1. Sustaining the Vision: Leader Succession Keys to Navigating the Changing Landscape

2. Introduction of SST Partners Rebecca DaVee, CPA Outsourced Accounting/CFO Services Bill Sims, CPA Audit – Nonprofit Organizations

3. Housekeeping Webinar will last approximately 55 minutes Attendees will be muted during our discussion, however as we cover various discussion items, post your questions and we will attempt to answer them. 1 Hour CPE Credit - in order to receive credit from SST, you must answer the polling questions, respond to the survey and return evaluation/attendance verification form. Any questions?

4. Learning Objectives Engage your board in succession planning Prepare leadership for exit transition Create an emergency backup plan Create a succession plan Encourage leadership development

5. Today’s Nonprofit Sector Nonprofit Sector – 3 rd largest US employer Approx. 2 million NPOs Employ 10.7 million people Produce revenues in excess of $1.9 trillion

6. Hiring and Recruitment 52% do not have a formal recruitment strategy 67% do not have a formal recruitment budget 68% do not have a social media recruitment strategy Most candidates for senior/executive level positions come from other nonprofits

7. Ready or Not

8. Succession = Change Vision Mission Strategic Plan

9. Team Effort

10. Risks vs Benefits RISKSBENEFITS Going out of business Sudden and unprepared loss Loss of relevancy Key operating roles New energy/ talent Defines leadership and how to advance

11. Emergency Backup Plans Purpose 1.Define short and long-term unplanned absence 2.Clarify who decides the absence is occurring 3.State who assumes the functions and roles of the executive during the absence.

12. Emergency Backup Plan Create Role/Function Determine Staff Communication Plan Cross-Training Plan Finalize/Monitor

13. Succession Planning Roles Board Members Executive Director Key Staff

14. Essential Components Identify ED duties and responsibilities Interim ED Assignment of duties Establish timetable Review/update job description Who is responsible for identifying, recruiting, interviewing and selecting new ED

15. “The old adage ‘People are your most important asset’ is wrong. People are not your most important asset. The right people are. Good to great depends on having the right people on the right bus at the right time.” Jim Collins, Good to Great

16. Strategic Leader Development 1.3-year strategic plan for leadership development 2.Annual executive performance evaluation 3.Board self-assessment 4.Annual evaluation of staff 5.Develop high- performing team

17. Strategic Leader Development (Cont’d) 6. Cultivate relationships with external stakeholders 7. Financial reserves (6 months operations) 8. Financial management systems = industry standards 9. Administrative operational manual

18. Organizational Culture Organizational mission Value and recognition Understand requirements for leadership Leadership development is encouraged and rewarded Strategic plan reinforces developing leaders Builds a diverse and sustainable culture Change occurs calmly

19. Questions & Comments

20. Learning Objectives Engage your board in succession planning Prepare leadership for exit transition Create an emergency backup plan Create a succession plan Encourage leadership development

21. Resources “Managing Executive Transitions: A Guide for Nonprofits” by Tom Wolfred CompassPoint Nonpofit Services – www.compasspoint.orgwww.compasspoint.org “Elements of a Good Nonprofit Leader Succession Plan” by Eileen Morgan Johnson– whitepaper #31072 - www.asaecenter.orgwww.asaecenter.org “Sustaining Great Leadership: Succession Planning for Nonprofit Organizations” by Tom Adams. Annie E. Casey Foundation Executive Transition Monograph Series www.aecf.org

22. Succession Planning Questions or more information: bdavee@sstcpa.com/918.857.5685 bsims@sstcpa.com/972.341.9545