Top 3 risks of skipping succession planning

All CEOs will inevitably leave their roles.

As experienced professionals approach retirement age and a tight labor market persists, executive succession plans are becoming more important than ever to ensure a culture of stability and limit potential feelings of uncertainty.

Succession planning is not merely about filling a vacant leadership position; it is a strategic process that ensures the seamless transition of leadership while safeguarding the credit union’s mission, expertise and member relationships. CEOs play a pivotal role in shaping the credit union’s vision and direction, and sudden leadership changes can disrupt operations and create uncertainty among employees and members.

Risks of skipping succession planning

Many companies skip succession planning because, frankly, it’s difficult. It requires years of experience and planning to go well and, if handled incorrectly, can put a credit union in a precarious situation. Before diving into the risks associated with skipping succession planning, it’s important to understand what makes the process so challenging to undertake in the first place.

 

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