the Challenge of succession Planning for Ceos and Boards
aximizing and ensuring member value
requires an ongoing review of the depth of talent in
your credit union as well as the right
complement of skills to lead effectively and navigate changing strategies. As markets become more global
and technology continues to play an
even greater role in strategy, the criteria established for both CEOs and
succession planning candidates
emerges and changes over time.
These skill sets need to be linked
to the strategic plan, performance
reviews as well as the CEO and
board dashboards. It’s the role of
the board to understand key strategic drivers of the credit union one
to two years, three to five years and
five to 10 years out.
Criteria will evolve from these
drivers that will define the required
skills sets for the CEO, CEO succes-
sion candidates and board member
candidates as well. Criteria estab-
lished also will assist in filtering out
certain candidates that do not help
to affirm your chosen strategies. At
the board level, it’s important to ask,
“Am I bringing fresh thinking and do
my skill sets match what’s needed
for the credit union strategically?”
Having succession discussions
on a regular basis takes courage.
“leadership succession”, there are
leading practices in CEO succes-
sion planning, reviewed during
the NACD webinar, that can be ex-
tremely helpful to ensuring that
this process is effective, including
human resources in the develop-
ment of leadership capacity within
the organization, but if the board
never takes responsibility for this
process by owning it and driving
it, it will never happen effectively.
As markets become more global and technology
continues to play an even greater role in strategy, the
criteria established for both CEOs and succession
planning candidates emerges and changes over time
but not limited to: plan three to five
years out; prepare a comprehensive
emergency succession plan; ensure
full board involvement; establish
open and ongoing dialogue with
annual review of CEO and succession candidates; develop and agree
on selection criteria; use formal assessment processes; interact with
internal candidates; develop internal candidates rather than recruit
externally, and have an outgoing
CEO leave or stay on as chair for a
limited time only.
Due to the complexity of this is-
sue, and the required interplay be-
tween the board and the CEO, the
board must own this process. Signif-
icant dollars can be spent through
This process must be linked to HR to
ensure that the leadership legacy of
the company is developed. But the
board must be in control.
Election Might Usher In More Oversight of Regulators
MARX ON CAPITOL
Claude R. Marx
xcept for Newt Gin-grich’s two mischarac-terizations, credit unions
haven’t come up as an issue in this election campaign so far.
That doesn’t mean, however, that
the folks at NCUA headquarters aren’t
keenly interested in the outcome.
As well they should be.
For starters, the person elected
president in November will have the
opportunity to appoint two, possibly
three, members to the NCUA board.
NCUA Chairman Debbie Matz’s
term expires in 2015 and Board Member Michael Fryzel’s term ends next
year. In addition, if Carla Decker (or
someone else) isn’t confirmed this
year to the board to succeed Gigi Hy-land, the man inaugurated as president next January will get to nominate
all three board members.
Because Congress required that
the board have at least one member
from each party, there will be a two
to one partisan breakdown on the
board. We just don’t know which
party will have two seats and which
will have one.
Beyond the personnel shifts, as important as they are,
the election could dramatically shift the messages and
mandates that the agency receives from Capitol Hill.
stitutions to appeal their exam results to an administrative law judge
and mandate that federal bank examiners provide greater documentation of their findings.
Lawmakers of both parties used
the hearing to vent about what they
see as the excesses and arrogance
of regulators. Look for even more
of those kinds of hearings, and the
not-so-subtle message they send to
the NCUA and other agencies, down
That doesn’t mean the bill is likely
if the Republicans keep the House
and win control of the Senate.
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