Independent Banker - December 2022 - 60

Tackling a broader succession planning issue
As Joshua M. Juergensen surveys the community banking industry, he sees a broader
lack of succession planning that goes beyond just post-merger board planning.
" Succession planning as a whole is one of the biggest challenges that the community
banking industry has today, " says Juergensen, who is principal, financial institutions
at CliftonLarsonAllen LLP in Minneapolis. " In a lot of cases, there just isn't a next
generation that's willing to take over the reins from the longtime, multigeneration, familyowned
bank. "
This reality make institutions consider selling. This, in turn, creates the need for better
post-merger board succession planning. " Candidly, I think a lot of the reasons that banks
enter into these merger agreements is due to the lack of overall succession planning, "
Juergensen adds.
An ICBA certification committee member, Juergensen says he's recently seen a bigger
focus being placed on educating the next generation of bank leaders. He sees this as a
step in the right direction but says there's still more work to be done.
" It's about making sure that community banks are investing in the [associates] who
may be future leaders of their organizations, " he says, " and taking the steps necessary to
drive a successful succession planning process. "
will set the entire direction for the
merged organization. "
With the stage set for post-merger
succession planning, banks may have
to work through differing priorities
among new and existing board
members. To effectively address these
and other conflicts, Moch tells banks
to lean on the organization's mission,
goals and position in the community
that it serves. They should ask
questions like:
What do we want this bank to be?
How can we accomplish this?
What are our strengths and
weaknesses?
How can our board help us leverage
these strengths and overcome
the challenges?
" Have a clear direction even if
there's competing interest. That
way, you have something to go back
to, " Moch says. If the board itself
can't reach a consensus, he advises
bringing in an outside mediator to
work through the issues and help
set baseline business strategies.
Invite board members to voice their
opinions throughout the process,
54 Q ICBA Independent Banker Q December 2022
he adds, but ultimately also know
that a majority of the board needs to
approve decisions. Having a strong
chairman in place can help banks
achieve that consensus.
" He or she can help guide and
direct the discussions to ensure that,
even if there is disagreement, once a
direction is picked, everyone gets on
board with it, " says Moch. " A strong
chairman can make a big difference in
driving that forward momentum for
the board itself. "
Honoring experience and
planning for the future
Depending on how long a community
bank has been in business, there may
be board members who have been in
place for decades. They each bring
their own strengths and experience
to the board, and their longtime
knowledge of the banking industry
makes them valuable assets for
the organization.
As the banking environment,
technology and customer preferences
all continue to change, boards can
also benefit from some fresh faces
who may bring different perspectives,

Independent Banker - December 2022

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