Ready or Not, You likely have a leadership transition …...Ready or Not, You likely have a...
Transcript of Ready or Not, You likely have a leadership transition …...Ready or Not, You likely have a...
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1A faith-centered approach to addressing organizational needs
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Ready or Not, You likely have a leadership transition in your future.
Dennis Russell, President and CEO
MHS Consulting
Goals
Workshop Objectives
� To inform and educate board members and executive leaders about the executive transition process
� Identify strategies and processes needed to prepare for both an unplanned and planned transitions in advance
� To increase your awareness of your roles and responsibilities as board members and organizational leaders
� Provide resources for participants to take back to their respective organizations to help prepare for executive transition
� Discuss the plusses and minuses of using consultants or search firms vs. in-house managed process
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Outline - Topics to be Discussed
1. Organizational Readiness
2. Communication Plan
3. Executive Search Process
4. Use of an Interim/Acting CEO
5. Content List - Candidate Information Packet
6. Sample Board Survey
7. Executive Transition Consultant, Search Firm, or In-house
8. Role of the Incumbent in the Search Process
9. Role of Residents and Staff in the Process
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Board Response to Triggering Event
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Organizational ReadinessBoard’s Role
Proactive Planning
� Board Chair/CEO communication
� Use of Contract Language
� Short/Long Term Succession Plan
� Internal Development of Future Leaders
� Current and Relevant Strategic Plan & Job Description
� Ensuring Competitive Compensation Packages
� Annual Evaluations of Senior Management
� High Functioning Board
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Organizational ReadinessCEO Role
� Contract Language and Commitment
� Clearly Defined Roles – Board, Residents, Staff
� Frequent Communication with Chair Re:
Professional Trajectory Goals
Expectations: Work/Life Balance
Human and Financial Resources
Compensation
� Hire & Develop Internal Talent
� Provide Education and Development for Board
� Avoid Creating Single Leader Dependent Culture
� Provide Adequate Notice
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Organizational Readiness cont.Documents and Organizational Description
“View your organization through the eyes of a potential candidate. Website/Candidate Packet”
Strategic Plan
Marketing Plan/Materials
Description of Wait List
YTD Financials vs. Budget
Last 3 years Audited Financials
Census Trends
5-Year Capital Budget
Long-term Cash Flow Projections
Description of Corp Compliance
Description of Agency Usage
Payer mix by revenue
Benevolent Care
Social Accountability Report
Client/ Staff Satisfaction Surveys
Annual Report
Budgeting Process
Wage Matrix, Hourly and Exempt
Bios of Senior Management Team
Board Composition and Bios
Board Orientation Process
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Communication Plan
� Create Specific/Detailed Content (Script), means of communication including board members, senior staff and incumbent
� ID Stakeholders and Order of Announcement
� Create Timeline – Internal and External
� Means of Communication
� Use Outside Resources as Appropriate
� Determine Point Person for Inquiries
� Communicate Plan with Full Board Prior to Implementation
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Why Consider an Interim?
� The CEO’s departure timeline does not allow adequate time to conduct a search
� The search process has not identified a preferred candidate and more time is needed
� The organization may benefit from a period of transitional leadership
- Leadership change as a result of a
traumatic cause or difficult situation
(need time to process or grieve)� OR
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Following a long-term, well liked leader (Super Hero or Saint)
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Significant operational changes are needed to helpposition organization for permanent CEO
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Board needs time to prepare long-range vision to determine skill sets needed to achieve desired vision
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When the Ideal Candidate Profile Creates a Very Limited Pool with Unusual & Specific Skills
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Elements of an Interim Job Description
Interim CEO Position
Reports to: Chair of the Board of Directors
Duration: the interim position is expected to be required for 3 to 6
months. Longer Term if significant operational changes are needed.
General Responsibilities:
� Assure and maintain normalcy of operations until the permanent
President and CEO can be appointed by the Board;
� Works closely with the Board and key staff to keep CCRC running smoothly.
� Assists in presenting the CCRC as stable and operating with
confidence, “business as usual” to staff, residents, prospective
residents and community at large; or
� Can have specific operational change directives to position organization for long-term CEO (normally “acting CEO” duties)
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Interim CEO Duties
Duties:
� Understands and manages the day to day requirements of the overall operations of the CCRC
� Manages expenses, occupancy, revenues to budget
� Insures optimum financial performance of the organization during the interim period
� Meets and communicates regularly with Department Heads (leadership team)
� Resolve problems, tracks budget and operating plan performance.
� Meets and communicates regularly with Residents and Resident leadership
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Interim CEO Duties continued
� Answers questions, provides reassurance, resolves issues offers updates.
� Meets/communicates regularly with Board Chair.
� Keeps Board apprised, at all times, of work progress and any issues that may arise.
� Assists Search Committee by assembling information, making scheduling arrangements, support the search process.
� Assures compliance with regulations and financial covenants; meets with regulators and financing representatives as may be required.
� Schedules, leads the preparation and presentation of routine materials for Board meetings.
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Interim CEO - Profile
Requirements:
� Positive, upbeat, “can-do” attitude is essential
� A familiarity with the campus is helpful
� Calming presence
� Respected and trusted by residents and staff
� Interactive, relationship manager, “a Big E”
� A “non-candidate” for the permanent position is preferred
Note: Can have both a positive or negative impact on the resume of the Interim.
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Orientation and Overlap
� The Orientation Plan content – should include an operational and financial overview, the annual work of the Board, and other key organizational issues and hot topics.
� The incoming CEO needs to have an orientation plan that is “owned” by someone in the community such as the Assistant to the CEO.
� Consider bringing the incoming CEO to the campus for visits – attend a Board meeting, a Resident meeting or for other relationship introductions.
� Consider the value of overlap versus an orientation plan with the incoming CEO prior to the outgoing CEO departure.
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Creating a Relationship Map
� How does the outgoing CEO start to step back and ready the organization for handoff?
� How does that stepping back work with important relationships?
� How does the outgoing CEO or Board identify the key relationships (formal and informal) for the incoming CEO?
� Who should be assigned to serve as liaison to maintain relationships during the transition period?
� Who assures the incoming CEO has an orientation plan for the important key relationships and how does that get implemented and prioritized?
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Building Relationships
� Residents and Staff
� Senior Leadership Team
� Board of Directors
� Key constituents, stakeholders, others from relationship map
� Take time to seek feedback from the community – ask questions to frame a sense of the community culture and their concerns, fears and hopes for the future.
� Listen, listen, and listen
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Leaving Well – Finishing Strong
� Lame Duck – do not shift into neutral
� Establish a transition plan – effectively manage
� Strategic Direction
� Communication
� Consider what needs to be completed? Are you leaving a problem or potential dilemma for the future?
� Consider the legacy you are leaving – years of positive tenure can be misconstrued or turned negative depending on what is left for the new CEO and the organization
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Lessons Learned
� Relationships
� Listening
� Building a reservoir of goodwill
� Maintaining personal balance
� Building the senior team
� Assessing the institution – crisis prep, other
� Modeling honesty and openness
� Moving too quickly
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Additional Resourses
Presidential Transitions, It’s Not Just the Position, It’s the Transition
By: Patrick H. Sanaghan, Larry
Goldstein, and Kathleen D. Gaval
“Managing Transitions” by: William Bridges
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Additional Resources
MHS Consulting Support and Services
� Operational Readiness Consulting/Tools
� Advisory Support to CEO/Board Leadership Development
� Executive Search Committee Consultation
� Interim Executives
� National/Regional Search Process
� Process Design - Values & Mission Congruence
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Dennis Russell
MHS Consulting
503-539-0921 cell
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Notes
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