Board Oversight Best Practices in - PowerPoint PPT Presentation


Title: Board Oversight Best Practices in


1
Board Oversight Best Practices in CEO
Evaluation, Compensation and Succession
Planning Presented by HRValue Group, LLC
2
Presenter
Michael Dougal, SPHR Director, HR
Consulting HRValue Group, LLC
3
HRValue Group
  • Human resource consulting company
  • Owned by a consortium of State Credit Union
    Leagues and CUNA Mutual Group
  • Dedicated exclusively to providing HR support to
    the credit union industry

4
HRVGs Products And Services
  • Executive Search
  • Staff Recruiting
  • Virtual HR
  • Compensation System Design
  • Benefits Analysis
  • Human Resource Policy Development
  • Employee Handbook Development
  • Performance Management Programs
  • Organizational Structure Analysis
  • HR Assessments/Audits
  • Employee Opinion Surveys
  • Training Programs

5
Presentation Objectives
  • List the characteristics of successful CEO
    assessment processes
  • Review Board and CEO responsibilities for
    performance management
  • Discuss the main components of executive
    compensation
  • Review the importance of a compensation
    philosophy
  • Review the business reasons for creating a
    succession plan
  • Identify the components of a good succession plan
  • Understand the steps required to do a succession
    plan

6
Organizational Value
  • For credit unions, there are three critical
    components that make up Organizational Value
  • Strong financial bottom line
  • Superior service to the members
  • Motivated, satisfied workforce

7
Organizational Value
  • The decisions that Directors make can affect
  • Strong financial bottom line
  • Superior service to the members
  • Motivated, satisfied workforce
  • And CEO performance evaluation, compensation and
    succession planning is certainly no exception!

8
  • Your decisions regarding evaluation, compensation
    and succession planning should align with your
    organizations culture.

9
What is Your Culture?
  • Four Common Cultures
  • Clan Culture
  • Adhocracy Culture
  • Hierarchy Culture
  • Market Culture

10
Clan Culture
  • Characteristics
  • Focuses on internal issues, but values discretion
  • Manage environment through teamwork
  • Relationships and teamwork, rather than
    hierarchy, are predominant
  • Family business feel
  • Example Southwest Airlines

11
Adhocracy Culture
  • Characteristics
  • Focuses on external environment
  • Values flexibility and discretion
  • Key values are freedom, creativity and
    risk-taking
  • Entrepreneurial environment
  • Example Apple Computer

12
Hierarchy Culture
  • Characteristics
  • Focuses more on internal than external issues
  • Values stability and control over flexibility
  • Formal structures, policies and procedures
  • Efficient, reliable operations
  • Management style conformity
  • Example McDonalds

13
Market Culture
  • Characteristics
  • Focuses on external issues, but values stability
    and control
  • Strong sense of mission/customers
  • Productivity, consistency and results
  • Best practices and benchmarking very important
  • Example General Electric

14
Performance Evaluation
15
Why Be Concerned About Evaluating Your CEO?
  • Health of the credit union
  • Pay adjustments
  • Bonus/Incentive payments
  • Protect the credit union/Litigation
  • Your CEO wants to know how he/she is doing!

16
Common Pitfalls
  • Failure to set (negotiate) clear, measurable
    goals with the CEO
  • Micro managing by the board (focusing too much on
    the hows and not the whats)
  • Allowing subjectivity to cloud objective results
  • Avoiding tough issues until the annual review
  • Assuming goals are static
  • Failure to check in with the CEO on a regular
    basis
  • Not gaining board agreement on the goals

17
Quote
  • Evaluations with noconnection to strategic
    goals have little value
  • -- John Carver

18
Characteristics of a Successful Process
  • Based on shared, agreed upon goals
  • Goals are clear and aligned with the strategy
  • Objective evaluation
  • Flexible goals
  • Ongoing feedback mechanisms
  • Goal achievement is tied to some type of
    incentive or reward

19
Board Responsibilities
  • Determine and prioritize the CEOs goals
    according to the strategic plan
  • Executive or Personnel Committee drafts the
    initial performance plan/tool
  • Review draft with CEO and get feedback adjust
  • Then get entire Board approval on the final plan
    so you speak with a single voice
  • Communicate the final plan to the CEO

20
Board Responsibilities
  • On-going communication with the CEO
  • Communicate directly with the CEO when
    performance is not meeting expectations
  • Conduct timely and thoughtful performance
    evaluations at least once a year
  • Recognize and reward performance

21
CEO Responsibilities
  • Review the goals, ask questions, and provide
    feedback on viability of meeting goals in
    planning stage
  • Review performance plan on an ongoing basis to
    ensure you and staff are meeting goals and credit
    union objectives
  • Communicate periodically with the Board about
    progress

22
CEO Responsibilities
  • Provide Board with internal reports for
    monitoring progress
  • Communicate external factors or trends that may
    impact the plan
  • Identify barriers that may be hindering progress

23
Three Components of the Process
  • Planning (Goal Setting)
  • Monitoring(Ongoing Feedback)
  • Assessing Performance (The Annual Appraisal)

24
Planning
  • What is expected must precede monitoring
  • Is the vision and mission articulated in writing?
  • Are goals established and prioritized?
  • Have measures of success been articulated in
    writing?
  • Are policies in place to control and direct
    activities?
  • John Carver, Reinventing Your Board

25

Monitoring
  • Three vehicles for monitoring
  • Internal Reports from the CEO
  • External Reports from 3rd Parties
  • Direct Board Observation/Interaction

26

Monitoring
  • Evaluate and Adjust
  • Track key performance areas
  • Keep abreast of changing trends, the economy,
    products/services, delivery, etc.
  • Adjust goals to meet changing needs of members

27
Monitoring
  • Periodic Reviews
  • Guidelines
  • Keep it informal but focused
  • Stay focused on the whats not the hows
  • Board should identify actions they can take to
    support goal achievement

28
Assessing Performance
Definition The process of guiding CEO
contributions toward credit union objectives
through a series of year-long activities.

29
Assessing Performance
  • The best appraisals
  • Do not focus on numbers only
  • Cover all important areas of performance
  • Are based on specific performance objectives
    focused on results
  • Are based on year-round data gathering
  • Are truly participative and positive
  • Respect the nature of the meeting
  • Build in flextime

30
Assessing Performance
  • Delivering the review who should be involved?
  • Whole Board
  • Executive Committee
  • Compensation Committee
  • Board Chair

31
Benefits of a CEO Assessment Process
  • Creates a partnership environment with CEO
  • Creates a clear articulation of the results the
    board expects
  • Encourages better communication between board and
    CEO
  • Aligns the CEO priorities with the strategic plan
  • Establishes quantitative/qualitative basis for
    pay increases and bonuses

32
Quote
  • In the long run, no one really careswhether the
    Board evaluated the CEO well enough. What
    matters in the long run is,did the credit union
    achieve what itshould for its members without
    being unethical and imprudent.
  • -- John Carver

33
Compensation
34
CEO Turnover
  • It is estimated that in the next 10 years, 50-60
    of credit union CEOs will retire.
  • And how many will leave due to dissatisfaction or
    non-performance?
  • What will you do to attract a new CEO or keep
    your current CEO?

35
Having the right total compensation package could
make the difference between attracting and
retaining The best of the best vs The
best of the unemployed
36
The pay package for executives differs from that
of other employees in several ways
  • Criteria used to gauge appropriate levels of base
    compensation
  • Frequent use of short-term and long-term
    incentives
  • Non-cash entitlements or perks
  • Employment contracts
  • Deferred compensation

37
Elements of Executive Compensation Programs
  • Base Salary
  • Short-term Incentives or Bonuses
  • Long-term Incentives
  • Employee Benefits
  • Perks
  • Recognition
  • Executive Benefits

38
Determining Base Compensation
  • Board must develop a philosophy
  • Elements to consider
  • 1. Asset size
  • 2. FTE size
  • 3. Loan Portfolio size
  • 4. Membership size
  • 5. Services
  • Determine weight of each factor
  • Compare to peers?
  • Include comparison to bank?

39
Incentives / Bonuses
  • Bonus - additional cash compensation provided at
    the discretion of the organization
  • Incentives - additional cash compensation based
    on the achievement of pre-determined goals

Two types of incentives Short-term - One year
or less Long-term - More than one year
40
Factors for DeterminingBonus/Incentive Awards
  • Earnings 54.2
  • Board Evaluation 53.4
  • Loan Growth 32.6
  • CAMEL Rating 21.5
  • Member Satisfaction 20.9

41
Common Benefits and Perks
  • Standard Employee Benefits
  • Auto Use
  • Mobile phones
  • Paid education benefits
  • Supplemental Life Insurance
  • Paid/unpaid sabbatical

42
Common Benefits and Perks
  • Spouse travel expense
  • Employment Contract
  • Full Health Care Premium Paid
  • Executive Long Term Disability
  • Health Club or Country Club Membership

43
Feedback and Recognition
  • It is just as important for the Board of
    Directors to provide the CEO with feedback and
    recognition as it is for a manager/supervisor of
    the credit union to do the same for their
    employees.

44
Deferred Compensation Programs
  • Credit union financed programs
  • Executive financed programs

45
Deferred Compensation Programs
  • SERPs (Supplemental Exec Retirement Plan)
  • 457(f)
  • Split Dollar Life
  • 457(b)
  • Executive Bonus Plan

46
How Should Boards Proceed?
  • Identify the participants
  • Identify the gaps
  • Work with advisors
  • Develop solutions
  • Take board action
  • Implement plans

47
Succession Planning
48
Where Do Credit Unions Prefer To Recruit CEO
Successors?
  • 46 give preference to internal candidates
  • 40 give equal preference to internal and
    external candidates
  • 8 give preference to external candidates
  • CUNA and Affiliates Salary Survey Report

49
Where Are CEOs Actually Recruited?
  • 33 are promoted internally
  • 33 recruited from other CUs
  • 34 other

CUNA and Affiliates Salary Survey Report
50
Implications For Succession Planning
  • If most Credit Unions prefer filling CEO
    positions from the inside, why are only 1/3 of
    the CEO positions actually filled by an internal
    candidate?

51
Benefits of a Succession Plan
  • Ensure continuous quality service
  • Anticipate future position needs
  • Identify and prepare internal successors for
    advancement opportunities

52
Benefits of a Succession Plan
  • Fills vacancies with internal candidates where
    appropriate
  • Hires and grooms future leadership
  • Identifies leadership gaps that could create a
    risk
  • Utilizes professional development investments
    more effectively

53
Elements Of A Succession Plan
  • Goals and administrative guidelines
  • Organizational (successor) chart
  • Up-to-date job descriptions
  • Professional development plans for each successor
  • Communication plan
  • Maintenance schedule

54
Common Mistakes
  • Not aligned with the strategic plan
  • Incomplete and under-funded professional
    development
  • Lack of appropriate rigor in the assessment of
    possible successors
  • The process is not on-going
  • Lack of Board involvement

55
Succession Planning Steps
  • Establish succession planning goals
  • Align with strategic plan
  • Identify and assess potential successors
  • Create development plans
  • Finalize succession plan document
  • Update annually

56
Establish Succession Planning Goals
  • Emergency SP?
  • Planned SP?
  • Both?
  • Positions targeted for succession?
  • Professional development?

57
Align with theStrategic Plan
  • Review strategic plan
  • Determine impact the strategic plan has on future
    structure and roles
  • Update position descriptions to reflect strategic
    plan

58
Identify And Assess Potential Successors
  • Review organization to identify potential
    internal successors
  • Assess skills and capabilities of each potential
    internal successor
  • Create capabilities report on each potential
    successor
  • Create successor organization chart (see next
    page)

59
Sample Chart
Readiness codes 1 Immediate 2 Within 12-18
months 3 Within 24-36 months 4 Too early to
assess
60
Create Development Plans
  • Identify strengths and developmental needs
  • Determine critical development needs
  • Identify appropriate development options to suit
    development needs
  • Set completion dates
  • Include plans in performance management process

61
Finalize Succession Plan Document
  • Goals and administrative guidelines
  • Successor depth chart with job descriptions
  • Professional development plans
  • Process for planned and unplanned vacancies
  • Internal and external interim alternatives
  • Potential funding requirements
  • Communication plans

62
Emergency Succession
  • Management team pre-identified by the Board
    responsible for Credit Union operations until
    Board appoints interim President/CEO
  • Management team addresses immediate needs,
    including internal communications, if they cant
    wait for an emergency Board meeting

63
Emergency Succession
  • Board meets within 24 hours of event to
  • ensure stability
  • set direction
  • communicate the events
  • Board meets within a week to agree on interim
    President/CEO
  • Board puts into motion the recruitment process
  • Board approves recruitment and funding

64
Emergency Succession
Without a plan, the right people properly
prepared, the right outside resources available,
and the money to implement, succession will be
chaotic, hurting the Credit Union, the members,
and the employees.

65


HRValue Group, LLC 15800 Haggerty Rd. Plymouth,
MI 48170 Phone 888-272-4598 www.hrvaluegroup.com
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Board Oversight Best Practices in

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Title: Board Oversight Best Practices in


1
Board Oversight Best Practices in CEO
Evaluation, Compensation and Succession
Planning Presented by HRValue Group, LLC
2
Presenter
Michael Dougal, SPHR Director, HR
Consulting HRValue Group, LLC
3
HRValue Group
  • Human resource consulting company
  • Owned by a consortium of State Credit Union
    Leagues and CUNA Mutual Group
  • Dedicated exclusively to providing HR support to
    the credit union industry

4
HRVGs Products And Services
  • Executive Search
  • Staff Recruiting
  • Virtual HR
  • Compensation System Design
  • Benefits Analysis
  • Human Resource Policy Development
  • Employee Handbook Development
  • Performance Management Programs
  • Organizational Structure Analysis
  • HR Assessments/Audits
  • Employee Opinion Surveys
  • Training Programs

5
Presentation Objectives
  • List the characteristics of successful CEO
    assessment processes
  • Review Board and CEO responsibilities for
    performance management
  • Discuss the main components of executive
    compensation
  • Review the importance of a compensation
    philosophy
  • Review the business reasons for creating a
    succession plan
  • Identify the components of a good succession plan
  • Understand the steps required to do a succession
    plan

6
Organizational Value
  • For credit unions, there are three critical
    components that make up Organizational Value
  • Strong financial bottom line
  • Superior service to the members
  • Motivated, satisfied workforce

7
Organizational Value
  • The decisions that Directors make can affect
  • Strong financial bottom line
  • Superior service to the members
  • Motivated, satisfied workforce
  • And CEO performance evaluation, compensation and
    succession planning is certainly no exception!

8
  • Your decisions regarding evaluation, compensation
    and succession planning should align with your
    organizations culture.

9
What is Your Culture?
  • Four Common Cultures
  • Clan Culture
  • Adhocracy Culture
  • Hierarchy Culture
  • Market Culture

10
Clan Culture
  • Characteristics
  • Focuses on internal issues, but values discretion
  • Manage environment through teamwork
  • Relationships and teamwork, rather than
    hierarchy, are predominant
  • Family business feel
  • Example Southwest Airlines

11
Adhocracy Culture
  • Characteristics
  • Focuses on external environment
  • Values flexibility and discretion
  • Key values are freedom, creativity and
    risk-taking
  • Entrepreneurial environment
  • Example Apple Computer

12
Hierarchy Culture
  • Characteristics
  • Focuses more on internal than external issues
  • Values stability and control over flexibility
  • Formal structures, policies and procedures
  • Efficient, reliable operations
  • Management style conformity
  • Example McDonalds

13
Market Culture
  • Characteristics
  • Focuses on external issues, but values stability
    and control
  • Strong sense of mission/customers
  • Productivity, consistency and results
  • Best practices and benchmarking very important
  • Example General Electric

14
Performance Evaluation
15
Why Be Concerned About Evaluating Your CEO?
  • Health of the credit union
  • Pay adjustments
  • Bonus/Incentive payments
  • Protect the credit union/Litigation
  • Your CEO wants to know how he/she is doing!

16
Common Pitfalls
  • Failure to set (negotiate) clear, measurable
    goals with the CEO
  • Micro managing by the board (focusing too much on
    the hows and not the whats)
  • Allowing subjectivity to cloud objective results
  • Avoiding tough issues until the annual review
  • Assuming goals are static
  • Failure to check in with the CEO on a regular
    basis
  • Not gaining board agreement on the goals

17
Quote
  • Evaluations with noconnection to strategic
    goals have little value
  • -- John Carver

18
Characteristics of a Successful Process
  • Based on shared, agreed upon goals
  • Goals are clear and aligned with the strategy
  • Objective evaluation
  • Flexible goals
  • Ongoing feedback mechanisms
  • Goal achievement is tied to some type of
    incentive or reward

19
Board Responsibilities
  • Determine and prioritize the CEOs goals
    according to the strategic plan
  • Executive or Personnel Committee drafts the
    initial performance plan/tool
  • Review draft with CEO and get feedback adjust
  • Then get entire Board approval on the final plan
    so you speak with a single voice
  • Communicate the final plan to the CEO

20
Board Responsibilities
  • On-going communication with the CEO
  • Communicate directly with the CEO when
    performance is not meeting expectations
  • Conduct timely and thoughtful performance
    evaluations at least once a year
  • Recognize and reward performance

21
CEO Responsibilities
  • Review the goals, ask questions, and provide
    feedback on viability of meeting goals in
    planning stage
  • Review performance plan on an ongoing basis to
    ensure you and staff are meeting goals and credit
    union objectives
  • Communicate periodically with the Board about
    progress

22
CEO Responsibilities
  • Provide Board with internal reports for
    monitoring progress
  • Communicate external factors or trends that may
    impact the plan
  • Identify barriers that may be hindering progress

23
Three Components of the Process
  • Planning (Goal Setting)
  • Monitoring(Ongoing Feedback)
  • Assessing Performance (The Annual Appraisal)

24
Planning
  • What is expected must precede monitoring
  • Is the vision and mission articulated in writing?
  • Are goals established and prioritized?
  • Have measures of success been articulated in
    writing?
  • Are policies in place to control and direct
    activities?
  • John Carver, Reinventing Your Board

25

Monitoring
  • Three vehicles for monitoring
  • Internal Reports from the CEO
  • External Reports from 3rd Parties
  • Direct Board Observation/Interaction

26

Monitoring
  • Evaluate and Adjust
  • Track key performance areas
  • Keep abreast of changing trends, the economy,
    products/services, delivery, etc.
  • Adjust goals to meet changing needs of members

27
Monitoring
  • Periodic Reviews
  • Guidelines
  • Keep it informal but focused
  • Stay focused on the whats not the hows
  • Board should identify actions they can take to
    support goal achievement

28
Assessing Performance
Definition The process of guiding CEO
contributions toward credit union objectives
through a series of year-long activities.

29
Assessing Performance
  • The best appraisals
  • Do not focus on numbers only
  • Cover all important areas of performance
  • Are based on specific performance objectives
    focused on results
  • Are based on year-round data gathering
  • Are truly participative and positive
  • Respect the nature of the meeting
  • Build in flextime

30
Assessing Performance
  • Delivering the review who should be involved?
  • Whole Board
  • Executive Committee
  • Compensation Committee
  • Board Chair

31
Benefits of a CEO Assessment Process
  • Creates a partnership environment with CEO
  • Creates a clear articulation of the results the
    board expects
  • Encourages better communication between board and
    CEO
  • Aligns the CEO priorities with the strategic plan
  • Establishes quantitative/qualitative basis for
    pay increases and bonuses

32
Quote
  • In the long run, no one really careswhether the
    Board evaluated the CEO well enough. What
    matters in the long run is,did the credit union
    achieve what itshould for its members without
    being unethical and imprudent.
  • -- John Carver

33
Compensation
34
CEO Turnover
  • It is estimated that in the next 10 years, 50-60
    of credit union CEOs will retire.
  • And how many will leave due to dissatisfaction or
    non-performance?
  • What will you do to attract a new CEO or keep
    your current CEO?

35
Having the right total compensation package could
make the difference between attracting and
retaining The best of the best vs The
best of the unemployed
36
The pay package for executives differs from that
of other employees in several ways
  • Criteria used to gauge appropriate levels of base
    compensation
  • Frequent use of short-term and long-term
    incentives
  • Non-cash entitlements or perks
  • Employment contracts
  • Deferred compensation

37
Elements of Executive Compensation Programs
  • Base Salary
  • Short-term Incentives or Bonuses
  • Long-term Incentives
  • Employee Benefits
  • Perks
  • Recognition
  • Executive Benefits

38
Determining Base Compensation
  • Board must develop a philosophy
  • Elements to consider
  • 1. Asset size
  • 2. FTE size
  • 3. Loan Portfolio size
  • 4. Membership size
  • 5. Services
  • Determine weight of each factor
  • Compare to peers?
  • Include comparison to bank?

39
Incentives / Bonuses
  • Bonus - additional cash compensation provided at
    the discretion of the organization
  • Incentives - additional cash compensation based
    on the achievement of pre-determined goals

Two types of incentives Short-term - One year
or less Long-term - More than one year
40
Factors for DeterminingBonus/Incentive Awards
  • Earnings 54.2
  • Board Evaluation 53.4
  • Loan Growth 32.6
  • CAMEL Rating 21.5
  • Member Satisfaction 20.9

41
Common Benefits and Perks
  • Standard Employee Benefits
  • Auto Use
  • Mobile phones
  • Paid education benefits
  • Supplemental Life Insurance
  • Paid/unpaid sabbatical

42
Common Benefits and Perks
  • Spouse travel expense
  • Employment Contract
  • Full Health Care Premium Paid
  • Executive Long Term Disability
  • Health Club or Country Club Membership

43
Feedback and Recognition
  • It is just as important for the Board of
    Directors to provide the CEO with feedback and
    recognition as it is for a manager/supervisor of
    the credit union to do the same for their
    employees.

44
Deferred Compensation Programs
  • Credit union financed programs
  • Executive financed programs

45
Deferred Compensation Programs
  • SERPs (Supplemental Exec Retirement Plan)
  • 457(f)
  • Split Dollar Life
  • 457(b)
  • Executive Bonus Plan

46
How Should Boards Proceed?
  • Identify the participants
  • Identify the gaps
  • Work with advisors
  • Develop solutions
  • Take board action
  • Implement plans

47
Succession Planning
48
Where Do Credit Unions Prefer To Recruit CEO
Successors?
  • 46 give preference to internal candidates
  • 40 give equal preference to internal and
    external candidates
  • 8 give preference to external candidates
  • CUNA and Affiliates Salary Survey Report

49
Where Are CEOs Actually Recruited?
  • 33 are promoted internally
  • 33 recruited from other CUs
  • 34 other

CUNA and Affiliates Salary Survey Report
50
Implications For Succession Planning
  • If most Credit Unions prefer filling CEO
    positions from the inside, why are only 1/3 of
    the CEO positions actually filled by an internal
    candidate?

51
Benefits of a Succession Plan
  • Ensure continuous quality service
  • Anticipate future position needs
  • Identify and prepare internal successors for
    advancement opportunities

52
Benefits of a Succession Plan
  • Fills vacancies with internal candidates where
    appropriate
  • Hires and grooms future leadership
  • Identifies leadership gaps that could create a
    risk
  • Utilizes professional development investments
    more effectively

53
Elements Of A Succession Plan
  • Goals and administrative guidelines
  • Organizational (successor) chart
  • Up-to-date job descriptions
  • Professional development plans for each successor
  • Communication plan
  • Maintenance schedule

54
Common Mistakes
  • Not aligned with the strategic plan
  • Incomplete and under-funded professional
    development
  • Lack of appropriate rigor in the assessment of
    possible successors
  • The process is not on-going
  • Lack of Board involvement

55
Succession Planning Steps
  • Establish succession planning goals
  • Align with strategic plan
  • Identify and assess potential successors
  • Create development plans
  • Finalize succession plan document
  • Update annually

56
Establish Succession Planning Goals
  • Emergency SP?
  • Planned SP?
  • Both?
  • Positions targeted for succession?
  • Professional development?

57
Align with theStrategic Plan
  • Review strategic plan
  • Determine impact the strategic plan has on future
    structure and roles
  • Update position descriptions to reflect strategic
    plan

58
Identify And Assess Potential Successors
  • Review organization to identify potential
    internal successors
  • Assess skills and capabilities of each potential
    internal successor
  • Create capabilities report on each potential
    successor
  • Create successor organization chart (see next
    page)

59
Sample Chart
Readiness codes 1 Immediate 2 Within 12-18
months 3 Within 24-36 months 4 Too early to
assess
60
Create Development Plans
  • Identify strengths and developmental needs
  • Determine critical development needs
  • Identify appropriate development options to suit
    development needs
  • Set completion dates
  • Include plans in performance management process

61
Finalize Succession Plan Document
  • Goals and administrative guidelines
  • Successor depth chart with job descriptions
  • Professional development plans
  • Process for planned and unplanned vacancies
  • Internal and external interim alternatives
  • Potential funding requirements
  • Communication plans

62
Emergency Succession
  • Management team pre-identified by the Board
    responsible for Credit Union operations until
    Board appoints interim President/CEO
  • Management team addresses immediate needs,
    including internal communications, if they cant
    wait for an emergency Board meeting

63
Emergency Succession
  • Board meets within 24 hours of event to
  • ensure stability
  • set direction
  • communicate the events
  • Board meets within a week to agree on interim
    President/CEO
  • Board puts into motion the recruitment process
  • Board approves recruitment and funding

64
Emergency Succession
Without a plan, the right people properly
prepared, the right outside resources available,
and the money to implement, succession will be
chaotic, hurting the Credit Union, the members,
and the employees.

65


HRValue Group, LLC 15800 Haggerty Rd. Plymouth,
MI 48170 Phone 888-272-4598 www.hrvaluegroup.com
About PowerShow.com