Preparing Your Organization for the Future Executive Succession

Preparing Your Organization for the Future: Executive Succession Planning Sue Ogle, ESC Consultant MNN Annual Conference Session #1 – 10: 45 -12: 00 pm October 29, 2014 ESC of New England 176 Federal Street, Suite 5 C Boston, MA 02110 (617) 357 -5550; www. escne. org

Introduction Questions n How many are ED’s? Other positions? n Years as an ED or other position with your organization - New – 2 years - 2 – 5 years - 5 – 10 years - 10 – 20 years - Over 20 years n How many have a succession plan? 2

Overview: 3 P’s Purpose: n For participants to learn guiding skills and frameworks to ensure successful leadership transition in the future Process: n Packet, small and large group discussions, presentations, worksheets, templates, assessments, each other Payoff: n Participants will have a better understanding of the necessary components to plan and execute an executive transition 3

Succession Planning Basics: What is Succession Planning, & why do we need it? n Succession Planning is a process to assure timely and effective continuity of organizational leadership - Planning for a smooth transition - Preparing for the unexpected - Planning for the worst case scenario n Succession planning is the responsibility of the Board and Executive Director n It assures Continuity of Leadership n Leadership transition is inevitable 4

Why is this vital for your organization’s future? In a survey of nonprofits: n 67% of nonprofit executives anticipate leaving within five years n 33% of current executives followed a leader who was fired or forced to resign n 40% of executive transitions fail within the first 18 months n Only 17% of nonprofits have a documented succession plan Source -- Daring to Lead: A National study of Executive Directors, 2011 5

Organizational Assessment n Complete the “Organizational Assessment” checklist individually using Handout #1 n In groups of 2 -3, identify and discuss one strength and one weakness. 6

Types of Executive Transition What would happen if your ED were not available to work starting tomorrow? ESC of New England 176 Federal Street, Suite 5 C Boston, MA 02110 (617) 357 -5550; www. escne. org

Unplanned/Emergency Transition Unplanned departure of key executive without lead time n n Immediate action steps by board: 1. Meets to confirm or decide upon acting executive 2. Establishes a board transition committee 3. Clarifies role/responsibilities of acting executive, who on board will provide supervision/support 4. Clearly communicates short-term plan and timeline for permanent replacement 5. Reviews security issues and signatories 6. Reaches out to external stakeholders, funders, supporters, etc Handout #2: Emergency Succession Plan Template 8

Defined Departure n Planned departure of key executive with significant lead time n Areas to be addressed: - Identifying and passing on skills, knowledge and key relationships - Training and developing management skills for current staff - Strengthening governance functions - Establishing requirements and process for replacement - Developing search plan 9

Executive Transition Management (ETM)* Transition and Search Planning n Preliminary transition planning Organizational assessment n • SWOT analysis Clarifying organization’s strategic direction Transition associated implications (ie interim executive) Capacity building efforts to smooth the way for the next executive director Qualities, qualifications desired in new executive Handout #2: Emergency Succession Plan Template *Staying Engaged, Stepping Up: Succession Planning & Executive Transition Management For Nonprofit Boards of Directors (Annie E. Casey Foundation) 10

Executive Transition Management (ETM Search, Selection and Organizational Preparation n Candidate recruitment and screening - Establish large pool of diverse, qualified candidates n Develop procedures for conducting interviews & checking references n Change is time of both organizational vulnerability and heightened opportunity n Prepare appropriate send-off of current executive, celebrating her/his legacy n Handout #3: Sample Transition Process & Timeline 11

Executive Transition Management (ETM Post-Hire Launch and Support n Plan and conduct appropriate welcome for new executive n Board and new executive create a “leadership agenda” 12 -18 months n Board mentor(s) for new executive n Define systems for monitoring board and executive performance n Review strategic plan and agency vision 12

Potential Resources n Handout #1: Organizational Assessment n Handout #2: Emergency Succession Plan Template n Handout #3: Sample Transition Process & Timeline n Handout #4: Transition Pitfalls n Handout #5: Actions to Launch/Expand Succession Plan 13

Overview: 3 P’s Purpose: n For participants to learn guiding skills and frameworks to ensure successful leadership transition in the future Process: n Small and large group discussions, presentations, worksheets, templates, assessments, each other Payoff: n Participants will have a better understanding of the necessary components to plan and execute an executive transition 14

Thank you for your participation! ESC of New England www. escne. org