Ep 122: CEO Succession Planning: Are You Prepared for the Unexpected?

The importance of CEO succession planning for nonprofit organizations with Jennifer Drago.

Succession planning is crucial but often overlooked in nonprofits. More than 70 percent of organizations lack formal CEO succession plans and emergency transition procedures. This leaves boards unprepared when sudden leadership changes occur. What happens if your CEO leaves unexpectedly? Who will take over financial and operational responsibilities on short notice?

Senior Living Visionaries host, Jennifer Drago, discusses the importance of CEO succession planning for nonprofit organizations. She emphasizes the need for nonprofits to have an emergency leadership transition plan in place in case of an abrupt CEO departure. This plan should outline who will take on key responsibilities like financial oversight, communications, and interim management.

CEO Succession Planning [1:02]
Jennifer discusses the importance of CEO succession planning and emergency transition planning based on data from the 2021 Leading with Intent board survey by BoardSource. She highlights the low percentage of organizations with written CEO succession and emergency plans, emphasizing the need for improvement in this area, especially when leading complex organizations like senior living communities.

Emergency Leadership Transition Plan [2:08]
Jennifer shares a real-life example of an organization facing turmoil due to an unexpected CEO departure, stressing the importance of an emergency plan. She outlines four key areas to consider in an emergency transition: communications, financial oversight, interim management, and executive search.

Financial Oversight and Communication Plan [5:55]
Jennifer elaborates on the importance of maintaining financial oversight during a CEO transition, including working with financial advisors and securing financial accounts. She also emphasizes the need for internal and external communication plans to keep stakeholders informed during the transition.

Executive Search vs. Internal Talent [7:21]
Jennifer discusses the importance of engaging a search firm to select the next CEO and reviewing the job description to ensure it aligns with the organization's needs. She also highlights the significance of evaluating potential internal candidates and considering restructuring or partnership opportunities.

Evaluation Process and Succession Planning [9:21]
Jennifer emphasizes the need for regular CEO performance evaluations and the importance of having up-to-date job descriptions. She discusses the potential challenges and considerations in identifying internal successors and preparing for unforeseen events.

Elements of an Up-to-Date Succession Plan [11:52]
Jennifer outlines the key components of a comprehensive succession plan, including measurable indicators for organizational performance, the hiring process for the new CEO, and options for managing executive transitions. She recommends establishing an ad-hoc succession planning committee of the board to oversee these processes.

Conclusion [12:31]
Jennifer encourages organizations to prioritize CEO succession planning and emergency transition planning, highlighting the benefits of being prepared for unexpected events. She emphasizes the rarity of organizations with comprehensive succession plans and encourages listeners to differentiate themselves by adopting proactive planning measures.

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About Our Host:
Jennifer Drago is an award-winning strategist, author, speaker and certified business coach. Through Peak to Profit consulting, she helps senior living, healthcare and nonprofit organizations get clear on their vision and strategy so they can identify -- and execute on -- opportunities for growth, revenue and operational efficiencies.

Jennifer worked as a strategy and operations executive in the healthcare and senior living industries for 30 years, facilitating strategic plans and developing new programs and service lines. She holds a bachelor’s degree in Finance, a master’s degree in Business Administration and a master’s degree in Health Services Administration from Arizona State University.

Visit www.seniorlivingvisionaries.com or our sponsor, www.peaktoprofit.com, to learn more!

You can also follow Jennifer on her LinkedIn.

About the Show:
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Categories: : Growth, Leadership, Mindset, Podcast, Strategy