This is a process that the board should regularly discuss and update. Only then is it possible to create a positive succession culture that allows the board to react wisely and in a timely manner when it needs to support the present CEO or to choose the next leader.
Succession planning is a process for ensuring that the most qualified person is always running the credit union — not necessarily to groom a successor or determine ahead of time who the next CEO should be. A good plan proposes guidelines and options for action when that action is necessary. The steps of the plan are activated when it is clear the present CEO is leaving suddenly or when the departure is planned.
A succession plan should include the following elements:
Every CEO leaves the organization sooner or later. By having a process in place, the board can avoid knee-jerk solutions or making quick-fix decisions. Being prepared allows the board to save time as it does not have to start by "planning the plan." It can immediately focus on pre-evaluated options. By maintaining succession planning as a part of its regular strategic planning approach, the board can reduce the human drama of a leadership transition and approach the future with structure and direction.