Succession Planning. For the Not-for-Profit Organization.

Transcription

1 Succession Planning For the Not-for-Profit Organization.

2 Succession Planning as a Proactive Element Creating conditions and an environment promoting successful functioning for the incumbent CEO. Mapping out the organization s current and future leadership strategy. Assessing potential developing leaders within the organization. Ensuring that a sound infrastructure exists whenever the search for the next CEO is launched.

3 Reality Paradox of the 2 Stage Process 1. The responsibility for strategically planning the leadership of an organization belongs to the Board of Directors or Trustees. 2. The reality of the process typically falls to the CEO who must drive the Board of Directors through the process. 3. Paradox? As a CEO of a not-for-profit organization you work for the Board of Directors. The paradoxical reality is, as CEO, you must direct and organize the work of the Board. There is a fine balance between working for and directing and when that fine balance is expressed, the organization tends to run far more smoothly.

4 Leadership Transition Planned Retirement Health Temporary Emergency Issues Bridging a Leadership Transition Extended Leave Unplanned Termination Unplanned Resignation

5 Leadership Transition New CEO hired from outside Starts Day One as CEO New CEO selected from current staff New CEO has been groomed for transition Hired specifically to be groomed

6 The first agenda item for a Board when it meets is whether to keep the CEO or not. If the answer was yes, then the meeting proceeded per the established agenda. If the answer was no, then forget the rest of the agenda and focus on the leadership change about to occur. Peter Druker

7 Succession Planning Triggers There are several events or practices that might trigger a review, or even prompt the Board to assess the Leadership Role and the current Succession Plan.

8 Transition to a new Board Chair Performance evaluation of the CEO Board Self-Assessment process Beginning of a new Strategic Plan Cycle Breakdown, major illness, or crisis involving the CEO Termination or unanticipated resignation of the CEO Significant turnover in Board composition Significant turnover, dramatic loss in funding, significant problems with state licensure or contracts A CEO who has outstayed his or her effectiveness

9 Part One Succession (Strategic) Planning Process Prior to Eminent CEO Transition

10 Step One CEO Specific Assessment

11 Step One CEO Foundational or specific Slide 9 1. Understand the job of the Not-For-Profit CEO 2. Define the Mutual Expectations of the CEO and the Board 3. Design and implement a constructive, informative and useful process for evaluating the CEO s Performance (Related to CEO Job Description) 4. Assess the viability and tenure plans for current CEO 5. Assess organizational employees for CEO potential candidates (Handout) 6. Develop an Emergency Leadership Transition Plan 7. Develop a Productive Process for Board Self-Assessment

12 President/CEO Micky Mouse 65/35 Development Director Child/Family Services Director Chief Financial Officer Maintenance Director Don Duck 57/25 S 2 Suzy Que 49/20 O 1 M R Bucks 60/15 O 2 Mike Rowe 45/12 S 3 Program Manager/Supervisor J R Ewing 62/27 O 2 Program Manager/Supervisor Daniel Boone 33/8 S 2 Program Manager/Supervisor Laura Bush 68/31 O 1 Case Manager Lucille Ball 44/10 S 2 Case Manager John Wayne 38/9 N 3 Case Manager Annie Oakley 29/5 S 2 Other Tom Sawyer 32/3 S 2 Other Huck Finn 33/5 S 2 Other Becky Thatcher 29/5 N 3 Position Name Age/Tenure Performance Potential Present Performance Promotional Potential Outstanding O Ready Now 1 Satisfactory S Needs Training 2 Needs Improvement N Questionable 3

13 Step Two Organization Assessment

14 Mission Vision Financing Governance Management Communications Organizational Culture and Values Opportunities for the Organization Threats to the Organization.

15 Two Organizational Evaluation tools that might be helpful: 1. The Druker Foundation Self-Assessment Tool for Nonprofit Organizations; 2. Navigating the Organizational Lifecycle: A Capacitybuilding Guide for Nonprofit Leaders; by Paul M. Connolly (BoardSource, 2006

16 Part Two Issues to be addressed during the Executive Search Process

17 1. Will there be a Succession Planning (Search) Committee? 2. Define the core leadership and management competencies expected of the candidate. 3. Create the Chief Executive profile. 4. How to execute the search process. 5. Develop a Communications Plan for the process. 6. Define the role of the outgoing CEO in the Search Plan. 7. How to work with internal candidates from the Board or staff.

18 Keeping Critical Points in Mind: 1. Through SWOT analysis or organizational assessment within the Strategic Plan process, determine the characteristics and competencies most desired and needed in the new CEO. 2. Determination of the future of the organization drives the direction of the CEO search. 3. Determine the differences to be sought in the new CEO compared to the outgoing CEO. 4. Define all aspects of the search process.

19 Part Three On-Boarding the new CEO Hiring the Chief Executive does not complete the succession planning process. Chief Executive Succession Planning; Nancy R. Axelrod, page 49

20 Appoint a Leadership Transition Team Support the organization s new CEO, the staff, and the Board of Directors through a transition period of six to twelve months. Communicate goals and expectations for the new CEO. Provide an orientation for the new CEO. History and culture of the organization Community Donors Stakeholders Churches Schools

21 Create open communications between the Board and CEO, staff and Board, community, stakeholders and Board of Directors. Meet regularly with the new CEO for support, prayer, counsel, and encouragement. Listen to discoveries, concerns, celebrations of both the CEO and staff. Provide a watchful eye on client services during the transition.

22 Lynn R. Harms, LMSW (806)