One of credit union board members’ most critical responsibilities is ensuring the long-term success and stability of the organization. A key component of this is robust succession planning. It's not just about preparing for leadership changes at the top; effective succession planning requires a comprehensive, organization-wide strategy that ensures you have the right people in the right roles, ready to lead your credit union into the future.
The importance of proactive planning
Too often, credit unions – especially smaller ones – neglect succession planning until it's too late. They may be forced into mergers when a CEO or other senior leader retires or resigns unexpectedly. In fact, National Credit Union Administration analysis shows that poor management succession planning is a primary or contributing factor in nearly a third of credit union consolidations.
But it doesn't have to be this way. By starting the succession planning process early and revisiting it regularly, your credit union can cultivate the next generation of leaders from within and attract top external talent when needed. This proactive approach not only helps you navigate leadership transitions smoothly but also positions your credit union for long-term success.
Succession planning isn't a one-time event; it's an ongoing process that should be integrated into your credit union's strategic planning cycles. By consistently focusing on succession and talent development, you ensure that your credit union is always prepared for the future.
Every strategic plan should include:
Leveraging Environmental Scan for insights
As you embark on succession planning, America's Credit Unions’ Environmental Scan (E-Scan) is an invaluable resource. The succession planning chapter in this year’s E-Scan report provides in-depth insights and expert guidance on this critical topic.
E-Scan highlights the significant positive impact that people-development strategies, mentoring programs, benchmarking efforts, and strategic training can have on organizational productivity. When you create a culture that supports learning and growth, you build a strong foundation for effective succession.
Explore concepts like knowledge transfer and psychological safety, which are essential for cultivating future leaders. E-Scan guides you in evaluating positions based on future needs rather than just current requirements. With its future-focused lens and expert analysis, you can make strategic talent decisions in an ever-changing landscape.
Your role as a board member
As a board member you can:
It's also essential to lead by example. Participate in board self-evaluations and seek out opportunities for continuing education and development. When you demonstrate a commitment to ongoing learning and growth, you set the tone for your entire organization.
By championing effective succession planning, you fulfill your duty to protect your credit union's long-term health and success. You help ensure that your credit union has the right leaders in place to navigate challenges, seize opportunities, and continue serving your members with excellence for generations to come.
E-Scan is now available for pre-order so you can be among the first to receive it on June 3.