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How to tackle founder's syndrome and support charity CEO succession

What is 'founder syndrome'? 

‘Founder’s syndrome’ or ‘founderitis’ is a well-documented condition within, and outside of, the charity sector. It describes the challenges that can arise when an organisation’s founder is no longer the best person to lead the organisation as it grows, and there are insufficient systems in place to support a transition to other forms of leadership.

Founders play an essential role in setting the vision and mission of an organisation and providing the driving force and creative energy behind its early years. However, the skills and attributes needed to set an organisation on its early path are not the same ones that are needed to maintain an organisation over time. When founders struggle to step away at the right time, or when organisations become over-dependent on the vision and decisions of their founder, other challenges can start to set in. 

The challenges

Through CAF’s recent study on charity resilience, we saw that the effects of founder’s syndrome can persist long after an organisation’s founding member has left. As part of the research, we interviewed a range of charity CEOs, many of whom spoke about challenging beginnings to their leadership journeys. 

“The first two years were hell”, one CEO told us when asked to summarise her journey as the leader of an addiction rehabilitation charity. Speaking about her first year in the job, the CEO of a modern slavery charity shared, “People had no idea how difficult it was”. Both leaders had stepped into roles previously held by  founders.

The first years in charge of an organisation can be tough and, as our research shows, changes in leadership can affect the whole team. In our survey of over 700 charity CEOs, those who started less than two years ago were three times more likely to say that they did not have a strong or collaborative team compared to CEOs who had been in the job longer.

Our qualitative research also revealed that initial hurdles like these can be further intensified when new leaders are taking over from founders. One CEO said, “Previously it was very much that the charity was the founder, the founder was the mission, and the mission was the passion of the founder – and that’s not the way I work.”

Others described the damaging after-effects of founder’s syndrome, including issues such as charities stuck in ‘limbo’ for years, breakdowns in personal relationships after founders experienced burnout, and months spent “cleaning up messes [made by the founder], not out of malice, but out of exhaustion and out of defensiveness”. Multiple CEOs emphasised that these issues are widespread in the charity sector.

So, what happens when you need to pass the baton to a new leader? 

 

Solutions to help tackle founder syndrome 

The transition from being ‘founder-led’ to ‘founder-inspired’ can be tricky to navigate but it can also be an opportunity to breath fresh life into the leadership of an organisation. While challenges can certainly arise, through our research we also learned that these early roadblocks do not need to be permanent. Many of the leaders we talked to told us their situations had improved over time. Based on their insights, and those of other CEOs, here are some thoughts we have on ensuring a smooth transition for both the new leader and the charity.

1. For founders 

If you are a founder, it is important that you recognise when it is time for you to step down to help you avoid burnout and create capacity for a deliberate and well-planned handover. Many leaders found speaking with a coach or mentor useful, enabling greater self-reflection and improved well-being. Research by Stanford Social Review recommends that you remain at your organisation in an extended role to support the team while they transition under their new leadership.

2. For new leaders

As a new leader, your preparation will be invaluable. This includes getting to know your new team and community before you start, alongside opening space to learn and ask questions. The CEOs we surveyed were also able to navigate early difficulties by committing to a clear and well communicated mission, even if that meant clarifying their organisation’s pre-existing goals. Alongside this, some found advice from membership bodies, partners in the sector and board members useful in challenging times.

3. For Boards 

Boards can take a strategic role by encouraging founders to create succession plans, building support networks and recruiting effectively. Taking time to build a strong relationship with their organisation’s new leader is also essential. Examples of good practice include arranging one-to-ones with Trustees or setting up office-hours to provide assistance and advice when needed. As part of this, Boards can strengthen organisational unity by reinforcing the charity’s mission while remaining open to change.

Change can be difficult to be drive from the inside, so another effective approach can be to enlist support from an external partner who can facilitate the process from the perspective of a critical friend. This kind of investment can help founders, incoming CEOs, senior leaders and board members to navigate this transition and avoid some of the pitfalls we have described above.

Conclusion

While often difficult, a change in charity leadership can be managed successfully with preparation and support. At CAF, we offer resources to help you navigate these critical periods effectively. By taking proactive steps, such as preparing succession plans, fostering collaborative teams, and promoting the charity’s mission, your organisation can overcome founder’s syndrome and set the stage for long-term success.