Succession Planning Strategic Leader Developmenttcfv.org/pdf/2010-EDC/TCFV_Succession_Planning.pdfDefinition of Succession Planning Simply Put: Succession planning is a process for

© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College

Succession PlanningStrategic Leader Development

Center for Community-Based & Nonprofit Organizations

www.nonprofitaustin.org

Candyss Bryant (512)223-7051 [email protected]

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Succession Planning

What is succession planning?

Why should my organization engage in succession planning?

Key items to consider

Steps to get you started

Additional resources

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Thought of the Day….

Preserve your organizational knowledge!

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Definition of Succession Planning

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!

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What is the Importance?

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.

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Justification for Succession Planning

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

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Life Stages of Organizations

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.

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Should we just be concerned about top management?

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It’s not just about the top….

It's getting the right person in place for every job. Some of tomorrow's key jobs/positions may not even exist now.

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Effective Succession Planning

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.

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So Where Do We Start?

Effective Leadership

Leadership Development

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Effective Leaders

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

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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.

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

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3 Key Principles

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You Inspire, Build Trust and Earn Respect

With Predictability

Understanding

Control

Compassion

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Quick Question

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?

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Tip

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.

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Situational factors for trust building:

1. Security

2. Number of similarities

3. Alignment of Interests

4. Benevolent Concern

5. Capability

6. Predictability

7. Integrity

-- Robert F. Hurley

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Leadership Development

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

mailto:[email protected]

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Succession Management

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.

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A couple of questions….

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?

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If the Agency has…The result will

be:

Vision IncentivesCompe-tencies

ResourcesAction

Plan

= Motivation & Growth

IncentivesCompe-tencies

Resources

Action

Plan= Confusion &

Drudgery

VisionCompe-tencies

ResourcesAction

Plan

= No Motivation & slow or no

growth

Vision Incentives ResourcesAction

Plan= Anxiety &

Failure

Vision IncentivesCompet-encies

Action

Plan

= Frustration & Limited Growth

Vision IncentivesCompe-tencies Resources

= Uncertain & False Starts

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Some Succession Objectives:

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.

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Taken from a Hall Consulting

presentation in March, 2003

Prioritization Succession

Plan

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Strategies

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.

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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

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Strategies

Motivating Exceptional People

Trust them with honest communication.

Really listen to their opinions and concerns

Respect their ideas.

Know they are critical to accomplishingthe objectives of the team.

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Common Mistakes in Succession Planning

Ignoring It

Not considering all the issues

Waiting until the last minute

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When Can Succession Planning Begin?

NOW!

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.

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Key Questions to Ask

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?

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WE ARE REALLY NOT TALKING ABOUT

ANYTHING DIFFERENT THAN BOARDMEMBER SUCCESSION……

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Achieving an effective high performing Board

The Board Building Cycle, Board Source, 2003

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Recruiting talented and energetic people

Let’s talk about this for a minute

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A

C

r

B

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Additional Resources

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 21st Century, Illinois Arts Alliance Foundation

CEO Succession Planning, Suntop Media

Web site: www.transitionguides.com

Succession Planning Strategic Leader Developmenttcfv.org/pdf/2010-EDC/TCFV_Succession_Planning.pdfDefinition of Succession Planning Simply Put: Succession planning is a process for

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