3 Succession Plans Your Credit Union Needs

  • Share:
strategy

q42018strategicblog1

The number of Baby Boomers retiring or approaching retirement continues to increase with roughly 50 percent of the credit union industry’s executives leaving their posts over the next five years, according to a 2016 survey from D. Hilton Associates. As a result, the talent pool for credentialed, competent and, most importantly, tenured executives will recede. When this happens, there will be a shortage of qualified executives to lead the next generation. But this doesn’t mean credit union team growth and development must — or should — halt. 

Planning for impact

While credit unions continue to grapple with daunting challenges such as digital adaptation and competitive positioning, there is also an urgency to develop leadership transition plans that anticipate change, and forward-thinking credit unions prepare for the unexpected. You never know when a top executive will resign, fall ill, be removed during a merger and acquisition, or abruptly leave for personal reasons.

More than three in four credit unions report having a succession plan in place for their CEO, however the D. Hilton survey indicates 26 percent feel indifferent as to its effectiveness. Five percent say the plan is altogether ineffective. Clearly a greater focus on succession for all C-suite positions is needed if credit unions want a competitive edge in the market.

Strategic

3 common plans

Preemptive planning is a prudent practice that requires collaboration and input by the CEO, the board and the credit union’s HR department. The three types of succession plans credit unions should be designing to prepare the next chain of command include: 

  1. CEO Succession Plan — A plan that makes accommodations for a planned executive departure and addresses such issues as: hiring criteria for new CEO; impact on staff and budgeting; timeline for departure, communications and financial stability through and beyond a changing of the guard.
  2. Board Succession Plan — A board member-driven document that determines the direction credit union members want their boards to strive towards, identifying potential replacements and defining onboarding practices.
  3. Emergency Succession Plan — A roadmap defining best practices in cases of a sudden departure, short-term or extended absence, illness or death.

With these three plans firmly in place, a credit union can feel confident an unexpected change in leadership won’t derail their other plans for growth and success.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  2. Become a Tax Resource for Members
  3. Anticipating Change with a Succession Plan
  4. The Website Audit Your Credit Union Needs
  5. Building a Website with the User in Mind
  6. Don't Get Snagged on ADA Compliance Requirements
  7. 5 Things Credit Unions Can Learn from Cyber Attacks
  8. Content Marketing: Well Worth the Effort
  9. Optimizing Websites for Voice: What You Need to Know
  10. Are You Ready to Adopt a Continuous Performance Management System?
  11. The Importance of Creating Quality Content
  12. Should You Still Be Concerned about ADA Website Compliance?
  13. 3 Succession Plans Your Credit Union Needs
  14. Popular DDoS Mitigation Methods in 2019
  15. What the C-Suite Wants out of Social Media
  16. Why HR Should Take Advantage of Employee Self Service
  17. Is Your CMS the Right Fit?
  18. Your Social Media Accounts Deserve Quality Content
  19. Whatís Hot in Performance Management Technology
  20. Experience Company Growth and Discovery with Employee-Driven Communication
  21. A Simple Way to Unify Your Marketing Efforts
  22. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  23. Keeping Up with Digital Lending Convenience
  24. 3 Website Design Trends for 2019
  25. Making Sure You Have the Right Leaders in the Right Seats
  26. The Credit Union Advantage for the Digital Customer
  27. Shifts and Trends to Know About in E-Learning
  28. 4 Steps to Increased Social Media ROI
  29. How Credit Unions Can Formalize the Branding Process
  30. 3 Key Factors for Creating Good Content
  31. What Credit Unions Should Do with Ambiguous ADA Standards
  32. How Useful Are Member Personas for Credit Union Marketing Teams?
  33. How to Generate Content with Fewer Resources
  34. 2 Big FinTech Goals for Credit Unions
  35. Empowering Employees and HR with the Latest Technology
  36. Learning Management Systems: What Credit Unions Should Consider
  37. The Performance Management Conundrum: Structure vs. Creativity
  38. If Your Site Isn't Mobile Optimized, You're Losing Out
  39. The Dream Team for Successful Online Customer Interactions
  40. Is Your Executive Compensation Still Appealing?
  41. 7 Tax Changes Your Members Need to Know About
  42. 3 Factors Impacting Credit Union Compensation Plans
  43. Are You Missing Out on the Power of Video?
  44. Continuous Performance Management is Disrupting HR
  45. Protect Your Credit Union with a Website Accessibility Response Plan
  46. Credit Unions Can Complete with Shadow Banks
  47. Are Your Landing Pages up to Snuff?
  48. 5 Guideposts to Measure Your Brand Promise Against
  49. People Analytics: Bringing HR and Data Together
  50. The Quest for a One-Stop Shop Financial App
  51. Americansí Lack of Financial Literacy Is an Opportunity for Credit Unions
  52. How Credit Unions Can Embrace Storytelling in Marketing
  53. How to Identify What You Want in an ESS
  54. Prioritizing the Credit Union Employee Experience
  55. Caution: Customers Don't Always Ask for What They Want
  56. Wanted: Apps for Clarification and Simplification
  57. 3 Brand Promises Credit Unions Can Learn From
  58. Don't Underestimate the Power of Financial Education
  59. Leveraging Social Media for Member Engagement
  60. Finding the Best Platform for HR Technology
  61. The Role of HR and Hiring Managers in the Candidate Experience
  62. Credit Union Compensation: Philosophy or Strategy?
  63. Don't Undervalue Your Brand Promise
  64. 6 Factors for Choosing the Right ESS System
  65. Underestimate the Onboarding Process at Your Peril
  66. Why You Should Invest in an Applicant Tracking System
  67. Consumer Appetites in Mobile Innovation
  68. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  69. Build Up Membership Through Supportive Savings Programs

Related Trends

  1. Anticipating Change with a Succession Plan
  2. Is Your Executive Compensation Still Appealing?
  3. 3 Succession Plans Your Credit Union Needs
  4. Credit Union Compensation: Philosophy or Strategy?
  5. Learning Management Systems: What Credit Unions Should Consider
  6. 3 Factors Impacting Credit Union Compensation Plans
  7. Making Sure You Have the Right Leaders in the Right Seats
  8. Shifts and Trends to Know About in E-Learning

Industry insights
to your inbox!

Subscribe