TransitionLeader

The e-newsletter on nonprofit executive succession and transition.   

Vol. 3 No. 1, Winter 2005-06   

 

 TransitionGuides Home Page | Newsletter Page   

  In this Issue

 

  Welcome


Welcome to our year-end edition of TransitionLeader. It's been a year of continued progress in the growth of attention to leadership transition. This issue highlights some of the year’s breakthroughs and provides an initial list of FAQ’s on executive transition and succession planning as well as other updates.

 

The highlights of 2005 include:

  • Completion and publication of the largest study (2,200 respondents) of nonprofit leadership transitions by the Annie E. Casey Foundation and Managance Consulting, affirming the growth of the annual pace of transitions and the impact of the first wave of baby boom generation leader exits. (Click here for the full report from this study or here for the summary.) This study, when combined with CompassPoint Nonprofit Services' updated Daring to Lead study, due out in the spring of 2006, provides hard data to support planning by organizations and the sector.

  • Growing attention to succession planning and learning about its application to nonprofit organizations. The January 12 The Chronicle of Philanthropy includes a cover story and a set of articles on transition and succession by Holly Hall.

  • More growth and interest by management support organizations and consultants in learning about and providing executive transition management services. CompassPoint led a sell-out training on ETM consulting in November; management support organizations in California, Maryland, Washington DC, New England, Pennsylvania and New York are growing their programs while other states explore how to get started.

We hope you enjoy our first foray into transition and succession FAQ's.  Please let us know what questions or suggestions you may have at info@transitionguides.com. You'll also find below a short review of an interesting new book on nonprofit leadership.

 

Best wishes for a blessed and wonder-filled 2006 from all of us at TransitionGuides and the growing leadership transition family.

 

Peace,

 

Tom Adams & Don Tebbe
 

  Feature Article

Frequently Asked Questions about Executive Transition & Succession Planning
By Tom Adams, President, TransitionGuides

 

Executive Transition FAQs:

 

Q. What are the most important steps for a board to take when its executive director gives notice that s/he is leaving?
 A. If the executive is leaving in ninety days or less, the first tasks are to decide who is in charge and develop a transition and search timeline.  That is, clarify the internal or executive leadership role by appointing an interim or acting executive and define how the board will lead the transition and search by appointing a transition committee (more on the committee later).

 

Once the departure is announced, there will be great pressure to know who is in charge.  Experience shows that quickly organizing a transition committee made up of respected board leaders and appointing a transition chair who has a track record as a communicator and group facilitator will  go a long way toward getting the transition off on the right foot. Communicating quickly to the rest of the board and staff that the committee is in place and the timeline for organizing the transition and search--as well as how board and staff will be involved--is a key next step. Next is holding the initial meeting of the transition committee to review its role, consider whether outside help from a consultant is needed and begin assessing the organization's strengths and aspirations and the role, and skills needed in an interim executive. (For a guide to planning see: Preparing for an Executive Transition - A Step-By-Step Approach to the "Getting Ready" Phase)

If the executive's departure is more than ninety days away, then there is more time for the executive and board leadership to develop a transition plan before any announcement. The same initial steps as above apply. Even if the executive is retiring or willing to stay until a successor is appointed, it is important for the board to respond proactively and not delay in developing its transition and search plan. Prior work on succession and transition policy and planning greatly aid this process. (See below for types of succession planning.)

Q. Why do we need a transition committee and not just a search committee? How big should the committee(s) be?

A. An executive transition involves an arc of events that begins with the departing executive's decision to leave and isn't complete until the initial performance evaluation of the successor. There are several important and time-consuming jobs to be done by board leaders to insure a successful outcome during leadership transition.  The most intense and most numerous events are those involved with the executive search, but the responsibilities of the transition committee also include guiding the planning that precedes the search as well as supporting the post-hire process that follows the search, in which you cement the board relationship with the new executive and developing the plan the performance evaluation.

 

The size, resources and type of the organization (national, community-based, etc.) will influence the nature and amount of the work the board will do. There is no avoiding a need for some board members to "step up" when transition occurs. When the executive leaves, normal roles, responsibilities and procedures may be modified until the new executive is fully functioning in the position. Additionally, the transition provides great opportunities for advancing the mission, leadership and capacity of the organization. For these reasons, for most organizations we recommend the transition and search committee be combined and called that (or simply the transition committee). Depending on the size of the board, how staff is involved in the process and how many, and the extent to which external stakeholders or new board members might be involved, the committee can range in size from 5-7 people (usually no larger than 10). If larger, usually there is a search subcommittee of 3-5 people to do the detailed work of resume review and initial interviewing of candidates. Serving on the transition committee is a great leadership development opportunity; board’s are encouraged to make sure potential future board leaders are involved.

 

Q. Should the board chair also chair the transition committee?

A. Leadership transition, as noted above, is a great developmental moment for the organization. In some situations, it's an opportunity for a relatively new board chair to work with an emerging team of board leaders directly in planning and managing the transition. For long-term board leaders and organizations with a broad mix of seasoned and emerging leaders, appointing someone else other than the board chair to lead the transition can be helpful. In either case, the board chair should be involved in key decisions and might serve ex officio on the committee.

 

Q. Besides bridging a gap between executives, what other circumstances warrant board consideration of an interim executive?

A. When there is a gap in time between executives, some form of interim leadership is unavoidable. Other circumstances where boards should seriously consider appointing an interim executive include:

  • Following a founder or long-term executive - Some churches use interim pastors to make a break between a beloved minister and her/his successor. They do this intentionally because experience has shown that it takes time for followers to let go of a long-time leader and become open to change. A new leader can become a short-term leader, or "unintentional interim," when an organization is not ready to accept or work with the new leader. Founders and long-term executives have a great deal of influence over the culture of an organization and many strategically important relationships. Insuring that both culture and relationships are paid attention to is part of the decision process about hiring an interim.

  • Managing an organizational turnaround – Some organizations face major financial challenges or internal issues that may make it hard to attract a strong pool of applicants for the executive position. In these situations, it is helpful to consider whether an interim executive with skills in the specific areas where organizational strengthening is needed and might increase the long-term odds of a successful transition.

Q. What are the most common challenges organizations face during executive transitions?

A. In our work with hundreds of organizations during leadership transitions, the most common challenges include:

  • Rushing too quickly to hire a new executive without clarifying strengths, strategic direction, and the opportunities the transition presents for the organization to increase its capacity to carry out its mission. This often results in an inappropriate hire, board-executive tension and misunderstandings, and possible short tenure for the new executive.

  • Leaving the staff and/or the full board out of the planning and communication about the transition's progress. There is anxiety during change. Clear, regular communication and appropriate involvement of the board and staff reduce anxiety and miscommunications that can lead to morale issues and downturn in mission accomplishments.

  • Setting a precise salary and advertising it rather than defining the position and then letting the screening and interviewing process clarify what talent commands what price. Sometimes a board will miss great candidates because they appear inflexible about salary. Having a member of the transition/search committee or your transition/search consultant assist in obtaining information from candidates and in leading discussions with candidates about salary and compensation can increase the pool of qualified applicants and the likelihood of a successful hire that advances the organization.  Often times, spending a few thousand dollars more on the executive's salary can reap huge rewards in terms of ability to raise additional resources or increase mission impact.

  • Spending too much volunteer time on resume review and candidate screening. Managing a transition and search takes a lot of time, specifically an allocation of board time and talent. When the board takes on all the resume review and screening, it runs the risk of exhausting the board leaders involved and not having any capacity in reserve to work with and support the new executive because of board fatigue and burn-out. Whether a board leads the search itself or uses outside consultants or resources from board members or stakeholders, it is important to develop a search plan that is realistic for the volunteers involved.

  • Underinvesting in a good start with the new executive. The way a relationship begins is often the way it ends. Developing a welcome and orientation plan and revisiting goals, roles and communication expectations between the board and executive are key to a positive beginning. Ignoring these steps increases odds of the board and executive being out of alignment or having unnecessary misunderstandings early in the executive's tenure.

 

Succession Planning FAQs:

 

Q. What is succession planning for nonprofits? How does it differ from for-profit succession planning?

A. In both the for-profit and nonprofit worlds, there are two distinct philosophical approaches to succession planning: leader replacement and leader development. Leader replacement focuses on readiness to appoint a successor for a specific position whenever turnover occurs. This approach includes development of emergency succession plans and in some cases grooming one or more successors for specific "lynchpin" or key positions. Leader development is a broader approach that focuses on ongoing investment in professional and leadership development in the organization or business. The for-profit sector has a longer track record of pursuing in both approaches and invests significantly more resources in leader development.

 

In the nonprofit sector, there are three emerging types of succession planning:

  • Emergency succession planning and development of a succession and transition policy. A growing number of nonprofits are developing written emergency succession plans that addresses who is in charge in the event of an unplanned or planned change in leadership. The unplanned change is typically addressed in an emergency succession plan. Planned leadership change is addressed in a succession and transition policy.

  • Strategic leader development occurs as a board and staff integrates attention to staff and board development into its strategic and annual planning, under which increased attention and investment in leader development becomes part of the planning priorities.

  • Departure-defined succession planning occurs when an executive and board begin planning for a leadership transition one to three years before it occurs. This approach is a blend of the two above and can result in significant positive advances of the organization and the planning and completion of a successful transition from a long-time leader or founder to a new executive. (TransitionGuides has published a Succession Planning Workbook with a template for an emergency succession plan.  Click here for more information or how to order a copy.)

 

Q. Does succession planning mean I pick and groom my successor?

A. Most nonprofit organizations lack the size and management breadth to adopt a leadership grooming or heir apparent approach to CEO succession practiced in large corporations. The board's role in selecting the successor and the likelihood the board will want to look at other candidates decreases odds that grooming a specific successor will work. More commonly, in their succession plans, nonprofits are able to identify the key roles and competencies of the executive, the stakeholder relationships key to the organization and broaden the involvement of other staff/managers and board leaders as appropriate to their size and culture.

 

Q. Doesn’t starting succession planning too early make the executive a lame duck?

A. When there is a thoughtful plan for ongoing organizational planning and when a public process of transition and search occur, there is much less chance of being perceived as a "lame duck" leader. It's helpful to separate the fear of loss of power or influence from the reality of a planned shift in role, increased delegation of authority and healthy handoff of relationships as a leader begins to "let go" and "prepare the way" for her or his successor.

 

We hope you found this initial round of transition and succession FAQ’s helpful and that you will let us know what questions or suggestions you may have by emailing us at info@transitionguides.com.

 

 

About the Author

 

Tom Adams is the President and Senior Managing Partner of TransitionGuides, a consulting and educational services company specializing in leadership transitions and succession planning. Tom has served as a thought leader, writer and consultant on leadership transition issues for 15 years.

 

  Upcoming & Recent Events

 

Next Steps for Founders & Long-Term Executives.  Launched with support from the Annie E. Casey Foundation in 2002, the Next Steps Workshop helps long-term and founder executives explore the critical and complex issues around succession planning and transition. These intensive, two-day sessions provide a safe and confidential place to ask difficult questions and explore a variety of organizational and personal issues with peers and consultants. To date, more than 120 founders and long-term executives have benefited from Next Steps workshops.  Click here for more information.

 

The Next Steps 2006 Calendar:

To explore hosting this effective and popular workshop for founders and long-term executives for your members or grantees, contact Melody Thomas-Scott at mthomasscott@transitionguides.com or (301) 439-6635.

 

 

Leadership Succession and Executive Transition Clinics – 4 locations in Mid-Atlantic

Free 1-1/2 hour clinics that offer answers and advice for those facing a leadership change.

Sponsored by the Center for Nonprofit Advancement, Maryland Association of Nonprofit Organizations and TransitionGuides, in cooperation with the County Government of Fairfax, Virginia.

  • January 18, 2006 - Baltimore, MD - Noon to 1:30 PM - Maryland Association of Nonprofit Organizations

  • February 15, 2006 - Washington, DC - Noon to 1:30 PM - Center for Nonprofit Advancement

  • March 16, 2006 - Silver Spring, MD - Noon to 1:30 PM - Maryland Association of Nonprofit Organizations

  • April 14, 2006 - Fairfax, VA - Noon to 1:30 PM - Fairfax County Government Center

For more information or to register, visit www.transitionguides.com/clinics.htm.  For questions contact Melody Thomas-Scott at mthomasscott@transitionguides.com or call (301) 439-6635.

 

 

Other Upcoming Events Featuring Sessions on Executive Transition/Succession

TransitionGuides also 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.
 

  Resources


New Book: Leadership in Nonprofit Organizations by Barry M. Dym, Harry Hutson (Thousand Oaks, CA: Sage, 2005). If you are looking for the cookbook on nonprofit leadership or the latest hot tips for leaders, this is definitely not the book for you. However, if you want a broad ranging, stimulating and thoughtful exploration of leadership theory and practice, then get this book. The central tenet is that "alignment" of "the character, skills, values and personal objectives of leaders with the character, resources, culture, and objectives of their organizations, and how the qualities of leaders and their organizations [are] aligned" is "the" essential ingredient of organizational effectiveness. Dym and Hutson propose that alignment "is the fundamental task, the fundamental measure of effective leadership." From this base, they then explore the many dimensions of alignment: the theoretical background, the question of "fit," alignment and organizational life stages, etc. They go on to offer several chapters related to the practice of alignment, including an alignment exercise and a discussion of organizational readiness. The book concludes with a personal-level exploration of inner alignment and the experience of leadership. The chapters on "The Cultural Narrative of Leadership" (how culture tells us how people ought to behave, think, and feel) and "Goodness of Fit" (the fit between leaders and the needs of their organizations) alone were worth the price of the book. The authors include several case studies, which help illuminate the rich ideas in this book. (Thanks to Susan Egmont for suggesting that we review this.)—Don Tebbe

 

  In the Media


Generation Next, What Charities are doing--and not doing--to plan for leadership succession in the January 12, 2006, issue of The Chronicle of Philanthropy. A special report includes a set of articles that cover leadership succession and the role of founders during and after their transition:

 

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