Rachael Gibson (Raffa, PC), Mike Gifford (AIDS Resource Center of

Wisconsin)

Focuses on making the world a better place

Contributes to client’s abilities to achieve their

missions and deliver their promises to the world.

Keeps organizations compliant, effective, and

efficient with practical back office support and

deeper strategies that create sustainability

Provides expertise in consulting, accounting,

nonprofit search, and technology services that help

advance client’s organizational missions.

RAFFA, P.C.

1899 L Street, NW,

Suite 900

Washington, DC 20036

(202) 995-7245

Business Model & Strategy

LeadershipResources

Culture

THE

FOURELEMENTS

Business Model: How the organization creates and delivers value, and finances the value-creation process.• Has at least 5-7 years of life in front of it.• Built on quality services. Needed by clients. Valued by

donors/funders.

Business Strategy: A coordinated set of actions aimed at creating and sustaining a market position in order to carry out your nonprofit’s mission. (Competitive advantage.)• Is there a strategy in place? Is it written? • Does it position the organization to meet future needs and

demands?• Are the board and staff aligned with it and about it?

Leadership in place to meet current and future needs Succession plans for top leadership The Board is a high-value asset to the organization The Board’s work adequately covers its three core roles: Shaping mission and direction Ensuring leadership and resources Monitoring and improving performance, including its own Strong, positive relationship between Board and executive Diversity plus cultural and intergenerational competence

Financial resources: sufficient, diverse, well-managed

Physical assets (facilities, campus, etc.) are maintained

Human resources (staff, volunteers) are sufficient, stable, engaged

Technology aligns with the business model

Reputation/brand: understands its reputation in the community

Proactive resource development strategy in place

Good stewardship of hard assets AND building soft assets

“Sacred values” clear to board and staff

Decision-making authority defined

Agile and resilient

Agreement on commitment to diversity and inclusion

Culture and future direction aligned

Business Model & Strategy

LeadershipResources

Culture

THE

FOURELEMENTS

Ensures Organizational Sustainability

Increases Transition Success

Mitigates Risk All careers eventually

lead to a transition…

It’s just a matter of when and how

well managed

1. SUCCESSION ESSENTIALS • Executive Backup Plan

• Succession Policy

2. LEADER DEVELOPMENT • Proactive Talent Management

3. DEPARTURE-DEFINED • Succession Essentials

• Sustainability Planning

The “Essentials”

Emergency Backup Plans

Board Adopted Succession Policy

Agreement Between the Executive and Designated Backup(s)

Identifies Key Duties and Key Relationships

Assigns Responsibility To Designated Backup(s)

Outlines Cross-training Needs for Backup to Step in

Develops a Communications Plan for Proper Notification

Board-adopted policy

Outlines how to handle a planned executive departure

Statement of commitment:• Prepares for inevitable leadership

change

• Assesses leadership needs before beginning a search

• Plan to appoint interim leadership

BENEFIT:

• Ensures Board

Agreement

Goal Increase organization’s capacity to deliver its

mission under new leadership, whenever the transition occurs

Outcomes Capacity-building plan strengthens the four critical

elements of organizational sustainability Succession policy outlines the board’s policies &

roles for a chief executive transition Backup plans and cross-training for continuity

1. Connect to overall organization strategy2. Design as a disciplined process, not an event

1. Stretch assignments (70%)2. Coaching/mentoring (20%)3. Training (10%)

3. Organize organizationally, not just top level4. Align with HR practices to support it5. Measure and evaluate6. Give it the time it needs7. Communicate often

Ensures continuity

Builds bench depth and internal capacity

Key responsibility of top leadership; can’t be delegated

Best if involvement is broad-based and connected to ongoing succession planning

Minimizes crisis of an unplanned absence

Identifies “organizational gaps” in coverage

Proactive assessment of the organization’s ability to accomplish its mission

with present and future leadership with longevity, strength, and success in

meeting the needs of those within the organization and with those served.

Planning Does Planning Does NOT

• Builds capacity for mission impact

• Prepares proactively for executive transition 1-5 years in advance

• Reviews organizational business model/strategy, leadership, culture, and resources to increase effectiveness and longevity.

• Aligned with the strategic plans of the organization

• Only focus on financial stability

Strategic implementation of activities & processes designed to limit the

impact of planned or unplanned absences or vacancies in critical

positions when they do occur.

Planning Does Planning Does NOT

• Identifies critical roles & functions

• Advances leader development

• Reviews staff with potential (ability to learn & grow) and experience to support critical positions during absences/ vacancies

• Establishes continuity in leadership

• Force staff to vacate a position

• Guarantee anyone a position

• Oblige anyone to take an unwanted position

• Create anxiety due to an absence or vacancy

• Eliminate leadership positions

Who would need to be convinced of the value and importance given other competing priorities?

Who might you see as an advocate or champion?

What would help make the case clear and compelling to act now or at a later date?

What is the biggest barrier to action?

HIV Medical Home model of care

198 staff

13 clinics and offices

$67 million revenue

3,500 patients and clients

40,000 people served through prevention efforts

3,440 Patients and Clients

Succession Planning

Doug Nelson Mike Gifford

Founding CEO Successor CEO

Contingency Planning

Mike Gifford Deb Endean

Current CEO CEO in preparation

Succession Planning

Doug Nelson Mike Gifford

Founding CEO Successor CEO

1.) Things were going well at ARCW

2.) Identifiable internal candidate

3.) Time to further develop skills

Timeline:• Established 2006• Implemented 2011

Process:• CEO-initiated• Board Approved

Selection:• CEO-identified• Board vetted

Training:• No formal plan• Years of Mentoring• Formal Training• Board Relations• Fundraising

Quiet!

Sophisticated 6 month transition and communication plan

100% retention of senior leadership

Ongoing success of organization• Budget surpluses

• Record number of people served

• Improved quality performance

• Ongoing expansion to meet mission

Widely accepted by external stakeholders

Contingency Planning

Mike Gifford Deb Endean

Current CEO CEO in preparation

1.) Things were going well at ARCW

2.) Identifiable internal candidate

3.) Time to further develop skills

4.) CEO with a long shelf life

Timeline: Established 2015Implemented (hopefully never)

Process: Board-initiated

Board Approved

Selection: CEO-identified

Board vetted

Training: Formal 3 year plan

Training: Formal 3 year plan

• Year 1 Financial Management & Board Relations

• Year 2 Pharmacy and Public Policy

• Year 3 Fundraising and Media Relations

It’s never too early nor too late to start!