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Sustainability, and Succession, and Transition Planning:
Options for Actions for Executives, Boards, and Managers
Tom AdamsMarch 11, 2014
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ABOUT TOM ADAMS
FORMER PRESIDENT OF TRANSITIONGUIDES
FORMER SENIOR EXECUTIVE OF NEIGHBORWORKS AMERICA
LED RESEARCH PROJECTS SUPPORTED BY THE W. K. KELLOGG FOUNDATION AND THE ANNIE E. CASEY FOUNDATION ON NONPROFIT LEADERSHIP TRANSITION AND SUCCESSION
AUTHOR OF ARTICLES, MONOGRAPHS AND RECENT BOOK THE NONPROFIT LEADERSHIP TRANSITION AND DEVELOPMENT GUIDE: PROVEN PATHS FOR LEADERS AND ORGANIZATIONS
TOM ADAMSDIRECTOR
RAFFA, P.C.
(202) 995-7245
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ABOUT RAFFA, P.C.
FOCUSES ON MAKING THE WORLD A BETTER PLACE
CONTRIBUTES TO CLIENT’S ABILITIES TO ACHIEVE THEIR MISSIONS AND DELIVER THEIR PROMISES TO THE WORLD.
KEEPS ORGANIZATIONS COMPLIANT, EFFECTIVE, AND EFFICIENT WITH PRACTICAL BACK OFFICE SUPPORT AND DEEPER STRATEGIES THAT CREATE SUSTAINABILITY
PROVIDES EXPERTISE IN CONSULTING, ACCOUNTING, NONPROFIT SEARCH, AND TECHNOLOGY SERVICES THAT HELP ADVANCE CLIENT’S ORGANIZATIONAL MISSIONS.
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LEARNING OBJECTIVES
•LEARN HOW LEADERSHIP, STRATEGY, RESOURCES, AND CULTURE COME TOGETHER TO INFLUENCE ORGANIZATIONAL SUSTAINABILITY
•DISCOVER THE THREE TYPES OF SUCCESSION PLANNING AND THE BENEFITS OF EACH TYPE
•EXPLORE THE EXECUTIVE TRANSITION PROCESS AND CONSIDERATIONS RELATIVE TO INTERNAL SUCCESSION FOR A CHIEF EXECUTIVE
WHY DO THIS WORK?
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TRANSITION: COMING TO TERMS WITH CHANGE
Ending:LossLetting GoRelinquishing Old Way& Old Identity
New Beginning:CommitmentRebirthNew EnergyNew Sense of Purpose
Neutral Zone:ConfusionDirection FindingRe-patterning
Source: Bridges, William. Managing Transitions: Making the Most of Change.2nd ed. Cambridge, MA: Perseus Pub., 2003.
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THE THREE BIG IDEAS
Sustainability Planning
Succession Planning
Executive Transition Management
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How is it DIFFERENT
than stability or
vitality?
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WHAT IS SUSTAINABILITY?
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STABILITY, SUSTAINABILITY & VITALITY
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FOUR CORE ELEMENTS OFORGANIZATIONAL SUSTAINABILITY
Business Model & Strategy
LeadershipResources
Culture
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FOUR CORE ELEMENTS OF SUSTAINABILITY:BUSINESS MODEL/STRATEGY
BUSINESS MODEL: HOW THE ORGANIZATION CREATES AND DELIVERS VALUE, AND FINANCES THE VALUE-CREATION PROCESS.
• HAS AT LEAST 5-7 YEARS OF LIFE IN FRONT OF IT.
• BUILT ON QUALITY SERVICES. NEEDED BY CLIENTS. VALUED BY DONORS/FUNDERS.
BUSINESS STRATEGY: A COORDINATED SET OF ACTIONS AIMED AT CREATING AND SUSTAINING A MARKET POSITION IN ORDER TO CARRY OUT YOUR NONPROFIT’S MISSION. (COMPETITIVE ADVANTAGE.)
• IS THERE A STRATEGY IN PLACE? IS IT WRITTEN?
• DOES IT POSITION THE ORGANIZATION TO MEET FUTURE NEEDS AND DEMANDS?
• ARE THE BOARD AND STAFF ALIGNED WITH IT AND ABOUT IT?
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FOUR CORE ELEMENTS OF SUSTAINABILITY:LEADERSHIP
LEADERSHIP IN PLACE TO MEET CURRENT AND FUTURE NEEDS
SUCCESSION PLANS FOR TOP LEADERSHIP
THE BOARD IS A HIGH-VALUE ASSET TO THE ORGANIZATION
THE BOARD’S WORK ADEQUATELY COVERS ITS THREE CORE ROLES:
• SHAPING MISSION AND DIRECTION
• ENSURING LEADERSHIP AND RESOURCES
• MONITORING AND IMPROVING PERFORMANCE, INCLUDING ITS OWN
STRONG, POSITIVE RELATIONSHIP BETWEEN BOARD AND EXECUTIVE
DIVERSITY PLUS CULTURAL AND INTERGENERATIONAL COMPETENCE
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FOUR CORE ELEMENTS OF SUSTAINABILITY:RESOURCES - TRENDS
SUFFICIENT FINANCIAL RESOURCES TO MEET SHORT TO MIDTERM COMMITMENTS (6 TO 24 MONTHS)
REVENUE STREAMS ARE PROPERLY DIVERSE & HAVE LONGEVITY
FAVORABLE TRENDS: REVENUE, EXPENSE & MARGIN; GOOD RATIOS
PROACTIVE RESOURCE DEVELOPMENT STRATEGY IN PLACE
SOUND LINK: BUSINESS MODEL STRATEGY RESOURCE PLAN
GOOD STEWARDSHIP OF HARD ASSETS AND BUILDING SOFT ASSETS
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FOUR CORE ELEMENTS OF SUSTAINABILITY:CULTURE
AGILITY – FLEXIBLE, NIMBLE IN FACE OF DYNAMIC ENVIRONMENT
RESILIENCY – BOUNCES BACK QUICKLY FROM SETBACKS
FUTURE FOCUSED, RESULTS-ORIENTED AND ACTION-BASED
ORGANIZATION’S VALUE AND IMPACT IS WIDELY UNDERSTOOD
• VIRTUALLY ANY MEMBER OF BOARD, STAFF OR VOLUNTEERS CAN MAKE A COMPELLING CASE
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THE
SUSTAINABILITY
MINI
ASSESSMENT
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WHAT IS SUCCESSION PLANNING?
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WHY PLAN FOR SUCCESSION?
GETS US BEYOND AN UGLY TRUTH THAT WE AVOID:• ALL CAREERS LEAD TO A TRANSITION, EVENTUALLY…JUST A MATTER OF WHEN, HOW AND HOW WELL MANAGED
HELPS ENSURE ORGANIZATIONAL SUSTAINABILITY
INCREASES LIKELIHOOD OF SUCCESSFUL TRANSITIONS
HELPS MITIGATE RISK
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SUCCESSION PLANNING – THREE APPROACHES
1. SUCCESSION ESSENTIALS
• EXECUTIVE BACKUP PLAN• SUCCESSION POLICY
2. LEADER DEVELOPMENT
• PROACTIVE TALENT MANAGEMENT
3. DEPARTURE-DEFINED
• SUCCESSION ESSENTIALS • SUSTAINABILITY PLANNING
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SUCCESSION PLANNING: SUCCESSION ESSENTIALS
THE “ESSENTIALS”
• EXECUTIVE BACKUP PLAN
• BOARD ADOPTED SUCCESSION POLICY
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SUCCESSION ESSENTIALS:
EMERGENCY BACKUP PLANNING
UNDERSTAND KEY FUNCTIONS AND RELATIONSHIPS
DESIGNATE BACKUP COVERAGE; UNPLANNED ABSENCES
CROSS-TRAIN DESIGNATED BACKUPS
DEVELOP DEFINITIONS, PROCEDURES AND PROTOCOLS FOR STAFF AND BOARD EMERGENCY RESPONSE (e.g. What, When, Who, And How)
DOCUMENT THE PLANS AND THE SUCCESSION POLICY
PRIORITIZE CAPACITY BUILDING TO CONTINUE POSITIONING FOR EFFECTIVE TRANSITION MANAGEMENT
COMMUNICATE THE PLAN
REFRESH THE PLAN ANNUALLY
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SUCCESSION ESSENTIALS: SUCCESSION POLICY
BOARD-ADOPTED POLICY
OUTLINES HOW A PLANNED DEPARTURE OF THE EXECUTIVE IS TO BE HANDLED
STATEMENT OF COMMITMENT TO:• PREPARE FOR INEVITABLE LEADERSHIP CHANGE
• ASSESS LEADERSHIP NEEDS BEFORE BEGINNING A SEARCH
PLAN TO APPOINT INTERIM LEADERSHIP
TO ENSURE CONTINUITY
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SUCCESSION PLANNING:LEADER DEVELOPMENT
A STRATEGIC COMPONENT OF TALENT MANAGEMENT
• ONGOING INVESTMENT & POSITIONING TIED TO GOALS
• STRATEGIZING/PLANNING
• ASSESSING/APPRISING/ALIGNING
• DEVELOPING/SUPPORTING/RETAINING/RECRUITING
• RIGHT PEOPLE, RIGHT SKILLS/ABILITIES IN LEADERSHIP ROLES
• TIMELY MOVES FOR ORGANIZATIONAL & INDIVIDUAL DEVELOPMENT
BENEFIT:
BROADENS AND
SUSTAINS LEADERSHIP
CAPACITY&
BUILDS BENCH
STRENGTH
builds bench strength
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SUCCESSION PLANNING:DEPARTURE-DEFINED
GOALINCREASE THE ORGANIZATION’S CAPACITY TO DELIVER ITS MISSION UNDER NEW LEADERSHIP, WHENEVER THE TRANSITION MIGHT OCCUR.
OUTCOMES
• CAPACITY-BUILDING PLAN STRENGTHENS THE FOUR CRITICAL ELEMENTS OF ORGANIZATIONAL SUSTAINABILITY
• SUCCESSION POLICY OUTLINES THE BOARD’S POLICIES & ROLES FOR A CHIEF EXECUTIVE TRANSITION
• BACKUP PLANS AND CROSS-TRAINING TO ENSURE CONTINUITY
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THE
SUCESSION PLANNING
MINI
ASSESSMENT
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WHY DO SUSTAINABILITY AND SUCCESSION PLANNING?
ENSURES CONTINUITY
BUILDS BENCH DEPTH AND INTERNAL CAPACITY
KEY RESPONSIBILITY OF TOP LEADERSHIP; CAN’T BE DELEGATED
BEST IF INVOLVEMENT IS BROAD-BASED AND CONNECTED TO ONGOING SUCCESSION PLANNING
• MINIMIZES CRISIS OF AN UNPLANNED ABSENCE
• IDENTIFIES “ORGANIZATIONAL GAPS” IN COVERAGE
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Culture
Sustainability Planning
Or
Departure-Defined Planning
Succession Essentials•Backup Plans•Succession Policy
Action Plan
Implementation•Executive Leader Development•Board Development
•Strengthen Business Model
•Sharpen Strategy
•Change CultureExecutiveTransition Management
LINKSUSTAINABILITY – SUCCESSION – TRANSITION
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OVERVIEW: LEADERSHIP SUSTAINABILITY AND EXECUTIVE TRANSITION MANAGEMENT
Culture
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PROCESS OVERVIEW: EXECUTIVE TRANSITION MANAGEMENT
OUTCOME:
INCREASED CAPACITY TO
DELIVER ORGANIZATION’S MISSION UNDER
NEW LEADERSHIP
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THE NEXT STEPS WORKSHOP
SUSTAINABILITY, SUCCESSION, AND TRANSITION PLANNING FOR FOUNDERS AND LONG-TENURED EXECUTIVES
DATES & LOCATIONS
JULY 9-10, 2014 – BALTIMORE, MD JANUARY 26-27, 2015 – WASHINGTON, DC
MORE INFORMATION: CONTACT MELODY THOMAS [email protected] (202) 955-7242
ATWO-DAY
INTENSIVEHANDS-ON
WORKSHOP
Register Today!
SAVE
$95
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RESOURCES
THE NONPROFIT LEADERSHIP TRANSITION AND DEVELOPMENT GUIDE– Covers Leadership Transition and
Leadership Development
AVAILABLE FROM AMAZON.COM
RESOURCES
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)
AVAILABLE ONLINE AT:
• www.TransitionGuides.com/resources/monographs.htm
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QUESTIONS
