Sustaining the Vision: Leader Succession
Keys to Navigating the Changing
Landscape
Introduction of SST Partners
Rebecca DaVee, CPA
Outsourced Accounting/CFO Services
Bill Sims, CPA
Audit – 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
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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
• Key operating
roles
• Sudden and
unprepared loss
• New energy/
talent
• Loss of
relevancy
• Defines
leadership and
how to advance
Emergency Backup Plans
Purpose
1. Define short and long-term unplanned absence
2. Clarify who decides the absence is occurring
3. State who assumes the functions and roles of the executive
during the absence.
Emergency Backup Plan
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Create Role/Function
Determine Staff
Communication Plan
Cross-Training Plan
Finalize/Monitor
Succession Planning Roles
• Board Members
• Executive Director
• Key Staff
Essential Components
Identify 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-assessment
4. Annual evaluation of
staff
5. Develop highperforming team
Strategic Leader Development
(Cont’d)
6. Cultivate relationships
with external stakeholders
7. Financial reserves (6
months operations)
8. Financial management
systems = industry
standards
9. 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