Have you identified succession planning within your strategic plan or risk register?
Succession planning is a key consideration for your club and must be appropriately managed so that your club is prepared for the inevitable changes to both its board and management.
Succession planning is a strategy for identifying and developing future leaders, not just at the top, but for major roles at all levels. It helps plan for all contingencies by preparing high-potential workers or board members for advancement.
Whilst all clubs will experience unforeseen changes to their governance structures which are unavoidable; planning and open discussions can reduce the risk accordingly. Most clubs have now established triennial director appointments, which gives continuity of service and reduces the risk of an entire board being overthrown.
Whilst most clubs have an ageing membership base and, in some cases, an ageing board, finding suitable directors is the one of the biggest risks to the club industry. Your club should be completing a skills gap matrix and considering some target areas that the board may be lacking in. Whether it is finance, legal, marketing, IT, or human resources; these are all key desirable skills that may complement your board.
Whilst it may be hard for your club to identify key persons to fill these gaps, it is important to complete a skills gap matrix on an annual basis and identify known future changes to the board, for example, a retiring member.
If your club has a constitution which identifies specific criteria that needs to be met to join as a board member or hold an executive position, it may present a barrier to succession planning - for example requiring there be an association with a sub-branch or bowling sub-club.
Your club should review its current rules to ensure they are still appropriate, and that they are not a hindrance to attracting suitable candidates to the board. With regard to executive positions on the board, developing position descriptions may be of benefit to existing or new directors, as well as structured training. A new board member shadowing the role of an existing board member can assist with the transition process.
Similar processes should also be adopted for management whereby open discussions should be held with key employees on an annual basis. We recommend that your club identifies those employees that are exceeding expectations and may possess future leadership potential.
You should then consider training programs for these future leaders, as well as providing them with greater responsibility, involving them in strategic planning and ultimately retaining them for as long as possible. It may be as simple as letting an employee know through their review process that they have the right credentials for a leadership role, and then providing some coaching. This will also help make an employee’s decision to stay with your club easier.
It is inevitable that the board and the leadership team at your club will continue to change. Managing that change through consideration of succession planning can ensure that the continuity, growth and direction of the club is maintained, and suitable board candidates can be easily identified.
Being in a highly competitive environment, your club cannot afford to go backwards through poor decision making. We recommend commencing your succession planning process as soon as practical and ensure that you review your plan on an annual basis.
If you would like help from our team or further information, please contact Nick Nancarrow to discuss succession planning further.
