Joint Leadership Session 2017 National Education Conference & Expo

Joint Leadership Session Michelle Milligan, CGMP National President

Chapter Leadership Transition/Succession Planning Ann Koralewski, CGMP, CMP National 1st Vice President

Leadership Succession Planning Succession planning is a process for identifying and developing new leaders who can replace old leaders when they leave or retire. Why is succession planning important? It assures a continuity of voluntary leadership to sustain the organization and safeguard its mission. It prepares for vacancies before they occur. It builds human capital along with financial capital. It creates a pipeline of future leaders. It helps in creating a reputation as being a great place to volunteer. Succession planning is a process for identifying and developing new leaders who can replace old leaders when they leave or retire. Why is succession planning important? It assures a continuity of voluntary leadership to sustain the organization and safeguard its mission. It prepares for vacancies before they occur. It builds human capital along with financial capital. It creates a pipeline of future leaders. It helps in creating a reputation as being a great place to volunteer.

Leadership Succession Planning Succession planning is more important when boards are elected.  In organizations where board elections tend to be a popularity contest it is easy to end up with a board that lacks the wherewithal to do the job.  To minimize that risk, the board's approach to succession planning should be about creating a transparent process and an informed electorate. Succession planning is commonly connected to appointed board positions, however… Succession planning is more important when boards are elected.  There is a tendency for boards whose members are elected to be somewhat fatalistic about succession planning.  They seem to feel that it is a waste of time because matters are beyond their influence.  Alternatively, they feel that it would be inappropriate to attempt to influence an electoral process because that might be perceived as ‘manipulation’.  However, succession planning is perhaps even more important when boards are elected. In organizations where board elections tend to be a popularity contest it is easy to end up with a board that lacks the wherewithal to do the job.  To minimize that risk, the board's approach to succession planning should be about creating a transparent process and an informed electorate. I know you are thinking in your head right now, that’s all great, but how do we do that. Here are some suggestions:

Leadership Succession Planning You should have a formal succession planning program in place. This starts with a Nominations Committee. This program should be focused on identifying and recruiting new directors.  The primary purpose of this program is to ensure that the composition of the board is systematically refreshed to ensure the board contains directors with: skills and experience relevant to the chapter’s strategic direction and operating environment; and the knowledge and ability to work with colleagues to deliver the high standard of governance performance expected by chapter members. You should have a formal succession planning program in place. This starts with a Nominations Committee Now you are saying to yourself, “Another committee to create, staff and manage.” I’m saying to you, “No, you already have this committee… it’s called your nominations and elections committee.” Most chapters only utilize this committee when they are actively in an election cycle. However, there is work that needs to be done well before the National Board reaches out to you for your election information. Who should be on this committee? While during the election cycle itself, this committee must be comprised of members NOT intending to run for an elected board position, during preparation for the election cycle ALL board members should be ad hoc members of this committee. Ideally, this committee is chaired by the chapter’s IPP and has two to three permanent committee members. This program should be focused on identifying and recruiting new directors (even in advance of vacancies).  The primary purpose of this program is to ensure that the composition of the board is systematically refreshed to ensure the board contains directors with: skills and experience relevant to the chapter’s strategic direction and operating environment; and the knowledge and ability to work with colleagues to deliver the high standard of governance performance expected by chapter members.

Leadership Succession Planning When recruiting new directors it is important to be clear what competencies, skills and experiences are needed on the board and which ones, if any, are missing.  To assist in clarifying this information the board should ensure that there is an up-to-date director competency matrix.  The process of developing the matrix should describe the competencies, skills, and experiences of the current directors and the key ones required for new directors.  When recruiting new directors it is important to be clear what competencies, skills and experiences are needed on the board and which ones, if any, are missing.  To assist in clarifying this information the board should ensure that there is an up-to-date director competency matrix.  The process of developing the matrix should describe the competencies, skills, and experiences of the current directors and the key ones required for new directors. 

Director Competency Matrix Assess what competencies the board needs given the challenges faced by the chapter. Assess what competencies each existing director possesses.  Evaluate the extent of any competency gaps resulting from a comparison between steps 1 and 2.  Define a ‘information memorandum’ for the competencies a new director would need to bring to the board to fill defined competency gaps. The key steps in the competency matrix development process are likely to be as follows: Assess what competencies the board needs given the challenges faced by the chapter. The roles and responsibilities of directors and leadership are different but the capabilities of each need to be complementary. Consideration should also be given to weighting particular competencies. Note this first step is not an assessment of the competencies and skills the board currently contains.  Assess what competencies each existing director possesses.  This is done by asking current board members to self assess themselves and their colleagues relative to the matrix.  Those self assessments should be reviewed by the nominating committee as some directors tend to be excessively modest while others overestimate themselves. Evaluate the extent of any competency gaps resulting from a comparison between steps 1 and 2.  Define a ‘information memorandum’ for the competencies a new director would need to bring to the board to fill defined competency gaps. It is quite likely that a new director will need to ‘tick a number of boxes’. Consequently, it may be desirable, in the first instance, to develop information memorandums separately for individual directors (reflecting generic governance capabilities); board content specialists (e.g. to the extent that a director may be recruited to ensure there is a specific capability within the board); and board leadership roles (e.g. board and committee chairs). Candidates for the first two of these categories will be sought from outside the board but board leadership roles should, ideally, be filled from among incumbent board members.

Information Memorandum Even though these will vary in importance according to chapter need and current board make-up, information memorandums should be sufficiently thorough that they will provide the basis to assess potential candidates’: Academic and professional qualifications; Relevant experience; Demonstrated ability; Understanding of the chapter; Understanding of the industry Character; Personality and likely boardroom behaviors; and Ability to devote the time required. Even though these will vary in importance according to chapter need and current board make-up, information memorandums should be sufficiently thorough that they will provide the basis to assess potential candidates’: academic and professional qualifications; relevant experience; demonstrated ability; understanding of the industry; character; personality and likely boardroom behaviors; and ability to devote the time required. Once the active recruitment process is underway, information memorandums can be translated into clear statements of the contribution expected of candidates for the board. Ideally, information memorandums would also become the basis of position descriptions contained within the board's own governance documentation (e.g. chapter policy and procedures).  This would facilitate transparency in the subsequent evaluation of directors performance against applicable expectations. Both information memorandums and position descriptions should be reviewed on a regular basis. They should be benchmarked against emerging organizational challenges and evolving thinking about governance best practice. 

Leadership Succession Planning Chapters that are serious about their own sustainability will also be serious about planning for smooth and thoughtful transitions of leadership – as well as making sure their chapter is prepared for unexpected departures. Whether a transition occurs due to an unexpected vacancy on the board, or the anticipated transition of a long-tenured leader, being ready with a plan in place can help a chapter weather the inevitable challenges of leadership transition. Chapters that are serious about their own sustainability will also be serious about planning for smooth and thoughtful transitions of leadership - as well as making sure their chapter is prepared for unexpected departures. Whether a transition occurs due to an unexpected vacancy on the staff or board, or the anticipated transition of a long-tenured leader, being ready with a plan in place can help a chapter weather the inevitable challenges of leadership transition.

Leadership Succession Planning Stay transparent: succession planning should aim to identify ALL possible future leaders not just those hand selected to fill particular agendas. Identify leadership development opportunities for current and potential board members to expand their leadership skills so that the organization will have a "deeper bench" of future leaders. Cross-train current board members and committee chairs to minimize the disruption from unexpected board changes. Succession planning should be on the board meeting agenda regularly and remain a top of mind topic. A couple of “best practices” to leave you with before we leave the Succession Planning topic. Stay transparent: succession planning should aim to identify ALL possible future leaders not just those hand selected to fill particular agendas. Identify leadership development opportunities for current and potential board members to expand their leadership skills so that the organization will have a "deeper bench" of future leaders. Cross-train current board members and committee chairs to minimize the disruption from unexpected board changes. Succession planning should be on the board meeting agenda regularly and remain a top of mind topic. Make plans to adequately support newly-placed board members, such as with coaching, mentoring, and defining goals. On board deliberately: Help new board chairs and committee chairs feel confident and find their own voices.

Leadership Transition Chapter Leadership Transition Document Chapter meetings are the most important events throughout the year to demonstrate member value. Here are the things I recommend my successor address or complete in preparation for each meeting. Here are the things I recommend my successor address or complete during each meeting. Here are the things I recommend my successor address or complete in follow-up to each meeting. A successful succession plan will ultimately lead to the need for leadership transition. The Chapter Leadership Transition Document can lead you through transitioning an outgoing board member to an incoming board member. Chapter meetings are the most important events throughout the year to demonstrate member value. Here are the things I recommend my successor address or complete in preparation for each meeting: Here are the things I recommend my successor address or complete during each meeting: Here are the things I recommend my successor address or complete in follow-up to each meeting:

Leadership Transition Chapter Leadership Transition Document Being an effective leader and productive team member is also essential for all chapter board members. Here are the things I did do during all or most of my term in office year that my successor should know and practice. Here are the things I wish I did do all year—had I known then what I know now—that my successor should know and practice. Here are the things I suggest that my successor address during the first 30 days of their term of office. Here are the things that I think would instill an effective chapter board team and help to conduct productive chapter board meetings. This is my final thought(s) to the new chapter board leadership team— that may or may not have been covered above—for the good of the order. Chapter Leadership Transition Document Being an effective leader and productive team member is also essential for all chapter board members. Here are the things I did do during all or most of my term in office year that my successor should know and practice. Here are the things I wish I did do all year—had I known then what I know now—that my successor should know and practice. Here are the things I suggest that my successor address during the first 30 days of their term of office. Here are the things that I think would instill an effective chapter board team and help to conduct productive chapter board meetings. This is my final thought(s) to the new chapter board leadership team—that may or may not have been covered above—for the good of the order. Make plans to adequately support newly-placed board members, such as with coaching, mentoring, and defining goals. On board deliberately: Help new board chairs and committee chairs feel confident and find their own voices.

Leadership Transition Make plans to adequately support newly-placed board members, such as with coaching, mentoring, and defining goals. On board deliberately: Help new board members and committee chairs feel confident and find their own voices. Transition best practices: Make plans to adequately support newly-placed board members, such as with coaching, mentoring, and defining goals. On board deliberately: Help new board members and committee chairs feel confident and find their own voices.

References Board Works International, August 2010, Issue 4 http://www.boardworksinternational.com/2010august_arti cle1.html National Council of Nonprofits https://www.councilofnonprofits.org/tools- resources/succession-planning-nonprofits Center for Nonprofit Management https://cnmsocal.org/wp- content/uploads/2014/06/SUCCESSION-Participants- Guide-FINAL-REV-for-501c-2014.pdf

Chapter Leadership Training Annette Wallace, CMP President, Missouri Capital Chapter Director-Elect, National Board of Directors

Chapter Leadership Training Annette Wallace, CMP JOINT LEADERSHIP SESSION 2017 National Education Conference & Expo

Chapter Leadership Training Created two years ago by MOCAP Chapter Board Lack of participation from chapter members to serve on committees or as chairs Did not understand duties/responsibilities Chapter Leadership Training was created

What is Chapter Leadership Training? The leadership training involves learning about the operational responsibilities of the board, each committee and committee chair. All board members and committee chairs are invited for lunch and training. During the training, the duties of each board member, each committee, and committee chairperson are discussed. Each committee is assigned a board liaison and the differences between the liaison and committee chair are discussed.

What is Chapter Leadership Training? Each chapter committee responsibilities are detailed. Some chapter committees will need to coordinate efforts at times and the importance of this coordination. The language is taken from our chapter policy and procedures manual to explain the responsibilities and duties of each committee. The following are some sample slides from the MOCAP Chapter Leadership Training:

Committees: Annette Wallace A specified board member will serve as a liaison to each committee. The board member will select the chair or co- chair(s) of their respective committees. All purchases to be made by a committee must be pre- approved by the board, based on pre-determined budget guidelines.

Committees (cont’d): Annette Wallace Committee chairperson along with the board liaison must complete the Event Critique Form for every activity performed by that committee that involves collecting money and/or selling items (i.e. HE/SA, Bunco, Charity raffle, etc.). This completed form along with any money must be turned into the Treasurer within three (3) days following the day of the event. In order to be recognized by the Awards Committee and to receive points on the scholarship form, members must actively participate on the committee(s). All committees must keep records for permanent retention.

Charity/Fundraising Lori Haskell This committee is responsible for several charity/fundraising events throughout the year. Although subject to change, the following is a list of the past charity events and the responsibilities for each charity event. This committee also compiles the ideas (and projected earning) and submits the choices to the board for the event selection. Established charity events and timeline: -January: Food Drive -April: Annual Charity event -August: Back to School Supplies -October: Coat, Hat and Glove Drive Establishes fundraising events and timeline.

Scholarships Vicky Buschjost Scholarship funds are allocated to eligible planner and supplier members to attend the Society of Government Meeting Professionals’ National Education Conference (NEC). Applicants can apply for partial or full scholarships, which are defined and approved by the board. All planner applicants must also have applied for the National SGMP Scholarship program, if they meet the current published criteria.

Scholarships (cont’d) Vicky Buschjost All MOCAP members are encouraged to apply for a scholarship. The scholarship eligibility timeframe is January through December, and allows for the recipients to be notified, announced and travel plans to be made prior to the annual conference. The committee is responsible for overseeing the successful completion of the duties and responsibilities as listed in the Policies and Procedures.

Conclusion Discussion & Questions? Contact: Annette Wallace, CMP Annette.wallace@ded.mo.gov 573-522-9479

Joint Leadership Session

Roundtable Part IV: Programs Best programs for the least amount of cost Unique ideas / Outside the box programs

Roundtable Part V: Fundraising Non-dues revenue Best fundraisers with the least amount of work

Chapter Finances Brett Sterenson National Treasurer

SGMP TREASURY 101

CURRENT LEADERSHIP Ascent Management - Accounting Reporting Questions on Bookkeeping Keeps Chapter Treasuries Brett Sterenson – National Treasurer Budgeting Questions on Treasurer Duties Chapter Conference Calls

INCOMING LEADERSHIP Ascent Management - Accounting Reporting Questions on Bookkeeping Keeps Chapter Treasuries Chris McLaughlin – National Treasurer Budgeting Questions on Treasurer Duties Chapter Conference Calls

PERSONAL REVIEW In my almost Four Years… What’s Coming… Areas for Improvement… What’s Coming…

FINANCE/AUDIT COMMITTEE QUARTERLY FINANCIAL STATEMENT REVIEW QUARTERLY BUDGET FORECASTING INVOLVEMENT IN THE BUDGET PROCESS CONSULTANTS TO FELLOW CHAPTER TREASURERS WHO COULD USE

CRITICAL DATES Chapter Budget Submission – 7/31 Year End Financial Report – 8/15 Chapter Monthly Reports – 10th of the Month

TREASURER TRANSITIONING Become intimately familiar with the Chapter Finances Policies Hold in person meeting with outgoing Treasurer Work with outgoing President and Treasurer on transitioning bank card Work with outgoing President and Treasurer on access to banking Become intimately familiar with current budget Prepare for guiding discussion on next year budget at board retreat

FINANCE POLICY HIGHLIGHTS Chapter Finances in Policy Manual – pages 54-78 CF-1: All Chapters are required to produce an annual budget CF-2 / CF-4: All Chapters are required to use standardized budget and standardized Chart of Accounts CF-5: What Chapters may and may not use Chapter funds for CF-11: Chapter Treasurer Responsibilities CF-17: Chapter Audit Requirements CF-21: Chapter Savings Accounts CF-22: Chapter Revenue Sharing

Policy CF-7 in the Policy Manual BANK CARDS Policy CF-7 in the Policy Manual All chapters are required to maintain a current and accurate signature card at the bank where chapter funds are held. The bank signature card must always be current and up to date with the proper authorized signatures. All bank signature card changes must be completed no later than 30 days after any change has occurred with the Chapter Board, so that the most current banking information is on file. SGMP Headquarters must be notified in writing of all changes to the banking signature card and/or records, and the written notice must be accompanied by a copy of the new bank signature card.

Policy CF-1 in the Policy Manual THE BUDGET Policy CF-1 in the Policy Manual All Chapters are required to produce an annual budget. The budget will be based upon a 12 month fiscal year, starting July 1 and ending June 30 of the following year. Prior to each fiscal year beginning July 1, the Chapter Treasurer and Chapter President should lead the entire Chapter Board in the development of the fiscal year budget. The chapter is required to use and submit its budget on one the standard Excel accounting form provided by SGMP. All chapter budgets must be approved by the Chapter Board. The yearly due date for submission is July 31. Chapter Treasurers are required to have their approved chapter budgets to SGMP Headquarters by this date. SGMP Headquarters and the National Treasurer will review each chapter’s budget for final approval to ensure all IRS mandated non-profit organization guidelines are being properly followed.

REVISIONS TO TEMPLATE The 80/20 Rule was thoroughly addressed and scoured by the National Finance and Audit Committee in FY16 and there have been no changes in the last year. A Revised Template has been in use for FY17 and there will be no changes for the coming year.

Programming Scholarships SPEND YOUR MONEY Programming Scholarships

BEST PRACTICES & NOTES Approved Chapter Budgets are due to HQ on July 31st each year. By the 10th of each month, chapters must send to HQ copy of bank statement from previous month and current month’s budget template. When Budgeting, begin with Income, then Expenses, then balance. When Record Keeping, more Backup is better than less Backup. HQ is responsible for Auditing Chapter Records each year. Be wary of items labeled as Miscellaneous – do not overuse. Refunds are not Income; record as credit against Expense. Returned checks are not Expenses; record as reduction against Income. Backup for prior year is due to HQ on August 15th each year.

TAX EXEMPT STATUS SGMP is a 501(c)(6) organization which the IRS defines as a business league. “A business league is an association of persons having some common business interest, the purpose of which is to promote such common interest and not to engage in a regular business of a kind ordinarily carried on for profit.” The society and its subordinate organizations (chapters) are registered as trade associations and not as charities. The IRS is very specific about rules regarding donations – according to section 170(c) of the code, donors may not deduct contributions made to them.

SPECIAL RESOURCES Treasurer’s Conference Calls – are generally held twice a year to assist in the budgeting process and to alert chapters to any changes that may be coming down the road. Ad Hoc Conference Calls - with chapter presidents and treasurers, one chapter at a time are scheduled on a case-by-case, as needed basis, in August and in January to ensure budgets are properly established and to ensure chapters are on pace to meet them

IMPORTANT RESOURCES http://www.sgmp.org/chapterboard

CONTACT INFORMATION Ascent Managment – Accountant ChapterAccounting@sgmp.org Chris McLaughlin – National Treasurer chmclaughlin@CarlsonRezidor.com

Marie Arighi, CHSP, CMP Jackie Fenwick Membership National Director Membership Manager

Joint Leadership Session Michelle Milligan, CGMP National President

Joint Leadership Session