succession planning strategic leader...
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Succession PlanningStrategic Leader Development
Center for Community-Based & Nonprofit Organizations
www.nonprofitaustin.org
Candyss Bryant (512)223-7051 [email protected]
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Succession Planning
What is succession planning?
Why should my organization engage in succession planning?
Key items to consider
Steps to get you started
Additional resources
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Thought of the Day….
Preserve your organizational knowledge!
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Definition of Succession Planning
Simply Put:
Succession planning is a process for identifying and developing internal personnel with the potential to fill key or critical organizational positions.
Succession planning ensures the availability of experienced and capable employees that are prepared to assume these roles as they become available.
Preserving your organizational knowledge!
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
What is the Importance?
The demand for effective nonprofit managers and leaders is growing
Baby boomers are retiring
Executives of the future are expected to be more sophisticated in order to develop and lead through technological advances.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Justification for Succession Planning
Be prepared for emergencies as well as planned departures
Provide consistency to stakeholders (constituents, funders, etc.)
Reduce stress on staff and board during transition
Retain knowledge, expertise, history, and relationships
Maintain the organizational culture
Provide employees with opportunities for development and growth
Continue its strategic direction with minimal interruption
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Life Stages of Organizations
During each life stage of an organization, the role of the board and that of the chief executive officer change.
The skills, motivation, and expertise needed are different at each stage – not better, just different.
It’s important for the leadership of an organization to know where in the life cycle the organization is so they will know what skills, knowledge are needed’
It is important to know what risks and opportunities exist.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Should we just be concerned about top management?
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
It’s not just about the top….
It's getting the right person in place for every job. Some of tomorrow's key jobs/positions may not even exist now.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Effective Succession Planning
Requires a strong partnership, built on trust between the Executive Director and his or her board of directors.
Is an indicator of a healthy nonprofit organization, something to look for before funding an organization or sitting on a nonprofit board.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
So Where Do We Start?
Effective Leadership
Leadership Development
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Effective Leaders
Lead from an intense and timeless reverence for their people
Create a culture of sustainability centered around people (and how they relate to the mission), not products or services, or even the bottom line
Ex – Doing business with people not the product
“Find the right people, show them how good they are, and get out of their way.”
- Brad Fregger
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Leaders in organizations…..who manage the most successful organizations
Realize that their company’s most significant value is not their products or services, but the people who make them possible.
Realize that productivity and profitability required to maintain competitive advantage also comes from a focus on people and not the measures themselves
Realize that to sustain long-term success means finding a way to deal with the inevitable crises and changes along the way, whether they be economic, technological, political or human
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
3 Key Principles
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
You Inspire, Build Trust and Earn Respect
With Predictability
Understanding
Control
Compassion
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Quick Question
Describe how a working environment feels when it is characterized by low levels of trust?
Describe how a working environment feels with high levels of trust?
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Tip
Fostering a trusting culture will give you a competitive advantage for talent and dedicated loyalists.
Trust from a CEO, or person of authority, comes easier because he/she is normally is a greater position of authority/leverage. However the ‘VP’ must consider things such as intentions and integrity when making decisions to trust.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Situational factors for trust building:
1. Security
2. Number of similarities
3. Alignment of Interests
4. Benevolent Concern
5. Capability
6. Predictability
7. Integrity
-- Robert F. Hurley
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Leadership Development
Create a match between the organization’s future and individual aspirations.
Provide growth opportunities
Today, the average college graduate will change jobs five times in his or her career. Within the next decade, this norm will probably increase to seven job changes. Recruiting and retaining leaders becomes an economic and strategic challenge.
-- Robert M. Fulmer, PhD, Pepperdine University
© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Succession Management
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Succession Management
Interface between the human resource function and the strategic direction of an organization.
Anticipates the future needs of the organization and helps find, assess, develop, and monitor the human capital required by the organization's strategy.
Reflects the concerns and needs of professionals throughout the organization.
Continuous annual process.
Journey, not a destination.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
A couple of questions….
Do you know what competencies and or critical skills that are needed for your organization’s future growth.
If no, how do you fill your board and staff positions?
Do you know who your ‘Bright Lights/Stars’ are?
Does your board have the right mix of representatives for hiring a new executive director?
When was the last time succession was on your board agenda?
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
If the Agency has…The result will
be:
Vision IncentivesCompe-tencies
ResourcesAction
Plan
= Motivation & Growth
IncentivesCompe-tencies
Resources
Action
Plan= Confusion &
Drudgery
VisionCompe-tencies
ResourcesAction
Plan
= No Motivation & slow or no
growth
Vision Incentives ResourcesAction
Plan= Anxiety &
Failure
Vision IncentivesCompet-encies
Action
Plan
= Frustration & Limited Growth
Vision IncentivesCompe-tencies Resources
= Uncertain & False Starts
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Some Succession Objectives:
Monitor Future Needs – Do you assess external and/or internal factors to your organization on an annual basis?
Talent Assessment – Do you have a core set of competencies?
Developmental Activities – Do you match training and development up to your identified competencies?
Measure Performance – Are you true to evaluation processes. Create a development plan with staff.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Taken from a Hall Consulting
presentation in March, 2003
Prioritization Succession
Plan
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Strategies
KISS method- Make the process logical
Alignment- Align succession management within overall mission, vision and core values.
Cross Train-
Secure executive support- It is imperative for top management/leadership’s endorsement and support.
Share it widely - it is important to inform your staff, board, external stakeholders and funders.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Strategies
Keep Everyone Excited
Know your team
What makes them special and unique?
Train them to succeed
Ask for their input (get them involved)
Give them regular feedback
Praise in public and reprimand in private
Allow them to succeed
Paint the vision and the possibilities
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Strategies
Motivating Exceptional People
Trust them with honest communication.
Really listen to their opinions and concerns
Respect their ideas.
Know they are critical to accomplishingthe objectives of the team.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Common Mistakes in Succession Planning
Ignoring It
Not considering all the issues
Waiting until the last minute
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
When Can Succession Planning Begin?
NOW!
A good time to take a look at succession planning is when creating the annual budget.
Look at how many resources can be dedicated to staff training and development and to board
leadership development.
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Key Questions to Ask
What are the distinctive leadership capabilities that will enable is to implement our business strategy effectively. (competencies)
How many and what kinds of managers will be required to implement our business strategy?
What are our objectives regarding diversity in management?
Do we have the talent across the organization that will match requirements?
Are development plans in place to build needed capabilities and to provide job experiences, education and other learning experiences.
Are we retaining our critical talent?
Are we recruiting talent that brings distinctive capabilities to the organization?
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
WE ARE REALLY NOT TALKING ABOUT
ANYTHING DIFFERENT THAN BOARDMEMBER SUCCESSION……
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Achieving an effective high performing Board
The Board Building Cycle, Board Source, 2003
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Recruiting talented and energetic people
Let’s talk about this for a minute
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
A
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B
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© 2008 Center for Community-Based and Nonprofit Organizations at Austin Community College
Additional Resources
CEO Succession by Dennis C. Carey and Dayton Ogden, Oxford Press
Effective Succession Planning by William J. Rothwell, AMACOM
Systematic Succession Planning by Rebecca Luhn Wolfe, Ph.D., Crisp Publications
Chief Executive Succession Planning by Nancy Axelrod, BoardSource
Succession: Arts Leadership for the 21st Century, Illinois Arts Alliance Foundation
CEO Succession Planning, Suntop Media
Web site: www.transitionguides.com