Pub. 4 2014-2015 Issue 2

25 a succession plan for key personnel and a contingency plan for the potential loss of key expertise, which should clearly document board recruiting plans and activities in detail.” This practice generates confidence in your organization’s long-term prospects as it portrays the ability to look into the future and PLAN. What you are doing today is important. Of equal impor- tance is what you are doing to prepare for tomorrow. As indicated in a rating report by Standard & Poor’s, “The rating also reflects our anticipation that the school’s operating performance will remain consistent and that future projec- tions will be met.” The Utah Charter School Finance Authority (UCSFA), rating agencies, bond holders, parents, local school agencies and employees are very interested in the long-term survivability of the school. When considering the makeup of your board, a diversified and experienced board is ideal. Having staggered board terms to prevent mass turnover is key to maintain not only continuity, but access to institutional knowledge. Having a mix of “seasoned” board members along with “fresh” board members helps keep the founding principles alive while incorporating the current thoughts of parents and policies. Professional backgrounds of board members would be well to include business managers and/or owners, finance, attorneys, accountants/CPA, teachers, computer technology officers, marketing profes- sionals, construction agents, school administrators and the like. Managing a school isn’t just about education; it is running a complex, ever evolving busi- ness involving many people. The board will be faced with a myriad of issues and having a diversified board will provide real-life experience while also fostering healthy discussion when needed. It is important to make sure that this process is approved by the board and instilled either into the bylaws themselves or policies for governing the school. It is also important to swiftly act when a position becomes available to not leave voids in management. Suggested con- siderations when setting these policies for succession planning can include the following steps: 1. Person wanting to resign their posi- tion will do so in a way that pro- vides adequate time for training of new individuals and the continuing governance of the school. You may request this in writing with a date specific timeframe. 2. In order to maintain Board continu- ity, members will ensure that Board members’ terms are staggered, and the Board will continue to safeguard that a majority of Board members’ term not expire in any one year. 3. Maintaining an odd number of Board members, ideally at least 5 and no more than 9. 4. Establishing a timeline for prompt replacement. a) Board shall appoint Board member(s), school admin- istrator or combination thereof to head search for new candidates. b) When conducting a search for new Board members, the search committee shall solicit applications from the school community, seek applications in the broader community, and attempt to identify indi- viduals with desirable experi- ence and expertise to serve on the Board. Applicants will be brought to the Board to determine finalists. c) Board shall interviews final- ists to determine whether individuals understand the mission of the Charter, are invested in that mission, have experience and expertise that will benefit the school, and whether applicants under- stand and are willing to act in accordance with the Board’s governance role. d) A majority or super majority vote of the remaining Board members will choose new Board members. e) Newly elected or appointed Board member or staff will commit to a training period. When considering succession plan- ning for key management personnel, additional considerations are helpful such as: 1. Provide the Board at least three months’ notice of the key manage- ment personnel’s intent to leave the school. 2. Upon learning of the key manage- ment personnel intent to depart the school, the Board will appoint a search committee that includes members of the Board to coordinate the search for a successor. 3. The search committee will develop a search process to present to the full Board for approval. 4. The selected individual will: a) Support the school’s mission; b) Understand their roles and responsibilities; c) Be sufficiently experienced to fulfill his duties; d) Be clear of any prior issues. The school should review and prepare for instances when a position is vacated immediately. The Board should discuss interim management options and pro- cedures for replacing key administrative personnel. This may include the Board or a Board appointed committee meeting regularly with the acting key admin- istrative personnel to review progress reports about school operations and its programs, the financial condition of the school, and personnel issues in order to ensure adequate oversight on the part of the Board during the transition period. Additionally, the Board should create a voting policy/procedure outlining the process to be followed should there be an even number of board members due to an immediate vacancy. Ultimately, proper succession plan- ning provides comfort to all who rely on your school. This plan will provide direction and eliminate conflict as posi- tions inevitably become available. By having a thoughtful and methodical plan, a board more fully addreses its governance and provides a platform in helping better current leaders while creating new alike. David Robertson Qualified Financial Advisor Vice President at Lewis Young Robertson & Burningham, Inc.