Diese Präsentation wurde erfolgreich gemeldet.
Die SlideShare-Präsentation wird heruntergeladen. ×
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Anzeige
Nächste SlideShare
Board Leadership Succession
Board Leadership Succession
Wird geladen in …3
×

Hier ansehen

1 von 39 Anzeige

Board succession planning

Herunterladen, um offline zu lesen

Boards should be strategic assets to the organization and their competence profile should fit the future challenges facing the enterprise. Identification and recruitment of the right mix of competencies should be a high board priority.

Boards should be strategic assets to the organization and their competence profile should fit the future challenges facing the enterprise. Identification and recruitment of the right mix of competencies should be a high board priority.

Anzeige
Anzeige

Weitere Verwandte Inhalte

Diashows für Sie (20)

Ähnlich wie Board succession planning (20)

Anzeige

Aktuellste (20)

Anzeige

Board succession planning

  1. 1. Governance Leadership Succession: Profiling the Board You Need in 2020 and Recruiting Them to Run © Signature Resources 2015 Les Wallace, Ph.D. Signatureresources.com 1
  2. 2. Today’s topics  What is leadership succession?  What is governance leadership succession?  How do you plan for it?  Active recruitment of board members.  Selection processes.  Board development to enhance competency. © Signature Resources 2015 2
  3. 3. Who is this guy? Ideal 21C job: Grandparent!  University professor / administrator  Hospital administrator—traditional Board  International consulting company… Touch 20,000 people yr. / Coach 28 Execs / 17 Boards a year  50% for-profit / 50% government & not-for-profit clients  Served on a regional Bank Board of Directors  Served on Counterpart International Board  Serving on World Future Society Board © Signature Resources 2015 3
  4. 4. The Vital Few Building blocks of Governance Excellence  Talent: board with experience and competencies to oversee a complex organization. Does this leave out other member voices?  Strategic focus: envisioning, positioning and re- positioning the Credit Union to remain viable, valuable and vibrant. EVERYTHING FLOWS FROM STRATEGY!  Clarity on organizational performance and risk—the vital few performance and risk domains a board should track.  Clarity on governance process: effective then efficient. © Signature Resources 2015 4
  5. 5. What is leadership succession?  Leadership succession is the responsibility of boards and organizational leaders to assure that a leadership development plan is in place to prepare future key leaders.  An emergency succession policy is commonplace: who will take charge should a key leader suddenly become not available?  Investing in leadership succession in-house does not come with any promise of succession from the board or organization—both entities should always conduct a wide search for replacing key leadership. © Signature Resources 2015 5
  6. 6. What is Governance leadership succession?  Governance leadership succession is the responsibility a board has to assure board makeup and future appointments meet the changing needs of the organization.  Leadership succession implies advanced thinking, recruiting and assessment of board members before they are needed.  Maintaining / improving competencies of current board members is also “competency succession.” Est. average 1 hr./month. © Signature Resources 2015 6
  7. 7. My Job Today © Signature Resources 2015  A look @ high performance governance practices as assembled from BoardSource, National Association of Corporate Directors, CUES, The Conference Board and others.  Candid opinions based on work with 300+ boards: For-profit, non-profit, international, financial, healthcare, community, national associations.  Open dialogue—your question is not an interruption! 7
  8. 8. © Signature Resources 2015 Synthesis of Elements of Governance 8
  9. 9. Your Job Today: Final Exam © Signature Resources 2015  What might you take back to your board to start the conversation about the board of the future? 9
  10. 10. Today’s Governance From the Literature NACD Public Company Governance Survey, Nat. Association of Corp. Directors (2014) “What Directors Think” (2014), Spencer Stuart © Signature Resources 2015 priorities for Boards from national surveys: ① Strategic planning and oversight. ② Board composition ③ Board refresh. ④Risk oversight. ⑤Regular board assessments are considered very effective by 85% of the survey population. 10
  11. 11. 21st Century Governance  Boards as Committees (‘50s-’60s) CEO Driven  Boards as Managers (’60s-’70s) Operational / Fiduciary  Boards as Trustees (‘80s-90’s) Policy and Strategy (John Carver) 21st Century Boards Transformational Leaders “Board of Directors must be a strategic asset.” © Signature Resources 2015 11
  12. 12. © Signature Resources 2015 Strategy is about Transforming the Organization to Remain… Viable Valuable Vibrant! 12
  13. 13. 21st Century Governance and Strategy 21st Century Boards Transformational Leaders The Board should be a strategic asset to the organization! What’s the implication for board makeup? For succession? © Signature Resources 2015 13
  14. 14. © Signature Resources 2015 Strategy is about Transforming the Organization to Remain Viable, Valuable, and Vibrant! So your board needs to be…  Strategic thinkers.  Change compatible.  Focused on transformation of the enterprise.  Effectively navigating changing customer, regulatory and constituent demands.  Strategic planning looking three to five years out.  Annually refreshing the strategic plan. 14
  15. 15. High Performance Governance: Competence  Board job descriptions identify leadership competencies required. Nominations, interviews, screening confirm competencies.  Term limits (officers and board seats) assures governance refresh and infusion of fresh eyes / new competencies.  Governance Leadership succession program in place develops future leaders from the field early… 1-3 years out: and future board officers.  No emeritus status board members.  Board members failing the involvement / attendance / conduct standards are removed for cause: bylaws are specific to these expectations. © Signature Resources 2015 15
  16. 16. Governance Leadership Succession © Signature Resources 2015 ① Profile the ideal board member for where you’re going—not where you are. ② Identify a pool of candidates. ③ Engage, Develop, Cultivate the pool. ④ Narrow the pool by giving the most capable and Committed greater immersion and development. ① Encourage the best to stand for board appointment. Create a Board Makeup Dashboard: Current and Desired in the Future 16
  17. 17. Board Profile: Today - Tomorrow  Gender  Age  Ethnicity  Length of board service  Leadership experience and competencies  Special competencies / experience / networks © Signature Resources 2015 17
  18. 18. Governance Leadership Succession Timeline? Board of Directors makes annual commitment to identify and develop potential new board members ahead of vacancies. A minimum 12 months before a known vacancy, a pool of potential candidates are identified and screened as to interests and qualifications.  Preferable: 2-3 years in advance of a board appointment the Board of Directors has identified people with potential and is involving them in some way in governance development and/or volunteer efforts for the enterprise.© Signature Resources 2015 18
  19. 19. Planning for a Future Board  Chair and Vice Chair have crucial conversations with board members who should move on.  Term limits assure opportunity for new appointments without having to have difficult conversations.  Three year terms with one reappointment is typical.  Create a “board profile” of what you will need 3-5 years out.  Create a pool of potential candidates and actively screen them for competency and mission alignment.  Actively recruit. © Signature Resources 2015 19
  20. 20. Planning for a Future Board  Crucial conversations regarding legacy moves: “Based upon our profile of future board needs we would like to act quickly on refreshing our makeup.” “You’ve given valuable service however we would like you to consider relinquishing your board seat for a new appointment.” The CEO should not be involved in these conversations with board members who need to move on! © Signature Resources 2015 20
  21. 21. Who Guides Board Recruitment?  Governance and Nominating committee  Executive Committee © Signature Resources 2015 What’s the role of the CEO?  Involved in conversations about potential future board needs  Involved in end of screening interviews with potential candidates  Heavily involved in new board orientation 21
  22. 22. Where / How do you find folks who might fit the ideal profile?  Board & past Board know some in the community.  The Executive / Management team knows some.  Your networks of community and business leader contacts know some.  You can research names from the university, community leadership & chamber lists for potential. © Signature Resources 2015 22
  23. 23. Finding Competent Board Members  88% Ask for board member recommendations.  69% evaluate board composition via a gap analysis or matrix.  63% invite non board members to serve on committees.  63% cultivate relationships with colleagues or community leaders.  41% cultivate relationships with corporations or other organizations. BoardSource Nonprofit Government Index 2012. © Signature Resources 2015 23
  24. 24. Board Members: Where do you Find Them? © Signature Resources 2015  Colleges and Universities—faculty and graduate students  Chambers of Commerce  Specialty Chambers—Black, Latino, Asian, Native American  Young Professional Groups  Professional Associations  Small Business Alliance Groups  Specialty Legal Societies  State not-profit societies  Mid-to upper managers of business in your area  Your network of high performance leaders! 24
  25. 25. Selection  You will end up with a number of highly qualified candidates who might serve your CU.  Narrowing the group to the vital few must align with all the goals of your new board profile: competencies, experience, demographic addition, networks.  Don’t be afraid to add a board member with which the current board was not familiar before the search.  “Fresh eyes” will be a valuable contribution to your board.  “Associate members” has become a popular new board member recruitment and decision mode. © Signature Resources 2015 25
  26. 26. Future Governing Boards © Signature Resources 2015 “In the not to distant future, new board members, at all levels of enterprise--from community organization to corporations--will be required to ‘certify governance competency’ to quality for an appointment / election.” Les Wallace  26
  27. 27. Future Governing Boards © Signature Resources 2015  Term limits the norm.  Recruitment focuses on competencies and connections.  Compensation for not-for-profit board will support increased competencies.  Diverse board makeup will become the norm rather than the exception.  Board officer development will become a higher priority investment.  Board coaches will be commonplace. 27
  28. 28. Sustaining Competency  Annual self assessment guides board improvement  Special emphasis on environmental scanning, benchmarking, board tutorials (e.g. regulation, quality, supply chain, etc.), keep eyes on the changing horizon.  Officers and future officers need specific development about their roles, functions and leadership approaches. © Signature Resources 2015 28
  29. 29. Governance Diversity and Youth Movement © Signature Resources 2015 “Suddenly—Age is a Diversity Issue” www.cues.org/article/view/id/Good-governance-age-is-board-diversity-issue 29
  30. 30. Governance Youth Movement (As seen by some) © Signature Resources 2015 30
  31. 31. Questions? © Signature Resources 2015 31 Final Exam: What might you take back to your board to start the conversation about the board of the future?
  32. 32. Extra Credit On Boarding the New Board Member Make the proper investment! © Signature Resources 2015 32
  33. 33. Onboarding  Adequate orientation is critical to helping the new board member to a fast start.  Based upon an hourly value of board service for you @ $500/hr. and an estimated 62+ hours of service a year—you’re bringing on the equivalent of a $31,000 investment (first year value).  One day on site with the executive team and key staff for briefings and dialogue is a minimum.  Another 3+ hours with Board Chair, Reviewing committee minutes, strategic plan and other documents is a minimum. © Signature Resources 2015 33
  34. 34. New Board Orientation : Materials Review Offsite materials review  History of the organization.  Mission, vision, values statements  Summary of services, special capabilities, planned services.  Newsletters, press clippings.  Financial performance past three years including external audit.  Regulatory / compliance review findings.  Annual Report.  HR org. chart & bio-sketch of professional backgrounds of key staff.  Strategic Plan.  Board by-laws.  Three years of board minutes.  Board policy and procedures.  Current board profile and professional background bio-sketches.  Board commitment and conflict of interest statements for signing.  Recent governance self-assessment results.  Committee structure and charters.  Committee Minutes.  Board calendar. © Signature Resources 2015 34
  35. 35. New Board Orientation II Onsite introductions and briefings  Staff leadership welcome meeting and introductions.  Key programmatic one on one meetings.  Financial briefing from CFO and review of board financial dashboard.  ERM briefing from the Chief Risk Officer or Supervisory committee chair.  Human resources briefing including review of board “organizational climate” dashboard.  Customer briefing including last twelve months satisfaction and value survey results.  Board Chair briefing: Board composition philosophy and leadership succession.  Recent board self-assessment results.  Board committee assignment. © Signature Resources 2015 35
  36. 36. New Board Orientation III Governance Education  Digest assigned articles and booklets—even better, require specific reading prior to the appointment—voluntary pre- certification.  Phone consultation with Governance committee chair upon completion of reading and orientation.  Discuss annual calendar of conferences and expectations for attendance and learning commitments. © Signature Resources 2015 36
  37. 37. © Signature Resources 2015 37
  38. 38. Who is this guy? © Signature Resources 2015 38
  39. 39. Les Wallace, Ph.D. President, Signature Resources Inc. Les@signatureresources.com  Dr. Wallace is recognized for tracking business environment and workplace trends and their impact upon business and government. His publications have appeared in Leadership Excellence, Personnel Journal, Credit Union Management, Public Management, and Nation's Business as well as numerous research and conference proceedings. His latest book, co-authored with Dr. Jim Trinka, A Legacy of 21st Century Leadership, outlines the leadership organizations need in a global, fast moving business environment. His book, Principles of 21st Century Governance (2013) is being used by many boards in the profit and not-for-profit sectors to design governance development approaches.  His new book, Personal Success in a Team Environment (2014) is used by individuals and organizations to improve teamwork, career building and success at work.  Les is a frequent consultant and speaker on issues of organizational transformation and leadership, employee engagement, strategic thinking and board of directors development and governance. His clients include Fortune 100 businesses, Government agencies, and not-for-profit organizations world-wide. Dr. Wallace is also the host resource on the 9Minute Mentor, a series short video tutorials governance.  Les has served on the Board of Security First Bank and currently serves on the international Boards of the World Future Society and Counterpart International. He is a member of the National Association of Corporate Directors. Les writes an on-line column for CUES Center for Credit Union Board Education.  Preview his video series on governance: www.signatureresources “Dr. Wallace on Camera.”  https://twitter.com/9MinuteMentor © Signature Resources 2015 39

×