CONSIDERATIONS AND

RECOMMENDATIONS

Northeast Institute for Quality Community Action : CAA

Leadership Succession Planning

GOALS AND TAKEAWAYS

Define and ID Rationale for Succession Planning Identify Critical Factors to consider when drafting

a Succession Plan Identify Essential Components of a successful

Succession Plan. Identify Resources for Planning support and

assistance.

PREPAING TO PLAN: CONSIDERATIONS

“To fail to prepare is to prepare to fail.” (John Wooden, UCLA Hall of Fame Basketball Coach)

PREPARING TO PLAN

What is Executive Succession Planning?

“A Structured Process to Ensure Organizational Leadership Continuity in Key Positions and Retain and Develop Critical Knowledge Capital and Strategic Relationships for the Future.”*

*Federal Reserve Bank of Kansas City, Nonprofit Executive Succession Planning Toolkit

PREPARING TO PLAN

Why Plan ????

Proactive vs. Reactive Response to

Inevitable Change or Possible Emergency.

Ensure Orderly Key Agency Leadership Stability and Continuity During Periods of Transition or Service Interruption.

Avoid Potential Disruption Associated with Confusion, or Anxiety of Key Internal/External Stakeholders.

ID/Promote Development of Internal Leadership.

PREPARING TO PLAN

Contingencies to be Considered:

Short term, planned or unplanned service interruptions. (3 months or less)

Longer term, planned or unplanned service interruptions. (more than 3 months)

Permanent transitions. (planned or unplanned)

PREPARING TO PLAN

What might be some issues or questions which need to be considered in drafting and implementing an agency leadership Succession Plan?

PREPARING TO PLAN

Potential Issues – Questions.

* Board Ambivalence

* Executive Ambivalence

* Staff Concerns

PREPARING TO PLAN

TOPICS (CHANGE/LOSS) MAY BE UNCOMFORTABLE FOR LEADERS.

* Board Ambivalence (Other Priorities; Denial, Concerns Reg. Message to ED and Other Key Stakeholders.

* Executive Ambivalence (Threat, Lame Duck, Mixed Message to Staff and Stakeholders)

* Staff Anxiety.

PREPARING TO PLAN

Building a Foundation for Planning:• Board Chair Discussion with Ex.

Committee Leadership and ED.

• Full Board Discussion/Action.

• Key Stakeholder Communication (as appropriate).

PREPARING TO PLAN

ARE YOU PREPARED TO PLAN?

Board / Mgt. Commitment?

Updated Strategic Plan informed by external and internal needs assessments?

Current ED/CEO Job Description?

ARE YOU PREPARED TO PLAN (CONT)?

Updated List of ED/CEO Essential Leadership/Management Responsibilities (daily – weekly – monthly – other).

Updated Org. Chart – Key Senior Staff Job Descriptions-Reporting Relationships.

Key Documents List/Location – Key Stakeholder Listing.

PREPARING A PLAN

ROLES & RESPONSIBILITIES: *BOARD: Initiator – Decision-Maker - Communicator –

Advisor *EXECUTIVE:

Advisor – Plan Manager/Committee Support – Information Resource – Communicator.

PREPARING TO PLAN: CONSIDERATIONS.

Decide if Outside Assistance (Consultant, or Advisor) is needed.

Assign Responsibility for Plan Development:

*Appoint a Special Ad Hoc Planning

Committee or,

*Assign to an Existing Committee (e.g.,

Executive, Governance, Personnel, etc). Determine the Role of Executive/CEO in the

Planning Process.

PREPARING A PLAN

TO DO’S:

DEFINE SCOPE (e.g., Executive Only; Executive + Selected Senior Managers; etc.

ESTABLISH TIMETABLE – DEV. WORKPLAN.

ASSIGN-ALLOCATE RESPONSIBILITIES AND RESOURCES (People, Funds, etc).

COMMUNICATE.

PREPARING TO PLAN

Types of Plans: Emergency – Short Term Leadership Service

Interruption ( Up to – 3 Months … e.g., Illness/ Injury, Personal Matter, etc).

Extended Leadership Service Interruption (+ 3 Months (e.g., Illness, Military, Education, etc).

Planned/Unplanned Permanent Leadership Transition …. e.g., Retirement, Resignation.

EMERGENCY-SHORT TERM INTERRUPTION UP TO 3 MONTHS

Develop a Notification Protocol (e.g., Bd. Chairman)

Communication Protocol to Activate Plan:

* Executive Committee

* Appointment of Acting (Internal Designee) or Interim Director

(External Professional).

(3 months continued)

Communication Protocol Continued:

* Board of Directors.

* Senior Managers – Staff.

* Key Stakeholders (Funders, etc).

Up to 3 months continued

Review/Confirm in Writing the Acting or Interim Director’s Authority, Responsibilities, Accountability, Support, and Compensation.

Review/Confirm Any Adjustment of Senior Manager – Board Officer (e.g., Treasurer) Roles and Responsibilities During Period of Service Interruption.

LONG TERM INTERRUPTION+3 MONTHS

Notification Same as Short TermLevel #1 Communication-Action Protocol to Activate Plan:

*Executive Committee Meeting.*Decision: Hire Interim Executive (External)

or Confirm Appointment of Acting Director (Internal) for Duration of Absence.

*Confirm Short/Long Term Responsibilities of Acting Director.*Draft Contract for Interim ED (if needed), ID

Responsibilities for Search/Screening/Hire.

Long Term Interruption Plan

Level # 2. Communication Protocol:*Board of Directors.*Managers – Staff*Key Stakeholders.

Review/Confirm Acting/Interim ED’s Authority, Responsibilities, Supervision and Support.

Review/Confirm Adjustment of Senior Manager – Board Officer Roles and Responsibilities for Duration of Interruption.

Review/Confirm Compensation Eligibility/Adjustments for Executive and any Other Personnel not Addressed via a Contractual Agreement.

PERMANENT LEADERSHIP TRANSITION

Unplanned:*Follow Protocol for Emergency Leadership Interruption with the following Additional Executive Committee Responsibilities:

*Decision to Recruit/Employ an Interim ED Appoint an Acting Director.

* Appointment of an Executive Search Committee.*Decision to employ Search Consultant.

*Communicate with Key Stakeholders.* Initiate Planned Succession Transition Protocol.

PERMANENT LEADERSHIP TRANSITION

PLANNED TRANSITION (e.g., Retirement):1.Notification of Board Chairman (6-12 months).

2.Notification of Stakeholders (Board, Staff, Funders)

3. Appointment of Search Committee with Specification of Responsibility, Timetable,

Support/Resources (e.g., Staff, Budget, etc).

PERMANENT LEADERSHIP TRANSITION

PLANNED (CONT.):4. Committee Review of: Job Description, Strategic

Plan/Mission and Vision Statements, Org. Chart.5. Committee Organizational Assessment/Scan:

*Selected Board Members*Selected Staff*Selected Funders/Supporters*Selected Community Leaders.

PERMANENT LEADERSHIP TRANSITION

PLANNED (CONT.):

6. Finalize Job Description – Qualifications – Critical Skills/Experience – Compensation.

7. Initiate Search – Screening- Selection Process.8. Negotiate Employment Terms and Conditions.9. Hiring Recommendation – Board Action.10. Announcement of Hiring to Internal/External

Audiences.11. New ED Board Orientation – 30, 45, 90 Day Updates.

WRAPPING UP

Succession Planning = An Investment in Organizational Leadership Continuity/Talent Mgt.

Preparation:*Acknowledgement of Need- Commitment.*Decision on Scope – Assignment of Roles and

Responsibilities.*Communicate – Anticipate/Address PossibleStakeholder Issues/Concerns*Collect Essential Information/Documents.

WRAPPING UP

TAKE ACTION: PREPARE AND ADOPT AN AGENCY PLAN

* Scenarios: 1. Short-Term/Emergency Service Interruption; 2. Long-Term Service Interruption

and, 3. Permanent Transition.

*Within Each Scenario ID:.Roles, Responsibilities and Resources Required..Action Steps – Timetables.

*Board Plan Adoption – Implementation.

Resources

www.kc.frb.org/Federal Reserve Bank of Kansas City. Nonprofit-Executive-

Succession-Planning-Toolkit. “Inclusive executive succession planning toolkit with strategies, guidelines and templates…”

http://www.aecf.org click on Publications, keyword: succession planning.

Casey Foundation. Staying Engaged, Stepping Up. “How Boards can Prepare for and Manage Transitions and

create Sustainable Leadership”

Casey Foundation. Building Leaderful Organizations. Framework for Succession Planning Activities.