Succession planning challenges: The nature of the co‑op itself can make it difficult to succession plan

An example of a co-operative whose nature makes it difficult to succession plan is a housing co‑op, where membership is dependent on occupancy and when individuals move out, their membership and any related role ceases. This could occur at short notice, which presents a specific challenge to the sector. 

In other co‑operatives this could present as elections from sectors or membership categories that do not allow for skill-centred recruitment. Worker co‑ops also face similar challenges in the event of worker members leaving employment. 

How can this be addressed? 

• For housing co‑ops, the Confederation of Co-operative Housing’s Code of Governance notes the importance of encouraging an active membership (2.1(b) Encouraging Community Membership). Doing so in this context could help safeguard against key person dependence on a small number of individuals by enabling the sharing of key responsibilities and roles.
• The Worker Co‑operative Code encourages worker co-operatives to ‘assess the technical, management and co‑operative skills needed to achieve your long-term plans and replace key members who leave’ and emphasises education and training for members and employees so that they can fully participate in the management and development of the co‑operative as a means of achieving this.