1. Succession Planning for a Sustainable Future Kansas Health Foundation April 8, 2015

2. About the Presenter Pam Barrett, ACHE, FACHE P Barrett & Associates, LLC Healthcare & nonprofit business consultant 30 year executive leadership in healthcare/hospice Services: strategic positioning & financial sustainability |board & staff development |succession planning | collaboration strategy Educator | Speaker | Mentor

3. Learning Objectives Identify which roles require succession planning and why. Identify best practices in succession planning. Size appropriate strategies for leader development and talent management. How to initiate a succession policy (to include consideration of interim leadership).

4. Why Plan for Succession? Minimizes risk Maximizes opportunity Supports organizational sustainability

5. Who Needs It?  Boards of Directors  Executives 3.Key Leaders

6. Getting Your Board on Board

7. The Succession Policy – serves as a statement of commitment to: Outline the process of planned departure Prepare for inevitable leadership changes Assess leadership needs before beginning a search Appoint interim leadership (as appropriate) to ensure continuity and stability

8. Succession Essentials –Succession Policy and Emergency Backup Leader Development & Talent Management –Ongoing talent development and investment tied to your strategic goals Departure Defined Succession Planning –Pre-transition planning 1 – 3 years in advance Critical Planning Elements

9. Succession Essentials – THE BENEFIT – Prepares the organization in advance for how it will handle a transition when it happens.

10. Succession Policy Content Focus on both transition and search Organizational assessment Transition/search committee Succession procedures Consideration of interim Internal candidates Search Plan

11. Emergency Backup Plan Simplest and most effective place to start - May be required for licensure/accreditation Includes emergency planning for executive and senior managers Incorporated into written Board adopted succession policy

12. Backup Plan Essentials An agreement between an individual and his/her backup(s) Assigns responsibility and authority Identifies key duties and relationships (and needed cross-training)

13. Emergency Backup Planning Designate and Cross-train backups Develop procedures and protocols Document the plans Understand key functions & relationships Communicate Refresh

14. Leader Development & Talent Management – THE BENEFIT – Broadens and sustains leadership capacity and builds “bench” strength. Management and Leadership Training: In This Economy? You Bet By Pam Barrett, ACSW, FACHE www.pbarrettassociates.com

15. Vision: What is the agency’s strategic vision and priority goals? Skills: What competencies do we need for success? Leader Development: –What competencies do we have? –Which are missing? –Who will acquire competencies needed and how? –How do we back them up? –How will we share leadership & decision making? Strategic Leader Development

16. Attention to Leader Development Aligns staff development with strategic vision Builds staff leadership capacity Develops potential management successors Diversifies organizational leadership Makes the executive and all other leader jobs more “doable”

17. Actions to Advance Leader Development 1.Secure CEO, senior management, and board commitment. 2.Put succession basics in place. 3.Align HR practices and strengthen capacity to support and manage. 4.Make leader development a top priority and central to strategy. 5.Put a bench strength and talent management system in place. 6.Expand development and training opportunities.

18. Tools for Leader Development Internal vs. External Mentoring Mastery Experiences Intentional Coaching Out of Sector Options

19. Departure Defined Succession Planning – THE BENEFIT – Strengthens and readies the organization for transitions. Effective transitions enhance opportunity for success!

20. Departure Timetable & Tools Undefined Succession Essentials Sustainability Planning Leader Development/T alent Management 18 Mo - 3+ Years Succession Essentials Sustainability Planning Departure-Defined <18 Months Succession Essentials Formal Transition Planning

21. Transition Management Change is an opportunity. Power of the pivot – the neutral zone. Acknowledge challenges related to transition. Opportunity to redefine roles and relationships. Can break unhealthy ties to the past. Paves the way for new future.

22. Key Transition Considerations Internal vs. Outsourcing Recruitment When is an interim Appropriate? Roles of the Departing (Exec. Leader, Board)

23. Recruitment ( Internal vs. Outsourcing) Needs Capacity Market Budget

24. Why consider an Interim Continue operations without stalling out during leadership transitions Independent ‘eyes’ and assessment Turning point for a nonprofit organization …why not an interim?

25. Interim Leadership Other benefits Serves as a bridge Manages day-to-day Offers objective assessment and recommendations; addresses issues Strengthens and readies the department/ organization Reassures staff/ stakeholders An effective interim models excellence

26. Proceed with Caution Incumbent staff Applicant Board member Former ED Community leader

27. Tips for Hiring an Interim Begin with the end in mind. Identify most urgent issues and challenges. Focus on what the organization needs, not the prior leader. Determine priorities for transition. Seek an individual specifically skilled as an interim leader. Compensation considerations. Tap local resources for candidates.

28. Roles of the “Dearly Departing" (Departed) The Executive The Leader (s) The Board

29. Role of the Departing DOs Limit your “assistance” to essential functions Honor the Succession Policy Respect and demonstrate confidence in the process Support the successor Get out of the way! DON’Ts Drag out the inevitable Serve on the Search/ Selection Committee Attempt to manage/ manipulate the process Inflate your importance Overstay

30. Transition: Coming to Terms with Change

31. Next Steps Template and Resources

33. Resources The Nonprofit Leadership Guide –Covers Leadership Transition and Leadership Development May be ordered from Transition Guides: –www.transitionguides.comwww.transitionguides.com –Now see: RAFFA –www.raffa.comwww.raffa.com

34. Resources Chief Executive Transitions: How To Hire And Support A Nonprofit CEO –Covers Executive Transition Management May be ordered from Board Source: –www.BoardSource.org

35. Resources SUCCESSION Are you Ready? –Covers CEO Leadership Transition By Marshall Goldsmith Author of New York Times bestseller, What Got You here Won’t Get You There May be ordered at -www.amazon.comwww.amazon.com or other booksellers

36. Annie E. Casey Foundation monograph series –Building Leaderful Organizations –Ready To Lead? Next Generation Leaders Speak Out –Capturing The Power Of Leadership Change –Founder Transitions: Creating Good Endings And New Beginnings –Interim Executives: The Power In The Middle –Up Next: Generation Change And Leadership Of Nonprofit Organizations –Stepping Up, Staying Engaged (Boards during transitions) Free and available online at: –www.TransitionGuides.com/resourc es/monographs.htm Resources

37. Special Acknowledgement to colleagues Jeanie Duncan, Raven Consulting Group and Tom Adams, RAFFA Thank You! P Barrett & Associates, LLC 1852 Banking Street #9094 Greensboro, NC 27408 336.500.8670 pambarrett@pbarrettassociates.com www.pbarrettassociates.com