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. Opportunities and Risks of Banking for Marijuana-Related Businesses
  2. Experience Company Growth and Discovery with Employee-Driven Communication
  3. The Member Service Experience
  4. Become a Tax Resource for Members
  5. Should You Still Be Concerned about ADA Website Compliance?
  6. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  7. Anticipating Change with a Succession Plan
  8. Don't Get Snagged on ADA Compliance Requirements
  9. The Performance Management Conundrum: Structure vs. Creativity
  10. Are You Ready to Adopt a Continuous Performance Management System?
  11. The Planning Process - Improved
  12. Building a Website with the User in Mind
  13. Is Your Executive Compensation Still Appealing?
  14. What Credit Unions Should Do with Ambiguous ADA Standards
  15. Content Marketing: Well Worth the Effort
  16. Your Social Media Accounts Deserve Quality Content
  17. Continuous Performance Management is Disrupting HR
  18. 7 Tax Changes Your Members Need to Know About
  19. Consumer Attitudes Toward Digital Advertising
  20. 5 Things Credit Unions Can Learn from Cyber Attacks
  21. The Website Audit Your Credit Union Needs
  22. Are You Properly Rewarding Your CEO?
  23. The Quest for a One-Stop Shop Financial App
  24. 3 Succession Plans Your Credit Union Needs
  25. Credit Unions Could Replace Predatory Lenders
  26. The Importance of Creating Quality Content
  27. Americans’ Lack of Financial Literacy Is an Opportunity for Credit Unions
  28. Optimizing Websites for Voice: What You Need to Know
  29. What’s Hot in Performance Management Technology
  30. Credit Union Compensation: Philosophy or Strategy?
  31. Why HR Should Take Advantage of Employee Self Service
  32. Volunteer and Young Board Members Need Development
  33. Build Up Membership Through Supportive Savings Programs
  34. 3 Website Design Trends for 2019
  35. Consumer Appetites in Mobile Innovation
  36. Selling Payments and Wealth Management Services
  37. Wanted: Apps for Clarification and Simplification
  38. How Useful Are Member Personas for Credit Union Marketing Teams?
  39. Learning Management Systems: What Credit Unions Should Consider
  40. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  41. Shifts and Trends to Know About in E-Learning
  42. What Borrowers Wished Credit Unions Knew
  43. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  44. 3 Key Factors for Creating Good Content
  45. People Analytics: Bringing HR and Data Together
  46. Prioritizing the Credit Union Employee Experience
  47. Cut Through the Noise and Deliver Value Members Want
  48. The Credit Union Advantage for the Digital Customer
  49. Popular DDoS Mitigation Methods in 2019
  50. 4 Steps to Increased Social Media ROI
  51. Is Your CMS the Right Fit?
  52. Do You Know Why Payday Loans Are Used so Much?
  53. What the C-Suite Wants out of Social Media
  54. How Credit Unions Can Formalize the Branding Process
  55. Making Sure You Have the Right Leaders in the Right Seats
  56. Keeping Up with Digital Lending Convenience
  57. Just How Distracted Are Consumers?
  58. A Simple Way to Unify Your Marketing Efforts
  59. How to Generate Content with Fewer Resources
  60. How to Identify What You Want in an ESS
  61. Are You Missing Out on the Power of Video?
  62. Empowering Employees and HR with the Latest Technology
  63. The Dream Team for Successful Online Customer Interactions
  64. 2 Big FinTech Goals for Credit Unions
  65. Are Your Landing Pages up to Snuff?
  66. How Credit Unions Can Embrace Storytelling in Marketing
  67. Credit Unions Can Complete with Shadow Banks
  68. 6 Factors for Choosing the Right ESS System
  69. Caution: Customers Don't Always Ask for What They Want
  70. If Your Site Isn't Mobile Optimized, You're Losing Out
  71. 5 Guideposts to Measure Your Brand Promise Against
  72. Protect Your Credit Union with a Website Accessibility Response Plan
  73. Preparing a Transparency Communication Plan
  74. 3 Factors Impacting Credit Union Compensation Plans
  75. Don't Underestimate the Power of Financial Education
  76. Preparing for Compensation Transparency
  77. Don't Undervalue Your Brand Promise
  78. The Quickest Way to Understand Enterprise Risk Management (ERM)
  79. Leveraging Social Media for Member Engagement
  80. Finding the Best Platform for HR Technology
  81. The Role of HR and Hiring Managers in the Candidate Experience
  82. Why You Should Invest in an Applicant Tracking System
  83. Content, Tools, and Channels to Capture Consumer Attention
  84. Underestimate the Onboarding Process at Your Peril
  85. The Best Compliance Training with New Topics You Will Need
  86. 3 Brand Promises Credit Unions Can Learn From
  87. Identifying Marijuana-Related Businesses
  88. Serving the Underbanked and Millennials
  89. Why You Need ERM in Your Strategic Planning
  90. A Content Management System Will Make Your Life Easier
  91. Enterprise Risk Management — Where to Start
  92. The Quickest Way to Find the Right (and Safest) CMS
  93. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers

Related Trends

  1. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  2. Enterprise Risk Management — Where to Start
  3. The Quickest Way to Understand Enterprise Risk Management (ERM)
  4. Why You Need ERM in Your Strategic Planning
  5. Opportunities and Risks of Banking for Marijuana-Related Businesses
  6. Identifying Marijuana-Related Businesses
  7. The Best Compliance Training with New Topics You Will Need
  8. Anticipating Change with a Succession Plan
  9. Is Your Executive Compensation Still Appealing?
  10. 3 Succession Plans Your Credit Union Needs
  11. Credit Union Compensation: Philosophy or Strategy?
  12. Learning Management Systems: What Credit Unions Should Consider
  13. 3 Factors Impacting Credit Union Compensation Plans
  14. Making Sure You Have the Right Leaders in the Right Seats
  15. Shifts and Trends to Know About in E-Learning

Industry insights
to your inbox!

Subscribe