Governance

How Leadership Succession Planning Can More Deeply Engage Family and Board Members

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By Jill Blair, strategy and organizational consultant, and Jeffrey M. Glebocki, CEO, Strategy + Action/Philanthropy

This post is the second in a 2-part series on leadership succession planning. Read part 1 on the importance of planning for leadership succession now. Exponent Philanthropy members can explore these themes further in an article by the same authors in our Fall 2015 issue of Essentials.

Leadership succession planning is a process, not just a set of stated expectations. It’s a conversation and exploration to generate shared understanding and clarity of roles, responsibilities, and agreements.

These conversations are also a prime opportunity to more deeply engage family and board members in philanthropy. “It takes one strike of a match to light up a kid’s interest in an issue in the world,” observes Lisa Parker, executive director of the Lawrence Welk Family Foundation. “I say [leadership] succession starts in childhood. There’s a milieu of inclusiveness and exposure, so start early.”

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Why It’s Important to Start Planning for Leadership Succession Now

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By Jill Blair, strategy and organizational consultant, and Jeffrey M. Glebocki, CEO, Strategy + Action/Philanthropy

Passing the batonThis post is the first in a 2-part series on leadership succession planning. Exponent Philanthropy members can explore these themes further in an article by the same authors in our forthcoming Fall 2015 issue of Essentials.

“Our foundation had succession planning thrust upon us,” shares John Valliant, president of the Grayce B. Kerr Fund. “We had been talking about succession for some time, and then we were blindsided by illness and death.”

Fortunately, not every foundation faces such sudden and tragic events. But experiences of this nature are profound reminders of the importance of intentionally preparing for the future.

We know that leadership transitions are inevitable, and that they are moments of evolution and change that affect people and organizations. Leadership transitions can also be disruptive and create a sense of loss—so much so that we often choose to avoid thinking ahead and acting on that inevitability.

The good news is that we can manage transition by being prepared in the form of succession planning. There are many dimensions of succession, from changes in board members or board and staff leadership to engagement of next generations. In every case, leadership succession is fundamentally about the orderly transfer, or sharing, of power.

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6 Ways to Champion Change From the Inside Out

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By Ruth Masterson, Exponent Philanthropy 

Do you want to catalyze change at your foundation? Perhaps you want to improve board dynamics, refine your mission, or implement new technology. Many forces can initiate change, and here we explore how your fellow trustees and staff champion change successfully from the inside out.

Every situation is different, of course, and we encourage you to use these ideas not as a checklist, but as inspiration and support as you craft an approach tailored to your particulars.

Prepare. You don’t need to become an expert in all matters related to the change you will propose, but it is important to gather sufficient information to demonstrate that you know what you’re talking about, and to be able to share appropriate information with others. Be sure to appeal to both the head (with data, sample forms, time lines, and the like) and the heart (with stories of others’ successes or lessons learned, for example).

You may also want to spend time learning about change itself. Inside Change looks carefully at how change happens within organizations and encourages us to think about how to transform judgment into curiosity, frustration into excitement, and fear into courage.

Listen well. Plenty of evidence suggests that people are curious, innovative, and adaptable. So why can it be so hard to create change? Well, to start, when people feel pushed, they often resist.

In Humble Inquiry, Edgar Schein describes the emphasis our culture places on telling and doing rather than listening and asking. He describes the power of learning to inquire, humbly. By asking others about their experiences and ideas, we create the possibility of learning from them and, in turn, building trust and gaining information that can inform and improve our plans for change.

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Are Your Trustees Involved Too Much—or Too Little—in Grantmaking?

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By Ashley Blanchard, Associate Director of Philanthropy, TCC Group, and Trustee, Hill-Snowdon Foundation

In the 10-plus years I’ve been a consultant to foundations—and the 20-plus years I’ve been a family foundation trustee—I’ve noticed a phenomenon I’ve come to call the “trustee pendulum.” Trustees often start out very engaged in grantmaking, reviewing all grants (often to organizations they know well) and managing the grantmaking process, which is typically quite informal. Then, as assets grow, programs are defined, and staff are hired, trustees tend to step back and take on an oversight role, setting policy but leaving day-to-day grantmaking to staff.

But then the pendulum swings back. Feeling disengaged from the work on the ground or feeling ill-equipped to make the strategy and policy decisions required of them, trustees dive back into the business of grantmaking. They start asking for more information instead of less. They want to read complete proposals, dissect nonprofits’ financials, and scrutinize grant reports, which would be fine, if staff weren’t tasked with exactly the same duties. Trustees and staff become frustrated with the lack of clear roles and redundancy, and grantees get put through the ringer by trustees struggling to figure out their added value. I say this as someone who has been guilty of this behavior as a foundation trustee. I would also add that the pendulum again tends to swing back as staff and trustees identify the inefficiencies of this process and attempt to correct them.

This pendulum swing is emblematic of a larger issue: When professional staff are in the mix, it is hard to figure out the right role in grantmaking for foundation trustees. On one hand, trustees need to know enough about the grantmaking to oversee it and set strategic direction. On the other hand, stepping into grantmaking’s day-to-day minutiae can lead to the aforementioned headaches.

So how can foundations figure out the right balance?

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Bringing the Next Generation on Board—at Its Own Pace

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By Betsy Erickson, Arabella Advisors

It’s a lesson teachers and parents know well: No two people learn in exactly the same way or at exactly the same pace. And it’s a lesson worth bearing in mind for those seeking to create pathways for family members to engage in a shared philanthropic legacy. Arabella Advisors has worked with families for over 10 years, and we have learned that an important ingredient for success is to allow family members to decide for themselves when and how to engage in the family’s philanthropy.

We love telling the story of Bill Clarke, founder of the Osprey Foundation and our client for the past seven years, who has embraced a very flexible approach with his own foundation—one that has resulted in deep, personal, and satisfying engagement from each of his children and their spouses.

Bill established the Osprey Foundation 11 years ago to empower individuals and communities through education, health, economic opportunity, and human rights in a sustainable way. In the beginning, he didn’t know exactly where he wanted to invest his resources, much less how his three children, who were then in their early 20s, should be involved. “I wasn’t thinking about bringing them on the board right away, but I knew that we had all been involved in mission work, development, and foreign travel, and that they’d be interested in becoming more involved eventually.”

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Growing Into a Board Member Role

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By Diana Tyler Heath and Molly Tarrant, Arabella Advisors

One of the most rewarding elements of advising families is watching their engagement deepen and their family bonds strengthen, often through the addition of next generation board members who are passionate about making an impact and who bring new skills and perspectives. As we’ve seen with many of our clients, when done thoughtfully, introducing young family members to philanthropy can help shape their worldview, develop their professional skills, and bring them great personal rewards.

Students at Kabanga Protectorate Center (Tanzania), a Palmer Foundation grantee and refuge for children with albinism

Students at Kabanga Protectorate Center (Tanzania), a Palmer Foundation grantee and refuge for children with albinism

Peter Lischick, current treasurer and member of the board of directors of The Palmer Foundation, is one such next generation board member. The Palmer Foundation turns 25 next year and has been in existence nearly all of Peter’s life. Like many family foundations, its early structure was relatively informal and reflected the annual giving and interests of its founders, Peter’s great-grandparents. When the foundation’s assets were fully vested, his grandmother took over leadership of the foundation and his mother and other members of her generation joined the board. They set out to involve the next generation at a young age.

When Peter was nine or ten years old, he joined his two brothers and a cousin on a junior board. “I served as the vice president by virtue of being the second oldest of the group. Our parents kept the board very structured, and taught us about Roberts Rules of Order, sourcing and evaluating grant proposals, and conducting discussions in a respectful and productive manner,” he says.

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Is Bullying Part of Your Board Meetings?

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By Ruth Masterson, Exponent Philanthropy 

You won’t find bullies on every board, but, when you do, they can be very disruptive—creating surprisingly high levels of stress for fellow board members and damaging the integrity, effectiveness, and impact of the board’s work.

Be careful not to assume the other party to any difficult conversation is a bully. Some people engage in bullying behavior only in certain situations, such as on the board but not at home. Others have developed a strong, regular habit that permeates all their relationships. In either case, if you find yourself face-to-face with someone who is bullying you or others on your board, use your recognition of the behavior as a first step toward managing your response and helping your board thrive.

Recognize a Bully

Although some bullies have low self-esteem, most have a combination of high self-esteem and deep shame; they use aggression to distract others from aspects of themselves they don’t want others to see.

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Ways to Build a Culturally Competent Board

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By Howie Schaffer, Bonanza Communications

Can greater cultural competency help funders better align their resources with needs? Despite notable accomplishments and donors who care a great deal about serving historically underserved populations, philanthropy continues to struggle to achieve social change for the communities and populations that need it most. 

Even the most thoughtful and productive philanthropists—including those who aim to serve, and do serve, highly diverse constituencies—may innocently overlook one component when assembling their boards or advisors: cultural competency, the ability to interact effectively with people from different cultures and socioeconomic backgrounds.

“Donors may inadvertently apply their own cultural lens in defining the needs of communities and populations, and in researching and offering solutions to these needs,” according to D5, a 5-year coalition to increase philanthropy’s diversity, equity, and inclusiveness, “or they may assume that there are no real differences across communities.”

Set the Stage

Board members are typically chosen for their commitment to the foundation’s mission, level of involvement in the community, field knowledge, proficiency in financial management, legal expertise, or other specialized skills.

“When foundations achieve more diverse and inclusive boards,” says D5 Director Kelly Brown, “that factor can go a very long way toward engendering greater cultural competency throughout the organization, no matter the size.”

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Plan for Transitions Before It’s Too Late

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By Nina L. Cohen, Glenmede

World-class athletes do not casually approach a championship match, but rather spend years in training. Likewise, nonprofit organizations and the third-party advisors with whom they partner are now taking the same disciplined, planned approach to navigating the future—including periods of transition.

Transitions can be difficult, overwhelming, and can affect everyone from staff, board, and committee members to trustees, beneficiaries, and grantees. It is important for those involved to understand that being proactive and prepared is integral to simplifying and streamlining transitions. Whenever possible, transitions must be choreographed to avoid undue risks to the organization’s mission and long-term goals.

Taking the time to establish a transition plan allows you to consider a variety of scenarios ahead of expected or unexpected changes, thus limiting vulnerability. Many organizations develop leadership succession plans, but often overlook how other scenarios—such as a considerable increase or decrease in assets or change in the investment policy—may also affect their philanthropy. Recently, charitable organizations have begun to partner with experienced outside advisors to plan in advance of transition periods and take advantage of their research, resources, and breadth of knowledge.

Change impacts all aspects of an organization

A period of transition influences all areas of an organization. Along with leadership succession plans, protocols should be developed outlining how investment policies and procedures, tax and legal responsibilities, and grantmaking and reporting requirements might change during a transition. These plans should also be regularly reviewed and revised as necessary.

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Set Up Your Foundation Board to Make a Change

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By Ruth Masterson, Exponent Philanthropy 

Is it time for your foundation board to undertake a big change—for the better? Is it time to introduce a new board policy or consider a new grantmaking strategy? Are you excited to recommend a board portal, conduct a board self-assessment, or take a good look at your foundation’s impact in the field?

Change takes effort, to be sure, and I’ve heard a fair amount of worry over the years about how to get the full board on board with a new idea. Here are some strategies I often recommend to board or staff members who champion new ideas:

  • Listen well. If you want board members to listen to you, your best bet is to model listening to them. Put energy into understanding others’ perspectives and respecting their concerns (however insightful or disproportionate they may be). After all, if a concern is real to someone else, it really is something for you to consider.
  • Be willing to amend your idea. Your idea may be truly great, or it may be more acceptable with some amendments. Or it may be a great idea for another board, or another foundation, or another time. In any event, an attitude of flexibility will pay off, even if it’s the perfect idea at the perfect time!

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