Does Your Organization Need a Succession Plan?
By Imogen Davis, Consultant
It’s projected that 75 percent of nonprofit leadership will be retiring within the next five to ten years, representing a huge transformation in leadership. While you might think of succession plans as only being for CEOs of large corporations or perhaps larger nonprofits, they can become a critical tool in transitions, even for smaller organizations. Certainly, sudden departures of any kind can throw the organization into turmoil, especially if this scenario has not been thought about under calmer circumstances.
Additionally, the process of developing a succession plan can be a useful tool in thinking through critical links within your organization. The proverbial question, “What would happen if I’m hit by a bus tomorrow?” even if you’re not the executive director or CEO, can drive an insightful conversation about how institutional knowledge is managed, shared, stored and transferred.
Broadly speaking, succession planning can be described as an ongoing process that ensures a continuity of leadership for all critical positions, as well as a system that ensures that the right people, with the right skills, are in the right place at the right time. This means monitoring and developing internal talent to assure that employees have the knowledge, skills, motivations and abilities necessary to succeed in future leadership roles.
The most recent statistics indicate that only about one-third of organizational boards have a succession plan in place. Ideally, the succession planning process is driven by the board, in collaboration with current leadership. This can be led by a personnel committee if one exists, and the plan, once completed, will cover planned as well as emergency departure processes and internal leadership development. It will identify the preferred options for interim leadership, whether the organization will employ a search firm, and if applicable, describe the deployment of current upper level leaders to fulfill executive duties. The plan can also specify the timing on how it will unfold, and whether or not an organizational assessment will be part of the transition: such transitions present opportunities as well as risks, as they can provide the board a chance to articulate priorities for leadership moving forward, and an understanding of strengths and weaknesses that can be developed and/or addressed.
While still not a majority practice, preparing organizations for leadership transitions is becoming more standard throughout the nonprofit sector. Often these are plans put in place in the midst of an emergency, creating upheaval and stress. The services offered by coaches, consultants, and other advisors can help prepare an organization for a healthy transition into the next stage. We consider both emergency succession planning and advising services good practice, but leaders should not wait for a crisis or pressing occasion to address issues facing the organization’s future.