Succession Planning

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Succession Planning American Psychological Association 2009 CESPPA Annual Meeting Toronto, ON August 4, 2009

description

Nonprofit executive turnover is accellerating. How should associations and charities deal with the planned - or unplanned - departure of their executive?

Transcript of Succession Planning

Page 1: Succession Planning

Succession Planning

American Psychological Association

2009 CESPPA Annual Meeting

Toronto, ON

August 4, 2009

Page 2: Succession Planning

Introduction

• Michael Wyland - SD

• Lorryn Wahler - NJ

• Sherry Reisman - KS

• Judy DeVito - MD

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Daring to Lead 2006

A Joint Project of CompassPoint Nonprofit Services and The Meyer Foundation

1,932 respondents from eight cities: Boston, Chicago, Dallas, Los Angeles, Minneapolis/St. Paul, Sacramento, San Francisco, and Washington, D.C.

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Daring to Lead - Findings

• Three quarters of survey respondents plan to leave their jobs within the next five years

• 9% were already in the process of leaving• Less than a third had discussed succession

planning with their boards • Small organizations with fewer than 10 paid staff

are more likely to experience transition in the next five years than larger, more established nonprofits

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Daring to Lead -Findings

• Fewer than one in three executives agree strongly that their board challenges them to be more effective

• About a third of respondents were dissatisfied with their compensation

• Only 26% of executives have ever asked for a raise

• Executives who plan to leave within a year are nearly twice as likely to be dissatisfied as those who plan to stay longer

• Executives who are unhappy with their boards are more than twice as likely to be planning near-term departures than those who have positive perceptions of their boards.

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Daring to Lead - Findings

• One in three executives is eventually fired or forced out of the job

• Just 29% of executives have discussed a succession plan with their boards

• Even among the 10% of executives leaving within a year, less than half – 47% – report having discussed a plan for succession with their boards

• Even when executives do leave their jobs, most will stay in the nonprofit sector

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The Next 90 Days

• Each year, about 25% of Fortune 500 managers change jobs

• Average 4 years in a given position

• 500,000 new managers each year

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The First 90 Days

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The First 90 Days - Steps

1. PROMOTE YOURSELF. Make a mental break from your old job.

2. ACCELERATE YOUR LEARNING.

3. MATCH STRATEGY TO SITUATION. You need to know what your unique situation looks like before you develop your action plan.

4. SECURE EARLY WINS. Early victories build your credibility and create momentum.

5. NEGOTIATE SUCCESS. You need to figure out how to build a productive working relationship with your new boss and manage his or her expectations.

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The First 90 Days - Steps6. ACHIEVE ALIGNMENT. The higher you rise in an organization, the more you have to play the role

of organizational architect. This means figuring out whether the organization's strategy is sound, bringing its structure into alignment with its strategy, and developing the systems and skills bases necessary to realize strategic intent.

7. BUILD YOUR TEAM. Your willingness to make tough early personnel calls and your capacity to select the right people for the right positions are among the most important drivers of success during your transition.

8. CREATE COALITIONS. Your success will depend on your ability to influence people outside your direct line of control. Supportive alliances, both internal and external, will be necessary to achieve your goals.

9. KEEP YOUR BALANCE. The risks of losing perspective, getting isolated, and making bad calls are ever present during transitions. The right advice-and-counsel network is an indispensable resource

10. EXPEDITE EVERYONE. Finally, you need to help everyone else - direct reports, bosses, and peers - accelerate their own transitions. The quicker you can get your new direct reports up to speed, the more you will help your own performance.

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Seven Steps of Executive Transition

• Preparation

• Response

• Hiring an Interim ED

• Recruitment and Screening

• Negotiations and Hiring

• Orientation

• Retention

Losing Your Executive Director Without Losing Your Way, Carol Weisman & Richard I. Goldbaum

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Succession Planning Elements

• A statement of purpose and a policy expressing the rationale for the plan and the board’s commitment to orderly executive transitions for both short-term absences and long-term absences or departures;

• An outline of succession procedures, including timelines for when various steps should be taken;

• A copy of the most current job description for the executive position;

• A calendar of events and anticipated activities for the upcoming 12 to 18 months, including, for example, performance and salary reviews, staff hiring plans, and lease negotiations;

• A communication plan with templates;

• A key contacts list (be sure to keep it regularly updated);

“Succession SOS”, Robert T. Van Hook, CAE

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Succession Planning Elements

• A listing of financial institutions that should be notified and instructions for changing check-signing authority;

• A description of the process for selecting interim management;

• A description of the executive search process and a charter for a search committee, should one be needed. The plan should include the pros and cons of using doing the search in house or engaging an executive search consultant. This section should include a list of search firms that work with associations and specifically with organizations of your size, type, and market;

• A financial plan. The cost of an executive transition can be considerable. Expenses may include severance pay, outplacement, executive search consultants, and external interim executives. The organization may want to consider establishing a transition fund as a board-restricted account for an eventual executive departure.

“Succession SOS”, Robert T. Van Hook, CAE

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Examples and War Stories

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Thank You!

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