TransitionLeader

The e-newsletter on nonprofit executive succession and transition.   

Vol. 2 No. 1, Summer 2004   

 

 TransitionGuides Home Page | Newsletter Page   

  In this Issue
 
  Welcome

The last edition of TransitionLeader included the second part in a series of articles that discusses the three phases of executive transition. We began last fall with the “Preparation” or “Getting Ready” phase, which is the first phase of an executive transition. In the last edition we began to discuss “The Pivot” phase and its two objectives: (1) recruit and hire the next director and (2) ensure that the organization is prepared to work with that new executive. Due to the length, we split Phase 2 into two articles. We covered the executive search and selection work in the last edition and continue in this edition with the organizational preparation/platform-building work.
 
  Feature Article
Preparing the Organization for a New Leader - A Step-by-Step Approach
By Don Tebbe, Senior Associate, TransitionGuides

Finding a talented executive who is ready to assume the leadership role is an absolutely essential ingredient of a successful executive transition.  In many ways preparing the organization to work effectively with that new leader can be just as crucial.  It will certainly have a profound impact on the new executive’s early tenure, and in some cases, long-term success.  For this reason you'll want to make sure that the "leadership platform" your new executive steps onto is as solid as possible.

The transition assessment and planning process will typically surface a number of organizational issues that, if left unattended, may hinder the new executive's performance. These can be a major distraction during his/her early tenure when the new director should be building relationships and beginning to learn about the organization—not fighting leftover fires. These issues can range from small system changes (e.g., re-working a financial reporting system) to larger moves that carry over to the new executive's tenure (e.g., shutting down an unaffordable satellite facility and consolidating operations at the central location).

Some of these problems may indeed be too big to tackle in the time before the new executive starts, but identifying the issues, putting plans in place to tackle them and beginning to take some action will help alleviate these constraints and signal to your incoming executive that this is an organization serious about improving its performance.

Step 1 – Clarify the Transition Plan and Enlist Support

In the "Prepare” article (in TransitionLeader Vol 1 No 3), we discussed the development of a transition plan, which is the tool that guides the organizational preparation work.  With the executive search under way, now is the time to revisit that plan with the board and begin its implementation.

Prioritize the Issues--One of the first things to do is establish some priorities.  Questions to ask are:  "Which of these issues is likely to be the largest and most immediate constraint to our new executive?  "Which of these issues, if we don't tackle now while momentum is with us, is unlikely to get resolved?"  Which of these items is likely to do the most to pave the way for success for our new executive?"  Setting priorities can be a good way to enlist board and staff support for the preparation work.  Both are more likely to embrace change if they have a hand in identifying and planning the changes.

Clarify the Roles--Typically the leadership for the organizational preparation work comes from the board's executive or transition committee and the outgoing executive (or the interim/acting executive director).  In refining the transition plan, you will want to make sure that the board, executive and staff roles are distinct.

Map Out the Actions & Timetable--With the issues prioritized and the roles defined, what's left is to identify the actions, establish a timetable and make assignments. The timetable should include periodic meetings or conference calls with the transition committee to provide the necessary coordination for the overall preparation and transition effort.

Step 2 - Prepare the Board

Research by BoardSource has demonstrated that executive directors spend an average of nine hours a week on board-related work. Clearly, the board is not only an incredibly important part of the leadership team, it is a major influence in the executive director's work life.

We suggest starting with the board first because its voluntary nature and schedules generally mean building the transition work around board meeting calendar, providing you with just a few points of access during the transition period.

The transition plan should identify the nature of the board’s preparations.  Examples from TransitionGuides' projects include:

  • Providing training about board responsibilities versus executive responsibilities for a board that traditionally micromanaged;
  • Developing a fund development committee and plan for an organization ramping up its fund development program;
  • Scaling back a large board that identified itself as too large and disinterested; and
  • Recruiting and training new board members for a board that had suffered serious attrition.

This board preparation work isn't just remediation; it should be undertaken with an eye toward the "positive, forward-looking relationship with the new executive" that is the ultimate goal of the executive transition. Encourage the board to look at its vision for where the organization is headed and ask "what is the board’s strategic contribution toward that vision?" How should we govern in light of that vision and the type of executive that we are trying to recruit?"  The answers to these larger questions will go a long way to shaping constructive preparation work and providing the energy and excitement for the changes required.

Step 3 - Prepare the Staff

Preparing the staff usually comes at two stages.  Early in the transition process, it involves helping the staff understand the nature of transitions, the timetable for their organization's project and addressing any emotional impact related to the outgoing executive's departure.  Later, just prior to the  announcement of the new executive, the preparation focuses mainly on the launch of the new executive--how to help educate him/her and build a strong, forward-looking relationship.  Asking staff to help plan the briefing process for the new executive is a great place to start.

In some cases, the staff preparation may involve personnel changes--terminations and/or new appointments.  Generally, TransitionGuides tries to minimize the personnel changes to those that are absolutely necessary.  Terminations during the transition period are some of the most difficult of all transition matters and should be approached with extra care and sensitivity.  Transitions are a time of high anxiety for the staff. A termination, however justified, can heighten those anxieties if poorly handled.

We are often asked about filling vacancies during the transition period.  If it’s a member of the management team or one of the executive director's direct reports, we suggest, if at all possible, letting the new executive make the selection of who is on his/her team.  You can expedite that process by advertising the position and building a candidate pool simultaneously with the executive director search and then allowing the final decision to be among the first that the new executive makes. You might also consider hiring an interim to fill in for key positions such as the chief financial officer or development director.

Step 4 - Prepare the Organization’s Physical Environment and Systems

The condition of the organization's facilities and state of its systems should be reviewed and given attention during the transition.  Nonprofits typically under-invest in their infrastructure. Often the cost of this underinvestment is not fully apparent until there's a leadership change, and folks are faced with understanding and planning the transition.  While a "make-do" culture can be a noble thing for a charity, when it affects the organization's ability to properly manage its donors or track its finances, or when the condition of the facilities puts a damper on program outcomes, it is a performance constraint that ought to be tackled.

Addressing System Issues--We often find that system issues may appear daunting, but often have fairly simple solutions. For example, one organization was actively reviewing a new accounting software program. We found that the root issue was inadequate financial reports. The solution was as simple as fully exploiting the capabilities of their current software by training staff to set up the appropriate reports and getting a software upgrade installed that the organization had avoided in the "interest of savings."

Sometimes transition issues require a more substantial solution that involves new investment and some system development.  For example, in one organization we found that the outgoing executive was carrying around "in her head" all that the organization had in the way of major donor history.  Installing some donor tracking software and doing a "brain dump" with the outgoing executive was a beginning, but the project also involved reviewing paper files to capture the specifics of past donations and other research to flesh out each donor's history.

Some system issues can be tackled during the interim period--before the new executive begins work. Others can be started, but will clearly carry over into the new executive's tenure. Still others may need to be put on hold because crucial decisions may need the input of the new executive. Obviously, if your systems need a major overhaul, that's not something that can be tackled during the interim period and may involve securing some financial support to underwrite a capacity-building effort.  However, the process of sorting these issues out is a good start toward getting them handled. If items are postponed, make sure that they make it on to the "leadership agenda," a topic that will be discussed in the next installment in this series of articles.

Preparing the Physical Environment--The physical plant (office, technology and facilities) should not be ignored. While we try to keep the commotion down to a minimum, several of our interim assignments have involved moving organizations to more suitable quarters.  In most cases, preparation of the physical space doesn't involve something as drastic as a move.  It might be as simple as a ritual cleaning of the entire office, which might be as cleansing for the staffs' spirits as it is for the space.  Our interim executive colleagues routinely comment about working with staff and board members to de-clutter the office and move old files to off-site storage.  The executive's office should receive special treatment.  If there is broken furniture, get rid of it.  Make sure that the files that are there belong there and not in the finance office, etc.  Moreover, make sure that none of the search-related records are left on the executive's desk.

Step 5 - Plan the Handoff, Announcement and Orientation of the New Executive

As the search begins to draw to a close,  it is important to pay attention to how the organization plans to announce the appointment of the new executive, handle the handoff between the departing executive (or the interim/acting executive) and address the new executive's orientation.

Preparing for the Handoff--A good handoff centers on a solid briefing for the new executive.  Part of the organizational preparation phase is planning that briefing and the related materials.  Kathryn Stephens, one of our interim executive directors, prepares what we have come to call "the book." It's a 4-inch ring binder in which she places copies of all key documents that she gathers, as well as meeting notes, copies of key materials for projects in progress, lists of stakeholders, etc.  The handoff then largely consists of Kathryn sitting down with the new executive and going through the binder. Kathryn says, "I also consider this a gift to the staff since they don't have to gather yet another copy of the bylaws, last year's audit, this year's budget, or that proposal that's pending at xyz foundation."

Planning the Announcement--The new executive's appointment is a newsworthy event. Your announcement package should include a press release, bio on the new executive and a basic letter of introduction that can be adapted to various audiences.  Make a list of the media to receive the press release.  As for letting your stakeholders know, we suggest dividing them into three categories: those who should receive a phone call, those who should receive a letter, and those who can read about the appointment in the newsletter.  The first category may include top-level donors, collaboration partners, and others with an intense, active interest in the organization. The second group may include other constituents with an interest but a less active role in the organization. The last category is all your other remaining stakeholders.

Arranging the Orientation--Laying the groundwork for the orientation can begin any time during the organizational preparation stage, but it kicks into high gear as the selection process draws to a close and the new executive has been identified. During the interview process, the new executive should have received a lot of information about the history and evolution of the organization.  He/she should also have picked up many insights into the organization's values, strengths, weaknesses, outlook and long-term, as well as immediate, challenges. The orientation should round out this picture.  If the new executive is from outside of the area, helping him/her get immersed in what needs to be known about the community should also be on the orientation agenda.  Finally, introduction and relationship-building meetings with key stakeholders is a major component of the orientation, often with involvement from board or staff.

It may be appropriate for different individuals to play a role in various parts of the orientation.  An orientation plan--one or two pages covering the actions steps, timeframe and assignments--will help ensure that all involved understand the game plan and who is going to be responsible for which parts.

Conclusion

The goals for the organizational preparation work should be to get as many constraints as possible out of the way of the new executive.  This will help ensure that he/she is not immediately caught up in "firefighting" and will allow the bulk of the time in this early stage of the tenure to be devoted to building those important relationships and other actions that will give the new executive a solid footing and contribute to the long-term interests of the organization.

The Next Installment

Our next installment in this series will address the third part of executive transition management, the Thrive Phase, which includes post-hire launch and support. If you have any questions about the topics discussed here, feel free to call TransitionGuides at (301) 439-6635 or use the "ask a question" form on our web site.
 
  New Research

The 2004 Biennial Nonprofit Executive Leadership Survey is now underway but there are still opportunities for associations and networks to join in this unprecedented effort. Sponsored by the Annie E. Casey Foundation in collaboration with its national partners and several local organizations, this survey will result in developing the largest national database on the frequency of leadership transitions, the demographics of executive and senior managers and a profile of deputies and associates. Preliminary data confirms a gradual increase in leadership transitions over the next 2-3 years, and an increasingly larger number beginning in 2007 when baby boomers begin turning 62. It also confirms that different types of organizations will face different challenges including developing new and more representative leaders of our diverse communities. Clearly now is a good window of opportunity to work on strategies that will help everyone be better prepared.

National partners in the survey include Alliance for Children and Families, Big Brothers Big Sisters, Boys and Girls Clubs, Camp Fire USA, Family Support of America, Goodwill Industries International, Girls Inc, National Congress for Community Economic Development, Points of Light Foundation, United Way of America and Volunteers of America. Local partners in the survey so far include North Carolina Center for Nonprofit Organizations, Georgia Center for Nonprofits, Nonprofit Center of Northeast Florida, Support Center for Nonprofit Management NY/NJ and the Beyer Center for Nonprofit Management at Robert Morris College in Pittsburgh.

There is still plenty of time to participate. The Foundation is inviting other funders, nonprofit associations, networks and partner organizations to participate in the survey for a small sponsorship fee. Web-based and easy to use, sponsors of the survey receive an individualized report on their organizations as well as a national report covering all participating organizations. The national report will be published in December 2004. For more information, contact Paige Hull Teegarden at (571) 233-2627 or phull@transitionguides.com.
 
  New Resources

Founders and Other Gods, the spring issue of The Nonprofit Quarterly includes an article about founders.  Read the full article: www.nonprofitquarterly.org/section/490.html

Capturing the Power of Leadership Change: Using Executive Transition Management to Strengthen Organizational Capacity, published by the Annie E. Casey Foundation and the Evelyn & Walter Hass Jr. Fund, is the first of a series of monographs on Executive Transition Management (ETM) and related topics. This 17-page report provides a step-by-step overview of the ETM process with case examples of the capacity building benefits of the ETM approach. It’s available online at the TransitionGuides web site. A hard copy can be requested through TransitionGuides (call Melody Thomas-Scott at (301) 439-6635 or via email at mthomasscott@transitionguides.com) or from the Annie E. Casey Foundation (call Kiobie Rice at (410) 223-2935 or send an email to Krice@aecf.org).

Two more monographs in this series will be published this fall on founder executive director transitions and the role of the interim executive director. Stay tuned!
 
 ETM Field-Building

New York Support Center expands ETM services – Don Crocker and John Vogelsang of the Support Center in New York are making major strides in working with their board and New York-area funders to expand the Support Center’s Executive Transition Management services. JP Morgan Chase Foundation has recently made a major grant to partially fund this expansion over the next two years and has agreed to help convene other funders. In June, Tim Wolfred of CompassPoint provided training for ETM consultants and interim executives who will work in the expanded Support Center program. More info: Contact Don Crocker at scnmdon@aol.com.

The New England Executive Transitions Partnership, a collaborative of 14 funders in Connecticut, Massachusetts and Rhode Island, has selected Third Sector New England (TSNE) to develop and implement an executive transitions support system for the three-state region. The program is now part of TSNE’s Mission Effectiveness Program under the direction of Deb Linnell. TSNE recently hired an executive transitions project manager and has contracted with CompassPoint to provide training for transition consultants and interim executive directors. The Partnership’s advisory committee continues to provide guidance to the project. For more information, visit TSNE’s web site, www.tsne.org.
 
  Upcoming Events

Alliance for Nonprofit Management Conference, Washington, DC, August 12, 2004 - This year's Alliance conference will feature an Executive Transition Management (ETM) pre-conference session: An Introduction to Executive Transition Management Consulting for MSO’s and Consultants.  This session is geared toward organizational development and executive search consultants, as well as MSO consulting directors who want to learn what is involved in offering the full range of ETM services. More info: www.allianceonline.org or contact Melody Thomas Scott at (301) 439-6635 or mthomasscott@transitionguides.com.

Next Steps Workshop, Oakland, California, September 13-14. Offered by CompassPoint Nonprofit Services with TransitionGuides and Annie E. Casey Foundation support, Next Steps is a powerful peer exchange and workshop designed for founders and long-term executives who are preparing to retire or make a career move in the next one to five years or who are otherwise interested in succession planning. Leading executive directors in the community development, advocacy and human services field, among others, have found this to be a potent--and safe--session for clarifying timing and approaches to succession planning and for exploring the their personal transitions from the executive director's role. For more information about attending, contact Pardis Parsa at CompassPoint: PardisP@compasspoint.org or (415) 541-9000.

New England Executive Transitions Project (NEETP), Marlboro, MA, September 20-22, 2004 - NEETP is sponsoring a three-day training for transition consultants from Connecticut, Massachusetts and Rhode Island. Application and more info: www.tsne.org/section/506.html

NC Center for Nonprofits Annual Conference, Research Triangle Park, NC, October 27, 2004 - Intensive one-day workshop: Executive Transitions: Planning Ahead and Doing it Right. More info: www.ncnonprofits.org/conf04.html

Training for Executive Transition Consultants, December 1-3, 2004 - Premier three-day training session for experienced consultants who want to move into the ETM arena. (This will be a repeat of the oversubscribed fall 2003 West Coast event. Location will be East Coast--Baltimore or Atlanta.)  More info: Contact Ken Kurtzig at CompassPoint at 415-541-9000 ext 352 or via email at KenK@compasspoint.org.

TransitionGuides offers customized training on a variety of executive transition topics for foundations, nonprofit associations and other groups.  Please call us at (301) 439-6635 for more information.
 
  Subscribe/Unsubscribe/Feedback

If this message was forwarded to you and you'd like to join our mailing list, please go to:
http://www.transitionguides.com/newsltr/en_sub.htm

To unsubscribe, please go to:
http://www.transitionguides.com/newsltr/en_unsub.htm

To change your address, please go to:
 http://www.transitionguides.com/newsltr/en_change.htm

To send us general comments, suggestions or other feedback, please email:
mailto:info@transitionguides.com

 


TransitionGuides
1751 Elton Road, Suite 204 | Silver Spring, MD 20903
Phone (301) 439-6635 | Fax (301) 439-6638
 info@transitionguides.com

 © 2004 TransitionGuides, all rights reserved. | Privacy Information | 8/1/04
 
 


An Annie E. Casey Foundation ETM Partner