CONSIDERATIONS AND RECOMMENDATIONS Northeast Institute for Quality Community Action : CAA Leadership Succession Planning

GOALS AND TAKEAWAYS  Define and ID Rationale for Succession Planning  Identify Critical Factors to consider when drafting a Succession Plan  Identify Essential Components of a successful Succession Plan.  Identify Resources for Planning support and assistance.

PREPAING TO PLAN: CONSIDERATIONS “To fail to prepare is to prepare to fail.” (John Wooden, UCLA Hall of Fame Basketball Coach)

PREPARING TO PLAN What is Executive Succession Planning? “A Structured Process to Ensure Organizational Leadership Continuity in Key Positions and Retain and Develop Critical Knowledge Capital and Strategic Relationships for the Future.”* *Federal Reserve Bank of Kansas City, Nonprofit Executive Succession Planning Toolkit

PREPARING TO PLAN Why Plan ???? Proactive vs. Reactive Response to Inevitable Change or Possible Emergency. Ensure Orderly Key Agency Leadership Stability and Continuity During Periods of Transition or Service Interruption. Avoid Potential Disruption Associated with Confusion, or Anxiety of Key Internal/External Stakeholders. ID/Promote Development of Internal Leadership.

PREPARING TO PLAN Contingencies to be Considered: Short term, planned or unplanned service interruptions. (3 months or less) Long term, planned or unplanned service interruptions. (more than 3 months) Permanent transitions. (planned or unplanned)

PREPARING TO PLAN What might be some issues or questions which need to be considered in drafting and implementing an agency leadership Succession Plan?

PREPARING TO PLAN Potential Issues – Questions. * Board Ambivalence * Executive Ambivalence * Staff Concerns

PREPARING TO PLAN TOPICS (CHANGE/LOSS) MAY BE UNCOMFORTABLE FOR LEADERS. * Board Ambivalence (Other Priorities; Denial, Concerns Reg. Message to ED and Other Key Stakeholders. * Executive Ambivalence (Threat, Lame Duck, Mixed Message to Stakeholders) * Staff Anxiety, Positioning Behavior, Morale Issues, etc.

PREPARING TO PLAN Building a Foundation for Planning: Board Chair Discussion with Ex. Committee Leadership and ED. Full Board Discussion/Action. Key Stakeholder Communication (as appropriate).

PREPARING TO PLAN ARE YOU PREPARED TO PLAN? Board / Mgt. Commitment? Updated Strategic Plan informed by external and internal needs assessments? Current ED/CEO Job Description?

ARE YOU PREPARED TO PLAN (CONT)? Updated List of ED/CEO Essential Leadership/Management Responsibilities (daily – weekly – monthly – other). Updated Org. Chart – Key Senior Staff Job Descriptions-Reporting Relationships. Key Documents List/Location – Key Stakeholder Listing.

PREPARING A PLAN ROLES & RESPONSIBILITIES: *BOARD: Initiator – Decision-Maker - Communicator – Advisor Assign to Existing (e.g., Executive, Planning, HR) Committee, Appoint Special Project Committee or Address By Board as Committee of the Whole. *EXECUTIVE: Advisor – Process Manager/Committee Support – Information Resource – Communicator.

PREPARING TO PLAN: CONSIDERATIONS. Decide if Outside Assistance (Consultant, or Advisor) is needed. Assign Responsibility for Plan Development: *Appoint a Special Ad Hoc, Planning Committee that Reports to the Board; *Assign to an Existing Committee (e.g., Executive, Governance, Personnel, etc). Determine the Role of Executive/CEO in the Planning Process.

PREPARING A PLAN TO DO’S: DEFINE SCOPE (e.g., Executive Only; Executive + Selected Senior Managers; etc. ESTABLISH TIMETABLE ASSIGN/ALLOCATE RESOURCES. COMMUNICATE.

PREPARING TO PLAN Types of Plans:  Emergency – Short Term Leadership Service Interruption ( Up to – 3 Months … e.g., Illness/ Injury, Personal Matter, etc). ( + 3 Months … e.g., Illness, Military, etc).  Extended Leadership Service Interruption  Planned/Unplanned Permanent Leadership Transition …. e.g., Illness, Retirement.

EMERGENCY-SHORT TERM INTERRUPTION UP TO 3 MONTHS  Develop a Notification Protocol (e.g., Bd. Chairman)  Communication Protocol to Activate Plan: * Executive Committee * Appointment of Acting (Internal Designee) Director.

(3 months continued)  Communication Protocol Continued: * Board of Directors. * Managers – Staff. * Key Stakeholders (Funders, etc).

Up to 3 months continued  Review/Confirm Acting Director’s Authority, Responsibilities, Supervision and Support.  Review/Confirm Adjustment of Senior Manager – Board Officer (e.g., Treasurer) Roles and Responsibilities  Review/Confirm Compensation Eligibility/Adjustment(s) for Executive and Acting Executive.

LONG TERM INTERRUPTION +3 MONTHS Notification Same as Short Term Level #1 Communication-Action Protocol to Activate Plan: *Executive Committee Meeting. *Decision: Hire Interim Executive (External) or Confirm Appointment of Acting Director (Internal) for Duration of Absence. *Confirm Short/Long Term Responsibilities of Acting Director. *Draft Contract for Interim ED (if needed), ID Responsibilities for Search/Screening/Hire.

Long Term Interruption Plan Level # 2. Communication Protocol: *Board of Directors. *Managers – Staff *Key Stakeholders. Review/Confirm Acting/Interim ED’s Authority, Responsibilities, Supervision and Support. Review/Confirm Adjustment of Senior Manager – Board Officer Roles and Responsibilities for Duration of Interruption. Review/Confirm Compensation Eligibility/Adjustments for Executive and any Other Personnel not Addressed via a Contractual Agreement.

PERMANENT LEADERSHIP TRANSITION Unplanned: *Follow Protocol for Emergency Leadership Interruption with the following Additional Executive Committee Responsibilities: *Decision to Recruit/Employ an Interim ED Appoint an Acting Director. * Appointment of an Executive Search Committee. *Decision to employ Search Consultant. *Communicate with Key Stakeholders. * Initiate Planned Succession Transition Protocol.

PERMANENT LEADERSHIP TRANSITION PLANNED TRANSITION (e.g., Retirement): 1.Notification of Board Chairman (6-12 months). 2.Notification of Stakeholders (Board, Staff, Funders) 3. Appointment of Search Committee with Specification of Responsibility, Timetable, Support/Resources (e.g., Staff, Budget, etc).

PERMANENT LEADERSHIP TRANSITION PLANNED (CONT.): 4. Committee Review of: Job Description, Strategic Plan/Mission and Vision Statements, Org. Chart. 5. Committee Organizational Assessment/Scan: *Selected Board Members *Selected Staff *Selected Funders/Supporters *Selected Community Leaders.

PERMANENT LEADERSHIP TRANSITION PLANNED (CONT.): 6. Finalize Job Description – Qualifications – Critical Skills/Experience – Compensation. 7. Initiate Search – Screening- Selection Process. 8. Negotiate Employment Terms and Conditions. 9. Hiring Recommendation – Board Action. 10. Announcement of Hiring to Internal/External Audiences. 11. New ED Board Orientation – 30, 45, 90 Day Updates.

WRAPPING UP Succession Planning = An Investment in Organizational Leadership Continuity/Talent Mgt. Preparation: *Acknowledgement of Need- Commitment. *Decision on Scope – Assignment of Roles and Responsibilities. *Communicate – Anticipate/Address Possible Stakeholder Issues/Concerns *Collect Essential Information/Documents.

WRAPPING UP TAKE ACTION: PREPARE AND ADOPT AN AGENCY PLAN * Scenarios: 1. Short-Term/Emergency Service Interruption; 2. Long-Term Service Interruption and, 3. Permanent Transition. *Within Each Scenario ID:.Roles, Responsibilities and Resources Required..Action Steps – Timetables. *Board Plan Adoption – Implementation.

Resources Reserve Bank of Kansas City. Nonprofit- Executive-Succession-Planning-Toolkit. “Inclusive executive succession planning toolkit with strategies, guidelines and templates…” click on Publications, keyword: succession planning. Casey Foundation. Staying Engaged, Stepping Up. “How Boards can Prepare for and Manage Transitions and create Sustainable Leadership” Casey Foundation. Building Leaderful Organizations. Framework for Succession Planning Activities. Extensive information on Transition and Succession Planning. On home page, scroll down left side to Helpful Items. Click on VirtualCap Resource Information. Click on Succession Planning and Emerging Leadership. Program Materials listed on the Right side.

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