Ready for Leadership Change?

1. Ready for Leadership Change?

2. At a time when leadership change happens more frequently than in the past — and has wide-spread implications for a school — are we planning ahead and looking inward to develop and keep strong leaders?

3. The Inevitability of Leadership Change “A nonprofit undergoing a leadership transition is at a very vulnerable point in its lifecycle. All leaders leave at some point, sometimes unexpectedly, so all organizations need to prepare for this eventuality.” Jennifer Chandler, “Why Is Succession Planning Taboo?” National Council of Nonprofits blog

4. The Nonprofit Picture Lack of opportunities and mentoring/support often to blame for staff turnover “[C]orporate CEOs dedicate 30 to 50 percent of their time and focus on cultivating talent within their organizations. Nonprofit CEOs who don’t follow suit are missing a key lever for boosting their impact.” Demand for nonprofit leaders today still high In a 2006 study, Bridgespan estimated that by 2016 the nonprofit sector would need 500,000+ new senior managers as the sector expanded and Baby Boomers retired. Although actual retirement numbers were lower than predicted, leadership positions keep coming open. Much of this is due to senior staff leaving organizations. LibbieLandles-Cobb, Kirk Kramer, and Katie Smith Milway (The Bridgespan Group), “The Nonprofit Leadership Development Deficit,” Stanford Social Innovation Review

5. The Nonprofit Picture Nonprofits half as likely to have a succession plan “In a 2011 Society for Human Resource Management survey, only 22% of all non-profit respondents noted they had a succession plan, compared to 44% of publically-owned, for-profit organizations.” Emily Douglas, “Succession Planning 101,” Education Week blog … and about half as likely to promote from within “[N]onprofit organizations promote from within far less than for-profit enterprises (typically sourcing 30-40% of senior leaders through internal promotion versus 60-65% in the for-profit sector).” The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge”

6. The Nonprofit Picture Key Elements of Costs of Unwanted Executive Turnover LibbieLandles-Cobb, Kirk Kramer, and Katie Smith Milway (The Bridgespan Group), “The Nonprofit Leadership Development Deficit,” Stanford Social Innovation Review

7. The Nonprofit Picture Will leadership development investments walk out the door? “Recent for-profit research… suggests just the opposite. CEB, a provider of corporate best practices research and analysis, found that staff members who feel their organizations are supporting their growth stay longer than those who don’t.” LibbieLandles-Cobb, Kirk Kramer, and Katie Smith Milway (The Bridgespan Group), “The Nonprofit Leadership Development Deficit,” Stanford Social Innovation Review “Emerging leaders still may ultimately leave the organization to progress in their careers, but if an organization is able to delay that exit by months or years by offering greater development opportunities, they’ll reap the benefits in the meantime.”

8. The Higher Ed Picture Lack of interest in pursuing presidency According to a 2009 ACE survey, fewer than a third of all sitting chief academic officers at colleges and universities at that time aspired to presidencies or chancellorships. American Council on Education, The CAO Census: A National Profile of the Chief Academic Officer (2009) Cultural resistance to change the way searches have always been done “Succession planning strikes many people [in higher education] as slotting and favoritism. We just have a huge commitment to the competitive process for positions,” says Allison Vaillancourt, vice president for HR and institutional effectiveness at the University of Arizona. Carol Patton, “Higher ed succession planning: Who will follow the leader?” University Business

9. The Independent School Picture High number of head retirements predicted In a 2009 NAIS survey, more than two-thirds of responding heads reported that they planned to retire or transition out of independent schools by 2019. Only 22 percent of all responding administrators reported interest in pursuing headship.Donna Orem, “The Leadership Outlook,” 2014-2015NAIS Trendbook Few heads being hired from within Marc Levinson, “Advanced Placement: Evaluating the Head of School Transition,” Independent School magazine (Spring 2015)

10. Succession Planning: Looking Ahead

11. Succession Planning … Encompasses all positions of high strategic importance “Ideally, [succession planning] should encompass any positions that hold a high strategic importance or require a very specific set of skills, knowledge, abilities, and other characteristics important to the organization.” Emily Douglas, “Succession Planning 101,” Education Week blog Is a proactive and systematic investment “[Succession planning is] not a periodic event triggered by an executive’s departure. Instead, it is a proactive and systematic investment in building a pipeline of leaders within an organization, so that when transitions are necessary, leaders at all levels are ready to act.” The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge”

12. Succession Planning … Is aligned with the future needs of an organization “One essential step in building a leadership pipeline is figuring out what sort of capacity(e.g., roles, skills, and numbers) an organization will need in the future to achieve its strategic goals.” The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge” Involves recruitment, development, & preparation for advancement “Through the succession planning process, an organization recruits superior employees, develops their knowledge, skills, and abilities, and prepares them for advancement or promotion into ever more challenging roles...The output of succession planning informs leadership and professional development plans, staffing and promotion decisions, and external recruiting plans.”Achieve Mission, “Topic Overview: Succession Management”

13. Value of Succession Planning Can help address generational shifts “… Gen X and Gen Y leaders… may seek to restructure the executive role, creating collaborative or shared leadership models and job expectations that allow for a healthier balance between work and life. Succession planning in Boomer-led agencies can lay the groundwork for making these kinds of organizational changes.” Risk management + “At the most basic level, succession planning is a sound risk management practice. It is critical to ensuring the viability of an [organization] in the event of a key manager’s unplanned absence… But beyond that, an organization that gives ongoing attention to talent-focused succession planning can be more nimble and flexible, having the skills and capacity at hand to meet whatever challenges may arise.” Tim Wolfred, “Building Leaderful Organizations,” The Annie E. Casey Foundation

14. Value of Succession Planning Three benefits “The first benefit is that succession planning helps you ‘unpack’ the executive and other top positions in such a way as to make them more sustainable…. A second benefit of succession planning is the unleashing of new energy and talent…. A third benefit of succession planning is that the process tells all employees what leadership is and how to advance in the organization.” Tom Adams, Sustaining Great Leadership: Succession Planning for Nonprofits, First Nonprofit Foundation

15. Timing for Succession Planning Annual review of plans “At least once annually, the CEO and [HR director] should lead a discussion about the forward-looking leadership requirements for the company and specific executive roles based on the strategic direction, update the CEO criteria as appropriate in response to changing circumstances, and conduct a deep dive to evaluate talent against that framework.” When should succession planning begin? “Starting early and creating a normal cadence around executive development and long-term C-suite succession planning increase the chances that multiple strong internal candidates will be identified (or recruited), assessed, given specific development opportunities and ready when a transition is near.”  SpencerStuart, “CEO Succession Planning: The CEO’s Critical Role”

16. Board and Head Role in Succession Planning Board’s role “Boards need to look carefully at the concept of succession planning and build this into their thinking and expectations for the head of school. It is clear that in the corporate environment CEOs are expected to groom people to succeed them. Even in our smallest schools this is possible.” . Marc Levinson, “Advanced Placement: Evaluating the Head of School Transition,” Independent School magazine (Spring 2015) Head’s role “The CEO is a very important player in CEO succession planning, both in an of-counsel role to the board or the committee responsible for the process and in overseeing the company’s overall management succession.” SpencerStuart, “CEO Succession Planning: The CEO’s Critical Role”

17. Overcoming Resistance Among Staff to Succession Planning Implement a non-threatening annual process “[At the request of the board, I asked each of my direct reports to write a succession plan for their] ‘winning the lottery scenario’ rather than ‘the bus hitting you’… Once we all got comfortable with this normal, non-threatening procedure, it became a helpful tool in planning our school’s future… [and a best practice exercise].” Susan Groesbeck, “Succession Planning: A Must,” National Association of Independent Schools “A [succession] plan should be ready at all times, even when things are going very well.”

18. Approaches to Succession Planning . Three approaches (not mutually exclusive) for different situations/stages of an organizational life cycle 1. Strategic leader development is an ongoing practice based on defining an [organization’s] strategic vision, identifying the leadership and managerial skills necessary to carry out that vision, and recruiting and maintaining talented individuals who have or who can develop those skills. 2. Emergency succession (or leadership) planning ensures that key leadership and administrative functions… can continue without disruption in the event of an unplanned, temporary absence of an administrator. Tim Wolfred, “Building Leaderful Organizations,” The Annie E. Casey Foundation

19. Approaches to Succession Planning . Three approaches (not mutually exclusive) for different situations/stages of an organizational life cycle 3. Departure-defined succession planning is recommended when a long-term leader has announced his or her departure date two or more years in advance. It includes identifying the agency’s goals going forward; determining which tools a successor will need to have in his or her skill set to achieve those goals; and devoting significant attention to building the capacity of the board, managers, and systems to sustain funding and programs beyond the current executive’s tenure. Tim Wolfred, “Building Leaderful Organizations,” The Annie E. Casey Foundation

20. Succession Planning Roadmap • Plan • Decide how deep you want to go: Just the C-suite? Management? Everyone? • Determine whether you will focus on high-potential workers or extend succession planning to a wider pool of employees. • Define the skills and experience needed for key roles: Think about where the company is going and what leadership skills you’ll need to get there. • Evaluate whether your HR software offers succession planning tools and whether you want to use them. • Do • Assess employees’ current performance and identify any skill or experience gaps for their future roles. • Ask employees about their career goals so you are certain they want the role you are grooming them for. Workforce.com, “Succession Planning Roadmap”

21. Succession Planning Roadmap • Do (continued) • Create training, mentoring, and leadership opportunities for top talent to close the gaps. • Work with the CEO and the board to create a list of two to three candidates for every top position. • Review • Review assessments of top talent with the board every nine to 15 months, and again whenever there is a major change in leadership. • Identify development roadblocks — such as lack of mentors or limited on-the-job leadership opportunities — and look for solutions. • Review succession plans during annual strategic planning, to ensure development goals align with strategic goals. • Be willing to adapt the succession planning approach if your goals change or if individual employees aren’t showing the leadership development you need. Workforce.com, “Succession Planning Roadmap”

22. Succession Planning Mistakes • Using the past to plan for the futureYou need to choose leaders whose skills align with future goals. To avoid this trap, make sure succession plans align with the long-term strategic vision of the organization. • Stopping at the CEOThe best succession planning programs at least address the entire leadership team as well as senior management. • Not getting the board onboardThe best programs incorporate the board of directors in planning and keep them up-to-date on development efforts to ensure everyone is on the same page. Workforce.com, “Succession Planning Roadmap”

23. Succession Planning Mistakes • Allowing human capital roadblocks to take rootWhen talented people top out in leadership roles, they can prevent the next generation from moving up. The best companies avoid these roadblocks by creating new positions, collaboration opportunities and stretch assignments so future leaders have room to grow. • Succession isn’t part of the cultureSuccession planning fails when there is no incentive for executives to mentor their people…. Best-of-breed companies encourage executives to identify and develop talented young leaders and align their compensation with these efforts. • The wrong people making decisions…The best companies involve HR and the board when making succession planning decisions. Workforce.com, “Succession Planning Roadmap”

24. Leadership Development: Looking Within

25. Leadership Development: A Key Aspect of Succession Planning Most promising pool of talent “Succession planning is the No. 1 organizational concern of US nonprofits, but they are failing to develop their most promising pool of talent: homegrown leaders.” The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge” Primary method to sustain and perpetuate school’s mission “Independent schools have an opportunity to grow talent from within and should view talent development for administrators and teachers as one of the primary methods to sustain and perpetuate the mission of the school.” Stephen Robinson, SAIS, “Growing Administrative Talent: A Case for an Increase in Internal Successions to Head of School”

26. Leadership Development Basics Leadership development plans build on and link to HR processes. Job descriptions/assignments with clear roles and responsibilities Standardized recruiting tools (interview guides and assessments) Basic training for common roles and supervisors Performance evaluation process ― informal feedback, formal evaluation, individualized development planning Goal setting Compensation, recognition, promotions The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge”

27. Leadership Development Roadmap “Engaging senior leaders… [The chief executive] signals the importance of leadership development, sets expectations for her team, and puts the process in motion by first developing the people who report directly to her and then asking them to do the same for their teams… Mapping out a vision of the future leadership teamOnly with [an understanding of the future leadership capabilities required to achieve the organization’s strategy] can senior leaders assess the potential of future leaders to meet emerging needs, and put in place the plans to develop required competencies in high-potential leadership candidates…” The Bridgespan Group, Nonprofit Leadership Development: What’s Your ‘Plan A’ for Growing Future Leaders? (2012)

28. Leadership Development Roadmap “Developing future leadersWhile many nonprofits offer their staff members ‘stretch’opportunities, the most successful groups are systematic about doing so, consciously building the right skills in the right people over time. Seeking new talent to fill gaps … Hiring new leaders who fit your needs is just the first step. Making sure that the first few months on the job are carefully planned so new leaders can succeed is crucial… Monitoring & improving the process of developing leaders Successful nonprofits gather data to ensure that they are doing what they set out to do, making progress toward their Plan A goals, and continuously adjusting their approaches to incorporate lessons they learn…” The Bridgespan Group, Nonprofit Leadership Development: What’s Your ‘Plan A’ for Growing Future Leaders? (2012)

29. Eric Krell, “Weighing Internal vs. External Hires,” Society of Human Resource Management Leadership Development: The Hiring Question To hire externally or internally: Scenarios to consider

30. Nurturing and Developing Future Leaders The 70-20-10 rule “A research-based, time-tested guideline for developing managers says that you need to have three types of experience, using a 70-20-10 ratio.” 70% challenging assignments 20% developmental relationships 10%coursework and training Center for Creative Leadership, “The 70-20-10 Rule”

31. Nurturing and Developing Future Leaders Learning by doing in small environments “Small and typically flatter organizations provide fewer opportunities for promotions.... However, our research shows that skill development can compensate for lack of upward trajectory. Stretch opportunities abound in smaller organizations where a large number of responsibilities are divided among a small number of people...” “Building the most effective leaders possible is particularly critical for smaller organizations, where any weak link can weaken the entire chain.” LibbieLandles-Cobb, Kirk Kramer, and Katie Smith Milway (The Bridgespan Group), “The Nonprofit Leadership Development Deficit,” Stanford Social Innovation Review

32. Nurturing and Developing Future Leaders Learning by doing: One school’s example At St. Andrew’s Episcopal School, academic department chairs serve three- to six-year terms. This allows the head of school to distribute leadership experience, test out potential senior administrators, and encourage more teachers to see themselves as school leaders without having to leave the classroom or the school. “Internal leadership development and institutional commitment to professional growth create a positive school culture, and draw and keep the best educators.” NAIS interview with Robert Kosasky, head of St. Andrew’s Episcopal School (Maryland) An openness in the hiring process and an institutional preference for internal advancement at St. Andrew’s means that individuals are truly encouraged to apply for new/open positions. This leads to ongoing conversations and opens lines of communication about individuals’ interests and ambitions.

33. Strategic Questions About Succession Planning and Leadership Development What kind of succession plan(s) does our school need right now, based on where we are in our organizational life cycle? What are our needs for leadership five and 10 years out? Are we consciously developing skills in our emerging leaders that align with those future needs? When we hire (including the head), do our processes, and does our culture, truly encourage internal candidates? Is our onboarding process as strong as it could be to ensure successful transitions and long-term relationships with our school? Do our assessment practices make individuals aware of their strengths and how to maximize them in their jobs? Are there leadership career paths within our school? Do we talk about them regularly? Could we offer more “stretch” opportunities and challenging assignments to help people learn by doing? Can we create a mentoring program, making it part of the mentor’s and mentee’s goals?

34. Resources • Jennifer Chandler, “Why Is Succession Planning Taboo?” National Council of Nonprofits blog • LibbieLandles-Cobb, Kirk Kramer, and Katie Smith Milway (The Bridgespan Group), “The Nonprofit Leadership Development Deficit,” Stanford Social Innovation Review • Emily Douglas, “Succession Planning 101,” Education Week blog • The Bridgespan Group, “Building Leadership Capacity: Reframing the Succession Challenge” • American Council on Education, The CAO Census: A National Profile of the Chief Academic Officer • Carol Patton, “Higher ed succession planning: Who will follow the leader?” University Business • Donna Orem, “Leadership Outlook,” 2014-2015NAIS Trendbook • Marc Levinson, “Advanced Placement: Evaluating the Head of School Transition,” Independent School magazine (Spring 2015) • Achieve Mission, “Topic Overview: Succession Management” • Tim Wolfred, “Building Leaderful Organizations,” The Annie E. Casey Foundation • Tom Adams, Sustaining Great Leadership: Succession Planning for Nonprofits, First Nonprofit Foundation • Stephen Robinson, SAIS, “Growing Administrative Talent: A Case for an Increase in Internal Successions to Head of School” • SpencerStuart, “CEO Succession Planning: The CEO’s Critical Role” • Susan Groesbeck, “Succession Planning: A Must,” NAIS • Workforce.com, “Succession Planning Roadmap” • The Bridgespan Group, Nonprofit Leadership Development: What’s Your ‘Plan A’ for Growing Future Leaders (2012) • Eric Krell, “Weighing Internal vs. External Hires,” Society of Human Resource Management • Center for Creative Leadership, “The 70-20-10 Rule” • NAIS interview with Robert Kosasky, head of St. Andrew’s Episcopal School (Maryland)