1. Succession Planning for The Board of Trustees- A New Approach
Lisa Brady
Patricia Codey, SC, Esq.
Friday June 23, :30 – 9:30 AM

2. Presenters

3. Lisa Brady
Lisa Brady is the Senior Vice President, Chief Operating Officer St. Joseph’s Healthcare System, an integrated multi-hospital major academic healthcare system based in Paterson, New Jersey. As COO, Lisa is responsible for the overall operations of the healthcare system, which includes St. Joseph’s Regional Medical Center, St. Joseph’s Wayne Hospital and St. Vincent’s Healthcare and Rehab Center.
Lisa earned her Master of Science degree in Health Systems Management from Rush University in Chicago and a Bachelor of Science degree in Anatomical Sciences from the University of Illinois.

4. Patricia codey, sc, Esq.
Sister Patricia Codey, SC, Esq., is the President of The Catholic HealthCare Partnership of New Jersey which supports the religious identity of Catholic health care. She works collaboratively with other advocacy organizations to promote the health and well being of all New Jerseyans, especially those underserved in the communities. Sister Patricia promotes leadership development, clinical and organizational ethics reflection and education, and advocates on behalf of Catholic health ministry priorities in the State of New Jersey and in Washington, DC.
Sister Patricia is a Board of Trustee Member for St. Joseph’s Healthcare System (SJHS), Saint Peter’s Healthcare System, New Jersey Hospital Association (NJHA), and serves on the St. George’s Medical School Advisory Board. She is the Chair of Council on Hospital Governance for NJHA and SJHS, and is a member of the President’s Advisory Group to Seton Hall University, Archdiocese of Newark Review Board, and the Red Mass Committee for Seton Hall Law School.
Sister Patricia received her law degree at the City University of New York Law School. She has been the recipient of the Executive Women of New Jersey Policy Maker Award; College of St. Elizabeth Alumni Association Humanitarian Award; SOAR!, St. Elizabeth Ann Seton Award; Richard J. Hughes Public Service Award; Brian Boru Clergy Award; Seton Hall Law School Irish Medal of Honor; and Anthony Melito Memorial Law School Scholarship. She is a Fellow of Leadership New Jersey.

5. disclosures

6. objectives
Define the issues with the “traditional” method of Board of Trustees search process
Describe the method utilized in a successful Board of Trustees search
Outline process used to incorporate diversity into the Board of Trustees search
Identify strategies to keep candidates engaged throughout a lengthy search process

7. What We’re Not Going To Cover…
Presenter: Kevin

8. Background

9. St. Joseph’s healthcare system
St. Joseph’s Healthcare System (SJHS) is the premier Catholic healthcare provider in New Jersey, sponsored by the Sisters of Charity of Saint Elizabeth for 150 years
SJHS is an essential tertiary and community acute care provider providing more than 1.6 million patient visits last year
Offering high quality integrated health care services across the full care continuum
Presenter: Kevin

10. St. joseph’s healthcare system
Two acute-care hospitals
880 licensed beds located in Paterson, NJ & Wayne, NJ
St. Vincent’s Healthcare and Rehab Center
151- bed long-term residential facility
Visiting Health Services
Provides nursing and rehabilitation visits to patients in three counties
Ambulatory Sites
Over 30 outpatient sites operated throughout the service area
Robust academic program
Medical students, graduate medical education, nursing, and ancillary staff training programs
Captive insurance company
Independent Physicians Association (IPA)
Two foundations
Presenter: Kevin

11. The Traditional Nominating Process: Common Problems

12. Traditional Nominating process: Common problems
Episodic schedule, usually tied to an Annual Meeting
Limited, if any, connection to the Strategic Plan and skills needed in the future
Historic under-representation of minorities and women on the Board and no pro-active outreach to find them
Absence of a Board Profile that breaks down the Board by age, gender, race/ ethnic background, geography, skill sets, professional background, other board experience, and leadership potential
Reliance on existing, and usually limited, trustee networks to identify candidates
Presenter: Kevin

13. Traditional Nominating process: Common problems
Offers to join the Board, outside of the nominating process, by existing trustees to potential candidates
No formal interview process of candidates based on general and specific criteria, submission of CV, questionnaire, and limited, if any, due diligence
Lack of a Board policy and procedure outlining the trustee recruitment and selection process
Inadequate statement delineating expectations for trustees: meeting schedule, fundraising, absence of conflicts, code of conduct, job description
Limited succession planning for Board leadership and Committee chairs
Presenter: Kevin

14. The Goal

15. The GOal
Create an on-going, pro-active Nominating Process that is responsive to the AHA Diversity Challenge and generates a pool of high quality, motivated, talented, and diverse candidates who will be assets on a high performing Board that leads the organization in embracing its Mission and realizing its Strategic Plan.
Presenter: Pat Codey

16. Presenter: Pat Codey

17. The Process
Presenter: Pat Codey

18. The Process
SJHS engaged a consultant, Michael Azzara, from Foley Proctor based in Cedar Knolls, NJ to facilitate the process
Creation and maintenance of Board Profile
Identification of gaps/ needs based on Board Profile:
Skill sets
Diversity (age, gender, race/ ethnic background, geography)
Professional background
Other board experience
Leadership potential
Presenter: Mike Azzarra

19. The Process
Development of General and Specific criteria to assess candidates:
Commitment to Mission
Time
Absence of Conflicts
Character/ Integrity
Team Player
Understanding of Board/ Management roles
Acceptance of Trustee Expectations (time commitments, fundraising advocacy etc.)
Canvassing of internal sources and determining possible interest
Affiliate boards
Trustee recommendations
Medical Staff Recommendations
Letter to Potential Trustees
Presenter: Mike Azzarra

20. Presenter: Mike Azzarra

21. Presenter: Mike Azzarra

22. The Process: External sources
Other NFP & Corporate Boards
Chambers of Commerce and Business and Industry
Academic Boards & Leadership
Fraternal Organizations
Linked-In
Local & National corporations in region and their executive teams
NJ Biz lists and awards
Campaign Contributor lists
AHA Resources
Clergy
Local officials contacts and recommendations
Professional Organizations
Presenter: Mike Azzarra

23. The process: Formal Interviews
Initial point of contact and first formal interview
Small group of Board Chair, Governance Committee Chair, and CEO
Rigorous process with set questions for each candidate
Consistency, continuity, and on-going communication with candidates through a lengthy process
Follow-up with candidates regarding process and final outcome
Presenter: Mike Azzarra

24. The process: results
Due diligence based on referencing
Selection
Orientation and on-going mentoring program

25. Candidate Questions

26. The process: results
Outside consultant yielded 70 previously unknown candidates and interviewed/ screened approximately 20 – 30 candidates
Internal process yielded 5 physicians, 2 affiliate Board candidates, and 4 previously identified outside candidates

27. The process: Results
10 candidates chosen for interviews and 6 candidates selected as final recommendations for the Board
3 outside candidates, 2 internal physicians, 1 Foundation Trustee
Several candidates who were not selected accepted assignments on Board Committees and Advisory Boards

28. Interviewed/ Screened
NJ Biz lists and awards
Original Pool 70
Interviewed/ Screened
20-30
Final Round 10
Selection
Final Recommendation to
Board of Trustees: 6
Medical Staff
Community Members
Other NFP Boards

29. Lessons learned Need for dedicated staff or consulting support
Process is demanding with significant time commitment, consistent processes, follow-up, and on-going communication with candidates.
Need to be rigorous in interviews and due diligence process.

30. Lessons learned
Identify potential conflicts of interest early in the process.
Key stakeholders and candidates need to believe that process is transparent, fair, and consistent.
The process is an effective way to minimize political pressure on the Nominating process.

31. Questions?