2015 06-03 succession policy & contingency planning for ce os
TRANSCRIPT
Succession Planning Essentials: Succession Policy and Contingency Planning for CEOs
Tom Adams June 3, 2015
ABOUT TOM ADAMS
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Former President of TransitionGuides
Former senior executive of NeighborWorks America
Led research projects supported by the W. K. Kellogg Foundation and the Annie E. Casey Foundation on nonprofit leadership transition and succession
Author of articles, monographs and recent book The Nonprofit Leadership Transition and Development Guide: Proven Paths for Leaders and Organizations
TOM ADAMS Director Raffa, P.C. (202) 995-7245 [email protected]
ABOUT RAFFA, P.C.
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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
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LEARNING OBJECTIVES
1. Examine the succession planning process and the benefits of three succession planning approaches.
2. Discover how to introduce succession planning to your organization as a risk management and leader development practice.
3. Discuss best practices in the development of a Succession Policy and Emergency Backup Plan for the CEO.
4. Identify your Next Steps for a more prepared, leader-ready organization.
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WHY DO THIS WORK?
COMING TO TERMS WITH CHANGE
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Ending:LossLetting GoRelinquishing Old Way& Old Identity
New Beginning:CommitmentRebirthNew EnergyNew Sense of Purpose
Neutral Zone:ConfusionDirection FindingRe-patterning
Source: Bridges, William. Managing Transitions: Making the Most of Change.
2nd ed. Cambridge, MA: Perseus Pub., 2003.
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WHAT IS SUCCESSION PLANNING?
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WHY PLAN FOR SUCCESSION?
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
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SUCCESSION PLANNING – THREE APPROACHES
1. SUCCESSION ESSENTIALS • Executive Backup Plan • Succession Policy
2. LEADER DEVELOPMENT • Proactive Talent Management
3. DEPARTURE-DEFINED • Succession Essentials • Sustainability Planning
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SUCCESSION PLANNING: ESSENTIALS
THE “ESSENTIALS”
Emergency Backup Plans and
Board Adopted Succession Policy
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
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SAMPLE: EMERGENCY BACKUP PLAN
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
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SAMPLE: SUCCESSION POLICY
SUCCESSION PLANNING: LEADER DEVELOPMENT
BENEFIT:
Broadens and Sustains Leadership
Capacity and
Builds Bench
Strength
• Builds Bench
strength
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Strategic Talent Management Component
Investing / Positioning
Strategizing / Planning
Aligning / Assessing
Developing / Retaining
Reviewing / Recruiting
Timing / Implementing
SUCCESSION PLANNING: DEPARTURE-DEFINED
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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
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SAMPLE: BENCH STRENGTH WORKSHEET
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The Succession
Planning Mini
Assessment
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SUCCESSION PLANNING SERVICES
Prepare for planned/unplanned departures Succession Policy and Plan
Key Personnel Emergency Backup Plans
Leader Development : Senior Management
Bench Strength Review
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RAFFA’S BENCH STRENGTH REVIEW
Bench Strength Review can help organizations leverage their management team for overall sustainability, leadership continuity, and retention.
• Advances attention to leadership and management development
• Provides contingency planning for planned and unplanned absences
• Ensures continuity of mission impact through the development of critical competencies and functions.
• Realigns position duties and/or the management structure.
WHY REVIEW MANAGEMENT TEAM’S BENCH?
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• Refreshes and updates position descriptions
• Identifies backup designees for key personnel
• Identifies perceived gaps in support of key functions
• Identifies cross-training needs to expand core competencies and prepare designated backups
• Identifies key relationships held by individuals to mitigate risks to the organization
• Identifies leader development opportunities for key personnel
For new CEOs, provides a review of the management team structure and options for achieving organizational goals
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SAMPLE: BENCH STRENGTH WORKSHEET
STABILITY, SUSTAINABILITY & VITALITY
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SUSTAINABILITY PLANNING
THE FOUR
ELEMENTS
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THE SUSTAINABILITY
MINI ASSESSMENT
WHY DO SUSTAINABILITY AND SUCCESSION PLANNING?
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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
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Culture
Sustainability Planning
Or Departure-
Defined Planning
Succession Essentials • Backup Plans • Succession Policy Bench Strength Review
• Internal Capacity
Action Plan Implementation •Executive Development • Leader Development •Board Development • Strong Business Model • Sharpen Strategy •Change Culture
Executive Transition
LINK SUSTAINABILITY – SUCCESSION – TRANSITION
PROCESS OVERVIEW
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Preplanning with the Executive and/or Board
Organize Sustainability Committee/Task Force
Hold Project Launch/Orientation Meeting
Conduct Interviews & Unpacking the Job
Discussions
Draft Emerg. Backup Plan and Succession
Policy
Review Draft Plans and Policy with
Executive
Review Draft Plans and Policy with
Committee
Finalize Plans and Succession Policy
Board Approved Succession Policy
Conduct Organizational Review
Draft Sustainability Plan Recommendations
Review Sustainability Plan Recommendations with
Executive and CommitteeBoard Review
Implement Sustainability Plan Recommendations or Incorporate Into Strategic/
Business Plan
May Include Recommendations for:Management & Leadership TrainingBoard DevelopmentOrganizational RestructuringRole Realignment
Preparation Phase
Emergency Backup Planning Phase
Sustainability Planning Phase
Sustainability & Succession Planning
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.
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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
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
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LEADER DEVELOPMENT BEST PRACTICES:
Sustainability & Succession Planning
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
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LEADER DEVELOPMENT BEST PRACTICES:
Sustainability & Succession Planning
CEO PROCESS OVERVIEW
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THE NEXT STEPS WORKSHOP
Sustainability, succession, and transition planning for founders and long-tenured executives
July 27-28, 2015 – Baltimore, MD
More information: Melody Thomas [email protected] (202) 955-7242
A Two-Day Intensive Hands-on Workshop
Nonprofit CEOs A Next Steps Planning Workshop
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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)
•
THE BIG HITS! •Peer Insights •Small Breakouts •Reflection Time •Action Planning •What’s Next •Presentations •Resources
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
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.Raffa.com/NewsandResources/Publications
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SUCCESSION PLANNING SERVICES
http://www.raffa.com/SuccessionAndSustainability/Pages/Succession.aspx
QUESTIONS
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[Organization Name]
[Executive Director/President/CEO]
EMERGENCY BACKUP SUCCESSION PLAN
Guideline for the Appointment of an Acting [Executive Director/President/CEO]
in the Event of an Unplanned Absence of the Incumbent
1. Rationale
The [Executive Director/President/CEO] position in a nonprofit organization is a central element in the organization’s success. Therefore, ensuring that the functions of the [Executive Director/President/CEO] are well-understood and shared among the executive team and senior staff is important to ensure organizational stability and leadership continuity in the event of unplanned and unexpected change. This kind of risk management is equally helpful in facilitating a smooth leadership transition even when it is predictable and planned.
The purpose of this plan is to ensure the continuous coverage of duties critical to the ongoing successful operations of [Organization Name]. The Board of [Trustees/Directors] is adopting policies and procedures for the temporary appointment of an Acting [Executive Director/President/CEO] in the event of an unplanned and extended absence of the [Executive Director/President/CEO].The [Board President/Board Chair], or Board [Vice President/Vice Chair] in the absence of the [Board President/Board Chair], may determine the appropriate time to initiate the implementation of this plan. While the Board of [Trustees/Directors] acknowledges that such an absence is highly improbable and certainly undesirable, they believe that due diligence in exercising executive-level management functions requires that it have an emergency backup succession plan in place. It is expected that this plan will ensure continuity in the administration of the organization's day-to-day programs and operations, management of external relationships and supervision of staff and finances.
2. Priority functions of the [Executive Director/President/CEO] position at [Organization
Name]
See the full [Executive Director/President/CEO] position description.
Of the duties listed in the position description, the following are considered to be examples of the key functions of the [Executive Director/President/CEO], and therefore, have a corresponding temporary staffing strategy. Functions to be covered by an Acting [Executive Director/President/CEO] are attached. (See Attachment 2: Emergency Backup Succession Plan Detail: [Executive Director/President/CEO])
The positions assigned in the Temporary Staffing Strategy are based on [Organization Name] organizational structure as of July 2008. In the event this plan is implemented and those assigned are no longer available or positions are vacant, the [Board President/Board Chair] may select other senior staff to support each of the key [Executive
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Director/President/CEO] functions. It is the responsibility of the [Executive Director/President/CEO] to ensure that positions have appropriate cross-training to successfully implement the temporary staffing strategy.
3. Business as Usual
This emergency backup succession plan and the staffing structure at [Organization Name] are intended to minimize disruption in quality service and maintain business as usual to the extent possible. In the absence of the [Executive Director/President/CEO], unless otherwise determined by the Board of [Trustees/Directors], business as usual includes maintenance of the following:
A. Delivery of services B. Accounting, billing, payroll, purchasing and payables C. Fundraising D. Liaison with the Board of [Trustees/Directors]
E. Facilities and information technology oversight
4. Emergency Backup Succession Plan Implementation
The Board of [[Trustees/Directors] authorizes the [Board President/Board Chair] to implement the terms of this emergency backup succession plan in the event of a planned or unplanned temporary, short-term absence of the [Executive Director/President/CEO]. The Vice President of the board is authorized to implement this plan in the event that the [Board President/Board Chair] unavailable or cannot be reached. Phone calls and conference calls are an acceptable substitute for any meetings designated in this plan. As soon as feasible, following notification of an unplanned temporary or short-term absence, the [Board President/Board Chair] may convene an Executive Committee meeting to affirm the procedures prescribed in this plan, or to modify them if needed. While this timeline may vary based on circumstances, the suggested steps for implementation are:
Executive Management Team informs [Board President/Board Chair] immediately of
unplanned absence.
The [Board President/Board Chair] appoints an Acting [Executive Director/President/CEO].
The [Board President/Board Chair] informs Board of the Acting [Executive Director/President/CEO] appointment.
The [Board President/Board Chair] (and potentially other officers) consults with the Acting [Executive Director/President/CEO] on the circumstances of the absence, organizational situation and related factors.
After [Board President/Board Chair] and Acting [Executive Director/President/CEO] consult, stakeholders will be notified following the communications plan outlined below.
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5. Definitions
A temporary absence is one in which it is expected that the [Executive Director/President/CEO] will return to his/her position once the events precipitating the absence are resolved.
An unplanned absence is one that arises unexpectedly, in contrast to a planned leave, such as a vacation or a sabbatical.
A short-term absence is three months or less.
A long-term absence is one that is expected to last more than 3 months.
A permanent absence is one in which it is firmly determined that the incumbent [Executive Director/President/CEO] will not be returning to the position.
6. Emergency Backup plan in event of a temporary, unplanned absence (SHORT-TERM)
A. Who may appoint the Acting [Executive Director/President/CEO]?
1. The Board of [[Trustees/Directors] authorizes the [Board President/Board Chair] to implement the terms of this emergency backup succession plan in the event of the unplanned absence of the [Executive Director/President/CEO].
2. In the event of an unplanned absence of the [Executive Director/President/CEO], a member of the management team shall immediately inform the [Board President/Board Chair] of the absence.
3. As soon as is feasible, the [Board President/Board Chair] may convene a meeting of the Executive Management Team to affirm the procedures prescribed in this plan or to make modifications the [Board President/Board Chair] and team deems appropriate.
B. First backup for the position of Acting [Executive Director/President/CEO]
The [Board President/Board Chair] may designate [First Name] [Last Name], [Title], to the position of Acting [Executive Director/President/CEO]. His/her position description will specify that she may serve as Acting [Executive Director/President/CEO] in the absence of the [Executive Director/President/CEO] unless otherwise decided by the [Board President/Board Chair]. S/he will have an emergency backup succession plan with designated appointees if s/he becomes Acting [Executive Director/President/CEO] or if s/he is otherwise unable to serve his/her own functions as [Title].
C. Second backup for the position of [Executive Director/President/CEO]
The [Board President/Board Chair] may also consider splitting duties among designated appointees based on the primary functions to be carried out. [First Name] [Last Name], [Title], may serve as second backup for the position of Acting [Executive Director/President/CEO]. S/he may serve should [First Name] [Last Name], [Title], be unable or unwilling to serve as Acting [Executive Director/President/CEO] or otherwise decided by the [Board President/Board Chair]. They both will have an emergency backup plan with designated appointees.
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D. Cross-training plan for appointees
The [Executive Director/President/CEO], in collaboration with the [Board President/Board Chair], will develop a plan for training the potential appointees in the priority functions of the [Executive Director/President/CEO] which are listed in section 2 above. The training plan will be attached to this document when the plan is completed. The Human Resources Manager will have the responsibility of handling the logistics of the plan’s implementation.
E. Authority and restrictions of the appointee
The person appointed as Acting [Executive Director/President/CEO] may have the same authority for day-to-day decision making and independent action as the [Executive Director/President/CEO] except as further defined by the [Board President/Board Chair]. Decisions that will be made in consultation with the [Board President/Board Chair] or other appropriate committee include senior management staff hiring and terminations, financial issues, taking on a new project, and taking public policy positions on behalf of the organization.
F. Compensation
The [Board President/Board Chair], in consultation with the Executive Committee, may consider a salary adjustment for the Acting [Executive Director/President/CEO].
G. [Board President/Board Chair] responsibility for oversight and support to the Acting [Executive Director/President/CEO]
As with the [Executive Director/President/CEO], the [Board President/Board Chair] and Board of [Trustees/Directors] will have the responsibility for monitoring the work of the Acting [Executive Director/President/CEO]. The Acting [Executive Director/President/CEO] will provide regular updates and meet with the [Board President/Board Chair] as President may determine. The [Board President/Board Chair] will also be alert to the special support needs of the Acting [Executive Director/President/CEO] serving in this temporary leadership role and act to address them.
H. Communications plan
Within eight (8) hours after an Acting [Executive Director/President/CEO] is appointed, the [Board President/Board Chair] and the Acting [Executive Director/President/CEO] will meet to implement an external communications plan to announce the organization’s temporary leadership structure, including the kind of information that will be shared and with whom (e.g. major donors, civic leaders, government officials).
Within 24 hours after an Acting [Executive Director/President/CEO] is appointed, the [Board President/Board Chair] and Acting [Executive Director/President/CEO] will implement the communications plan to announce the organization’s temporary leadership structure to the management team, the Board of [Trustees/Directors] and the Advisory Boards.
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Notifications will take place in sequence on the following timetable:
Within 24 hours, the [Board President/Board Chair] will notify the Management Team.
Within 24 hours, the Acting [Executive Director/President/CEO] will notify
the staff.
Within 72 hours, the [Board President/Board Chair] and the Acting
[Executive Director/President/CEO] will notify parents via mailed letter.
Within seven days, the [Board President/Board Chair] and the Acting [Executive Director/President/CEO] will notify other consumers.
Within seven days, the Director of Operations will notify the closest
vendors, the banks and the auditor.
Within seven days, the Director of Development will notify the closest donors and foundations.
Within seven days, the Acting [Executive Director/President/CEO] will
notify the local and state governmental funding agencies, appropriate officials and the landlords.
Updated Key Contact information will be maintained in the organization’s database for easy access on an ongoing basis by a member designated by the [Executive Director/President/CEO].
7. Emergency Backup plan in event of a temporary, unplanned absence (LONG-TERM)
The procedures and conditions to be followed will be the same as for a short-term absence with one addition: The [Board President/Board Chair] will give immediate consideration, in consultation with the executive management team, to temporarily back-filling the position left vacant by the Acting [Executive Director/President/CEO]. This is in recognition of the fact that, for a term of more than three months, it may not be reasonable to expect the Acting [Executive Director/President/CEO] to carry the duties of both positions. The position description of a temporary appointment would focus on covering the priority areas in which the Acting [Executive Director/President/CEO] needs assistance.
8. Emergency Backup plan in event of a PERMANENT unplanned absence
The procedures and conditions will be the same as for a long-term temporary absence with one addition: The [Board President/Board Chair] may appoint a Transition and Search Committee of no less than five members in accordance with the terms of [Organization Name] Succession Policy and follow the procedures set forth in the Policy.
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9. Approvals and maintenance of record
A. Emergency Backup plan approval
This emergency backup plan will be approved by the full Board of [Trustees/Directors] and reviewed annually at a formal Board meeting to make any needed changes in the standing appointees or backups. The [Board President/Board Chair] may review and amend the plan at other times if a standing appointee or backup is no longer available to serve in an Acting [Executive Director/President/CEO] capacity. The [Board President/Board Chair] may reevaluate the plan when new designees are appointed.
B. Signatories
The [Board President/Board Chair], the [Executive Director/President/CEO], the Human Resources Administrator, and the designated backup appointees will sign this plan.
C. Maintenance of record
The [Board President/Board Chair], the [Executive Director/President/CEO], the Human Resources Administrator, and the designated backup appointees will maintain copies of this plan.
Approved by [Organization Name] Board of [Trustees/Directors] on ____________.
________________________________________________ [First Name] [Last Name, [Board President/Board Chair]
_________________________________________________
[First Name] [Last Name], [Executive Director/President/CEO]
I acknowledge that I have reviewed this plan:
____________________________________ [First Name] [Last Name], [Title] ____________________________________ [First Name] [Last Name], [Title]
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[Organization Name]
Executive Director Succession Policy
Introduction A change in executive leadership is inevitable for all organizations. It is a time of both risk and opportunity. It is a period in an organization’s history when the Board President must increase his/her level of engagement. It is also a time when some may seek assurance of the organization’s viability and long-term sustainability. A succession policy for the Executive Director position is a routine risk management and sustainability planning tool. The Policy ensures organizational sustainability by providing a proactive, orderly plan for executive leadership transitions. To that end, the Board of [Organization Name] is adopting this succession policy for purposes of:
Focusing Board attention on leadership team development through annual communications between the Executive Director and Board about the depth of staffing and succession plans for Management Team positions
Establishing principles, role clarity and procedures to support positive leadership transitions that foster good endings and beginnings with departing and arriving leaders and build organizational capacity when a planned or unplanned executive leadership change occurs
The Board President shall be responsible for implementing this policy and its related procedures, and for annually reviewing and updating the policy as needed. In the event of a planned or unplanned leadership transition, the Board shall immediately appoint a Transition Committee which shall plan and manage the transition, including the search for a new Executive Director. The Transition Committee shall be comprised of at least five and no more than seven members including at least three board members. Ideally these board members will represent past, present and prospective future leaders of the board of the board. The Board may also consider appointing a staff member(s) and/or another stakeholder(s) to the Transition Committee. Guiding Principles
[Organization Name] is open to and will consider both internal and external candidates when filling the Executive Director position. A national search will be conducted unless the board concludes that a current staff member is appropriate and available for the job.
In organizations such as [Organization Name], the Executive Director’s position is often shaped by the incumbent’s talents and areas of specialized interest. That person’s
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departure might necessitate other organizational changes including the creation of new positions and/or realignment of current positions.
The preeminent goal of a transition to a new Executive Director is maintaining continuity of [Organization Name]’ mission-related work. A transition also presents an opportunity for the organization to continue to grow and develop.
Lines of Authority
1. The selection of the Executive Director is the responsibility of the Board.
2. The current Executive Director has the responsibility to continuously identify, encourage, and help to develop senior managers within the organization who are qualified to meet future leadership needs, whether that be on a temporary or permanent basis.
3. The current Executive Director has the responsibility to plan for the orderly transition of all senior managers.
Emergency Backup Plan
1. Related to the position of Executive Director: To be prepared at all times for a leadership transition, the organization shall maintain an up-to-date Emergency Backup Plan with guidelines for the planned or unplanned short-term and long-term absence of the Executive Director. This plan is approved by the Board and will be reviewed annually. The plan can also serve as the Transition Plan when there is a vacancy in the Executive Director position.
2. Related to Management Team Positions: To be prepared at all times for a senior management transition, the Executive Director shall maintain an up-to-date Emergency Backup Plan with guidelines for the planned or unplanned short-term and long-term absence of members of the Management Team. Those plans shall be provided to the Board President and made available to the Board.
Board Action in the Event of Vacancy in the Executive Director Position
1. Organizational Assessment: The Board or Transition Committee shall take time to assess the leadership needs of the organization before the search for a new Executive Director is conducted. The assessment shall include a review and update (if needed) of the organization’s strategic plan. The assessment will be designed to help assure the selection of a qualified and capable leader who fits well with the organization’s mission, vision, values, culture, goals, and objectives, and who has the necessary skills to lead the organization.
2. Option of appointing an Acting or Interim Executive Director: To assure the
organization’s operations are not interrupted while the Board assesses the leadership needs and recruits a new Executive Director, the Board may appoint an Acting Executive Director from among senior executive staff or hire an Interim Executive Director from outside the organization.
3. Duties of the Acting/Interim Executive Director: Among such duties will be to ensure that
the organization continues to operate without disruption and that all organizational
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commitments previously made are appropriately executed, including but not limited to, speaking engagements, grant and contract obligations, reports, licenses, certifications, membership renewals, and other obligations to funders and other stakeholders.
4. Simultaneous transitions for the Executive Director and Senior Management Positions:
After appointing an Acting or Interim Executive Director from within, the Board may make other temporary senior management appointments from among other senior management staff, external hires, or whatever combination of those options best assures continuity in leadership and program success through the transition period and afterwards.
Preparation Time Frame for Replacement of the Executive Director
1. The optimal period for the Executive Director to announce his/her departure from that role – or proposed commencement of a new role in the organization – is at least six to twelve months before the date of departure.
2. The organization’s Board understands that the time required for successfully completing a planned leadership transition is approximately eight to twelve months.
Role of the Outgoing Executive Director in Planned Transitions The departing Executive Director, unless otherwise directed by the Transition Committee, will be involved in some transition activities such as: fundraising, communicating with funders and other stakeholders, and briefing the incoming Executive Director. The departing Executive Director's role during the transition and after the new Executive Director starts shall be developed in consultation with the Board President and/or Transition Committee and communicated to the Board.
Initial Implementation of the Transition Plan
1. Within fifteen (15) days of the announcement of a planned departure, the Board President shall appoint a Transition Committee. This Committee shall be comprised of at least three members of the Board. Other external stakeholders and/or staff may be recruited to advise or assist the Committee at the discretion of the Board President and Transition Committee.
2. The Transition Committee shall be responsible for implementing this transition plan and
further developing the plan as needed. At its first meeting, the Transition Committee shall determine its role, including responsibilities related to conducting the search process. (The Transition Committee may recommend that the Board President appoint a separate Search Committee, while the Transition Committee manages the overall transition process for the organization.) The Committee shall also discuss and decide on how the senior staff will be substantively involved in the transition planning process and consulted in the selection process.
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3. The Transition Committee shall also determine the need for consulting assistance (i.e., transition management consultant and/or executive search firm) based on the circumstances.
4. As needed, the Board President shall authorize an organizational assessment and
schedule a Board Retreat to review and/or refresh the organization’s strategic plan. [Organization Name] Commitment Regarding Diverse Candidates and Staff Leader Development
1. In order to provide career advancement for staff, the organization shall encourage the professional development of current employees.
2. In order to support the Board’s due diligence and ensure that the best possible candidate is hired, the organization shall implement a search and selection process that is open to internal and external candidates.
3. In order to develop a finalist pool that is reflective of the community, the organization shall work proactively to develop a diverse pool of candidates for the Executive Director position.
Adopted by the Board of Directors on the ___ day of ____________, 2015. ________________________________ [First Name] [Last Name], [Title]