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
Session Statement 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. 2
Today’s Discussion 1. Board Oversight & Committee Structure Board Oversight 2. Well justified selection of Benchmark & Aspirant Peers Economic Peer Golden Selection Effective Handcuffs 3. Translating Strategy into goals Alignment 4. Assessing Performance & Executive Retention 5. Developing a Culture of Development & Culture of Translation of Continuous Strategy into Continuous Improvement Improvement Goals 6. Supporting Retention through Golden Handcuffs Assessing Performance 7. Wrap Up 3
Board Oversight & Committee Structure • Acknowledging Increasing Time Commitments Bylaws for the Board & Other Commitments Reaffirmation • Understanding a Complicated Business Model Strategic / Renewal of Progress & Committee Assessment Charters • Effective Talent Mapping & Engagement Board Oversight & Committee • Balancing Cultures Structure • Empowering Committees with method for Information Committee Exchange & Board feedback Assignments Reporting • Providing an opportunity to educate oneself on Annual Work the challenges faced and how to be an Plan effective partner 4
Peer Selection • To whom should we be comparing? What Strategic about in 5 years? Alignment Appropriate • What relevant comparisons are most Reassessment Institutional meaningful? Why? & Revision Expectations & Aspirations • Provides clarity to your current state and Peer Selection (Benchmark & desired future state Aspirant) • Allows for smoother recruitment & on- Executive Compensation & Benefits Recruitment & Boarding Analysis Retention • Creates strong alignment between mission, IRS Inquiries recruitment, retention, and documentation 5
Translating Strategy into Goals • Is our strategic plan relevant? Is it widely understood? Strategic Planning • Have we been successful in cascading high-level Data Updates & vision into measurable objectives? Strategic Next Cycle Operationalization Planning • Do we know the top 5 things that must be accomplished in the next fiscal or academic year? Translating Strategy into Goals • How do we use the linkage between strategy and Periodic Establishment of goals to hold the Cabinet accountable for Assessment of Institutional Goals Objectives & Objectives performance? (Progress / Pivot) Cascading of • Do you periodically evaluate progress during the Objectives to Cabinet year and are we able to pivot and plan accordingly? 6
Assessing Performance • Performance expectations should be transparent, clear, and to some degree flexible to circumstance. Establishing Performance Expectations • What is expected? What is extraordinary? Distinguishing Results Review, between Job • How to balance and measure both outcomes and Discussion, and Expectations & intangible leadership characteristics? Positioning Enhanced Performance • How do we get input from the Board into Presidential Assessing Performance Evaluation without making the Board a Committee of the whole? Ensuring Determining the Subjective & Performance Objective Evaluation Criteria are • When do we conduct our review? Who should be Timeline Evaluated involved? Is it a standard review or a deep dive? Aligning Institutional & Individual Goals • How best do we evaluate the year objectively and begin & Objectives planning for the next cycle? 7
Developing a Culture of Development & Continuous Improvement Creating a Retention is more than Compensation & Benefits • Feedback Rich Environment Success requires transparency, communication, and trust • Results Review, Developing a Discussion, and Coaching and Development is a positive engagement, not a Road Map • Positioning precursor to an exit. Rather an opportunity to cultivate the Culture of leaders of tomorrow Development & Continuous What does the Institution require? • Improvement Realistic What do we do now to strengthen our colleagues, ourselves, and Gather • Expectations & Empirical & strengthen our functional team? Time Anecdotal Data Management How do we imbed continuous improvement into our culture? • Opportunity to Make Mistakes How do we ensure that we are realistic about what can be & Learn • achieved without lowering the bar? 8
Retention through Golden Handcuffs Retention is bolstered by Compensation. Deferring • Compensation benefits both the Institution and the Individual Clarify Purpose Do we know what our current retirement plans are projected to • Implement Plan provide at retirement age? Is that competitive with other with One-on-One Identify those meetings to positions/people positions elsewhere? highlight benefits, tagged for and plan nuances retention (Annual) How do we understand internal equity? Retention • through To what extent do we want to differentiate from others to retain Golden • our best? Handcuffs Engage Board Understand the Leadership on market and How do we encourage long-term engagement and retention Design features to • current refine and gain through both “carrots” and “sticks”? arrangements buy-in Design How do we ensure participants understand the value and Alternatives to • Consider & uniqueness of what we offer? The best plan poorly Estimate Projected costs/value communicated loses value. 9
Delegation of Authority with Required Feedback Loop Board of Trustees Executive Succinct but Focused Annual Compensation Report to Full Board Committee Leadership IRS Executive Performance Development & Compliance Compensation & Evaluation & Succession Benefits Goal Alignment (IRC 4958) Planning Rebuttable Peer Disqualified Annual Variable Presidential Deferred Annual Metrics for Contingency Plan Talent Gap Development Presumption of Identification & Persons Compensation Compensation Compensation Evaluation Cabinet for President Analysis Dashboard Reasonableness Selection Compensation Metrics 10
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
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