Evolv lvin ing Best P t Practic tices for E r Effectiv tive Al - - PowerPoint PPT Presentation

Evolv lvin ing Best P t Practic tices for E r Effectiv tive Al Alignment & t & Ex Execu cuti tive R Retention

Considerations for Success & Sustainability February 2018

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Changes both long simmering and rapidly evolving are putting both upward and downward pressure on College & University Presidents. To address those challenges requires that the functions to ensure a stable, progressive, cohesive team are in place and regularly monitored to increase the likelihood of retention, assess linkage of strategy to outcomes, and anticipate potential flight risks. Ensuring that a well-established Committee of Board leadership imbued with the duty and authority to collaborate with the President to understand and navigate a longitudinal set of challenges that require realignment of critical governance functions and lead to the evolving role of the Executive Compensation Committee.

Session Statement

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• 1. Board Oversight & Committee Structure
• 2. Well justified selection of Benchmark & Aspirant

Peers

• 3. Translating Strategy into goals
• 4. Assessing Performance
• 5. Developing a Culture of Development &

Continuous Improvement

• 6. Supporting Retention through Golden Handcuffs
• 7. Wrap Up

Today’s Discussion

Effective Alignment & Executive Retention

Board Oversight Peer Selection Translation of Strategy into Goals Assessing Performance Culture of Continuous Improvement Economic Golden Handcuffs

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• Acknowledging Increasing Time Commitments

for the Board & Other Commitments

• Understanding a Complicated Business Model
• Effective Talent Mapping & Engagement
• Balancing Cultures
• Empowering Committees with method for

Board feedback

• Providing an opportunity to educate oneself on

the challenges faced and how to be an effective partner

Board Oversight & Committee Structure

Board Oversight & Committee Structure Bylaws Reaffirmation / Renewal of Committee Charters Committee Assignments Annual Work Plan Information Exchange & Reporting Strategic Progress & Assessment

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• To whom should we be comparing? What

about in 5 years?

• What relevant comparisons are most

meaningful? Why?

• Provides clarity to your current state and

desired future state

• Allows for smoother recruitment & on-

Boarding

• Creates strong alignment between mission,

recruitment, retention, and documentation

Peer Selection

Peer Selection (Benchmark & Aspirant) Strategic Alignment Appropriate Institutional Expectations & Aspirations Executive Recruitment & Retention IRS Inquiries Compensation & Benefits Analysis Reassessment & Revision

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• Is our strategic plan relevant? Is it widely

understood?

• Have we been successful in cascading high-level

vision into measurable objectives?

• Do we know the top 5 things that must be

accomplished in the next fiscal or academic year?

• How do we use the linkage between strategy and

goals to hold the Cabinet accountable for performance?

• Do you periodically evaluate progress during the

year and are we able to pivot and plan accordingly?

Translating Strategy into Goals

Translating Strategy into Goals Strategic Planning Strategic Operationalization Establishment of Institutional Goals & Objectives Cascading of Objectives to Cabinet Periodic Assessment of Objectives (Progress / Pivot) Data Updates & Next Cycle Planning

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Assessing Performance

Assessing Performance Establishing Performance Expectations Distinguishing between Job Expectations & Enhanced Performance Ensuring Subjective & Objective Criteria are Evaluated Aligning Institutional & Individual Goals & Objectives Determining the Performance Evaluation Timeline Results Review, Discussion, and Positioning

• Performance expectations should be transparent, clear,

and to some degree flexible to circumstance.

• What is expected? What is extraordinary?
• How to balance and measure both outcomes and

intangible leadership characteristics?

• How do we get input from the Board into Presidential

Evaluation without making the Board a Committee of the whole?

• When do we conduct our review? Who should be

involved? Is it a standard review or a deep dive?

• How best do we evaluate the year objectively and begin

planning for the next cycle?

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Developing a Culture of Development & Continuous Improvement

Culture of Development & Continuous Improvement

Creating a Feedback Rich Environment Developing a Road Map Gather Empirical & Anecdotal Data Opportunity to Make Mistakes & Learn Realistic Expectations & Time Management Results Review, Discussion, and Positioning

• Retention is more than Compensation & Benefits
• Success requires transparency, communication, and trust
• Coaching and Development is a positive engagement, not a

precursor to an exit. Rather an opportunity to cultivate the leaders of tomorrow

• What does the Institution require?
• What do we do now to strengthen our colleagues, ourselves, and

strengthen our functional team?

• How do we imbed continuous improvement into our culture?
• How do we ensure that we are realistic about what can be

achieved without lowering the bar?

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Retention through Golden Handcuffs

Retention through Golden Handcuffs

Clarify Purpose Identify those positions/people tagged for retention Understand the market and current arrangements Design Alternatives to Consider & Estimate Projected costs/value Engage Board Leadership on Design features to refine and gain buy-in Implement Plan with One-on-One meetings to highlight benefits, and plan nuances (Annual)

• Retention is bolstered by Compensation. Deferring

Compensation benefits both the Institution and the Individual

• Do we know what our current retirement plans are projected to

provide at retirement age? Is that competitive with other positions elsewhere?

• How do we understand internal equity?
• To what extent do we want to differentiate from others to retain
• ur best?
• How do we encourage long-term engagement and retention

through both “carrots” and “sticks”?

• How do we ensure participants understand the value and

uniqueness of what we offer? The best plan poorly communicated loses value.

Board of Trustees

Executive Compensation Committee IRS Compliance (IRC 4958)

Rebuttable Presumption of Reasonableness Peer Identification & Selection

Executive Compensation & Benefits

Presidential Compensation Disqualified Persons Compensation Deferred Compensation

Performance Evaluation & Goal Alignment

Annual Evaluation Annual Variable Compensation Metrics Metrics for Cabinet

Leadership Development & Succession Planning

Contingency Plan for President Talent Gap Analysis Development Dashboard

10 Succinct but Focused Annual Report to Full Board Delegation of Authority with Required Feedback Loop

Thank Yo You

• Presenters:

Mary Pat Seurkamp, Ph.D. Senior Consultant mseurkamp@yaffeco.com 410-494-4183 John Tolmie Senior Vice President jtolmie@yaffeco.com 410-494-4147