Succession Planning Strategic Leader Development. Succession Planning. Thought of the Day.
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1 Succession Planning Strategic Leader Development Center for Community-Based & Nonprofit Organizations Candyss Bryant (512) Succession Planning 2 What is succession planning? Why should my organization engage in succession planning? Key items to consider Steps to get you started Additional resources Thought of the Day. 3 Preserve your organizational knowledge!
2 Definition of Succession Planning 4 Simply Put: Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions. Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available. Preserving your organizational knowledge! What is the Importance? 5 The demand for effective nonprofit managers and leaders is growing Baby boomers are retiring Executives of the future are expected to be more sophisticated in order to develop and lead through technological advances. Justification for Succession Planning 6 Be prepared for emergencies as well as planned departures Provide consistency to stakeholders (constituents, funders, etc.) Reduce stress on staff and board during transition Retain knowledge, expertise, history, and relationships Maintain the organizational culture Provide employees with opportunities for development and growth Continue its strategic direction with minimal interruption
3 Life Stages of Organizations 7 During each life stage of an organization, the role of the board and that of the chief executive officer change. The skills, motivation, and expertise needed are different at each stage not better, just different. It s important for the leadership of an organization to know where in the life cycle the organization is so they will know what skills, knowledge are needed It is important to know what risks and opportunities exist. 8 9 Should we just be concerned about top management?
4 It s not just about the top. 10 It's getting the right person in place for every job. Some of tomorrow's key jobs/positions may not even exist now. Effective Succession Planning 11 Requires a strong partnership, built on trust between the Executive Director and his or her board of directors. Is an indicator of a healthy nonprofit organization, something to look for before funding an organization or sitting on a nonprofit board. So Where Do We Start? 12 Effective Leadership Leadership Development
5 Effective Leaders 13 Lead from an intense and timeless reverence for their people Create a culture of sustainability centered around people (and how they relate to the mission), not products or services, or even the bottom line Ex Doing business with people not the product Find the right people, show them how good they are, and get out of their way. - Brad Fregger Leaders in organizations.. who manage the most successful organizations Realize that their company s most significant value is not their products or services, but the people who make them possible. 14 Realize that productivity and profitability required to maintain competitive advantage also comes from a focus on people and not the measures themselves Realize that to sustain long-term success means finding a way to deal with the inevitable crises and changes along the way, whether they be economic, technological, political or human 3 Key Principles 15
6 You Inspire, Build Trust and Earn Respect With Predictability 16 Understanding Control Compassion Quick Question 17 Describe how a working environment feels when it is characterized by low levels of trust? Describe how a working environment feels with high levels of trust? Tip 18 Fostering a trusting culture will give you a competitive advantage for talent and dedicated loyalists. Trust from a CEO, or person of authority, comes easier because he/she is normally is a greater position of authority/leverage. However the VP must consider things such as intentions and integrity when making decisions to trust.
7 Situational factors for trust building: Security 2. Number of similarities 3. Alignment of Interests 4. Benevolent Concern 5. Capability 6. Predictability 7. Integrity -- Robert F. Hurley Leadership Development 20 Create a match between the organization s future and individual aspirations. Provide growth opportunities Today, the average college graduate will change jobs five times in his or her career. Within the next decade, this norm will probably increase to seven job changes. Recruiting and retaining leaders becomes an economic and strategic challenge. -- Robert M. Fulmer, PhD, Pepperdine University Succession Management
8 Succession Management 22 Interface between the human resource function and the strategic direction of an organization. Anticipates the future needs of the organization and helps find, assess, develop, and monitor the human capital required by the organization's strategy. Reflects the concerns and needs of professionals throughout the organization. Continuous annual process. Journey, not a destination. A couple of questions. 23 Do you know what competencies and or critical skills that are needed for your organization s future growth. If no, how do you fill your board and staff positions? Do you know who your Bright Lights/Stars are? Does your board have the right mix of representatives for hiring a new executive director? When was the last time succession was on your board agenda? If the Agency has The result will 24 be: Vision Incentives Incentives Competencies Competencies Resources Resources Action Plan Action Plan = Motivation & Growth = Confusion & Drudgery Vision Competencies Resources Action Plan = No Motivation & slow or no growth Vision Incentives Resources Action Plan = Anxiety & Failure Vision Incentives Competencies Action Plan = Frustration & Limited Growth Vision Incentives Competencies Resources = Uncertain & False Starts
9 Some Succession Objectives: 25 Monitor Future Needs Do you assess external and/or internal factors to your organization on an annual basis? Talent Assessment Do you have a core set of competencies? Developmental Activities Do you match training and development up to your identified competencies? Measure Performance Are you true to evaluation processes. Create a development plan with staff. 26 Prioritization Succession Plan Taken from a Hall Consulting presentation in March, 2003 Strategies 27 KISS method- Make the process logical Alignment- Align succession management within overall mission, vision and core values. Cross Train- Secure executive support- It is imperative for top management/leadership s endorsement and support. Share it widely - it is important to inform your staff, board, external stakeholders and funders.
10 28 Strategies Keep Everyone Excited Know your team What makes them special and unique? Train them to succeed Ask for their input (get them involved) Give them regular feedback Praise in public and reprimand in private Allow them to succeed Paint the vision and the possibilities 29 Strategies Motivating Exceptional People Trust them with honest communication. Really listen to their opinions and concerns Respect their ideas. Know they are critical to accomplishing the objectives of the team. 30 Common Mistakes in Succession Planning Ignoring It Not considering all the issues Waiting until the last minute
11 When Can Succession Planning Begin? NOW! 31 A good time to take a look at succession planning is when creating the annual budget. Look at how many resources can be dedicated to staff training and development and to board leadership development. Key Questions to Ask 32 What are the distinctive leadership capabilities that will enable is to implement our business strategy effectively. (competencies) How many and what kinds of managers will be required to implement our business strategy? What are our objectives regarding diversity in management? Do we have the talent across the organization that will match requirements? Are development plans in place to build needed capabilities and to provide job experiences, education and other learning experiences. Are we retaining our critical talent? Are we recruiting talent that brings distinctive capabilities to the organization? 33 WE ARE REALLY NOT TALKING ABOUT ANYTHING DIFFERENT THAN BOARD MEMBER SUCCESSION
12 Achieving an effective high performing Board 34 The Board Building Cycle, Board Source, 2003 Recruiting talented and energetic people 35 Let s talk about this for a minute 36 A C r B
13 Additional Resources 37 CEO Succession by Dennis C. Carey and Dayton Ogden, Oxford Press Effective Succession Planning by William J. Rothwell, AMACOM Systematic Succession Planning by Rebecca Luhn Wolfe, Ph.D., Crisp Publications Chief Executive Succession Planning by Nancy Axelrod, BoardSource Succession: Arts Leadership for the 21 st Century, Illinois Arts Alliance Foundation CEO Succession Planning, Suntop Media Web site:
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