Many of us have been there — or at least know of a situation like this. The specifics of how and why the founder had out-stayed his effectiveness really don't matter. The crux of the issue was what to do.
Folks who really mean well and seek to do good work staff most nonprofits. They really do. They may have even given exemplary service or provided a singular vision — past tense. Because of this, there is often a great reluctance to confront a situation that has gone south and make the hard choice.
The difficult option is, of course, to remove the executive who has now become an impediment to the fulfillment of the organization's mission. I unabashedly assert the need for this whenever the delivery of the mission and the impact of the organization in the community it serves begins to suffer.
Such a choice is made far easier if the organization has a history of clearly understanding the role of its donors. Donors are the investors in a charitable organization. By extension — and specifically in the policy governance model — they are its owners.
The board's role is to keep faith with the investors while being true to the organization's mission. Donors make gifts to see their personal values and visions realized. They do not make investments simply to provide employment or to further the dreams and values of others.
When these dynamics are understood, the likelihood of confusing sentiment and loyalty with keeping faith with the vision becomes a lot less likely.
As you would expect, there was a lot of emotion tied up in the particular situation — among everyone. There was even the threat of legal action should the board remove the executive.
My role was to examine the details, define the options open to the board and let them make the choice. Fortunately, they made the correct one.

An internationally recognized philanthropy and fundraising thought leader, Larry C. Johnson trains the staff and volunteers of worthy causes to achieve real impact through the creation of reliable, growing revenue streams. He emphasizes principles before methods as the key to long-lasting success. He stresses the simple, the practical and the joyful.
Larry is the founder of The Eight Principles, the premier brand for educational products and services in relational fundraising and philanthropy. The Eight Principles provides digital education, live workshops and structured coaching to nonprofit organizations.
Author of the award-winning book, "The Eight Principles of Sustainable Fundraising," AFP named Larry Outstanding Development Executive in 2010. The Wall Street Business Network ranks him in the Top 15 Fundraising Consultants in the USA. Larry is a graduate of Yale University. Larry speaks widely and serves on numerous nonprofit and corporate boards, including The Philanthropy Council of The Carter Center, the philanthropy of the 39th President of the U.S.