Part 2

1. Preparing Your
Organization and Yourself
for a Successful Transition
Rachael Gibson
September 8, 2015

2. ABOUT RACHAEL GIBSON
2
Rachael has managed grantmaking programs and
spearheaded numerous capacity building initiatives.
In prior roles, she has facilitated diversity and leadership
development trainings, served on various nonprofit boards
and task forces, and presented workshops at local and
national conferences.
She currently serves on the board of the Alliance for
Nonprofit Management and also serves as a senior
consultant and co-leads succession and sustainability
engagements.
Rachael Gibson
Manager
Raffa, P.C.
(202) 995-7221
rgibson@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.
RAFFA, P.C.
1899 L Street, NW,
Suite 900
Washington, DC 20036
(202) 995-7245

4. LEARNING OBJECTIVES
•Discuss sustainability planning and the four core
elements of sustainability planning
•Examine the succession planning and the benefits of
three succession planning approaches
•Discover how to introduce sustainability planning and
succession planning to your organization as a risk
management and leader development practice
•Identify your Next Steps for a more prepared, leader-
ready organization
4

5. WHY DO YOU DO THIS WORK?
5

6. COMING TO TERMS WITH CHANGE
6
Ending:
Loss
Letting Go
Relinquishing Old Way
& Old Identity
New Beginning:
Commitment
Rebirth
New Energy
New Sense of Purpose
Neutral Zone:
Confusion
Direction Finding
Re-patterning
Source: Bridges, William
.
Managing Transitions: Making the Most of Change
.
2nd ed. Cambridge, MA: Perseus Pub., 2003.
TRANSITION

7. How is it
DIFFERENT
than
stability or
vitality?
7
WHAT IS SUSTAINABILITY?

8. STABILITY, SUSTAINABILITY & VITALITY
8

9. Business
Model &
Strategy
LeadershipResources
SUSTAINABILITY PLANNING
9
Culture
THE
FOUR
ELEMENTS

10. FOUR CORE ELEMENTS OF SUSTAINABILITY:
BUSINESS MODEL/STRATEGY
10
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?

11. FOUR CORE ELEMENTS OF SUSTAINABILITY:
LEADERSHIP
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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

12. FOUR CORE ELEMENTS OF SUSTAINABILITY:
RESOURCES
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Financial resources: sufficient, diverse, well-managed
Physical assets (facilities, campus, etc.) are maintained
Human resources (staff, volunteers) are sufficient, stable, engaged
Technology aligns with the business model
Reputation/brand: understands its reputation in the community
Proactive resource development strategy in place
Good stewardship of hard assets AND building soft assets

13. FOUR CORE ELEMENTS OF SUSTAINABILITY:
CULTURE
13
“Sacred values” clear to board and staff
Decision-making authority defined
Agile and resilient
Agreement on commitment to diversity and inclusion
Culture and future direction aligned

14. 14
The
Sustainability
Mini
Assessment

15. 15
WHAT IS SUCCESSION PLANNING?

16. WHY PLAN FOR SUCCESSION?
16
Ensures Organizational Sustainability
Increases Transition Success
Mitigates Risk
Gets us beyond the simple
truth that we avoid:
All careers eventually
lead to a transition…
It’s just a matter of when
and how well managed

17. SUCCESSION PLANNING – THREE APPROACHES
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1. SUCCESSION ESSENTIALS
• Executive Backup Plan
• Succession Policy
2. LEADER DEVELOPMENT
• Proactive Talent Management
3. DEPARTURE-DEFINED
• Succession Essentials
• Sustainability Planning

18. SUCCESSION PLANNING: ESSENTIALS
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THE “ESSENTIALS”
Emergency Backup Plans
and
Board Adopted Succession Policy

19. SUCCESSION ESSENTIALS:
EMERGENCY BACKUP PLANS
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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
BENEFIT:
Ensures
Continuity
Emergency Backup Plans
for:
• CEOs
• Senior Management

20. SUCCESSION ESSENTIALS:
SUCCESSION POLICY
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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
BENEFIT:
Ensures
Board
Agreement

21. SUCCESSION PLANNING:
LEADER DEVELOPMENT
BENEFIT:
Broadens
and
Sustains
Leadership
Capacity
&
Builds
Bench
Strength
Builds
Bench
strength
21
Strategic Talent Management Component
Investing /
Positioning
Strategizing /
Planning
Aligning /
Assessing
Developing /
Retaining
Reviewing /
Recruiting
Timing /
Implementing

22. SUCCESSION PLANNING:
DEPARTURE-DEFINED
22
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

23. 23
The
Succession
Planning
Mini
Assessment

24. WHY DO SUSTAINABILITY AND
SUCCESSION PLANNING?
24
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. 25
Culture
Sustainability
Planning
Or
Departure-
Defined
Planning
Succession
Essentials
• Backup Plans
• Succession Policy
Action Plan
Implementation
• Executive Development
• Leader Development
• Board Development
• Strong Business Model
• Sharpen Strategy
• Change Culture
Executive
Transition
LINK
SUSTAINABILITY – SUCCESSION – TRANSITION

26. WHERE TO START?
• What from this discussion would add value to your
organization?
• Who would need to be convinced of the value and importance
given other competing priorities?
• Who might you see as an advocate or champion?
• What would help make the case clear and compelling to act
now or at a later date?
• What is the biggest barrier to action?
• What is your next action?
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27. RISK MANAGEMENT: SUCCESSION PLANNING
Management of Succession Planning Risk
Strategic implementation of activities & processes designed
to limit the impact of planned or unplanned absences or
vacancies in critical positions when they do occur.
27
Planning Does Planning Does NOT
• Identifies critical roles & functions
• Advances leader development
• Reviews staff with potential (ability
to learn & grow) and experience to
support critical positions during
absences/ vacancies
• Establishes continuity in leadership
• Force staff to vacate a position
• Guarantee anyone a position
• Oblige anyone to take an
unwanted position
• Create anxiety due to an
absence or vacancy
• Eliminate leadership positions

28. RISK MANAGEMENT: SUSTAINABILITY PLANNING
Management of Sustainability Planning Risk
Proactive assessment of the organization’s ability to
accomplish its mission with present and future leadership
with longevity, strength, and success in meeting the needs
of those within the organization and with those served.
28
Planning Does Planning Does NOT
• Builds capacity for mission impact
• Prepares proactively for executive
transition 1-5 years in advance
• Reviews organizational business
model/strategy, leadership,
culture, and resources to increase
effectiveness and longevity.
• Aligned with the strategic plans of
the organization
• Only focus on financial
stability

29. 1. Connect to overall organization strategy
2. Enlist CEO and board support
3. Design as a process, not an event
4. Organize organizationally, not just top level
5. Align with HR practices to support it
6. Approach with discipline and implement
7. Measure and evaluate
8. Give it the time it needs
9. Communicate often
29
LEADER DEVELOPMENT BEST PRACTICES:
Sustainability & Succession Planning

30. THE NEXT STEPS WORKSHOP
Sustainability, succession, and transition planning
for founders and long-tenured executives
Dates & Locations
• January 25-26, 2015 – Washington, DC
More information: Melody Thomas
mthomas@raffa.com
(202) 955-7242
A
Two-Day
Intensive
Hands-on
Workshop
30
Nonprofit CEOs
A Next Steps Planning Workshop

31. THE NEXT STEPS WORKSHOP
“Absolutely necessary for any leader considering this stage in their life as
well as the sustainability of their organization.”(G. Italiano)
“An extremely valuable investment of my time and resources. Next steps is
an eye-opening venture into solid planning both for healthy, viable
organizations as well as those going through challenging changes.” (P.Haynes)
"This workshop helped me to clarify and bring into focus my understanding
of the transition process. I feel ready to develop my plan and set a date." (G.
Overdurff)
“Being both a long-term executive and a founder, I found the next steps
workshop very helpful. I learned much from the experience and knowledge
of the presenters, facilitators and literature. For me, taking care of myself
and focusing on where I was helped to focus on the process and
challenges. Fellow 'journeyers' sharing their issues and stages made it more
enlightening as I applied it to myself.” (R. McMahon)
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THE BIG HITS!
•Peer Insights
•Small Breakouts
•Reflection Time
•Action Planning
•What’s Next
•Presentations
•Resources

32. RESOURCES
 The Nonprofit Leadership Transition And
Development Guide Includes:
– Leadership Transition and Leadership Development
– Strategic Succession Planning
– Three Critical Stages of Transition
– Fortune 500 Talent Management Methods
 Order via Amazon.com
For a better-run,
better-prepared
nonprofit that’s
positioned for
ongoing mission
impact and
success!
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- Kindle Edition: $25.49
- Paperback: $34.29

33. 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
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34. QUESTIONS
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35. THANK YOU!
Rachael Gibson
rgibson@raffa.com
202.955.7221