Leadership and Succession Planning in Non profits


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This is a joint presentation with two other colleagues at the Executive Service Corps for the Senior Leaders in the Non profit field

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Leadership and Succession Planning in Non profits

  1. 1. Using the knowledge and skills gained from their decades of leadership and management experience , ESC consultants provide best-practice based, results-oriented solutions that produce real change for the nonprofits and public agencies we serve.
  2. 2. The ESC Mission Executive Service Corps of Chicago’s highly experienced and trained volunteer consultants strengthen nonprofit organizations and public agencies across the greater Chicago area by bringing them leadership, management and governance skills that are critical to the growth and stability of the nonprofit and public service sectors.
  3. 3. 30 years of experience. Founded in 1978 by a group of civically active business leaders and the Chicago Community Trust, over the last 30 years ESC has delivered 2,400+ consulting projects for nonprofits and public agencies all across the six-county metropolitan Chicago region. <ul><li>Today, ESC serves an average 180 client organizations every year </li></ul><ul><li>ESC currently has 270+ volunteers, all of whom come from long-time leadership careers in the business, education, professional, civic and education sectors </li></ul><ul><li>ESC volunteers contribute over 23,000 hours of their time and expertise every year to the service of our clients </li></ul>
  4. 4. meeting the need for solutions . ESC guides and supports clients in facing critical issues, such as: <ul><li>Increasing demand for service coupled with diminishing resources </li></ul><ul><li>Greater competition for limited funding </li></ul><ul><li>Developing realistic plans for achieving do-able goals </li></ul><ul><li>Efficiently managing finances, marketing and program activities </li></ul><ul><li>Keeping an eye on the future, while remaining focused on the present </li></ul><ul><li>Ensuring Boards of Directors are high-functioning and effective </li></ul><ul><li>Providing the best support for staff in times of great pressure </li></ul><ul><li>Managing transitions and changes in programming and structures </li></ul>
  5. 5. Who We Serve ESC works with a wide variety of Nonprofits & Public Agencies in sectors such as: <ul><ul><ul><ul><li>Children & Youth </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Public Libraries </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Workforce Development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Park Districts </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Animal Welfare </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Substance Abuse Treatment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Social Services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Health Care & Mental Health </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Arts & Culture </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Advocacy & Civic Affairs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Community Development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Domestic Violence </li></ul></ul></ul></ul>...and many more!
  6. 6. ESC Services & Programs Governance Board Development Strategic Planning Fund Development Endowment Planning Retreat Facilitation & Training Leadership Development Executive Coaching Team Coaching Emergency Leadership Kit Leadership Roundtables Management & Operations Financial Management Marketing & Communications Human Resources Organizational Assessment & Review Information Systems Organizational Transformation Executive Transition Management Interim Executive Directors Mergers & Consolidations Urgent Action Teams
  7. 7. guidance for change. Each ESC consulting project is centered on: <ul><li>A comprehensive assessment of needs & opportunities </li></ul><ul><li>A customized approach, tailored to each organization’s unique culture and situation </li></ul><ul><li>Deliverable results that have both short-term and long-term impact </li></ul><ul><li>The lowest possible costs, with far below market-rate fees determined on a sliding scale, thanks to ESC’s funders and volunteer consultants </li></ul><ul><li>Expert consultants who are there because they want to be. ESC consultants donate their time and talents because they want to use their experience, skills and knowledge to help local agencies and the thousands of local residents who depend on them </li></ul>
  9. 9. <ul><li>Just because you write your will does not mean that you are about to die. </li></ul>
  10. 10. Succession Planning <ul><li>In whatever form – is NOT about grooming a successor; it is about developing talent. </li></ul>
  11. 11. <ul><li>Roughly 75% of current executives directors of nonprofits planned to leave within 5 years. </li></ul>
  12. 12. Succession Planning <ul><li>In whatever form – is NOT about grooming a successor; it is about developing talent. </li></ul>
  13. 13. AGENDA <ul><li>Introduction to Executive Succession/Transition Planning </li></ul><ul><li>Emergency Leadership Plan </li></ul><ul><li>Interim Executive Director option </li></ul><ul><li>Planned Executive Transition Management </li></ul><ul><li>Transition/Succession Breakout Sessions </li></ul><ul><li>Recap </li></ul><ul><li>Time for individual situational case questions/discussions with consultants </li></ul><ul><li>Closing remarks </li></ul>
  15. 15. Emergency Plan <ul><li>An Emergency Leadership Plan details which steps your agency will take in the event of an UNPLANNED absence of the Executive director or a key executive </li></ul>
  16. 16. <ul><li>A list of critical information that is needed or daily activities or might be required or special situations. </li></ul><ul><li>Identification of the priority functions/activities of the Executive Director or key executive. </li></ul><ul><li>Written instructions for temporary replacement of the ED or key executive </li></ul><ul><li>A list of individuals who may need to be notified of the executive’s absence </li></ul>
  17. 17. The Interim Executive Director
  18. 18. When is the Interim ED Pool the Answer? <ul><li>When the ED suddenly is gone </li></ul><ul><ul><li>Wins the lottery </li></ul></ul><ul><ul><li>Is hit by the bus </li></ul></ul><ul><ul><li>Moves on to a new job unexpectedly </li></ul></ul><ul><li>When the ED is out for an extended but not permanent time due to </li></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Sabbatical </li></ul></ul><ul><ul><li>Professional education improvement </li></ul></ul><ul><li>When doing a search for a permanent ED </li></ul><ul><ul><li>Searches take an average of 6 months to do properly </li></ul></ul><ul><ul><li>Inadequate preparation, selection and support makes for an unintentional Interim ED. </li></ul></ul>
  19. 19. The Critical Issue When Deciding to Hire and Interim ED… Time! There is no time to search! There is no time to train! There is no time to learn!
  20. 20. The Interim ED Position <ul><li>Is a paid temporary position </li></ul><ul><li>The Interim ED is paid directly by the agency </li></ul><ul><li>Terms are negotiated directly between the candidate and agency </li></ul><ul><ul><li>Salary & payment schedule </li></ul></ul><ul><ul><li>Number of hours weekly </li></ul></ul><ul><ul><li>Maximum duration of agreement (subject to extension) </li></ul></ul>
  21. 21. The Role of the Interim ED <ul><li>Provide day-to-day leadership to staff </li></ul><ul><li>Protect fundraising income </li></ul><ul><li>Ensure key fiscal and managerial functions </li></ul><ul><li>Preserve key donor relationships </li></ul><ul><li>Maintain continuation of programs </li></ul><ul><li>Preserve Organization’s reputation </li></ul><ul><li>Provide board with objective assessment of organization </li></ul>
  22. 22. Attributes of a Good Interim ED <ul><li>Experience as an Executive Director </li></ul><ul><li>Technical skills </li></ul><ul><li>People skills </li></ul><ul><li>Board skills </li></ul><ul><li>The right personality for the right agency </li></ul>
  23. 23. ESC’s Role <ul><li>Screens candidates </li></ul><ul><li>Trains candidates </li></ul><ul><li>Analyzes organizational needs </li></ul><ul><li>Matches candidates to agency </li></ul><ul><li>Provides 3 qualified candidates </li></ul><ul><li>Facilitates clear goals between agency and Interim ED </li></ul><ul><li>Give initial support to Interim ED </li></ul><ul><li>Provides quality assurance check-ins for agency and Interim ED. </li></ul>
  24. 24. The ESC Pool <ul><li>30 highly qualified people selected from over 150 candidates </li></ul><ul><li>A wide range of </li></ul><ul><ul><li>Experience </li></ul></ul><ul><ul><li>Skill sets </li></ul></ul><ul><ul><li>Personalities </li></ul></ul><ul><li>Ready to begin work on short notice </li></ul>
  25. 25. Sample Backgrounds of Interim ED Candidates <ul><li>Health Mothers & Babies Coalition </li></ul><ul><li>Hackensack University Medical Center </li></ul><ul><li>Cook County Court Watchers </li></ul><ul><li>American Heart Assoc., Midwest Affiliate </li></ul><ul><li>Chicago Child Care Society </li></ul><ul><li>Mercy Home for Boys and Girls </li></ul><ul><li>Girls Best Friend Foundation </li></ul><ul><li>Hubbard Street Dance </li></ul>
  26. 26. Typical Interim ED Deliverables <ul><li>Assessment of agency issues and an action plan – 6 weeks after start </li></ul><ul><li>Periodic status reviews with board regarding plan implementation </li></ul><ul><li>Final report detailing accomplishments, assessment of current agency condition and follow-on suggestions for new ED </li></ul>
  27. 27. Leadership & Succession Planning for Leaders at All Levels ICADV
  28. 28. What’s Your Legacy
  29. 29. Leadership is about Perspective
  30. 30. Do You Have the Right Kind of Leaders?
  31. 31. Leadership is about Delegation
  32. 32. Leaders should ask for help!
  33. 33. Leadership Can Be Lonely
  34. 34. Leadership is not just being on top
  35. 35. Leadership Means Being Open
  36. 36. Is There A Gap in Your Organization’s Leadership?
  37. 37. Succession Planning Gone Wrong
  38. 38. What Is Leadership <ul><li>INFLUENCE!! </li></ul>
  39. 39. The Big Shift Making sure that the right work is being done (effectiveness) Making sure that the work gets done (efficiency) Doing the work Leader Manager Individual
  40. 40. What Are My Strengths - The LPI <ul><li>Inspiring a Shared Vision </li></ul><ul><li>Challenging the Process </li></ul><ul><li>Enabling Others to Act </li></ul><ul><li>Modeling the Way </li></ul><ul><li>Encouraging the Heart </li></ul><ul><li>From Kouzes and Pozner “The Leadership Challenge” </li></ul>
  41. 41. What Does My Organization Need? <ul><li>What are the two most important LPI Strengths needed in the Future? </li></ul>
  42. 42. Our Leadership Map <ul><li>Use Venn Circles to display the relationships between your board, staff, clients, regulatory or professional bodies. Display by the size of the circle how much they communicate, influence each other, and relate to each other. </li></ul>
  43. 43. Our Leadership Map <ul><li>Where are we now </li></ul><ul><li>Where am I on the Map </li></ul><ul><li>Our Challenges </li></ul><ul><li>Our Desired Map </li></ul>
  44. 44. An Example Clients Staff ED Board ICADV National
  45. 45. Benefit of Defined Succession Planning <ul><li>Definition: </li></ul><ul><li>Thoughtful planning and activities to ensure organizational sustainability </li></ul><ul><li>Attention to the personal and professional issues of the departing executive director </li></ul>
  46. 46. Lessons Learned From Research <ul><li>Lack of succession planning can result in a post-transition meltdown </li></ul><ul><li>Thoughtful succession planning builds leadership capacity & makes the top job more doable </li></ul><ul><li>A successful leadership transition for a long-term ED requires a lot more up-front effort and time than the search that takes 4 months </li></ul>
  47. 47. More Lessons Learned <ul><li>Successful transition with a long-term ED requires at least 18 months of preparation </li></ul><ul><li>Change is inherently difficult, never “routine” </li></ul><ul><li>There is no one succession planning template </li></ul>
  48. 48. Critical Success Factors for Transitions <ul><li>ED support & celebration </li></ul><ul><li>BOARD leadership </li></ul><ul><li>Planning for AGENCY SUSTAINABILITY </li></ul><ul><li>Preparing the STAKEHOLDERS </li></ul><ul><li>Identifying future LEADERSHIP NEEDS </li></ul><ul><li>RECRUITING & hiring the new ED </li></ul><ul><li>LAUNCHING the new ED </li></ul>
  49. 49. ED Transitions <ul><li>What’s next for me? </li></ul><ul><li>Dealing with legacy & unfinished business </li></ul><ul><li>Setting a date </li></ul><ul><li>Attending to final leadership tasks </li></ul><ul><li>Celebrations </li></ul>
  50. 50. If I’m Not the ED-What’s my role <ul><li>Your role may change-assess how you want to contribute </li></ul><ul><li>You will be impacted by any transition-get involved! </li></ul><ul><li>You may be a candidate for ED role (yikes) </li></ul><ul><li>You know things about leadership and the organization </li></ul><ul><li>Be prepared to give input about the organization’s priorities </li></ul><ul><li>Be a positive factor during change-no gossip! </li></ul>
  51. 51. Succession Planning <ul><li>Succession Planning entails three critical leadership challenges : </li></ul><ul><li>The leadership of preparing for change </li></ul><ul><li>The leadership of saying goodbye </li></ul><ul><li>The leadership of saying hello </li></ul>
  52. 52. Transition <ul><li>Coming to Terms with Change </li></ul>Ending: Losing, Letting Go… Relinquishing Old Way, Old Identity The Neutral Zone Confusion, Direction Finding, Re-patterning The New Beginning Commitment, Rebirth, New Energy, New Sense of Purpose Source: William Bridges
  53. 53. Seven Principles of Transition <ul><li>You have to end before your beginning. </li></ul><ul><li>After the ending and before the new beginning, there is a confusing in-between time called The Neutral Zone. </li></ul><ul><li>The confusing neutral zone can also be a time of great creativity. </li></ul><ul><li>While change can occur randomly, transition is developmental and full of personal meetings. </li></ul><ul><li>Transition is also the primary source of personal (organizational) renewal. </li></ul><ul><li>People go through transition at different speeds and in different ways. </li></ul><ul><li>Most individuals are running a transition deficit most of the time. </li></ul>
  54. 54. Steps in Future Succession Planning (FSP) <ul><li>Build your board and staff bench strength </li></ul><ul><li>Identify what activities they could start to do </li></ul><ul><li>Identify what structures and systems might need to be put in place (monitoring, coaching, etc.) to ensure a successful outcome for FSP ? </li></ul><ul><li>Understand what control and confidence issues may be your issues . </li></ul><ul><li>Consider how the management team and board’s overall roles and decisions may need to change in support of making the executive job more doable and increasing the organization’s capacity of leadership </li></ul>
  55. 55. Board Leadership Departing ED Board Incoming ED
  56. 56. Engaging the STAKEHOLDERS <ul><li>Managers & staff </li></ul><ul><li>Founders </li></ul><ul><li>Clients </li></ul><ul><li>Asking the questions: </li></ul><ul><ul><li>What should stay the same? </li></ul></ul><ul><ul><li>What’s going to change? </li></ul></ul><ul><li>Communications Plan </li></ul>
  57. 57. Skills ED’s most need to build From Daring to Lead 2006, a joint study of CompassPoint and The Meyer Foundation
  58. 58. Planned Transition Scenario 25 minutes <ul><li>Read materials </li></ul><ul><li>Select a spokesperson </li></ul><ul><li>Answer the questions </li></ul><ul><li>Return to seats </li></ul>
  59. 59. Your Leadership Strategy <ul><li>Which of the skills listed do you have now? </li></ul><ul><li>Which skills are most needed </li></ul><ul><li>during the next 5 years </li></ul><ul><li>What are critical challenges your organization will face during a leadership transition (yours/ED? Other critical leaders) </li></ul><ul><li>Write, discuss, and then report out after 15 minutes key themes </li></ul>
  60. 60. What are your next steps <ul><li>What do need to talk about at your organization? </li></ul><ul><li>What do you need to do? </li></ul><ul><li>What information do you need to collect? </li></ul><ul><li>Other actions? </li></ul>
  61. 61. Thank you for your participation!
  62. 62. experience. solutions. change. Executive Service Corps of Chicago 25 E. Washington Street, Suite 1500 Chicago, IL 60602 Tel: 312.580.1840 [email_address] www.esc-chicago.org
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