Succession Planning
Jump to table of contents

What else can co-operatives do to help with succession planning?

  •  Work to develop a succession policy and plan for the succession of key individuals/roles. We have a template policy example available to you as a Word document or PDF.
  • Horizon scan. For Board appointments, consider which directors are due for re‑election and whose terms of office are ending. The responsible committee (or the board) should horizon‑scan well in advance. Each year following the AGM, a view should be taken on all of the board positions that are coming up for retirement and re‑election the following year in order to gain a full view of the potential gaps and vacancies that could arise.
  • Identify potential skill, experience and capability gaps that could arise: When horizon scanning, the relevant committees (and/or board) should assess what skills, experience and roles the individuals play that are likely to be lost. The board should consider including these in the recruitment process and election materials for replacement. The Governance Wheel emphasises the development of the capability of the governing body in order to be effective. This should be the focal point when assessing skills and capability on boards.
  • Ensure all directors complete a skills audit upon joining the board and ensure that these are updated periodically to capture any changes. As well as maintaining a list of skills and experience, when gathering this information, individuals could take the opportunity to state if they are interested in taking on additional responsibilities such as joining a committee and/or becoming a committee chair.
  • Reviews of the board performance through periodic evaluations and appraisals are also effective ways of drawing out any skills gaps or training needs. Principle 4F of the Co‑operative Corporate Governance Code states that “the board should undertake a formal and rigorous evaluation of its performance…individual evaluation should demonstrate whether each director continues to contribute effectively and their commitment to the role.”
  • Co‑options: if a loss of skill/expertise is identified, consider co‑options in order to fill this gap if the rules of the co‑operative allow for this.
  • Review terms of office: consider if terms of service are an appropriate length of time that allows for refreshment but also gives the director sufficient time to become familiar with the co‑operative they are serving on.
  • Consider is there anything prohibiting succession planning such as a requirement to serve on the board for a set amount of time before joining a committee, despite the person possibly having experience from other appointments? Could this be altered?