Investing in Leadership: Planning for Succession www.artsalliance.org

Planning for Succession Introductions Name Affiliation What brought you to this session today? What do you hope to learn?

Introductions

Name

Affiliation

What brought you to this session today?

What do you hope to learn?

Why is succession planning important? Laying the foundation for leadership transition Conducting the search Special issues Available resources Planning for Succession

Why is succession planning important?

Laying the foundation for leadership transition

Conducting the search

Special issues

Available resources

Job Satisfaction Findings ED sources of satisfaction: Mission Relationships Engagement w/art ED sources of dissatisfaction: High importance Org’s finances Stress/long hours Funding req’ts/audiences Unhappy with staff Low importance Conflict with Board Low compensation Isolation Succession: Arts Leadership for the 21 st Century EL sources of satisfaction: Artistic reputation Art/community/mission Relationships EL sources of dissatisfaction: High importance Org’s finances Stress/long hours Unhappy with mgmt Low compensation Low importance Funding/program req’ts Conflict among staff Personnel problems

ED sources of satisfaction:

Mission

Relationships

Engagement w/art

ED sources of dissatisfaction:

High importance

Org’s finances

Stress/long hours

Funding req’ts/audiences

Unhappy with staff

Low importance

Conflict with Board

Low compensation

Isolation

EL sources of satisfaction:

Artistic reputation

Art/community/mission

Relationships

EL sources of dissatisfaction:

High importance

Org’s finances

Stress/long hours

Unhappy with mgmt

Low compensation

Low importance

Funding/program req’ts

Conflict among staff

Personnel problems

ED Turnover Timeline 27% of ED plan to retire after current position. 70% of non-retiring ED plan to leave current job within 5 years.

EL Turnover Timeline 91% of ELs plan to leave current job within 5 years.

Succession Readiness 76% of nonprofit arts orgs have no succession plan in place.

Illinois Arts Alliance Leadership publications and programs Succession: Arts Leadership for the 21 st Century (2002) Planning for Succession: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2003) Filling the Gap: The Interim Executive Director Solution (2005) Working Easier: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2005) Executive Compensation for Illinois Nonprofit Arts Leaders (2005) Peer Coaching Circles (launched 2005) Mentor Connection Service (launched 2006)

Illinois Arts Alliance

Leadership publications and programs

Succession: Arts Leadership for the 21 st Century (2002)

Planning for Succession: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2003)

Filling the Gap: The Interim Executive Director Solution (2005)

Working Easier: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2005)

Executive Compensation for Illinois Nonprofit Arts Leaders (2005)

Peer Coaching Circles (launched 2005)

Mentor Connection Service (launched 2006)

Laying the Foundation for Transition To prepare for succession, organizational leaders should: Develop an emergency transition plan Foster a culture of evaluation Make leadership development a priority Plan for the transfer of knowledge Make a dry run: test and evaluate the system before you need it.

To prepare for succession, organizational leaders should:

Develop an emergency transition plan

Foster a culture of evaluation

Make leadership development a priority

Plan for the transfer of knowledge

Make a dry run: test and evaluate the system before you need it.

The Emergency Transition Plan Who will take the executive director’s place? Who will handle the work of the person(s) filling in for the executive director? How much authority will the interim executive director have? If that authority will be more limited than that of the current executive director, what controls will be put into place? Who needs to be informed and how and when will each person or institution be notified? Who is authorized to speak on behalf of the organization? What financial systems need to be instituted? How will the interim executive director and the board get the critical information they need to run the organization? At what point, and how, will the board initiate a formal search for a new executive director?

Who will take the executive director’s place?

Who will handle the work of the person(s) filling in for the executive director?

How much authority will the interim executive director have?

If that authority will be more limited than that of the current executive director, what controls will be put into place?

Who needs to be informed and how and when will each person or institution be notified?

Who is authorized to speak on behalf of the organization?

What financial systems need to be instituted?

How will the interim executive director and the board get the critical information they need to run the organization?

At what point, and how, will the board initiate a formal search for a new executive director?

Laying the Foundation for Transition To prepare for succession, organizational leaders should: Develop an emergency transition plan Foster a culture of evaluation Make leadership development a priority Plan for the transfer of knowledge Make a dry run: test and evaluate the system before you need it

To prepare for succession, organizational leaders should:

Develop an emergency transition plan

Foster a culture of evaluation

Make leadership development a priority

Plan for the transfer of knowledge

Make a dry run: test and evaluate the system before you need it

The Succession Plan Stems from an up-to-date strategic plan. Answers the following questions: What will your search committee look like and how will it operate? How will the staff be involved in the search process? How will the current executive director be involved in the search process? Will you use an interim executive director? Will you use a search firm or outside consultant?

Stems from an up-to-date strategic plan.

Answers the following questions:

What will your search committee look like and how will it operate?

How will the staff be involved in the search process?

How will the current executive director be involved in the search process?

Will you use an interim executive director?

Will you use a search firm or outside consultant?

The Search Process Appoint a search committee and clarify its mandate Develop a search timeline Identify key competencies for the new staff member Update the job description Create a communications plan Announce the opportunity and recruit candidates Fill the vacancy on an interim basis (if necessary) Screen candidates Select candidates and negotiate an agreement Manage the transition

Appoint a search committee and clarify its mandate

Develop a search timeline

Identify key competencies for the new staff member

Update the job description

Create a communications plan

Announce the opportunity and recruit candidates

Fill the vacancy on an interim basis (if necessary)

Screen candidates

Select candidates and negotiate an agreement

Manage the transition

Transition Committee Size Large enough to be diverse, small enough to be manageable Composition Knowledge of, involvement with, commitment to organization Balance of skills, contacts, points of view Ability to work together effectively Ability to dedicate necessary time Tasks How will the committee keep the board abreast of its progress? How many candidates will the committee present to the board? Staffing Who will ensure the committee’s work gets done expeditiously?

Size

Large enough to be diverse, small enough to be manageable

Composition

Knowledge of, involvement with, commitment to organization

Balance of skills, contacts, points of view

Ability to work together effectively

Ability to dedicate necessary time

Tasks

How will the committee keep the board abreast of its progress?

How many candidates will the committee present to the board?

Staffing

Who will ensure the committee’s work gets done expeditiously?

Developing a Communications Plan A good plan includes strategies for how , when and where to communicate: Departing executive’s plans for the future Composition, mandate and timeline of search committee Job announcement and qualifications Progress updates from search committee Selection of a successor (with background information on their experience and qualifications) Successor’s vision for the organization

Departing executive’s plans for the future

Composition, mandate and timeline of search committee

Job announcement and qualifications

Progress updates from search committee

Selection of a successor (with background information on their experience and qualifications)

Successor’s vision for the organization

Barriers to Greater Involvement of Young African Americans as Arts Organization Leaders Overall organizational development Perception of low status and low pay Schism between generations and subtle discrimination

Overall organizational development

Perception of low status and low pay

Schism between generations and subtle discrimination

Suggestions for Change Create executive apprenticeship opportunities within your organization for existing staff and for other organizations’ existing staff Aggressively recruit young African Americans from both colleges and arts management programs, as well as from the local artist community Develop and enforce term limits and mandatory sabbaticals for existing leaders, and use young African Americans as “acting” staff when possible.

Create executive apprenticeship opportunities within your organization for existing staff and for other organizations’ existing staff

Aggressively recruit young African Americans from both colleges and arts management programs, as well as from the local artist community

Develop and enforce term limits and mandatory sabbaticals for existing leaders, and use young African Americans as “acting” staff when possible.

Succession Planning for Founders Talk to the founder about succession How long do you see yourself running this organization? Do you want the organization to survive beyond your tenure? Help the founder plan for retirement by contributing to a retirement plan Recruit board and staff with the potential to assume greater responsibility Honor the founder Name a building or space in their honor Establish an award or scholarship named for the founder Create an honorary position

Talk to the founder about succession

How long do you see yourself running this organization?

Do you want the organization to survive beyond your tenure?

Help the founder plan for retirement by contributing to a retirement plan

Recruit board and staff with the potential to assume greater responsibility

Honor the founder

Name a building or space in their honor

Establish an award or scholarship named for the founder

Create an honorary position

Succession Planning Resources www.ArtsAlliance.org Planning for Succession: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations Filling the Gap: The Interim Executive Director Solution Coming soon: Human Resources toolkit for small & midsize organizations www.BoardSource.org The Drucker Foundation Self-Assessment Tool Set Hiring the Chief Executive www.ArtsBiz-Chicago.org smARTscope assessment tool

www.ArtsAlliance.org

Planning for Succession: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations

Filling the Gap: The Interim Executive Director Solution

Coming soon: Human Resources toolkit for small & midsize organizations

www.BoardSource.org

The Drucker Foundation Self-Assessment Tool Set

Hiring the Chief Executive

www.ArtsBiz-Chicago.org

smARTscope assessment tool

Investing in Leadership: Planning for Succession www.artsalliance.org