3 minutes
Professional development and dry runs build board confidence in potential CEO candidates.
A participant in CUES Net™, CUES’ members-only email listserv, recently asked if boards at other organizations get involved in the executive hiring process; specifically, the member’s board had proposed that CEO candidates should have a four-year degree. The question at hand: Should education requirements be part of the succession planning policy?
Though other CUES Netters said they think the board should set the criteria for a CEO hire, I think the board should never hand down such a requirement. That said, my board holds me, the CEO, responsible for preparing my staff to take over if something should happen. Succession planning does not end at identifying potential candidates; it also needs to include developing internal successors.
Each year, I list in my employees’ future goals some type of continuing education (e.g. schools and webinars) that I feel they need to further develop or refresh their skills. I also tell them to come to work every day ready to work towards the job they want, not the one they have. If their goal is the CEO position, I encourage them to take every opportunity to continually educate themselves. I hold my direct reports responsible for ensuring they are developing their people in the same manner.
I don't feel that a degree is necessary to run a credit union, but if you are someone who aspires to be a CEO, you should attend professional development offerings like CUES’ CEO Institute. Show your supervisor and the board that you are able to learn, apply the knowledge you gain and strategically plan an organization’s future. The current CEO needs to give individuals with the potential for future advancement the ability to take advantage of training opportunities.
If those employees choose not to participate, then they are not viable candidates. At our credit union ($208 million Sunbelt FCU, Laurel, Miss.), we have an EVP, SVP and CFO. The CFO has made the board aware that advancement to CEO is not a desire; the EVP and SVP could run the CU tomorrow. In fact, their viability has been proven, thanks to an internal testing process, assuring the board that the credit union will continue to run smoothly if I were unable to perform my duties.
This test occurred during our last regulatory exam. We asked the National Credit Union Administration to only interact with the staff, unless there was an immediate need, so the board and I could see how they performed. NCUA didn't need me at all. We went into the exit meeting and were presented with four findings that were very minor; the staff had three fixed by the next board meeting and had a timeline to resolve the last.
It is written in our succession plan that the board will interview both internal and outside candidates when the time comes to replace me. This is very wise—it is important for the board to know what talent is out there, so they can make an informed decision for the future—but now they are also well aware of the talent they already have. The process works. Just make sure you are educating your staff, cross-training and giving them opportunities to shine, and you will find the rising stars and potential future CEOs.
Of course, I don't plan on going anywhere anytime soon, so my successors, whoever they may be, will be waiting a while!
CUES member W. Christopher Hammond is president/CEO of Sunbelt Federal Credit Union, Laurel, Miss.
Credit union leaders can earn their Certified Chief Executive designation by attending all three segments of CUES’ CEO Institute and completing the two between-segments projects.
