Originally published November 2006.

The Harlem Children’s Zone (HCZ), under the outstanding leadership of President/CEO Geoffrey Canada, is in the midst of an exciting period of growth. In the past decade alone, the organization has expanded significantly, while continuing to improve the services it delivers to the youth of Harlem. Since 2000, HCZ has increased its reach from 24 blocks in Harlem serving 6,100 youth, to 60 blocks serving 9,500 youth this year alone. This reflects a more than three-fold increase in the organization’s budget from $9.7 million to $36.7 million. Moving forward, HCZ plans to extend its programming to an unprecedented 100 blocks, and increase its service capacity by nearly 60% to serve 15,100 youth annually.

To further these goals, HCZ is embarking on a $100 million capital campaign to increase its total endowment value to $150 million. As of mid-October, HCZ is off to a strong start. That’s when the Starr Foundation made a record $25 million grant to HCZ—the largest grant that Starr has ever made to a human services organization. At the same time, HCZ’s board chair, Stanley Druckenmiller, pledged an additional $25 million while other board members promised a total of $7.5 million.

And to complement past EMCF investments in HCZ (which total nearly $16 million), the Foundation is investing an additional $5 million to help build HCZ’s staffing infrastructure. This work will encompass CEO and senior management team succession, human resources strategy development, and the development of an internal and external talent pipeline. The organization will also undertake a comprehensive evaluation to assess the effectiveness of its programming, becoming one of the first multi-service organizations in the country to do so.

We recently sat down with Canada to discuss HCZ’s future, and his thoughts on transition planning.

What prompted HCZ to undertake this leadership and talent development effort?

Canada : A number of HCZ’s senior leadership has been on board for 15-20 years, building the model and strategy you see today. As we contemplated the next phase of HCZ, we recognized that the real mark of success would be if HCZ could continue to produce positive outcomes for poor children for decades to come. Since many of us in senior management are part of the Baby Boomer generation that is looking towards retirement or other transitions within the next 10 years or so, we felt it was our responsibility to develop and train the next generation of leaders.

How do talented staff help HCZ meet its goals? 

Canada : HCZ has grown tremendously in size over the last 6-7 years. As a result, the senior management cannot personally know each member of our staff anymore. Therefore, we rely on leadership at every level to implement our strategies and motivate children and staff. One terrific pool of talent for HCZ has been our Peacemakers, who are Americorps interns. Since that is a very challenging job, true leaders quickly rise to the top. We have promoted the best of each Peacemaker class, and many of them are now leaders throughout the organization, including four out of seventeen of our program directors. They often epitomize the HCZ culture and work ethic and have helped us to expand our programs by replicating our culture at new sites.

How is HCZ tracking performance measurement for its staff? 

Canada : At the beginning of each year, program directors and their staff know the set of outcomes that they are responsible for achieving. They also understand that their compensation is based in part on meeting or exceeding these benchmarks. These outcomes include objective programmatic data such as attendance, test scores, and progress towards goals. Our Efforts to Outcomes database helps us track some of these goals.

How do you think nonprofits like HCZ can build talent internally? 

Canada : All organizations, including nonprofits, need job ladders for talented individuals. This helps to retain staff, build an agency culture and develop leaders. Training and education are also crucial. I make it clear to staff that in order to be eligible for certain positions, they need to earn specific degrees, whether it is a bachelors or a graduate degree. This motivates staff to develop their talents further through education, and helps to keep new ideas flowing throughout the agency.

Given all the demands that nonprofits face, what sorts of organizations should put a priority on talent and leadership development?

Canada : Any organization that anticipates a senior-level transition within 5-6 years definitely needs to focus intensely on this. However, strong people are the key to any successful organization, so it’s an area that every nonprofit needs to pay attention to.

Finally, succession planning isn't a topic that many organizations – for profit or nonprofit – consider. Why is it important for HCZ?

Canada : It’s funny; I've actually talked about this with Ken Chenault, CEO of American Express, who happens to be an old college friend. Companies like his plan for this meticulously, as they know how critical succession is for the future of the company. Like American Express, HCZ must be able to produce the same, if not better, results after the current leadership has moved on. At HCZ, this means we must anticipate our transitions and plan carefully for them so that the children and families we serve do not experience a decline in the quality of services.