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Succession planning for executive leadership roles
- Author: Creative Australia
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Who is responsible?
The board is responsible for:
- the appointment of a Chief Executive Officer (CEO)
- succession planning for a change in CEO.
This is an important responsibility of the board’s and is a function of good governance.
In arts and cultural organisations, the CEO role may be held by an Artistic Director, Executive Director or shared between two executive leaders.
Why does leadership succession planning matter?
The organisation needs to be prepared for leadership changes, both sudden and long-term ones. This helps ensure:
- a smooth transition
- alignment on key skills, experience, expertise or attributes needed for the role/s
- the organisation’s long-term sustainability.
It’s essential that the board has a strong, open and honest relationship with executive leadership. This ensures succession plans are indeed a plan and not an emergency response.
Do succession planning for key executive roles alongside succession planning for the board. This ensures there’s alignment on current and future needs and planning processes.
How to start succession planning for executive leadership roles
Step 1. Assess current and future needs
As a board, you need to:
- evaluate the organisation’s current and anticipated needs in key leadership positions
- identify the skills, competencies and qualities required to drive the organisation’s mission and strategic objectives
- outline the role, responsibilities and any specific requirements for leadership positions, and make sure this is reflected in position descriptions
- consider whether there’s a need to address gaps and under-representation at the leadership level.
The Australian Human Rights Commission explores under-representation and strategies to advance inclusivity in the 2018 report Leading for change: A blueprint for cultural diversity and inclusive leadership.
Learn how to assess your board’s current skills and diversity by using this matrix.
Step 2. Identify and develop candidates
Identify candidates who have the skills or potential to assume leadership positions.
Consider:
- internal candidates who could assume a leadership role with further development or support
- external candidates who could bring fresh perspectives and expertise.
How to develop internal candidates
Create individualised development plans outlining training, mentoring and stretch assignments. For example, have senior staff present at a board meeting.
You can also provide opportunities for successors to gain exposure to various aspects of the organisation’s operations and decision-making processes. For example, provide mentorship opportunities either:
- in the organisation
- with board members
- with a leader at a peer organisation.
How to develop external candidates
Explore methods for engaging them. For example, invite them to events and networking opportunities.
Step 3. Support knowledge transfer
Support and implement knowledge-sharing initiatives for outgoing leaders and successors.
How to support knowledge transfer
- Ensure your outgoing leader develops a detailed handover document which outlines key areas of responsibility, current activities and their status, and any unresolved actions.
- Create a practical resource that collates key information, such as links to important internal documents and folders, to help the incoming leader navigate critical information quickly.
- Where possible, have a meaningful crossover period between the incoming and outgoing leader. This encourages a smooth transition.
Step 4. Create and document your plan
Document your succession plan for leadership roles. It should include:
- strategies for recruitment or candidate development
- onboarding and offboarding processes for leadership and board member roles
- communication strategies for role transitions.
Use this checklist to identify key handover information an outgoing CEO or director should provide their successor.
Recruitment strategies
Some organisations convene a board sub-committee that focuses on recruitment. Others engage an external recruitment specialist to assist with transition processes.
Communication strategies
One of the goals of succession planning is to maintain organisational continuity. To do this, you need to plan when and how to communicate leadership transition to key stakeholders, including:
- your staff
- your artistic community
- funders or donors
- the media.
This might be through delegating who tells who and when, or creating a formal communication and engagement strategy.
Step 5. Review and assess your plan
Regularly review and assess how effective your leadership succession plan is. It should reflect your organisation’s changing needs. For example, a restructure may mean more or fewer executive leadership roles.
Get feedback from stakeholders
To assess the effectiveness of your plan, get feedback from stakeholders. This could include board members, staff and your artistic community, where appropriate.
Conduct scenario testing and emergency planning
Test your plan to assess how prepared your organisation is for unexpected leadership changes or emergencies. For example, use test scenarios to understand the processes for:
- transferring authority for bank accounts
- changing contact details with key partners and funding agencies.
See how arts organisations in Australia have managed succession planning.
Step-by-step guidance on how to do succession planning for board roles, including the chair.