1 of 31

Succession Planning

A Training Deck for Leaders and Managers of Harm Reduction Organizations

2 of 31

Succession Planning

  • Ensures that employees are recruited and/or developed to fill each key role.
  • Ensures that we operate effectively when individuals occupying critical positions depart.
  • May be used for managerial positions or unique or hard-to fill roles.
  • Align bench strength for replacing critical positions.

3 of 31

Why Do It?

  • Staff say that agency leadership is a key contributor to job satisfaction, commitment and intent to stay; especially true for top talent.
  • Research shows that staff value most the leadership qualities of honesty and integrity and the organizational quality of transparency.
  • Only 1% of all companies rate their succession management plans as excellent; two-thirds rate them as fair or worse.
  • A small percent of HR organizations have a plan, and nearly 100% will experience a change in leadership.

2

4 of 31

Leadership Change is Inevitable

“A nonprofit undergoing a leadership transition is at a very vulnerable point in its lifecycle. All leaders leave at some point, sometimes unexpectedly, so all organizations need to prepare for this eventuality.”

​

- Jennifer Chandler, “Why Is Succession Planning Taboo?” National Council of Nonprofits blog

​

​

5 of 31

Is this Urgent?

3

  1. Have you lost high potential talent because they didn’t know that they had leadership potential?
  2. If your management team “got run over by a bus,” would their replacements be able to step right in and be productive?
  3. Is anyone in the organization worried about the status of the folks who would have to step up and run the organization in the event of a sudden leadership change?
  4. Has your organization suffered a loss of money, time, or morale because of how it has handled leadership transitions in the past?
  5. If your organization dissolved due to a flawed transition of leadership, would your participants/clients suffer?

6 of 31

Succession Planning – What it IS

7 of 31

What is Succession Planning?

5

An ongoing, systematic, and deliberate practice focused on defining an organization’s strategic vision, identifying the leadership and managerial skills necessary to carry out that vision, and recruiting, developing and retaining talented individuals who have or who can develop those skills. At its best, succession planning is a dynamic, never-ending process of building power within the organization.

​

8 of 31

Succession Planning – What it is Not

9 of 31

Succession Planning is NOT

  • A one-time event
  • A document or set of documents
  • Decided or carried out by an individual
  • Used solely for individual career advancement opportunities
  • Reacting only when a position becomes open
  • Line managers relying solely on their own knowledge/comfort with candidates.

10 of 31

Replacement vs. Succession

  • Reactive
  • Form of Risk Management
  • Substituting
  • Narrow Approach
  • Restricted
  • Pro-Active
  • Planned Future Development
  • Renewing
  • Organized Alignment
  • Flexible

11 of 31

Traditional vs. Progressive

  • Driven by current and

future service needs

  • Successors determined by an open process with multiple inputs and factors
  • Development plans, development discussions and coaching with both candidate, management, mentors, and others held accountable for progress and monitoring
  • Driven by an annual HR procedures
  • Entitlement focus – bureaucratic/buddy payback system - decided in secret
  • “The list” and identified development actions, but no accountability for development

12 of 31

Steps in the process

  • Phase 1: Identify Key/Critical Positions
  • Phase 2: Conduct Position Analysis
  • Phase 3: Develop Succession Plan
  • Phase 4: Monitor, Evaluate, Revise

13 of 31

Phase 1: Identify Key/Critical Positions

  • Key Contributor- in achieving the organization’s mission or would hinder vital functions
  • Specialized Leadership – The position requires specialized or unique expertise
  • Geographic – The position is the only one of its kind in a particular location
  • Vacancy- Position will be vacant due to retirement/advancement in the organization/lateral moves

14 of 31

Phase 2: Conduct Position Analysis

  • What are the external and internal factors affecting this position?
  • What competencies or skill sets will be required?
  • What are the gaps (competencies or skill sets not possessed by the current staff)?
  • What strategies will be used to address the gaps?

15 of 31

Phase 3: Develop Succession Plan

The succession plan is the culmination of Phases 1 and 2.

  • Reviews of the individual positions and high turnover job classes are rolled into one document and gaps and strategies are formulated at an organizational or unit level.
  • The strategies to overcome the gaps are outlined to include target completion dates, responsible parties and required resources.

16 of 31

Phase 4: Monitor, Evaluate, Revise

  • Select evaluation period-typically reviewed annually
  • Be prepared to respond rapidly to unforseen changes to the plan
  • Status/Progress updates should be monitored carefully and collaboratively by the Board of Directors and organizational leadership
  • All monitoring, evaluating, and revising should involve all staff

17 of 31

Overview of Process and Tools

17

​

​

Assess Organizational Risks

and Develop Strategies

Manager and Self Evaluations

Org.Strategic Initiatives, Mission Vision & Values

​

Determine Gap between

Actual Performance

& Behaviors vs.

Required Competencies

Decision-Making

Matrix

​

​

​

Monitor & Track Employee’s Performance

Executive Profiles & Organization Chart

Dev. plans focus on both strengths

And dev.areas

​

​

​

Determine Competencies For Leadership

​

​

Identify Key Leadership Candidates & Assess Against Competencies

Process

Design

Process Implementation

Process

Management

18 of 31

Tools

19 of 31

Decision Making Matrix

20

SOLID CITIZEN PERFORMER

(High Performance/Low Potential) Gets all important things done

Is a pro in his/her position

Is seen as a leader in his/her area Has reached potential

Action Required:

Continue developing in current position; is in the right job

STRONG PERFORMER

(High Performance/Med Potential) Gets all important things done

May act at level of capability of one level above current position

Acts as leader and role model

Exhibits many strengths or competencies beyond current role

Some leadership development issues

Action Required:

Look for opportunity to display leadership in current job

STAR PERFORMER

(High Performance/High Potential) Gets all important things done

Acts at a level of capability of at least one level above current position Acknowledged as a skilled leader and role model

Exhibits many strengths or competencies beyond current role

Has wide spread influence beyond current role

Action Required:

Stretch assignments to prepare for larger role

QUESTIONABLE PERFORMER

(Medium Performance/Low Potential) Gets most important things done

Is very proficient in his/her current position Is not seen as a leader in his/her area

Action Required:

Work on improving performance in current job; may be candidate for lateral move

SOLID CITIZEN PERFORMER

(Medium Performance/Medium Potential) Gets most important things done

Shows signs of leadership and role modeling Exhibits many FCC executive competencies May be new in position

Action Required:

Leave in current job; continue developing skills and improving performance

STRONG PERFORMER

(Medium Performance/High Potential) Gets most important things done Acknowledged as a leader and role model Exemplifies FCC executive competencies

Acts at level of capability of next level in the organization

Action Required:

Focus on performance short term and development opportunities long term

LOW PERFORMER

(Low Performance/Low Potential)

Isn’t getting most important things done Difficulty performing to standards in his/her current position

Action Required:

Consider reassignment to more appropriate position; including lower level or exit option

QUESTIONABLE PERFORMER

(Low Performance/Medium Potential) Isn’t getting most important things done Capable of making higher contribution

May be in wrong job or occupied with non-

work distraction

Action Required:

Focus on improving performance

SOLID CITIZEN PERFORMER

(Low Performance/High Potential)

Isn’t getting most important things done

Has been acknowledged as a team player and role model

Has exemplified FCC executive competencies May be in wrong job or occupied with non- work distraction

Action Required:

Address root cause performance issue; worthy of investment in development

Potential

Performance

20 of 31

Decision Making Matrix

21

SOLID CITIZEN PERFORMER-B

(High Performance/Low Potential)

​

​

JF

STRONG PERFORMER-A

(High Performance/Med Potential)

​

​

LA EB

STAR PERFORMER-A

(High Performance/High Potential)

​

​

BR TO EK

QUESTIONABLE PERFORMER-C

(Medium Performance/Low Potential)

​

​

DS

SOLID CITIZEN PERFORMER-B

(Medium Performance/Medium Potential)

​

​

EH LG TW KS DS

STRONG PERFORMER-A

(Medium Performance/High Potential)

​

​

TK AG

LOW PERFORMER-Mange up or out

(Low Performance/Low Potential)

QUESTIONABLE PERFORMER-C

(Low Performance/Medium Potential)

SOLID CITIZEN PERFORMER-B

(Low Performance/High Potential)

Potential

Performance

21 of 31

Chart Results: Talent Summary

22

Participants

Integration and Balance

Manage-

ment

of Budget

Market Knowledge

Technology and Business Methods

Strategy and Planning

Participant 1

​

Participant 2

​

Participant 3

​

Participant 4

​

Participant 5

​

Participant 6

​

Participant 7

​

Participant 8

​

Participant 9

​

Participant 10

​

Participant 11

​

Participant 12

​

Participant 13

Cross Boundary

Per sp ecti ve

Drive for Results

Adaptability

Organizatio

n Alignment

Communi action and Influence

Develops Self and Others

Functional Competencies Leadership Competencies

This graphical representation is a comparison of each individ

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

ual’s perfor

mance by

competenc

y (each row

on the ver

tical axis

represents an individual's score).

- At Standard

- Exceeds Standards

- Needs Development

22 of 31

Strategic Questions About Succession Planning and Leadership Development

  • What kind of succession plan(s) does our organization need right now, based on where we are in our organizational life cycle?
  • What is our organizational culture? How does it square up with the principles of succession planning?
  • What are our needs for leadership five and 10 years out? Are we consciously developing skills in our emerging leaders that align with those future needs?
  • When we hire (including the ED), do our processes, and does our culture, truly encourage internal candidates?
  • Is our onboarding process as strong as it could be to ensure successful transitions and long-term relationships with our organization?
  • Do our assessment practices make individuals aware of their strengths and how to maximize them in their jobs?
  • How much transparency of leadership practices and decision making exists in our organization? Who knows what the leaders actually do on a daily basis?
  • Are there leadership career paths within our organization? Do we talk about them regularly?
  • Could we offer more “stretch” opportunities and challenging assignments to help people learn by doing?
  • Can we create a mentoring program, making it part of the mentor’s and mentee’s goals?�

23 of 31

Preparing for the Inevitable: A Succession Readiness Checklist�

When the following conditions are in place, a nonprofit can expect a relatively smooth transition to new leadership whenever it might occur. Nonprofits should determine which elements are lacking in its current operations and then create a succession capacity building plan that prescribes activities and timelines for filling the gaps. This should help the nonprofit be ready for leadership transitions, foreseen or unforeseen.

​

(Source: Succession Planning for NPOs by Annie E. Casey Foundation)

​

24 of 31

Readiness Checklist (cont’d)

  1. A strategic plan is in place with goals and objectives for the near term (3 years), including objectives for leadership talent development.
  2. The board’s practice of evaluating the executive director annually on general performance and achievement of strategic goals.
  3. The board, based on its annual self-evaluation, is satisfactorily performing its major governance jobs—financial oversight, executive support and oversight, policy development, and strategic planning.
  4. The executive’s direct reports, based on annual evaluations, are judged as solidly skilled for their positions.

​

25 of 31

Readiness Checklist (cont’d)

5. The top management cohort, as a high performing team:

• Has a solid team culture in place. Members support one another and can reach decisions as a group efficiently and harmoniously;

• Shares leadership of the organization with the executive in having significant input to all major agency decisions;

• Can lead the organization in the absence of the executive; and

• Has authority to make and carry out decisions within their respective areas of responsibility.

​

26 of 31

Readiness Checklist cont’d

  1. Another staff person or board member shares important external relationships (major donors, funders, community leaders) maintained by the executive.
  2. A financial reserve is in place with (ideally) a minimum of three months’ operating capital.
  3. Financial systems meet industry standards. Financial reports are up to date and provide the data needed by the board and senior managers responsible for the agency’s financial strength and viability.
  4. Operational manuals exist for key administrative systems and are easily accessible and up to date.
  5. Top program staff have documented their key activities in writing and have identified another staff person who can carry their duties in an emergency.

​

27 of 31

For thought

  • It is an ongoing process where the players will change continuously
  • It is a strategic effort that utilizes inputs from multiple sources
  • The organizational direction may also change, so be flexible
  • Competencies need to be constantly monitored to ensure they are measuring what you want to measure

23

28 of 31

Refining the Program

24

  • Prepare a program action plan
  • Communicate the action plan
  • Conduct Succession Planning meetings at leadership level initially
  • Training on Succession Planning

29 of 31

Online Resources on

Succession Planning

​

Council on Nonprofits�https://www.councilofnonprofits.org/tools-resources/successionplanning-nonprofits

​

Five Steps to Stronger Succession Planning in Non-Profits

http://www.afpnet.org/ResourceCenter/ArticleDetail.cfm?ItemNumber=33951

​

Succession Planning for Non-Profits of All Sizes

http://www.blueavocado.org/content/succession-planningnonprofits-all-sizes

​

Non-Profit Succession Planning

https://cnmsocal.org/wp-content/uploads/2014/06/SUCCESSIONParticipants-Guide-FINAL-REV-for-501c-2014.pdf

​

Nonprofit Leadership Transition and Development Guide by Tom Adams

http://www.transitionguides.com/the-nonprofit-leadership-transitionand-development-guide

​

Non-Profit Executive Succession Planning Toolkit

https://www.kansascityfed.org/publicat/community/Nonprofit-Executive-Succession-Planning-Toolkit.pdf

30 of 31

Online Resources on�Succession Planning�

  • BoardSource – boardsource.org
  • CompassPoint – compasspoint.org/tools-and-resources#ExecutiveTransitions
  • Nonprofit Quarterly – nonprofitquarterly.org
  • Raffa – raffa.com

31 of 31

Sources and Resources

  • Leading with Intent: National Index of Nonprofit Board Practices, BoardSource, 2017.
  • Succession Planning for the Nonprofit Board Chair, Social Venture Partners Boulder County, 2012.
  • Building Leaderful Organizations: Succession Planning for Nonprofits, Tom Wolfred, The Annie E. Casey Foundation, 2008.
  • The Evolution of Executive Transition and Allied Practices: A Call for Service Integration, Tom Adams, Raffa and CompassPoint, 2017.
  • Nonprofit Executive Succession Planning Toolkit, Federal Reserve Bank of Kansas City.
  • Succession Planning for Nonprofits of All Sizes, Jan Masaoka and Tim Wolfred, Board Café, 2009.