The Core of Sustainability: Best Practice in Succession Planning

Transcription

1 The Core of Sustainability: Best Practice in Succession Planning Marc Haupert, Senior Advisor Janet Schulman, Senior Advisor Third Sector Company Nonprofit Succession Planning Fostering A Culture Of Leadership Continuity To Advance Your Mission Designed by: Jeffrey R. Wilcox, CFRE CEO, The Third Sector Company, Inc. Fostering A Continuity Of Leadership For The Nonprofit Sectors of the United States and Canada An abstract of our 3-hour training session that is available to groups of nonprofits free of charge 1

2 Welcome To Our Gift To You The ABC s of Successful Succession Planning The Third Sector Company, Inc. Fostering Leadership Continuity Learning Needs Accessing Materials Where are You At Today? Workshop Housekeeping: GETTING THE MOST FROM OUR TIME TOGETHER Introductions Follow-Up Our Agenda 1 The Case For Succession Study & Planning A Learning Laboratory 2 3 A Working Definition of Succession The Five Paths To Succession 4 Questions, Answers, and Discussion Fostering a Continuity of Leadership Our Mission Statement 2

3 The Case For Succession Is Clear Daring to Lead 2011 Executive Turnover Recession Effect Lack of Planned Succession In Sector Daring To Lead 2011 CompassPoint Nonprofit Services NONPROFIT EXECUTIVE TRANSITION THE FACTS THE RECESSION EFFECT 67% anticipate leaving within 5 years 10% are now actively looking to leave 7% have given notice 10% will leave in less this year 24% within 1-2 years 31% have been in their positions less than 3 years 27% have 10 years or more 17% have succession plans 33% confident the board can hire the right successor 45% have no executive performance review 9% of execs say burned out 19% have anxiety 46% have reserves of three months or more 3

4 Lack of Planned Succession in the Sector The Bottom Line Daring To Lead 2011 Though slowed by the recession, projected rates of executive turnover remain high and many boards of directors are underprepared to select and support new leaders Daring To Lead 2011 DISCUSSION why do you think that is? THE CASE FOR SUCCESSION PLANNING AS A VITAL CAPACITY-BUILDING INTERVENTION A Working Definition of Succession Planning Succession planning is a series of ongoing and deliberate processes that foster voluntary and professional leadership continuity to advance the mission of a nonprofit organization from generation to generation. 4

5 Creating a Culture of Succession Planning The Five Pathways To A Successful Succession Planning Culture #1. A Common Understanding #2. A Contingency Strategy #3. #4. #5. Succession Policies Human Resource Systems Resourced Strategic Plan Leadership Continuity 5

6 Pathway 1 A Common Understanding The Most Critical First Step Build Human Capital Along With Financial Capital Create A Pipeline Of Future Leaders Edify A Reputation For A Great Place To Work & Volunteer Prepare For Vacancies Before They Occur Succession Planning What does it lead to? Pathway 1 A Common Understanding Know The Difference Succession Planning Transition Planning Career Planning GOAL: Foster Leadership Continuity GOAL: Establish Structured Pathway Between Leaders GOAL: Create Opportunities For Individuals To Grow Skills & Loyalty Organization Position Person 6

7 Pathway 1 A Common Understanding The Complexity Of Succession Variables Power Short-Term Your Text Outcome Politics Circumstances Expectations Succession Planning Long-Term Outcome Succession Planning Assuring a Continuity of Voluntary & Professional Leadership to Sustain the Organization and Safeguard its Mission. Pathway 2 A Contingency Stragegy Board Pipeline Position Strategy and Performance Review Interim Professionals Disaster Preparedness and Relief Agency Inventory GOAL: Helping The Organization Weather An Unplanned Departure Or Prepare For One By Creating A Culture Of Safeguarding Leadership Continuity THE OUTCOMES: People Know What Will Happen If A Position Is Vacated During The Year The Successor Has Access To Critical Information To Get Started 7

8 AGENCY INVENTORY The Emergency or Contingency Approach The ABC s of Nonprofit Succession Planning The Vital Documents & Information The Critical Relationships PERFORMANCE REVIEW BOARD PIPELINE INTERIM PROFESSIONALS Complete Understanding and Status of Job Accurate Status of Incumbent Priorities & Description Align With Direction and Priorities Vacancy Planning Documented Grooming Process Detailed Board-Chair Elect Identified All Board Committees Have Vice-Chair Position Relationship Established With Potential Resource Interim Management Identified As A Capacity- Building Opportunity For The Organization The Advantages Of An Interim On-Demand Leadership For Continuity Of Service An Experienced Perspective On Current Conditions Specialized Skills To Meet Immediate Need Ample Time To Hire The Right Permanent A Methodical Approach To Transition Learning Opportunity For Nonprofit Best Practices Public Relations Management SUCCESSION AS A STRATEGIC ORGANIZATIONAL CAPACITY-BUILDING OPPORTUNITY 8

9 Pathway 3 - Succession Policy Policy Creates Culture Short-Term Vacancies Long-Term Vacancies Permanent Vacancies The Outcome Procedures For Assuring The Organization That There Will Be Leadership Continuity and A Defined Process Succession Planning Pathway 4 - Basic Human Resource Management The Goals: Protect The Organization From Liability Set Performance Standards For The Human Capital Engaged With The Mission Discuss Succession Regularly Manage Attrition Conflict of Interest Statements Staff and Volunteer Job Descriptions Complete Personnel Files What Is BASIC as it pertains to your organization? Develop Skills and Build Organizational Loyalty Staff and Volunteer Development Program Employee and Volunteer Handbooks Annual Performance & Compensation Reviews Nonprofit Leadership Requires Transparent, Accountable, and Participatory Processes 9

10 Pathway 5 - The Resourced Strategic Plan PEOPLE S TIME Resourced Initiatives PEOPLE S MONEY PEOPLE S RELATIONSHIPS A Picture of Future Success Accountable Development of People & Resources To Advance The Mission PEOPLE S EXPERTISE THE OUTCOME: To prove the effective and efficient use of resources to advance the organization and its mission while showing each participant where he or she fits into the future People s Vested Interest In The Future The Key Succession Champions Succession Planning requires a series of facilitated conversations and a SUCCESSION CHAMPION to lead those conversations and manage the emotions that will surface during the conversations. Who will be your succession champion? 10

11 A REVIEW: SUCCESSION PLANNING IN ACTION The ABC s Of Nonprofit Succession Planning The Pathways The Considerations The Realities The Final Step Understanding The Attributes Planning for Emergencies Policy Development & Adherence Good Human Resource Practices A Resourced Strategic Plan Succession Planning & Interim Counsel Executive Performance & Compensation Job Descriptions & Handbooks Budgeting for Succession & Retention Yes, But Management of Emotions A Change In Culture A Leadership Recruitment, Retention & Succession Work Group Job assignments The Truth About Succession Planning When your organization defines resource development as only money, you ve neglected your responsibility to the most valuable and sustainable assets that you ve got THE PEOPLE WHO BUILD EQUITY IN YOUR MISSION 11

12 Nonprofit Succession Planning Fostering A Culture Of Leadership Continuity To Advance A Mission Now, What Are YOU Going To Do? Nonprofit Succession Planning Fostering A Culture Of Leadership Continuity To Advance A Mission Questions and Answers 12

13 For more information, contact: Marc Haupert: Janet Schulman: The Third Sector Company, Inc. Irvine, California (562) Seattle, Washington (206) For a copy of this PowerPoint, check cnmsocal.org/501conference next week