board succession planning its finest€¦ · succession planning/recruitment name tenure skills...

HCUL 80th Annual Convention May 19, 2018

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Board Succession Planning at Its Simplest & Finest

Kevin Smith, Publisher/[email protected]

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13 years’ experience in CUs

10 years at CUNA as Director of Volunteer Education

Speaker/Trainer

Strategic Planner

Implements Board Evaluations

Supervisory Committee Member

About Kevin Smith


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Succession Planning/Recruitment

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What I typically see in the industry:

Both are dangerous!

We’ll take anyone willing/breathing.

Zero Turnover ‐What’s Succession?

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Dangers of poor or absent planning:

Irrelevance

Stagnation

Disappearance

Or all three above and others!


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What is better:

Succession that is –

Carefully thought out

Intentional Active/updated & tweaked

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“Your business’s greatest asset is not your people.

Your business’s greatest asset is the right people.”

Peter Drucker

The continued survival of the organization depends on

having the right people in the right places at the right

time.


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Process

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1. Create a director job description that is thorough, mapping out a full year’s worth of activities. It should include specifics about your organization as well as the expectations you have for directors, such as:• How many meetings are required annually• How much time is expected (roughly) outside of the boardroom (preparation, self‐evaluation, etc.)• Training/educational requirements (and appropriatebudgets)• Etc.

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2. Create a succession spreadsheet (matrix)• Discuss with current directors how long they intend toremain on the board.• List skills that each director brings to the board• List skills that the board would like to see on the board• Look for gaps• Determine who is to manage recruitment efforts. (It isour opinion that this should be a requirement for ALLdirectors, but is the direct responsibility of the Nominating &Recruitment Committee.)• Develop an “evergreen” list of potential candidates.• Consider having both Assoc. Dir. program & Emeritus Dir. program.• Create a template with skills, demographics and tenure.

Process


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• Age• Gender• Ethnicity• Professional Experience• Working Style• What else?*

How are you achieving this?

Does everyone agree that this is important?

Diversity(The value cannot be overstated)

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We do NOT endorse term limits – we endorse Self –evaluations!

Advantages:• Good level of turnover• Prevent stagnation• 3‐4 terms, of 3 years each allows time to learn w/o becoming entrenched

• Age limits also promote turnover & are common in for profit sector

Have a Discussion About It!!!

Term Limits/Age Limits


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11Have a Discussion

About It!!!

Term Limits/Age Limits

Disadvantages:

• Removes productive directors as well as unproductive ones

• Long learning curve for volunteers

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Create a spreadsheet of current directors:

• Tenure• Demographics• Skills• Estimated time remaining (YES! Ask and get an answer. It’s an estimate, not a legal document!)

Determine Where You Stand


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Succession Planning/RecruitmentName Tenure Skills Demog. Est. Exit

DateOther

Alvin Aires

20 years CPA BoomerMaleWhite

2018

Brenda Brennan

17 years Local Business

Gen XFemaleAfrican American

Unknown.>2020

CecilCethsmith

10 years SchoolBoard (SEG)

BoomerMaleHispanic

2021

DamonDoolitle

2 years Attorney MillenialMaleWhite

2025

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Simply this:

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Create it

Monitor it


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Recruitment and Cultivation

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• Nominating/Governance Committee

• Committee members can be assigned to identify prospects

• Ad hoc committee ‐Standing committee

• Require each board member to invite one prospect to a board meeting annually

• Newsletter and website, include invitations to inquire about volunteering at the CU

• Keep banners of Volunteer Spirit of CUs in Lobby

• Make the position enticing. Share your passion –and maybe a travel and training budget.


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Nominating Committee, Governance Committee, Board Development Committee

• Recruit new members and ensure each is equipped with tools and motivation to carry out responsibilities.

• Assess board’s current composition, identify missing qualities and characteristics

• Draft recruitment plan and continuously cultivate new prospects

• Develop job descriptions for board members

• Orient new members and continue educating all members on their responsibilities

• Ensure that board regularly engages in self‐assessment

BoardSource.org


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Direct Recruitment

• Identify key needs on the board

• Financial, H/R, Legal, Management, Sponsor Ambassadors, Community contacts, etc.

• Actively contact prospects and ask them to consider volunteering

• Network (universities, church, work, community organizations)

• Allow staff to recommend people they think might make good directors

• Have a job description

• Highlight benefits of CU and Movement

Preferred (basic) Board Member Characteristics

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• Openness to learning, unlearning and relearning

• Understand the basic financial well‐being (or lack thereof) of a credit union

• Openness to learning, unlearning and relearning

• Understand the basic financial well‐being (or lack thereof) of a credit union

• Willingness to ask penetrating questions RESPECTFULLY

• Ability to disagree diplomatically


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Desired (additional) Board Member Characteristics

Ask yourselves:

What specific traits do you want to see represented on your board?

What do you currently have?

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What are the gaps?• CPA

• Lawyer

• SEG representative

• Local business

• Other?


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Direct RecruitmentBe prepared to answer these 5 questions

1. What do you want me to do?

2. What info and assistance will be provided?

3. How will I know I’m doing this right?

4. What good is the CU doing?

5. How much time it will take?

Look at it through their eyes.


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Recruitment & Cultivation

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How can we cultivate future

directors?

• Supervisory Committee (Boo!)

• Other Committees

• Ambassador/Advisory/Associate Directors

Associate Director Program

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• “Directors in Training” – people with potential• Renewable, one‐year terms• Take part in discussion, but cannot vote• Shortens the learning curve of directors• Establishes a “good fit” before too much commitment


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Best Practices:

• Active participants vs. passive listeners• Don’t wear them out before giving them a seat• Let them see viable option for board seat (not endless associate position)

• Provide some perks (i.e. travel/training budget• Others?

Associate Director Program

Emeritus Director Program

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• Honorary seat for retired directors

• Rare (not assumed for ALL members)

• Renewable, one‐year terms (some limit this to 3)

• Take part in discussion, but cannot vote


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Emeritus Director Program

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• Healthy, intentional turnover

• Maintains knowledge base of board

• Lessens expectations & demands on long‐serving member

Succession Planning/Recruitment

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What are you doing that we’ve not covered?

What works well?

What failed? (Tell us your cautionary tales.)


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Kevin SmithPublisher/Consultant

Ksmith@forTeamResources.com608-217-0556800-788-9542www.forTeamResources.comwww.linkedin.com/in/kevin-smith-8a52798

board succession planning its finest€¦ · succession planning/recruitment name tenure skills...

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