Ready or Not, You likely have a leadership transition …...Ready or Not, You likely have a leadership transition in your future. Dennis Russell, President and CEO MHS Consulting Goals

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1A faith-centered approach to addressing organizational needs

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Ready or Not, You likely have a leadership transition in your future.

Dennis Russell, President and CEO

MHS Consulting

Goals

Workshop Objectives

� To inform and educate board members and executive leaders about the executive transition process

� Identify strategies and processes needed to prepare for both an unplanned and planned transitions in advance

� To increase your awareness of your roles and responsibilities as board members and organizational leaders

� Provide resources for participants to take back to their respective organizations to help prepare for executive transition

� Discuss the plusses and minuses of using consultants or search firms vs. in-house managed process


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Outline - Topics to be Discussed

1. Organizational Readiness

2. Communication Plan

3. Executive Search Process

4. Use of an Interim/Acting CEO

5. Content List - Candidate Information Packet

6. Sample Board Survey

7. Executive Transition Consultant, Search Firm, or In-house

8. Role of the Incumbent in the Search Process

9. Role of Residents and Staff in the Process


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Board Response to Triggering Event


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Organizational ReadinessBoard’s Role

Proactive Planning

� Board Chair/CEO communication

� Use of Contract Language

� Short/Long Term Succession Plan

� Internal Development of Future Leaders

� Current and Relevant Strategic Plan & Job Description

� Ensuring Competitive Compensation Packages

� Annual Evaluations of Senior Management

� High Functioning Board


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Organizational ReadinessCEO Role

� Contract Language and Commitment

� Clearly Defined Roles – Board, Residents, Staff

� Frequent Communication with Chair Re:

Professional Trajectory Goals

Expectations: Work/Life Balance

Human and Financial Resources

Compensation

� Hire & Develop Internal Talent

� Provide Education and Development for Board

� Avoid Creating Single Leader Dependent Culture

� Provide Adequate Notice


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Organizational Readiness cont.Documents and Organizational Description

“View your organization through the eyes of a potential candidate. Website/Candidate Packet”

Strategic Plan

Marketing Plan/Materials

Description of Wait List

YTD Financials vs. Budget

Last 3 years Audited Financials

Census Trends

5-Year Capital Budget

Long-term Cash Flow Projections

Description of Corp Compliance

Description of Agency Usage

Payer mix by revenue

Benevolent Care

Social Accountability Report

Client/ Staff Satisfaction Surveys

Annual Report

Budgeting Process

Wage Matrix, Hourly and Exempt

Bios of Senior Management Team

Board Composition and Bios

Board Orientation Process


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Communication Plan

� Create Specific/Detailed Content (Script), means of communication including board members, senior staff and incumbent

� ID Stakeholders and Order of Announcement

� Create Timeline – Internal and External

� Means of Communication

� Use Outside Resources as Appropriate

� Determine Point Person for Inquiries

� Communicate Plan with Full Board Prior to Implementation


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Why Consider an Interim?

� The CEO’s departure timeline does not allow adequate time to conduct a search

� The search process has not identified a preferred candidate and more time is needed

� The organization may benefit from a period of transitional leadership

- Leadership change as a result of a

traumatic cause or difficult situation

(need time to process or grieve)� OR


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Following a long-term, well liked leader (Super Hero or Saint)


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Significant operational changes are needed to helpposition organization for permanent CEO


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Board needs time to prepare long-range vision to determine skill sets needed to achieve desired vision


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When the Ideal Candidate Profile Creates a Very Limited Pool with Unusual & Specific Skills


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Elements of an Interim Job Description

Interim CEO Position

Reports to: Chair of the Board of Directors

Duration: the interim position is expected to be required for 3 to 6

months. Longer Term if significant operational changes are needed.

General Responsibilities:

� Assure and maintain normalcy of operations until the permanent

President and CEO can be appointed by the Board;

� Works closely with the Board and key staff to keep CCRC running smoothly.

� Assists in presenting the CCRC as stable and operating with

confidence, “business as usual” to staff, residents, prospective

residents and community at large; or

� Can have specific operational change directives to position organization for long-term CEO (normally “acting CEO” duties)


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Interim CEO Duties

Duties:

� Understands and manages the day to day requirements of the overall operations of the CCRC

� Manages expenses, occupancy, revenues to budget

� Insures optimum financial performance of the organization during the interim period

� Meets and communicates regularly with Department Heads (leadership team)

� Resolve problems, tracks budget and operating plan performance.

� Meets and communicates regularly with Residents and Resident leadership


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Interim CEO Duties continued

� Answers questions, provides reassurance, resolves issues offers updates.

� Meets/communicates regularly with Board Chair.

� Keeps Board apprised, at all times, of work progress and any issues that may arise.

� Assists Search Committee by assembling information, making scheduling arrangements, support the search process.

� Assures compliance with regulations and financial covenants; meets with regulators and financing representatives as may be required.

� Schedules, leads the preparation and presentation of routine materials for Board meetings.


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Interim CEO - Profile

Requirements:

� Positive, upbeat, “can-do” attitude is essential

� A familiarity with the campus is helpful

� Calming presence

� Respected and trusted by residents and staff

� Interactive, relationship manager, “a Big E”

� A “non-candidate” for the permanent position is preferred

Note: Can have both a positive or negative impact on the resume of the Interim.


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Orientation and Overlap

� The Orientation Plan content – should include an operational and financial overview, the annual work of the Board, and other key organizational issues and hot topics.

� The incoming CEO needs to have an orientation plan that is “owned” by someone in the community such as the Assistant to the CEO.

� Consider bringing the incoming CEO to the campus for visits – attend a Board meeting, a Resident meeting or for other relationship introductions.

� Consider the value of overlap versus an orientation plan with the incoming CEO prior to the outgoing CEO departure.


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Creating a Relationship Map

� How does the outgoing CEO start to step back and ready the organization for handoff?

� How does that stepping back work with important relationships?

� How does the outgoing CEO or Board identify the key relationships (formal and informal) for the incoming CEO?

� Who should be assigned to serve as liaison to maintain relationships during the transition period?

� Who assures the incoming CEO has an orientation plan for the important key relationships and how does that get implemented and prioritized?


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Building Relationships

� Residents and Staff

� Senior Leadership Team

� Board of Directors

� Key constituents, stakeholders, others from relationship map

� Take time to seek feedback from the community – ask questions to frame a sense of the community culture and their concerns, fears and hopes for the future.

� Listen, listen, and listen


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Leaving Well – Finishing Strong

� Lame Duck – do not shift into neutral

� Establish a transition plan – effectively manage

� Strategic Direction

� Communication

� Consider what needs to be completed? Are you leaving a problem or potential dilemma for the future?

� Consider the legacy you are leaving – years of positive tenure can be misconstrued or turned negative depending on what is left for the new CEO and the organization


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Lessons Learned

� Relationships

� Listening

� Building a reservoir of goodwill

� Maintaining personal balance

� Building the senior team

� Assessing the institution – crisis prep, other

� Modeling honesty and openness

� Moving too quickly


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Additional Resourses

Presidential Transitions, It’s Not Just the Position, It’s the Transition

By: Patrick H. Sanaghan, Larry

Goldstein, and Kathleen D. Gaval

“Managing Transitions” by: William Bridges


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Additional Resources

MHS Consulting Support and Services

� Operational Readiness Consulting/Tools

� Advisory Support to CEO/Board Leadership Development

� Executive Search Committee Consultation

� Interim Executives

� National/Regional Search Process

� Process Design - Values & Mission Congruence


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Dennis Russell

MHS Consulting

503-539-0921 cell

[email protected]


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Notes

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