The board of a mid-sized credit union recognized how the impending planned retirement of their long-term CEO would produce a vacuum in future leadership. Their concern was "do any of the remaining senior managers embody the leadership capacity and capability to lead our credit union?" Learn more about how these problems and more were solved with the help of DDj Myers in the case study. Read more at: www.nafcu.org/ddjmyers/

1. SUCCESSION PLANNING
CASE STUDY – $250M-$1B CREDIT UNION
OBJECTIVE: Credit Union Starts Process to
“The board was seeking
Strengthen Leadership and Bench Strength an ability to move in new
The board of a mid‐sized credit union ways of expansion”
recognized how the impending planned
retirement of their long‐term CEO would
Assessment and analysis of the senior
produce a vacuum in future leadership. Their
management competencies revealed an
concern was "do any of the remaining senior
effective tactical team responsive to
managers embody the leadership capacity problems; they coordinated effectively as a
and capability to lead our credit union?" team and took ideas to completion. The
team’s weaknesses revealed low strength in
The board created a specific competency set
Futuristic Thinking, Innovation, Decision
for the CEO role of the future in alignment
Making and Negotiation; they tended to defer
with the strategic plan. The competency set
all decision‐ making to the CEO and were less
was orientated to taking issues into action
than effective at negotiating commitments or
quickly, nimbleness, and an ability to
moving in creative domains.
influence and inspire a team. Many of the
selected competencies for the incoming CEO There were two internal potential candidates
requirement support development needs in who sought the role of CEO. The succession
the team. planning process revealed that, while they
were able managers of their functional
The board was highly satisfied with their departments, they lacked broader
outgoing CEO; at the same time, the board experiences, decision making experience, and
was seeking an ability to move in new ways of did not measure up in key soft skills required
expansion and in a different commitment to for the role. A partial list of role requirements
decentralized decisions and employee and how some of the candidates presented
development than had occurred in the past. compared is in the table below:
Effectiveness
(55 desired)
Leadership
Employee
Flexibility
Influence
Futuristic
Personal
personal
Decision
Thinking
Making
Inter-
Dev't
Possess very
Level of Mastery HIGH level of
External High
mastery of
Not competency
Larry Leadership Some High High Some Some Some 45
Yet Possess SOME
Carla Candidate Not
High Some Some Some Some Some 40 Some mastery of
Yet competency
Internal Competency
Doug Director Not Not Not Not Yet NOT YET
High Some Some Some 9
Yet Yet Yet mastered
Valerie Vice Pres Not Not Not Not Not Not
High 18
Yet Yet Yet Yet Yet Yet
© DDJ Myers, Ltd., 2011 ddjmyers.com - 800.574.8877 Page 1

2. SUCCESSION PLANNING
CASE STUDY – $250M-$1B CREDIT UNION
Continued from page 1
Internal Candidate #1: Doug External Search
Doug is a learner and historical advancement Nine months before the CEO retirement date,
in his career paralleled ongoing learning and the board initiated an external search.
education. Possessing several required soft During the external search, the internal
skills, we noted his experience was singular, candidates continued to work their
working his way up through lending. His development plan. The board acknowledged a
approach to issues was tactical and reactive fiduciary responsibility to ensure the best
rather than generating enthusiasm and person was recruited or promoted for the CEO
creative options. A Leadership Development role. The board intended, all things equal, an
Plan for Doug emphasized broadening his internal candidate would get the nod.
approach to strategy and initiatives and
increasing employee engagement. The CEO DDJ Myers conducted a nationwide search
and an external leadership coach supported through a vast network, research expertise
Doug in assessing opportunities for and industry knowledge to locate, assess and
development and establishing effective CEO present appropriate candidates. The same
practices. evaluation and assessment process applied
equally for internal and external candidates;
Internal Candidate #2: Valerie using the same process assured consistency
Valerie was technically proficient in her role in knowledge making for all candidates.
and reliable in her work and management.
www.website.com
By comparison, external candidates had varied
Her challenge was to expand her sphere of
influence beyond her immediate direct backgrounds, demonstrated leadership, and
reports. Her strengths are interpersonal skills soft skills that closely matched the role
and an ability to motivate and encourage. A requirements. The board selected an external
Leadership Development Plan for Valerie candidate.
emphasized increased horizontal
opportunities, and active participation in
“Let me say that we are
projects and committees outside her
immediate area. She worked with an
extremely pleased with our
new CEO. He is performing
executive coach with a specialty in advancing
women in leadership.
above our expectations!
With your help, we made an
The board included the internal successors in excellent choice.”
more board meetings for opportunities to
observe. Even before it was time to initiate a
‐Board chair
formal search, the board observed significant
progress in the two candidates in their ability The two internal candidates were recognized
to interact with staff outside of their own for their dramatic improvement, and one has
departments and how they articulated their been identified as a future successor.
ii i b d i
For more information regarding Executive Recruitment or Succession Planning please contact us at 800.574.8877
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