Sustaining the Vision: Leader Succession

Keys to Navigating the Changing Landscape

Introduction of SST Partners

Rebecca DaVee, CPAOutsourced Accounting/CFO Services

Bill Sims, CPAAudit – Nonprofit Organizations

Housekeeping

• Webinar will last approximately 55 minutes

• Attendees will be muted during our discussion, however as we cover various discussion items, post your questions and we will attempt to answer them.

• 1 Hour CPE Credit - in order to receive credit from SST, you must answer the polling questions, respond to the survey and return evaluation/attendance verification form.

• Any questions?

Learning Objectives

• Engage your board in succession planning

• Prepare leadership for exit transition• Create an emergency backup plan• Create a succession plan• Encourage leadership development

Today’s Nonprofit Sector• Nonprofit Sector –

3rd largest US employer

• Approx. 2 million NPOs

• Employ 10.7 million people

• Produce revenues in excess of $1.9 trillion

Hiring and Recruitment

• 52% do not have a formal recruitment strategy

• 67% do not have a formal recruitment budget

• 68% do not have a social media recruitment strategy

• Most candidates for senior/executive level positions come from other nonprofits

Ready or Not

Succession = Change

Vision

Mission

Strategic Plan

Team Effort

Risks vs Benefits

RISKS BENEFITS

• Going out of business

• Sudden and unprepared loss

• Loss of relevancy

• Key operating roles

• New energy/ talent

• Defines leadership and how to advance

Emergency Backup Plans

Purpose

1. Define short and long-term unplanned absence2. Clarify who decides the absence is occurring3. State who assumes the functions and roles of the executive

during the absence.

Emergency Backup Plan

• Create Role/Function• Determine Staff• Communication Plan• Cross-Training Plan• Finalize/Monitor

Succession Planning Roles

• Board Members

• Executive Director

• Key Staff

Essential ComponentsIdentify ED duties and responsibilities

Interim ED

Assignment of duties

Establish timetable

Review/update job description

Who is responsible for identifying, recruiting, interviewing and selecting new ED

“The old adage ‘People are your most important asset’ is wrong. People are not your most important asset. The right people are. Good to great depends on having the right people on the right bus at the right time.” Jim Collins, Good to Great

Strategic Leader Development

1. 3-year strategic plan for leadership development

2. Annual executive performance evaluation

3. Board self-assessment4. Annual evaluation of

staff5. Develop high-

performing team

Strategic Leader Development (Cont’d)

6. Cultivate relationships with external stakeholders7. Financial reserves (6 months operations)8. Financial management systems = industry standards9. Administrative operational manual

Organizational Culture

• Organizational mission• Value and recognition• Understand requirements

for leadership• Leadership development is

encouraged and rewarded• Strategic plan reinforces

developing leaders• Builds a diverse and

sustainable culture• Change occurs calmly

Questions&

Comments

Learning Objectives

• Engage your board in succession planning

• Prepare leadership for exit transition• Create an emergency backup plan• Create a succession plan• Encourage leadership development

Resources

• “Managing Executive Transitions: A Guide for Nonprofits” by Tom Wolfred

• CompassPoint Nonpofit Services – www.compasspoint.org

• “Elements of a Good Nonprofit Leader Succession Plan” by Eileen Morgan Johnson– whitepaper #31072 - www.asaecenter.org

• “Sustaining Great Leadership: Succession Planning for Nonprofit Organizations” by Tom Adams.

• Annie E. Casey Foundation Executive Transition Monograph Series www.aecf.org

Succession Planning

Questions or more information:

bdavee@sstcpa.com/918.857.5685

bsims@sstcpa.com/972.341.9545