1. Linking Strategy, Governance, and Leadership Succession: The Role of the Board
2017 Governance & Leadership Conference
March 7, 2017
Presented by: Frank Martinelli
The Center for Public Skills Training

3. Three Critical Processes
Governance
Strategy
Succession
Three Critical Processes

4. Governance As Leadership
Richard Chait, William Ryan & Barbara Taylor

5. 3 Modes of Governance Fiduciary Mode – Board as Sentinel
"How are we doing to date?"
“Are we in compliance?”
Anything wrong?
Strategic Mode – Board as Strategist
"What should we be doing?”
"Where are we going?“
What’s the plan?
Generative Mode – Board as Sense-maker
“What are the new possibilities?”
“What’s coming next?”
What’s the new question?

6. What’s the new question?
Fiduciary Mode
Strategic
Mode
Generative
Board’s role
Steward/
Watchdog
Strategist
Sense Maker
Key question
What’s wrong?
What’s the plan?
What’s the new question?
Problems are to be
Spotted
Solved
Framed
Way of deciding
Reach resolution
Reach consensus
Reach understanding
Current Estimate % of Board Time Devoted to Mode
Future % of Board Time Devoted to Mode

7. Strategic Thinking and Planning

8. Strategic Planning
Strategic Planning is the process by which the guiding members of an organization envision its future and develop the necessary plans, procedures and operations to achieve that future.

9. Make Decisions About . . . Mission, vision and strategic priorities
Whom you will serve
Your organization's role in the marketplace, industry and profession
Future product/service offerings
Resources needed to succeed
Leadership needs
How to best combine resources, product/services and relationships for mission impact

10. Leadership Succession Planning
More Than Replacing the Departing CEO

11. Types of Succession Planning
Strategic Leadership
Development
Departure
Defined Transition
Emergency
Succession Plan

12. Succession Planning Offers …
A comprehensive, strategic approach that prepares the organization for inevitable vacancies in key positions
Continuing education and development in a variety of leadership areas
Professional advancement of staff as it relates to opportunities and promotion
A practice that makes organizations more nimble and flexible

13. Types of Succession Planning
Strategic Leadership
Development
Departure
Defined Transition
Emergency
Succession Plan

14. Emergency Succession Planning
A thoughtfully prepared plan to address an unanticipated departure of a CEO, usually occurring with only a few days or weeks’ notice
Best practice to support the uninterrupted performance of essential executive functions by outlining steps for the temporary appointment of an acting and/or interim CEO

15. Strategic Leadership Development
An ongoing process that identifies the core competencies, skills and knowledge needed over the next few years
Development of a plan to enhance those competencies in existing talent and/or recruit new talent

16. Departure Defined Transition
A course of action that board members and CEOs can employ when an actual “end date” has been determined for the CEO.
Focuses on:
Communicating the transition to staff and stakeholders
Conducting an organizational assessment and making improvements where possible
Recruiting and hiring a new executive, and
On-boarding the new executive

17. Board Succession Planning
A plan for developing current and future board leadership:
Who will be leading the board over the next five years?
Foster and develop future board leadership
A critical board responsibility
Connection to strategic plan
Linked to board recruitment and training processes

18. What is Board Leadership Succession Planning?
Succession Planning is the use of a planned program to ensure that new high performing leaders are developed to successfully replace board leaders whenever needed to carry out the mission, vision and goals of your pool.

19. Life Cycle of a Board Leader
A framework for board succession planning:
Comprehensive leadership development system
Variety of involvement options before, during and after board service
Use of standing and ad hoc committee structures

21. Three Critical Processes
Governance
Strategy
Succession
Three Critical Processes

22. Internal Board Systems and Practices That Facilitate the Linkages
Laying the Foundation

23. Board Systems and Practices
Standing governance committee leads the effort
Engaging the board in strategic thinking and planning
Aligning board development with your strategic plan
Incorporating strategic deliberation into every board meeting
Using committees and workgroups as "powerful engines” of governance, strategy and succession
Building a board leadership talent pipeline

24. Linking the Three Processes
Addressing board governance and succession as critical issues in a strategic planning process
Worksheet: Succession Planning As an Opportunity for Strategic Thinking: Starting the Conversation with Your Board of Directors
Worksheet: Executive Self- Reflection Questions

25. Tools for Linking the Three Processes

26. Linking the Three Processes
Foremost Challenges Worksheet
Critical issue briefing papers
Addressing board governance and succession as critical issues in a strategic planning process
Worksheet: Succession Planning As an Opportunity for Strategic Thinking: Starting the Conversation with Your Board of Directors
Worksheet: Executive Self- Reflection Questions

27. Foremost Challenges Worksheet
Foremost critical issues and challenges that the pool needs to address over the 1-3 years. (How should board frame the issue?)
What roles would be appropriate for the board to play in addressing each issue listed in Column 1?
Clarify the board's need for information and education re: this issue. (To make good decisions in response to this issue, what will the board need to know and be able to do?)
What resources can the Board access to help address this issue?

28. Critical Issue Briefs Opportunities and threats for the pool?
How are other pools responding?
What major choices, decisions and/or shifts in direction does this issue challenge us to consider?
What are high leverage strategies that will help us respond to this issue?

29. Review the Three Scenarios
Considering current conditions in your pool, select an entry point for exploring possible linkages between strategy, governance, and/or succession. What opportunities do you see?
When governance leads …
When strategy leads …
When succession leads …