Model Executive Succession Plan
Executive Transition Succession Plan: Unplanned Absence or Departure
August 2013
Prepared as a benefit to the
Prepared By
Jackie Eder-Van Hook, PhD
Transition Management Consulting, Inc.
Association
Community
202-244-3163
[email protected]
www.TransitionCEO.com
Copyright © 2012-2013. All rights reserved.
Important Notice about Using This Plan
This model succession plan is a sample plan created and provided by Transition Management
Consulting, Inc. for smaller organizations without complex governance structures as an adequate
starting point for their succession planning needs.
However, this is a generic plan. It does not take into consideration your association’s needs culture,
strategies, size, board leadership succession, people, politics, and other criteria, including readiness
to undertake succession planning. TMC is available to consultant with associations and nonprofits
about your organization’s specific needs and cover areas that exceed the scope envisioned by this
plan, namely unplanned absences or departures.
We have noted areas where you may want to customize your plan. Additional resources on executive
succession are available at http://www.transitionceo.com/article.php?id=12 and
http://www.transitionceo.com/article.php?id=8. Please let us know, if you find this information
useful or just share your experience with us at [email protected].
About TMC
TMC is a national consulting firm comprised of professional transition leaders, consultants, and
interim executives. TMC was founded to help associations and nonprofits deal more effectively with
the challenges caused by executive transitions.
Since its inception in 2001, TMC has conducted over 80 interim executive engagements as well as
numerous consulting assignments and executive searches. This gives TMC a unique perspective on
leadership succession and executive transitions. TMC’s success stems from the following:
Expertise
Focus on what we do best—leadership succession and organizational transitions
Knowledgeable Understand the leadership succession research and its practical application
Experience
Work conducted by our principals; use of technical experts, as necessary
Relational
Appreciate highly relational nature of associations—more than a transaction
Strategic
Energize stakeholders and create buy-in through succession planning process
Quality
Creating high quality outcomes that delight our clients
Insightful
Leverage the valuable insights gleaned from serving as transition leaders
TMC’s principal and president Jackie Eder-Van Hook, PhD works with our clients on succession planning.
She is a consultant, executive transition professional and former nonprofit executive with 20+ years of
experience working with associations, nonprofits, corporations, academia, and government. She has
researched, developed, and honed a succession planning process that helps association leaders proactively
address their leadership succession concerns and puts a plan into place for when a leadership succession
does occur – and they also occur it is just a matter of time.
Interim Executive Leadership | Executive Search | Succession & Transition Planning
202.244.3163 | Toll Free: 855.TEMP CEO (836.7236) | www.TransitionCEO.com
Association for Thinking Ahead, Inc.
Executive Transition Succession Plan:
Unplanned Absence or Departure
August 2013
Questions about this plan should be directed to Jackie Eder-Van Hook, PhD, Transition
Management Consulting, Inc. at [email protected] or 202-224-3163.
Executive Succession Contingency Plan:
Unplanned Absence or Departure
Table of Contents
I.
Purpose
II.
Plan Implementation
III.
Key Functions of the CEO to be Addressed
IV.
General Procedures for Unplanned Absences or Departures
V.
Procedures for Short-term Temporary Absences ( Less than 3 months)
VI.
Procedures for Long-Term Temporary Absences (More than 3 months)
VII.
Procedures for Permanent Departures
VIII. Communications Plan
IX.
Approvals and Maintenance
Appendix A - Summary of the CEO Position
Appendix B – List of Professional Interim Management Firms
Appendix C – Financial Accounts and Resolution of the Board
Appendix D – Executive Search Process
Appendix E –Analysis of an Executive Search
Appendix F – Search or Transition Committee Sample Charter
Appendix G – Executive Search Consultants
Appendix H - Sample Press Release
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6
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177
188
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267
Executive Succession Contingency Plan: Unplanned Absence or Departure
I.
Purpose
II.
The executive duties of the CEO are critical for the Association of Thinking Ahead (ATA) to the
Association’s operations and to fulfill its mission. Therefore, the ATA Board of Directors is
adopting these policies and procedures to ensure continuous coverage of essential CEO duties
in the event of an unplanned or extended absence of the CEO. The Board acknowledges that
such an absence is undesirable and unlikely, but it also believes that it has a fiduciary
obligation to have a plan in place to address contingencies related to an unplanned departure
of the ATA CEO.
Plan Implementation
Any notice of an unplanned absence or departure of the CEO shall be the catalyst for
implementation of this plan, whether for short- or long-term absence. The following
definitions shall apply:
•
•
•
•
•
•
A planned absence or departure is one that is expected and anticipated in advance.
An unplanned absence or departure is one that is sudden or unanticipated.
A short-term absence is one that lasts or is expected to last 3 months or less. [NOTE: This is
a decision point for the elected leadership.]
A long-term absence is one that lasts or is expected to last more than 3 months.
A temporary absence is one in which the CEO is expected to return to the position.
A permanent departure is one in which the CEO will not return to the position.
Planned
Temporary
Permanent
Short-term
(≤3 mos.)
Long-Term
(>3 mos.)
Vacation;
parental leave
or other healthrelated absence
Sabbatical or
other lengthy
leave, such as
bereavement,
family or
medical leave
Retirement
Unplanned
Temporary
Permanent
Illness or accident
resulting in physical
disability
Resignation with
notice of more
than 3 months
Long-term physical
disability or other
issue requiring
resolution
Resignation with
notice of less than
3 months; Death or
incapacitation
Jackie Eder-Van Hook, Transition Management Consulting, Inc. Copyright © 2008-2013
Page | 5
III.
While a short-term executive absence is defined as being less that 3 months, such an absence
can have significant effect on the organization depending on whether there are major
important events or activities planned or anticipated on the near horizon.
Key Functions of the CEO to be Addressed
Among the CEO’s duties listed in the attached position description (Appendix A), the following
are considered the essential functions of the CEO that must be addressed by an interim staffing
strategy:
[NOTE: Insert relevant information from your
organization.]
IV.
A. Hires, manages, compensates, and terminates
staff;
B. Ensures sound operational performance to accomplish established goals and objectives;
C. Ensures that all funds, physical assets, and other property of the corporation are
safeguarded and administered;
D. Keeps the Board informed of programs and activities consistent with the ATA strategic
plan and established objectives;
E. Executes contracts and commitments in accordance with Association Bylaws and policies
established by the ATA Board;
F. Serves as ex-officio, non-voting member of the ATA Board and serves as liaison to the
following committees: Bylaws, Finance, Government/Association Relations, Nominating,
Personnel, Planning, and Professionalism and Ethics;
G. Recommends a consolidated annual operating budget to the ATA Board;
H. Executes decisions of the ATA Board and its established committees in a timely manner,
and in accordance with Association Bylaws; and
I. Serves as CEO of the ATA Foundation Board.
General Procedures for Unplanned Absences or Departures
In the event of an unplanned absence or departure of the CEO, the President of the Board of
Directors is authorized to implement the terms of the following procedures [NOTE: Procedures
may be unique to each organization depending on the structure.]:
A. The CEO is responsible to notify the President of the Board of Directors of a unplanned
permanent departure whenever he is physically and mentally able to do so in accordance
the CEO’s contract with ATA. The President shall be responsible to notify the Board of
Directors.
B. If the CEO is unable due to injury or illness to notify the President of the Board of Directors
of an unplanned temporary absence or departure, the [key staff leader or leaders] shall
notify the President of the Board.
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C. The President of the Board of Directors shall assess the likely duration of the absence as
soon as possible.
V.
D. As soon as feasible following notification of an unplanned absence or departure, the
President shall convene the Executive Committee to affirm the procedures described in
this plan or to modify them, as needed.
Procedures for Short-term Temporary Absences ( Less than 3 months)
A. Staffing Strategy
i. The ATA Board of Directors authorizes the Executive Committee to appoint the [key
staff leader] as Acting CEO. [NOTE: Decisions about which staff person will perform
the Acting CEO duties should be made jointly with the elected leadership.]
ii. Should the [key staff leader] be unable or unwilling to assume the Acting CEO position,
the Executive Committee may appoint the [key staff leader] as Acting CEO.
iii. The ATA Executive Committee may consider engaging an outside professional interim
executive in the case of short-term, temporary absences. [NOTE: The option of
bringing in an outside interim executive should be discussed with elected leadership
during the construction of the plan.]
B. Role of Acting CEO
i. The Acting CEO shall report to the President of the Board of Directors.
ii. The Acting CEO shall have the full authority for day-to-day decision making and
independent action as the CEO.
iii. Because of the temporary nature of the position, major decisions – such as staff hiring
and termination, financial issues, public policy positions, external affiliations, or
program initiation or termination – shall be made consistent with established policies
and in consultation with the Executive Committee.
iv. The Acting CEO shall receive a temporary salary increase of at least fifty (50) percent
of her/his current annual salary for the duration of the appointment. [NOTE:
Compensation of the Acting CEO should be commensurate with the degree of
responsibility s/he is assuming.] Additional temporary salary increases for other
associates assuming new responsibilities shall be at the discretion of the Acting CEO.
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C. Communications
Within 48 hours after the Acting CEO is appointed, the President of the Board of Directors
and the Acting CEO shall meet to update and implement the communications plan outlined
in Section VIII.
D. Training Potential Appointees
VI.
The CEO shall conduct an on-going mentoring program including leadership and
management skills development relative to the role of the President, CEO for the two
potential appointees to the Acting CEO position identified in Paragraph A of this Section.
[NOTE: The CEO should prepare a written plan and update leadership annually on
progress.]
Procedures for Long-Term Temporary Absences (More than 3 months)
The procedures for addressing a long-term temporary absence shall be the same as for a shortterm absence with the following additions to the Staffing Strategy, above:
A. The Executive Committee shall consider engaging a professional interim executive from
outside the organization to fill the CEO position. [NOTE: Raising the understanding of the
elected leadership about the possibility of engaging a professional interim executive can help
them make the appropriate decision when necessary.] The following are some of the
considerations that might call for bringing in an outside interim executive:
i. When there is no one on staff who has the time or capability to lead the organization
for an extended period of time;
ii. When the executive absence is particularly emotional or when a cooling off period
might be beneficial;
iii. When the board could benefit from having an outside executive consultant assess
operational performance and suggest changes; or
iv. When the organization has a major event upcoming like an annual meeting, a data
system change, or an important legislative push that requires staff to attend to their
current responsibilities.
A list of potential professional interim executive resources is attached as Appendix B.
B. If the Executive Committee elects to use an internal Acting CEO, they may consider
engaging temporary staffing from outside the organization to backfill the position vacated by
the Acting CEO. This is in recognition of the fact that it may not be reasonable for the Acting
CEO to carry the duties of two positions simultaneously over an extended period of time.
C. The Executive Committee shall be particularly aware of the emotional impact of cause of
the long-term temporary absence on the ATA staff. The Executive Committee shall consider
whether to engage grief counselors or other forms of emotional support for the staff when
appropriate.
Page | 8
VII.
D. The Acting CEO and the Executive Committee shall develop a position description or
transition plan that identifies the priority goals the Acting CEO will work to accomplish.
Procedures for Permanent Departures
Permanent departures are those where it has been firmly determined that the CEO will not
be returning to the position. A permanent departure is one caused by the resignation,
incapacitation, or death of the CEO.
A. Interim Staffing Strategy for Permanent Departures
If the CEO resigns giving three months or more notice, the Association will likely have time to
organize itself to recruit a new executive. In this type of short-term permanent departure –
depending on the circumstances of the departure – the Executive Committee may consider
furloughing the CEO during the notice and bringing in a professional interim executive as
Interim CEO. This may be appropriate if the board wishes to: conduct an operational
assessment; conduct the executive search without the influence of the CEO; ensure that the
association will have a fully engaged CEO; and/or for whatever reason, give the association a
change in executive leadership during a difficult transition period.
If the CEO resigns with less than six months’ notice, is dismissed, or is suddenly and
tragically killed or incapacitated, the resulting departure will be deemed a long-term
permanent departure, in which case the Executive Committee shall implement the staffing
strategy in Section VI, A.
The ATA Board of Directors shall invest signatory authority on all financial accounts of the
Association (listed in Appendix ____ to the Interim CEO using a resolution similar to the
sample included in Appendix C.
B. Long-term Staffing Strategy for Permanent Departures
The current CEO is a visible and respected leader in the field of [association purpose].
Replacing a long-term association leader is difficult, at best, and many organizations fail in
their attempts to do so effectively.
Regardless of whether the departure is planned or unplanned, the association will likely
enter a difficult transition period. It will be important for ATA to be sensitive to the
turbulence that the transition may bring, especially if the CEO’s departure is unplanned.
In most instances, the ATA Board of Directors shall begin an executive search process for a
new CEO upon receiving notice of the departure of the CEO with three months or more
advance notice. However, the Board may choose either to move quickly to fill the position or
to delay the search, depending on the circumstances, such as timing with other Association
events or other unique situations.
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The President of the Board, in consultation with the Executive Committee, will review,
revise, and adopt a charter for a Search Committee similar to the one contained in Appendix
D. The President will appoint approximately 5-7 members to the Committee consistent with
the profile contained in the Committee charter.
An executive search is one of the most critical responsibilities of a board of directors. Its
importance of finding a CEO with the required skills and characteristics to fit the
Association’s strategic needs cannot be underestimated. The executive search process is
costly, lengthy and difficult, as described in Appendix D. The Search Committee shall, in most
instances, engage an executive search consultant to facilitate the process. [NOTE: It can be
helpful to have the conversation about the value of using an executive search consultant
before the need exists.] In making the decision to use or not use an executive search
consultant, the Search Committee shall refer to the table of considerations contained in
Appendix D.
VIII.
If the Search Committee determines that it is in the best interest of the Association to engage
an executive search firm, it shall begin by soliciting proposals from the executive search
firms in Appendix D. It is important that the Search Committee assess carefully the
processes proposed by search firms to ensure that it gets a process that has the highest
probability of success
Communications Plan
The purpose of a communications plans is effectively to manage the communications
through a formal, clearly defined channel in order to limit negative repercussions for the
Association or the sector and maintain a reputation of leadership and transparency on vital
issues and breaking news.
All issues related to the departure, incapacity or death of the executive director should be
reported to a board President or in his/her absence the vice President immediately. As soon
as possible the President in consultation with others should assess the situation.
Assessing the Situation
The President in conjunction with the executive committee shall assess the situation and
determine an appropriate course of action. Questions to ask to help guide an appropriate
response may include:
1. What is the situation? What will happen next?
2. What immediate steps need to be taken?
3. Who on staff needs to be involved?
4. What is known and who already knows it?
Page | 10
5. Is there potential public interest?
6. Who will be affected?
7. What are people feeling – what emotions need to be considered?
8. What information is needed? Who needs to receive the information? When will the
information be available?
9. What CAN and CAN’T be said? What are the organization’s privacy policies?
a. Who needs to be contacted? (See table below.) Is legal counsel or public affairs
consultant needed? If so, who are they?
b. Create plan of action for internal and external communications.
10. Develop factual, detailed messages that reflect the status of the situation, the
Association’s response, and, if possible, proactive steps to resolve or ameliorate the
situation.
11. Prepare talking points and provide a script for the receptionist receiving incoming calls.
12. Identify who needs to be contacted, e.g., Funders, key stakeholders, partners, allies,
members
13. Determine what methods of communication are appropriate for each audience, and who
should make the contact. Assess what resources are necessary to manage the crisis, e.g.,
cell phones, phone bank, press conference (location, signs, lectern, visual aide, projector)
14. Appoint individuals to serve as
a. Chief spokesperson (most likely the President, depending on the situation.)
b. Board Liaison
c. Coordinator the response (most likely, director of communications.)
15. What is the sense of urgency for communicating the message? What is the appropriate
response or action?
16. How will the message be communicated? (See table below.)
Page | 11
Board of Directors
Staff
Committee Chairs
Key Leaders
Members
Funders
Key Stakeholders
Legislators
Legal Counsel
Director & Officer
Insurance Carrier
General Public
COMMUNICATING WITH DIFFERENT AUDIENCES
Low Urgency
High Urgency
Blast email
Telephone Tree, convene emergency meeting
Email
Telephone call or in person meeting
Email
Telephone call or in person meeting
Email
Telephone call or in person meeting
Newsletter, website
Blast email or fax
Telephone calls
In person meeting
Telephone calls
In person meeting
Telephone calls
In person meeting
Email or Telephone call
Telephone call
Based on the recommendation of Based on the recommendation of legal counsel.
legal counsel.
Press release if of broad appeal
Based on the recommendation of legal or public
relations counsel. Consider news conference if
urgent, critical, and of high broad appeal
Guiding Principles of Communications
The association recognizes the importance of clear, honest communications with its
members, the media, and community members. Allaying fears or anxieties is especially
important during a time of uncertainty or transition. All information conveyed should be
guided by professionalism and transparency and serve to mitigate the situation or crisis,
while insuring the privacy of the executive director and his/her family and the reputation of
association, its members, and funders.
It is critically important that the organization construct a “message” for volunteer leaders
and staff to use in routine communications with others. Only the authorized spokesperson
or his or her designee is speak to or is authorized to release information to the membership,
media, or public. All other staff, board and committee members should use the “message” or
refer or connect those with questions to the authorized spokespeople and not speak to or
provide any information.
If an answer to a question is not known, or cannot be immediately answered, make note of
the question, tell the inquirer you will get back with him/her, and do so. If the question
cannot be answered, due to an association policy, such as not sharing personnel information,
let the inquirer know, e.g., “It is the association’s policy to keep are personnel matters
confidential.” "No comment" is not an acceptable response.
When possible, responses should be proactive, responsive, and action-oriented. Endeavor to
allay any concerns that the member or community might have about the situation.
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IX.
Approvals and Maintenance
The ATA Board of Directors shall approve the Executive Transition Plan for an Unplanned
Absence or Departure. The plan shall be signed by the Board President and the CEO, as well
as other appointees designated in this plan.
The plan shall be reviewed and updated by staff and approved by the Executive Committee
annually in _____ [INSERT DATE] of each year.
Copies of the plan shall be maintained by the Board President, the CEO, the appointees
designated in this plan, and ATA’s corporate counsel.
Signatures:
______________________________
ATA Board President
______________________________
CEO
______________________________
[Key staff leader or leaders who may be engaged as short-term interim CEO]
[NOTE: This depends on whether your strategy is to share this information or not.]
Approved by the ATA Board of Directors ______________ [date].
Reviewed and revised _________________[date].
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Appendix A - Summary of the CEO Position
[NOTE: This may not be necessary, depending on the contents of the job description.]
CEO—Position Summary
The ATA Board shall employ a CEO to manage the Association’s programs and business. He/she shall
have complete authority in the implementation of ATA Board policies and the interpretation of those
policies to ATA personnel.
The ATA CEO shall also fulfill these same responsibilities for, and as ATA CEO of, the ATA
Foundation.
The ATA CEO shall serve as an ex officio, non-voting member of the ATA Board, the ATA Foundation
Board, and all ATA committees.
The ATA CEO shall have a continuing term of office until resignation or termination by the ATA
Board.
Dates
– Original contract date for CEO
– Amended [date] effective [date]
References
– Article [number], ATA Bylaws, as amended in [date]
– Board Policy Manual, [date]
– President's Employment Agreement
Cross-references
– [Other relevant policy documents]
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Appendix A - Summary of the CEO Position (Continued)
CEO—Qualifications and Duties
Job goal:
To direct the Association in accordance with the long-range plans and policies adopted
by the ATA Board
Reports to:
Chair, ATA Board
Supervises:
All ATA staff and consultants
Qualifications:
An advanced degree, MBA, or equivalent experience; excellent skills in verbal and
written communication, interpersonal and human relations, policy formulation, and
operations analysis; 5-7 years of progressive senior association management experience
Specific Tasks:
•
•
•
•
Ensures that the ATA Board is kept informed of the conditions of the Association’s programs and
activities, and all of the important factors that influence them
Ensures that the ATA
Board is properly
represented to members,
Associates and other
constituency groups
Executes the decisions of
the ATA Board and
its established
committees in a
timely manner, and in accordance with Association Bylaws
With the ATA President, determines and recommends for ATA Board approval the objectives of
the Association; ensures that ATA’s operating divisions establish objectives that support the
Association’s objectives
Performance evaluation:
Annual review by ATA Board, based on achievement of established goals
Terms of employment:
Permanent, full-time
References
– Board Policy Manual
– ATA Job Descriptions
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CEO—Emergency Powers
The ATA Board understands that emergencies may arise during the course of daily oversight of
Association business and that they may require executive action in the absence of established
ATA Board policy. In such emergencies, the ATA Board delegates to the ATA CEO, in
consultation with the ATA President, the authority to act in the Association’s best interests.
The ATA CEO shall bring the matter to the full ATA Board’s attention at its next regular meeting
or before, as the situation warrants. At that time, the ATA CEO shall also present a proposed
policy that embraces the key principles he/she followed to resolve the issues involved.
The ATA CEO shall establish a clear line of administrative succession that designates
responsibility and authority should he/she be unavailable for one reason or another in the event of
an emergency. This responsibility and authority shall be temporary.
Page | 16
Appendix B – List of Professional Interim Management Firms
Professional Interim Management Firms
The following firms offer professional interim executive management services to associations:
[FOR EXAMPLE; CREATE YOUR OWN LIST OF POSSIBLE INTERIMS.]
Transition Management Consulting, Inc.
Jackie Eder-Van Hook, PhD
Robert T. Van Hook, FASAE, CAE
Toll Free: 855-TEMP CEO (855-836-7236)
Phone: 202-244-3163
[email protected]
[email protected]
www.TransitionCEO.com
NOTE: Additional formation about selecting an interim executive is available at:
http://www.transitionceo.com/article.php?id=4, http://www.transitionceo.com/article.php?id=2,
http://www.transitionceo.com/article.php?id=10.]
Page | 17
Appendix C – Financial Accounts and Resolution of the Board
Financial Account Listing
Bank Accounts
Investment Accounts
Retirement Accounts
Other Financial Accounts Requiring Signatures or Secure Access
Page | 18
Appendix C –Financial Accounts and Resolution of the Board (Continued)
Association for Thinking Ahead, Inc.
RESOLUTION OF THE BOARD OF DIRECTORS
Whereas, CEO is currently a signatory on all bank accounts and investment accounts held in the
name of the Association for Thinking Ahead (ATA); and
Whereas, effective ___________, [Name] is no longer serves as CEO of ATA; and
Whereas, effective _________, ________________ is serving in the capacity of Interim CEO for ATA; and
Be it therefore resolved, that; [Name] be removed as a signatory on all said accounts effective
immediately; and
Be it further resolved, that ______________________, Interim CEO, be duly authorized as a signatory on all
said accounts effective immediately.
CERTIFICATION:
This resolution was adopted at a special meeting on this date of the Board of Directors of the
Association for Thinking Ahead.
________________________________
Secretary
__________________
Date
Page | 19
Appendix D – Executive Search Process
Executive Search Process
1. Search committee
a. Establish search committee charter (see Appendix G)
b. Select search committee chair and committee members
2. Create list of pros and cons of using a professional executive search leader vs. an in-house search
(See Appendix E)
3. Send request for proposal to search firms requesting the following
a. Description of services and approach
b. Pricing
c. Guarantees, if any
d. References of three recent executive search clients
e. Bio of the person to be responsible for the search and a description of their workload and
that person’s capacity to do the search
f. Firm’s background relating to nonprofit executive recruiting in the local association
market
g. A description of why their firm would be a good fit for ATA
4. Executive search firm develops organizational profile and position description
5. Search firm creates a sourcing plan for soliciting candidates for the position
a. Advertising (Create budget, create ads, determine publication deadlines)
b. Community outreach/networking strategy (Message, list creation, follow-up)
c. Develop text and post on website
6. Recruit candidates from contacts
7. Screen candidates
a. Screen applicants against position description and organizational profile
b. Search firm performs initial telephone interviews with high potential applicants to assess
qualifications and cultural fit.
8. Prepare documentation for candidates and search committee members
a. Locate documents
b. Prepare questions
c. Update or create employment contract
9. Make facility arrangements, e.g., meals, equipment, supplies
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10. Create agenda and schedule candidates
11. Make travel arrangements for search committee members and out of town candidates, e.g.,
lodging, transportation
12. Seek legal advice on compensation and benefits package
a. Review comparable salary data
b. Determine relocation stipend, if any
13. Interview candidates
a. Hold first interviews with search committee
b. Make selections of 2-3 finalist candidates
c. Select finalist
14. Conduct references and present finalist candidates
a. Create reference check script
b. Contact references
c. Summarize references
d. Ensure compliance with all applicable federal, state and local laws and regulations and
legal precedents
e. Background checks
i. Establish a background check policy
ii. Identify and contract with background firm
iii. Determine costs
iv. Select types of background checks to be ordered
15. Interview finalist candidates
a. Review qualifications
b. Make selection of finalist
c. Arrange appropriate meetings, e.g., staff, as necessary
16. Select and negotiate with successful candidate
a. Start date
b. Performance objectives
c. Bonus/Incentive payments
17. Create on-boarding and orientation plan. [Note: Information about onboarding your next
executive is available at http://www.transitionceo.com/article.php?id=29.]
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Appendix E –Analysis of an Executive Search
Association-Led Executive Search
Pros
•
•
•
Knows industry players
More direct control of the process
Fewer upfront costs
Executive Search Firm-Led Search
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Cons
•
•
•
•
•
•
•
•
Administrative burden of the
conducting the search internally, e.g.,
collecting, managing, distributing
resumes
Lack of sufficient experience in
recruiting nonprofit leaders
Internal bias
High cost of a failed search, no
guarantee
Provides a distinct advantage or
disadvantage to internal candidates
References may be less inclined to
provide information to industry insider
Time intensive
Lack of cultural awareness
•
•
•
•
•
•
Qualified, experienced, objective third
party
Contacts in the association community
Reduces overall costs by mitigating the
risk of a bad hire
Knowledge of federal, state laws and
regulations, e.g., EEOC, FCRA
Lends credibility to the process
Helps ensure candidate confidentiality
Better process
Knowledge of comparable salary and
benefit
Maintains search related files
Shared liability
Guarantees, usually up to one-year
Time tested processes
Access to broader pool of applicants
Ability to narrow the applicant pool
without impinging upon the reputation
of the organization or candidate
Ability to assess both internal and
external candidates
Professional reference checking
Behavioral questions
Can be costly
Person who sells the search services
may not do the work
May put up a candidate for more than
one job posting
A firm may block a candidate from
being considered in more than one
search
Source: Transition Management Consulting, Inc. Copyright © 2010-2013. All Rights Reserved.
Page | 22
Appendix F – Search or Transition Committee Sample Charter
PURPOSE: This Charter establishes the Search Committee and specifies its tasks, roles,
responsibilities, and authorities and relationship to the association’s governing body. The Committee
is tasked by the Board of Directors with oversight and guidance of the executive search process,
which may include the following:
RESPONSIBILITIES:
Responsibilities of the Executive Committee of the Board of Directors
• Affirms the selection of the Search Committee Chair and its members;
• Establishes a compensation plan;
• Approves a compensation plan consistent with the needs of the organization and in alignment
with compensation trends;
• Establishes short- and long-term performance objectives with incoming President;
• Establishes an onboarding plan for the new executive;
• Creates a process for an initial 90-day and annual performance review;
• Creates a protocol for annual salary review;
• Reviews information presented, e.g., reference and background information;
• Considers the recommendations of the Search Committee on whether to offer an employment
contract and possible content;
• Works with an attorney to finalize employment contract, if applicable; and,
• Secures a resolution of the Board of Directors to delegate the responsibilities envisioned
herein, as necessary.
Responsibilities of the Board of Directors
• Provides a resolution of the Board of Directors to delegate the responsibilities envisioned
herein to the Executive Committee or its designee;
• Approves policies as necessary, e.g., background policy, record retention policy; and,
• Ratifies or affirms the final candidate.
Responsibilities of Search Committee Chair (usually the Board of Directors’ Chair/Chair-Elect)
• Provides leadership to the Search Committee;
• Provides advice to the Chair;
• Convenes meetings in conjunction with the Search Consultant; and,
• Serves as the primary contact between the Search Committee, Board of Directors, and Search
Consultant.
Transition Management Consulting, Inc. Copyright © 2011-2013. All Rights Reserved.
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Responsibilities of the Search Committee
• Contributes to creating a job description, position announcement, and organizational profile;
• Contributes to creating a Source Plan for ad placement and press release;
• Conducts initial in-person interviews of candidates pre-screened by Search Consultant;
• Directs the collecting of information through references, and background checks;
• Presents the final candidate to the Board of Directors for final affirmation;
• Supports the decisions of the Search Committee and accepts the decision of the Board; and,
• Recommends a compensation package and employment contract to the Executive Committee.
COMPOSITION: The Chair of the Search Committee shall be appointed by the Chair of the Board
of Directors. The Committee shall be comprised of individuals who:
• Have the time to attend and be fully engaged in the process;
• Are interested in the process and outcome;
• Are fair and open to the qualifications of all candidates;
• Are honest and forthright in the deliberations;
• Are not a candidate for the position or a future or past employee of the candidate;
• Declares all real or potential conflicts as soon as the conflict is realized;
• Respects the need for confidentiality and privacy;
• Signs a Confidentiality Agreement;
• Adheres to the established process; and,
• Accepts the final decision of the Board of Directors.
Ideally, committee members will reflect a diverse cross-section of the Association and selected in
consultation with the Search Consultant. The Acting President/Interim President, if appointed, will
serve as an ex officio, non-voting member of the search committee. Staff will not be member of the
Search Committee.
REPORTING RESPONSIBILITY: The Search Committee reports to the Chair of the Board of
Directors.
STAFFING: Activities are undertaken in consultation with the Search Consultant, who staffs the
committee.
TIMING: Members of the Search Committee are expected to attend all in person and telephonic
committee meetings (2-3 days), first interviews, including time spent at meals and on travel (2-2½
days). Additionally, members are expected to respond to requests for input and review documents
within the specified time and communicate with the Search Consultant, if for some reasons it is not
possible to do so. The Search Consultant will make every attempt to maximize input and minimize the
time required for the process.
APPROVED ON BEHALF OF THE BOARD OF DIRECTORS
By: ____________________________________ Title: ________________ Date:____________
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Appendix G – Executive Search Consultants
Executive Search Consultants – Sample List
A list of executive search consultants who specialize in national association and nonprofit
placements with a specific expertise in the associations in the local market. In listing potential firms,
the association should take care to list companies that might seem to be a better cultural fit with the
association.
[NOTE: Create your own recruiter list, based on your industry, location, and needs. See
http://www.asaecenter.org/career/content.cfm?itemnumber=15972]
Paul Belford
JDG Associates
1700 Research Boulevard
Rockville, MD 20850
301-340-2210
[email protected]
Pamela Kaul
Association Strategies
1111 North Fairfax Street
Jackie Eder-Van Hook, PhD
Transition Management Consulting, Inc.
202-244-3163 Office
202-285-4316 Cell
[email protected]
www.TransitionCEO.com
Leonard Pfeiffer IV
Leonard Pfeiffer & Company
1319 F Street, N.W., Suite 800
Washington, DC 20004-1140
202-737-6327
[email protected]
Bob Corlett
Staffing Advisors
1900 Rose Theatre Circle
Olney, MD 20832
888-884-0573
[email protected]
Jane Gruenebaum
Isaacson, Miller
1875 Connecticut Avenue NW, #710
Washington, DC 20009
202-216-2271
[email protected]
Alexandria, VA 22314-1436
703-683-0580
[email protected]
David Martin
Sterling Martin Associates
1025 Connecticut Avenue, NW #1000
Washington, DC 20036
202-327-5485
[email protected]
Mary Ann Tuft
Tuft & Associates
1209 North Astor St
Chicago, IL 60610-2655
312-642-8889
[email protected]
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Appendix H - Sample Press Release
FOR IMMEDIATE RELEASE
Date, 20XX
CONTACT: Name
Title
Phone
Email
Capitalize Every Word in the Headline Except for Prepositions and Articles of Three Words or
Less; No More Than 170 Characters; Does Not Take a Period
If sending to news/media outlets, you may want to use a summary (or abstract) paragraph, that is, a
synopsis of the press release in regular sentence form. It doesn’t repeat the headline or opening
paragraph. It just tells the story in a different way.
[Location] -- The first or lead paragraph contains the most important information. State what has happened
to the executive director and provide reassure to your readers, e.g., members, stakeholders, vendors, and
others. The lead paragraph should stand on its own, e.g., ATA CEO [name[ announced his/her retirement
after XX years of services to the Association of Thinking Ahead. [name] will depart in MONTH, 20XX;
or it is with great sadness that we announce the departure, illness, disability, accident, or death of CEO
[Name].
A press release, like a news story, keeps sentences and paragraphs short, about three or four lines per
paragraph. The first one to three paragraphs covers the who, what, when, where, why and how questions.
The rest of the news release expounds on the information provided in the lead paragraph. “You should
include a quote from the current or past board President for a human touch,” said ATA’s President, FirstLast Name, Title, Organization. "And you should use the last paragraph to restate and summarize the key
points." It contains more details about the news you have to tell. If you want to offer the readers an
opportunity to take a specific action, add it here, e.g., in lieu of flowers, please ____________.
State who is in charge during the transition, who will address any questions that might arise, and specify
next steps, e.g., In accordance with ATA’s succession policy and plan, adopted in 20XX, the Board has
established a transition team to effect a smooth and effective transition. The Search or Transition
Committee includes, Name1, Name2, etc.
In the interim, NAME will serve as Acting CEO/Interim CEO. Describe acting/interim executive.
About the Association for Thinking Ahead: [BRIEF DESCRIPTION OF ORGANIZATION].
###
Association for Thinking Ahead
[Contact info]
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