Demographic Trends Indicate That Our Population Is Aging Rapidly, And As The Baby Boom Generation Reaches Retirement Age, The Elderly Population Will Explode

Sample of EXECUTIVE DIRECTOR SUCCESSION PLAN

The function of Executive Director in a nonprofit organization is central to the organization’s success. The purpose of this Succession Plan is to provide for a transition from the current Executive Director of _[name of organization]_to the future Executive Director in a way to ensure smooth operation of _[name of organization]_ , honor the past and prepare_[name of organization]_ for the future.

This proposed succession plan includes suggested strategies and steps for the two major circumstances under which a transition occurs:  Sudden, unexpected transition caused by resignation, disability or death;  Planned retirement or resignation.

A copy of this plan will be held by the Chair of the Board of Directors and in the Executive Director’s office along with a copy of the Executive Director’s Employment Agreement. The Board of Directors is authorized (or authorizes the Executive Committee) of _ [name of organization] _to implement the terms of this plan in the event of the unplanned absence of the Executive Director.

UNEXPECTED VACANCY CAUSED BY DISABILITY, DEATH, EMERGENCY OR RESIGNATION In the event of an unplanned absence of the Executive Director, the [name of position] is to immediately inform the Board Chair of the absence. As soon as it is feasible, the Chair should convene a meeting of the Executive Committee to affirm the procedures prescribed in this plan or to make modifications as the Committee deems appropriate.

Long before losing a leader, the Board or Executive Committee (B/EC) should carefully evaluate the skills, abilities, personality, confidence, reputation and background of any internal candidates who might be qualified to serve as acting or interim Executive Director. The Executive Committee might consider the [name of position] as the active Executive Director while the Board determines whether to engage an external Interim Executive Director. The difference between and Acting and Interim Director is that an Acting Director is assumed by an internal candidate. An Interim Director is an individual from outside the organization that brings in additional staff resources during a prolonged vacancy of the Executive Director.

The person appointed as Acting Executive Director shall have the full authority for decision-making and independent action as the regular Executive Director.

The Acting Executive Director may be offered a temporary salary increase to the entry- level salary of the executive director position or an amount to be determined by the board upon approval of a final plan.

Executive Succession Plan Page 1

If the absence is sudden and permanent, then the Board of Directors will appoint a Transition and Search Committee within 14 days to plan and carry out a transition to a new permanent executive director. The Transition and Search Committee will also determine the need for an Interim Executive Director, and plan for the recruitment and selection of an Interim Executive Director and/or permanent Executive Director.

The Board will also decide whether to obtain outside assistance from a search firm, a leadership transition consultant or to conduct a self search for its new permanent Executive Director.

DISABILITY In the event of disability of the current Executive Director, the process will differ initially until determination is made if the disability is permanent and will lead to termination of the Executive Director’s responsibilities.

If the disability is sudden and significant, and the Executive Director is not able to perform his or her duties, an announcement will be made to the Board of Directors, members and other key constituencies announcing the Executive Director’s disability and the granting of a leave of absence. Future determination will be made to determine the length of the leave of absence. This announcement will include announcement of how administrative responsibilities will be executed in the Executive Director’s absence.

The Board Chair or a representative of the BOD will consult with the Executive Director and/or the Executive Director’s family on a periodic basis during the illness/disability to assess the situation and probable outcome.

If the absence is expected to last more than 3 months the Board of Directors will give immediate consideration, in consultation with the Acting Executive Director, to temporarily filling the management position left vacant by the Executive Director to an interim Executive Director. This is in recognition of the fact that for a term of more than three months, it may not be reasonable to expect the Acting Executive Director to carry the duties of both positions. The position description of a temporary manager would focus on covering the priority areas in which the Acting Executive Director needs assistance.

The decision about when the absent Executive Director returns to lead the _ [name of organization] _ should be determined by the Executive Director and the Board Chair. They will decide upon a mutually agreed upon schedule and start date. A reduced schedule for a set period of time can be allowed, by approval of the Board Chair, with the intention of working the way up to a full-time commitment.

At such time as the Executive Director and the Board of Directors determine that the disability, resignation or retirement will be agreed upon and announced and the succession procedures will be implemented.

EMERGENCY COMMUNICATIONS PLAN Immediately upon transferring the responsibilities to the Acting Executive Director, the Board Chair will notify staff members and members of the Board of Directors.

As soon as possible after the Acting Executive Director has begun covering the unplanned absence, Board members and the Acting Executive Director shall develop a Communication Plan that includes the kind of information that will be shared and with whom.

The plan should include:  Designating a key spokesperson selected by the Board of Directors who is the only one authorized to speak for _ [name of organization] _ with the media during the transition period.  Communicating the temporary leadership structure to key external supporters of_ [name of organization] _. This may include (but not be limited to) government contract officers, foundation program officers, civic leaders, major donors and others.  Developing a “script” for designated directors to use to contact the most important members on the contact lists by phone, as well as an approved draft to email to other stakeholders.  Developing and distributing a press release to the media with information appropriate to the situation. Again, one key spokesperson selected by the Board of Directors should handle responses and queries from the media.

SELECTING AN INTERIM EXECUTIVE DIRECTOR Should the Board decide to engage an external interim Executive Director, the basic steps in the selection process are:  Selecting prospects that may include senior professional staff member(s), board members and external professionals who have the skills and judgment to serve as a temporary or interim Executive Director.  Interviewing candidate(s).  Reviewing qualifications and checking references. It’s important to verify that the candidate preferably has experience as executive director of a nonprofit.  Negotiating and signing a contract.

References should be carefully checked before the Executive Committee enters into a contract agreement with the selected candidate. Such a contract should clearly spell out all performance expectations, deadlines and limitations on authority. An Interim Executive Director may have full authority for day-to-day decision-making, but some decisions might require consultation with the Executive Committee—such as staff hiring and terminations, financial issues, new projects, public policy positions, etc.

PLANNED RETIREMENT OR RESIGNATION A planned retirement or resignation usually begins when the current Executive Director confidentially informs the Executive Committee and Board of a projected retirement date. The current Executive Director’s employment agreement requires 90 days notice.

Prior to the Executive Director’s retirement date, the Board should make a decision about whether to obtain outside assistance from a search firm, a leadership transition consultant or to conduct a self search for its new permanent Executive Director.

SELECTING AN OUTSIDE SEARCH CONSULTANT If the Board decides to use an outside search consultant, the basic steps in the selection process are:  Selecting prospective consultants by conferring with other persons/organizations about who they might recommend.  Interviewing candidate(s)  Reviewing qualifications and checking references.  Negotiating and signing a contract.

It is important to understand the process a firm uses to produce its finalists. Does a firm suggest candidates only from its own stable of job seekers? Does it define needs and priorities and actively search for the best person to carry out the organization’s mission?

The selected consultant must work closely with the Transition and Search Committee (T/SC) to understand an organization’s needs; develop an accurate Executive Director profile; and test candidates carefully to ensure they have the qualities required for the position.

Suggested steps in process include:  The B/EC and consultant set up a flexible search timeline with appropriate milestones.  If a non-emergency vacancy due to retirement of the Executive Director, the B/EC: o Decides whether there will be overlap of the retiring Executive Director with the incoming Executive Director—and how much overlap. o Decides what the future role of the retiring Executive Director will be-- consultant, advisor, etc. o Clearly defines the role of the retiring Executive Director in the search process. Experience has shown it’s usually a serious mistake to have the retiring Executive Director actively involved in the search for his or her replacement. Frequently the retiring Executive Director’s participation is limited to being interviewed by the consultant, voicing his/her opinions about the Executive Director profile and meeting the final three candidates. o Plans for an appropriate retirement celebration for the departing Executive Director at a future date.  With guidance from the consultant, the B/EC appoints a Transition and Search Committee (T/SC) and determines: o Qualifications of the T/SC members. o Identity of T/SC members. o How active a role the T/SC will play in the search.

o What the T/SC’s responsibilities/authority will be.  The Board passes a resolution defining the T/SC’s responsibilities and authority.  The Board informs staff and key stakeholders about the transition including: o When the Executive Director is retiring o Who will head the Search Committee o What outside help has been contracted o Timeline for the search  The Board communicates with staff and key stakeholders on a regular basis throughout the search process—with strict confidentiality maintained as to the identity of candidates.  Consultant studies all key documents to understand the organization’s mission, history, current status, goals and priorities.  Consultant then assesses the organization’s future needs and priorities through interviews with key stakeholders, focus groups and on-line surveys of key groups.  Consultant crafts an Executive Director profile based on extensive organizational assessments and presents it to the T/SC for approval. The Executive Director profile may be revised several times before the T/SC and Board are satisfied that it is precisely defines their needs. Once consensus is reached, the profile is accepted by the T/SC.

RECRUITING & HIRING During the recruiting and hiring process, the transition consultant, working in conjunction with the Transition and Search Committee, accomplishes the following tasks:  Sets up a web site to provide on-line information for candidates and receive resumes.  Places job ads, searches the transition consultant’s network and assists key stakeholders in identifying potential candidates from their networks for the consultant to approach.  Serves as contact point for candidates and their inquiries; handles communications with candidates.  Develops all documents needed in the search/screening process.  Reviews resumes and eliminates unqualified candidates.  Arranges and conducts telephone interviews. Eliminates unqualified candidates.  Administers an on-line questionnaire designed to reveal candidates’ thought processes and their ability to communicate.  Conducts first round of personal interviews.  Conducts second round of personal interviews.  Checks references and determines finalists.  Conducts background checks for finalists.  Presents finalist(s) to the Board for approval.

INTRODUCING, ORIENTING & EVALUATING THE NEW EXECUTIVE DIRECTOR Depending upon the desire of the Board, the transition consultant can also assist with:  Negotiating an employment agreement with the new Executive Director.  Developing an Executive Director performance plan/evaluation process.

 Developing a communications plan to announce hiring of the new Executive Director and introduce him/her to the community.  Orienting new Executive Director to the organization and other key stakeholders and the community.  Developing Executive Director job expectations and goals for the Board to use for evaluations at three and six months.  Defining an Executive Director development plan for the new leader.

To become effective, this plan — with any amendments -- must be approved by the __[name of organization’s]__ President, President-Elect and Immediate Past- President and forwarded to the full Board of Directors for its vote of approval. After it is signed and dated by the Board President, this document should be stored in [name of organizations]__ electronic back-up system off-site.

Reviewed and approved by the [name of organization]__ Board of Directors on ___ [date]______

By :______( signature) [Board President’s Name]_; President _ [name of organization]_ Board of Directors

Dated: ______