4 minutes
Headquartered in Boca Raton, Fla., IBM Southeast Employees’ Federal Credit Union is one of the nation’s largest credit unions, with $878 million in assets. From 15 locations in South Florida and metropolitan Atlanta, IBM Southeast EFCU serves more than 73,000 members.
In 2012, after leading the credit union for more than 20 years, IBM Southeast EFCU’s CEO announced his retirement. And while he had given a year’s notice, the board was anxious to get started with the search process right away in order to have a new CEO on board within that timeframe. According to CUES member and the credit union’s VP/human resources and training, David Lyons, CCE, “There is no better definition of change for a credit union than transitioning to a new CEO.”
Solution: A Successful Search Begins With a Strategy and Proven Resources
IBM Southeast EFCU’s board chairman appointed a five-member search committee and asked Lyons to join as an advisor. One of the first steps Lyons took was to familiarize the board committee with what was involved in the search and hiring process, and give them an idea of the cost involved in a CEO search in the current marketplace.
Given the volume of anticipated applications, the committee believed they would get the best results by contracting with a professional search firm to help with the process. During the initial planning stage, the board had agreed that a potential search provider partner must:
- be established in the credit union industry;
- have experience and a proven track record of successful executive placements;
- provide access to a national network of potential candidates;
- be committed to partnering with the credit union; and
- demonstrate a full understanding of the credit union’s culture in order to help them find the right match.
Lyons presented the committee members with four potential firms for consideration. After reviewing the list, the committee selected JMFA Recruitment Services. Not only did the company meet all the board’s criteria, JMFA was a trusted CUES Supplier member and strategic partner. “The credit union had been a member of CUES for more than 15 years and that association was very important to us,” Lyons says.
Preparation Gets Credit Union off on the Right Foot
As he reviewed the credit union’s initial preparation for the search, JMFA Executive Vice President Charles Shanley credited the selection committee for its efforts. “They did a lot of things right up front to ensure an effective process and successful results,” he says.
Getting the Search Underway
JMFA combined traditional search techniques – such as picking up the phone and calling qualified executives – with access to social media resources, networking groups and 85,000 contacts in its database. This enabled JMFA’s consultants to contact passive candidates who didn’t have their resume circulating but who had the qualities and qualifications the credit union was seeking. In this particular instance, consultants talked to 1,500 candidates.
JMFA’s process for narrowing the candidate pool included:
- basic interviews,
- behavioral interviews,
- personality testing, and
- financial reviews of the institutions where the candidates were currently employed.
Once the list was pared down, candidates who progressed to the second round were asked to complete a project that enabled them to demonstrate their vision and management style in a hypothetical situation. These documents were shared with the search committee for review. With this information compiled, JMFA scheduled one final interview – either in person or via video conference – with each of the finalists. “It’s important to have a face-to-face conversation at this point in the process,” says Shanley.
Experts Help to Simplify the Final Selection
Once the final selection was made, JMFA assisted the credit union with salary negotiations and recommended a provider to help put together a supplemental executive retirement plan that would provide the new CEO with benefits above and beyond those covered in traditional retirement plans. “Including this step in the process was new for us,” Lyons says. “But we believed it was an important retention recommendation.”
In the end, Lyons and the board were very pleased with the entire process. “From the beginning JMFA helped everyone understand the timeframe and the steps it would take to fill this important position and provided us with the tools we needed to make an informed decision in selecting a new CEO,” he says.
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Learn more about JMFA Recruitment Services.
With more than 35 years of experience serving financial institutions, a database of more than 85,000 industry contacts and a rigorous evaluation process, JMFA Recruitment Services is uniquely suited to find ideal professionals for financial institutions of all sizes and levels, including retained and contingency search, along with flexible staffing services.
