Independent Banker - June 2019 - 7

FROM THE TOP
" Any good coach knows
when it's time to put in
new players. "
Preston Kennedy
Chairman, ICBA
Preston Kennedy is president and CEO of
Zachary Bancshares Inc. in Zachary, La.
On May 15, 2018, I celebrated my 40th anniversary
as a community banker. It's a milestone
that I hold close to my heart, not just because of
its signifi cance in my career, but also because it
marked the day that I was able to turn over bank
management to the next generation. While I still
hold a leadership position at our holding company,
the day-to-day workings of the Bank of
Zachary are now in the capable hands of my successor,
Mark Marionneaux.
This transition started about nine years ago
when we brought Mark on board. We didn't hire
him as " the successor, " but we worked toward
that end. When it became clear it was the right
move, we started talking about timelines and
responsibilities, where he felt he needed deeper
knowledge and where he really excelled. These
communications gave us the opportunity to prioritize
the tasks to transition fi rst and those to
develop a bit more.
But succession planning must extend beyond
that one-on-one dialogue between the current
and future leader. This type of preparation
requires organizational awareness and input
from all parties, including the candidate, bank
leadership and staff , and the board. These
discussions are critical over the course of the
transition. They allow you to fi nd out where there
are opportunities to strengthen the candidate's
My Top
Three
My three key
principles of
succession
planning include:
1. Identify the
right candidate
2. Communicate
your succession
plan to your
organization
3. Know your role
and that of your
successor-and
make sure your
team does, too
connections to the bank and its team.
In addition, board-level conversations really
can drive the approach an institution takes to
succession planning. From a fi duciary responsibility
level, it's critical to put it on the table early.
The board needs to understand the landscape
and the budgetary impact of the costs of the transition
itself and those of attracting top talent.
But how do you know when it's time to fully hand
over the reins? That's the million-dollar question,
yet we can't lose sight of the fact that we're here
to serve the needs of the whole organization. If
our focus is on what's best for the company, the
employees, the shareholders and our customers,
when it's right should be self-evident.
Because any good coach knows when it's time
to put in new players. As leaders of our community
banks, we need to apply that same discipline
to ourselves. Succession planning is critical to
the future of our banks. If we wait until we need
our replacements, it's too late. People want, and
need, to be coached up. So let's not be afraid to
coach our successors. It will ensure we have the
right leadership in place so our community banks
can continue to fl ourish.
Connect with Pres @BankPres
independentbanker.org Q 7
http://www.independentbanker.org
Independent Banker - June 2019

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