3 AHA’s of Board Succession Planning
March 26, 2025
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4 minute read – Succession planning often conjures thoughts of leadership transitions, but effective planning at the board level is equally crucial. In our work with financial institutions, we’ve seen that proactive board succession planning strengthens governance and ensures long-term strategic alignment. Below are three key “Ahas” that can elevate your board succession strategy.
- Board Recruitment is an Ongoing Process, Not a Crisis Reaction
One major realization for many organizations is the importance of maintaining a steady pipeline of potential board candidates. Unlike internal leadership roles, board positions are often voluntary, making recruitment more challenging.
An “aha” moment here is recognizing that board members themselves are often the best ambassadors. When current members share their positive experiences with their networks, it fosters interest and broadens the candidate pool. To further formalize this process:
- Network strategically: Encourage current board members to engage with diverse groups that reflect your institution’s demographics and growth areas.
- Be transparent: Clearly define the expectations, responsibilities, and opportunities associated with board roles to attract the right candidates.
- Create entry points: Consider using associate board positions or supervisory committee roles as a “get to know you” phase, enabling potential candidates to learn about board functions while offering the organization a chance to assess their fit.
- Succession Planning Goes Beyond Recruitment—It’s About Development
The next aha is understanding that board succession is not just about finding the next person to fill a vacancy—it’s about developing future leaders for those roles. To do this, boards should focus on intentional onboarding and growth opportunities:
- Onboarding with a vision: Introduce new members to the board’s structure, officer roles, and strategic objectives early in their tenure.
- Cross-functional exposure: Rotate board members across committees to build a broad understanding of institutional priorities.
- Leadership preparation: Provide targeted development for officer roles, especially the board chair position. New board chairs often realize how demanding the role is, making early preparation vital.
One board chair remarked, “I had no idea how much work this would be—the last chair made it look so easy!” A solid development path can help future chairs step into their roles with confidence.
- Align Board and Leadership Transitions to Prevent Disruption
Another powerful insight is the need to coordinate succession planning timelines between the board and executive leadership. Major leadership transitions at both levels simultaneously can lead to significant disruption.
Key takeaways:
- Communicate intentions: Regular discussions about potential departure timelines (even broad estimates) help prevent overlapping transitions.
- Stagger retirements: If multiple board members or officers are nearing retirement, develop a phased approach to maintain continuity.
- Plan for emergencies: Beyond planned retirements, be ready for unplanned departures with interim candidates or processes to ensure smooth operations.
One organization described the challenge of losing both their CEO and board chair in the same year, calling it a “perfect storm” of experience loss. Coordinating these transitions in advance can mitigate risks and ensure organizational stability.
Board succession planning isn’t just about filling seats — it’s about aligning the board’s capabilities with the institution’s strategic goals while ensuring a sustainable pipeline of talent.
By embedding recruitment, development, and transition coordination into your board’s regular practices, you’ll create a stronger, more resilient governance structure that can adapt to the challenges of the future.
*Portions of this blog were edited with the assistance of AI.
