Capstone Research Report Submitted in Partial Fulfillment Master ...

Capstone Research Stakeholder Model for Leadership Succession: Identifying Founder's Syndrome and Succession Strategies

by Erin Rene' Nelson ernelson@dons.usfca.edu

Capstone Research Report Submitted in Partial Fulfillment of the Requirements for the Degree of Master Nonprofit Administration School of Management

University of San Francisco Spring 2017

Abstract

The purpose of this capstone project is to explore using the stakeholder approach for assessing an organization for founder's syndrome and providing recommendations for founder succession. This research is based on the premise that if the key stakeholders are connected to the organization's mission, brand (story) and services it will improve the outcome of the founder's succession. The study provides an examination of the stakeholders' attachment to and perceived value from the organization, and the perception of the organization's mission. The descriptive research approach was applied, using observational and survey techniques. The research used semi-structured interviews, along with a cross-sectional survey research design. The survey questionnaire included quantitative data to depict an integral stakeholder group's (members/donors) attachment to the organization. The main findings reveal that the member/donors' attachment is first to the network that is provided by membership to the Policy Advisory Board, the donating arm of the organization. It also revealed that those interviewed have an ardent attachment to the founder suggesting founder's syndrome. All stakeholders are aligned with the organization's mission of research and education. However, they do not have a clear understanding of the functions of the organization.

Acknowledgments

This research was supported by the Fisher Center for Real Estate & Urban Economics. I would like to thank Ken Rosen and Christopher Palmer for this opportunity and hope the findings will be helpful for future decision making.

I would like to express my sincere appreciation to the MNA professors at University of San Francisco, in particular Marco Tavanti. His dedication, passion and compassion touched my heart and his teachings launched me towards my destiny.

Without the support of my husband, cohort, family and friends this project and my degree would not have been possible. Much gratitude is owed to Jennifer Damico Murphy for her pearls of wisdom throughout this research and Alison Brown for her unending encouragement.

Thank you everyone for being on this journey with me and helping me become the person I am today.

Table of Contents

List of Tables ..................................................................................................................... iii List of Figures .................................................................................................................... iv Section 1. Introduction.........................................................................................................1

Background ....................................................................................................................1 Statement of the Problem...............................................................................................2 Specific Objectives ........................................................................................................3 Scope of Study ...............................................................................................................4 Section 2: Literature Review ...............................................................................................4 The History of the Stakeholder Theory and Models......................................................4 The Distinguishing Characteristics of a Stakeholder Approach ....................................8 Merging the Stakeholder Theory with Other Theories ................................................11 Understanding Founder's Syndrome ...........................................................................14 Arthur Andersen ? A Case Study in Founder's Syndrome..........................................17 Succession Process for Founders .................................................................................20 Section 3: Methods and Approaches..................................................................................26 Research Questions ......................................................................................................26 Research Design...........................................................................................................26 Population & Sampling Design ...................................................................................26 Data Collection Methods .............................................................................................27 Data Analysis Methods ................................................................................................28

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Section 4. Data Analysis ....................................................................................................29 Gender of Respondents and Total Membership...........................................................29 Years of Membership (Donating) ................................................................................30 Member Title ...............................................................................................................31 Membership Industry ...................................................................................................33 Member Attachment ....................................................................................................34 The Top Reasons For Being a Member (donor) ..........................................................35 Stakeholder Perspective on the Mission and Values of the Organization ...................40 Membership Secondary Discovery ..............................................................................43

Section 5. Conclusions and Recommendations .................................................................48 Conclusion ...................................................................................................................45 Recommendations ........................................................................................................46

List of References ..............................................................................................................48 Appendix A: Interview Summary Analysis.......................................................................53 Author's Bio.......................................................................................................................56

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