PHOENIX - Succession planning may be moving off the CU back burner, says a national executive search firm that’s seen requests for succession planning consultation significantly increase over the last two years.
“In the past 18 to 24 months we’ve put together 1,800 development plans for credit union executives,” said Deedee Myers, CEO of DDJ Myers here. “It could be in alignment with the bad news about the economy, but that’s speculation. When squeezed by decisions in the past that are maybe now showing up as not the best, credit unions start to look at leadership, and that’s why I think more board members are stepping up to be proactive.”
For example, Myers said she is working with a credit union that doesn’t need a new CEO until the end of 2009, but it is already discussing how to conduct an executive search. In Kansas City, Mo., the $1.8-billion Community America CU began focusing on succession planning six years ago. Now leadership and all of the credit union’s employees have career development plans, Myers said.
Many of the credit unions that have not paid attention to succession planning, Myers contends, are the same ones that are now merging. And while the greater focus has been on CEO succession planning, directors are paying more attention to who should be following them in the board room, as well.
Looking For Talent
“I’m also seeing more boards looking at themselves to determine what kind of talent they need and how do they account for their time and perform in a manner that best serves the credit union,” Myers said.
Credit unions doing well with succession planning are often those whose “management team and board speak frankly with each other,” offered Myers, adding that’s the point when progress begins. “What we are finding is when a financial is at risk, we go in and do an organizational assessment and determine if the executive team can have courageous conversations. That’s the starting point of getting them to trust and have faith in each other.”
Another approach that’s helped credit unions focus on succession planning is a single sheet of paper Myers calls the “talent readiness report. Each person in leadership needs to say who’s ready to step into their role. So if they don’t have anybody close, they have to pay attention to that. And the same thing can be done for the board.”
The importance of sound succession planning, for all levels of the credit union, often becomes apparent when the CU moves forward with growth plans, Myers suggested, saying some pay more attention to the plan than the talent to execute it.
“I get a little rankled when a strategic planning consultant comes up with a big vision for the future,” Myers said. “They lead with a list of things to do and never address talent in an effective way. So if the credit union doesn’t have the talent to fulfill its vision, then the way it spends its day is going to cause problems.”(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
