Succession Planning for Nonprofits
Succession Planning: A Key to Nonprofit Stability
Succession planning is vital to maintaining an organization’s stability and safeguarding its future. It provides leadership continuity, reduces operational disruptions, and allows for rational responses during times of both opportunity and crisis. Much like strategic planning, succession planning ensures a smooth transition when needed. However, many nonprofits fail to have a plan ready when the time comes.
Heritage Bank of Commerce (HBC) hosted a discussion with several local nonprofit leaders about the importance of succession planning for key leadership positions and boards. Participants included:
- Dawn Hogh, Executive Director, Cancer CAREpoint
- Michele Lew, CEO, The Health Trust
- Robert Raffo, Board Chair, Center for Excellence in Nonprofits (CEN); Audit and Advisory Partner, Hood & Strong
Insights from Nonprofit Leaders
History and Current State of Succession Planning
Dawn Hogh: Soon after joining Cancer CAREpoint, our executive director began conversations about both emergency and transitional succession planning. We are now starting a new process to formalize these plans for future scenarios.
Michele Lew: Succession planning requires collaboration between the executive director and the board. At The Health Trust, we ensure that succession planning is a regular agenda item at board meetings to keep the plan active and reviewed.
Robert Raffo: CEN recently implemented a succession plan during a CEO transition. The plan, initially designed for emergencies, successfully supported a permanent transition, with well-prepared directors stepping into leadership roles.
Developing Leadership from Within
Dawn: Board and key staff succession planning is crucial. We integrate this into performance reviews to align organizational goals with individual development, ensuring a pool of ready candidates for key roles.
Michele: We focus on professional development for staff at The Health Trust, including budget training for managers and cross-department collaboration to prepare them for leadership roles.
Successful Transition Processes
Robert: CEN’s recent CEO transition was seamless due to a clear plan. The outgoing CEO worked closely with the successor during the transition, ensuring continuity. The transition committee meticulously prepared a timeline and job description aligned with future business goals.
Cautionary Tales
Dawn: A lack of emergency succession planning in one organization caused significant disruptions. Clear interim plans and communication are essential to maintaining productivity during leadership changes.
Michele: Missteps in internal communication during my previous transition caused unnecessary shock among staff. Proper planning for internal announcements is crucial.
Overcoming Barriers to Succession Planning
Michele: Boards often hesitate to discuss succession planning due to the misconception that a specific successor must be identified. Breaking the process into manageable steps helps overcome this barrier.
Dawn: Simplifying the process into smaller, actionable steps makes it less intimidating for organizations to develop a comprehensive succession plan.
Resources for Nonprofit Leadership
Contact Information
Heritage Bank of Commerce offers assistance with succession planning and other nonprofit needs. Contact us at NonprofitServices@herbank.com.
Learn more at: heritagebankofcommerce.bank
