Issue 51
September 20, 2006

NEWSNOTES is a monthly email newsletter published by NEW. It covers resources available at NEW in Ann Arbor as well as items of interest to the nonprofit community in southeastern Michigan. NEWSNOTES is proud to celebrate its fifth year of publication, with delivery to over 820 subscribers every month! We welcome your feedback and suggestions!

NEW would like to recognize the generous support of its Community Partners:

IN THIS ISSUE

LEAD STORY

Getting Your Ducks in a Row:
Succession Planning is a Key Part of Strategic Planning*

Almost three-fourths of all executives in nonprofits will be reaching retirement age during the next two decades, according to a survey commissioned by the Annie E. Casey Foundation in Baltimore

How would your nonprofit fare if your executive director were to retire tomorrow? If you haven’t developed a succession plan, your organization could be thrown into operational chaos and experience a financial downturn.

Planning for leadership transition must be approached as a strategic process, whether it’s to fill an immediate need or as a part of long-term planning. Although some organizations may view the replacement of key management personnel as a “search and hire” function, every organization will benefit from identifying and promoting their current talent.

Identify and develop leaders from within

Make it a priority to develop ways to mentor young leaders and promote managerial talent from inside your organization. After all, these are the individuals who already have a passion for your not-for-profit’s mission and understand the workings of the organization.

Your board should nurture the current executive director’s ability to lead and give him or her sufficient support to provide staff members with continued growth and learning opportunities. In turn, your executive director should collaborate with the board to design a succession plan for all key staff that ensures the training and development of future leaders and managers.

For example, working with the Human Resource or Personnel Committee, the executive director should identify key positions in your organization and then draft formal job descriptions, outlining the expected responsibilities and capabilities. Special note should be taken of individuals currently within the nonprofit who can gain the competencies and develop skills to help the organization accomplish its strategic goals. The involvement of the committee brings valuable insight and resources to this process.

Plan for the future

At a minimum, begin succession planning for critical positions within your organization at least three to five years before the first expected retirement date. Typically, the process is led by a transition committee made up primarily of board members, but it may also include other stakeholders, such as staff members, clients and donors.

When undertaken with the nonprofit’s growth in mind, succession planning presents an opportunity for you to move the organization forward and become more focused on its vision and mission as well as the issues and challenges it will face over the next decade and beyond.

As a first step, the transition committee should assess the organization’s strengths and weaknesses. This will give it the information needed to identify the individual who has the skills necessary to lead the organization in the proper direction. This assessment should include:

• An evaluation of how clients or customers rate the quality of service currently being provided
• The staff members’ level of productivity and satisfaction
• The value that the wider community places on the organization’s contribution

If your assessment shows that a communitywide goal, such as supporting families, is a part of your strategic goals but has not been actively pursued, finding a leader with experience in this area may be just what you need going forward.

Developing the process

A standing board committee, such as the Personnel or Human Resource Committee, should oversee the succession planning process and discuss the topic of transitions at least annually. Developing a written policy for executive transitions, both for the long term and in emergency situations, will help your organization ensure the focus stays on the nonprofit’s strategic goals, and operations will continue uninterrupted while the best replacement is found for the position.

Tips for a smooth transition
You’ve just learned your executive directory plans to retire in two years. What can you do to ensure a smooth transition? Put the following into action now:

• Document each upper management position’s key functions, roles and responsibilities in formal job descriptions.
• Appoint a special committee of the board to oversee the transition process.
• Designate an interim leader who can perform the director’s job or assign different backups for specific responsibilities.
• Whenever possible, the outgoing director should be available to consult and transfer knowledge for six to nine months once the new executive director is hired.
• Allow the board adequate time to select a candidate who will work well with the resources you have available.

Whether your new leader comes from outside the organization or within, don’t underestimate the obstacles he or she will face. If the transition isn’t handled properly, you may be dealing with another transition in a short period of time.

*This article is reprinted with permission from the newsletter Nonprofit Agendas, April/May 2006 published by KDV, Kern DeWenter Viere

Additional Resources:

• Executive Transitions Initiative of the Donor Forum of Wisconsin provides a comprehensive list of helpful resources including many pdfs to download. Scroll down to find an “Emergency Succession Plan” template and interim executive director job descriptions.
• Emergency succession planning guidelines from the Nonprofit Risk Management Institute.
• Guidelines for Hiring / Transitioning to a New Chief Executive from the Free Management Library.
• Filling the gap : the interim executive director solution—a manual for staff, board and consultants dealing with leadership transition in arts organizations, by Daniel Mayer is available from the Illinois Arts Alliance Foundation for $22. Though the pamphlet is written with arts organizations in mind, the substance is useful for any nonprofit.
  

FEATURED ITEMS

BoardConnect Trainings

BoardConnect helps nonprofits build their board leadership through training in board responsibilities and effective recruitment practices, and by teaching boards how to access a pool of trained candidates using convenient online tools. Learn how to tap into this pool of trained, interested and interesting candidates in one of two upcoming sessions of Building Your Board: Tuesday, September 26, from 9:00 a.m. to noon at Walsh College in Troy, or Tuesday, October 3, from 1:00 p.m. to 4:00 p.m. at the NEW Center in Ann Arbor.

If you are new to the world of nonprofit boards or are now on a board but feel you need to brush up on your governance skills, sign up for Achieving Excellence as a Nonprofit Board. This session will take place at the NEW Center in Ann Arbor on Wednesday, October 18, from noon to 3:00 p.m. with lunch served.

Register online or call 734-998-0160 for more information.

Nonprofit Facilities Center Orientation Session

Thursday, September 21, 9:30 a.m. - 11:30 a.m.
The United Way for Southeastern Michigan, 1212 Griswold St., Detroit

Executive level staff and board members of nonprofit organizations are encouraged to attend this free orientation session to learn about the initial steps to be taken when starting a facilities project. The Nonprofit Facilities Center can provide both technical and financial assistance to help develop your organization’s long-term growth needs.

Attendance is suggested for nonprofit organizations located in the Detroit Tri-County area that are either considering, or in the process of undertaking, a facilities project and/or seeking advice on management issues.

Presenters include:

• Nonprofit Facilities Center
• Michigan Nonprofit Association
• Nonprofit Finance Fund
• New Detroit
• Npower
• Community Legal Resources

They will provide information about their services to help nonprofits make sustainable facility and organizational decisions. While typical facilities projects may include renovating, expanding or building a space, other issues such as energy efficiency, legal and organizational planning, and advancements in Information technology are critical to a nonprofit’s success.

To register for this free orientation session; call La Shawn Thomas at the Nonprofit Facilities Center (313 226-9420).

Proposal Writing Seminars Offered

Tuesday and Wednesday, October 24 & 25, 8:30 a.m. – 4 p.m.
Ann Arbor, Michigan League, U-M Campus

Learn proposal writing fundamentals with The Foundation Center’s popular Proposal Writing Seminar on Tuesday, October 24. Get the grantmakers’ perspective on successful proposals, plus the latest techniques from experts in the field. You will receive a copy of The Foundation Center's Guide to Proposal Writing, 4th Edition (a $34.95 value).

Take your proposal writing skills to the next level with Proposal Writing Seminar II offered on Wednesday, October 25 and receive a copy of The Foundation Center's Guide to Proposal Writing, 4th Edition.

The Foundation Center’s interactive approach to learning encourages teambuilding through small group exercises and topical discussion. Learn the latest techniques to deal with the challenges that grantseekers and nonprofit managers face today. Classes are $195 each. Motivate and empower everyone on your team; save $25 for each additional person attending.

Register on the Foundation Center’s website. Call 800-424-9836 with questions.

Leadership Summit on Race

Sunday, Monday, Tuesday, October 8, 9, and 10
Detroit Marriott at the Renaissance Center

A Sunday night reception on October 8 will kick off a two-day meeting of leaders from business, labor, government, religious and community organizations in Southeastern Michigan. New Detroit is sponsoring the summit to foster debate and collaboration on specific measures to break down racial barriers and encourage economic and social revitalization in Southeastern Michigan.

Summit organizers have assembled an impressive panel of presenters. Learn more at the New Detroit website.

For more information or to register for the summit, contact Ophelia Twine-Henry (313-664-2044).

Junior League Requests Proposals

The Junior League of Ann Arbor (JLAA) has been supporting nonprofits in Washtenaw County for close to twenty years. They are encouraging community groups to apply to them for funding and/or volunteers for projects having an impact on

• children/youth
• education
• women’s health
• family issues

Visit their website for details about the three different types of support offered. Applications for the Impact Projects and Signature Projects are due October 16, 2006. The deadline for submitting Flexifund proposals is January 1, 2007.

Please contact the JLAA office (734-996-8818) if you have questions or wish to have an application sent to you by mail or email.

Raising More Money: Alumni Panel Event

Friday, October 27, 2006, 9 a.m. – noon
Washtenaw Community College Student Center, Garret’s Room
4800 E Huron River Drive, Ann Arbor (Map and Directions)

Raising More Money (RMM) is hosting a special introductory session and panel representing Southeast Michigan organizations that have successfully implemented the Raising More Money Model®. Presenter Terry Axelrod will begin with a brief overview of the model, a mission-based fundraising system that allows organizations to tap into the 84% of all charitable contributions that come from individuals. In the second half of the session, panelists will share their experiences and ongoing challenges as they implement this mission-based system for sustainable funding. Panelists will include:

• Dan Varner, Chief Executive Officer, Think Detroit PAL
• Cathy Mohan, Head of School, Japhet School
• Bob O’Brien, Director of Development, Southwest Solutions

This is an excellent opportunity to find out how organizations in your community have transformed their relationships with new and existing donors and how they are growing a legacy of mission-centered individual giving.

You are encouraged to bring other staff, board, volunteers, and business associates to engage them in this practical and effective new team-based approach. You must register if you plan to attend (cost $25) so you can be notified if there are any changes to the session (date, time, location).

Register on the Washtenaw Community College website. Scroll down to “Make a registration request online,” follow the instructions and register for CRN: 93894.

Questions? Contact Melissa Morgan (206-709-9400, ext. 121). View RMM’s free online video, “Seventeen Minutes to Sustainable Funding”.

Domestic Corps Program Fall Showcase

Friday, October 6, 2006, 8:30 a.m. – 5 p.m.
Rackham Graduate School Amphitheatre, Ann Arbor

Come and hear how students at the Ross School of Business spent their summer internships across the United States building capacity and sustainability for nonprofits. This day-long Domestic Corps showcase features Bo Burlingham as keynote speaker. He is the author of Small Giants: Companies That Choose to Be Great Instead of Big and co-author of Inc. Magazine’s monthly column “Street Smarts.” Burlingham will discuss how critical entrepreneurial leadership skills can benefit nonprofit CEOs in their quest to create “great” small organizations.

In addition, the Showcase will feature a panel of nonprofit executives, including Ross School alumnus Steve Mariotti, president of the National Foundation for Teaching Entrepreneurship. Mariotti founded NFTE in 1987 to teach entrepreneurship to young people from low-income communities to enhance their economic productivity by improving their business, academic, and life skills.

The conference is free, but registration is required. Call 734-746-0279 or visit the Domestic Corps website.

Volunteer Coordinators

The Washtenaw Association of Volunteer Coordinators (WAVC) is an informal group of people who manage volunteer programs. They meet five times a year for a brown bag lunch to network and share information. Anyone is invited to attend the next meeting on Wednesday, November 8, from noon to 1:30 at the Great Lakes Rabbit Sanctuary. Contact Barbara Major to have your name added to the email list; You will be emailed a reminder with a map closer to the date. Discussion will center on how to get buy-in for volunteer programs from staff members.

Reminders

• Nonprofit Day, September 27, Lansing
• Two-day fundraising workshop with Kim Klein in Lansing, September 28 and 29
• BoardSource Leadership Forum, Chicago, December 2 and 3
• LeadersConnect session discussing Good to Great and the Social Sector, October 3
  

REGULAR FEATURES

Nonprofit Employer ezine. The September 13, 2006 issue featured “A Guideline for Interviewing: Getting to Know Candidates.” Published by Capability Company. Subscribe to stay on top of human resource issues.

Nonprofit Bulletin Board

Visit NEW's Nonprofit Bulletin Board to post and view notices about free resources, fundraising opportunities, and other items relevant to the southeast Michigan nonprofit community.

Events Calendar

Ann Arbor Area Convention and Visitors Bureau calendar of events. E-mail Nick Miller to request a password to submit an event.