4 minutes
Sponsored by John M. Floyd & Associates.
The idea of developing a succession plan normally evokes thoughts of uncertainty that accompany the loss of a leader or other valued employee. And while a succession plan can have critical implications for an organization – from a continuity and regulatory perspective – a comprehensive plan can also impact a credit union’s ability to reach its strategic goals and objectives successfully.
Effective leadership and well-trained, motivated staff members play important roles in pushing an organization toward its goals – from defining strategies to focusing resources, measuring outcomes and establishing a cooperative, productive work culture. The secret is to have a succession plan in place to identify and groom the individuals who will eventually be responsible for ensuring the institution is prepared to address the future challenges posed by changing markets, increasing competition and regulation.
And while this is undoubtedly an important aspect of ensuring the long-term strategic direction of an institution, succession planning can also enhance the processes that help to maintain an overall culture of success and staff involvement.
Determine the Skills Required to Meet Your Goals
Starting at the top, a succession plan can serve as a guide for what specific skills and leadership qualities a credit union needs to ensure long-term success. Before you start the search and recruiting process, ask yourself these questions:
- Is your credit union poised for a merger or acquisition?
- Is there an urgent need to upgrade infrastructure or undergo a substantial strategy evaluation to make the institution more competitive in a changing market?
This type of information can help to tighten the parameters used in an executive search process and demonstrates to serious candidates that your organization has a clear direction for the future.
Is There a Leader Waiting Under Your Roof?
In addition to charting the course you will take regarding a long-distance leadership search, a succession plan should outline how to identify leadership talent within the organization. And while some organizations immediately set their sights on attracting the best and brightest that might have made industry headlines, remember: There are strategic benefits to beginning your search from within.
An internal candidate is already familiar with the credit union’s culture and staff, which can be beneficial when developing strategic initiatives. And, establishing a path to leadership within your organization will give you a better chance of retaining up-and-coming stars and guarantees continuity of service, which can be very important to member retention.
Also, preparing existing staff members who have management potential to step in and fill an open leadership position – if even on an interim basis until a permanent replacement is put into place – demonstrates to staff that you reward hard work and loyalty.
Cultivate Budding Talent for Future Opportunities
While you may determine that existing staff does not currently possess the leadership abilities you are looking for at this time, it is important to have a training plan and resources in place to cultivate the skills and expertise that you identify along the way. This will help to motivate staff and keep the organization moving, without interruptions in the workforce. Plus, by identifying employees who have potential, you can provide advancement opportunities to help them improve their skills and position them to take on increasing responsibilities, whenever possible.
Established Processes Can Ensure Smooth Transition
A succession plan should include direction regarding the process to follow in the event of an open position, along with any outside resources needed – such as a professional recruiter, development trainers and legal expertise – to help ensure a smooth transition and to make sure staff development plans are effective. This can alleviate extra work for staff members, boost morale and maintain uninterrupted, member service.
Timing is the Key to Successful Strategic Results
Succession planning is one of those initiatives that organizations often put off until it becomes a critical need. With that shortsighted view, failure to prioritize succession planning and leadership development can lead to the attrition of quality talent and leave a credit union staffed with people who are unprepared to lead the institution in the years ahead. From a strategic perspective, if an institution is always trying to catch up to its previous level of accomplishment, it will have a very difficult time attaining its long-term goals.
Charles Shanley, SPHR, CFS, is executive vice president of John M. Floyd & Associates (JMFA). He has specialized in executive recruiting and project management for more than 20 years, developing the skills and insight to quickly locate top talent to improve the client’s bottom line. Shanley excels in all facets of executive searches and has extensive experience in retained searches at the president/CEO level.
JMFA, a CUES Supplier member and CUES strategic partner, is a leading provider of profitability and performance-improvement consulting. For more than 35 years, JMFA has been recognized as one of the most trusted names in the industry for earnings enhancement and expense control programs, training and development, recruitment services, as well as product, service, pricing and technology-improvement consulting. JMFA’s programs and services are designed to increase income or reduce expenses. To learn more about JMFA, please visit www.JMFA.com or call 800.809.2307.
