1. Succession Planning
Planning for tomorrow's sustainability
Miranda R. Dalton Succession Planning
Planning for Tommorow’s Sustainabiliy

2. Agenda
Presentation Approach
1 Defining Succession Planning
2 Developing the Business Case for Succession Planning
✓ 3 Preparing a Succession Plan
4 Benefits of Succession Planning
5 The Role of Top Management in Succession Planning
6 The Role of the Board of Directors
7 A Process Not to be Ignored

3. Defining Succession Planning
Knowledge Succession
Sustainability
Management Planning
Planning for Tommorow’s Sustainabiliy

4. Defining Succession Planning
Knowledge Management - “the development of tools, process, systems,
structures and cultures explicitly to improve the creation, sharing, and use of
knowledge critical for decision making” (Luthans, 2008).
Succession Planning - “identification and development of potential successors
for key positions in an organization, through a systematic evaluation
process and training. It is largely predictive in judging an individual for a
position he or she might never have been in” (Succession Planning).
Planning for Tommorow’s Sustainabiliy

5. Developing the Business Case
The argument establishes that succession plans
maximize business performance based on
having the right talent at the right time
(Four Questions to Get it Right From the Start, 2012).
If true, the odds of continued existence of the business or organization increases.
Planning for Tommorow’s Sustainabiliy

6. Preparing A Succession Plan
A Key Step to Consider
What are the key positions that have the most impact?
• Determining which positions are the most impactful will require careful analysis
from the Executive Director and the Board of Directors.
• The determination of positions will vary among nonprofits.
• It is important to understand that what is key to one nonprofit may not be true for
another when organizational structure is considered.
Planning for Tommorow’s Sustainabiliy

7. Benefits of Succession Plans
1. Long-term sustainability
2. Establishing knowledge as a tangible asset
3. Decrease in the learning curve
4. Continued professional development of employees
5. A highly motivated, engaged workforce (Creating a Succession Plan That Works, 2012)
6. A developed talent pool that can be drawn upon at anytime for any reason
(Creating a Succession Plan That Works, 2012)
Planning for Tommorow’s Sustainabiliy

8. The Role of Top Management
The vision for succession planning and talent management must begin at the top
and not be the sole responsibility of Human Resource Department.
(Creating a Succession Plan That Works, 2012).
When top management is engaged in the process, it becomes a priority of the
organization and the odds of implementation and success are increased.
When top management is involved, every employee at every level will understand
his or her value to the organization (Creating a Succession Plan That Works, 2012).
Planning for Tommorow’s Sustainabiliy

9. The Role of the Board of Directors
The relationship between the current Executive Director and the Board of Directors is critical to
the succession planning process.
According to the CEO Snapshot Survey (sample size:83), from the CEO perspective, even
good relationships with the board begin to breakdown during the succession planning process.
(The Real World of CEO and Board Relations, 2012).
Many CEOs reported miscommunication with the board about selection decisions and
responsibilities was the most difficult part of the succession process.
(The Real World of CEO and Board Relations, 2012)
The majority of CEOs feel left out of the loop—76 percent of CEOs believe they
should have been more involved in planning their own succession.
(The Real World of CEO and Board Relations, 2012)
Planning for Tommorow’s Sustainabiliy

10. The Role of the Board of Directors
The role of the current CEO or Executive Director is key in the training and
development of his or her successor.
There should be ongoing communications between the board and the current
Executive Director to produce a smooth transition in leadership.
Anything less would result in the potential loss of knowledge transference between
the current director and his/her successor.
Planning for Tommorow’s Sustainabiliy

11. Conclusion
Organizations put off
succession planning because
it doesn’t look like a value-
adding task. There are often
other, higher priority things, on
which to spend Human
Resource dollars especially
when smaller nonprofits are
considered. It takes effort to
identify and develop
employees for current and
future leadership roles.
Succession planning is a
process that should not be
ignored, but a process that
should be embraced to ensure
the sustainability of the
organization moving forward.
Planning for Tommorow’s Sustainabiliy

12. Works Cited
Creating a Succession Plan That Works. (2012). Credit Union Management
, 35 (5), 34-37.
Four Questions to Get it Right From the Start. (2012). Chief Learning
Officer , 11 (6), Special Edition pg.1-3.
Luthans, F. (2008). Organizational Behavior (Eleventh ed.). New York, New
York: McGraw-Hill.
Succession Planning. (n.d.). Retrieved June 30, 2012, from
BusinessDictionary.com:
http://www.businessdictionary.com/definition/succession-planning.html
The Real World of CEO and Board Relations. (2012). 33 (194), 1-5.

13. THANK YOU!
Succession Planning
Miranda R. Dalton Planning for Tommorow’s Sustainabiliy