SHELLY M. SCHNUPP SMS & ASSOCIATES FOR THE YWCA USA FEBRUARY 2014 Preparing for Leadership Transition

Why Transition Planning? Leadership, especially executive leadership, is proven to be critical to organizational success. Loss of leadership often brings vulnerability…as well as opportunity. Loss of leaders can threaten stability. Different assumptions about leadership replacement can damage commitment, relationships. Lack of plan exposes the organization to risks. Some level of succession planning is associated with higher organizational performance. Friedman, 1986; Giambatista, Rowe & Riaz, 2005

A strong nonprofit leader is critical to the success of organizations, its ability to continue providing uninterrupted services to the community and for long term sustainability. Nonprofit Executive Succession-Planning Toolkit, Federal Reserve Bank of Kansas City

Transition Dangers Conflict over leadership replacement assumptions. Loss of organizational knowledge. Loss of leader viewed as loss of organization. Confusion about what to do and who should do it. Poor choice of new leader. New leader doomed to fail. Loss of capacity, impact, confidence and support.

Transition or “Succession” Planning Defined …thinking in advance about how to set the stage for a strong transition.” ( Tim Wolfred and Jan Masaoka, Blue Avacado, February 17, 2009) Any type of formal rules or procedures in arranging for managerial succession. (Huang, 1999) Much more that internal talent development. Is not only about determining your organization’s next leader, it is a continuous process that assesses organizational needs, and creates a climate for an executive to succeed. Nancy R. Adelrod

Types of Leader Transitions Planned/ Departure Defined – process in place for future planned retirement or permanent departure of executive Unplanned/ Emergency – process in place in the event of sudden departure (permanent or extended period)

Barriers to Transition Planning Fear of provoking organizational “politics” – sending the wrong message Time and resource expectations Lack of understanding and expertise Underestimating the risks and costs of bad hires Focusing more on problems—rather than opportunities—presented by transition

Creating the Conditions for Successful Leadership Transition Strong Leadership: board and staff Documented processes and procedures, organizational knowledge, program plans Current Strategic Plan Well-defined roles and responsibilities Shared knowledge and relationships Functioning information systems Knowledge of organization’s capacity

Conditions provide the base for Executing Succession Activities Communications Plan Steps for replacing leader Systems for orienting and supporting new leader Leadership, Strategic Plan, Defined Responsibilities, Documented processes, procedures, plans; knowledge of relationships, strengths, challenges; information systems

Transition Planning Strategies Continuous organizational capacity assessment—and capacity building Regular strategic planning Systematic process review and documentation Culture of leadership development Leadership succession processes – emergency and planned

Getting Started Short orientation: Board and executive read and discuss a transition article. Start with emergency transition planning. Keep it simple where possible.

Putting a good succession plan in place reflects a commitment to an organization that goes beyond its strong leaders to serve its community for as long as it is needed. Tim Wolfred, 2009

Transition Resources Managing Executive Transitions: A guide for Nonprofits; and other writings by Tim Wolfred. TransitionGuides.com. Succession Planning for Nonprofits of all Sizes by Blue Avacado, National Council of Nonprofits: of nonprofits.org Annie Casey Foundation. Emergency Succession Planning Template and Departure-Defined Succession Planning Timeline and Template byFederal Reserve Bank of Kansas City: Nonprofit Executive Succession-Planning Toolkit. Capacity Assessment and Benchmarking tool developed for YWCA associations by Frank Martinelli and Shelly Schnupp, 2011.

For more information… Shelly Schnupp SMS and Associates