As development professionals, we recognize how legacy giving makes such a huge difference to our institutions. But how many of us think about our legacy as leaders? At the chief executive level, succession planning is critical for the ongoing success and longevity of any health care foundation. (Editor’s note: Since titles vary, this article will use the term “CEO” to indicate the foundation leader.)
As baby boomers continue to depart from top positions, it is important for organizations to take the time to ensure the transition between CEOs is well thought out and supports the legacy of the departing CEO and the continued success of the organization. So the question arises: Whose job it is to ensure that a solid, realistic, and well-thought-out succession plan is in place?
Anecdotal information indicates transitions are rarely planned and often unexpected or poorly structured. A small survey of hospital foundations in British Columbia found that 50 percent didn’t have a succession plan in place; explanations ranged from “don’t think it’s important” to “it’s on the radar for the current year.”
Unfortunately, delaying the process can be detrimental. Lack of continuity is the least of the problems that can arise when organizations are unprepared for the inevitable transition.
Although leadership transition is traditionally a board role, it is important to include the CEO. In the same survey, 80 percent agreed that any CEO succession plan should involve the CEO as well as the board.
This does not mean the board needs to find a carbon copy of current leadership. Including the CEO can give board members a much broader understanding of the responsibilities and challenges involved with leading the organization and may help them decide on the skills required for a new CEO to lead the organization into the future.