Founder transitions are costly and risky, and grantees need support.  Founders, board members, and consultants are all likely to contact funders at the early stages of a possible transition to get a sense of their openness to the founder staying on after stepping down as CEO.

After funders suspend their initial assumptions about the prospect of a founder staying on, they should consider asking the grantees and themselves some probing questions:

• What is the compelling organizational imperative for the founder to stay?  Is there one?

• Has the board developed - or are they intending to develop - a transition plan with the mechanisms and processes to address and implement the major success factors identified in this study?

• If the founder was the prime mover behind the transition plan, has the board done extensive due diligence on that plan, and are they strong enough to say "no" if the plan is not sound?

• Do the founder, potential successor (if one has been identified), the organization, and the board exhibit the characteristics necessary for a Mutual Success transition?

• If I, as a funder, support this transition, how do I manage my relationship with the new successor and/or board members?

• What would be the best way to support the transition?  Some ideas for financial support include coaching for the founder, successor, or both; compensation and benefits for the founder to stay or leave if adequate retirement benefits haven't already been provided; and consulting services to help plan and execute the transition.

Download the report to help you explore these key questions and deepen your understanding of how other organizations have implemented this model.