Monday, April 16, 2018

Succession Planning: Does Your CEO Need a Coach?

Note: This is the sixth of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.

Principle No. 6: Invest in Growing Your Leaders (Every Leader Needs a Coach)

Bill Conaty and Ram Charan preach this memorable one-liner in their powerful book, The Talent Masters: Why Smart Leaders Put People Before Numbers:

“Only one competency lasts.
It is the ability to create a steady,
self-renewing stream of leaders.”

These two business leaders list 12 “Leadership Pitfalls” in The Talent Masters, including “not developing your own succession plan.” Boards should memorize the list and be alert to staff members practicing this pitfall: “’Running for office’—which is totally transparent to everyone else.”

So on your journey towards succession plan readiness—how high is your board setting the bar on these two big ideas?
   1) Grow your CEO.
   2) Inspire your CEO to grow leaders.

I know. I know. The daily to-do list pushes succession preparation way down. Critical budget needs leave inadequate funds for leader development. Stop! Reflect! Pray! Consider this wisdom:

CFO to CEO:
“What happens if we invest in developing our people
and then they leave us?

CEO:
“What happens if we don’t, and they stay?”

Or this from Jack Welch, quoted by Jeff McManus in Growing Weeders Into Leaders: Leadership Lessons from the Ground Level“Before you are a leader, success is all about growing yourself. When you become a leader, success is all about growing others.”

Or this from Paul to Timothy: “And the things you have heard me say in the presence of many witnesses entrust to reliable people who will also be qualified to teach others.” (2 Timothy 2:2, NIV)

Principle No. 6 includes four discussion ideas for inspiring your CEO to grow—so when succession happens, your next CEO will take the baton of a healthy, God-honoring organization. 

Check it out here: 


DOWNLOADECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: Does your CEO need a coach? According to Soderquist Leadership, “92% of executives who received coaching said they would be willing to be coached again.”

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit BoardroomClick here.

Wednesday, April 4, 2018

Succession Planning: The Ongoing Continuous Process


Note:
 This is the fifth of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.


What committee or task force owns short-term vs. long-term succession planning?

Principle No. 5: Delegate Succession Planning to the Appropriate Committee lists three tips so you’ll keep succession planning on your year-round agenda.

Tip No. 1: There is a substantial difference between executive transition and succession planning. As Nancy Axelrod notes in her very helpful resource, Chief Executive Succession Planning, the first is “an intermittent event that is time-line driven,” while the latter is “an ongoing continuous process that boards (with the help of their chief executive) implement.”

Tip No. 2: Assign succession planning to the committee or task force that fits your board culture. One size doesn’t fit all—but consider what committee will have high competence in discerning your on-going process, but can also spring into action when an executive transition occurs (by design or default).

And this reminder: emergency transitions are a very bad time to begin learning how to spiritually discern God’s voice. Build some spiritual discernment exercises into your board work now—not when the crisis hits.

Tip No. 3: Provide your committee or task force with resource materials on succession planning. Four books are listed in the materials. Order all four and delegate your reading:

Stewards of a Sacred Trust: CEO Selection, Transition and Development for Boards of Christ-centered Organizations, by David L. McKenna (ECFAPress)
Chief Executive Succession Planning: Essential Guidance for Boards and CEOs, by Nancy R. Axelrod (BoardSource)
Boards That Lead: When to Take Charge, When to Partner, and When to Stay Out of the Way, by Ram Charan, Dennis Carey and Michael Useem (Harvard Business Review Press)
NEXT: Pastoral Succession That Works, by William Vanderbloemen and Warren Bird (Baker Books)


Principle No. 5 includes “Five Critical Next Steps” for your board to address, including: “If outside help or counsel is needed (a volunteer, a board coach, or consultant, for example), does the committee have the authority to retain necessary assistance? (What is the budget?) 

Check it out here: 

DOWNLOADECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: "Are there appropriate board-approved succession policies to guide the work of the Succession Planning Task Force?"

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit BoardroomClick here.

Friday, March 16, 2018

Succession Planning: “One Size Fits All” Is Bad Counsel


Note:
 This is the fourth of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.


Randon Samelson’s helpful book on biblical strategic planning describes a leadership succession plan that actually worked!

Breakthrough: Unleashing the Power of a Proven Plan outlines a six-step plan from 1 Chronicles 28-29. That passage is the narrative for King David’s baton pass to his son, Solomon, that included the blueprints to the temple. The result? The temple was completed. Solomon thrived. Outgoing CEO David did not whine in the background.

Skip the six-step plan, warns Samelson, and you’ll face at least three problems when approaching givers. (And you must keep donors in mind in your succession planning.)

But note: the David to Solomon succession plan is just one plan—it’s not the only plan. “One size fits all” is bad counsel. Check out Moses and Joshua, Elijah and Elisha, and Paul and Timothy (2 Timothy 2:2).

Principle No. 4: Model Successful Succession in the Boardroom First also reminds us: “As the board goes—so goes the organization.”

While boards expect their CEOs and senior team members to have stellar succession plans in place, it’s rare when boards excel at their own succession planning. The best boards anticipate their future leadership needs and build board succession planning into their DNA.

Principle No. 4 lists three aspirations on board succession, including: “We are developing a quality ‘pipeline’ of likely board prospects so when relocation, death, or the incapacitation of a board member requires filling an unexpired term, we are ready.” 

Check it out here: 

DOWNLOADECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: While certain biblical examples of leadership successions are not necessarily prescriptive for your unique situation, what are some foundational biblical principles you can glean from David and Solomon or Paul and Timothy or others?

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit BoardroomClick here.

Tuesday, March 6, 2018

Succession Planning: Is Your CEO Thriving or Just Surviving?

Note: This is the third of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.

Dr. Richard Swenson suggests you deactivate your home answering machine, or record this message:


“Please wait for the beep and hang up.” 

He says we need more margin (and less phone interruptions) in our lives. He defines “marginless” in his must-read classic, Margin: Restoring Emotional, Physical, Financial, and Time Reserves to Overloaded Lives.

Marginless is fatigue; margin is energy.
Marginless is red ink; margin is black ink.
Marginless is hurry; margin is calm.
Marginless is anxiety; margin is security.
Marginless is culture; margin is counterculture.
Marginless is the disease of the new millennium; margin is the cure.

“Margin” is a big idea in the third of 11 principles in the new ECFA Governance Toolbox on succession planning: “When your CEO’s lifestyle…is characterized by workaholism (often self-induced), an inappropriate physical condition or habit, a plateaued spiritual life, excessive travel, an out-of-whack work/family life balance, and other unhealthy practices—your leader’s tenure will often be shorter than God’s plan.”

Principle No. 3: Inspire Your CEO to Thrive With a God-Honoring Lifestyle asks: Is your CEO thriving?  

“An effective succession planning process begins by ensuring that your board invests time (and accountability) in CEO care. When your CEO lives and models a God-honoring and healthy lifestyle, he or she will likely serve your ministry longer with greater faithfulness and fruitfulness. And potential internal candidates will already affirm and practice this core value.”

William Vanderbloemen and Warren Bird, co-authors of NEXT: Pastoral Succession That Works, begin their book with this profound alert: “Every pastor is an interim pastor.” And we would add, “Every CEO is an interim CEO.”

Vanderbloemen and Bird recommend that boards create sabbatical policies, mandate vacations and day offs, and inspire leaders to be in accountability groups. They examined almost 200 pastoral succession case studies. “Too many successions are on the heels of a moral or financial failure. And nearly every one of those failures happened because the [leaders] were (a) tired and (b) didn’t have anyone to talk to about their personal fatigue.”

Principle No. 3 lists six policy considerations and three questions on thriving. Check it out here:

DOWNLOADECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: Reflect on the theological implications of “every CEO is an interim CEO.” Will our CEO leave when he or she is thriving, or just surviving?

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit BoardroomClick here.

Tuesday, February 27, 2018

Succession Planning: “Appointment Without Anointment Always Led to Disaster”


Note:
 This is the second of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.


“…the greatest tool for effective steward leaders is a mirror and a group of friends to be sure they are looking into it with clarity and focus.”

That insight is from R. Scott Rodin’s important book, The Steward Leader: Transforming People, Organizations and Communities. Who is holding your current leaders accountable—and what do they believe about leadership?


The second of 11 principles in the new ECFA Governance Toolbox Series on succession planning warns, “Before your board’s CEO succession planning discussion spirals into the nuts and bolts, stop the presses…” and reflect on this topic:

“Principle No. 2: Discern Your Board’s Succession Values and Beliefs”

Are all of your board members (and senior team members) on the same theological page? Is everyone in alignment on what Christ-centered leadership looks like? Noting two resources from Rodin and David McKenna, Video #2 of 4 wades into these important waters. Don’t skip this one!

Rodin says the antidote to the “owner-leader” trap is the steward leader. He skillfully contrasts the classic leadership styles (servant leadership, great man and charismatic leadership, transactional leadership, transformational leadership, etc.) with his unique and deeply biblical insights on the concept of a steward leader.

And then this gut-check for CEO search committees:

“I know of few Christian leaders today who were anointed before they were appointed.

“We have mostly employed the business model of doing careful searches, looking for Christian leaders who we can appoint to office. We check their credentials, put them through rigorous interviews and give them psychological tests before we make the critical appointment. Once they are in place, we then anoint them and ask God to bless their work.

“The biblical evidence seems to indicate that God selects leaders in the opposite order. Samuel anointed David before appointing him king. The selection criterion for leadership was not based on who seemed most fit for the appointment, but on whom God had anointed for the task. And appointment without anointment always led to disaster.”

Yikes! 

DOWNLOADECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

BOARD DISCUSSION: Do you agree that “appointment without anointment” will lead to disaster?

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit BoardroomClick here.

Monday, February 19, 2018

Succession Planning: “My Heart Had Left the Building”


Note:
This is the first of 11 blogs featuring practical wisdom from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Free to ECFA members, you can download the resource and video by clicking here.


“The number one issue for me was passion. My heart was no longer engaged in my job—the fire had gone out. My heart had left the building.”

That transparent admission is from Hans Finzel’s 80-page gut-check-of-a-book, The Power of Passion in Leadership: Lead From Your Heart Not Just Your Head.

The first of 11 principles in the new ECFA Governance Toolbox on succession planning is cautionary: “Principle No. 1: Avoid Buses and Boredom!”

Your board may have an updated emergency succession plan in place (watch the video for another gut check!), but what if your CEO gets bored?

My story is not prescriptive for other leaders, but I was good for about 11 years in any one position (and some less than 11 years). That’s how the Lord wired me. So I know that CEOs and board members will benefit from reading Finzel’s personal journey. He adds:

“It is not fair to the organization or the team to hang on for the wrong reasons. It’s better to leave too soon than to stay too long. Tentative leadership kills the momentum of the whole ministry.

“So, after 20 years in the first chair, I decided it was time for me to step down as the leader of our international ministry. I was no longer all in, so I needed to be all gone. It was a job I once loved, but no longer enjoyed. I asked the board to start the process of finding my replacement. This was one of the hardest decisions of my career, but a good one.”

DOWNLOAD: ECFA Governance Toolbox Series No. 4: Succession Planning – 11 Principles for Successful Successions: “Every CEO is an Interim CEO.” The toolbox includes 
   • Read-and-Engage Viewing Guide (20 pages) – photocopy for board members
   • Facilitator Guide (10 pages)
   • 4 short videos (4-5 minutes each)
   • Additional resources and succession planning tools

The Facilitator Guide provides three discussion directions (30-45 minutes; 45-60 minutes; or use at a board retreat or two-hour board development session). 

On CEO succession planning, David McKenna notes, “No decision of the board, absolutely no decision, is more profound.” As board members, are you stewarding the giftedness of your CEO? Next blog: “Principle 2: Discern Your Board’s Succession Values and Beliefs.”

BOARD ASSIGNMENT: Tee up a discussion, using Video #1, “Avoid Buses and Boredom!” from the new ECFA Governance Toolbox Series No. 4: Succession Planning. Click here.

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries on Lessons From the Nonprofit Boardroom. Click here.

Friday, January 19, 2018

God said, “It is good.” He didn’t say, “Oh, it’ll do.”



The question:
“How do you refresh a meeting that’s grown rote?” 


The answer: “Break the script.” 

At least that’s the wisdom from Chip Heath and Dan Heath in The Power of Moments: Why Certain Experiences Have Extraordinary Impact. If you’re on a church board, their “Clinic 2” in this bestselling book is a must-read. I named The Power of Moments my 2017 book-of-the-year. The authors give dozens of examples how organizations, churches, companies, schools, and other groups are breaking the script to create legendary moments for their clients, donors, customers, and members.

What meetings need a major refresh this year in your organization?
• Board meetings?
• Committee meetings?
• Staff meetings?
• Waste-of-time meetings?

Instead of slip-slidin’ into more boring meetings, take a holy time-out and rethink how you could refresh your board meetings. Not every meeting needs to be legendary, but I’m guessing—up to this point—no one has traveled home from your board meeting and exclaimed, “Now that was legendary!”

I use the “W.O.W.” acronym to encourage boards to break the script. You can download the “W.O.W. Factor Meeting Evaluation Form” online here, or in the Meeting Bucket chapter of Mastering the Management Buckets Workbook. Here’s a sample:

WELCOMING:
[  ] Meeting room was ready 15 minutes before start time.
[  ] Meeting facilitator was prepared and relaxed, ready to greet the first person who arrived. (Why? The meeting begins when the first person arrives.)

ORGANIZED:
[  ] The agenda, meeting purpose and anticipated outcomes of the meeting were distributed at least one to seven days in advance of the meeting to every participant.
[  ] The presenters were well-prepared and any materials distributed were helpful.
[  ] The meeting ended five minutes early.

WARM:
[  ] Food and beverage presentation (if provided) was appropriate.
[  ] Facilitator demonstrated warmth and wisdom in leading the meeting.
[  ] Participants demonstrated warmth and wisdom and engaged in the meeting.

Warning! When someone suggests you add a little pizazz to your meetings, but a nay-sayer whines about the time or cost, the Heaths respond, “Beware the soul-sucking force of reasonableness.” Read The Power of Moments to learn why a hotel in Los Angeles has a poolside Popsicle Hotline, even though a "reasonable" manager would veto the practice. “You place an order, and minutes later, a staffer wearing white gloves delivers your cherry, orange, or grape Popsicles to you at poolside. On a silver tray. For free.”

How important is it that we raise the bar in our meetings? Don Cousins, in urging ministry leaders to manage God’s work for God’s glory, noted, “Anything less contradicts the Creator, who after creation surveyed his work and said, ‘It is good.’ He didn’t say, ’Oh, it’ll do.’”

BOARD ASSIGNMENT: At your next board meeting, ask one board member to observe the meeting and share an end-of-meeting evaluation—using the “W.O.W. Factor Meeting Evaluation Form,” or something similar.

MORE RESOURCES: Follow the “40 Blogs. 40 Wednesdays.” color commentaries from the new book, Lessons From the Nonprofit Boardroom. Click here.