Is your culture built for outside talent?
— By Sheldon Morris
Is your culture built to bring in talent from outside your industry?
I ask because most nonprofit leadership teams I sit with cannot answer that question, and the ones who can usually cannot answer it well. Their governance documents do not ask it of them. Their hiring committees do not ask it of themselves. And it is the question, in my experience, that most reliably predicts whether a senior outside hire will thrive in the seat or leave inside eighteen months, carrying institutional knowledge no one else has the standing to replace.
The question matters more now than it did five years ago. The nonprofit sector is in a documented leadership crisis, particularly in the health and human-services subsector where I have spent much of my post-military career. Turnover runs at nineteen percent against roughly twelve percent in other sectors, two-thirds of chief executives have no written succession plan, and a 2024 Center for Effective Philanthropy survey found ninety-five percent of nonprofit leaders concerned about staff burnout.
That is not a hiring problem. It is a receiving-culture problem. Sectors under pressure eventually have to bring in talent formed elsewhere. Most believe they are prepared to do that. Fewer are.
“That is not a hiring problem. It is a receiving-culture problem.”
And the culture question is more layered than most organizations treat it as. Being prepared is not the same as being willing, and neither is the same as the specific work integration actually requires. Most treatments of the topic collapse these distinctions, and most organizations do too.
A distinction is worth drawing before going further. Setting aside medical retirement, which is a distinct category with its own considerations, there is a difference between a veteran and a military retiree. A veteran served from initial enlistment through some point short of twenty years and separated. A retiree served twenty years or more and drew a regular pension on the way out. The former is a talent pool. The latter is a leadership pool.
Take the retiree specifically: the senior noncommissioned officer, the field-grade officer, the colonel who ran a battalion or a brigade or a program office. That person arrives in a civilian role carrying twelve to thirty years of formal leadership development. That development is not incidental. It is structural.
What a nonprofit executive team spends a quarter escalating is often what a lieutenant colonel decided before lunch on a Tuesday in a place with no reliable electricity. That is not because the nonprofit team is unserious. It is because what is considerable to one culture is routine in another, and neither side usually sees the calibration it is working from.
So one might expect the sector, having identified a leadership pipeline problem, to have organized itself to absorb this population. It has not. Indeed's 2025 workforce survey found sixty-four percent of veterans with more than eleven years of service report feeling underemployed or underutilized in their civilian roles. For two out of every three of these leaders, the organization is not drawing on the experience and skills they bring.
That the sector could absorb them is not in doubt. Roughly one in five Lockheed Martin employees has a military connection, according to the company's own reporting, and its peers in defense contracting report similar or higher concentrations. This is not charity. Federal law requires them to establish annual veteran hiring benchmarks and demonstrate good-faith recruitment against them, and their customer is the military, so absorbing military talent is business necessity rather than choice. The receiving structure exists because the industry decided it needed to exist.
In the sectors that have not built the receiving structure, what shows up instead is a set of practices I have come to call whiteboard deep. Leadership development named on the strategic plan and absent from the calendar. Succession expectations declared in the annual report and unassigned in the operating rhythm. Onboarding for outside senior hires that ends the second week and never really begins.
I have watched succession plans die on whiteboards inside this sector, and I have watched senior military talent walk past those same whiteboards without either side recognizing what was there.
The responsibility runs both ways. What the organization brings to the crossing is preparation and willingness. Translation is what the outside talent brings. A retired Colonel who runs a nonprofit staff meeting the way they ran a battalion staff, giving direction where consensus was the norm and reading a peer as a subordinate, has failed a discipline the organization could not have taught them. Neither side gets to opt out.
The board is not innocent in this. If a board never asked whether the organization was prepared to receive outside talent, the executive team was never evaluated on building the receiving structure. Cultures do not accidentally become open to outside talent. They become open when someone at the level of governance decides they need to be.
The question is not really about veterans. Veterans are the sharpest case because the mismatch is the most visible there. But the military-retiree case is an illustration of the pattern, not the whole of it. Any senior hire whose formation happened outside your industry, whether from banking, from corporate operations, or from another sector of nonprofits, is subject to the same crossing, and the same set of failure modes when the culture on the receiving side is not equipped to hold them.
The question is about whether the culture you have built was built to absorb someone whose formation happened somewhere else. That means the hiring instincts, the promotion patterns, and the quiet assumptions about who succeeds in your organization and who does not.
The organizations that will come through the next decade well are the ones willing to ask the question honestly and to adjust what they find. So I will end where I began. Is your culture built to bring in talent from outside your industry?
If you are not sure, that is the answer.
Morris Consulting Group is an executive advisory and coaching firm. We counsel boards, chief executives, and senior leadership teams on governance, succession, and enterprise performance. Confidential inquiries are welcomed at inquiries@morrisconsultinggroup.org.