5 Steps to a Strong Pipeline of Bank Leaders

In 1992, the Green Bay Packers starting quarterback suffered an injury. Brett Favre stepped in and the team never missed a beat. Sixteen years later as Favre approached retirement, Aaron Rodgers took the starting position. The team continued a legacy of strong leadership.

Just like in team sports, proper succession planning is critical to organizational success and continuity for banks. Particularly as the Baby Boomer generation enters retirement (an unprecedented 10,000 Baby Boomers reach retirement age each day), preparation is critical. Yet, in many cases the array of other challenges faced by banks has taken priority over succession planning. If this is the case for your bank, you may be uncertain about the state of future leadership. We have put together a short list of key considerations for revamping your depth chart. 

1. Build a Strategic Plan and Stick to It
   Put in place a solid strategic plan that aligns with your mission, values, and culture. Make sure all subsequent decisions align with the strategic plan; particularly those related to recruitment and talent development – especially key leadership positions.
2. Assess the Situation
   Perform a gap analysis by gathering honest answers to important questions about leadership needs immediately and two/five/ten years into the future. Consider whether your bank is prepared with a backup should a leader suddenly leave. (Key positions include President, CEO, CFO, COO, Chief Lending Officer, Human Resources Director, Compliance Officer, Chief Security Officer, Director of IT, Senior Lender, Payroll Processor, Lead Teller, and Marketing Vice President.)
3. Choose Possible Successors
   After identifying gaps in the depth chart, identify upcoming leaders that the bank could develop to fill important roles, remembering to consider culture and the strategic plan. Grooming leaders from within is ideal. It is more cost effective and better for the motivation of other high-performers within the organization. Nonetheless, you may need to look externally particularly if the bank would benefit from a new perspective. Regardless, consider stage over age – while it’s easy to promote based on seniority, it’s not always the best choice for the long-term strategic plan. Identify candidates based on the strength of their expertise, relationships, competence, and passion.
4. Develop Future Leaders 
   It is important to invest in the professional and personal development of every staff member. It’s especially important to invest in those individuals identified as key management successors. Perform an individual competency gap analysis for each rising leader to identify the skills, education, and knowledge they need. Then implement a development plan that includes a combination of education, training, mentoring, shadowing, cross-functional training, leadership development, and/or coaching. Increase their involvement in strategic thinking and empower them to lead and contribute from their current position. When it is their time to step up, they will be ready and your team won’t miss a beat.
5. Re-Evaluate and Adapt
   Succession planning should be an ongoing, adaptive process that evolves with the bank’s strategic direction and employee mix. It requires the constant development of team members, transfer of knowledge and relationships, and a culture that empowers employees to be outstanding from any position.

A methodical and ongoing approach to succession planning offers a host of benefits. It strengthens bank culture and builds a strong talent pool. And it secures your organization with a pipeline of competent leaders who are ready to shine as soon as they are called into the game.

How would your team perform in the absence of its starting quarterback? Is your bank prepared with a strong depth chart?

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