Episode Summary: Episode 176 – How Do You Plan and Communicate About Leaving an Organization?
Podcast Title: The Smart Communications Podcast
Host/Author: Big Duck
Episode: 176
Release Date: December 11, 2024
Duration: Approximately 22 minutes
Introduction
In Episode 176 of The Smart Communications Podcast, Farrah Trim Peter, co-director and worker-owner at Big Duck, delves into the sensitive and critical topic of planning and communicating an exit from an organization. This episode features a reunion with Sarah Durham, the original host of the podcast and founder of Big Duck, who sold her company to the Big Duck team in 2021, transitioning it into a worker-owned cooperative. The conversation provides invaluable insights for nonprofit leaders contemplating succession planning, exit strategies, and effective communication during such transitions.
Sarah Durham’s Journey and Decision to Exit Big Duck
The episode opens with Farrah introducing Sarah Durham, highlighting her extensive background and contributions to Big Duck. Sarah, now leading Compton Durham LLC as an international coach, shares her motivations and thought process behind deciding to leave Big Duck after 27 years of stewardship.
Key Insights:
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Founder Syndrome Awareness: Sarah discusses the concept of founder syndrome, where founders struggle to let go and allow others to lead. She proactively set milestones to evaluate when it was time to transition leadership.
"I didn't want to have a career where I never left or where I turned into one of those founders who couldn't evolve, couldn't let go, couldn't let other people lead."
— Sarah Durham [02:05] -
Deliberate Career Chapters: From early on, Sarah envisioned her career in chapters, ensuring deliberate decisions to move on when her leadership in Big Duck reached a natural conclusion.
Risks and Rewards of Transitioning to a Worker-Owned Cooperative
Farrah and Sarah explore the significant risks and rewards associated with selling Big Duck to its employees, transforming it into a worker-owned cooperative.
Rewards Highlighted:
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Alignment with Progressive Values: Transitioning to a cooperative aligned with Sarah's progressive values, promoting a business model beyond traditional capitalism.
"Worker-owned cooperatives are for somebody with progressive values and maybe interested in business models that are not purely traditionally capitalist."
— Sarah Durham [04:07] -
Empowering Employees: The shift allowed employees to have ownership without the substantial financial investment typically required, fostering a sense of ownership and responsibility.
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Sustainable Leadership Transition: Ensuring the business thrived under collective ownership, with leaders emerging from within the team.
Risks Discussed:
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Financial Uncertainty: Unlike selling to an individual or another business, converting to a cooperative posed financial risks, as there was no single entity to hold accountable if the business faltered.
"If you were selling your business to private equity or to a company with very deep pockets, you'd probably make more money. That, of course, depends on the specific deal."
— Sarah Durham [04:07] -
Responsibility on Worker-Owners: Worker-owners had to embrace new leadership roles and responsibilities, which could be daunting and unfamiliar.
Three Years Later: Reflecting on Unexpected Rewards
Reflecting on the transition three years post-sale, Sarah shares unexpected rewards that emerged from the cooperative model.
Key Points:
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Observing from the Board: Serving on Big Duck's board allowed Sarah to witness the company's evolution without being in the day-to-day operations, providing a fulfilling, albeit more removed, role.
"One of the biggest rewards for me now, three years later, is being able to be much more in a backseat position and see other people leading, innovating and doing cool things."
— Sarah Durham [07:11] -
Confidence in Team Leadership: Sarah expresses satisfaction in the team’s ability to handle critical decisions effectively, exemplifying trust in the new leadership structure.
"The board members, who are all worker owners, really saw the complexity of these issues and really made some decisions that were in the best interest of the business and themselves in the long term."
— Sarah Durham [07:11] -
Personal Fulfillment: Drawing parallels to parenting, Sarah finds joy in seeing others thrive and lead successfully.
The Role of Trust in Succession and Transition
Trust emerges as a central theme in successful leadership transitions. Sarah emphasizes the importance of building and maintaining trust within the organization to facilitate smooth exits.
Key Insights:
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Building Trust Prior to Exit: Sarah underscores the necessity of establishing strong, trusting relationships with key stakeholders early on to ensure support during transitions.
"If you weren't on the bus, the bus was going to go off in the ditch."
— Sarah Durham [13:11] -
Phased Communication Approach: Effective communication involved phased internal announcements before making any external disclosures, ensuring that the team was prepared and supportive.
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Legacy of Trust with Clients and Partners: Maintaining robust relationships with clients and partners ensured continuity and confidence in Big Duck’s future post-transition.
Communicating an Exit: Strategies and Best Practices
Farrah steers the conversation toward practical strategies for effectively communicating an exit to various stakeholders, including clients, partners, and internal teams.
Strategies Discussed:
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Internal First: Begin communication internally with key team members and leadership before addressing the broader staff and external partners.
"The first phase was with you and with Elizabeth Rica, who were both really essential to the health and wellbeing and day to day operations of the company."
— Sarah Durham [13:11] -
Phased External Communication: Once internal teams are informed and supportive, develop a comprehensive external communication plan to announce the transition smoothly.
"We developed a communications plan and we did it in phases and actually found the external piece of it was really fast and smooth."
— Sarah Durham [13:11] -
Leverage Established Relationships: Utilize the trust and relationships built over years with clients and partners to ensure they remain confident in the organization’s continued excellence.
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Advance Notice: Publicly communicate the intention to leave well in advance to mitigate shock and foster a culture of transparency.
"I did kind of make it publicly known a long time before I left that at some point I did want to leave. And I think that was good because... it's less startling than when they think you're never going to leave and all of a sudden you're talking about leaving this year."
— Sarah Durham [13:11]
Advice for Leaders and Staff on Succession Planning
As the conversation progresses, Sarah offers actionable advice for leaders contemplating their own transitions and for staff members who wish to suggest succession planning to their leaders.
For Leaders:
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Define Personal Success: Understand and articulate what success means personally beyond traditional metrics.
"Success is liking what you do, liking how you do it, and liking who you are when you're doing it."
— Sarah Durham [09:45] -
Acknowledge Strengths and Limitations: Recognize personal strengths and areas where stepping back can benefit both the individual and the organization.
"Are you a builder? Are you an optimizer? Are you a problem solver? And how can you be useful in a way that's personally meaningful for you, but also productive for the company and not disruptive to the other people you work with?"
— Sarah Durham [09:45] -
Embrace the Opportunity for Others: Trust in the team's capability to lead and innovate without your constant presence.
For Staff:
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Gentle Initiation: Approach the topic delicately by sharing relevant resources, such as articles or podcasts, to initiate conversations about succession planning.
"Maybe send them a video or an article. Maybe share the podcast interview with Amy Sample Ward, or maybe even this podcast."
— Sarah Durham [20:27] -
Integrate Succession Planning into Organizational Culture: Normalize succession and contingency planning within the organization's framework, making it a standard practice rather than a sensitive subject.
"Bake succession and contingency planning into the fabric of your organization as a norm that everybody has to do it."
— Sarah Durham [20:27]
Conclusion
Episode 176 of The Smart Communications Podcast provides a comprehensive exploration of the intricate process of planning and communicating an exit from an organization. Through Sarah Durham’s candid reflections and strategic insights, nonprofit leaders gain valuable perspectives on balancing personal career chapters with organizational sustainability. The episode emphasizes the importance of trust, deliberate planning, and effective communication in ensuring seamless leadership transitions that honor both individual aspirations and the collective mission of the organization.
Notable Quotes for Reflection:
- "Success is liking what you do, liking how you do it, and liking who you are when you're doing it." — Sarah Durham [09:45]
- "If you weren't on the bus, the bus was going to go off in the ditch." — Sarah Durham [13:11]
- "It's a gift to be able to see the business that you've created move into the hands of the many rather than the few." — Sarah Durham [04:07]
For more insights and resources on nonprofit communications and leadership transitions, visit Big Duck’s website and connect with Sarah Durham on LinkedIn.
