Exec Talent Search: Weighing The Choices
By Gary Kaplan© Executive Journal. June 2000.
Credit unions face the same challenges in securing executive talent as other financial services companies do today: Key senior executives are hard to come by - let alone retain. If they're not already satisfactorily employed, they're leaving traditional organizations to go to start-ups or larger organizations --- or to start their own businesses.
James Cannavino is one example. He left behind executive positions at IBM and Perot Systems Corp. to head CyberSafe Corp., a small Seattle-based company engaged in electronic transaction security issues and technologies, reports Chief Executive.
Given the competition for talent, astute leaders view their executives as assets to evaluate and manage wisely. An executive opening presents an opportunity to re-examine management's strengths and succession plans in light of long-term goals.
In assessing the credit union's "bench strength," ask:
- What talent is still available here now?
- What skill sets might the credit union need in the next five years?
- What is the turnover rate of executive-level employees? When good managers keep leaving, it's a danger signal.
- What expertise does the credit union need that it can't develop internally?
- What talent is available in the credit union industry, or the general executive labor pool?
Superior employees create the difference between the credit union's success and failure. Review internal candidates' leadership and technical skills and aptitudes, their ability and willingness to grow, and their adaptability.
Also evaluate the position - as it is today, how it will change, and what it will require.
An executive opening also provides an opportunity to fine-tune your succession plan. Discuss not only how the new opening will affect your plan but also how unexpected circumstances such as a death, merger, or major competition shift could alter it.
Internal vs. external hires
A healthy organization first looks to in-house talent for possible promotion - to both boost morale and save recruiting costs. Internal career development programs and promotions signal future possibilities for current employees and so aid retention.
For example, the South Carolina Credit Union League has just begun its Management Acquisition and Development Program, a six-month training program that targets college graduates or credit union employees as potential supervisors and managers. The league recruits participants whom credit unions then can hire, or credit unions can refer staff to the program. Participants complete 15 modules and a combination of classroom, on-the-job, and self-paced training.
While internal development can yield excellent candidates, there are two principal reasons it may be imperative to cast a wider net:
- Current personnel lack the requisite skills - for example, in technology. A thin layer of management competency - especially in technology or business management - indicates a need to acquire it.
- New strategic directions require fresh thinking. Internal hires, or even those from within the credit union movement, may be caught in a corporate or industry mind-set just as the financial services industry is on the threshold of dynamic, competitive changes.
If casting a wider net is necessary, several strategies will help find middle manager and executive prospects.
To find middle managers, contact associates for referrals and network through industry and business associations. Other potential sources include referrals from current employees, vendors, and consultants; colleges, universities, and their alumni associations; and Internet recruitment services.
For senior-level positions, consider a retained executive search firm, which can tap into a wider talent pool - including those professionals not actively seeking a job. These search firms check references and conduct extensive evaluations. Before the search begins, they also can help define needs and assess current staff in line for promotion.
Knowing when to promote internally or to seek new executives is an important element of strategic business planning because it's people who carry out the plan. How well a credit union manages and recruits executive talent is a test of its vision.
