rachael gibson (raffa, pc), mike gifford (aids resource ... planning and... · business model: how...
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Rachael Gibson (Raffa, PC), Mike Gifford (AIDS Resource Center of
Wisconsin)
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Focuses on making the world a better place
Contributes to client’s abilities to achieve their
missions and deliver their promises to the world.
Keeps organizations compliant, effective, and
efficient with practical back office support and
deeper strategies that create sustainability
Provides expertise in consulting, accounting,
nonprofit search, and technology services that help
advance client’s organizational missions.
RAFFA, P.C.
1899 L Street, NW,
Suite 900
Washington, DC 20036
(202) 995-7245
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Business Model & Strategy
LeadershipResources
Culture
THE
FOURELEMENTS
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Business Model: How the organization creates and delivers value, and finances the value-creation process.• Has at least 5-7 years of life in front of it.• Built on quality services. Needed by clients. Valued by
donors/funders.
Business Strategy: A coordinated set of actions aimed at creating and sustaining a market position in order to carry out your nonprofit’s mission. (Competitive advantage.)• Is there a strategy in place? Is it written? • Does it position the organization to meet future needs and
demands?• Are the board and staff aligned with it and about it?
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Leadership in place to meet current and future needs Succession plans for top leadership The Board is a high-value asset to the organization The Board’s work adequately covers its three core roles: Shaping mission and direction Ensuring leadership and resources Monitoring and improving performance, including its own Strong, positive relationship between Board and executive Diversity plus cultural and intergenerational competence
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Financial resources: sufficient, diverse, well-managed
Physical assets (facilities, campus, etc.) are maintained
Human resources (staff, volunteers) are sufficient, stable, engaged
Technology aligns with the business model
Reputation/brand: understands its reputation in the community
Proactive resource development strategy in place
Good stewardship of hard assets AND building soft assets
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“Sacred values” clear to board and staff
Decision-making authority defined
Agile and resilient
Agreement on commitment to diversity and inclusion
Culture and future direction aligned
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Business Model & Strategy
LeadershipResources
Culture
THE
FOURELEMENTS
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Ensures Organizational Sustainability
Increases Transition Success
Mitigates Risk All careers eventually
lead to a transition…
It’s just a matter of when and how
well managed
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1. SUCCESSION ESSENTIALS • Executive Backup Plan
• Succession Policy
2. LEADER DEVELOPMENT • Proactive Talent Management
3. DEPARTURE-DEFINED • Succession Essentials
• Sustainability Planning
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The “Essentials”
Emergency Backup Plans
Board Adopted Succession Policy
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Agreement Between the Executive and Designated Backup(s)
Identifies Key Duties and Key Relationships
Assigns Responsibility To Designated Backup(s)
Outlines Cross-training Needs for Backup to Step in
Develops a Communications Plan for Proper Notification
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Board-adopted policy
Outlines how to handle a planned executive departure
Statement of commitment:• Prepares for inevitable leadership
change
• Assesses leadership needs before beginning a search
• Plan to appoint interim leadership
BENEFIT:
• Ensures Board
Agreement
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Goal Increase organization’s capacity to deliver its
mission under new leadership, whenever the transition occurs
Outcomes Capacity-building plan strengthens the four critical
elements of organizational sustainability Succession policy outlines the board’s policies &
roles for a chief executive transition Backup plans and cross-training for continuity
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1. Connect to overall organization strategy2. Design as a disciplined process, not an event
1. Stretch assignments (70%)2. Coaching/mentoring (20%)3. Training (10%)
3. Organize organizationally, not just top level4. Align with HR practices to support it5. Measure and evaluate6. Give it the time it needs7. Communicate often
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Ensures continuity
Builds bench depth and internal capacity
Key responsibility of top leadership; can’t be delegated
Best if involvement is broad-based and connected to ongoing succession planning
Minimizes crisis of an unplanned absence
Identifies “organizational gaps” in coverage
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Proactive assessment of the organization’s ability to accomplish its mission
with present and future leadership with longevity, strength, and success in
meeting the needs of those within the organization and with those served.
Planning Does Planning Does NOT
• Builds capacity for mission impact
• Prepares proactively for executive transition 1-5 years in advance
• Reviews organizational business model/strategy, leadership, culture, and resources to increase effectiveness and longevity.
• Aligned with the strategic plans of the organization
• Only focus on financial stability
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Strategic implementation of activities & processes designed to limit the
impact of planned or unplanned absences or vacancies in critical
positions when they do occur.
Planning Does Planning Does NOT
• Identifies critical roles & functions
• Advances leader development
• Reviews staff with potential (ability to learn & grow) and experience to support critical positions during absences/ vacancies
• Establishes continuity in leadership
• Force staff to vacate a position
• Guarantee anyone a position
• Oblige anyone to take an unwanted position
• Create anxiety due to an absence or vacancy
• Eliminate leadership positions
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Who would need to be convinced of the value and importance given other competing priorities?
Who might you see as an advocate or champion?
What would help make the case clear and compelling to act now or at a later date?
What is the biggest barrier to action?
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HIV Medical Home model of care
198 staff
13 clinics and offices
$67 million revenue
3,500 patients and clients
40,000 people served through prevention efforts
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3,440 Patients and Clients
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Succession Planning
Doug Nelson Mike Gifford
Founding CEO Successor CEO
Contingency Planning
Mike Gifford Deb Endean
Current CEO CEO in preparation
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Succession Planning
Doug Nelson Mike Gifford
Founding CEO Successor CEO
1.) Things were going well at ARCW
2.) Identifiable internal candidate
3.) Time to further develop skills
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Timeline:• Established 2006• Implemented 2011
Process:• CEO-initiated• Board Approved
Selection:• CEO-identified• Board vetted
Training:• No formal plan• Years of Mentoring• Formal Training• Board Relations• Fundraising
Quiet!
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Sophisticated 6 month transition and communication plan
100% retention of senior leadership
Ongoing success of organization• Budget surpluses
• Record number of people served
• Improved quality performance
• Ongoing expansion to meet mission
Widely accepted by external stakeholders
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Contingency Planning
Mike Gifford Deb Endean
Current CEO CEO in preparation
1.) Things were going well at ARCW
2.) Identifiable internal candidate
3.) Time to further develop skills
4.) CEO with a long shelf life
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Timeline: Established 2015Implemented (hopefully never)
Process: Board-initiated
Board Approved
Selection: CEO-identified
Board vetted
Training: Formal 3 year plan
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Training: Formal 3 year plan
• Year 1 Financial Management & Board Relations
• Year 2 Pharmacy and Public Policy
• Year 3 Fundraising and Media Relations
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It’s never too early nor too late to start!