Leadership and Legacy Ensuring Your Organizations Future Impact through Succession Planning

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Leadership and Legacy Ensuring Your
Organizations Future Impact through Succession
Planning

• Making Voices Count for Kids 2006 Joint
  Conference
• September 21, 2006

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Why Plan for Succession?
Advanced planning for changes in leadership helps
to minimize risk during transitions, and supports
organizational sustainability.
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Developing a Shared Language

• Succession planning
• Sustainability planning
• Legacy planning
• Executive transition
• Executive search
• Executive transition management
• Interim Executive

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EXECUTIVE TRANSITIONS ON THE RISE

• According to surveys 2001-2006

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HIGHLIGHTS FROM 2004 RESEARCHNational Leadership
Transition Study

• Fall 2004, 2,200 responses, mostly human
  services, evenly split small-medium-large
• Moving from relative stability to instability at
  the top
• 65 anticipate executive transition within five
  years.
• 57 had an executive transition in the past 10
  years.
• 60 are first-time executivesonly 1/5 plan to
  take another ED position in the nonprofit sector.
• 34 are founders or long-term executives
• Transitions will likely occur in two waves
• 55 of EDs are over 50
• First wave by 2010, another by 2020
• 57 of boomer EDs plan to leave by 2010

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Bridgespan Group The Nonprofit Sectors
Leadership Deficit March 2006

• Over next decade, nonprofits will need to attract
  640,000 new senior managers, the equivalent of
  2.4 times the number currently employed
• With sector consolidation, could drop to 330,000
  on other hand, given historic trends, could well
  increase beyond 1 million
• By 2016, will need 80,000 new senior managers per
  year
• see www.bridgespan.org for details

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Executive Transition Management Process Overview
Target Result A positive, forward-looking
relationship between an executive who fits the
current and future leadership needs of the
organization and an organization (including the
board) that is prepared to work with him/her.
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Objective of Executive Transition Management

• A positive, forward-looking relationship
• between an executive who fits the current and
  future leadership needs of the organization and
• an organization (and board) that is prepared to
  work with him/her.

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Planned Departures begin with Private Musings
Sabbatical?
Vacation?
OR, is it time for a REAL CHANGE?
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Transition Coming to Terms with Change
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Legacy

• For the Organization
• Our Impact The difference we make, and
• How we make that difference our values,
  principles, methods
• For Individuals
• Our personal contribution
• How wed like to be remembered

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Leadership Development and Succession Planning
Two Philosophical Approaches

• Replacement
• Leader-Development (on-going)

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Leadership Development and Succession Planning
Replacement Filling a position after the
planned or unplanned departure of a leader.
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Leadership Development and Succession Planning
Leader-Development (on-going) A strategic
approach to talent management that puts people
with the right skills abilities into leadership
roles in a timely fashion for the organization
the individuals development.
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Emergency Succession PlanningGetting Started

• Decide on position(s) for which plan is being
  developed usually simplest to begin with
  executive director
• Orient Board and any involved managers or staff
  as to how succession planning is risk management
  confront any fears
• Decide on role of Board in developing policy
  partner in developing or review and approve
• Move forward with process steps review/use
  template or workbook

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Emergency Succession PlanningCritical Elements

• Understand the Key Functions, Roles
  Relationships of the Executive
• Designate back-up coverage in case of unplanned
  absence
• Develop Implement Cross-Training Opportunities
• Develop Definitions, Procedures Protocols for
  integrated Staff and Board Emergency Response
  (e.g. what, when, who and how)
• Develop Transition Management Policy
• Prioritize Capacity Building to Continue
  Positioning for Effective Transition Management
• Circulate, review and refresh annually

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Strategic Leader Development PlanningCritical
Elements

• Convene Strategic Visioning or Planning
• Develop Agreement on Strategic Direction
• Understand the dominant Organization Culture and
  Driving Forces
• Understand the Key Functions, Roles
  Relationships of the Executive other key
  leaders
• Develop annual leadership recruitment and
  development plan and integrate into ongoing
  strategic planning
• Review and refresh annually

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Departure Defined PlanningCritical Elements

• Executive does personal planning and decides on
  timeline for departure coaching and/or Next
  Steps workshop may be helpful
• Decide on when departure announcement is public
  and priority actions before departure
• Inform Board leaders and form and convene
  Transition Committee when appropriate
• Design Transition Management Process (see
  previous ETM slides)
• EMBRACE THE JOURNEY

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Sustainability Planning

• An organizational review that explores the
  capacity to sustain over time
• People leadership and key staffing
• Programs
• Financial support -

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Are You Ready to Begin Planning?
Departure-Defined Succession
Capacity-building Strategies
Strategic Leader-Development Succession Planning
Emergency Succession
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LEADERSHIP TRANSITION RESOURCES

• Detailed Bibliography
• See WWW. TRANSITIONGUIDES.COM for
• Overview of General Executive Transition
  Resources
• Resources Specifically For Founders and Board
  Members in Organizations with Founders
• Succession Planning- Nonprofit and for profit
• Family Owned Businesses and Succession
• Interim Pastor Literature
• Entry for Successors

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              Next Steps Workshop for Founders
Long-Term Executives Annie E. Casey
Foundation Baltimore, MDNov.30 - Dec. 1, 2006
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• Prepare,

Pivot
and Thrive