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Every nonprofit arts organization will face a leadership transition one day. Are you prepared? Learn the key elements of planning for a successful leadership transition.
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Investing in Leadership:Planning for Succession
www.artsalliance.org
Planning for Succession
Introductions
• Name
• Affiliation
• What brought you to this session today?
• What do you hope to learn?
I. Why is succession planning important?
II. Laying the foundation for leadership transition
III. Conducting the search
IV. Special issues
V. Available resources
Planning for Succession
Job Satisfaction Findings
Succession: Arts Leadership for the 21st Century
ED sources of satisfaction: • Mission• Relationships• Engagement w/art
ED sources of dissatisfaction: High importance• Org’s finances• Stress/long hours• Funding req’ts/audiences• Unhappy with staffLow importance• Conflict with Board• Low compensation• Isolation
EL sources of satisfaction: Artistic reputation Art/community/mission Relationships
EL sources of dissatisfaction: High importance • Org’s finances• Stress/long hours• Unhappy with mgmt• Low compensationLow importance• Funding/program req’ts• Conflict among staff• Personnel problems
ED Turnover Timeline
27% of ED plan to retire after current position.
70% of non-retiring ED plan to leave current job within 5 years.
8%0%
21%
5%
40%
35%
19% 18%
31%41%
0%
20%
40%
60%
80%
100%
< 1 yr. 1-2 yrs. 3-5 yrs. 5-10yrs.
10+yrs.
Change
Retire
EL Turnover Timeline
91% of ELs plan to leave current job within 5 years.
16%
32%
43%
9%
0%
0%
20%
40%
60%
80%
100%
< 1 yr. 1-2 yrs. 3-5 yrs. 5-10 yrs. 10+ yrs.
Succession Readiness
76% of nonprofit arts orgs have no succession plan in place.
Illinois Arts Alliance
Leadership publications and programs
• Succession: Arts Leadership for the 21st Century (2002)
• Planning for Succession: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2003)
• Filling the Gap: The Interim Executive Director Solution (2005)
• Working Easier: A Toolkit for Board Members and Staff of Nonprofit Arts Organizations (2005)
• Executive Compensation for Illinois Nonprofit Arts Leaders (2005)
• Peer Coaching Circles (launched 2005)• Mentor Connection Service (launched 2006)
Laying the Foundation for Transition
To prepare for succession, organizational leaders should:
• Develop an emergency transition plan• Foster a culture of evaluation• Make leadership development a priority• Plan for the transfer of knowledge• Make a dry run: test and evaluate the
system before you need it.
The Emergency Transition Plan1. Who will take the executive director’s place?
2. Who will handle the work of the person(s) filling in for the executive director?
3. How much authority will the interim executive director have?
4. If that authority will be more limited than that of the current executive director, what controls will be put into place?
5. Who needs to be informed and how and when will each person or institution be notified?
6. Who is authorized to speak on behalf of the organization?
7. What financial systems need to be instituted?
8. How will the interim executive director and the board get the critical information they need to run the organization?
9. At what point, and how, will the board initiate a formal search for a new executive director?
Laying the Foundation for Transition
To prepare for succession, organizational leaders should:
• Develop an emergency transition plan• Foster a culture of evaluation• Make leadership development a priority• Plan for the transfer of knowledge• Make a dry run: test and evaluate the
system before you need it
The Succession PlanStems from an up-to-date strategic plan.
Answers the following questions:
• What will your search committee look like and how will it operate?
• How will the staff be involved in the search process?
• How will the current executive director be involved in the search process?
• Will you use an interim executive director?
• Will you use a search firm or outside consultant?
The Search Process1. Appoint a search committee and clarify its mandate2. Develop a search timeline3. Identify key competencies for the new staff member4. Update the job description5. Create a communications plan 6. Announce the opportunity and recruit candidates7. Fill the vacancy on an interim basis (if necessary)8. Screen candidates9. Select candidates and negotiate an agreement10. Manage the transition
Transition CommitteeSize
•Large enough to be diverse, small enough to be manageable
Composition•Knowledge of, involvement with, commitment to organization•Balance of skills, contacts, points of view•Ability to work together effectively•Ability to dedicate necessary time
Tasks•How will the committee keep the board abreast of its progress?•How many candidates will the committee present to the board?
Staffing •Who will ensure the committee’s work gets done expeditiously?
Developing a Communications Plan
A good plan includes strategies for how, when and where to communicate:
•Departing executive’s plans for the future
•Composition, mandate and timeline of search committee
•Job announcement and qualifications
•Progress updates from search committee
•Selection of a successor (with background information on their experience and qualifications)
•Successor’s vision for the organization
Barriers to Greater Involvement of Young African Americans as Arts
Organization Leaders
• Overall organizational development• Perception of low status and low pay• Schism between generations and subtle
discrimination
Suggestions for Change
• Create executive apprenticeship opportunities within your organization for existing staff and for other organizations’ existing staff
• Aggressively recruit young African Americans from both colleges and arts management programs, as well as from the local artist community
• Develop and enforce term limits and mandatory sabbaticals for existing leaders, and use young African Americans as “acting” staff when possible.
Succession Planning for Founders
• Talk to the founder about succession– How long do you see yourself running this organization?– Do you want the organization to survive beyond your tenure?
• Help the founder plan for retirement by contributing to a retirement plan
• Recruit board and staff with the potential to assume greater responsibility
• Honor the founder– Name a building or space in their honor– Establish an award or scholarship named for the founder– Create an honorary position
Succession Planning Resources
• www.ArtsAlliance.org– Planning for Succession: A Toolkit for Board Members and Staff
of Nonprofit Arts Organizations– Filling the Gap: The Interim Executive Director Solution– Coming soon: Human Resources toolkit for small & midsize
organizations
• www.BoardSource.org – The Drucker Foundation Self-Assessment Tool Set
– Hiring the Chief Executive
• www.ArtsBiz-Chicago.org– smARTscope assessment tool
Investing in Leadership:Planning for Succession
www.artsalliance.org