Succession Planning

Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company. Through your succession planning process, you recruit superior employees, develop their knowledge, skills, and abilities, and prepare them for advancement or promotion into ever more challenging roles. Actively pursuing succession planning ensures that employees are constantly developed to fill each needed role. As your organization expands, loses key employees, provides promotional opportunities, and increases sales, your succession planning guarantees that you have employees on hand ready and waiting to fill new roles. Effective, proactive succession planning leaves your organization well prepared for expansion, the loss of a key employee, filling a new, needed ob, employee promotions, and organizational redesign for opportunities. Successful succession planning builds bench strength. Develop Employees for Succession Planning To develop the employees you need for your succession plan, you use such practices as lateral moves, assignment to special pro ects, team leadership roles, and both internal and external training and development opportunities. Through your succession planning process, you also retain superior employees because they appreciate the time, attention, and development that you are investing in them. Employees are motivated and engaged when they can see a career path for their continued growth and development. To effectively do succession planning in your organization, you must identify the organization!s long term goals. "ou must hire superior staff. "ou need to identify and understand the developmental needs of your employees. "ou must ensure that all key employees understand their career paths and the roles they are being developed to fill. "ou need to focus resources on key employee retention. "ou need to be aware of employment trends in your area to know the roles you will have a difficult time filling externally.

Why is succession planning important? The benefits of good succession planning include# A means of ensuring the organization is prepared with a plan to support service continuity when the executive director, senior managers or key people leave

A continuing supply of $ualified, motivated people %or a process to identify them&, who are prepared to take over when current senior staff and other key employees leave the organization An alignment between your organization's vision and your human resources that demonstrates an understanding of the need to have appropriate staffing to achieve strategic plans A commitment to developing career paths for employees which will facilitate your organization's ability to recruit and retain top(performing employees and volunteers An external reputation as an employer that invests in its people and provides opportunities and support for advancement A message to your employees that they are valuable The absence of a succession plan can undermine an organization's effectiveness and its sustainability. )ithout a succession planning process, an organization may not have a means of ensuring that the programs and services that are crucial to its operation are sustained beyond the tenure of the individual currently responsible for them. A succession plan ensures that there are $ualified and motivated employees %or a means of recruiting them& who are able to take over when the executive director or other key people leave an organization. *t also demonstrates to stakeholders such as clients, funders, employees and volunteers that the organization is committed to and able to provide excellent programs and services at all times, including during times of transition.

Who is responsible for succession planning? +oth the board and the executive director have pivotal roles to play in succession planning. The board is responsible for succession planning for the executive director position. The board hires the executive director to ensure it has a skilled manager at the helm to implement the organization's mission and vision. *t is therefore very important for boards to spend some time reflecting on what they would do if, or when, the executive director leaves. All too often, boards find that they are unprepared for such an occurrence and are left scrambling to $uickly replace that person. There are many examples of an executive director leaving only to have the organization fall into disarray# funders withdraw resources, and other key staff members leave due to lack of effective leadership. Even when provided with ade$uate notice, boards sometimes find themselves in the position of having to scramble to find an interim solution. The executive director is responsible for ensuring a succession plan is in place for other key positions in the organization. These will likely be developed with help from the management team with input from implicated employees.

To ensure the process is fair and the succession plan considers different perspectives, ask for input from all key stakeholders.

What are some challenges to effective succession planning? Some challenges to succession planning are# Size of the organization# some nonprofits have so few positions that they may not have the ability to offer opportunities for advancement, employees with the potential and the desire to advance their careers may move to larger organizations as a result Lack of financial resources# employees may leave for better salaries and benefits offered in other workplaces The nature of funding# as more and more organizations depend on pro ect funding as opposed to core funding, there are fewer core staff members available to take up positions in the organizations -ro ect staff come and go and may not be seen to be part of the talent pool available to organizations *n some cases, senior leaders are staying on in their positions, despite the fact that the skills needed for the ob may have changed or they are no longer making a meaningful and productive contribution to the organization *ndiscriminate inclusion of employees in the succession plan including those who are disinterested, unmotivated or lack capacity to advance. *nade$uate training and development resulting in an employee who is not prepared for a promotion A plan that does not promote people in a timely fashion, leading potential successors to leave the organization to seek new opportunities -oor communication resulting in confusion and turmoil within the organization as staff speculate about what the succession plan really is -otential candidates for promotion cannot be guaranteed that they will be promoted, a lot depends on timing and need of the organization

Succession planning in small and mid-sized organizations *n many smaller organizations, succession planning may be viewed as a luxury, but it isn't. At the very least, boards of directors have a responsibility to consider and plan for the departure of the executive director, who is often critical to the existence and sustainability of the organization. )hen faced with the loss or impending loss of an executive director, these kinds of $uestions $uickly surface# Should we hire from within or look for an external candidate. /o we have anyone internally who is $ualified. )hether we hire internally or externally, does anyone really know the specifics of what that person was doing. )hat kind of impact will this change have on our capacity to deliver on our mandate and on our relationships with our clients, donors and volunteers. )hat do we tell our stakeholders.

Developing a succession plan for the executive director *n some instances, the board may decide that there needs to be a 0second in command0 who has the capacity to replace the executive director in the future. This means# *dentifying that person in collaboration with the executive director Ensuring that the person is motivated to take on the top ob /eveloping a plan to ensure that the eventual successor gains the re$uisite skills and knowledge to take the ob on Ensuring that the second in command is exposed to a broad range of experiences so that he or she has a wider understanding of the operations of the organization The plan could include a formalized process of mentoring or coaching and training in more specific aspects of the ob. )hen the size of the organization permits, it would be preferable to have more than one person identified as a potential successor to the executive director. *n a small nonprofit, it may not be possible to groom a successor from within the ranks of existing staff. To ensure continuity and stability when an executive director leaves,

employees may be paired to cross(train each other to ensure there are two people on staff who know each ob. The board chair should have a conversation with the executive director on an annual basis regarding his or her career aspirations. )hile the executive director is not re$uired to share any career goals, the conversation can allow for a frank discussion about future plans.

Steps to put in place 1irst and foremost, the board is responsible for drawing up a plan of action and effectively communicating it to the rest of the staff as soon as possible. This is necessary to demonstrate that the board is taking decisive action, to deal with any misinformation that may be generated by a $uick departure and to ensure that all of the employees' $uestions are answered. The board must also communicate its plan of action for replacing the executive director in a timely manner with its funders. 1unders will need to be assured that plans and programs are on target and deliverables will not change. )ith no succession plan or second in command identified, the board may want to name an interim executive director until a replacement is selected. This choice should be made wisely because someone with the right skills and knowledge needs to be chosen. *f a person is asked to take on the executive director responsibilities in addition to his or her ob, there should be an ad ustment in that employee's compensation to reflect the additional responsibilities and work load. Another option is to ask a $ualified group of two or three employees to co(manage the organization by sharing the executive director responsibilities. *n order for this approach to be effective, it re$uires a clear understanding of the various aspects of the executive director 's position so that tasks may be given to those with ability to take them on. *t also re$uires ongoing communication and coordination between the employees that are part of the co(management team. *f there are no employees able or willing to take on the task on an interim basis, a board member may be asked to temporarily assume these functions. 2f course, the board member will have to resign from the board if he or she takes on a paid position with the organization.

Ideas for recruiting for other ey positions

The following ideas can be incorporated into your succession plan for key positions in the organization other than the executive director. Look to other organizations for exceptional employees 3ew employees are often found in other nonprofits. )hile some may view this as poaching, the reality is that employees who aren't being challenged or aren't happy will leave the organization for a better opportunity. *n some cases, employees have been known to leave for a position in another organization but return years later with new experiences and skills. 4elping to keep exceptional employees in the sector by allowing them to move around to develop their careers should be seen not as a loss for individual organizations, but as a gain for the capacity of the sector. An innovative approach would be to develop a pool of candidates with other organizations and develop a rotational program to allow key employees to move from one organization to the next. This approach would ensure key individuals remain challenged and motivated while a group of nonprofits all benefit from the expertise. Look to your organization's volunteers There may be board members or volunteers in other positions within the organization with the talent, knowledge and experience who can effectively make the transition to a paid position. 5ook to pro ect staff %either current or those who did pro ect work for your organization in the past& As a result of a shift from core funding to pro ect(based funding, there are more and more pro ect staff who move from organization to organization with short contracts. These people will often have gained information about your organization's operations and could move seamlessly into a core staff position. Look to consultants (either those have worked with your organization or other similar organizations) )hile most consultants may prefer to stay in their line of business, there are those who would like to become staff members, if asked. *n some cases, consultants worked for a nonprofit before becoming a consultant and are interested in moving back into the sector to work. 6nowledge transfer is a key component of the succession plan. Ensure that core organizational processes are well documented. )henever possible, ensure an overlap of time so the exiting employee can help orient and train the new employee.

Succession planning in larger organizations

The steps outlined below provide a roadmap for larger organizations interested in developing succession plans. /ifferent organizations will implement these activities differently. )hile there is no right or wrong way to develop a succession plan, the following provides important components that need to be considered.

!apacity and needs assessment Step 1 *dentify key positions for your organization. These include the executive director, senior management and other staff members who would, for their specialized skills or level of experience, be hard to replace. Ask yourself which positions would need to be filled almost immediately to ensure your organization continues to function effectively. Step 7eview and list your current and emerging needs. This will involve examining your strategic and operational plans to clearly articulate priorities. Step ! -repare a chart that identifies the key positions and individuals in the organization. The positions might include those listed in step 8 and9or others that are pertinent to your organization, such as volunteers. Step " *dentify and list the gaps by asking $uestions such as# )hich individuals are slated to or likely to leave %through retirement, pro ect completion, etc.& and when. )hich new positions will be re$uired to support the strategic plan. )hich positions have become or will become obsolete %for example, those related to a program that has been terminated&. )hat skills and knowledge will need to be developed %for example, to support a new program&.

Step #

Evaluate9assess all staff members with the goal of identifying those who have the skills and knowledge or the potential along with the desire to be promoted to existing and new positions. The evaluation can be formal or informal and can include, but is not limited to, performance reviews, :;< degree assessments and informal conversations with the individuals under consideration. The executive director may be aware that an employee has aspirations to and the capacity to move up. This may be an opportunity to recognize this goal and support it. Take this opportunity to give younger workers a chance. =any young people enthusiastically enter the sector and then, finding few opportunities for advancement, leave. "ounger workers can remain engaged if you help to match their interests to opportunities provided through effective succession planning.

Develop and implement the plan +ased on the evaluation and on the re$uirements of your strategic plan, identify the key person or people you will want to develop and nurture for the future, the position you would like to groom them for, and the timeframe re$uired to prepare them. >onsider different ways of developing your employees like# self(development, books9 ournals, mentor programs, special pro ect work. *dentify the career paths that the selected individuals should be following. >ustomize the path to fit the individual's abilities and talents by developing an action plan. The plan must be dynamic ( able to be changed as the individual's and the organization's needs change. *t must also consider the specific needs, learning styles and personalities of the individuals involved in order to be effective. 1ormalize education, training, coaching, mentoring and assessment activities. The mix of activities included within the action plan should be linked to timelines and specific outcomes. *f possible, move people into different areas for experience and training before they are needed in critical positions. 4ave individuals ob(shadow for an agreed upon period of time to give the successor a real sense of the responsibilities and to allow the organization the chance to determine whether the individual really is suited for the new position.

"onitor and manage the plan

As people leave and new people assume their responsibilities, the plan will have to be updated to identify the next person to be groomed for promotion and the re$uirements of his or her individual action plan. 1or organizations that engage in an annual %or regular& strategic planning process, the succession plan should be included in that discussion. +e prepared to address issues such as concerns of staff who have not been selected for career advancement. Ensure alternative paths are identified to allow all employees who are interested in career enhancement to be given some type of professional development opportunity. -rofessional development can include such wide ranging activities as formal education and training, workshops and seminars as well as less formal learning opportunities such as the chance to represent the organization at a consultation. 7ecognize that no matter how well you plan, something can still happen which the succession plan doesn't address. 1or example, you may have dutifully trained a 0second0 only to have that person leave. Even though there may be no one able to fill the breach immediately, the succession plan will ensure that there is a process for you to follow in filling the position.

#ips for successful succession planning Secure senior management and board support for a succession planning process. This gives employees and staff an understanding of how important succession planning is to the organization. 7eview and update your succession plan regularly. This ensures you reassess your hiring needs and determine where the employees identified in the succession plan are in their development. /evelop procedure manuals for essential tasks carried out by key positions. *nclude step(by(step guidelines. Ade$uate time should be provided to prepare successors. The earlier they are identified, the easier it is on the individual to be advanced and on other employees within your organization who will know whether certain options are available to them. ?nderstand that your succession plan will be a uni$ue reflection of your organization. Succession plans are as different from each other as the organizations for which they are developed.

!areer planning and succession planning

>areer planning is the process of selecting career goals and path to reach the goals. *t is basically a planning process for future purpose. *t can be done by all level of employee and it is an individual responsibility. 47 %4uman 7esource& encourages career planning of employee through career education counseling. Succession planning is generally done for top level and middle level managers. As for example, many people oin in organization, all their aim are to become manager or >E2, but due to several reasons like retirement, resignation, death, people become unable to become manager, thus preparing some people for future manager is succession planning. !areer Planning >areer planning is for the entire employee from lower level to upper level. >areer planning is a matching process between individual aspiration and organizational opportunities Time frame for career planning has no limit. And it is guaranteed the development of career in every course of stages is needed. *n career planning, plans and goals are developed for the entire employee. *t considers individual employee. Time frame is unlimited. Succession Planning Succession planning is concerned for the higher(level executives only. Succession planning is a detail career path multiple back up group of manager in reserve to fill any position opening that might occur. Time frame is of 8@(:; months. *t is not guarantee.

*n succession planning, plans and goals are set for specific selected employee that succeeds for manager in future. *t considers employee and the position. Time frame is limited.

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>areer =anagement is a very important part of the long term development of our staff. Together with Succession -lanning they help us develop our ?niversity through our people.
What Is #he Difference ,et-een !areer "anagement $nd Succession Planning?

The graphic below shows that Succession -lanning is a process that allows the ?niversity to identify and map staff talent against current and future organisational capability needs. >areer =anagement is a process that allows staff to identify future career moves and the skills and knowledge re$uired to prepare themselves to gain those roles.

.o- Does Succession Planning $nd !areer Planning $ffect "y Development? Staff development should be concentrated in areas that facilitate staff developing their careers to achieve their personal goals and to assist the ?niversity in meeting current and future capability needs. The graphic below shows how development should be concentrated in the areas that overlap.

http:// www.canberra.edu.au/hr/organisational-development/career-mgt-and-succession-planning