Building Leadership Capacity: Reframing the Succession Challenge

According to a Bridgespan cluster survey of quite one hundred fifty noncommercial leadership groups, leadership development and succession designing for senior leadership positions are that the single greatest structure weakness non-commercials face―nearly twofold weaker than their next greatest challenge! analysis corroborates that perception; nonprofit organizations promote from at intervals so much but for-profit enterprises (typically sourcing thirty to forty p.c of senior leaders through internal promotion versus sixty to sixty-five p.c within the for-profit sector[1]).

This news would be cause for concern under any circumstances, however, it's significantly heavy given the intense demand for leaders that a lot of nonprofits are (or presently can be) facing. Bridgespan’s “The noncommercial Sector’s Leadership Deficit” analysis estimates that by 2016 the noncommercial sector can like quite 0.5 1,000,000 new senior managers because the sector continues to expand and as baby-boom leaders retire.

Why is developing future leaders therefore hard? A key reason is also that we tend to as a sector tend to border the problem terribly narrowly as “succession designing.” This term typically brings to mind the search that accompanies the departure of AN executive. That search is also frantic or it's going to be planned and dead. however, in any case, it's AN intermittent, isolated activity. And in our conversations with management specialists and noncommercial executives alike, one factor already has become clear: the foremost eminent succession designing isn't an occurrence triggered by AN executive’s departure. Instead, it's a proactive and systematic investment in building a pipeline of leaders at intervals in a corporation, in order that once transitions are necessary, leaders the least bit levels arable to act.

Bridgespan has launched long-run scientific research to higher perceive what it takes to induce that investment right. We’re examining best practices in each of the noncommercial and for-profit sectors. We’re additionally conducting in-depth interviews with senior leaders at organizations that have taken purposeful steps towards building leadership capacity. Our findings up to now are preliminary, however, they recommend that smart leadership development ANd succession designing ought to correspond to a collection of six-coupled processes (shown below) that repose on an organization’s underlying human resource operations (see Human Resource Foundational parts for additional information).

The Six coupled Processes of Building Leadership capability
These six processes apply to any noncommercial, however, the time, effort, ANd resources required to pursue all completely (and the quality of any given process) can vary reckoning on an organization’s mission, individual characteristics, needs, and size.

Below we tend to describe every method at a high level and list connected key queries that we tend to ar continued to explore in our analysis, still as urged reading for more info.

Engage senior leaders

As with any strategic priority, effective leadership development begins with the active commitment and engagement of the senior leaders (i.e., government director/CEO, board members) WHO set and fund priorities. Human resources employees are expected to supply support however cannot drive the processes. Senior leaders ought to own the initiative and general expressions of commitment are seldom enough. they need to actively dedicate time and resources to the hassle. Similarly, line managers should be equipped and control responsible for developing future leaders.

Understand future desires

One essential step in building a leadership pipeline is determining what kind of capability (e.g., roles, skills, and numbers) a corporation can like within the future to attain its strategic goals. Another is assessing the potential of current employees to fill that capability. The latter is usually remarked as distinguishing “high-potential” workers or “succession candidates.” the particular method of distinguishing these future leaders is difficult, as current leaders can place confidence in a way to map backward from future strategic must the abilities a personal presently demonstrates, and confirm a way to outline and establish “potential.”

Develop future leaders

In addition to commitment from workers and their managers, serving to employees win their full potential is probably going to want a range of supports together with, however not restricted to, formal coaching. most vital are on-the-job stretch opportunities (e.g., temporary project or role assignments), and mentoring and training from line managers or different senior leaders at intervals in the organization.

Hire leaders outwardly, as needed

The amount of internal versus external hiring at intervals in any organization is probably going to vary by a variety of things. except for positions that can't be developed internally, organizations can like practices in situ to supply, attract, screen, and integrate external hires. As noted in Bridgespan’s “Finding Leaders for America’s Nonprofits” report, screening for cultural work seems to be one in all the foremost recruiting methods however should stay stressed throughout the mixing of external hires.

Measure and improve practices

As with any core method at intervals in a corporation, senior leaders ought to incessantly step back to assess the effectiveness of the organization’s leadership development processes. This includes refinement processes supported results (e.g., coaching job approach A ends up in bigger retention of potential leaders than coaching job approach B) and change supported strategic priorities (e.g., changes in skills required as program focus shifts). The organization which will track the impact of its capacity-building efforts is additional probably to induce the senior commitment and resources needed from internal and external sources.

Build a culture that supports the development

As the Yankee specific, NGen Fellows noted in their June 2011 report, dynamical the standing Quo: Intentional Succession designing Through Leadership Development “successful organizations create leadership development AN intentional a part of the culture. once a culture of feedback and skill development is fostered brazenly and advisedly with all employees, the organization higher develops leaders and evokes employees to remain engaged.” Senior leaders ought to produce a setting during which workers will be specifically interested in leadership positions and feel supported in their development—and people who invest in them feel recognized for those efforts.