C-Suite Transitions: How to go from Panic to Planning

Transcription

1 C-Suite Transitions: How to go from Panic to Planning Presented by: Jim Zaniello, FASAE, Vetted Solutions Suzanne Berry, MBA, CAE, Berry 2 and Associates Specialists in Executive Search Washington, DC VettedSolutions.com

2 The Essential Work of the Board Three Plans the Board needs to have in place and review regularly: 1 Strategic Plan: to serve during a transition as a guide for decision making 2 Succession Plan: to outline how the association will identify its needs in a new leader and conduct the search and hiring process. 3 Transition Plan: to detail the practical matters of the outgoing CEO s exit, transferring duties and maintaining operations, and onboarding the new executive

3 Succession Planning is identified as important, but not enough is being done 73% of HR executives view identifying tomorrow s leaders to mitigate against loss of critical talent = the biggest threat to their business in the next 12 months. 90% of those executives note an increase in the urgency to identify and develop future leaders. And only 38% are confident they have the right talent to drive business success. HR Leadership Survey, Loudhouse and Lumesse (Sept. 2015) 63% of senior corporate leaders do not know if they have a leadership pipeline or don t actively plan for what their leadership should look like. Senior Management Research Study, Penna (Aug. 2015) 31% of companies have no CEO successor identified. 31% provide no formal preparation or training for an identified CEO successor. Yet more than 50% expect a new CEO candidate to step up for the top job within 6 months CEO Succession Planning Survey, Vardis and AlixPartners (Dec. 2015) Nearly 70% of nonprofits lack a formal senior leadership succession plan Nonprofit Employment Trends Survey

4 Succession Planning has Real Value to All Organizations Mitigate Transition Risks Develop Strategic Market Advantage Benefit from Maturation and Choice

5 The Essential Work of the Board 1 All Job Descriptions must be up to date 2 Strategic Plan- Vision, Mission and Goals clearly communicated 3 The Annual Operational Plan must be tied to the Annual Budget 4 Stakeholder relationships are actively managed 5 The existence of a robust Annual Performance Review process and Professional Development Program 6 An Annual Board Self- Assessment process 7 Continual External Scanning Process of the membership and industry/profession

6 Articulate your People/Talent Strategy? Are we communicating a consistent message around our employment proposition? Do our current competencies align with our business strategy? Are we selecting and developing people against the competencies that will drive our business? Are we able to track performance and development? Can we readily identify candidate for key positions from across the organizations? Are we attracting and retaining the diversity we need to achieve strategy?

7 A Systematic Approach to Succession Planning Selection process and Onboarding Assesing Developing Reviewing Select and Communicate Talent Meetings Assessment Assessment and Feedback Plans for Individuals Select & Build Cohesive Project Team- Action Learning Talent Management Steeting Committee Presentations Individual and Group Learning Events Presentations / Communications to Executives Talent Management Steeting Committee Presentations Program/Project Management/Measurement

8 Important Components in Exit/Transition Plans 1 Priority functions of the position 2 Plans in the event of a sudden temporary or permanent departure a. Number 2 person to step in? Interim? b. Authority and restrictions c. Compensation d. Responsibility and role of board e. Communications Plan 3 Plans in the event of a planned permanent departure a. Need for in interim (from within) or external b. Responsibility of board 4 Timeline/milestones for key activities

9 Exit/Transition Plans should not go on the shelf 1 Annual review process of the Plan: assign responsiblity 2 Retention of Plan: who and where 3 Update Key Information and Internal Contact Inventory a. Nonprofit status documentation. b. Financial information c. Key vendors: auditor, bank, investments, legal counsel, insurance information

10 RESOURCES Eben Harrell, Succession Planning: What the Research Says, Business Review (December 2016) Jennifer B. Briggs, CAE, Succession Planning: It s Not Just for Your Board Anymore, ASAE website-tag: CEO Succession Andre Mamprin, Next in Line: Five Steps for Successful; Succession Planning, ASAE website- Tag: CEO Succession, Knowledge Management Byron Johnson, Jeanne Bell and Paola Cubias, Reflections on Executive Leadership and Transition Data over Fifteen Years, Nonprofit Quarterly, March 27, 2017 Juan Pablo Gongalez and Kate Richardson, A Succession-Planning Roadmap, ASAE website Libbie Landles-Cobb, Kirk Kramer and Katie Smith Milway, The Nonprofit Leadership Development Deficit, Stanford Social Innovation Review, October 22, 2015 Joe Rominiecki, Navigate your Next CEO Departure, Associations Now July/August Used work done by Chris McEntee and Cynthia Mills Work done by Dr. Marilyn Buckner, PhD and Lynn Slavenski, PhD at NTS, Inc. The Bridgespan Group website- various articles on succession planning