Sustainable Leadership through Succession Planning

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1 MARCH 2018 Sustainable Leadership through Succession Planning 33 Liberty Street Montpelier, Vermont Jim Morris

2 Sustainable Leadership through Succession Planning Overview of Succession Planning Leadership transitions occur in every organization for any number of reasons, both planned and unplanned. These transitions are transformational and offer a powerful opportunity to strengthen the organization if a thoughtful plan is in place. But transitions that are poorly planned or managed can bring on a crisis, leading to decreased effectiveness and even to organizational failure. Before we look at the planning process, consider the benefits of succession planning: An organization with an emergency succession plan in place is prepared for an unplanned leadership transition. Succession planning allows the board of directors and the leadership team to step back and look with fresh eyes at the organization s leadership needs, taking into account the longrange strategic plan. Succession planning ensures that a pipeline of strong and capable leaders exists with individuals ready to take on more significant leadership roles as needed. Succession planning builds stronger teams throughout the organization. It molds individual visions into a shared one. It aligns efforts toward common goals by clarifying relationships and work flows. Succession planning and associated leadership development activities are a powerful retention tool. Potential successors understand their value to the organization and appreciate the investments being made in their career development. There are two types of succession plans: 1. An Emergency Succession Plan provides a road map to guide the board and leadership team through an unplanned leadership transition. 2. A Long-Term Succession Plan articulates a long-range view of staff leadership in the organization that drives leadership development. This plan provides the framework for a seamless transition. Emergency Succession Planning Process The Emergency Succession planning process is informed by a series of questions that guide the board and staff in the event of an unplanned leadership transition. The plan is developed by staff with input and final approval by the board of directors. At a minimum, the plan should: Clarify primary responsibilities for all key positions. Identify interim leaders to fill leadership positions in the event of an unplanned transition. Guide communications with important stakeholders. Outline lines of authority and individual responsibilities for implementing the plan. 33 Liberty Street Montpelier, Vermont

3 Long-Term Succession Planning Process There are five steps in creating a Long-Term Succession plan: 1. Align succession and strategic planning 2. Define the job(s) 3. Identify and develop internal candidates 4. Identify and develop external candidates 5. Make selection and manage transition 1. Align succession and strategic planning Before any decisions can be made about what type of leader an organization will need down the road, an analysis should be completed to identify existing trends, organizational capacity, and anticipated future needs. Consider: The most significant challenges the organization and sector are likely to face over the next four to six years. The organizational structure needed to carry out the mission. The executive competencies and experience required for future leadership of the organization. Only rarely will future opportunities and challenges require the same skills that worked in the past. Thoughtful analysis and research will help prevent the organization s current leaders from simply looking for a clone of the incumbent. This important first step lays the groundwork for the rest of the planning process and will foster a stronger commitment to the succession process itself. 2. Define the Job(s) An important component of the Long-Term Succession plan is the success profile. This profile should detail the minimum education, experience, and competencies required for success in the position. It should also define areas of responsibility and expectations for performance in those areas. 3. Identify and Develop Internal Candidates The heart of any effective succession planning process is a leadership assessment that identifies promising internal candidates from the pool of current staff and board members. These are emerging leaders who could be ready to fill a vacancy within two to four years if appropriate investments are made in their professional development. The board of directors leads the process of identifying internal candidates for the top executive role, and the top executive leads the process for all other leadership positions. Board members and senior staff typically make initial recommendations. These candidates are then assessed against the appropriate success profile. Interviews and 360-degree reviews can be helpful tools in the assessment process. Page 2

4 Once the pool of candidates is finalized, the next step is to put in place an individual development plan for each person that ensures he or she will be ready to lead within two to four years. Delaying development puts the organization at risk for shaky leadership after the transition or even a leadership gap if a new leader needs to be recruited. To be sure, much can be done in a few years to develop an executive candidate s leadership potential, including rotations in different functional areas, international assignments, exposure to the board, and cross-functional learning projects. Success hinges on mutual commitment to a robust development plan that is reviewed and updated every six months or so. 4. Identify and Develop External Candidates Organizations rarely have the luxury of hiring a successor well in advance of a planned transition. However, it is not wise to wait until succession is imminent to begin an external scan for candidates. That should be an ongoing process, with the goal of having at least two viable potential successors engaged as the transition approaches. When organizations approach succession planning proactively, they can take advantage of the considerable lead time to cultivate a rising star. Ideally, the organization can recruit the potential successor with sufficient lead time to observe them in action in another lead role. The ability to cultivate promising leaders well in advance can make the difference between success and failure. 5. Make Selection and Manage Transition Once a successor has been selected, efforts to make the transition successful should begin immediately after the offer is accepted. Those responsible for the transition can ensure its success by: Connecting the new leader with board members and key staff to build or strengthen relationships Facilitating the handing over, taking over process by creating time for the outgoing leader to orient and transfer knowledge to the incoming leader, particularly around organizational culture and norms Creating opportunities for the successor to learn about the capacities and talents of the management team Roles in Succession Planning The board of directors, the CEO, and members of the leadership team have a specific role to play in succession planning: Page 3

5 Stakeholder Role(s) Primary Duties Board of Directors Executive Director / CEO Leadership Team Develop a robust leadership pipeline. Identify at least one potential successor within the organization. Help define desired leadership skills and competencies based on the organization s current and future needs. Requirements for Successful Succession Planning Oversee the process Guide discussion around the vision of the organization s future and needed leadership competencies Provide input into the process Share insights into the current state and strategies of the organization, and make predictions about future trends Provide an objective view of internal candidates Provide input into the process As appropriate, engage in personal development per the Strategic Succession Plan Leadership. It is essential to find experienced, committed people willing to lead the succession planning process. Consider creating a Succession Planning Committee comprising board and staff members. Facilitation. Succession planning can be bolstered by a facilitator who ensures the planning process stays on track. Facilitators focus on process so that participants can attend to the details. By ensuring the process is effective and enjoyable, a good facilitator can make all participants into better planners. Products of Succession Planning Emergency Succession Plan. This document addresses unplanned departure of staff in leadership roles. It is reviewed, updated, and approved annually by the board. Leadership Map. This document details current leadership bench strengths and identifies potential successors for key positions. Internal Successor Assessments. These are written assessments of each potential successor that focus on strengths and developmental needs. Individual Development Plan. This is a detailed plan that spells out an internal candidate s individualized professional development needs and how they will be met. External Candidate List. A list of external candidates to be cultivated if the organization has sufficient lead time before a planned transition. Long-Term Succession Plan. This document spells out the organization s long-term succession strategy. It is reviewed, updated, and approved annually by the board. For more information: Jim Morris, Senior Consultant, Solid Ground Consulting or Page 4

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