VIENNA, Austria–Succession planning isn’t just for CEOs—it’s for credit union boards, too.
One credit union board member who also runs a company that offers succession planning consulting, told a group made up of large of CU volunteers from around the world that there are practices for board succession planning that they should have in place.
Dan Strandy, a board member with Seattle-based Verity Credit Union and CEO of Essential Elements Consulting, told WOCCU’s World Credit Union Conference here that there are some checklists they should keep in mind.
For instance, when recruiting new board members, key attributes that should be sought include, according to Strandy:
Interpersonal competencies.
- Strategic thinking. Board members must understand and process complex information and provide guidance and direction with long-term focus
- Mental agility. Candidates must have the ability to operate effectively in ambiguous or changing situations
- Continuous learning. Board members need to be able to identify and address learning and development needs
- Interactive communication. Board members must listen to others and foster open communication
- Collaboration. Candidates must help maintain a collegial atmosphere
There is also a checklist for board member candidates when it comes to performance competencies, according to Strandy, including:
- Critical thinking and decision-making. This includes the ability to analyze information and think beyond the current state of the credit union
- Risk Oversight. This is about the ability to identify and assess risk while striving to attain CU objectives, such as cybersecurity
- Governance. This attribute requires the ability to understand the role of the board and how it differs from the CEO
- Financial literacy. Board members must be able to understand key financial ratios, statements, and other data to oversee performance and identify opportunities
In Verity Credit Union’s case, Strandy said it has published an “Exceptional Board Competencies Guidance Document.”