaders must find ways to stay viable in a

market of decreasing resources (Chandler, 2015). Strategies that will help NPOs develop

leaders will mean that fewer NPOs will fail, and these organizations will continue to

contribute to society.

Role of the Researcher

A researcher is the main instrument for collecting data in a qualitative study and

must maintain strict adherence to ethical guidelines (Yilmaz, 2013). In this role, the

researcher interviews participants, codes the data, identifies themes and patterns, draws

conclusions, identifies any potential source of bias and ensures that the information

presented is truthful (Yilmaz, 2013). An important role of the researcher is to uphold

ethical standards in regard to human participants to ensure reliability and to protect

participants’ identity (Yin, 2014). Ethical considerations and methods, presented in the

university’s guidelines and ethical principles outlined in the Belmont Report (Department

of Health, 2014) were followed. Ethical standards include (a) respect for persons, (b)

beneficence, and (c) justice (Belmont Report, 1974).

As the primary data collection instrument for this qualitative single case study, I

collected data via semistructured interviews with NPO leaders and reviewed company

documents that included succession planning documents and standard operating

procedures. I also identified themes and came to conclusions. I had no preexisting

affiliation with the participants.

The use of bracketing separates personal experiences, perceptions, morals, and

beliefs from the research data to mitigate bias (Yu et al., 2014). The bracketing methods

selected for this study included annotating preconceptions about NPOs, writing memos

during the data collection and analysis process, and adhering to journaling procedures.

Using a journaling process and keeping a detailed record of data collection, data analysis,

and data reporting are a means to eliminate personal bias (Tufford & Newman, 2012).

Researchers use the journaling process to focus on participants’ rich description of a

phenomenon and to obtain an accurate construct of the participants’ perspectives

(Tufford & Newman, 2012).

I was flexible in scheduling sessions and professional in obtaining information

from participants. The sessions took place during work hours when permitted or after

work hours in a private room in a location closest to the workplace. Most interviews

lasted longer than 30 minutes. The benefits of an interview protocol include the

following: (a) researchers have a guide to achieve a well-planned interview, (b)

researchers adhere to ethical guidelines, and (c) researchers collect relevant data (Jacob &

Furgerson, 2012).

The interview protocol (see Appendix A) consisted of a list of open-ended

questions that provided participants with the opportunity to discuss their thoughts freely.

Participants received an email message explaining the purpose of the study, requested

participation in the study, requested availability for interview times, and gave my contact

information. The interview protocol for this study is in the Appendix A.

Participants

In this exploratory single case study, I interviewed six NPO leaders involved with

leadership development and succession planning in their organization. The exploratory

single case study and participants met the study’s qualifications (Yilmaz, 2013; Yin,

2014). The managers who met the criteria were eligible to participate in the study. First,

participants must have possessed knowledge related to preparing future leaders in their

NPOs. Second, they must have held a leadership position within an NPO within the past

5 years. Third, the participants must have resided in Houston, Texas. The targeted

population consisted of leaders in a NPO in Houston, Texas, who developed strategies for

forming future leaders within their organization. I recruited six participants for the study.

Data were collected until saturation was met. As is the case in qualitative research

(Reybold, Lammert & Stribling, 2013), the choice of participants was purposeful.

After receiving approval from the Institution Review Board (IRB; approval

number

02-21-18-0326273)

, an Introductory Letter to the CEO of the organization was

submitted requesting permission to conduct a research study with its employees (see

Appendix B). I was responsible for safeguarding participants’ confidentiality during and

after the study was completed. As Morse & Coulehan (2014) noted, participant

confidentiality is important for maintaining trust. To build a rapport with participants, I

used words and actions to help make interviewees feel comfortable. I asked them to share

their experiences and allowed them to express their opinions for each research question

without interruptions.

Hawamdeh and Raigangar (2014) stated that a method to build relationships and

trust with participants is to explain the purpose of a study to them. All participants

received information on all aspects of the research study, including their value to the

study, the interview process, and the need to audio record the interviews. An open and

trustworthy environment for participants contributed to the quality of the study.

Signed consent forms remain locked in a file cabinet. As noted on the consent forms, all

information provided during the research study remained confidential; results were

anonymous with no personally identifiable information relating to individuals or

organizations.

Research Method and Design

Researchers categorize research methods in many different ways (Yin, 2014).

The three different types of methods are qualitative, quantitative, and mixed method

(Venkatesh,Brown, & Bala, 2013). To determine the research method and design, the

focus is on the research problem, purpose, and research question (Lim, 2014). The focus

of the research method and design in this qualitative single case study was to explore the

strategies NPO leaders use to develop human capital and future leaders of organizations

in Houston, Texas. The method and design provided awareness for the research question.

Research Method

The research method for this study was qualitative. The focus of a quantitative

study is on a postpositive worldview; establishing relationships; and uses numbers to

discover the relational, social, and cultural construction of variables (Lim, 2014), which

was not the intent for this study. A mixed method design is a more comprehensive

method that involves both qualitative and quantitative research (Penman-Aguilar, 2014). I

did not choose a mixed methods approach because it involved using a combination of

qualitative and quantitative approaches to understand a research problem. Time

constraints for the study was a factor in not choosing the mixed method. Researchers of

qualitative studies often use interviews, participant observation, audio recordings,

historical information, and other approaches (Simon, 2011).

When using the qualitative approach, researchers study individuals, groups, or

issues in depth in their natural setting, identify patterns and themes, and subsequently use

them as the focal point to analyze contextual data (Barnham, 2012; Yilmaz, 2013). I

planned to generate thick, rich descriptions rather than to report statistical data and to

explore the strategies NPO leaders use to develop future leaders and to conduct

succession planning.

Research Design

The research design selected for this study was an exploratory single case study.

A qualitative single case study is most useful when investigating a single phenomenon to

carry out a deeper exploration of the information gathered for a better understanding

(Kemparaj & Chavan, 2013). Conducting a research study requires careful planning. A

case study involves detecting and developing themes to answer a research question using

data obtained from participant interviews (Lukka, 2014).

The descriptive case study

research design should support the goals of the study, the data collection instruments, and

the data analysis (Yin, 2014).

A case study design involves an in-depth exploration of issues or problems of a

single participant, a time frame, or a group (Yin, 2014). To ensure a smooth transition of

leadership to the next generation of leaders, researchers should focus on leadership

development (Simoneaux & Stroud, 2014). One of the main characteristics of a case

study design is collecting data and information from within a natural environment and

free from external limitations (

Kemparaj & Chavan, 2013

Phenomenology, ethnography, and grounded theory were not suitable for this

study. The phenomenological design is a means to understand the lived experiences of

study participants to establish meaning (Chen & Deterding, 2013). The focus of this

study was the reality of succession planning in NPOs rather than perceptions of these

programs. The focus of an ethnographic study is culture, people, and the exploration of a

phenomenon within the community (Pietkiewicz & Smith, 2014). Grounded theory is a

systematic approach designed for developing theories and empirical evidence to reinforce

theories (Bateman, 2013); however, it was not my intentto explore strategies NPO

organizational leaders use to develop human capital and future leaders.

When selecting a study design, achieving data saturation was part of the process.

Data saturation refers to the process of collecting significant data from interviews,

analyzing if there are sufficient data received and determining whether the study sample

demonstrates validity (O’Reilly & Parker 2012). During this process, one cannot assume

that either a large sample size or a small sample size will guarantee that data saturation

will occur (Burmeister & Aitken, 2012). One way to reach data saturation is by asking

probing questions (Bernard, 2012). To reach data saturation, I was not looking solely at

the quantity of interviews but more on the quality of data received during the interviews.

I interviewed six participants. I made certain to interview enough participants to reach

data saturation.

Population and Sampling

The population for this exploratory single case study was 14 NPO leaders in

Harris County in Houston, Texas who have developed strategies to form future leaders in

their organization. Purposive sampling was the process for selecting participants who

have experienced the phenomenon and who could provide answers to the research

questions (Poulis, Poulis, & Plakoyiannaki, 2013). Researchers should select participants

for a study based on their position and experience with the organization and topic

(Cleary, Horsfall, & Hayter, 2014). Participants should have experiences, knowledge, and

expertise to provide an understanding of succession planning and to answer the research

questions (Humphrey, 2013). All upper-level managers, including CEOs and CFOs, were

part of the sample. I used face-to-face interviews to gather data from a minimum of six

participants. A review of the company’s succession planning strategies completed the

data collection.

I selected the participants based on purposive sampling. The purposive sampling

method was a nonprobability method of sampling; the researcher purposefully selects

participants who suit the purpose of the study (Wilson, 2014). The recommended sample

size for a case study was between two and six participants (Yin, 2012). The selection of

the participants in an exploratory single case study was an essential element to the study’s

validity (Robinson, 2014). The participants met the sampling criteria. It was also

important that participants were comfortable in the environment and during the interview

process. Sampling size differs depending on the research questions and design of the

study (Walker & Forbes, 2014).

In qualitative research, data saturation is a fundamental element in the selection of

participants (Cleary et al., 2014). Saturation is the point in the interview process where

the researcher ceases to identify new concepts (O’Reilly & Parker, 2013; Yu, Abdullah,

& Saat, 2014). A two-step process is an accepted method to obtain data saturation

(Francis et al, 2010). To apply this method, the researcher selects a minimum sample size

(based on the methodological literature) for initial analysis. For a case study, this is

usually between four and six interviews (Yin, 2014). I selected a minimum of six

participants. If data saturation is reached, then the second step involved two more

interviews. If no new ideas emerged, then I stopped interviewing at that point. If need be,

the second step was repeated until data saturation is met. To further ensure data

saturation, I used a technique discussed by Morse (1995). At the end of each interview, I

asked participants the following: Do I need to know anything other than what I have

asked to understand your succession planning?’ This was an additional method to ensure

that saturation was achieved and to ensure that nothing else was needed to be added to the

topic of interest.

Ethical Research

Research ethics is essential for protecting participants’ rights, safety, dignity, and

well-being (U.S. Department of Health and Human Services, 1979). In conducting ethical

research, participant selection needs to be fair, participants must consent to participate in

a study, and researchers must protect participants’ privacy and confidentiality (Yin,

2014). Ethical consideration is critical to any research project and happens in all research

locations (Merriam, 2002). This researcher will treat all those involved with respect in

accordance with Walden University’s IRB and American Psychological Association

guidelines (see Appendix B). There were no recognizable risks for participating in this

study. The supervisors participated in interviews and discussed their experiences as

supervisors.

Informed consent was part of the research process that informed potential

participants in a study about: a) the procedures used in the study, b) their rights as

participants, and c) the benefits and possibilities of their participation in the study (Nuez

& Nuez, 2007). Managers or employees might feel uncomfortable discussing the study

with the participants (Walden IRB, 2014). Participants signed an informed consent form

before participating in the study and were informed of their right to withdraw at any time

without any repercussions.

Based on information contained in the informed consent form, participants were

aware of the risks involved in taking part in the study and the actions selected to mitigate

the risks. Participants received the researcher’s contact information in the event they

would like to withdraw from the study or requested to see its results. Any participant

wanting to withdraw from the study before or after the interview has occurred, needed to

contact the interviewer by phone or email using the information included on the Informed

Consent document.

Participants received no incentives for participating in the study. There were no

repercussions if any participant decided to withdraw from the study. At the conclusion of

the study, all participants received a thank you note and an offer to receive a summary of

the study’s findings.

In accordance with the ethical procedures of the Belmont Report, researchers

must protect the privacy and confidentiality of participants (U. S. Department of Health

and Human Services, 2015). Data was stored on a password-protected computer hard

drive in a home library and will be shredded five years after the study’s completion. Each

participant was referenced with a coded pseudonym such as TEAM MEMBER 1 (TM1),

TM2, and so forth.

To ensure privacy and to protect the confidentiality of participants, I followed the

guidelines of the Belmont Report on ethical protocols. To ensure confidentiality, each

participant was recorded under a pseudonym. All necessary steps were taken to ensure

the safety and comfort of all participants, and no identifiers such as participants’ names,

emails, addresses, phone numbers, positions, or places of employment were released. All

electronic data was kept secure and password-protected. Participants were advised that

the data collected will remain secure on a flash drive in the researcher’s home for five

years, after which time the flash drive will be destroyed. The USB flash drive used for

securing information was password protected and placed in a locked storage cabinet with

limited access in the researcher’s home.

In accordance with university guidelines, approval was received from the

Institutional Review Board (IRB) before commencing with data collection. IRB approval

contained an expiration date, and researcher is aware that the research cannot extend

beyond the approval date. It was not necessary for work to extend beyond this date;

therefore, a continuation request was not submitted.

Data Collection

Instruments

In qualitative research, the inquirer is the main instrument in the data collecting

process (Wagstaff & Williams, 2014). This researcher was the primary data collection

instrument. Semi-structured interviews and archival data was the data collection

strategies for this exploratory single case study. The semi-structured interview is

appropriate as the primary data for a qualitative case study (Yin, 2012).

For this study, data collection methods included interviews and review of

company leadership training plans and succession planning documents. Interviews were

the primary source of data. A personal interview is the most efficient way of obtaining

the necessary data for most qualitative studies (Simon & Goes, 2013). A case study is

efficient when researchers try to determine why, how, what, and when certain events

transpired (Yin, 2013). A semi-structured interview provided an opportunity to probe

participants’ experiences for a more in-depth understanding. The interview protocol

assisted with consistency throughout the study (See Appendix A).

Participants received interview questions via the consent form (see Appendix B).

In qualitative research, interviewing is critical to the data collection process and requires

active listening and comprehension (Rowley, 2012). Semi- structured interviews allow

the researcher to explore further questions on subjects introduced by the interviewee

(Cachia & Millward, 2011). Procedures for qualitative data collection included

observations, interviews, and documents. Business documentation such as succession

planning, strategic plans and other documents evaluating and explicating the

organization’s succession plan also were reviewed.

Company documents analyzed included a buildup of documents from the previous

five years that explained the current and past promotions and developing an

organizational chart. Additional documents may include the following: a) training

paperwork, b) mentoring relationships, and c) succession planning. In a case study, all

evidence is of value to the study (Sinkovics, Penz, & Ghauri, 2008).

Semi-structured interviews and archival data were used for this exploratory single

case study. Participants answered open-ended questions relating to the level of succession

planning utilized at the interviewee’s location. If a succession plan existed, documents

verifying the plan and strategy were requested. It is understood that reviewed documents

will not always reflect the reality of what is occurring in the workplace; however,

reviewing the documents is a form of triangulating data.

To make certain the data collected for this study is thorough, reliability and

validity has to be established. Reliability relates to the consistency and repeatability of

the data source (Simon & Goes, 2013). To ensure repeatability, a copy of the interview

questions was completed and submitted to all participants before the interview session

(see Appendix C). Reliability reduces the chances of bias within the study. The

researcher’s responsibility to the study is to select the most reliable instrument.

To ensure validity of the qualitative study, the following must be assured: a) the

research question is valid for the projected outcome; b) the design is valid for the

methodology, and c) the chosen methodology relates to the research question (Leung,

2015). Member checking was a part of the study. This will ensure the study’s credibility,

findings, and interviewees’ conclusions (Hadi & Closs, 2016). Member checking

includes verifying spoken words with written transcripts of dialogue for accuracy

(Bygstad &Munkvold, 2007). It also includes the sequencing, consistency, and frequency

of those checks (periodic: before, during, and after) to bolster the study’s trustworthiness.

Member checking involves the process of checking with research participants to

determine whether the identified concepts and codes fit one’s personal experience

(Carlson, 2010).

Data Collection Technique

Data collection is an integral part of the research process for gathering

information to answer research questions (Pederson, Hack, McClemont, & Taylor-

Brown, 2013). Researchers use multiple sources of data for qualitative case studies (Yin,

2012). The lists of NPOs that were used for this study were obtained from United Way

Greater Houston. After receiving approval from the Walden University IRB, the process

of enrolling participants began. Interviews were conducted at a location and time

convenient to participants. Telephone interviews are an option to consider for qualitative

studies and participant convenience (Lechuga, 2012). When necessary, interviews were

conducted via telephone conference.

I conducted semi-structured interviews and asked open-ended questions by

following an interview protocol (see Appendix A). Analysis will continue throughout the

process. The data collection technique chosen for this study was face-to-face interviews

or telephone interviews, depending on the accessibility of the participants. For

consistency, the study involved asking every participant the same questions. Interviews

are one of the paramount sources of information for a case study and may be the most

important source available (Yin, 2003).

Steps involved in data collection techniques included making initial contact with

participants by telephone and email, scheduling and conducting the interview, and

recording and taking detailed notes of the interview process. These steps are in

accordance with suggestions made by Miller and Dorman (2014). Interviews took place

at a location identified by the participant after participant signed the consent form.

Interviews lasted between 30 and 45 minutes and took place in a private

conference room at participants’ places of business. Note taking is an effective way to

describe nonverbal communication and to collect information on behavioral observations

and impressions (Miller & Dorman, 2014). I used NVivo 8 software to manage and

analyze the data. An Olympus WS-823 voice recorder with 8 GB built-in memory was

used for recording interviews. All signed consent forms and data will remain in a locked

safe for a minimum of 5 years. This process is in accordance with recommendations

made by Junehag, Asplund, and Svedlund (2014).

The objective of the data collection process was to obtain perceptions and ideas

about lived experiences. By answering open-ended interview questions, participants

could elaborate on situations unique to them (Gysels, Shipman, & Higginson, 2008).

Research interviews are a traditional method of data collection that highlights the

assessment of lived experiences (Halcomb & Andrew, 2005). The interviews may

diverge from the intent of the study (Yin, 2014). Should this happen, the researcher will

gently guide the conversation back to the study’s focus. During interviews, clarification

of comments and statements may be needed for a better understanding. Depending on

where the participant is taking the call, background noise and weather may present an

issue during a telephone interview. Archival documents may present deficiencies.

Participants received a copy of their interview transcript to review and confirmed the

data’s accuracy. Member checking ensured the study’s trustworthiness. The member

checking process was a means to determine whether the findings were reasonable and

whether the themes uncovered appeared accurate and credible as recommended by Jeffers

(2014). The participants had an opportunity to provide feedback on the data analysis and

the transcription. This opportunity is in accord with a recommendation made by Koelsch

(2013).

The process for enhancing the reliability and validity of an instrument involves

designing a tool to ensure dependability and credibility (Morse, 2015). The composition

of the interview protocol design for collecting data to answer research questions is a vital

aspect of reliability (Bjerregaard, 2011). The questions in the instruments (see Appendix

C) were designed so participants could provide their perceptions and ideas of their

experiences with leadership development and succession planning. Participants need to

be able to ask questions about interviews and to provide feedback (Unluer, 2012). Data

saturation is a process of achieving credibility (Francis et al., 2010). The in-depth data

analysis and repeated review of the transcripts to reach saturation was a process to ensure

accurate descriptions or interpretations of the data.

Data Organization Techniques

The process for data organization involved obtaining digital voice recordings of

participants’ responses to interview questions, downloading audio interviews into a

password-protected computer, and transcribing interview responses verbatim into

Microsoft Word (Bevan, 2014). Organizing and managing the process of data

organization can be overwhelming (Watkins, 2012). To maintain a proper log for all

participant interviews, each audio file included a letter and a number. NVivo software

was suitable for organizing and analyzing the data

(Bazeley & Jackson, 2013).

A secure computer thumb drive served to preserve electronic records. The data

received from the interview must be transcribed, coded, and organized to help researchers

understand consistent themes (

Bazeley & Jackson, 2013

). Accordingly, downloading the

raw data after the interview helps with organization. The NVivo software provides many

different options for playback, including audio, video and use with social media (

Leech &

Onwuegbuzie, 2011

). Electronic data such as audio files and interview transcripts were

accessible only by password. Participants were advised that the collected data will remain

in the researcher’s home office on a secure external drive for five years, after which time

the external drive will be destroyed and discarded.

Data Analysis Technique

Data analysis is a systematic review of data elements involving data interpretation

to discover underlying meaning (Klassen et al., 2012). During this process, data coding

will include using a coding process to capture topics, experiences, and other key

information obtained during interviews. Qualitative data analysis software to analyze the

data in this study was used. Semi-structured interviews included predetermined questions

for probing. The participants’ responses to the interview questions were the primary

source for data analysis (See Appendix B).

Semi-structured interviews were the primary data source in this exploratory single

case study. Interview questions were examined based on responses given by the

participants. Researchers use methodological data triangulation to establish the quality

and rigor of a study with the application of multiple data sources (Yin, 2014).

Triangulation was suitable for data analysis for this exploratory single case study. In

addition to interview data, I analyzed succession plans and leadership program

documents. A five-stage data analysis process suggested by Yin (2014) was used as

follows: a) collect the data; b) separate the data into groupings; c) group the data into

themes; d) assess the material, and e) develop the conclusion.

After the interviews were completed, all information was analyzed to see how it

applied to the study. All documents suggesting succession planning were analyzed for

their value to the study. The process consisted of associating key themes identified in the

literature review as the foundation for sorting all data collected during the study (Johnson

and Campbell-Stephen, 2013). An overall data analysis on information collected from

interviews was performed. The process of categorizing and compiling data into

subgroups helps make the findings transferable to other settings (Yin, 2011b).

During the process of disassembling, codes were assigned based on the

component described in the literature review and placed in the appendix (Yin, 2011).

After completing the review of archival data and interviews, the analysis of data began.

The manual coding process started by reviewing the raw data and bracketing experiences

to eliminate biases (Yilmaz, 2013). Coding procedures will include highlighting

significant statements on the raw transcript and color coding statements to organize

statements into themes (Yin, 2013).

The next phase was to reassemble all that was disassembled in the last phase. A

codebook, NVivo software, and a research log were used to organize and track the

evidence to support the analysis of data. An Excel spreadsheet was used to maintain and

label emerging themes and patterns for analysis. During this process, data was evaluated

continuously to alleviate specific bias and patterns.

During this phase of the data analysis, an explanation of the facts was identified

based on the evidence found. NVivo software is a tool to organize, store, code, and

manage collected data to improve research dependability (Pfaff, Baxter, Jack, & Ploeg,

2014). The software facilitates the process of analyzing raw data gathered from the

interviews to identify clusters or themes based on participants’ experiences (Yilmaz,

2013). The researcher will need to highpoint and be able to explain specific issues during

this phase of the analysis (Carcary, 2011).

The results of this study have a central focus on the conceptual framework

relating to strategies that NPO leaders use to develop future generations and to prepare

them to assume leadership roles within the organization. The open-ended questions were

geared towards the participants’ answering the questions and supplying additional

information. Information on leadership characteristics and leaders’ skill sets is among the

data expecting to be collected.

Qualitative research brings about a substantial amount of data that researchers

must organize as follows: a) collect the data; b) separate the data into groupings; c) group

the data into themes; d) assess the material, and e) develop the conclusion (Yin, 2011).

The process to establish meaning from interview data involves coding participants’

statements into clusters of invariant constituents, single concepts, or ideas to develop

theme clusters (Stone, 2013).

All responses were treated with confidentiality and only the researcher will

perform the analysis and interpret the data. The name of participants and organizations

will not be mentioned or appear in the study. All key themes were compared and

contrasted with existing literature, and the findings were discussed in terms of the

question that guided the study and the conceptual framework that provided the foundation

for it as recommended by Johnson and Campbell-Stephens (2013). Key themes

developed during the interview process. Conclusions were drawn based upon the

emphasis participants place on specific events during the interview. This study will use

the coding and themes method (Miles, Huberman, & Saldana, 2013).

All responses were treated with confidentiality, and only the researcher performed

the analysis and interpreted the data. The name of participants and organizations were not

mentioned and did not appear in the study. All key themes were compared and contrasted

with existing literature, and the findings were discussed in terms of the question that

guided the study and the conceptual framework that provided the foundation for it as

recommended by Johnson and Campbell-Stephens (2013). Key themes were developed

during the interview process. Conclusions were drawn based upon the emphasis

participants placed on specific events during the interview. This study used the coding

and themes method (Miles, Huberman, & Saldana, 2013).

Reliability and Validity

Reliability

Maintaining all notes or observation and information submitted throughout the

data collection process will allow researchers to use the data for future studies (Ali &

Yusof, 2012). Qualitative researchers achieve reliability by assuring credibility,

transferability, dependability, and confirmability (Yin, 2014). The likelihood of

researchers to draw the same conclusion from a study is increased when the same data

and settings are used (

Merey, 2012).

The credibility of qualitative research depends on the depth to which the results

are believable and trustworthy (Yin, 2014). Researchers must have a variety of strategies

to ensure data credibility ((Pfaff, Baxter, Jack, & Ploeg, 2014); Moon et al, 2013). In this

study, credibility will occur through member checking, triangulation and the use of

reflective journaling.

In a qualitative study, dependability is an external validation that helps ensure the

findings of the study by other researchers that follow the same steps (Moon et al, 2013).

To establish dependability, an audit trail was used. This involves an examination of the

process and product to validate the data collected (Bowen, 2009). Independent

investigators can use the audit trail to retrace the procedures quickly in the event of

research replication. NVivo software is a tool to organize, store, code, and manage

collected data and improves research dependability (Pfaff, Baxter, Jack, & Ploeg, 2014).

NVivo helped manage and analyze the data collected in this study.

Strategies to mitigate threats to dependability include providing a rich description

of the methods of data gathering, analysis, and interpretation, thereby enhancing

replication (Cope, 2014). Participants received a copy of the transcribed notes, and

detailed interview notes were reviewed, thereby increasing the chances of reliability. I

used member checking to make certain the transcripts were accurate and that the

emerging themes were consistent with the participant’s intended description of the

experience as recommended by

Harvey (2014)

Transferability or portability of qualitative research refers to the extent to which

the findings apply to other contexts or settings to establish validity (Yin, 2012; Yilmaz,

2013; Morse, 2015).) Transferability was enhanced by acknowledging the assumptions

central to the study. The person who wishes to ‘transfer’ the results to a different context

is responsible for making the judgment of how applicable the transfer is.

Validity

In qualitative studies, validity is the degree to which a study supports anticipated

assumptions drawn from the outcomes of a researcher (Yin, 2012). In qualitative

research, the goal is to obtain creditability, confirmability, and transferability (Powell,

Hughes-Scholes, & Sharman, 2012; Morse, 2015). I documented all data collection

techniques used throughout this study.

In qualitative studies, credibility refers to internal validity and transferability to

external validity, and both are critical factors of research quality (Morse, 2015).

Interviewers ensure credibility by recording interviews, creating word-for-word

transcriptions, and allowing participants to review transcripts for accuracy (Patton, 2002).

Multiple data sources, triangulation of data, and member checking are elements of

credibility in case study research design (Thomas & Magilvy, 2011). Triangulating data

from multiple sources is a means to validate findings in qualitative studies (Yin, 2012). In

this study, in addition to interviews, I analyzed leadership development programs and

succession planning documents.

Member checking ensures credibility in the data analysis and coding process

(Marshall & Rossman, 2011). Member checking includes involving participants in

transcript review and verifying emerging themes and inferences by asking participants to

offer reasons denoted in patterns (Bygstad & Munkvold, 2007). Member checking

improves validation because it decreases the chance of misinterpreting data (Carlson,

2010). Using the member checking method will help establish credibility and decrease

internal threats to the study.

Accuracy of research findings is an element of confirmability; the findings are the

meaning of the participants’ experiences (Marshall & Rossman, 2011; Yin, 2012).

Objectivity in data accuracy is a necessity for confirmability (Elo, et al., 2014; Kemparaj

& Chavan, 2013). Confirmability means that the research findings are consistent with

standards and can be confirmed or corroborated by others (Houghton et al, 2013). .

Maintaining an audit strategy and providing information regarding the data collection

process allows for possible further research as recommended by Ali and Yusof (2012).

Confirmability is best achieved by an audit trail, and physical evidence that the research

did occur was provided so that the inquiry was verifiable. I achieved confirmability

through member checking and keeping an audit trail of the research findings.

Based on the rich details of data analysis, the findings are transferable across

other populations or settings (Zarshenas et al., 2014). To achieve transferability,

sufficient detail regarding selection of the research problem, research method and design,

purposive sampling, and data collection and analysis were provided. . This enables the

reader to decide whether the prevailing environment is similar to another situation with

which he or she is familiar and whether the findings can justifiably be applied to the other

(Whittemore, Chase, & Mandle, 2001). By describing the research framework and

assumptions focused on the research, the transferability will increase. The study’s

boundaries were clarified, such as the number of participants and organizations involved,

the data technique utilized, and the period to accumulate the data. To ensure

transferability of qualitative inquiry, my role was to provide a thick description of the

research process, data collection, and the final report, which may enable other researchers

to replicate the study.

To help increase transferability, data saturation was used. Data saturation is

significant when selecting participants for the study (Sinnott, Guinane, Whelton, &

Byrne, 2013). The two- step process to determine if data saturation has occurred was

used. To start the process, the researcher will select a small sample size from the

literature. I started with a sample size of six. If data saturation is determined, then step

two will involve two more interviews. Step two was repeated until data saturation was

met. The interviews ceased when no new themes were identified.

Transition and Summary

Section 2 is a discussion of the study project. The purpose of this exploratory

single case study was to explore strategies that some NPO leaders use to develop future

generation and to prepare them to assume leadership roles within the organization. The

role of the researcher is to function as the primary instrument for the data collection

process and to maintain strict adherence to ethical guidelines. NPO leaders were

interviewed, succession planning strategies explored, data was coded, and a search for

themes, patterns and conclusions was drawn from the analyses. Section 3 will include the

study’s findings. Included in this section were applications to professional practice,

implications for social change, recommendations for action and for further study. The

section will include a discussion of personal reflections, a summary, and research

conclusions.

Section 3: Application to Professional Practice and Implications for Change

Introduction

The purpose of this exploratory single case study was to explore strategies NPO

leaders use to develop future generations for leadership roles within the organization. To

understand the significance of succession planning and executive leadership for

nonprofits, I used seven open-ended semistructured interview questions with the

executive team and managers of an NPO in Houston, Texas. The population consisted of

NPO leaders in Houston, Texas. Participation was voluntary, and I informed each

participant of their right to withdraw from the study at any time without repercussions. I

also reviewed and analyzed the organization manuals, including the employee standard

operating procedures (SOP), organizational chart, employee handbook, and a

management-in-training course. The management-in-training course is considered the top

of the line training course for high-level executives and entry-level executives. The

certificate allows the recipient means to interview for open executive positions, training

at the summer and fall conferences, and Advanced Executive Management Training.

I researched effective strategies by interviewing four executive members and two

managers in the greater Houston, Texas area. Each participant expressed interest in the

subject of succession planning, and most had knowledge and experience in leadership

development. The next section contains the findings related to each theme and includes

data summaries. Interviews took place at settings where the participants felt comfortable

and could provide detailed responses to the questions without any distractions. Revealing

the names of the participants and the interview location would be a breach of

confidentiality of the participants and integrity of the study.

The findings revealed that the organization did not have a succession planning

procedure in place. While reviewing data, during the data analysis process, four themes

emerged: (a) the need for a formal succession plan, (b) barriers to succession planning,

planning. I include additional explanation of the emerging themes in the presentation of

findings.

Presentation of the Findings

The overarching research question was used to guide this qualitative single case

study: What strategies do NPO leaders use to develop future generation and prepare them

to assume leadership roles within the organization? The findings from the analysis

revealed that the organization did not have a formal succession plan. However, all

participants agreed that within the organization there is an informal procedure in place to

recruit midlevel and lower-level management. The study participants revealed their own

ambitions of advancement and desire to be a part of a formal succession plan.

Organizations may find themselves more equipped to develop future leaders when, and if,

there is a formal mentoring program in place (Corner, 2014).

I analyzed data by collecting archival data, preparing seven semistructured open-

ended interview questions (see Appendix A), and conducting interviews with

participants, allowing them the opportunity to share strategies they used, or plan to use,

for future leadership development and succession planning. Before the interviews started,

each participant reviewed, signed, and received a copy of the consent form. I conducted

semistructured interviews with four NPO executives and two managers and used

methodological triangulation of all my data sources. The intent was to discuss the

organization’s succession planning and leadership development opportunities. The

interviews lasted between 25 and 45 minutes, and all interviews took place in an isolated

office at the company location in Houston, Texas. After the completion of the interviews

and transcription, the interviewees were able to confirm the accuracy of the transcripts

and confirm that the developing themes were in accord with their experiences.

NVivo 11 software served as the tool to organize and manage the data for analysis

and, in conjunction with systems theory and a review of the related literature, four main

themes emerged that related to the strategies used for succession planning. The NVivo

11 software was helpful with coding and assisted in identifying recurring themes from the

interview records. Pseudonyms were used to ensure confidentiality and to protect

participants’ identity, and the interviewees were identified by code names as Staff

Member 1 SM1, SM2, SM3, SM4, SM5 and SM6 and the organization as DS (Diverse

Solutions).

Due to confidentiality, participants did not want to discuss certain aspects of the

organization and its staff. Particularly, there were concerns of executive leadership

finding out who made certain comments during the interviews and also the sharing of

certain information. Safeguarding participants’ responses during and after an interview

encourages confidentiality (Petrova, Dewing, & Camilleri, 2016). This is very important

for the protection of all parties involved in the study.

Table 1 depicts demographic information of each participant. All interviews were

digitally recorded and transcribed and resulted in 76 pages of written, meaningful

information for use in the study. The average number of years of experience for the

executive leadership participants who completed the interviews was 14.4. Even though a

great deal of data were collected during the interviews from participants, for purposes of

this study, age and gender were not disclosed due to confidentiality. As stated throughout

this process, the protection of the identity of all participants is very important; therefore,

no other personal information was collected or recorded that could identify participants.

The only information regarding participants was information collected during the

interviews.

Table 1

Demographic Data for Study Participants

Participant Position or title Years of business experience

SM1 Vice president of business development 15

SM2 Vice president of human resources 6

SM3 Chief financial officer 8

SM4 Chief executive officer 20

SM5 Director of human resources 8

SM6 Director of training & development 7

As noted in Table 1, participants represented different leadership positions within the

same organization.

Table 2 represents participant interview data. I listened to each digital recording

and compared it to the transcripts and notes taken during the interview. Each transcript

was reviewed three times. Notes were written to make sure nothing was missed during

review of the data.

Table 2

Participant Interview Data

Participant Date Time recorded Pages Word count

SM1 3/21/18 38:12 17 8,475

SM2 3/29/18 27:09 9 4,456

SM3 4/3/18 29:43 10 4,965

SM4 4/13/18 42:15 20 10,050

SM5 4/25/18 34:12 15 7,475

SM6 4/30/18 24:05 7 3,483

Note. Times for recording varied for each participant due to their rich description and or

those that provided less information.

During the interviews, information and documents were shared. These reviews

provided insight into the organization’s directions with mission, policy and procedures,

and investment in human capital. The organization’s emphasis was on the need for formal

succession planning and leadership development. The organization’s website provided

background information related to the history and mission statement. The mission of the

organization is creating value for staff members and service to the customer. DWS’s

impact is derived from the support of the community, fundraising, donors, the generosity

of the business partners, and the dedication of the staff members.

During the interviews, two of the six participants submitted documents, and three

of the six participants were interested in discussing their idea on succession planning and

the future of the organization. Due to confidentiality concerns, one participant did not

share much information pertaining to the problems the organization faced due to not

having a formal succession plan in place. Developing employee skills is a prerequisite for

succession planning and leadership development. As an organization cultivates, there is a

need to be more knowledgeable, and leaders should welcome the opportunity to develop

its human capital (Gandhi & Kumar, 2014).

SM1 presented the Standard Operating Procedures during the interview that we

both reviewed and discussed. The Standard Operating Procedures are processes outlined

for all employees to follow. SM1 pointed out that not all employees are able to review the

SOP, and many do not know that the SOP exists. Not knowing that the SOP exists can be

attributed to a lack of communication by management and the absence of copies at all

locations. What tends to happen is that management has attempted to hold employees

accountable with the progressive disciplinary process based on processes included;

however, without any knowledge of access, employees are unable to challenge perceived

injustices. According to SM1, there is not a formal succession plan in place; however,

this is something to be added within the next few months. SM1 hopes that when the plan

is enacted, it will be shared with all employees, along with the SOPs.

SM2 explained that the employee handbook and organizational chart includes a

promotion procedure. SM2 explained that vacant positions are not posted at each

location or communicated throughout the company, which prevents promotable

opportunities within the company. SM2 spoke very highly of the organization chart and

how in the previous 6 months, more positions have been created. With the creation of

more positions, the organizational chart expands the opportunity for more growth and

leadership positions.

SM3 did not present any documents during the interview. According to SM3,

things are going well, and there should be continued progress in the right direction. SM4

did not present any documents during the interview but spoke about some key

components of the development of the successor. Even though this is not a family

business, he thinks it would be good for someone who has devoted their time and has a

vast understanding of the mission and goals of the organization.

SM5 hesitated to present the succession chart due to lack of being able to explain

the inconsistencies that have transpired over the past few years. The succession chart was

shown, but I was not allowed to take a copy with me. A review of the chart confirmed

that there was a noticeable difference in the executive team statement of a proposed

succession plan in place compared to what was shown on paper. For example, previous

leadership positions such as vice president of operations, director of training &

development, and vice president of development remained vacant for over 2 years and

could have been filled internally.

SM5 explained that the organization was creating positions in a few departments;

this was good for the business and advancement opportunities. However, there were a

few positions that needed to be filled from within, but there seemed be no sense of

urgency. TM5 spoke about the need for a director of HR position, but felt the process of

promoting from within was not an option. She decided not to go any further with that

statement.

SM6 was accepted into the 18-month Development Program (DP) and expects to

complete the program in December 2019. SM6 was very excited about the program and

explained that no one else in the organization, in this city was selected for the program in

the previous three years. The DP was operational throughout all cities and countries

where the organization resided, and employees were selected by the executive team.

Based on reviewing some information I was shown during the interview, there were

approximately 15-20 others currently in the program, residing from different states.

The foundation of the Development Program was based on the current demands

of the environment including shifts in demographics, economy and technology, it is more

important for all leaders across the Diverse World Solutions (DWS) enterprise be familiar

with how to read and analyze financials. This program provides an opportunity for DP

alumni, SLP alumni, New CEO’s and other leaders to work in a collaborative and

engaging setting to learn the nuts and bolts of DWS financials and beyond. The program

also covers strategies on leadership, mission strategy, risk management, loss prevention

and financial turnaround (critical performance factors, board relations, insurance issues)

and real estate financing.

To promote confidentiality, documents with names and information relating to

salary, notes on advancement, and performance evaluations were not disclosed.

Documents containing cultural attributes, governance configuration and organizational

strategic plans were reviewed upon consent of DWS executive leadership to recognize

the patterns of succession planning and leadership development. Relevant documents are

necessary in Case Study inquiry (Yin, 2014). The review of documents allowed insight

into the lack of internal promotions vs external hiring and how the failure of succession

planning by the executive leadership team and board of directors. All participants

discussed that there was not a formal succession plan in place, but the leadership team is

working on to formalize a plan.

Table 4

Top Seven Frequently Occurring Words Related to Content and Context

No. Groups and keywords Theme n

1 Informal 4 21

2 Human capital 3 29

3 Promotion 3 12

4 Organizational strategy 2 18

5 Procedures 4 31

6 Succession planning 1 41

7 Leadership development 3 34

I conducted an analysis that included the top seven frequently occurring words

related to the themes word count. Participants keywords were taken from the interviews

and most of them were key in identifying the themes. The keywords located in Table 4

are words related to the themes. The ranking order of the keywords are not relevant.

Interview Questions

The seven semi-structured questions provided the ground work for obtaining the

data needed to answer the research questions and develop themes. These questions

centered around the specific ways that NPO’s and their leaders prepare themselves for

sustainability. The questions for the interview were:

Interview Question 1: What was included in your strategic plan for succession

planning? The purpose of this question was to create dialogue regarding if DWS had a

true formal succession plan in place and if the participants were familiar with the

strategic plan process.

Interview Question 2: How have you, as a business leader of an NPO, participated

in developing the future generation of leaders in your organization? The purpose of this

question was to initiate a dialogue during the open-ended semi structured questions

regarding the idea of training future leaders within their organization.

Interview Question 3: What processes has your organization used to find leaders?

The purpose of this question was to invoke discussion about the amount of participation

Interview Question 4: What were some of the effective processes used in your

organization for leadership development? The purpose of this question was to allow

participants to express the need for personal and professional development within the

organization. Participants could provide examples of specific professional and personal

development opportunities that the organization is using since they do not have a

distinguishable succession plan in place.

Interview Question 5: What factors were considered in the succession plans in

your organization? The purpose of this question allows participants the opportunity to

express what factors played a role in the succession plan or what was missing in the

decision of succession planning.

Interview Question 6: Please elaborate on strategies your organization might enact

to prepare future generations in assuming leadership roles within your organization? The

purpose of this question was to allow participants to describe what their opinion of what

strategies the organizations uses in staffing leadership positions within the organization.

Organizations that include employees in the development and implementation of new

change such as strategic plans have less issues with employees understanding the focus

and purpose.

Interview Question 7: What other information, if any, would you like to share

concerning how you find and develop leadership within your organization? The purpose

of this question was to invoke discussion about how the organization seeks out and

develops their internal human capital.

Theme 1: The Need to Adhere to a Formal Succession Plan

The first theme that developed was the need to adhere to a formal succession plan.

A formal, documented succession plan for the organization DWS does not exist. While a

formal succession plan is not in place, the organizations had different activities and

ongoing processes in place to plan for the successor in director positions, but not at the

CEO level. The organization has recognized the need for a formal planning for

succession for all executive and leadership positions, including: Chief Financial Officer,

Chief Operating Office, Vice-President of Operations, Vice-President of Human

Resources, Vice-President of Business Development, Director of Risk Management,

Director of Human Resources, Director of Operations, Director of Development, and

Director of Community Development and other positions underneath those positions. All

organizations, no matter how small or large, how profitable, need succession planning to

survive (Harrell, 2016).

All participants supported the idea of creating and supporting a leadership channel

for potential leaders. Three of the participants described the organizations current

leadership pipeline as weak. While the other three described what is considered a

networking list among other franchised executives. Participants SM1, SM2 and SM5

stated that the organization lacked depth, growth, development, structure and investment

in human capital. Participants SM3, SM4 and SM6 agreed that the five-year strategic

plan shapes what the organizations succession plan for future should look like. All

participants agreed that the Board of Directors involvement includes more of a

‘governing body’ than the ‘managing of organization’. Participants stated that succession

planning discussions with the Board of Directors has not happened within the last 18

months due to unforeseen issues with previous leaders.

There is a need for organizational structure, leadership development and for the

executive leadership team to strategically plan for the long-term. Succession Planning is a

subgroup of effective leadership development. The study revealed that the organization

was engaged in many different activities that included programs geared towards

leadership development, which caused many team members to relate those activities to

succession growth. Many organizations pride themselves activities that have to do with

development but are not that of succession planning (McKee & Froelich, 2016).

Throughout the interviews, the words of informal, human capital, leadership

development, promotion, organization strategy, succession planning and procedures

continued to repeat. The new VP of Business Development has started to focus on mid-

management and senior management succession planning. Creating a mentorship

amongst current leaders and those who were sought out is essential to the development of

the future leader (Muir, 2014).

All participants discussed the importance of the organization being transparent

with team members about the strategic plan and how does the plan align with succession

planning. This is in accord with effective business strategies (Malkie, 2014). Time spent

during the interview and observation of a growth and development meeting, were

important because it allowed the opportunity for participants to discuss succession

planning, leadership development opportunities, talent management, and organizational

structure.

Participants SM1 and SM2 discussed their experiences with the hiring process in

filling vacant executive positions. Participant SM1 explained how she asked the

interviewer about succession planning during the interview and was told that no formal

succession planning existed, but the individual was not ready to hold this position and

there was no one else available to fill either of the vacant positions SM1 expressed

concern that an organization of this magnitude lacked a leadership development program,

a vetting process and ways to seek out talent within the organization.

Theme 2: Removing Barriers to Maintain a Succession Plan

Barriers to maintain a succession plan includes not getting a program started or

starting a program that is not aligned with the strategic plan (Goldman, Scott, & Follman,

2015). Most of the data from this theme was evident from the lack of documents

regarding leadership development and succession planning. Each participant understood

that when the organization introduces new changes, that the change must happen,

regardless of the inherent value of the change. Leadership should understand that change

initiatives affect employees and employees’ effect how the change will take place.

Barriers to succession planning are common for many organizations. The issues range

from the lack of understanding on implementation, the lack of building human capital,

leaders not willing to step down and turn over the position and organization to someone

else.

Interviews. Participants SM1 and SM2 discussed their experience with the hiring

process and how they filled vacant executive positions when they were hired. Both

participants have a background in succession planning and understand the need to tap

into employees’ skills within the organization. The key ingredient to succession planning

did not start with the leadership nor was it pushed through all departments. Succession

planning was included in the five-year strategic plan but was not part of the daily culture.

The instability in the previous two years caused the organization to renege on some of the

promises made. This is a common consequence when a formal succession plan is not in

place (Vivian & Hormann, 2015). With the sudden change in leadership in 2016, the

organization was faced with finding a new leader for executive positions.

According to SM1, SM2 and SM5, nepotism was a part of the culture, and this

prevents having a fair opportunity at advancement. Three of the case study participants

stated that they believed that it is important for the organization to focus on leadership

development and focus on developing the human capital. While the other three remained

neutral in their comments regarding advancement opportunities within the organization.

SM3 expressed that the organization is moving in the right direction and that he

was promoted to his position and believed that succession planning was working in the

organization. SM5 stated that SM3 received a promotion eight years ago to CFO from

Vice-President of Finance due to his ‘connections.’ SM3 believed that because others

were not aware of the open position and not all promotions go through the HR

department that it did not meet the classification of succession planning.

SM4 has been with the organization for over 20 years and stated that he does not

plan to retire anytime soon. He made mention, that although a formal succession plan

does not exist, that subject of creating such a plan needs to be discussed sooner than

later. SM4 posited that many employees are so ambitious to learn that they receive all the

training needed from their supervisors and do not need any more training. SM1 believes

that investing in development, focus of the leadership, not able to track performance, and

financial resources was crucial to the lack of succession planning.

According to SM6, barriers to maintain a true succession plan within the

organization are due to the lack of the experience from the HR department and the

inability to grow the organization within the past couple of years. SM6 noted that 2015

and 2016, were difficult years and there was a need to make some significant changes to

the executive leadership team in order to be sustainable in the present future. SM6

explained: “I am not trying to make excuses, but our efforts to be successful have hinged

on our centers increasing the profitability in order to serve the community and clients in

the community programs, and not necessarily on leadership development.”

Theme 3: Leadership Development and Investing in Human Capital

Human capital is an investment for any organization. The knowledge obtained,

preserved and transferred is a benefit for the successor in a leadership role (Tunheim &

McLean, 2014). SM1 has been with the organization for 15 years. SM1 was hired on at

this location over a three years ago and has made significant change in leadership

development and succession planning throughout the whole company. SM2 was

trasnferred from another location and has made strides along with SM1 to set a standard

for growth, development and opportunity within the organization. For participants, SM3

and SM4, the successor for SM3 had been previously discussed with the board of

directors approximately five years ago. Many of the board members were concerned with

the ideas presented because the organization is not family owned. Therefore, SM3

brought SM6 on in an executive role under the leadership of SM1. SM5 declined to

comment on the successor information but did express their concern that there are other

staff members that need development and there is a need to invest more in future leaders.

A noteworthy change in timing was the exit of the previous executive position.

According to SM5: “Unfortunately, the vacant position was not due to retirement but due

to lack of execution and improvement. Due to not having anyone available and ready to

step in the position.” SM5 has to network with other executive leaders within national

ranks, so he is aware of how other branches operate. Professional Development is

important for the leader to employ in all departments within all organizations (Knight,

2014).

The organization in this study has managed through difficult times, economic

hardships, unexpected and experienced impactful change when the CEO left. SM1

explained that “nepotism started approximately two years ago when one of the executives

hired a family member and was placed in a key position within ten months of being

hired.” Of the six participants, four believed that nepotism had caused an adverse effect

within in the organization.

According to SM1, “The difficulty with staffing and promoting is that everyone

wants to lead but seems to lack the desire to receive proper training to do so. SM5 stated

that “Organizations need to spend more time on developing human capital and provide

training that will equip their future leaders for success”. Participants SM1, SM2, and

SM5 (100%) expressed that mentoring and leadership development were important

components of succession planning. Participant SM3 stated “he wishes he had someone

to mentor him before he had taken over after his father passed many years ago. I learned

the ins and outs of the business but to say I had a mentor that would not be true.”

Participant SM2 expressed how important it was for an organization to foster a presence

of diversity within the organization.

Many organizations only focus on top level succession planning (Dabke, 2016).

This is important, but it does not provide rest of the organization with an opportunity to

develop and reach its full potential. All participants believed that succession planning is

important to the organization, however; Participant SM3 believed that the organizations

successor practices is already in place should something happen.

During in-depth interview with participants, questions 1, 3, 4 and 5 were

answered. The response to questions 1, 3, 4 and 5, revealed participants experiences and a

deep understanding of how important it is to have a succession plan in place. Participants

SM1 and SM2 years of experience in developing a succession plan and implementing a

succession plan was interesting to hear. Both Participants explained that organizational

goals and mission is a priority. Also believed that implementing a succession plan would

benefit the organization and allow them to create a pool of individuals who would be

ready to lead when the opportunity present itself.

When SM3, was asked: What were some of the effective processes used in your

organization for leadership development? The response was “all processes should go

through the Human Resource department. People are in position to make things happen

and leadership development is for the executive leadership team. The responsibility falls

on the lower level managers to develop their subordinates and to promote or hire when

needed. SM3 further noted that “as an organization we have grown too fast over the past

10 years and never had an opportunity to focus on developing leadership as we should

have.”

Theme 4: Necessary Policy and Procedures for Succession Planning

The findings from this study suggest that the organization, DWS, is not prepared

for the shift in workplace dynamics and the rapid changes involving, retirement,

downsizing and decreased budgets. The participants discussed the importance of

organizational structure and the lack of formal procedures hampering the implementation

of a true succession plan. Participants stated that developing the organizations human

capital is very important and should be the start of a succession plan. Growing and

developing the next generation by expanding the organizations leadership pipeline was a

topic of discussion that was revealed during the interview process by participants SM1,

SM2 and SM5. SM1 stated that “future leaders need to know what to expect and what it

being an executive-level leader entails They need to have an opportunity to see what

leaders do and allowed to make mistakes in order to learn”.

Currently, DWS does not have a process for a formal succession planning. SM1

and SM2 stated that within the past year an informal succession plan process has been

implemented, which has provided the opportunity for 21 supervisor promotions and 4

senior level promotions. This was the first time in the organizations history that these

many promotions were administered in such a short period of time. There was no formal

training or education provided before the promotions were approved. The employees did

receive the proper training for the position after the promotions were finalized. Based on

statements made by participant SM2, there were also a total of six demotions due to poor

job performance and four terminations because of failure to follow company policies and

poor personal conduct.

Of the six participants in this study, five of them stated that Human Resource

handles the informal succession plan, promotions, demotions and terminations.

Participant SM1 created a spreadsheet that allows management and supervisors to enter

employees name and rate their performance, skills, readiness, development needs, and

knowledge and advancement opportunity. SM1 said “It’s not about having people…it’s

about having the right people, in the right place, at the right time”. The process allows

location managers and supervisors to announce the available position internally through

email, post the job description in all locations, interview for the position and make a

decision.

Succession planning is about having a strong pool of people ready to assist and

support the organization when needed. The strategies used to develop talent within the

organization should include succession plan mapping and support organizational culture

(Schuller et al., 2015). The process of succession plan mapping would allow the

organization to create a succession guide for every position, including competencies,

skills, ideologies, know-hows and distinctive personality traits to succeed in the position.

Succession planning is developing, training, mentoring and identifying key individuals

with the essential skills desired to advance to a senior level position within the

organization (Patidar et al., 2016).

The key to developing and implementing a formal succession plan is determining

to nurture a talent pipeline that aligns HR goals with organizational strategy and have an

organization that attracts external people for talent gaps. The fundamentals to providing

the necessary policies and procedures for succession planning is essential to structure of

the organization (Johnson, Pepper, Adkins, & Emejom, 2018). With policy and

procedures in place organizations can measure the success and failure of the process.

Succession planning also allows the organization to identify low experienced talent and

develop that employee. With policy and procedures, the organization has structure to

implement a formal succession plan (Santora, & Bozer, 2015).

Applications to Professional Practice

The purpose of this exploratory single case study was to explore strategies NPO

leaders use to develop future generations for leadership roles within the organization.

Previous studies described the importance of leadership succession planning (Jacobson &

Sowa, 2015). The findings of this study support previous research (Gray, 2014; Swensen

et al. 2016) to ensure the preparedness of leadership, executive leadership and

management team for succession planning purposes.

Succession planning is part of the leadership development platform for many

organizations. Leadership development strategies are essential factors of an organizations

strategic plan or human capital development to hire, fill, promote internally and maintain

leadership talent (Collins, 2013). Executive leadership readiness is critical to the stream

of business and assures all that there is a plan of succession. An organization that

implements effective succession planning strategies has insightful inferences to

sustainability and the continuance of the organization mission (Tebbe, Stewart, Hugues,

& Adams, 2017).

The discoveries and findings of this study contribute to the existing literature on

succession plan and leadership development. The information discovered from the

collecting data and analysis indicated a formal succession plan is missing from the

organizations core strategy. There is a need for all organizations, especially nonprofits, to

create a formal succession program and to ensure that employee skills, knowledge, and

development are identified (Cole & Harbour, 2015).

In theme one, the need to adhere to a Formal Succession plan, the participants

expressed the importance of everyone adhering to the same strategies for leadership

development; revamping the organizational culture and creating a culture where the

human capital is of paramount importance. Many participants expressed their concern for

the organizational leader’s lack of urgency to strengthen the leadership skills of

employees.

In support of theme two, Removing Barriers to maintain a Succession Plan, many

of the participants expressed their concern about not having a formal succession plan in

place. Succession plans and strategic reflect the organizations corporate plan (Cole &

Harbour, 2015). Out of the six participants interviewed, 64% believed that in order to be

consistent, everyone should be able to receive some type of training and development to

help each person reach their full potential and make advancements within the company.

The other 36% believed that the organizations were heading in the right direction and

would continue to revisit the strategic plan to make sure the organizations missions and

goal are aligned.

In theme three, Leadership development and investing in Human Capital,

participants expressed their concern regarding the entire work environment needs to be

onboard with the succession program. Organization leaders must ensure potential

successors have the required skills, involvement and knowledge to (Gohar et al., 2015).

Transfer of knowledge and training is essential for employee development and

continuous growth for the organization. Organizational leaders are responsible for

development of the human capital and to ensure success of the organizations mission.

The fourth theme, Necessary policy and procedures for Succession Planning,

there was a lack of consensus. Four participants believed that strategic goal of

implementing a succession plan was not clear. The other two stated that that strategic

goal of implementing a succession plan was clear and direct. This disparity is likely

attributed to the differences in personal experiences.

Two-way communication is significant when it comes communicating the

strategic plan of the organization. Organizational leaders have the responsibility to ensure

all departments and employees are aware of the strategic plan and as leaders that are

accountable to provide clear and precise information in order for their followers to

understand what direction the organization is headed. Of the six executive leaders and

managers interviewed, 100% believed that a formal succession plan and effective

leadership development were important for the organization.

The factors identified in the study may indicate leadership development has not

been a priority for the organization and developing human capital is not a high priority.

With the increased demands to remain competitive in the both NPO and FPO markets,

organizations should make sure they have strategic plans in place to develop the future

leaders. Succession planning is vital for NPO information gathering, sharing and

organization sustainability (Jacobson & Sowa, 2015).

Implications for Social Change

This study findings, conclusions, and recommendations may serve as a foundation

for positive social change. Many NPO’s are facing changes within the organization that

are creating more issues which will affect the financial and competitiveness of the

organization (Brunnson, 2015). A well-developed succession plan may increase

performance, productivity, job satisfaction, reduce turnover and advancement

opportunities. The implications for social change may also lead to developing high-

potential employees, possibly provide managers with highly-qualified candidates for

leadership roles and improve job satisfaction that will benefits the organization,

employees, community and other NPO’s. For NPO’s, a strategic approach to succession

planning might contribute to positive social change by increasing the stability and

profitability of an organization which will allow the organization to provide more

services for the community it serves.

Recommendations for Action

Research and business practitioners have explored various concept and strategies

assessing organizational requirements and for creating an environment that promotes

sustainability (Epstein & Buhovac, 2014). The target population consisted of leaders in a

NPO in Houston, Texas, who developed strategies for forming future leaders within their

organization. Case study approach have been used by many researchers in order to

examine why organizations have no formal succession plan in place. The findings of this

study offer NPO leaders an opportunity to consider the following recommendations for

implementing practices and procedures regarding succession planning. These

recommendations include: (a) creating and implementing a formal succession plan that

includes policies, procedures, and processes to retain, educate, train, develop personnel;

(b) creating a succession committee team to address the succession planning needs of the

organization; (c) a formal succession plan be considered, formed, communicated in a way

that ensures accountability, consistency and uniformity for all departments within the

organization; and (d) consider implementing a leadership development program with a

connection to the strategic and succession plan within the organization.

Recommendations for Further Research

This study focused on one nonprofit organization in the service sector in Houston,

Texas. Because this study was limited to Houston, Texas, I would recommend future

researchers conduct a similar study in another geographical area. I would also suggest

expanding the research to analyzing training and development programs, human capital,

and employee turnover. Conducting a study to conquer a deeper understanding of

nonprofit strategies may add to the depth of understanding required to assist nonprofit

leaders to overcome the continuous struggle for sustainability, leadership development

and succession planning.

Succession planning is a process that allows the organizational leaders to grow

and develop future leaders. My second recommendation is for future researchers to

conduct a similar study using other NPOs that have an effective strategy for developing

and focusing on their human capital. During the interviews, I discovered that many

leaders have their own ideas of developing human capital and how this affects the

organization. There needs to be a coherent plan that the organization follows. Next, I

would recommend that this study be extended to the rest of the organization employees.

By expanding the sample size, transferability will increase. Also, by increasing the

number of employees interviewed, the researcher may gain more knowledge on the

organization’s strategy and sustainability from the other viewpoints and add to the

generalizability of the findings.

Reflections

Reflecting on my experience while attending Walden University, I experienced a

range of different emotions and challenges. I believe that this journey has better prepared

me for the future challenges and success. In my first class at Walden, I was excited and

nervous at the same time. I was proud of myself for starting this journey because this was

something I had thought about doing for many years. There were times that I felt as if I

was not capable to complete this study and other times, I felt inspired by my parents,

family and friends to continue moving forward. Throughout the entire process, I

encountered many obstacles which made me feel as if I wanted to give up. After

returning from my first residency, my previous wife, the mother of my children, and was

on life-support, but she survived. This was a hard time for everyone, as I was trying to

stay ahead by working on assignments while sitting at the hospital and rehabilitation

facilities.

I was going through the process of attending class and doing the weekly

assignments but seemingly not moving anywhere. I gathered my thoughts and started to

head in the right direction and then I remarried, had a son born a few months later and

said good-bye to my mother all in the same day. The death of my mother took its toll on

me. Thanks to some good people supporting me but also knowing that my late mother

wanted me to finish helped me to push through the trials and tribulations. I made some

sacrifices and pushed myself to complete this journey.

My original thought process in conducting this qualitative case study was to build

my competence as a researcher while exploring business practice that could improve

leadership development, human capital value and succession planning. I learned that this

journey is not only about conducting research or being called Doctor Theus. The end

result is about pursuing my passion and being positive social influence in the

communities. This process involves transferring of knowledge, professional and personal

growth, and forwarding skills into practice.

In the development of my study, I learned the importance of attention to detail.

The advice I received from classmates and others who had completed this process was to

stay focused and follow the university guidelines. That message stayed with me with

great assistance from my committee chair. I became excited when my proposal made it to

the second committee member, and I struggled move forward, eventually she gave me

valuable feedback and I moved to the next level. I followed the same process and

celebrated each step. Analyzing data from the interviews and company documents

received, and the emergent themes aligned with the conceptual framework. The Walden

University doctoral study process was an experience to remember; humbling yet

gratifying,

Conclusion

The purpose of this qualitative single case study was to explore the Strategies for

Succession Planning and Leadership Training Development for NPOs. The qualitative

single case study included the views and experiences of six participants; four executive

staff and two leadership positions of this organization with no formal, but an informal

succession plan in place. There is a need for NPO leaders to develop future generations of

leaders and prepare them to assume leadership roles within the organization.

Leadership has a great deal to do with perception regarding where the

organization is and where it is heading. Leaders need to focus on being committed to

development of future talents, succession, and sustainability of the organization human

capital. If there is not a commitment to succession planning for the organization, there is

no investment in sustainability, human capital or the future of the organization.

Assignement introduction Leadership Training Develo.pdf

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