Imagine losing your organization's chief paid staff member or executive director. An unexpected vacancy could take many months to fill and is both costly and disruptive to the organization. Whether you are a volunteer leader reading this or the executive director, a succession plan is critical to the success of your organization.
By expecting the unexpected and creating a succession plan for the organization, you are mitigating risk and maintaining a commitment to your members to deliver valued services without interruption. There are seven components of a succession plan that are important:
1. Rationale — In the plan itself, describe why it is important. Why did we create this? Future leaders will be reading this plan and need to understand why it is important, why it was created and why it should be updated on a regular basis.
2. Plan implementation — It is extremely important to understand how it is implemented in the event of a vacancy by answering five questions (include them in the plan):
- Who does the executive director need to inform in the event of a planned absence?
- How is the board of directors informed in the event of an unplanned absence?
- Who is authorized to review and modify the plan?
- Who has the authority to put the plan into action?
- Is there a budget in place to account for additional expenses?
3. Executive director priority functions — The next section of the plan needs to define the critical functions of the executive director and who will take over each of these functions. Develop a "function matrix" and update it regularly.
4. Short-term planned or unplanned vacancy — Not all vacancies are long term; some are temporary due to illness, surgeries and family emergencies. The organization needs to define short-term "stopgaps" as well and include it in the plan. For example, your organization may decide that if the absence is 30 days or less, an interim or acting executive director is not necessary but assigns temporary duties to other staff or volunteer leaders.
5. Long-term planned or unplanned vacancy — In the case of a long-term vacancy (as defined by the organization), the organization needs to identify an individual who can serve as interim executive director until a permanent replacement can be found. Review these appointments on a regular basis. If an organization does not have a suitable appointment, it should consider identifying interim executive director consultants who are vetted in advance and ready to step in when a vacancy occurs.
6. Compensation — Determine the compensation or consulting fee that will be paid to the prospective interim executive director identified. Make sure there is agreement by the prospective candidate around compensation. Not having agreement up front is like not having a plan at all.
7. Communication — If either a planned or unplanned long-term vacancy occurs, have in place a thorough communication plan. Just as the plan is important, communicating the vacancy to members and staff is equally important. The succession plan should identify who will create the communication plan and when the communication should occur.
Benjamin Franklin once said, "If you fail to plan, you are planning to fail." A succession plan is an important ingredient to the success of your organization, no matter how certain your organization's future appears. Take action now and avoid failure later!
