The Path to CEO of a Social Enterprise

by Manda Salls

Is becoming CEO of a nonprofit the right fit for you? Do you have what it takes to follow a non-traditional career path?

The challenges inherent in leading a less traditional organization were on the minds of the "Charting the Path to CEO of a Social Enterprise" panel at the 2005 Social Enterprise Conference, held March 5th at Harvard Business School.

Much of the session was driven by audience questions, which focused on three major themes: the path to a CEO position, money, and lessons learned along the way.

The path to CEO
Panelists were asked, "What has helped you get to your position as CEO?" And, "What has helped you to be successful in your role?"

"Be comfortable with being a generalist," advised Kristin McSwain, executive director of the Massachusetts Service Alliance. People often feel they need to focus on one thing or become an expert at something to succeed, she said. The downside is the potential to lose sight of the entire landscape you operate in. To be an effective CEO, you need the breadth to understand many functions within the organization. By being a generalist, she explained, you can put things together in unique ways.

"I didn't really plot a path," she said. "For me it has been about networks." She encouraged aspiring CEOs to meet with people on an information-gathering basis, and to develop strong mentors in their organizations.

Sacha Litman, principal consultant and founder of Measuring Success, offered three pieces of advice to chart your own path:

• Have a vision that compliments your own personal choices. "Marry your personal passions with your professional desires."
• Piece together your experiences. "Combine the elements [of your life] into a cohesive story. There must be some reason you made the choices you've made. Find some nugget that carries through."
• Build authority for yourself. "Many of you probably have great ideas," Litman said. "One of the challenges can be to get people to hear your ideas. Think about things you can do to build authority for yourself. Write an article, speak at conferences, and build networks."

Panelist Dan Cardinali, president of Communities in Schools, shared a philosophy that he came to during his early career working with nonprofits in Latin America. "Think of community as a circle. Most of us reside at the center of that circle…On the periphery there is a vantage point on the whole that you can't get to when you are in the middle. It is extremely important that personally, and as an organization, you move back and forth from the center to the periphery."

A question of money
"How do you deal with making less money and the uncertainty of working in a nonprofit environment?" audience members asked. According to the panelists, it takes soul-searching and an understanding of what motivates you.

"If money and salary are where you get your identity and status within the community, that's okay, but you have to be honest with yourself," said Cardinali. "You need to resolve that on your own terms."

You also need to know how you deal with the unknown. "Fear of failure is probably the single biggest impediment," Cardinali continued. "How you deal with failure is an important question. What I have done, smart or not, is [to] put myself in positions where I am under-skilled for what I have to do."

Although that sounds counter-intuitive, he said, putting yourself in such a position forces you to survive, forces you to minimize your fears, and ultimately maximizes your chances of attaining your goal.

"Risk is huge," added Litman. "You see friends going to these big companies…. I think we get conditioned through our educational experiences to think, 'stay with the big institutions.' You have this institution whose shoulders you're standing on. You need the courage to jump off. The landing pad is not as harsh as you would think."

The bottom line is that you should be excited about your work, he said.

"You can still make money in this sector," Cardinali said. "There are great jobs out there."

Lessons learned
Panelists were asked to impart wisdom from their own experiences. What skills are most important? What mistakes have they made?

In terms of utilizing skills, Cardinali stressed that the ability to develop strategy is the most important element to work on. Some nonprofits consider just doing good work as the measure of success. But nonprofit leaders need to focus on strategy—take the time, energy, and discipline to figure out the best thing to do.

"In terms of the CEO role, the hard part is taking time from the day-to-day operations," said Cardinali. "Make sure you take time to ask the right questions. Don't settle for open-ended responses."

He also warned against becoming too removed from the daily activities and struggles of the people you are trying to help. "Sometimes you need to go back into the community you are serving, back to where the work is being lived."

McSwain shared the importance of the opportunities and education she received at Harvard's Kennedy School of Government. "It was an opportunity to sit next to the ex-President of Mexico, and if I wanted to talk to him, all I had to do was go up and initiate a conversation."

Another challenge is remembering that "it is not all about you," said McSwain. She encouraged aspiring CEOs to keep a broader eye on the organization.

"Remember you are building on the work of others. Look for points for expansion, and ways to get people engaged and involved in the work you are doing."

She went on to remind the audience that the work will continue once they leave. Succession planning is a step she sees many CEOs missing. "What are you doing to cultivate the person who will replace you?" she asked. They need to participate, or everything you've accomplished could be lost. "It is very easy to forget," she said.

Manda Salls is the Web editor for Baker Library.