Five Signs Your Credit Union is Ready for Succession Planning
A robust succession plan is a strategic imperative for any credit union aiming for long-term success and stability. Much more than a contingency plan, a thoughtful and thorough succession plan serves as a safeguard against unforeseen disruptions, preserves institutional knowledge, and ensures seamless transitions of leadership.
Many credit unions lack confidence in their succession plans. If these five scenarios sound familiar, it's time to refresh your existing plan or create a new one:
Limited Depth - I don’t have defined succession plans for my senior leadership team or other key roles. My talent development programs are limited, underutilized, or non-existent. We only have a succession plan for the CEO. My board isn’t thinking about my retirement or seems to avoid the conversation with me. My board isn’t working on developing new governance talent for officer positions. We struggle to recruit new board members.
Founder syndrome - I’ve been in my role for a long time and people always turn to me for the “history” or to remember why things were set up a certain way. My leadership team has the same tenure as me and they say things like, “if you go, I go.” My team is tenured and could benefit from a fresh perspective.
Strategic Shift - My strategic plan is aggressive and new. We’re going through a significant change in our growth strategy. Our goals no longer line up with our internal capabilities. Our future leader needs to develop a whole new set of skills to accomplish our strategy. I haven’t updated my succession plan since my last strategic plan.
Emergency Only - We have a plan in case I get hit by the proverbial bus - isn’t that enough? If I won the lottery tomorrow, I’m not sure who would be ready to take my place. I worry about preserving our institutional memory. My interim/ emergency plan isn’t as ready as I thought they were.
Personnel Changes - My succession plan depends entirely on one person. I’m new to my role and have inherited direct reports. We experienced leadership turnover and I haven’t yet reconsidered my succession plan. I had a successor who was ready to take over, but they just accepted a position elsewhere.
These scenarios are clear indicators that it's time to revisit your succession plan, but even in the absence of these signs, it's good practice to review your plans at least annually. If any of these scenarios resonate with you, or if it's simply been a while since you last looked at your succession plans, don't hesitate to reach out for assistance. Our consultants are here to help you develop a robust succession plan that safeguards your credit union's future. You can also download our Best Practices Guide for additional insights and guidance from our credit union consultants.
Remember, a proactive approach to succession planning is an investment in your credit union's long-term success. It ensures that you have the leadership talent you need to navigate challenges, seize opportunities, and continue serving your members effectively for years to come.