Executive Team Succession Planning in a CHC
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1 Executive Team Succession Planning in a CHC 2017 TPCA Leadership Conference October 5, 2017 NCFH AGENDA Ex I. General Overview (Why and What it is) II. CEO Succession Examples (The Good, and Ugly) III. Review of Resources (Tool, Tips, Sample Policy) IV. Bonus Slides Tips from the Valley (Golden Valley Services Merced, CA) 2
2 Objectives of today s session Discuss how succession planning is important in the CHC setting and why it is hard to get it right Focus on CEO Succession Policy and planning Gain information on tools and tips to take back home to open the dialog, launch, enhance and/or improve succession planning efforts 3 I. General Overview Succession Planning Why Do It? Qualified staff are essential! We need them! The age of CHC Program & early leaders Vacancies in key positions occurring in many organizations, simultaneously Demographics indicate statistically fewer people available to fill vacancies 4
3 I. General Overview Succession Planning Why Do It? TO: Nurture career development Create a career ladder for emerging leaders Introduce new blood and new ideas Avoid lost opportunities for growth of organization 5 I. General Overview Succession Planning Why Do It? To: Avoid loss of institutional & movement memory Strengthen well being of Center 6
4 I. General Overview Succession Planning Why Do It? Baby Boomer retirements on the rise just when the economy is growing & demand for senior management expertise is increasing No influx of potential new employees on the horizon as in past generations (i.e. baby boomers, women entering the workforce) 7 What is it: It is a written policy adopted by the Board of Directors It includes a Plan and Procedures It is available for OSV review It respects requirement for HRSA Oversight of final CEO decision 8
5 What is it? It is a dynamic process that anticipates change & upward mobility and: Is respectful of all Is considerate of individual careers Circumvents train wrecks Is both long term and short term Provides a guide but is not rigid Is not an entitlement for anyone things change 9 Characteristics it is: Systems oriented About managing change About minimizing business risk A multi level, team plan Engages those involved Supports planned career development 10
6 When it works well, it: Facilitates conversation Defines info: confidential or public Is separate from annual evaluation Makes no promises that cannot be kept Precipitates no adverse action Dismisses no one 11 Select a Focus Tool can serve multiple purposes: PICK ONE o Personal reflection and goal setting o Professional development o Advanced training/ceu/ o Cross training o Setting career goals o Setting corporate goals o Anticipating transitions 12
7 Introduce the Conversation Select a desired focus for the conversation, and time frame Ask open ended questions to facilitate exchange of information. Make it an ongoing conversation over an extended period of time 13 Personal and Professional Career Planning Tool 14
8 Introduction to the Tool (Cont d) 15 NCFH For purposes of today s Conversation, we will focus on CEO LEVEL SUCCESSION PLANNING 16
9 II. CEO Succession Real Life Examples Plan Type Emergency Plan The Long Range Retirement Plan The Rolling 18 Mo Plan The Interim Non Contender Plan The In House Multi Competitor Plan The Chosen One Plan Characteristics AKA the Mack Truck Plan Plenty of advance notice often creates speculation Never set an exact date, always 18 months out A6 12 month hired Change Agent to get new blood, new perspective A great way to lose valuable leaders CEO Successor is hand picked and groomed in advance Internal/External Recruitment Plan Keeps everyone on their toes, cause for high anxiety levels 17 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type Emergency Plan Characteristics AKA the Mack Truck Plan If the CEO were to leave unexpectedly (for any reason) would your Board be prepared? 18
10 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type The Long Range Retirement Plan Characteristics Too much advance notice may create unnecessary speculation and anxiety among staff 19 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type Characteristics The Rolling 18 Mo Plan Never set an exact date, always 18 months out 20
11 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type The In House Multi Competitor Plan Characteristics A great way to lose valuable leaders 21 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type Simultaneous Internal & External Recruitment Plan Characteristics Keeps everyone on their toes, cause for high anxiety levels 22
12 II. CEO Succession Plan EXAMPLES Plan Type Characteristics C. Interim Non contender Plan A 6 18 Month Contracted Change Agent to bring new perspectives, new blood and clean house before launching competitive search. New Broom Old Broom 23 II. CEO Succession Plan REAL LIFE EXAMPLES Plan Type The Chosen One Plan Characteristics CEO hand picks potential successor, he or she is groomed and mentored in advance Remember: The final decision always belongs to the Board of Directors 24
13 AUDIENCE: For those who expect a CEO level transition in the next 5 years at your health center, do you have a written transition plan in place? A. Yes B. No C. Don t Know 25 AUDIENCE: For those who have experienced a CEO level transition in the last 5 years: Was the outcome successful? Yes....? No? Care to Share? 26
14 I III. Intro to NCFH Resources Personal and Professional Career Planning Tool Sample CEO Succession Policy and Plan 10 Tips 27 SAMPLE Succession Policy 28
15 EXCERPT from NCFH Policy Sample The Board of Directors is responsible for implementing this policy and its related procedures through the development of a leadership transition and succession plan appropriate to the circumstances, which addresses the position of President & CEO of [ Center Name]. Plan A and Plan B are described below: 29 Excerpt from NCFH Policy Sample Plan A (Short Term or Unexpected Vacancy & Transition Plan) is designed to address a vacancy which occurs for a short term period, or on an unexpected basis. Plan B (Advance Notification Anticipated Vacancy & Succession Plan) is designed to address a planned transition for which advance notification is provided and a vacancy is anticipated at least 12 months in advance. 30
16 Lessons Learned: Plans can change & can backfire Perspectives & perceptions are very personal Employment is very personal Designate trusted & objective person to manage process Time flies budget it carefully 31 One Center s CEO Transition Experience You mean we have to get a new one? John Price Board Member Golden Valley Centers 32
17 Picture This: CEO Transition Our CEO just told us that he or she will retire in 6 months. Oh no. What do we do? 33 In Denial? It is helpful to remember the counsel of Elizabeth Kubler Ross Stages of Grief Denial Anger Bargaining Depression Acceptance DABDA 34
18 CEO Transition Step One Don t Panic Step Two: Don t Panic Step Three: Don t Panic Step Four: Get out of Denial. It is going to happen. Step Five: Implement your plan. What? You have no plan? 35 CEO Transition We have no plan so what do we do now? 36
19 CEO Transition Hire an interim CEO that doesn t want to be the permanent CEO. The interim needs to be a buffer between the departing leader and the new leader. There are good reasons for this. Get some help. Professional help. Secure a consultant or coach to guide you and do the task and work to be done. 37 Tips from the Valley Establish a CEO Transition Committee of the Board Establish a CEO Transition Committee of some key staff, representing the stakeholders of the corporation. 38
20 CEO Transition Assessment of the Organization Assessment of the Corporation Find out who you are. Not what you think you are, or what you have been told what you are, but what others see and think you are. Survey Staff. Use your Staff CEO Transition committee for help and feedback. Survey Strategic Partners Survey Community Stakeholders Survey Collaborative Partners 39 CEO Transition Assessment of the Organization Assessment of the Board Assess the Board and its effectiveness Assess the strengths and weakness of individual Board Members. Learn how you work together. 40
21 CEO TRANSITION Assessment of the Corporation and the Board is complete. What do we do about the stuff we don t like. What happened to us? How do we repeat the stuff we do like? Redefine, or Recommit to your Mission, Vision and Values THIS WORK WILL HELP YOU DEFINE WHAT LEADER YOU NEED 41 CEO TRANSITION Define the Skills, Ability and Experience you need in your new Leader Define, if you dare, the Temperament and Personality you discern that you need for your corporation s new Chief Executive Officer. I know. That is scary 42
22 CEO TRANSITION Define your CEO Candidate Profile People out there need to know what you want. Develop your announcement Broadcast your announcement to the targeted area. Distill the resumes and rank them to come up with a list of candidates Interview the top ten Candidates Skype Video In Person Distill the list to the top three Candidates 43 CEO TRANSITION Interview the top three candidates Personal, face to face interviews Tour the facility or facilities as is appropriate. Watch the interaction of the candidates and the staff. Get feedback from staff, as appropriate. Convene the Board to choose a new Leader. Discuss the parameters of the CEO Compensation Package Appoint a designated person, (if you haven t already) to meet with your CEO Candidate to negotiate the contract and establish the timeline for bringing them on board the corporation. 44
23 CEO TRANSITION Celebrate the arrival of the new CEO. Introduce the new CEO to the Community and Staff. Meeting with Board committee and new CEO to review performance goals and clarify system for performance evaluation. Establish an Onboarding process that allows for continued coaching and training of the new CEO. This process can be critical. Because 45 CEO TRANSITION In the 2011 Daring to Lead, national study of nonprofit leaders, found that among current executives, 33% followed a leader who was fired or forced to resign indicating the frequency of mis hires and unclear expectations between boards and executives. New leaders need intentional support and development as they build efficacy in the role. This level of on boarding distinct from new hire orientation is essential to a new leader s long term success, yet often absent from many nonprofit transition processes. 46
24 IN CLOSING: I believe that we are solely responsible for our choices, and we have to accept the consequences of every deed, word, and thought throughout our lifetime. Elizabeth Kubler Ross 47 CEO PERSPECTIVE 16 overcoming resistance to succession planningbroadening the lens 48
25 What does HRSA offer? Internet search: Enter Sample Succession Planning Work plan BPHC Archive for 3 key documents: 1. Sample Succession Planning Manual 2. Sample Succession Planning Policy 3. Sample Succession Work plan 49 Succession Planning Bobbi Ryder, President & CEO National Center for Farmworker (NCFH) Buda, TX Bonus Slides Compliments of: John Price, Board Member and Former Chair and Golden Valley Services, Merced, CA 50
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