What If CIO Goes MIA? CUs Seek To Fill Big Void

Published September 19, 2008, 1:38 p.m. EDT

Updated August 27, 2020, 1:03 a.m. EDT

3 Min Read

RICHMOND, Va. - If the credit union loses its IT manager, would the business trip and stumble?

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Yes, according to one technology executive at a mid-sized credit union in the Midwest, which he says has done a "poor" job of succession planning for IT, though he added that he and his CEO are continually trying to close the gap.

"If I get hit by a bus, the credit union is going to have to haul in a load of consultants while they source a replacement," explained the VP, who asked to remain anonymous. "We don't have the budget to hire the right caliber of people to step up to a leadership role in IT."

Some other credit unions have built-in contingencies. The $1.6-billion Virginia CU here is bent on "getting the right people in the right seat," said Christopher Saneda, SVP and CIO.

The focus on technology talent is a result of new, formal IT governance at the CU, said Saneda. The team of 38 now has a project management office and regularly reports on strategy and performance.

"The structure changes include identifying clear leaders who have broad responsibility," continued Saneda. "These key positions are accountable for ensuring our infrastructure, software and security architecture are reliable and flexible enough to lead us through the next strategic planning cycle and beyond."

So, if Virginia CU lost Saneda, any one of three potential successors could step into his shoes, even though the CU has no structured leadership program, he said. "But we certainly encourage self-development, honest feedback and in-house promotions."

The leadership program at Consumers CU in Oshtemo, Mich., takes the form of "one-on-ones with employees to talk about specific career and credit union goals," said Scott Sylvester, CFO and CTO at the $265-million CU. The CU has a four-person technology unit.

Networking seems to play an important role in credit union succession planning. Even with assets at $2-billion, Fairwinds CU requires tech employees to "generally wear more than one hat," according to Charles Lai, EVP and CIO at the Orlando, Fla.-based CU.

The 22-person IT staff should be well-versed in the major skill-sets, including application programming and developing; systems analysis; project management; technical administration; engineering; imaging; and support. "We favor a generalist approach," he said.

Lai picks out the leaders in his group by looking for a "deep connection" to the members and business side; the ability to manage scale growth; and a hunger to learn new technology.

IT leaders must travel outside of the department, spending time with the business units to identify trends and needs, said Lai. "Connections to external entities is also critical and teaches non-credit union innovations and business issues."

That means Fairwinds likes to have a well-rounded technologist who can pinch-hit.

"We have an internal succession plan that accounts for operational and strategic needs," Lai said. "Any void would likely be filled by one of our very capable IT VPs."

At $396-million iQ CU in Vancouver, Wash., junior level executives stand ready to take the baton from a senior executive, said Jim Morrell, SVP-support services and CIO.

For example, if Morrell leaves, then iQ's network administrator would take his place, said Morrell. Morrell leads a group of 10 IT employees, whom he encourages to spend time outside the CU, he said.

"Our network administrator is a member of the CUNA Technology Council as well as maintaining technical networks," explained Morrell. "The network specialist who reports to the network administrator keeps track of technical networks and places of information and is a member of a statewide credit union technology council."

Each of the credit unions interviewed has a stable staff. Only Virginia CU will see one of its employees eligible for retirement in the next five years.

"We're fortunate that we are not pressured by looming retirees," said Saneda. "We are in a building mode and can plan for smooth transitions in most instances."

MORE CUJOURNAL.COM

Read more about succession planning at cujournal.com and search the following bolded terms in the archive:

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