Penn-Mar Human Services is a successful human services organization serving adults with developmental disabilities. The organization provides vocational, residential, and therapeutic services for more than 300 adults of all ages in Maryland and Pennsylvania. It has a $20 million budget, which has been balanced for the past 10 years. 

Penn-Mar came to TransitionGuides for assistance with several challenges. Mort Zifferer, chair of the Penn-Mar Board, explains. “We started out wanting to address two important facts that concerned us. First, our CEO was approaching retirement and we needed to prepare for that important change over the next three or four years. Second, we wanted to get beyond being scared of government cutbacks and clarify what we could do to reduce any negative impact and continue to grow. What ensued was an initial six-month process that we extended because of the enormous progress we were making.” 

Penn-Mar had an established and effective annual strategic planning process. Therefore, TransitionGuides staff integrated its sustainability review process into Penn-Mar’s planning. A sustainability review is an analysis of an organization’s business model, leadership, resources, and culture. It typically results in an action plan that aligns these components around the organization’s strategic opportunities. 

Working within Penn-Mar’s existing planning structure, TransitionGuides surveyed the board and managers, and then interviewed a dozen leading developmental disability organizations. This data informed Penn-Mar’s planning. 

Passionate differences, positive outcomes

Discussions surfaced internal tensions regarding the funding. Management pointed out that it had successfully adapted and balanced the budget for a decade. The board wanted to reduce the proportion of government funding in Penn-Mar’s portfolio, setting a goal of 25 percent nongovernmental income. An added factor: TransitionGuides external interviews indicated declining growth in the residential portion of services for developmental disabilities. These factors set the tone for change. 

Tom Adams, lead consultant on the project, noted that “Debates about the future are the norm in most dynamic organizations. Penn Mar’s discussions and the passionate differences that arose were quite healthy.” 

Several key outcomes resulted. First, Penn-Mar decided it would hire a chief development officer (CDO) with experience in major gifts. TransitionGuides worked with the board to clarify the positional roles of development officer, executive, and president, and how the three would interact at Penn-Mar and successfully led the CDO search. 

The second outcome was the development of succession plans and emergency backup plans for top managers, facilitated by TransitionGuides. This included a deep review of the key responsibilities of management team positions and the creation of a set of board principles and guidelines for an eventual CEO transition. Keith Peterson, CEO of Penn-Mar, notes, “I was a little apprehensive as we got into succession planning. I recognized that retirement was on the horizon but did not want to be pushed into something I wasn’t ready for. This process helped us all prepare for succession when it occurs.” 

Growing new leaders

A third key outcome was a direct discussion of the organization’s culture that resulted in concrete plans. The chief executive and chief operating officer had led Penn-Mar together for over a decade. The Board both appreciated the successes of this leadership team and wanted to see more innovation and adaptation to the new environment.  Management at first wondered what more the Board wanted. Through a review of each of the key programs and more discussion about future leadership needs and desired change, the Board concluded that it was essential to sustain the level of caring and commitment to quality services that drove Penn-Mar’s positive reputation and success. After intense debates about change and the future, consensus was to sustain and build on this culture of quality and track record of success. This shaped the succession planning process and resulted in a commitment to continue to grow internal leaders and executives wherever possible. A plan was established to carry out that goal. 

Anthony Gallo, Board Vice Chair, said, “Frankly I did not know what to expect when we began this succession and sustainability work. This process gave us a way to work through concerns in a positive way and increase the odds we will be here to serve individuals and families for generations to come.”

ActionAid USA is the US affiliate of ActionAid International, a highly respected organization working to end poverty and the injustices that cause it. Key program areas include international policy, food rights, women's rights, emergencies, HIV/AIDS, education, IMF advocacy, and climate change. 

Faced with a chief executive turnover in 2011, ActionAid USA was also at a strategic turning point. The US affiliate was highly respected for its public policy work, particularly with the US government. It also had a strong track record in securing foundation funding for international programs. As it planned the transition to a new chief executive, the ActionAid USA board had three goals: 1) maintaining the organization’s highly engaged role in public policy; 2) expanding its role in securing foundation funding; and 3) elevating its role in raising unrestricted funding for international projects. 

The board also had a keen interest in maintaining aspects of the culture that supported public policy effectiveness. However, they knew some changes would be required in order to dramatically expand the fundraising component, and they wanted a new executive who could take the lead in those changes. Moreover, they recognized that this would involve an organizational change process. Simply hiring a new executive would not deliver the results the board sought. They wanted to redefine the CEO’s role in ways that had implications for organizational culture as well as structure. 

Clarifying roles and priorities

ActionAid USA retained TransitionGuides in April, 2011 to help lead the organization through the executive search and transition. Over the course of the transition, ActionAid USA benefited from the leadership talents of an interim executive on loan from ActionAid International’s London office. As ActionAid USA prepared for the search, they worked with TransitionGuides to clarify the role and priorities for the new executive. Based on that work, the candidate search focused on individuals who had a successful track record in resource development within international federations and a strong sense of the U.S. federal public policy process. 

Through the search process led by TransitionGuides, the search committee put the organizational change process front and center. As they met with candidates, they looked for someone who could maintain the strong public policy advocacy role already played by ActionAid USA while leading dramatic changes in fund development. 

After the hiring process was complete, TransitionGuides worked with the board to establish a transition committee to help guide the on-boarding process for the new executive director as well as serve as a sounding board for the organizational change process. TransitionGuides consultant Don Tebbe noted that this on-boarding process is critical. “We’ve had a high ‘stick rate’ among our candidates—more than nine out of ten are still on the job three years later. We believe this is due to the care we take in helping formulate the search, finding the right candidates who will fit, and finally, getting a good entry plan in place.” 

A 90-day entry plan

To that end, the new executive crafted a 90-day entry plan, working with input from the selection committee and support from TransitionGuides. The transition process is underway and a new strategic plan is in development that will coordinate with ActionAid International’s global strategy. 

ActionAid USA is an excellent example of how a board can effectively conduct executive search and manage transition. First, the board recognized the difference between search and transition. It focused on how the executive director selection would move the organization forward, but also what they needed do to position the new executive to be effective. The search committee embraced both the search and the organizational transition process as integrally linked components of a successful chief executive transition. Finally, the board recognized the importance of follow-through. Rather than just breathing a sigh of relief at the end of the search and getting back to "business as usual," the board recognized that in many respects, hiring was just the beginning of their transition journey. They thus took actions to ensure a quality entry for their new executive. 

We at TransitionGuides felt privileged to accompany ActionAid on this journey.

The Housing Authority of the City of San Buenaventura (HACSB) is a public housing agency serving the coastal community of Ventura, California. In Spring, 2011, its seven-member board of commissioners began a search for a new chief executive officer. The board reviewed search proposals from several firms, including both those with specialties in hiring executives for the public sector and those with a larger focus on nonprofit community development corporations. 

“We knew we needed a firm that would bring us candidates who had leadership experience with both housing authorities and with the broader community development field,” said Commissioner John Polanskey, chair of the board. “We also were looking for assistance in being responsive to our key stakeholders during this change. We decided on TransitionGuides because of their deep experience in housing and community development and their approach, which included attention to both planning the search and on-boarding our new executive.” 

The Housing Authority board worked closely with TransitionGuides to craft a position statement that emphasized the importance placed on affordable housing development, while recognizing the need for someone who had a strong understanding of public housing and Section 8 services. 

The search for unique skills

TransitionGuides consultant Connie Walker explains that an evolution in public housing authorities has resulted in the need for executives with special skills. “Faced with ongoing declines in public housing subsidies from the U.S. Department of Housing and Urban Development, housing authorities around the United States have begun to broaden their business lines to include the development of new affordable housing. This work addresses supply shortages in affordable housing and also generates unrestricted fees to support the agency’s operations.” 

Like other housing authorities around the country, the Housing Authority in San Buenaventura has shifted in this direction. The change brings financial and programmatic benefits and the “feel” of private-sector affordable housing developers. However, as a public housing authority, the Housing Authority must comply with intricate federal requirements and still hold traditional public housing and Section 8 voucher programs as integral to its operations. A comprehensive search was needed to uncover executive candidates with the skills, experience, and passion to lead in this complex environment. 

The Housing Authority focused first on selecting an interim executive director. An interim executive was chosen who had strong management experience and was particularly skilled in financial oversight, in order to ensure a smooth transition through the remainder of the Housing Authority’s fiscal year and in preparation for the coming year’s budget. 

With an interim executive in place, TransitionGuides employed interviews, surveys of both board and staff, and a town-hall meeting with approximately 25 resident leaders to help the Commissioners clarify their priorities for the new executive. Three skills stood out as critical:

1. Broadening the finances and resources of the Housing Authority through new approaches to affordable housing development.
2. Continuing the proactive involvement of residents of housing authority homes in the planning and affairs of the Housing Authority.
3. The financial acumen to complete and implement changes in financial reporting and management.
 

The search process resulted in a strong and diverse finalist pool with the desired skills, putting the Housing Authority in the position of finding the candidate who could lead them into their desired future. “As someone who works in a Housing Authority, I was really impressed with the quality of candidates and delighted with our choices among finalists,” commented Chairman John Polanskey. The two-day final interview schedule included meetings with several key internal and external stakeholder groups. In addition to an interview with the Housing Authority’s Executive Team, finalists met with leaders from the Housing Authority’s Resident Advisory Board, Ventura’s City Manager, several City of Ventura staff who work closely on housing issues, and finally with the full board of commissioners. 

The Housing Authority selected Denise Wise, an experienced executive who had led housing authorities in Hawaii and Colorado along with leadership roles in the private-sector community development field. “I found the hiring practice very thorough and at times demanding,” Wise said. “In the end, I was sure this was a good fit for the Housing Authority and me. I’ve been very pleased with how thoughtful and engaged the Commissioners were and their desire to be clear with me about their expectations. The process and that clarity gave me the assurance I needed to move from Hawaii to California.  The on-boarding process has also been extremely valuable in keeping expectations clear and providing regular opportunities to step out of the day-to-day work to check in. ” 

Commissioner John Polanskey added, “Denise has been on board since October and we are delighted with the progress we are making. We appreciate her experience and knowledge and way of moving things forward in an inclusive way.”