Ask Chuck: Small Credit Union Advice from the CUinsight Community #12

Chuck Cockburn travels across the United States coaching small and mid-size credit union CEOs on how to create a foundation for long-term success. Submit your confidential question to Chuck by emailing AskChuck@CUinsight.com.

Dear Chuck:

I plan to retire as CEO of my credit union in a few years, and I have an excellent employee who has the potential and desire to be my successor. What recommendations do you have that I could use to develop this individual to be qualified for the position?

Signed,

In Need of a Successor (Less than $100 million in assets)

Dear In Need of a Successor:

Based on your resources, you can tackle this challenge by yourself, or with the assistance of a consultant. In either case, there should be two tracks for development: 1) leadership; and 2) technical knowledge. The key for success in both tracks is creating an annual development plan that is agreed upon by you and the employee, and reviewed on a monthly basis. The role of the employee is to create the plan and implement each of the development activities. Your role is to provide coaching and mentoring. My suggestions to include in the plan are as follows:

Leadership:

• Conduct a 360 degree feedback survey about the individual’s leadership performance from their peers, direct reports, and their boss. This will enable you to identify weaknesses that need to be improved. There are several external sources that can be used for this assessment. I have had great success using tools from the Center for Creative Leadership.
• Based upon the survey results, the employee should work on one leadership weakness at a time. Identify resources that address the weakness and provide a coach who is strong in that area. In some cases, the CEO is the coach; in other cases it could be another leader within the credit union.
• Provide the individual with leadership development assignments. For example, expand their managerial responsibilities to include other departments; have them serve as a team leader for implementing board directed strategic projects.
• Include in the annual development plan exposure to the credit union’s board and other officials. Also, expose the individual to the board through presentations at the monthly meeting and planning conference.

Technical Skills:

• Identify the key technical areas critical to leading the credit union. This includes financial analysis, marketing, human resources, lending, operations, etc.
• For each technical area, determine the knowledge and skills of the employee, and prioritize those areas in greatest need of improvement.
• Identify development opportunities for the employee to obtain the knowledge and skills.
• Develop a detailed plan. This can include job assignments, conferences, webinars, etc.

In summary, the development of a successor is part of your overall responsibility as CEO. This can also be a very rewarding experience, and will ensure the success of the credit union for many years into the future. The process requires effective planning and a commitment by both you as the CEO, and the employee you select to develop as your successor. The employee’s ownership of the plan is an opportunity for the individual to demonstrate leadership and for you to evaluate if you made the right selection.

Chuck is the President of Credit Union Strategic Planning, leading the Net Worth Restoration, Field of Membership Expansion, Board Governance and Small Credit Union CEO Mentorship Programs. Chuck’s 25-year CEO track record (and 40 in the business) has been to profitably grow credit unions while significantly improving service and morale. Chuck’s coaching resulted in eight prior direct reports becoming credit union CEOs.