Credit Union Navigating Succession Planning

Customer Story - Credit Union Navigating Succession Planning

A Midwest credit union recognized the necessity of developing a robust succession plan to ensure continuity and stability within the organization. Previously, the absence of a well-defined plan had led to significant challenges, highlighting the importance of having a comprehensive strategy in place. By addressing this need, the credit union aimed to safeguard its future and streamline the transition process for key leadership roles.

Call For Help:

• The credit union recently replaced their CEO, which proved to be a challenging process for both the leadership team and the board.
• The difficulties were significant enough that the board considered a merger if faced with a similar situation in the future.
• Additionally, NCUA examiners identified the absence of a succession plan, prompting the new CEO to develop a plan that meets NCUA requirements and ensures the future security of the credit union.

FarWell Advisor Support:

• Collaborated with the CEO to gain a deeper understanding of the organization.
• Defined the key individuals who would be included in the succession plan.
• Conducted comprehensive interviews across the organization to assess existing plans at various levels. Identified significant gaps and provided recommendations on how to address them.
• Created and delivered a document that addressed succession planning at the following levels:
  
  1. Board Succession: Immediate and Planned
  2. CEO Succession: Immediate and Planned
  3. Entire staff (from CEO to Tellers) Succession Plan: Immediate and Planned
  4. Addressed onboarding and offboard of information and processes
  5. Addressed gaps in knowledge management with recommendations on how to amend
  6. Created a 1-year roadmap to address the needs identified through the process‍

Results:

The CEO is confident that the credit union is now in a stronger position and its future is secure thanks to this plan.

• The credit union successfully passed the NCUA exam, and the examiner had no questions regarding the succession planning section.