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Austin, Michael J. and Thomas N. Gilmore. 1993. ‘‘Executive Exit: Multiple Perspectives

on Managing the Leadership Transition.‘‘ Administration in Social

Work, vol. 17 (1): 47–60.

Case Studies on Succession Planning and Management 353

Bardach, Eugene.1977. The Implementation Game: What Happens After a Bill

Becomes a Law. Cambridge, MA: MIT Press.

Farquhar, Katherine. 1991. ‘‘Leadership in Limbo: Organization Dynamics During

Interim Administrations.’’ Public Administration Review, vol. 51 (3): 210.

Farquhar, Katherine. 1996. ‘‘A Tough Act to Follow: Traumatic Executive Departure

and the Post-Transformational Context.’’ International Journal of Public

Administration, December.

Farquhar, Katherine, guest editor. 1995. Human Resource Management, vol. 34


Fredrickson, James W., Donald C. Hambrick, and Sara Baumrin. 1988. ‘‘A Model

of CEO Dismissal.‘‘ Academy of Management Review, vol. 13 (2): 255–270.

Gilmore, Thomas N. and Don Ronchi. 1995. ‘‘Managing Predecessors’ Shadows

in Executive Transitions.’’ Human Resource Management, vol. 34 (1): ll-26.

Gilmore, Thomas N. 1988. Making a Leadership Change: How Organizations

and Leaders Can Handle Leadership Transitions Successfully. San Francisco:


Gilmore, Thomas N. and Ellen Schall. 1986. ‘‘The Use of Case Management as a

Revitalizing Theme in a Juvenile Justice Agency.‘‘ Public Administration Review,

vol. 46 (3): 267–274.

Gordon, Gil E. and Ned Rosen, 1981. ‘‘Critical Factors in Leadership Succession.’’

Organizational Behavior and Human Performance, vol. 27, 227–254.

Gouldner, Alvin W. 1950. ‘‘The Problem of Succession and Bureaucracy.’’ In

A. W. Gouldner, ed., Studies in Leadership. New York: Harper & Brothers,

pp. 644–662.

Gratton, Lynda and Michel Syrett. 1990. ‘‘Heirs Apparent: Succession Strategies

for the Future.’’ Personnel Management, January, pp. 34–38.

Greenblatt, Milton. 1983. ‘‘Management Succession: Some Major Parameters.’’

Human Science Press.

Herzlinger, Regina. 1994. ‘‘Effective Oversight: A Guide for Non profit Directors.’’

Harvard Business Review, July-August, pp. 52–60.

Katzenbach, Jon R. and Douglas K Smith. 1993. The Wisdom of Teams: Creating

the High Performance Organization. Boston: Harvard Business School Press.

Kets de Vries, Manfred F. R. 1988. ‘‘The Dark Side of CEO Succession.’’ Harvard

Business Review, vol. 88 (1): 56–60.

National Academy of Public Administration. 1992. Paths to Leadership: Executive

Succession Planning in the Federal Government. Washington, D.C.: National

Academy of Public Administration.

Rainey, Hal G. and Barton Wechsler. 1988. ‘‘Executive-Level Transition: Toward

a Conceptual Framework.‘‘ Public Productivity Review, vol. 13 (1).

Rainey, Hal G. and Barton Wechsler. 1992. ‘‘Study of Succession Planning and

Executive Selection: Preliminary Research Results.’’ Literature Review and

Annotated Bibliography, June.

Sonnenfeld, Jeffrey A. 1988. The Hero’s Farewell: What Happens When CEO’s

Retire. New York: Oxford University Press.

Yin, Robert K. 1979. Changing Urban Bureaucracies: How New Practices Become

Routinized. Lexington, MA: Lexington Books.

Case 3: How a Nonprofit Organization Plans for Succession:

Next in Line

Elaine’s Perspective

When my husband retired, I realized that the day was approaching when I would

no longer work for the Greensboro Regional Realtors Association (GRRA). Having

worked diligently to turn the association into a good-to-great organization—a

Jim Collins concept explored in his book by the same name (2001, HarperCollins)—

I made a deliberate decision that given the opportunity I would help the

association continue on its path to excellence no matter who led the organization.

In the fall of 2000, I contacted the incoming board president and presidentelect

to discuss my decision to leave the association at the end of 2002. I informed

them that I had identified one employee as my potential successor—Michael

Barr, GRRA’s chief operating officer. Having worked closely with Michael for a

little more than a year, I saw in him several qualities that exemplified leadership:


A professional willingness to do what had to be done

The willingness to channel energy into the association rather than into


The ability to credit staff and volunteers, when appropriate

A desire to develop both personally and professionally

Based on my recommendation to consider an internal candidate for my position,

the incoming president and president-elect both felt that a succession plan was

in order. The next decision was whether I or a consultant should put the plan


Shortly after my conversation with the president and president-elect, the full

executive committee met and decided that I should create the succession plan.

The committee believed that my knowledge of the association, its mission, and

its needs—as well as my 10 years in its top staff position—gave me the insight

required to create a thorough plan. Additionally, the committee expressed complete

trust in me and my ability to not compromise the association. In total, the

committee felt that a solid management plan for succession would be an important

part of the association’s efforts to develop talent, meet organizational needs,

and improve the association’s overall results on behalf of members.

Using my job description, a list of things that I did that were not in my official

Source: Elaine H. Ernest and Michael P. Barr, ‘‘Next in Line,’’ Association Management, 55:10

(2003), 42. Used with permission of Association Management.

Case Studies on Succession Planning and Management 355

job description, knowledge gained from scanning literature on CEO skill sets,

and my understanding of the association’s strategic plan, I drafted a work plan

that defined the responsibilities and challenges of the executive position and

outlined the areas in which I would coach and mentor Michael. It was early March

2001 when I submitted this draft succession plan to the executive committee. The

committee accepted the plan in mid-March, and Michael and I began discussions

about his long-range career plans. I asked him questions such as:

Are you interested in obtaining the Certified Association Executive (CAE)


Are you interested in expanding your responsibilities in the association

and the community?

Are you willing to travel with me to additional professional development


Are you willing to work with me as your mentor for an opportunity to

become a CEO? (No promises were made, of course.)

His affirmative answers noted, we started working through the actual plan outline.

Because Michael was COO, all staff reported to him. To free up time for

him to work through the succession plan, we diverted some of his day-to-day

responsibilities to other staff members. Job descriptions for senior managers were

reworked to lessen Michael’s workload. To explain this shift in activities, we

informed staff that the executive committee wanted Michael to be more involved

with the overall operations and mission of the association. While this was true,

we did not apprise staff that Michael was being groomed as my potential replacement.

For the next 15 months, Michael and I spent a few hours each week reviewing

the plan, setting priorities for the next month, making adjustments when necessary,

and reporting to the executive committee on a quarterly basis. The committee

left the decisions of progress, needed training, and adjustments to me, with

input from Michael.

Here are a few things that I learned from this experience.

1. Every CEO is capable of doing succession planning if he or she cares about

the organization.

2. Succession planning is not an easy task. Little research is available about

it, especially for the not-for-profit sector.

3. Succession planning is an excellent way to assess the organization, look

at trends, peek at what is coming down the road, and realize your

strengths and weaknesses as an executive.

Working through this plan with leadership and another high-level manager,

it was easy to see what habits made the association successful and what areas

needed more attention. It also solidified the organization’s core values and made

it clear what was important to continue.

Michael’s Perspective

After I agreed to and signed the work plan outline, I really got busy. I’d like to

say the task ahead of me looked simple, but it didn’t. At times I felt as though I

was pledging a fraternity all over again. However, Elaine was a wonderful coach

and mentor. Whether this adventure would turn out as suggested was anyone’s

guess. My focus was on learning as much as I could about association management,

qualifying to sit for and passing the CAE exam, accomplishing the items

detailed in the work plan, building a network of colleagues, and enjoying the

experience. The plan was specific and intense. It outlined nine major components

of the executive position and specified several competencies in each area.

Following are the components of the work plan and some of my prominent

accomplishments in each area.

Essential Management Responsibilities

This area included nine components such as financial oversight, office administration,

and understanding the parallel structures of the association. Accomplishments:

Worked with and advised association volunteer groups, task forces, committees,

directors, officers, and presidents.

Supervised staff; evaluated job descriptions, performance, salary administration,

and work processes to provide high-quality and efficient services

to the membership.

Developed a three-year budget model and new reports for the board of

directors on nondues revenue sources.

Developed a new member benefits program that included affiliating with

a local credit union and offering members discounts on local products and


Essential Administrative Responsibilities

This component was primarily composed of human resources management issues

such as employee performance, oversight of employee benefits plans, and

compensation planning. Accomplishments:

Coordinated employee searches that included position marketing, resume

evaluations, telephone and on-site interviews, compensation negotiations,

and follow-up correspondence.

Researched and presented a new 401(k) retirement program and an employee

education assistance program, which the board approved.

Case Studies on Succession Planning and Management 357

Research and Statistics

Among other things, this area dealt with member demographics, trends in the

profession, and industry demographics. Accomplishments:

Collaborated with a local university economist to provide our membership

with local and regional market reports.

Collaborated with a local university professor to produce an unbiased survey

for the association membership.

Information Technology

This area included competencies such as keeping members up to date with industry

technology trends and continual analysis and implementation of the membership’s

technology needs. Accomplishments:

Developed and implemented a technology infrastructure plan that included

replacing the phone system, upgrading computer software, and

adapting wireless technology.

Developed a new Web site that allows the membership to pay association

bills online and provides segmented information according to members’


Provided the membership with various technology-training opportunities,

which had been requested through membership surveys.

Facilities Management

This area covered everything from the HVAC system to aesthetics and landscaping.


Managed and supervised the association’s banquet facility renovations and

grounds beautification.

Managed and supervised the association’s building maintenance contractors

and banquet facility operations.

Strategic Planning

True competency in this area was defined by the ability to keep staff focused on

the vision of the association, continually evaluate the association’s operations,

and commit and adhere to the strategic objective of the organization. Accomplishments:

Participated in the research and preparation of the strategic planning

board retreat, including negotiating with consultants, preparatory work

with consultants, and execution of retreat, followed by the development

and yearly refinement of the plan.

Focused staff on association priorities to accomplish the strategic goals of

the association within the set timeline.

Internal and External Relations

Government affairs, coalition building, and public relations were the bedrocks of

this component. Accomplishments:

Attended local, state, and National Realtor Association board of director


Represented the association at the Triad Real Estate and Building Industry

Coalition and at other regional coalitions.

Continually represented the association at community events, local government

meetings, and association events.

Networked with the leaders of the local and state associations.

Continuing Education

One of the key thrusts of this area was attaining the CAE designation, showing a

commitment to association management, and continual learning. Accomplishments:

Attended numerous coaching and training seminars offered by ASAE, the

National Association of Realtors, the North Carolina Association of Realtors,

and GRRA on various subjects.

Earned my CAE designation.

General Working Knowledge

The final component focused on understanding industry-specific processes, our

bylaws, and the financial aspects of the association. Accomplishments:

Trained to administer the association’s professional standards and arbitration


Studied and enforced multiple listing service rules and regulations and

association bylaws and rules and regulations.

Acted as chapter administrator for 360-member North Carolina Certified

Commercial Investment Members, which the association manages.

After working through each component of the succession plan, I submitted a

letter to the executive committee expressing my interest in the CEO position. At

this point it was May 2002, and I was able to include a detailed description of

how I had accomplished the work set out in the plan.

Coming to the Conclusion

A month later, the full board of directors met. The president informed the directors

that Elaine was leaving her position as CEO of GRRA at year’s end. Copies of

the completed work plan and Michael’s letter of interest were distributed. Discus-

Case Studies on Succession Planning and Management 359

sion ensued about the succession process and whether the job opening should

be taken outside the organization.

A minority of board members felt that if Michael were truly qualified, he

would win out in an extensive search. The majority of the directors, however, felt

comfortable that the plan was comprehensive and that the executive committee

had been sufficiently involved through its receipt of progress reports. An open

search, in their opinion, would cost the association time and money. After taking

a vote, the executive committee was granted permission to interview Michael for

the position. If the committee was not satisfied with the interview, the search

would be opened, and a selection committee appointed.

‘‘Ten of eleven good-to-great CEOs came from inside the company,’’ says Jim

Collins in his book Good to Great. The Greensboro Regional Realtors Association

found that to be the case after Michael’s successful interview for the chief staff

executive position. In mid-July 2002, more than a year after the draft succession

plan was submitted, GRRA’s board president started contract negotiations for the

association’s new president. Michael took over the top spot on January 1, 2003.

Mentoring Magic

Since Michael P. Barr, CAE, took over as executive vice president of the Greensboro

Regional Realtors Association, North Carolina, in January, he has started his

own mentoring program with senior staff. Read what he has to say on the subject.

Association Management: Why did you start the program?

Michael P. Barr, CAE: Being a product of mentoring, I saw the value in developing

staff to their fullest and helping them with their career goals. Essentially

that’s what Elaine did for me. It’s a win-win for both the association and the


Association Management: What’s involved?

Barr: I meet regularly with staff. We consistently go over both their work

goals and professional goals. It’s individualized according to their preferences,

because we’re trying to help them achieve their professional best. I take them to

conferences, send them to workshops, and help them achieve the designation of

their choosing. Basically, I go over their goals and objectives and help them get

the education they need to obtain their goals. The board thinks that this is so

important that it has increased the budget line item for staff development.

Association Management: Who can participate?

Barr: It’s open to anyone who has expressed an interest in association management.

Obviously, it has to be tied to the job. Senior staff is really taking advantage

of it.

Association Management: How’s it been received so far?

Barr: I have full participation. Those who have expressed an interest in learning

what the top job entails, what running an association entails, are really receptive

to learning. Empowering them to take on projects and responsibility has

been a big plus in the operation of the association.

Association Management: What advice would you give to staffers?

Barr: Approach mentoring with the best attitude possible. It’s a win no matter

what happens. You’re going to do a lot of extra work, but it’s good preparation

for executive-level positions. Get ready for long hours.



‘‘Executive Selection: A Systematic, Team-Based Approach,’’ Executive IdeaLink,

July 2001.

‘‘What If You Were Gone,’’ Association Management, August 2000.

‘‘Mentoring: A Tool for Learning and Development,’’ Association Educator, October



Knowdell, Richard L. Building a Career Development Program: Nine Steps for

Effective Implementation. Consulting Psychologists Press, 1996.

Rothwell, William J. Effective Succession Planning: Ensuring Leadership Continuity

and Building Talent From Within. AMACOM, 2000.

Byham, William C., Audrey B. Smith, and Matthew J. Paese. Grow Your Own

Leaders: How to Identify, Develop, and Retain Leadership Talent. Financial

Times, Prentice-Hall, 2002.

Wolfe, Rebecca Luhn. Systematic Succession Planning: Building Leadership

From Within. 1996, Crisp Publications, 1996.

Web Site

Succession Planning Library ( /planning/sccs_


Case 4: Small Business Case:

Passing the Torch

Jim Gibney, president of Warren Pike Associates, says he grew up in the business.

‘‘I was always drawn to mechanical things,’’ says Gibney, whose family-owned

power transmission and motion control business is headquartered in Needham,

Massachusetts ‘‘As a child, I became interested in the business. During the school

vacations, I would go in to the business and help out. There I got to learn from

one of the best salesmen there is, my father.’’

Gibney characterizes his father as a master salesman and as a leader. He

recounts his father’s career at Warner Electric before purchasing Warren Pike

Associates followed by the purchases of W.M. Steele Co. and Cohen Machinery

Co. to form J.G. Industries, Inc. Gibney says his siblings were drawn to other

interests and have pursued other successful careers, but that he followed his

Source: Richard Trombly, ‘‘Passing the Torch,’’ Industrial Distribution, 90:4(2001), 69–72. Used

with permission from Industrial Distribution.

Case Studies on Succession Planning and Management 361

father’s footsteps from the beginning. He says that wasn’t always a simple path.

‘‘My father was a hard worker and that was one of the values he instilled in me,’’

says Gibney. ‘‘I worked my way up through the ranks. I’ve been in shipping and

receiving, inside sales and outside sales before taking on a role in management.’’

His father still remains active in the company and retains the title of CEO, but

after years of working hard for the company, he is able to work on something

else—his golf game down in Florida. Meanwhile, Gibney has taken on the role

of president.

‘‘It was an easy transition,’’ says Gibney. ‘‘I have been in upper management

for so long and was already very familiar with the business. My siblings had never

been involved with the business, so they weren’t concerned with the process of

succession. My father and I had discussed it over the years and we knew I would

take over when the time was right.’’ Gibney said they did very little in the way of

formal succession planning.

‘‘After some internal planning and adjustments,’’ says Gibney, ‘‘we realized

that the end of year 2000 would be the right time.’’

Gibney admits that part of the success of the transition relies upon keeping

open channels of communication. While nothing was formalized in their planning,

the details of succession were discussed and understood by all parties,

including JG Industries’ 17 employees. ‘‘Communication is key,’’ says Gibney.

‘‘We have a family atmosphere and we involve the employees in the business.

People usually resist change and that can make succession difficult, but we involved

them in the process. I think, by being included in this way, they are now

excited by new opportunities in a rapidly changing industry.’’

Will his own children take over the family business? Gibney says his children

are between the ages of seven and 13, so it is a little too soon to tell if they will

be involved. ‘‘Perhaps, down the road,’’ speculates Gibney.

Not all children grow into their parents’ roles and not all successions occur

so simply and with such positive results, points out Robert Middleton, a partner

with the Chicago law firm of Nisen & Elliot.

‘‘In most cases there are some hard truths,’’ says Middleton. ‘‘Many entrepreneurs

spend their entire lives sacrificing time and energy only to have the whole

organization fall apart and maybe tear the family apart in the process.’’

Marc Silverman, president of Providence, Rhode Island-based consulting firm

Strategic Initiatives Inc., says that when he counsels a family business, the first

thing is to try to separate the family from the business.

‘‘Then we can decide what we want for the family and what we want for the

business,’’ says Silverman. ‘‘By looking at the family and the business, we can

determine what they both need to be successful.’’

Silverman advises a team approach by getting all of the family involved. He

suggests a family council to assist in planning for the business’s future and in

choosing a leader that will be best suited to the business—as well as resolving

issues of the siblings that are not groomed for succession.

Outsiders can be an enormous amount of help, says Silverman, though he

admits that can be difficult for entrepreneurs who are used to doing things in an

autocratic style. It is hard to be objective and many of these issues are closely tied

to the psychological issues of aging. He suggests bringing in a consultant early in

the process if any obstacles develop.

‘‘It is like tooth decay,’’ says Silverman. ‘‘The problem gets bigger the longer

you wait.’’ Jefferey Gallant, a partner with Goodkind, Labaton, Rudoff & Sucharow,

also suggests that businesses have an advisory board. It may be made

up of family members, management, or outside professionals. Gallant says a

board can decide on the important issues of who should lead and what their

services are worth.

Gallant says he is usually brought in for estate planning and has to bring up

the topic of succession. He helps decide what makes the most sense as far as tax

options and retirement, as well as for the business.

‘‘The next step is to get all the parties involved to buy in to it,’’ says Gallant.

‘‘It is so much easier when the owner is involved rather than handling these

issues as part of an estate.’’

Case 5: Family Business Succession:

The Seeds of a Smooth Transition

A month before Christmas, the garden center at Shiloh Nurseries Inc. in Emigsville,

Pennsylvania, looks like a scene from a Norman Rockwell painting, with

decorations and holiday greens at every door and window. Along the path leading

to the side entrance, flowering cabbages are in full bloom.

Inside, Michael Stebbins, 47, is busy getting ready for a Christmas selling

season that will be short because of the late arrival of Thanksgiving. After 27

years as co-owner of the nursery and landscaping business with his partner, Carl

Jacobs, Stebbins knows exactly how he wants everything to look.

He also knows exactly what he wants to happen to the company when he

and Jacobs retire. Both want Shiloh Nurseries to remain a thriving business.

That almost didn’t happen for the family that owned the company before

them. When its founder died with no estate plan, his wife and son discovered

they were unable to work together. The son left to form his own nursery business,

taking many of Shiloh’s employees with him, and his mother was forced to

sell the firm, which was tallying a modest $55,000 in annual sales. Today, Stebbins

and Jacobs employ 25 full-time workers and about 40 more seasonal employees,

and they expect to post sales of about $3 million this year.

The two owners have six children between them but none who wants to take

over the business—they’ve had their fill of nursery life during high school and

summers home from college. Nonetheless, Stebbins and Jacobs do have two

longtime, highly valued employees—their top salesman and landscape architect,

Source: ‘‘The Seeds of a Smooth Transition,’’ Nation’s Business, 85:4 (1997), 25. Used with permission

from Nation’s Business.

Case Studies on Succession Planning and Management 363

and their landscape supervisor—who would like to run a nursery and landscaping

business someday.

Stebbins and Jacobs liked the idea of them running Shiloh, so they set up a

buy/sell agreement with the pair under which the two employees will begin to

buy the company over two consecutive five-year periods. Each employee will

purchase 12 percent of the company’s stock during the first five years and another

12 percent during the second, at a fixed price of two times book value (with book

value being recalculated annually). Payments will be made on an installment plan

bearing interest at the prime rate plus 1.5 percent.

After 10 years, the four principals will decide how to proceed. Jacobs, now

53, is likely to retire then, but Stebbins hasn’t decided what he will do. Possible

options include having the two employees purchase the remaining 52 percent of

the company at that time or allowing a small number of other key employees to

purchase some of that stock.

Either way, Stebbins and Jacobs are glad that the salesman and the landscape

supervisor are becoming part owners, because they will be positioned to take

over the business when necessary. Shiloh has taken out life-insurance policies

on each of the four shareholding partners; the insurance is in amounts sufficient

to ensure that if any of the partners dies before the buy/sell agreement is completed,

the other partners will be able to meet their obligations under the agreement.

To come up with their plan, Stebbins and Jacobs drew on the advice of an

estate-planning firm, Estate Archetypes Inc., in nearby York, Pennsylvania., and

on Gordon Porter, a CPA and small-business consultant in Dover, Pennsylvania.,

before approaching their lawyer to draft the necessary documents.

‘‘One of the reasons I’m inclined to be so sure we’re doing things right is

because I’m proud of the fact that we took a small business and grew it successfully,’’

Stebbins says. ‘‘This is the company’s 60th-anniversary year, and I’d like to

see it be here for another 60 years.’’

Case 6: CEO Succession Planning Case:

Do You Have a CEO Succession Plan?

Jim Lumpkin’s first move as interim chief executive officer (CEO) for U.S.–

Agencies Credit Union was to eliminate the position he’d just vacated. ‘‘The credit

union was top heavy,’’ recalls Lumpkin, CEO of the Portland, Oregon, credit

union. ‘‘At the time, we were spending too much money on management positions.

We needed a CEO who could handle both jobs.’’

Then he insisted that the board undertake a detailed search, both inside and

outside the credit union, for CEO candidates. ‘‘Our last CEO felt he was named

by default. The board never did a full search so there never was that buy-in that

Source: Bill Merrick, ‘‘Do You Have a CEO Succession Plan?,’’ Credit Union Magazine 67:7 (2001),

52. Used with permission from Credit Union Magazine.

they had the right person,’’ Lumpkin explains. ‘‘I stipulated that I wouldn’t apply

for the job unless the board went through a full search process and really looked

for who they wanted. That way there wouldn’t be any second-guessing.’’

The board named Lumpkin CEO after a five-month search, and he has served

in that capacity for four years. But watching the board struggle through the process

made him recognize the need for a detailed succession plan outlining steps

the board should take in case of CEO turnover—whether by resignation, termination,

or death.

The credit union’s recently completed succession plan details planning and

preparation, general board guidelines, steps for emergency succession (broken

down by the first day, week, and month), recruiting and hiring, desired qualifications

and attributes, and other information. ‘‘We’re a smaller company and we

look at our CEO as more of an operational CEO,’’ Lumpkin notes. ‘‘So the CEO

needs to know which areas he or she would be responsible for—accounting,

asset/liability management, compliance issues, examination processes, human

resource administration, and investments. If the CEO leaves, board members

might wonder who else will leave and how they’ll run the credit union. I wanted

to identify skill sets and experiences they should look for.’’

Among other information, the plan lists nine basic steps for CEO replacement:

1. The board hopes for 90 to 120 days’ notice of intent to leave so it can have

an orderly transition. The board would like to hire the new CEO at least

30 days before the departure of the current CEO. It would be preferable

to allow 60 days for this transition.

2. The board will appoint a search committee to monitor the plan and recommend

final candidates to the full board. The board’s executive committee

will make up the search committee in part or in whole. It’s recommended

that the committee consist of three to five individuals. It’s advisable that

the current CEO not be a member of the search committee.

3. The board will decide whether the search committee will conduct the full

search process or whether to use an outside consulting firm. If the board

hires an outside firm, determine the company’s responsibilities and cost,

and specify details in a signed, written contract. Use a firm that’s familiar

with credit union needs and philosophy.

4. The executive committee, with the assistance of the interim CEO and management

team, will update the existing CEO job description, organizational

chart, and other information, and provide it to the search committee

and/or consulting firm.

5. Advertising for the CEO position will appear in local and industry trade


6. All resumes will be reviewed for basic qualities and experience. Interviews

will be limited to three to five candidates. The search committee or consulting

firm will present the best candidate to the board. If the board

Case Studies on Succession Planning and Management 365

doesn’t accept this candidate, the search committee or consulting firm will

present the second choice.

7. Verification of candidate credentials and employability may include, but

isn’t limited to, educational transcripts, reference checks, credit bureau

reports, CUMIS bond check, medical assessment as allowed by law, psychological

appraisal, and chemical dependency testing.

8. Notification of the new CEO will be provided to the Oregon Department

of Consumer and Business Services, National Credit Union Administration,

Credit Union Association of Oregon, CUMIS Insurance Group, and credit

union attorneys.

9. Publish articles in the quarterly newsletter to announce the current CEO’s

departure and introduce the new CEO.

‘‘Having a plan makes the board and our state regulator feel better,’’ Lumpkin

says. ‘‘Also, staff knows that if something happens, the board will find a match

that will fit members’ needs, internal staffing needs, and the credit union’s culture.

It builds confidence throughout the credit union and reduces uncertainty.’’

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