Sustainability and Succession Planning: Leveraging Change for Mission Impact

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Sustainability and Succession Planning: Leveraging Change for Mission Impact

  1. 1. 2014 Nonprofit Empowerment Summit Giving It Our All! Sustainability and Succession Planning: Leveraging Change for Mission Impact Tom Adams, Director, Raffa PC
  2. 2. 2014 NONPROFIT EMPOWERMENT SUMMIT SUSTAINABILITY AND SUCCESSION PLANNING: LEVERAGING CHANGE FOR MISSION IMPACT Tom Adams, Director
  3. 3. ABOUT TOM ADAMS 3 TOM ADAMS DIRECTOR RAFFA, P.C. (202) 995-7245 TADAMS@RAFFA.COM 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
  4. 4. TRANSITION: COMING TO TERMS WITH CHANGE 4
  5. 5. WHAT IS SUSTAINABILITY? 5 How is it DIFFERENT than Stability or Vitality?
  6. 6. TERMINOLOGY 6
  7. 7. ORGANIZATIONAL SUSTAINABILITY 7
  8. 8. FOUR CORE ELEMENTS OF SUSTAINABILITY: BUSINESS MODEL/STRATEGY 8 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 that are 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?
  9. 9. FOUR CORE ELEMENTS OF SUSTAINABILITY: LEADERSHIP 9 Leadership in place to meet current and future needs Succession Plans for top leadership Board is a high-value asset to the organization 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
  10. 10. FOUR CORE ELEMENTS OF SUSTAINABILITY: RESOURCES - TRENDS 10 Sufficient financial resources to meet short to midterm commitments (6 to 24 months) Revenue streams are properly diverse and have longevity Favorable trends: revenue, expense and margin; good ratios Proactive resource development strategy in place Sound link: Good stewardship of hard assets and building soft assets Resource PlanStrategy Business Model
  11. 11. FOUR CORE ELEMENTS OF SUSTAINABILITY: CULTURE 11 AGILITY Flexible in a dynamic environment RESILIENCY Bounces back quickly from setbacks • Future focused, results-oriented, and action-based • Organization’s value and impact is widely understood
  12. 12. WHAT IS SUCCESSION PLANNING? 12
  13. 13. WHY PLAN FOR SUCCESSION 13 Ensures organizational sustainability Increases transition success Mitigates risk Gets us beyond an ugly truth that we avoid: All careers eventually lead to a transition… It’s just a matter of when and how well managed
  14. 14. SUCCESSION PLANNING – THREE APPROACHES 14 1. SUCCESSION ESSENTIALS • Executive Backup Plan • Succession Policy 2. LEADER DEVELOPMENT • Proactive Talent Management 3. DEPARTURE-DEFINED • Succession Essentials • Sustainability Planning
  15. 15. SUCCESSION PLANNING: SUCCESSION ESSENTIALS THE “ESSENTIALS” Emergency Backup Plans and Board Adopted Succession Policy 15
  16. 16. SUCCESSION ESSENTIALS: EMERGENCY BACKUP PLANNING 16 Understand Key Functions & Relationships Designate Backup Coverage Cross-Train Backups Develop Procedures & Protocols Document Succession Plan & Policy Prioritize Capacity Building Communicate the Plan Refresh Annually
  17. 17. SUCCESSION ESSENTIALS: SUCCESSION POLICY 17 Board-adopted policy Outlines how to handle a planned executive departure Statement of commitment: • Prepares for inevitable leadership change • Assesses leadership needs before beginning a search Plan to appoint interim leadership
  18. 18. 18 SUCCESSION PLANNING: LEADER DEVELOPMENT BENEFIT: Broadens And Sustains Leadership Capacity & Builds Bench Strength Strategic Talent Management Component Aligning / Assessing Strategizing / Planning Developing / Retaining Reviewing / Recruiting Timing / Implementing Investing / Positioning
  19. 19. 19 SUCCESSION PLANNING: DEPARTURE-DEFINED GOAL Increase organization’s capacity to deliver its mission under new leadership, whenever the transition occurs 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 for continuity
  20. 20. SUSTAINABILITY PLANNING WITH 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 20
  21. 21. THE CONNECTION SUSTAINABILITY – SUCCESSION - TRANSITION 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 21
  22. 22. OVERVIEW: LEADERSHIP SUSTAINABILITY AND EXECUTIVE TRANSITION MANAGEMENT 22
  23. 23. PROCESS OVERVIEW: EXECUTIVE TRANSITION MANAGEMENT 23
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  28. 28. Tom Adams tadams@raffa.com 202-955.7245 28

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