Leveraging The Future The Succession Planning Advantage. YWCA USA South East Region September 17, 2010
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1 Leveraging The Future The Succession Planning Advantage YWCA USA South East Region September 17, 2010
2 What if... Your CFO/Finance Manager fell unexpectedly ill and had to be off for an indefinite period? Your Director/Manager of Programs/Membership Services had to leave for personal reasons? Your longest serving staff member passed away suddenly? Your ED/CEO decided this is it for her?
3 Introduction NFPs are currently experiencing multiple organizational challenges Succession Planning is not top of mind in our sector Client service and advocacy understandably take top priority Leaves little time to plan for the future and the unthinkable
4 Topics we will cover: What is Succession Planning? Why do Succession Planning? Who is Responsible? Components of a Succession Plan Benefits of an Effective Succession Plan Pending Challenges to Effective Succession Planning YWCA Canada Case Reflections & Strategies
5 What is Succession Planning? A critical component of solid HR management Acknowledgement that staff transition is inevitable Provides plan and process to address transition Not just about the ED/CEO; must address all key/critical positions Not a cookie cutter design; is unique to each
6 What is Succession Planning Identifies key positions crucial for organizational operations due to skill, knowledge, seniority and/or experience; thus may be hard to replace. As resources permit, supports, nurtures develops and grooms staff within the organization Identifies staff assessed who possess skills, knowledge, qualities, experience and desire to be groomed and moved up
7 Impending Reasons for Succession Planning Vacancies in senior roles occurring in many NFPs at the same time Baby boomer retirements are on the rise while there s increasing demand for senior management expertise No emerging group of potential employees on the horizon as in past generations Many organizations eliminated middle manager positions to restructure
8 Impending Reasons Cont d Younger managers interested in moving up do not have the skills and experience required because they have not been adequately mentored Middle managers, who would normally perform this type of coaching role, were eliminated due to past restructuring exercises
9 Who is Responsible for Succession Planning The Board & ED/CEO share pivotal responsibility in ensuring a plan is developed and communicated across the organization The Board is responsible to ensure a senior manager is identified and groomed to assume the ED/CEO role if/when required Critical that Boards spend time considering a suitable replacement based on agreed upon process and plan
10 Who The ED/CEO is similarly responsible for developing a Plan for critical positions within the organization It is best practice that the Plan is developed with the assistance of the senior management team and the input of those implicated Caution: For fairness and transparency in developing the Plan, ask for input from all stakeholders
11 Components of a Succession Plan Assessment of future needs based either on strategic plan, goals and objectives, or priority programs and projects Match these to the capabilities of the existing workforce Develop a plan to manage the gaps that will arise when individuals in key positions leave or are promoted
12 Components cont d The plan will generally include a combination of training and developing of existing staff, and an external recruitment strategy Caution: include a statement to specify that a succession plan is not a guarantee of a position; Developmental plan to prepare an individual should opportunities arise within the organization
13 Benefits of Succession Planning Provides organizational stability and sustainability by ensuring there is an established process to meet staffing requirements Boards and EDs/CEOs can demonstrate leadership by having strategies and processes in place to ensure transitions occur smoothly, with minimum disruption
14 Benefits Although the type and extent of planning will be different, organizations both large and small need to have some sort of succession plan A means of ensuring the organization is prepared with a plan to support service continuity when the ED/CEO, senior managers or key people leave
15 Benefits A continuing supply of qualified, motivated people (or a process to identify them), who are prepared to take over when current senior staff and other key employees leave An alignment between your organization's vision and your HR strategy Plan that demonstrates an understanding of the need to have appropriate staffing to achieve strategic goals
16 Benefits A commitment to developing career paths for employees which will facilitate your organization's ability to recruit and retain topperforming employees and volunteers An external reputation as an employer that invests in its people and provides opportunities and support for advancement A message to your employees that they are valuable
17 Pending Challenges to Effective Succession Planning Size of the organization: so few positions with limited ability to offer opportunities for advancement Employees with the potential and desire to advance their careers may move to larger organizations as a result Lack of financial resources: employees may leave for better salaries and benefits offered in other workplaces
18 Pending Challenges... High dependency on project funding (with decreased core funding) thus fewer core staff members available to take up positions in the organization Project staff come and go and may not be seen to be part of the available talent pool available
19 Pending Challenges... In some cases, senior leaders are staying on in their positions, despite the fact that the skills needed for the job may have changed or they are no longer making a meaningful and productive contribution to the organization Indiscriminate inclusion of employees in the succession plan including those who are disinterested, unmotivated or lack capacity to advance
20 Pending Challenges... Inadequate training and development resulting in an employee who is not prepared for a promotion A plan that does not promote people in a timely manner, leading potential successors to leave the organization to seek new opportunities Poor communication resulting in confusion and turmoil due to speculation about the content of the plan
21 Pending Challenges... Potential candidates for promotion cannot be guaranteed that they will be promoted; Depends on timing and needs of the organization
22 YWCA Canada Case reflections YWCA Canada (NO) charged with task of developing a national strategic Succession Plan Current National Scenario: Aging leadership across the country approximately mid 50s Average length years of service years Several retirements pending in next 5 years Significant reduction in current talent pool No agreed plan for replacement
23 YWCA Canada Case Strategies Current National Strategies: Emerging Leaders Program (ELP) Secondment Opportunities National Internal Recruitment Policy Local & National Boards/Committees maintain minimum 25% young women Peer Support System Presidents Peer Support System Youth Leadership Miles Program Strong emphasis on youth/girls programs
24 Leverage Current Strategies to Build Future Plan Elements of Plan already in operations Ability to scale up to comprehensive plan National movement poised and positioned to address pending transition Extension work in new communities requires reaching out in new ways to new and diverse leaders
25 Leverage Current Strategies... Allows YWCA to leverage depth in experience and longevity to attract new leadership Requires short term planning while taking a long term view Successful succession planning ensures a sustainable future advantage
26 References: Axelrod, Nancy. Chief Executive Succession Planning Howe, Theresa. January 19, Succession planning and management. Nonprofit Quarterly. Leadership Transitions: Critical Thresholds. Winter 2002.
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