The report analyzes the succession plan issue faced by Rainforest Nursery. The organization utilizes a volunteer-based model which limits continuity of the operations. The firm is run by volunteers who may fail to get a replacement after retirement. There is no framework that provides for the future prospects of the company and if the younger people do not take on the role of funding and leading change within the company, then the firm not be able to sustain its operations. It is recommended for the current management to use a performance management system to equip the staff with skills needed to run the organization. The workers should be aware of the vision of the organization and at an individual level foster initiatives that will result to successful transfer of responsibilities.
Introduction
Not-for-profit firms depend on well-wishers to drive their agenda. Individuals and corporations volunteer to provide financial, capital and human resources at own will depending on the objectives and contributions of the enterprise to the community. NGOs must visualize their future beyond current projects and as such a succession plan is important so that the first generation leaders are positioned to hand over responsibilities to the next generation for continuation of services (Stirling et al. 2011). Running operations without a clear guideline of how the roles are transferred can lead to misbalance of the structural program. Rainforest Nursery future lies with the younger generation and given that the operational model is volunteer-based, the firm is supposed to make changes in the leadership and human resource functions.
Business Issue
Project succession is one of the greatest challenges faced by small non-for-profit firms. The firms mostly rely on volunteering-based model which implies that there are no definite partners to continue with the initiative when the aged sponsors retire (Hager et al. 2011). Rainforest Nursery is run by 60 volunteers in partnership with five full time employees and the local City Council. The vision, mission and all the objectives of the NGO rely on the execution capabilities of the volunteers. If some of the members withdrew their contributions without replacement, the firm's resilience is threatened. Formation of a succession plan when membership is solely based on personal volunteers is an issue that require immediate redress so that the ageing members are assured of the business continuity in their absentia. It is recommended for the firm to apply the performance management system through the leadership function of management.
Addressing the Issue
The organizational issue is structural. The nature of the operating model prevents the firm from having a clear succession plan and thus hinders future progression of the mission statement. BoardSource reported that only 30% of non-profits have a succession plan in place such that leadership transition challenges are common (National Council of Non Profits, 2015). A recent report by PWC further highlighted that most firms engage the volunteers as manpower rather than developing their roles to meet individual skills and experience. The volunteers are not adequately utilized to suit the needs of the company (PWC, 2016). For example, a HRM manager is not used for the role of selection and development of talent.
The right leaders need to be identified and developed in time so that there is smooth transition of responsibilities. The succession plan strengthens the capacity of the selected leaders so that the risk of continuity is minimized. If the company decides to ask new leaders to take on managerial roles without prior involvement with the organization, it is not possible to maintain the culture of the place and subsequently, relationship between the leaders and the staff becomes problematic making it difficult to sustain the operational model (NFP, 2010).
According to Buckingham (2015), a performance management system fosters growth and development of the staff members. The system is constructed with the intention of aligning the goals of the firm with those of the employees. As such, the program enables an environment in which people are able to perform to the best of their capabilities (Chowdhary et al. 2014). Since workers begin to become productive and collaborative with the hope of being promoted and recognized, talent is filtered to identify the leader that is most suited for succession. As such, succession plan through the application of performance management is about identifying a team of leaders within the enterprise who are suited to lead others in major responsibilities for the future. It is therefore recommended for the company to identify leadership gaps for the next five to ten years in advance so that the current staff can be subjected to performance assessment and leadership building trainings for succession (Bryson, 2018).
Rainforest has more volunteers and a small number of staff that is positioned for succession. The firm focuses on the volunteers and leaves out the critical aspect of developing talent that is responsible for future management of the organization. The volunteers contribute manpower and finances needed to run the firm but since their membership is limited to age, it is important to come up with a structure that allows the employees to lead and manage change. As such, the firm should commit to hiring and developing more staff through the performance management system. Various functions including marketing, accounting and strategic planning should be instituted and run by employees who are experts in the specific field. The workers are then trained and developed so that they are familiar with the vision of the organization and committed to ensuring continuity of the volunteer program. As such, the NGO will not depend on the capacity of the volunteer to lead the program but the staff will be solely responsible for the sustainability of the business model.
Conclusion
It is evident that employees are critical in the establishment of the vision of an organization. Although NGOs depend on volunteer to run and sustain operations, in case of retirement or death due to old age, the survival of the NGO is compromised. It is not easy to find younger replacements in a scenario where the volunteer-based model is solely used to run the affairs of the company. It is therefore important for the organization to equip the staff with needed skills so that they carry the vision of the brand at an individual level for fruitful succession (Olshansky, 2015).
Recommendations
First, the company should recognize the role played by the staff and come up with a training and development program to equip them with leadership skills at individual capacity. The workers need to project their skills and experience in a manner that is consistent with the mission of the company. Through the program, the staff recognize their importance in establishing the agenda of the organization and as a result, they become committed to ensure that they are able to lead change (Chapman, 2017).
Second, the leadership needs of the organization for the next ten years should be identified so that they are matched with the staff capacity. By establishing the leadership gaps that may be in the future, the management is able to identify specific employees who can fill the positions so that that can start being prepared for the roles. The staff who will be retiring can then mentor the younger ones and provide them with skills needed to ensure there is smooth transition. The performance assessments are periodically conducted to identify the strengths and weaknesses of the staff members with regards to leadership such that training and development becomes individualized.
Thirdly, the organization should come up with a structure that clearly spells out the roles of each function and employee within the organization (Bozer et al. 2015). It is therefore important for Rainforest Nursery to identify new posts that can be filled by new recruits or the current volunteers who have experience in the specific duties. For instance, the marketing function should be led by a team leader who has a successor in place. The same should apply to other units in the firm.
Most importantly, a board should be formed and given the responsibility of coming up with a director who is responsible for managing the vision of the organization on behalf of the volunteers. The top leaders should be periodically assessed and imparted with skills necessary to ensure that the organization remains resilient. The directors should have succession plans to run the affairs of the volunteers.
References
Allum, C. (2017). Why measure and for whose benefit? Addressing the challenges of measuring the contribution of volunteering for development in a multiple stakeholder environment. Voluntaris, 5(1), 51-
Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement. John Wiley " Sons.
Bozer, G., Kuna, S., " Santora, J. C. (2015). The role of leadership development in enhancing succession planning in the Israeli nonprofit sector. Human Service Organizations: Management, Leadership " Governance, 39(5), 492-508.
Buckingham, M., " Goodall, A. (2015). Reinventing performance management. Harvard Chapman, D. M. (2017). SUCCESSION PLANNING IN THE RELIGIOUS NON-PROFIT SECTOR: UNDERSTANDING ASSOCIATE PASTORS’EXPERIENCES OF SERVING AS INTERNAL INTERIMS.Business Review, 93(4), 40-50.68.
Chowdhary, P. R., Pinel, F. A., Palpanas, T., " Chen, S. K. (2014). U.S. Patent No. 8,843,883. Washington, DC: U.S. Patent and Trademark Office.
Hager, M. A., " Brudney, J. L. (2011). Problems recruiting volunteers: Nature versus nurture. Nonprofit Management and Leadership, 22(2), 137-157.
National Council of Non Profits (2015). Succession Planning for Non Profits: Managing Leadership Transition. Retrieved from https://www.councilofnonprofits.org/tools-resources/succession-planning-nonprofits-managing-leadership-transitions
NFP Consulting Resources (2010). Succession Plan for NGOs. Retrieved from http://nfpconsulting.blogspot.com/2010/02/tips-on-volunteer-leadership-succession.html
Olshansky, N. (2015). Tips on Succession Leadership. Retrieved from http://nfpconsulting.blogspot.com/2010/02/tips-on-volunteer-leadership-succession.html
PWC. (2016). State of Volunteering in Australia. Retrieved from file:///C:/Users/Editing%20Suite/Downloads/State-of-Volunteering-in-Australia-full-report.pdf
Stirling, C., Kilpatrick, S., " Orpin, P. (2011). A psychological contract perspective to the link between non-profit organizations' management practices and volunteer sustainability. Human Resource Development International, 14(3), 321-336.
