2014 03-11 Sustainability, Succession & Transition Planning

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  • 1. Sustainability, and Succession, and Transition Planning: Options for Actions for Executives, Boards, and Managers Tom Adams March 11, 2014
  • 2. ABOUT TOM ADAMS 2 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 ADAMS DIRECTOR RAFFA, P.C. (202) 995-7245 TADAMS@RAFFA.COM
  • 3. ABOUT RAFFA, P.C. 3 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.
  • 4. 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 4
  • 5. WHY DO THIS WORK? 5
  • 6. TRANSITION: COMING TO TERMS WITH CHANGE 6
  • 7. THE THREE BIG IDEAS Sustainability Planning Succession Planning Executive Transition Management 7 1 2 3
  • 8. How is it DIFFERENT than stability or vitality? 8 WHAT IS SUSTAINABILITY?
  • 9. STABILITY, SUSTAINABILITY & VITALITY 9
  • 10. FOUR CORE ELEMENTS OF ORGANIZATIONAL SUSTAINABILITY 10 Business Model & Strategy Leadership Resources Culture
  • 11. FOUR CORE ELEMENTS OF SUSTAINABILITY: BUSINESS MODEL/STRATEGY 11 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?
  • 12. FOUR CORE ELEMENTS OF SUSTAINABILITY: LEADERSHIP 12 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
  • 13. FOUR CORE ELEMENTS OF SUSTAINABILITY: RESOURCES - TRENDS 13 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
  • 14. FOUR CORE ELEMENTS OF SUSTAINABILITY: CULTURE 14 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
  • 15. 15 THE SUSTAINABILITY MINI ASSESSMENT
  • 16. 16 WHAT IS SUCCESSION PLANNING?
  • 17. WHY PLAN FOR SUCCESSION? 17 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
  • 18. SUCCESSION PLANNING – THREE APPROACHES 18 1. SUCCESSION ESSENTIALS • EXECUTIVE BACKUP PLAN • SUCCESSION POLICY 2. LEADER DEVELOPMENT • PROACTIVE TALENT MANAGEMENT 3. DEPARTURE-DEFINED • SUCCESSION ESSENTIALS • SUSTAINABILITY PLANNING
  • 19. SUCCESSION PLANNING: SUCCESSION ESSENTIALS 19 THE “ESSENTIALS” • EXECUTIVE BACKUP PLAN • BOARD ADOPTED SUCCESSION POLICY
  • 20. 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 20
  • 21. 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 21
  • 22. 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 22
  • 23. SUCCESSION PLANNING: DEPARTURE-DEFINED GOAL INCREASE 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 23
  • 24. 24 THE SUCESSION PLANNING MINI ASSESSMENT
  • 25. 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 25
  • 26. 26 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 Culture Executive Transition Management LINK SUSTAINABILITY – SUCCESSION – TRANSITION
  • 27. OVERVIEW: LEADERSHIP SUSTAINABILITY AND EXECUTIVE TRANSITION MANAGEMENT 27 Culture
  • 28. PROCESS OVERVIEW: EXECUTIVE TRANSITION MANAGEMENT OUTCOME: INCREASED CAPACITY TO DELIVER ORGANIZATION’S MISSION UNDER NEW LEADERSHIP 28
  • 29. 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 MTHOMAS@RAFFA.COM (202) 955-7242 29 A TWO-DAY INTENSIVE HANDS-ON WORKSHOP Register Today! SAVE $95
  • 30. RESOURCES 30  THE NONPROFIT LEADERSHIP TRANSITION AND DEVELOPMENT GUIDE – Covers Leadership Transition and Leadership Development  AVAILABLE FROM AMAZON.COM
  • 31. 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 31
  • 32. QUESTIONS 32
  • 33. Page 21 THANK YOU! Tom Adams – Director tadams@raffa.com 202.955.7245