Keep Your Economic Development Goals on Task with Succession Planning

24 Oct 2024
Economic Development
An Economic Development Organization (EDO) exists to ensure economic and community prosperity for businesses and residents within its domain. Each organization’s effectiveness will rely on the ability to seamlessly pivot as staff members or volunteer leaders leave your organization. For this reason, it is critical for EDOs to develop and regularly update a proactive plan for staff and volunteer succession to not lose forward momentum or take a step back. While most recognize the importance of planning for the future, few organizations have formal succession plans in place. As a result, retirements or the movement of economic developers to new communities have led to an alarmingly rising loss of institutional knowledge.
Does your organization have a succession plan?
The economic development marketing firm Golden Shovel Agency recently surveyed economic developers nationwide to gain more specific insights into the issue. Nearly 20% of all respondents plan to retire within the next five years, while another 25% plan to do so in five to ten years. This expected void in experience underscores the critical need EDOs have for succession plans. Yet less than 14% of respondents have a completed succession plan for their organization, and only 31% believe current team members could step into an open role.
Acknowledging a plan is necessary is only one portion of the awareness because there is no clear indicator of when or if the plan will be needed. Brian Abernathy, General Manager of Convergent Nonprofit Solutions, has fundraised for EDOs nationwide and emphasizes the importance of knowing when to step aside. “I’ve seen a few executives stay beyond their tenure, and the entire organization and community suffered for it,” he said.
Start planning today
Due to the complexities of overlapping responsibilities and the number of involved parties, a comprehensive succession plan can take 12 months or more to develop. A top-level employee often needs one to two years to become fully competent in their role, which highlights the need for a clear succession plan and leadership training. Committing to four distinct tasks is necessary to develop beneficial succession planning.
Identify key roles
Specific roles, such as executive and assistant directors or board members, have a larger overall impact on an EDO operation than others. A plan to backfill those positions quickly and efficiently will go a long way to ensuring delays are minimized. Additionally, identifying internal team members with the interest and aptitude to advance should be part of the thought process. SIGMASuccession offers useful resources for economic developers to guide their succession planning, as well as that of local businesses.
Document responsibilities
An EDO should provide the ability for each employee to document their responsibilities and duties. An excellent team exercise is for all team members to review other roles to include areas where collaboration occurs and reduce the chance of forgetting shared responsibilities. Beyond documenting tasks and responsibilities, each position’s communication role with internal and external stakeholders and their involvement in community activities outside the office must be considered.
Describe core skills & competencies
The organization’s leaders must evaluate the skills and competencies required to perform the responsibilities of each role at the necessary standards. This process involves carefully assessing the role and considering what technical skills are crucial for executing projects. At the same time, an individual must communicate effectively with leaders, site selectors, and the public.
Determine necessary training
The best way to protect operational continuity is to train employees at all levels to take on additional responsibilities in the event of staffing changes. Therefore, the training needed to develop core skills and competencies and the potential for third parties to provide this training must be determined. However, that ability requires a team large enough to perform their roles and have time for training. An economic developer in Nevada who participated in the Golden Shovel Agency survey, shared, “I’ve been in the county for 17 years and planned on staying for only 20. I’m trying to plan for the future of this office, but I’m stuck until the commissioners decide to expand my team. Without that, I don’t have anyone to train as my successor.”
Now is the time for succession planning
Succession planning is more than a contingency exercise; it is a strategic necessity for the long-term success of any EDO by fostering a leadership pipeline and ensuring that institutional knowledge is preserved. Immersing an organization in the process can ensure a smooth and stable transition when individuals depart the team, preventing disruptions to their initiatives and stakeholder relationships. This planning must occur at all organizational levels, involving staff and leadership while engaging the board to provide oversight and continuity.
Regardless of your organization's current status regarding succession planning, now is the time to jump into the thought process to protect your ability to meet your goals. Convergent Nonprofit Solutions understands the importance of economic development organizations and their role in communities nationwide. Look to Convergent Nonprofit Solutions to help you navigate opportunities and challenges.
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