Succession Planning - Is Your Organization Prepared?

Sarah has been the CEO of a large non-profit organization for the past eight years. While she loves her job and the people she works with, she is looking to retire at the end of the year so she can move and be closer to her daughter and grandkids. She has notified her team and the Board of Directors so they can get a plan in place to find her replacement.

With a record number of CEOs retiring last year, the need for succession planning continues to climb. Unfortunately, 65% of senior living facilities do not have a succession plan in place for when key leadership leave the organization. Whether facing the chaos that results in an unexpected departure or transitioning to a new CEO following a planned retirement, an in-place succession plan is a vital component to success rather than a disaster.

A well-thought-out, recorded succession plan offers a double-fold advantage to your nursing home, assisted living or senior living facility.

1. The process of creating a plan:
            - Promotes a critical assessment of organizational processes and procedures.
            - Leads to improvement in day-to-day facility operations.

2. Enacting the plan when the time comes ensures:
            - A smooth transition
            - Organizational stability
            - Leadership continuity

Succession plans must include two options – replacing the CEO from within-house and from outside.

1. In-house key points and advantages
            - Provides an opportunity for senior executives to engage the younger leaders in a focused and deliberate developmental journey that results in            developing natural successors.
            - Employees receive training and professional development that helps them prepare for advancement.
            - Promotes establishing a program of lateral ‘cross-training.’
            - Creates an environment in which employees feel valued and have a clear path for advancement.
            - Leads to happy, invested employees.
            - Improves organizational culture.
            - Increases employee retention.

2.  ‘New Blood’ key points and advantages
            - Identifies opportunities to infuse new talent.
            - Considers what new roles will be needed within the next three, five, and ten years.
            - Invites fresh ideas for growth.

Establishing an effective succession plan that ensures a seamless handoff and maintains a smooth-running operation requires collaboration between all stakeholders within your organization. This process includes:

1. Board Members
            - View the process as an investment in long-term organizational success.
            - Discuss their future plans with C-level executives.
            - Review potential internal candidates and talent.
            - Create a transitional process and planning committee.

2. Executive Leadership
            - Summarize key processes and to-do.
            - Assess internal leadership and talent.
            - Maintain transparent and timely communication with the board.

3. Key Leadership
            - Provide support and communication during the time of transition.
            - Bridge of the absence and maintain a smooth-running operation during the transition.

Don’t get caught without a viable succession plan. Take the first step today. For additional information and details of successful succession planning, read the LeaderStat succession planning resource document.