Succession Planning

Succession Planning: Challenges and Solutions For Nonprofit Organizations

April 18, 2013

St. Louis Area Foodbank2013 Agency Conference

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Jim Braun

Partner, EMD Consulting Group

636.541.3057

jbraun@emdconsulting.com

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The Nonprofit Leadership Gap

Definition of Leadership Gap:

The difference between the need for leaders and the supply available in….

• Those with the required skills and commitment

• Those trained and willing to work in the nonprofit sector

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The Nonprofit Leadership Gap

Findings of a 2006 national study by the Bridgespan Group:

• By 2016 the nonprofit sector will need 80,000 new senior managers each year

• Follow-up data (2009) reveals the nonprofit leadership gap is widening

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Challenges Facing Nonprofits in Succession Planning

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Challenges Facing Nonprofits in Developing Future Leaders

• Pay in nonprofits is well below the for-profit sector

• Attitudes that nonprofits should have all resources going to direct services, keeping training and administrative costs to a bare minimum

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Challenges Facing Nonprofits in Developing Future Leaders

• Lack of funding for leadership evaluation and training comparable to the for-profit sector

• Nonprofits’ historic lack of know-how in developing succession plan processes

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Challenges Facing Nonprofits in Developing Future Leaders

• “Founder syndrome”

• Overreliance on leaders making huge time and financial sacrifices

• Crisis mode of survival prevents organizations from planning and taking proactive steps for leadership succession

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Key Elements of Succession Planning

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Key Elements of Succession Planning

• Recruiting and hiring individuals with leadership potential

• Identifying employee strengths and growth areas

• Encouraging employee aspiration for leadership and providing pathways for advancement

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Key Elements of Succession Planning

• Developing specific individual growth and development plans

• Evaluating employee growth in terms of skills, experience and competencies needed for specific leadership positions

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Key Elements of Succession Planning

• Charting succession plans by defining employees that are “potentially ready,” “nearly ready,” or “fully ready” to assume higher leadership positions

• Updating succession plan charts annually based on most recent performance evaluations

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Key Elements of Succession Planning

• Developing lists of individuals outside of the organization whose leadership skills and talents are estimated to match leadership needs for certain positions

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Nonprofit Succession Planning Solutions

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Nonprofit Solutions

• Recruit volunteers or board members that have specific expertise in succession planning

• Recruit volunteers or board members that can get donated leadership assessment and development services from their business sector associates

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Nonprofit Solutions

• Conduct strategic planning that includes succession planning

• Stay open minded – don’t let unconscious biases influence what a successor should look like (age, sex, race, etc.)

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Nonprofit Solutions

• The executive director and his/her direct reports meet regularly as a leadership team

• Board oversees a process that evaluates leadership strengths and growth areas of current leadership team members

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Nonprofit Solutions

• The executive director is expected to cultivate leadership skills among leadership team members

• The board and executive director develop and periodically update a succession planning chart identifying internal and external candidates for filling needed positions

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Nonprofit Solutions

• All staff member performance evaluations include professional development goals and strategies

• All members of the leadership team are evaluated annually for how they cultivate leadership talent

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Nonprofit Solutions

• Succession charts are developed and regularly updated listing “who is how ready” to assume “which positions”

• All supervisors are evaluated annually on their ability to cultivate successors and leadership among their staff members

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Succession Planning:Summary

1. Think ahead – stay out of denial

2. Recruit experts (paid or volunteer) to help develop a succession plan

3. Make leadership development an ongoing part of your organization’s culture

4. Use experts (paid or volunteer) to help build skills in cultivating leadership among current leaders

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