Nonprofit Resources

Anticipating Change: 7 Steps to an Effective Succession Plan

What would happen if a member of your organization’s leadership team or another key employee left? Amid the daily demands your organization faces, succession planning may not seem urgent. But leadership changes can occur for many reasons, from planned promotions and retirements to sudden vacancies resulting from a resignation, termination, or illness.

The era of employees spending decades with an organization, advancing through the ranks, is largely over. Today’s workers are on the lookout for new opportunities and challenges. Proactive organizations anticipate and plan for this reality.

Plan for the Inevitable

A well-crafted succession plan can ensure smooth transitions during both anticipated and unforeseen leadership changes. Without one, a sudden leadership departure could result in confusion and negatively affect employee morale, daily operations, internal controls, donations, and even mission fulfillment.

The steps below will help you create or refine your succession plan. (Note: Churches affiliated with a denomination may be subject to formal succession planning structures and procedures. Check with your denomination or governing authority if you’re unsure.

1. Determine who to involve in the planning. 

Establish a committee to draft the plan and obtain input and approval from the board. Assign clear responsibilities and timelines to make the process as efficient as possible.

While it may feel uncomfortable, it’s important to include the employee whose role is being planned for. Their insight into the role’s challenges and required competencies is invaluable. Emphasize the importance of their role within the organization and why planning for a smooth transition is critical. Most leaders will appreciate the organization’s foresight and support the effort.

2. Identify which roles to plan for. 

Your top leader is an obvious choice, but don’t overlook other critical positions that should always be filled. At a church, for example, this might include associate pastors, the executive pastor, the business administrator, and other key ministry leaders, such as the school principal. At a nonprofit, it could include the chief executive officer as well as the chief financial officer, chief operating officer, chief development officer, program vice presidents, and broadcast team members.

Next, repeat the remaining steps for each identified role.

3. Review and update job descriptions. 

Ensure each job description is current, accurate, and comprehensive. Include the desired qualifications, competencies, responsibilities, and expected outcomes. If possible, have the current staff member in that position review and comment on the accuracy of the job description. They have a better understanding of the role than can be gleaned from the document.

Consider the current and upcoming challenges your organization faces, and include the skill sets and leadership qualities required to address them. Additionally, evaluate any soft skills or specializations held by the previous leader that might not be present in the new leader. Explore the team or organization to see if another team member may be able to step up to fill the gap.

4. Document any internal control processes or procedures the individual participates in and develop interim procedures to be followed until the vacant position is filled.

List all internal control processes and procedures tied to the role—such as check signing, review of expenses and credit card charges, and access to online banking or donor systems—and develop interim procedures to maintain oversight until the position is filled. Overlooking this step can expose your organization to fraud and operational risk.

5. Plan for all contingencies. 

As noted earlier, there are several reasons why employee departures can occur. Each potential scenario will require a different response. Retirement, for example, should be planned for and handled differently than a sudden leave of absence due to serious illness or injury.

For each scenario, consider:

• Whether you need an interim leader while looking for a permanent hire
• Who will manage key tasks and controls during the vacancy
• Who will communicate the transition plan to donors, members, clients, other stakeholders, and the general public

6. Build a leadership pipeline.

It is ideal to have employees on staff who can step into the vacated position. Ongoing training, professional development, mentoring, and coaching can help your organization fill the pipeline with talented employees who have leadership potential.

Your governing board should collaborate with management to foster an organization-wide culture of leadership development, encouraging leaders to prepare successors for roles across the organization.

7. Review succession plans regularly—and after each transition. 

Roles evolve, as do the challenges and opportunities your organization faces. Schedule periodic reviews of your succession plan to ensure the role, plan, and strategy remain relevant and effective.

After each transition, restart the succession planning process for that role. Organizational strategist Steve Graves recommends that organizations adopt a “catch and release” mindset. An effective succession plan that includes leadership development will help your organization “catch and release” talented individuals and be prepared for whatever leadership changes the future holds.

If you’d like support with succession planning or leadership transitions at your organization, CapinCrouse is here to help. Please contact us to learn more.

This article has been updated.

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