Planning for Leadership Succession: Success Strategies & Live Case Studies
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1 Planning for Leadership Succession: Success Strategies & Live Case Studies 4/16/13, 8:00 10:00 am Hill Auditorium, Woodruff Arts Center Leadership Series Event, Mary Bear Hughes, Senior Consultant, GCN Nonprofit ConsulBng Group
2 What IS Succession Planning? Strategic Planning Planning for future talent and leadership needs of your organizabon Emergency Planning A wrihen, board- adopted plan for what takes place when an ED will be out temporarily or leaves unexpectedly Departure- Defined The CEO plans to rebre in 6 months- to- five years Building Leaderful OrganizaHons: Succession Planning for Nonprofits Tim Wolfred, CompassPoint and the Annie E. Casey FoundaHon
3 What ISN T Succession Planning? A succession plan does not need to idenbfy who will assume permanent leadership.
4 Succession: Strategic Planning IDs Talent and Leadership Needs Includes specific employee development programs AnBcipates operabonal needs to support organizabonal strategy and program growth Results in a stronger organizabon: execubon of the strategic plan and the capacity for enduring unexpected change.
5 Succession: Emergency Planning I m in charge here.? WriHen guide for a short- or long- term absence of the CEO planned or unplanned For the unanbcipated departure of the CEO Includes who leads, scope of authority, clear agreement on what happens if the departure is permanent
6 Succession: Departure Defined AnBcipated departure of the CEO in 6 months- to- several years Preparing a plan for the transibon preparabon, hiring, transiboning Examining the strategic plan for changes in prioribes Preparing staff by increasing their leadership and skills
7 This Topic is Not New 1999 CompassPoint report pointed to leadership gaps arising from Baby- boomer rehrements, and therefore need for succession planning
8 2006 Just 29% of execubves have discussed a succession plan with their boards. Daring to Lead 2006, A Joint Project of CompassPoint Nonprofit Services and the Meyer FoundaHon
9 2008 Succession in nonprofits is a nabonal challenge There is a strong interest in reducing the risk of leadership change Several execubve directors shared that succession is a stay awake at night concern Gary Dietrich, Northway ConsulHng Group, 2008
10 2011 Aaer 15 years of ahenbon: Key proven pracbces not widespread EDs & boards sbll reluctant to talk proacbvely 17% of organizabons have a documented succession plan (NaBonally) Daring to Lead 2011, A Joint Project of CompassPoint Nonprofit Services and the Meyer FoundaHon
11 Succession Planning Survey 2013 Community FoundaHon for Greater Atlanta 73% of Greater Atlanta nonprofits have no wrihen succession plan in place 69% have no emergency success plan in place Nearly half indicate they lack the knowledge to create a plan
12 No Emergency Succession Plan. Why? 24% 10% 15.% 25.4% 25.4% No Knowledge of how Board does not feel this is a high priority OrganizaBon can't afford (Bme or cost) Never seen as a necessary investment Other Succession Planning Survey, 2013, Community FoundaHon for Greater Atlanta
13 There s Good News Succession planning is a high priority for our organizahon. As the founder, nothing would make me happier than for our organizahon to be stronger when I am no longer in this posihon GCN/CFGA Focus Group ParHcipant
14 Even if there s shll some Denial Succession planning is a high priority for our organizahon. As the founder, nothing would make me happier than for our organizahon to be stronger when and if I am no longer in this posihon. (emphasis added)
15 Why Do It? Average Tenure of ED: 3-5 years (2011) 75% of ExecuBve Directors plan on leaving their posibon within five years. Daring to Lead 2001, 2006, 2011 Of those, 50% will not seek new ED posibons
16 Another Reason 33% of current execuhves followed a leader who was fired or forced to resign, indica(ng the frequency of mishires Daring to Lead 2006, A Joint Project of CompassPoint Nonprofit Services and the Meyer FoundaHon
17 More Reasons Stabilize your organizabon in an emergency Strengthen it when no departure immediately takes place Deepen clarity about mission and prioribes Further develop talent Engage board in strategic talent development Deepen stakeholder relabonships
18 ED Concerns One of my main concerns is making sure that staff are being recognized, that they are growing, and that we re retaining and developing the next cycle of leadership. I have nightmares about it. What if I got hit by a bus? What would happen? Daring to Lead 2011, A Joint Project of CompassPoint Nonprofit Services and the Meyer FoundaHon
19 4 Myths of Succession Planning Not needed unbl someone is ready to rebre It s just for the CEO We can t plan. We can t afford bench strength If I invest in employee development, another organizabon hires them away
20 Geeng Started
21 Emergency Succession Planning Steps Define terms planned, unplanned, durabon ID temporary interim leadership & authority List priority ED funcbons & temporary staffing Implement cross- training plans CommunicaBon Plan LocaBon of key documents, passwords
22 Strategic Succession Planning Steps ID talent needs to meet future outcomes & goals board & staff Assess current talent analyze gaps Create development plans leadership, management, communicabons & funcbonal skills IdenBfy leadership development tools Include in sr. management evaluabons
23 Departure Defined Succession & Transition 2-5 years in advance start date Prepare the Organization Conduct the Search Plan for Success
24 Key Success Factors: Succession Planning Board ownership and ED inibabon of succession planning Commitment of the ED to developing an organizabon strong enough to survive 6months without his/her leadership CommunicaBon Plan
25 Sample Plans Texas Commission on the Arts has many tools on its website Sample Succession Policy Sample Succession Plan These samples are excellent outlines Not full strategic succession plans
26 TransiHon
27 Job SaHsfacHon Among EDs 70% 60% 62% 50% 40% 52% 37% 40% 46% 50% 30% 20% 10% 0% < Daring to Lead 2011, A Joint Project of CompassPoint Nonprofit Services and the Meyer FoundaHon
28 Why are New Eds Unhappy? Fear of enormity of job RecogniHon that board does not understand the job the ED has to do New Eds frequently in smaller organizahons; high turnover. Lack of reserves burns them out. Poor communicahon with the board about mutual expectahons.
29 Why are New Eds Unhappy? NO ONBOARDING PROCESS
30 Key Success Factors of TransiHon AcBve board parbcipabon Detailed orientabon plan that includes introducbons from board in a well- planned, well- Bmed manner. Total support from the board: Deflect end- runs
31 Selected MedShare Guiding Principles 18- month process to assure a broad base of organizabonal support for long- term success Flexible to assure responsiveness Establish mutual trust & confidence among stakeholders; care & candor Clarify, understand and modify expectabons with regular feed- back on your performance You cannot fill two posibons at once Include & consider mulbple consbtuencies MedShare 2011
32 Welcome, Panel on TransiHon Atlanta Ballet Arturo Jacobus, ExecuBve Director Elizabeth Adams, Board Vice Chair MedShare Meredith Rentz, CEO & President Charlie Evans, Board Vice Chair Woodruff Arts Center Virginia Hepner, President & CEO
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