Fairmount recently convened a group of nonprofit leaders to hear more about what’s on their minds, and the issue of succession plans was front and center. Everyone around the table agreed they should have one, yet no one did. Leaders express concern about bringing succession up with their Boards because they worry it indicates they are thinking about leaving. Board members don’t want to bring it up because they don’t want the leader to think they are being replaced.
Succession plans are an important strategic tool to maintain stability during a planned or unplanned leadership transition. In an era when compounding stress on nonprofit leadership risks accelerating turnover, now is the time for all organizations to create a plan. Our experience in leading executive search has demonstrated that without a documented roadmap for succession, leadership transition can disrupt operations, create anxiety, and delay goals.
Consider this guidance if you need to kickstart the discussion across your organization’s leadership:
What is a Succession Plan?
A plan is a strategic tool to maintain stability and sustainability during a leadership transition. It asks and answers key questions about how to proceed with a transition, key roles and responsibilities of the staff and board, and the process to quickly launch a search. Once developed, a plan can be reviewed annually.
Why do we need a Plan?
To help your organization navigate a planned or unplanned leadership transition smoothly while maintaining programs, services, operations, and funding. It ensures the staff and board can act decisively and maintain confidence in the organization. Developing a plan provides an opportunity to evaluate the team’s skills, ensuring that everyone is cross-trained and someone is always apprised of the CEO’s work.
Plan Components
A well-developed plan will address both planned and unplanned transitions. Each section should articulate a clear chain of command and the roles and responsibilities of the staff, the board chair, and board members.
- Communication Strategy: Develop a list of key stakeholders who need to be informed, when, and by whom.
- Interim CEO: Consider an interim or fractional CEO to cover critical tasks, and who the board will work with to identify them.
- Search Committee: Describe the optimal composition of the committee and its responsibilities.
- Staff Role: While the decision to hire the next leader is the responsibility of the board, the staff has valuable insight into what is needed in the next leader.
- Search Firm: Include a draft RFP and identify 2-3 firms to lead a new CEO search.
- Job Profile: Identify the skills and experience needed to lead in the future, in the context of organizational challenges and opportunities.
- Diversity Guidelines: Articulate how the organization will ensure an equitable search, what diversity means within the culture, and how the team will support a new leader who may have a different background than past CEOs.
- Orientation and Onboarding: Create an action plan so that the new leader has the information and connections they need to succeed.
Does your team desire a plan, or need a refresh, but isn’t sure where to start and doesn’t have time to invest? Fairmount can help through our full suite of leadership services including succession planning, search, staff development, and culture change. Reach out to lblair@fairmountinc.com to explore current and future leadership needs, and how we can address them.