Succession Planning Leadership Development Rita Bornstein Ph D

Succession Planning & Leadership Development Rita Bornstein, Ph. D. Rollins College, President Emerita & Cornell Professor of Philanthropy and Leadership AGB Board of Directors Copyright 2010 © AGB www. agb. org

Implications of Current Trends • Searches will take longer • Candidates younger & less experienced • More non-academics • Fewer women & minorities • Longer presidential tenures • Increased presidential job-hopping Copyright 2010 © AGB

Problems in the Presidency • Short term: Illness, family emergency, etc. • Long term:

Ready for Change? READY FOR A CHANGE IN LEADERSHIP? • Prepared to launch an effective search? • Identified needed presidential qualities? • Identified potential internal candidates? • Considered appointing internal candidate without search? • Aware of obligations to a new president? Copyright 2010 © AGB

The Succession Plan • Institutional SWOT analysis • Leadership criteria • Search process (committee, consultant) • Assimilation process • Development of internal candidates Plan: Written, reviewed at least annually; all trustees involved. Copyright 2010 © AGB

Leadership Development: The Need • Survey: Just 41% of sitting presidents said they were well prepared for their 1 st presidential position. • Underprepared in: Fundraising, lobbying, budgeting & financial management, board relations, pace of job, dealing with faculty. • Sink or swim Copyright 2010 © AGB

Leadership Development: The Program • Content: History, organization, financing, governance of higher education. • Managing people. • Managing change. • Ethical decision making. • Presidential responsibilities. • Innovative, collaborative, integral leadership Copyright 2010 © AGB

Leadership Development: The Experience • Mentoring • Shadowing • Coaching • New challenges &

Role of Human Resources Provide guidance & support on: • Succession planning • Search

Internal Candidates • Bias against insiders: Liability of familiarity • Preference for national search • Data: Insiders do better in CEO role • Corporations: Over 50% of new executives hired from outside leave within three years • Higher education: Insiders have higher rates of retention & success • Forgoing national search Copyright 2010 © AGB

Beware Charismatic Outsiders • Jim Collins, Good to Great: “Larger than life, celebrity leaders who ride in from the outside are negatively correlated with going from good to great. ” Copyright 2010 © AGB

Consequences • Unprepared boards: Haste, failed search, poor choice, unhappy constituents, harms institutional reputation, reduces confidence in board. • Prepared boards: Smooth transition, new president accepted by constituents, enhances institutional reputation, builds confidence in board. Copyright 2010 © AGB