Crafting Transitions for Strength and Sustainability

Transcription

1 Crafting Transitions for Strength and Sustainability Succession Planning Guidebook for Nonprofits By Robert L. Routhieaux Hamline University School of Business MS-A1740, 1536 Hewitt Avenue Saint Paul, MN The author is exceptionally grateful for the support of the Minnesota Council of Nonprofits in the research conducted for this report. He is also thankful for the nonprofit executives that provided feedback and input throughout the process. This report provides nonprofits with guidance and tools for succession planning and strategic leadership development. It recognizes that organizations of different sizes, in different subsectors, and at different stages of organizational lifecycle have unique needs and context that will impact efforts in these areas. Within the report, readers will find planning frameworks, sets of questions, templates, and recommendations for other resources to help guide succession planning efforts. Succession planning is inherently connected to organizational and leadership development. Integrating succession planning and leadership development as core elements of organizational culture appears critical in maintaining organizational success and sustainability through transitions. When done well, succession planning can enhance an organization s impact in the community, strengthen its financial health, and lead to a more committed and dynamic workforce. While these benefits and improvements can never be guaranteed through significant transitions, this report is intended to help ensure healthy and positive successions and transitions. Readers are encouraged to supplement this report with other sources and tools in developing and implementing succession planning efforts. 1

2 Table of Contents Executive Summary of Guidebook 3 Section One: Succession Planning Concepts and Framework 5 Key concepts in succession planning 5 Succession planning framework 6 Setting overall intention and scope 6 Identifying core participants and processes 10 Clarifying purpose and goals 12 Drafting initial plans and timelines 13 Refining existing plans 15 Section Two: Leadership Development Concepts and Framework 16 Key concepts in leadership development 16 Leadership development framework 17 Setting overall intention and scope 17 Identifying core participants and processes 20 Creating a leadership development plan 22 Engaging in leadership development activities 25 Ongoing assessment, feedback and adjustments 25 Section Three: Best Practices and Emerging Trends 28 Common challenges with succession planning 28 Summary of best practices in succession planning 30 Common challenges with leadership development 33 Summary of best practices in leadership development 34 Section Four: Tools and Templates 37 Guiding considerations defining current context and constraints 37 Initial steps and ways to get started 39 Keys to success in my position 39 Succession plan template 40 Leadership development plan template 43 Special considerations in transitions of key executives 45 Final Thoughts and Future Directions 47 Research Process and Participants 48 References and Resources 51 2

3 Executive Summary of Guidebook This guidebook is designed to provide nonprofit organizations, and the individuals and teams that lead them, with practical guidance and support in succession planning efforts. The contents of the guidebook have been drawn from numerous sources. Several of these sources are well known to nonprofit professionals, including Board Source, the Annie E. Casey Foundation, the Young Nonprofit Professionals Network, the Chronicle of Philanthropy, and journals like Nonprofit Management & Leadership. It is also supported by original research by the author. This research included in depth interviews with nonprofit professionals and surveys distributed to a broad array of nonprofit executives. The primary findings and conclusions from this work can be summarized with the following: 1. There is a growing body of literature and supporting documents for nonprofits to utilize in developing succession plans and carrying out successful transitions. 2. Most nonprofits have done limited work to integrate succession planning and leadership development into the culture of the organization. This has adversely affected the nonprofit sector. 3. A growing number of nonprofits are dedicating some time and resources to succession planning for board members and senior executives, but many have done little to plan for departure of other key positions. 4. Development of talent and preparation of future nonprofit leaders is lagging far behind demand. The impending need for new executives, with new skills and long term strategic orientation, is a critical challenge to be addressed in designing and implementing successful transitions. These findings and conclusions provide the overarching context for this report. Section One provides an overview of key terms, concepts and approaches to succession planning. This section provides foundation for the resources provided throughout the report. This section will guide you through the initial steps of the succession planning process, and provide guidance for creating documentation to catalog and guide your activities. Section Two provides an overview of key terms, concepts and approaches to leadership development. This section will help you 3

4 explore options for leadership development activities across levels in your organization. Section Three distills the author s views on existing and emerging best practices in succession planning and leadership development in nonprofits. This section also highlights some of the most common questions and challenges nonprofits face in succession planning and leadership development. Section Four provides specific tools and templates for nonprofits to use in designing and implementing succession planning and leadership development efforts. The tools and templates in this section should help guide succession planning efforts from initial conversations to more comprehensive approaches. The author s hope is that this report provides a catalyst for dialogue and action in nonprofits. He recognizes that there are multiple paths nonprofits can take regarding succession planning and leadership development. Each organization has its own unique history and needs and will want to design processes that best suit this unique context. The materials and tools provided in this report should help nonprofits in developing systems and processes that help guide their organizations through successful transitions. Hopefully, these efforts will enhance organizational impact, contribute to organizational sustainability, and strengthen the nonprofit sector. 4

5 Section One Succession Planning Concepts and Approaches This section provides a starting point for succession planning conversations and activities. It provides an overview of key terms and concepts and outlines a specific set of steps for succession planning efforts. Key concepts in succession planning: Succession planning is a set of intentional and thoughtful processes that prepare an organization for the departure and transition of human resources including board members, executives, managers, staff, volunteers, and contractors. Departure defined succession planning is when there is a known departure time frame for the person or position in question. Time frames can range from long anticipated departures, such as ending board member terms or long-planned retirements, to relatively short notice resignations. Emergency succession planning is the advanced preparation for unexpected absences or departures due to illness, injury or death. In general, emergency succession planning is focused around key executive and managerial positions and positions with unique knowledge or expertise. Permanent placement is identifying and hiring an individual to replace an outgoing individual with no expectation regarding end date. While the new individual s specific job requirements might be different than the outgoing individual, they are hired with expectation that their job will continue for more than a defined period of time. Interim placement is identifying and hiring an individual to replace an outgoing individual for a specific time frame or with specific parameters. The interim placement may be an internal candidate that will fulfill the open position for a set period and then cycle back to their previous job (or another position in the organization). It may also be an external candidate that will be employed by the organization for a set period of time or until specific goals / projects have been accomplished. 5

6 Internal candidates are individuals being considered for an open position that already have a current role in the organization. These individuals may be existing staff members, board members, volunteers, or others with working knowledge of the organization. External candidates are individuals being considered for an open position that do not have an existing position with the organization. It is possible that some external candidates will have worked for the organization in some capacity in the past. Succession planning framework: Succession planning efforts can be broken down into five main steps: 1. Setting overall intention and scope 2. Identifying core participants and processes 3. Clarifying purpose and goals for succession planning activities 4. Drafting initial plans and timelines 5. Refining existing plans and documentation These steps are described and detailed below, with key considerations for each step. It should be noted, as is stated in several areas of this report, that every organization has unique circumstances that need to be integrated into succession planning processes. While some of these unique elements will be highlighted in the section below, this report cannot address all those elements directly. Factors including organizational size, location, age, sub-sector, recent trends, founder presence / involvement, and overall culture all play into succession planning efforts. Setting overall intention and scope: Succession planning efforts should always begin with clarification of purpose and scope. For most organizations, the overall aim or purpose of succession planning is likely: 6

7 To minimize the disruption and ease the transition from one individual to another Simply stated, nonprofit organizations should dedicate time and resources to succession planning because doing so can help mitigate the potential negative consequences of personnel transitions. The costs and potential for harmful impacts of transitions, particularly for key positions, can be extensive. There are clear and direct costs associated with recruitment, selection and onboarding new employees. There are also indirect costs in terms of the time and energy that continuing employees will need to dedicate to these processes, and to making sure the actual work of the position in consideration gets accomplished during the transition. Transitions often result in reduced productivity or process loss as the new employee gets acclimated to the position and organization. Plus, transitions can have detrimental impacts on revenues if the departing employee has knowledge, skills, contacts or relationships that are impactful in fundraising or other revenue generating activities. Beyond minimizing disruption and potential negative impacts, organizations may also wish to consider the following purpose of succession planning: To maximize on the opportunities afforded by departures and transitions, with focus on building organizational strength for future success and sustainability Transitions in human resources can provide an organization with numerous opportunities for growth, change and increased impact. Over time, nearly all positions in nonprofits shift in terms of the knowledge, skills, behaviors and contacts (KSBC s) needed to be optimally effective and efficient. Organizations that proactively plan for departures are better positioned to capitalize on these opportunities than organizations that respond to departures reactively. Without advanced planning and goal setting, too often a departure is met with the response to fill the open position as quickly and cost effectively as possible. While at times this approach does take precedent, it can also lead to stagnation in the position and the hiring of an employee that meets immediate needs but may not be best suited to future needs and demands. 7

8 This latter purpose highlights the inseparability of succession planning and leadership development. Organizations that adopt a true future focus to their succession planning efforts will work to incorporate ongoing professional development and preparation for future roles into their efforts. The benefits of doing so go well beyond ensuring successful transitions. Ongoing strategic leadership development, in tandem with ongoing succession planning efforts, helps to retain high performing staff, improves overall employee commitment and engagement, and encourages staff at all levels to take active roles in organizational growth and development. In addition to the above general purposes for succession planning, organizations should also consider purposes that may be unique to the organization, the sub sector, or the location of the nonprofit. For example, an arts organization might place emphasis on Ensuring the legacy and artistic merit that our founder and organization have come to be known for. A human services organization may find emphasis on Maintaining our strong voice in local, regional, and national advocacy efforts. An environmental organization might articulate a dedication to Continue to cultivate non-partisan and bi-partisan support in our efforts to preserve our ecological heritage and natural treasures. In clarifying these purposes for succession planning, the organization can provide clear and direct links to the vision, mission, and strategic plan of the organization. Once an organization has clarified the overall intentions for succession planning, the scope of succession planning efforts will need to be outlined. In this step, the organization will determine which positions will be considered, and the amount of detail to which they will be considered. For organizations just getting started with succession planning, the scope may be on one or very few positions. This scope can be very specific and based on an announcement by a key individual of their intent to retire or take a new position outside the organization. Such context is often the initial catalyst for succession planning conversations and activities in nonprofits, and has become increasingly common in recent years due to the increasing wave of retirements by long-standing founders and key executives. Clarifying the scope of succession planning efforts will depend on numerous factors particular to a given organization. These factors are likely to include: 8

9 Organizational size very small organizations naturally have fewer positions to consider Organizational life cycle stage long established and stable organizations may have more resources to dedicate to succession planning efforts; Organizations in a strong growth stage may need more broad and inclusive succession planning cascaded throughout the organization Experience with succession planning organizations just starting succession planning efforts will likely begin with a more narrow scope to learn and refine processes and documentation Organizational niche organizations with very unique focus, approach or location will need to be more deliberate in finding replacements for any departing personnel The author encourages organizations to start with a realistic scope, but not to be overly limiting. While it may be tempting to think it best to start with one or a few key positions, this approach can hinder later efforts to instill a culture of succession planning into an organization. To clarify, consider the following: An organization focused on providing services to elderly citizens has 20 board members, 210 staff, 75 volunteers, and 15 interns. They are just starting their succession planning efforts. At their annual organization-wide gathering, the Board Chair and CEO make the bold announcement to everyone attending: Thank you for all you do for our organization and the people we serve. Tonight, we would like to launch an effort that will help us to be the best stewards of the generous support of our donors, and to maintain our commitment to the community members we serve, many of whom pay at least in part for services received. We want everyone to do their part to help prepare the organization for your departure. Not because we want you to leave, but knowing that for most of you this is one chapter in your professional journey. The more you can do to help us set up the next person in your position for success, the more you will leave your own legacy of commitment and dedication to this organization. And, in doing so, you will also be highlighting the many great contributions you bring to this organization. We can use this information to help you develop for future 9

10 roles in this organization, and also help you transition to other organizations and roles if that is in your best interests. To support this type of effort, all organizational members can be encouraged or expected to complete an initial document that can help guide succession planning efforts. An example of what this document might include is provided in the Tools and Templates section of this report, and is entitled Keys to Success in My Position. Identifying core participants and processes: Succession planning should not be a secretive process. While it may be common for an organization to start their succession planning efforts with a Board conversation focused on the Executive Director (ED) / Chief Executive Officer (CEO) position, effective succession planning requires broad involvement and engagement. As with many organizational decisions, the quality and effectiveness of succession planning is directly related to how inclusive and open the process unfolds. For example, a truly effective succession plan for a CEO will include input and consideration from the broad range of constituents that interact with the CEO including board members, senior executives, program managers, and key external stakeholders. Each of these groups will have unique insights into the knowledge, skills and network needed for an exceptional CEO. It is important to note that the efficiency of succession planning processes may be impacted by the breadth of constituents involved. Organizations may need to determine some level of tradeoff between the efficiency of the process and the overall detail and quality of the end results. There is no magic formula here. A large human services organization that is an institution in a metropolitan region, with broad reach into the political arena, will need to be much more inclusive than a small arts organization with limited programming in a small town. Developing formal succession plan documents begins with identifying the individuals that will be responsible for gathering information and drafting that information into a written plan. This set of individuals is likely to include the direct 10

11 supervisor of the position in question, and perhaps two or three individuals at equivalent or higher levels than the direct supervisor. For a CEO, this is likely to be a committee of the Board of Directors, and may include an external consultant or organizational supporter (perhaps a representative from a key funder). For a senior level management position, like the Chief Operations Officer (COO), this may include the CEO, the Chief Financial Officer, and the Director of Development. Ideally, the person who holds the position will be engaged in the process and helpful in drafting their own succession plan, though undoubtedly this can create challenges unless the organization has already established a clear culture of succession planning throughout the organization. In larger nonprofits there may be human resource professionals that help to guide such efforts. After the group responsible for gathering information and drafting the plan(s) has been identified, they will seek input from core constituents for the position being considered. Internally, the organization will want to gather insight from a broad range of existing personnel. This will help in developing a culture of succession planning. Externally, the organization will want to solicit feedback from individuals that have regular interaction with the position being considered. For example, consider a Director of After-School Programs position for a midsized nonprofit (40-50 employees) that provides after school and summer programming for at-risk teens. The position has seven direct reports, each responsible for one school district in a metropolitan area. To fully understand the range and scope of knowledge and skills needed for the position, numerous constituents should be included in the information gathering process. This would include their direct supervisor (perhaps the CEO or COO, depending on the structure of the organization), their direct reports, and other internal constituents with whom the position interacts regularly (Director of Summer Programs, Development Director, Director of Marketing & Communication). It would also likely include external constituents, including representatives of the different schools or school districts and key collaborators from partner organizations. In gathering input for succession planning efforts, the primary question to be asked of constituents is: 11

12 From your perspective, what do you feel are the most important knowledge, skills, behaviors and contacts / networks (KSBC s) needed for someone to fulfill this role with exemplary quality? In addition to this direct input about the position in question, organizations should also consider the following contextual factors that may impact a position, including: Trends in the sub sector, such as funding shifts or emerging program best practices Dynamics in the local environment, such as labor pool availability, salary expectations, or demographic changes Potential or expected changes in strategic direction or future needs, as outlined in a strategic plan or as evidenced by shifts in business models or priorities Clarifying purpose and goals: While the overall aim or purpose of succession planning is likely to minimize the disruption and ease the transition from one individual to another and to maximize on the opportunities afforded by departures and transitions, there are generally more specific intentions that surface. These intentions might include one or more of the following (or other intentions not included here): To minimize the potential negative impacts on the clients we serve as we transition from an employee with good position and organizational knowledge to one with more limited knowledge and experience To minimize internal disruptions to work flow and processes so continuing staff feel minimal impact or burden from the departure and transition To minimize financial impacts that might result from the departure and transition, including losses to revenues or increases in expenses To capitalize on the potential for new knowledge, energy and skills that the transition might bring for the organization and the clients served 12

13 While all of the above intentions may be important, for most positions an organization will likely identify one or two as most critical. Once these broader intentions are identified, there are benefits in drafting more specific goals for a successful transition. These goals provide benchmarks for assessing succession planning efforts. Such goals might include: Ratings for service quality by clients or vendors or other constituents will not show significant decrease during the transition period Current staff will not show increased stress or frustration in getting work done through the transition Fundraising and other revenues will not decline significantly as we transition between employees Within three months of hiring the replacement there will be a noticeable increase in client satisfaction, work productivity, or revenues based on the performance of the new employee The specific intentions and goals will depend on the type of organization, the size of the organization, the unique history and culture of the organization, and the location / available labor pool for the organization. These intentions and goals should be clearly defined and laid out, and be subject to review and refinement as the succession planning process unfolds. Drafting initial plans and timelines: To begin drafting an initial succession plan for a position, the organization should be able to address the following questions: What are the core sets of knowledge, skills, behaviors and contacts / networks (KSBC s) needed to be successful in this position? Which are the most important of these KSBC s? To what extent can we prioritize these in terms of their impact on the effectiveness of the person who holds this position? To what extent does the existing job description include or address these elements, including the priorities? 13

14 To what extent are these KSBC s evident in any potential internal candidates? To what extent are we likely to have to seek external candidates to fill the position? Are there other factors to consider in whether we should be seeking internal or external candidates for this position? What are those factors, and how much weight should they play in any decision? Once these elements are addressed and clarified, it is likely that the actual succession plan for any given position will include a Plan A and Plan B (and potentially a Plan C). Plan A is the ideal transition plan based on the information gathered and the deliberations of the succession plan drafters. Plan B is the backup, where one or more elements of the ideal transition are not in place or clear. At times, an organization may be fortunate to have a clear and exceptional successor already engaged and ready to step into the position (can be internal or external). However, from the author s experience in conducting research on succession planning, this seems to be relatively rare. More commonly when it becomes known that a position will be open, there are several alternatives that all seem to have their own potential benefits and drawbacks. One of the primary considerations with both departure defined and emergency succession plans is the availability of the core KSBC s for the position in question within the organization. Throughout transitions, the core work of a position still needs to be carried out. Generally, the workload of the open position is added to the responsibilities of other individuals. Plus, any work diverted from those employees as they fulfill temporary duties also needs to be completed until a suitable replacement is placed and trained. Thus, part of succession planning is identifying where the KSBC s needed to fulfill a position already exist within the organization. When not available internally, external interim persons may need to be brought in to fulfill the role. A written succession plan for any position can be formulated around the following template: 1. Position title and description of responsibilities 2. Key benchmarks or outcomes on which this position will be evaluated 14

15 3. Primary knowledge, skills, behaviors and contacts / networks (KSBC s) needed to be successful in the position 4. Additional / supportive KSBC s that will help be successful in the position 5. Options for fulfilling or completing the work of the position during the transition, including any time frame when the position is vacant 6. Plans for onboarding and supporting the new person in the position 7. Possible individuals to consider for the position, assessed along the KSBC s dimensions 8. Additional considerations that might impact the selection / hiring decision (this might including time frame or budgetary constraints, key persons to involve in onboarding, etc) This template is expanded upon in the Tools and Templates section of the report, and is entitled Succession Plan Template. Refining existing plans: Succession plans will need to be updated periodically as new information and context arises. Factors that might necessitate revisions to existing succession plans can include: Changes in position demands, such as the need for new or emerging KSBC s based on industry or sector shifts Changes in internal candidates with potential and interest in the position, including the hiring or departure of such individuals Shifts in organizational priorities or structures that impact the nature, scope, and job description for the position in question - this might include growth or decline in programs, or changes in strategic direction for the organization Revising succession plans for any position should generally follow the same basic process for creating an initial succession plan. However, the existing plan can help to streamline the process, and the breadth of input and involvement in the process can generally be more limited. 15

16 Section Two Leadership Development Concepts and Approaches This section provides a starting point for leadership development conversations and activities. It provides an overview of key terms and concepts and outlines a specific set of steps for leadership development efforts. Key concepts in leadership development: Strategic leadership development is the intentional preparation of internal candidates for possible future positions within an organization. It looks beyond the demands of an individual s current role, and focuses on developing knowledge, skills, behaviors and contacts / networks (KSBC s) needed for success in future roles and responsibilities. Leadership development activities include targeted learning of new skills, new licensure, coaching / mentoring programs, or more generalized development of interpersonal and professional skills. Coaching is a learning relationship in which the coach provides direct education and feedback on specific knowledge or skills, designed to enhance the performance of the person being coached. Coaching may be an internal relationship where the coach has a position higher in the organizational structure, or an external relationship with a consultant or industry expert. Mentoring is a balanced personal / professional relationship in which the mentor provides unique and tailored support, encouragement, contacts and guidance to enhance the personal and professional development of the person being mentored. Mentoring can be an internal or external relationship. While the mentor s position may be higher in organizational structure, the relationship develops beyond power and position differences. Leadership development may focus on vertical movement or promotion within the organization (like moving from Development Associate to Development Director or from Vice President of Finance to Executive Director), or lateral 16

17 movement in the organization (like transition from a Marketing and Communication position to a Fundraising and Development position). Leadership development framework: Strategic leadership development can be broken down into five distinct yet interrelated processes: 1. Setting overall intention and scope 2. Identifying core participants and processes 3. Creating a leadership development plan 4. Engaging in the leadership development activities 5. Ongoing assessment, feedback, and adjustments There are many parallels between succession planning and leadership development. As noted in several areas of this report, the two processes are generally inseparable. Leadership development activities tend to be contingent upon the intention, scope, purpose and goals of succession planning. As such, most organizations will need to conduct some level of succession planning if they are to leverage the potential benefits of leadership development. Setting overall intention and scope: As with succession planning, strategic leadership development activities should start with discussion and clarification of the overall intention and scope. For most organizations, the primary intention of leadership development is: To prepare select individuals for advancement and / or success in other positions within the organization. Leadership development activities may be focused on vertical advancement / promotion within the organization, or may focus on more lateral movement and learning. Regardless of focus, leadership development activities are designed to prepare individuals for success in different positions in the organization. Some of the learning and development will relate to specific knowledge and skills needed to 17

18 perform the functions of the future position (like understanding financial analysis or principles of board development). Other learning and development will relate to cognitive and / or interpersonal skills needed to be successful in future positions (such as strategic decision making or conflict resolution). For most nonprofit organizations, vertical advancement / promotion tends to be the primary focus. This focus often derives from succession planning conversations, where specific positions are identified and succession plans created. As successions plans are developed, organization will engage in assessment of current human resources to identify individuals that may have the potential and interest in advancing within the organization. Leadership development can also focus on lateral movement within the organization. This approach may be particularly applicable to younger or less experienced nonprofit professionals. For example, an organization may have a number of high potential individuals that have only worked in the nonprofit sector for five year or less. These individuals may still be exploring their career interests and career anchors. Their exposure to different areas of the organization may be a core goal of theirs with the organization. Organizations that encourage, support and prepare them for lateral movement will be more attractive and engaging, and better able to retain these high potential early career professionals. With this context in mind, organizations may wish to expand the intention of leadership development activities with the following: To enhance our workforce talent through meaningful development activities that also increase engagement and commitment, foster holistic and strategic decision making, and enhance retention of high performing employees. This broader intention for leadership development is critical in creating a culture of leadership development in an organization. This is particularly true for organizations with limited direct advancement potential based on organizational size and / or low turnover. While some organizations have very clear paths for promotion and advancement, the majority of nonprofits seem to warrant a broader approach to succession planning and leadership development. 18

19 The scope of leadership development activities will generally parallel the scope of succession planning activities. Organizations with relatively limited scope for succession planning will generally identify similarly limited scope for leadership development. This may be based on organizational size, organizational experience with succession planning, or other factors. For example, if an organization has only developed succession plans for two key executive roles, it is likely they will focus their leadership development activities around preparing individuals for these roles. However, this depends on the availability of internal candidates with both the potential and interest in moving into these roles in the future. In some nonprofits, due to size or job specialization, there may be limited staff with the needed background and skills to move into positions identified in succession planning. In such cases, the succession plans for these positions will generally indicate the likelihood of needing to conduct external search to find suitable candidates. In larger organizations with well-developed structures and human resource processes, leadership development activities may be more broadly focused and include a high percentage of staff across the organization. Indeed, many of the large national and international nonprofits have well designed leadership development programs that encourage ongoing learning, exploration, and movement across the organization. Some have sophisticated human resource information systems that track skills, interests, development activities, and possible future positions for staff throughout the organization. It is important for nonprofits to articulate the scope of leadership development activities in alignment with budgetary planning. Leadership development activities can be resource intensive and need to be planned for in advance. As with succession planning, organizations that are new to leadership development activities should start with a realistic and likely narrow scope to develop processes for implementing and tracking activities. Regardless of overarching intentions and scope, budgeting even modest time and resources for leadership development helps to demonstrate a strong dedication to staff retention. This can be supported by a clearly articulated emphasis on promotion from within, designated professional development funding for all 19

20 personnel, and integration of developmental goals and activities into employee assessment and evaluation processes. Identifying core participants and processes: For leadership development to be effective, participants should have both interest and potential for success in other positions within the organization. Initial conversations around interests can begin with the following questions, asked by supervisors of all of their direct reports: What are you career goals and ambitions? How does your current job fit into those? What other positions in this organization might interest you in the future, and how might those fit into your career goals and ambitions? This direct line of inquiry can go very smoothly, but can also be fraught with hesitation and uncertainty. Employees might be unwilling or uncertain in sharing their personal career goals, particularly if they do not feel a great fit with their current role or the organization overall. Indeed, some employees may view their engagement with the organization as temporary and already have plans or intentions to seek employment elsewhere. Employees may also be timid in identifying roles or positions that interest them out of fear of eliciting defensiveness from the individuals that currently occupy those positions. And, employees may be reluctant to share career goals or future aspirations if they have not developed a strong relationship of trust and respect with their direct supervisor. Ideally, these types of conversation are built into the culture of the organization. The interests and career intentions for each individual should be ongoing conversations, and may be integrated into ongoing performance evaluation and developmental conversations. The more an organization can work to normalize these conversations, the better information it will have in designing and carrying out leadership development activities. Such conversations also serve to increase organizational commitment, and can help in retaining high performing employees even when opportunities for advancement are limited. In assessing interest in future positions for the organization, most employees can be classified into one of three general groupings: 20

21 1. Employee has clear and strong interest in other positions within the organization 2. Employee has some interest in other positions in the organization, but may be unclear on which positions or whether they are willing to wait for those positions to come available 3. Employee has limited or no desire to move into other positions in the organization In most cases, organizations will not want to invest additional resources related to leadership development for employees that fall into the third grouping. This does not mean that these employees are not valuable to the organization. There are many dependable, hard-working, dedicated employees that are not seeking career advancement nor future positions in the organization. Organizations and supervisors need to be cautious to not undervalue employees that do not express strong interests in advancement or lateral movement in the organization. Any expression of disappointment or judgement regarding an employee s disinterest in advancement or lateral movement will hinder open communication and serve to undermine the development of a culture of leadership development. Once potential candidates for leadership development have been categorized based on interests, they should be assessed for potential. This process starts with their existing position, and assessment of the knowledge, skills, behaviors and contacts / networks (KSBC s) needed to fulfill that position. Documentation from performance evaluation processes, combined with existing succession planning efforts, can help to make this process relatively efficient. Next, based on the position(s) of interest of the candidate, the KSBC s for potential future position(s) should be clarified. There will almost always be some overlap in the KSBC s of an employee s current position and desired future positions. This provides a strong starting place for conversations, and leads into the identification of the KSBC s that will be targeted for development. From the list of targeted KSBC s, candidates can conduct a self-evaluation along those dimensions using the following scale: 1. I feel I have strong foundation and background in this area and would need little additional training or support to perform well in this area 21

22 2. I feel I have some foundation and background in this area, and with some training and support will be able to perform well in this area 3. I have little foundation in this area, but with strong training and support I am confident I will be able to perform well in this area. 4. I have little to no foundation or background is this area, and am hesitant about my capabilities to become strong in this area even with additional training and support Self-evaluation by potential candidates for leadership development should be complemented by other sources and techniques. For some KSBC s there may be written or electronic assessments that can be helpful in determining both existing capabilities and likelihood of future development. Plus, engaging individuals that work with the candidate can help provide additional insights on strengths and areas for development (akin to 360 degree feedback processes). The importance of assessing and documenting both interests and potential is critical. For example, it seems common for nonprofit organizations to have mid to upper-level managers and executives with strong potential but limited interest in advancement. This may be especially true for nonprofits preparing for the departure of long-standing founders and chief executives. All too often, these individuals have developed an identity that is inseparable from the organization, where there is little to no division between their personal and professional lives. This type of lifestyle does not appeal to many individuals that may in fact have stellar potential for these senior roles. Creating a leadership development plan: A written leadership development plan for any individual can be formulated around the following template: 1. Clarification of the roles, goals or functions that the individual is aligning to with leadership development activities 2. Delineation of the knowledge, skills, behaviors and contacts / networks (KSBC s) that will be developed 22

23 3. Identification of the specific means by which the stated KSBC s will be developed, including sources, activities, projects and dates / timelines 4. Overview of feedback mechanisms and documentation that will be used to assess the completion and effectiveness of leadership development activities This template is expanded upon in the Tools and Templates section of the report, and is entitled Leadership Development Plan Template. This process begins with clarification of the specific purpose and goals for leadership development activities. Ideally, the purpose and goals for leadership development should be specific and measurable, and should generally include time frames or parameters. Normally, each candidate will have a set of inter-related goals surrounding a core set of KSBC s being developed. For example, consider an employee that has interest and potential for a future position as a Program Manager. The set of goals for their development plan might include: 1. To develop knowledge in financial analysis, including assessment of trends in revenues and expenses and financial ratio analysis. Timeline six months (January to June). 2. To enhance skills in building budgets, including drafting of initial program budgets and aligning program budgets with strategic objectives and organization-wide budgeting. Timeline six months (July to December). 3. To build interpersonal communication skills that will help in developing and maintaining a motivated, committed and high-performing program team. Timeline one year (January to December). At this step, it is important to coordinate efforts across the organization. Whenever multiple employees are engaged in leadership development processes and plans, organizations should look to enhance the efficiency and effectiveness of efforts. The nature of these coordination efforts will depend on the scope of leadership development activities and the means by which candidates will be developed. There are a broad range of leadership development activities. These can include but are not limited to the following: External workshops to develop specific knowledge or skills 23

24 Conferences designed to build knowledge and expand networks Participation in projects beyond regular job duties Engagement in design / development teams, task forces or committees Course work at local colleges or universities In-house training provided by internal or external experts Coaching and / or mentoring programs Job-shadowing or job-sharing Self-directed learning through books, articles, podcasts, and other sources The specific means chosen for leadership development will depend on many factors, including candidate learning styles, resource availability, and budgeting for leadership development activities. The focus here is to be clear about which activities will be engaged and the specific KSBC s that will be targeted through each activity. For example, for the potential Program Manager outlined above, the leadership development plan might include: 1. Attend the Developing Financial Analysis Skills series of four workshops provided by the regional nonprofit support agency. Timeline four months (February to May). 2. Work with current Program Manager in drafting annual budget for program, from initial steps to final approval. Timeline three months (April to June). 3. Engage in a year-long mentoring program with well-respected senior executive, focused on development of communication, conflict resolution and team development skills. Timeline one year (January to December). In drafting a leadership development plan, the employee and their supervisor (or appropriate contact in the organization) should maintain some level of flexibility and adaptability. New opportunities might arise that may be added to the plan. Plus, it is possible that some of the targeted development opportunities get shifted or canceled, or that organizational priorities take precedence over a particularly activity. 24

25 Engaging in leadership development activities: For an organization and individual to get the most benefit from leadership development activities, the following approaches should be considered: On-site trainings should be delivered at times when a broad spectrum of employees can attend. Encouraging attendance by individuals from different levels and divisions of an organization will enhance learning, retention and application of new knowledge and skills. It will also help to build a culture of leadership development in the organization. Where possible, off-site trainings should also be attended by multiple individuals within the organization. This can help with cost efficiency, and can also help with retention and application of learning. Individuals should be encouraged, and to some extent expected, to report on their learnings and development with others in the organization. In fact, the development plan for each individual should include the means by which their learning will be shared with others in the organization. When internal projects are being utilized for leadership development, there should be regular conversations and feedback sessions along the way. Often, this will dovetail with coaching or mentoring activities. At the very least, the individual should get regular and direct feedback and support on the KSBC s they are intending to develop with the projects. While not all individuals find benefit from journaling, encouraging leadership development participants to keep a regular log of activities, reflections and questions is important. These notes and commentaries can help track an individual s development, and can also be helpful to the organization in designing and refining leadership development activities. Ongoing assessment, feedback, and adjustments: Assessment of leadership development activities begins with revisiting the individual leadership development plans. In this process, key questions for consideration include: 25

26 Has the individual completed the activities in the leadership development plan? What specific improvements or advancements have there been in any of the identified KSBC s as a result of the development activities? Has there been other learning or growth that has been noted by the individual or any of their constituents that may not have been listed? In addition, each participant in leadership development activities should complete an evaluation of themselves and the activities they have engaged. Key questions for this evaluation can include: Which of the development activities do you feel had the most positive impact on your learning and growth? How would you characterize this learning and growth? Compared to when you began drafting your leadership development plan, how would you rate your overall desire or willingness to take on other roles within the organization? Has this increased, stayed about the same, or decreased? What do you feel accounts for any changes? Which, if any, of the development activities did you find less than helpful or maybe not necessarily worth the time and effort based on impact? Are there changes or refinements to these activities that might have made them more beneficial or impactful? Looking ahead, what KSBC s would you like to continue to develop or would like to add to your future development plan? What ideas do you have for developing these KSBC s? Combined, the answers to the sets of questions listed above will provide the organization with abundant feedback on leadership development activities. Together, these responses will help in creating a feedback loop on the overall leadership development processes, cycling back to the initial purpose and scope. This feedback loop on the overall leadership development processes should help the organization in answering the following questions: Are we better positioned for successful transitions in key positions based on our leadership development activities? 26