It may come as a surprise that more than 75 percent of nonprofits in Canada do not have either emergency or planned departure succession plans for the position of executive director or CEO. This month’s newsletter on emergency succession planning contains material excerpted from my new book “Following the Leader”.
Tip #1 Create a board policy on emergency succession planning (ESP).
The policy should require the current executive director to develop and keep current, a comprehensive ESP. The plan (and updates) should be provided to the board for information and discussion. An emergency succession plan is NOT complete if all it does is name the person who will act in the case of the unexpected absence of the executive director!
Tip #2 Involve the management team and board chairperson.
While it falls to the current executive director to develop the ESP, it is wise to involve key stakeholders in the planning process. This strengthens the plan, creates awareness of and support for the plan among the agency’s leadership team.
Tip #3 Consider distributing executive duties among several managers.
It is often not realistic to expect one manager to carry all of the responsibilities of the executive director for an extended period. There are advantages in two or more managers each taking on duties that fit their skill sets and interests.
Tip #4 Develop a training plan for all acting managers and their back-ups.
Given that one or more mangers will accept the responsibilities of acting executive, there must be a plan for cross-training employees who assume their duties. The goal is to prepare competent and confident people to fulfill acting roles as deep as possible within the organization.
Tip #5 Define the authority of acting executives.
Acting executive directors may be given the full scope of authority of the permanent executive director. However, the board may also determine that some limits be placed on this authority. Establish the range of authority as part of the ESP to ensure the acting executive(s) is clear on when board approval of decisions is required.
Tip #6 Define the term limit of the acting executive(s).
The length of absence of the permanent executive director may or may not be known. It is a good practice for a maximum term of the acting executive to be set. Normally the term is up to 3 months if necessary. If this term expires, the ESP should specify the process to extend the contract, appoint a new acting executive or for the board to consider a search and selection process for a long- term interim
executive director.
Tip #7 Describe the communication, reporting and support links between acting executive(s) and the board.
Acting executive directors may need different frequency of communication and support from the board chairperson and from the board as a whole. Working this out in advance prevents confusion and miscommunication during the often stressful time of an emergency transition from permanent and acting executive directors.
Tip #8 Develop a written agreement for the acting executive(s).
The agreement should specify the term of the acting appointments, changes to compensation during the term, limits of authority (if any), reporting requirements, communication expectations as well as extension and termination provisions.
Tip #9 Schedule an annual review and update of the ESP.
The ESP should be reviewed and updated annually by the current executive director,
management team and board chairperson (if desired). Changes to the plan should be forwarded to the board as a whole and reviewed to ensure members are aware of changes.
Tip #10 Test drive the plan.
Take the opportunity to test drive the ESP during routine absences (holidays, illness leave, etc.) of the executive director. The executive director, acting executive director, board chairperson and members of the management team should be involved in a discussion regarding the results of the test drive and any required adjustments to the plan should be made.