Executives Transition Management and Succession Planning of Non-profit Organizations - Coursework Example

Running head: NONPROFIT MANAGEMENT Introduction According to Tom Adams, promise for non-profit sector leadership is depicted by two major practices that include Executives Transition Management (ETM) and Succession Planning. ETM entails the process of creating a strong relationship among the primary customer, leadership and strategies (Adams, 2009). Traditionally, organizations embarked on undertaking important roles through hiring of executive firms. However, through ETM firms have emulated business models, strategies and essential transition issues that define the path to achieving competencies within an organization. Starting from planning for the departure of an executive to entry of a new leader, ETM encompasses three phases that includes Prepare, Pivot as well as Thrive. On the other hand Succession Planning entails the practice of preparing an organization for a leadership change regardless of whether it is planned or unplanned. One of the major aspect that makes Succession Planning an effective strategy is that it entails developing board succession policy that are essential in providing tactics of enhancing leadership. In addition, as companies emulate the culture of succession planning, they create an important base through which firm initiates talent development and leadership development. As stipulated by Tom Adams, nonprofits organizations highly value improving leadership through talent management are leadership management. Executives Transition Management Executives Transition Management in the article by Tom Adams is depicted in one of the food banks in the Midwest. Having being under the leadership of a female CEO whose performance was remarkable; the food bank experienced an expansive growth. When the CEO decided to retire, the board was very worried since they saw high chances of failure. However, through the guidance of the board chairman, the organization sought the help of a local banker who was exposed to ETM (Adams, 2009). This also entailed hiring of an ETM consultant and the formation of a Transition Committee to oversee the implementation of ETM policy. In this regard, the board of directors hired a new executive who was aimed at enhancing the activities of the food bank in its endeavor to fight hunger. As a result of the adoption of the ETM, the organization experienced various benefits. First, it helped in the exit of the founder and the hiring of new executives. In this way, the continuity of the organization activities was achieved. Secondly, it gave the firm an opportunity to re-examine its primary customers thus adding value on its services as well as expansion of its impact. Thirdly, it prepared the organization for the new leadership. Fourthly, it allowed the firm to recruit a new executive who had the talent to succeed and knows the major challenges on her duties. Fifthly, it ensured effective check-ins and support measures that ensured proper settling of communication obstacles. According to Tebbe (2008) ETM addresses various aspects that include sustained success, underperforming companies, turnaround, first hire as well as hard-to-follow executives. Succession Planning According to Tom Adams article, the implications of Succession Planning are portrayed by a community development executive who embarks on building a leadership team and provision of affordable housing in the Southwest. In his plan to hire a new executive after his tenure of 15 years, he left the board and the management team to function in his absence. This was followed by attending a workshop for three years together with other members of the board. After the workshop, the board and the executives came up with an emergency back up plan that resulted to the adoption of succession policy within the organization. In addition, to accepting the extension of his tenure, the CEO and the other management staff came up with emergency back up for their positions. This article discusses major benefits of succession planning. First, it creates readiness of nonprofits organizations during the time of leadership transition. In this way, the services of the organizations are not disrupted and value for customers is not jeopardized. Secondly, Succession Planning ensures that management has a good picture of the competencies possessed by their leaders. Thirdly, it ensures managers are retained and acts as a motivation to the leaders since the policy gives them an opportunity to develop themselves. Fourthly, it results into internal succession and promotion thus reducing the costs of hiring new executives and other managerial posts. Fifthly, succession planning helps the organizations to have a better understanding of what is meant by diversity, leadership and inclusiveness within their working environment. Talent management, a key aspect adopted by Succession Planning generates three shifts that include use of 360-degree tool of evaluation, creation of culturally competent managers and performance management system that makes the managers to be accountable for the behaviors within their firms. Tom stipulates that during a succession planning, majority of the boards do not give a specific date of departure. Instead they make it an internal affair until they are certain that the executive is departing. In the same way, Succession Planning advocates for organizational assessment and sustainability review to identify the strengths of their leaders. The review is normally undertaken through consultations, surveys, interviews and focus groups with other employees. One of the major characteristic of Hesselbein as a leader is to engage all the stakeholders within her organization in all essential issues. According to her, the first major responsibility of an effective leader is to define the reality. In addition, good managers should be focused at changing the lives of the community and not necessarily to increase corporate profits (Collins, 2005). This is achieved by ensuring that leaders are value-based and mission focused. Hesselbein argues that leaders in the social sector can have implications on the way private sector leaders undertake their responsibilities. Given her desire to depart the organization, Girls Scouts would have to undertake a Succession Planning that will ensure the continuity of the organization performance. One of the key strategy would involve developing a written succession policy that the management team will use as a road map to handle the executive departure (Tebbe, 2008). Additionally, the Girls Scouts would explore on the ways of adopting internal succession that would entail promoting of one of the board members who has similar vision like those possessed by Hesselbein. References Adams, T. (2009). Building leaderful organizations: Promising practices that add value and increase nonprofit effectiveness. International Leadership Journal, March 2009, 81. Collins, J. (2005).Good to great. New York: Harper Collins. Tebbe, D. (2008).Chief executives transitions: How to hire and support a nonprofit CED. Washington, DC: Board Source. Read More