Succession Woes Lurk For Many Firms

Staten Island business bank points to findings of gaps in transition planning

 

STATEN ISLAND, N.Y. – An emerging important issue for big organizations is succession planning, and when big business is unsettled, small businesses typically cringe the same way.

 

Victory State Bank, Staten Island's only community-based commercial bank, has been observing the growth of succession needs, with more law firms now proclaiming leadership transition as a part of their practice.

A very recent illustration of unpreparedness surfaced merely weeks ago in Washington State when a disparity was found between perceptions of succession readiness by top managements versus the next generation of potential CEOs.

Specifically, a Social Sector CEO Trends Report, which surveys the nonprofit sector, found a crucial need for organizations to anticipate and plan for a scarcity of leadership as more leaders reach retirement age and the number of organizations continues to grow.

Survey results indicated 90 percent of CEOs perceive that their organizations provide next-generation leaders with access to development opportunities, compared to only 52 percent of leadership team members, who perhaps not-so-respectfully disagree.

Additionally, 87 percent of CEOs state that succession planning is very important, yet fewer than 30 percent have a plan in place.

Sixty-two percent of leadership team members aspire to become CEOs, but only 27 percent report they feel prepared to take that role today.

The report, in its second year, was released by Waldron, the Seattle area offices of Career Partners International, in conjunction with the Evans School of Public Affairs at the University of Washington.

Victory Bank offers that, for Island businesses pondering succession, the need exists up and down the line to put preparations in place.

“The survey exposes a disconnect between CEOs’ and leadership teams’ perceptions of succession readiness,” commented Tom Waldron, founder and CEO of Waldron. “It reveals a strong need for more open conversations around leadership and a consistent emphasis on transition during strategic planning conversations.”

“This research is extremely important for organizations within the nonprofit sector,” added David P. Hemmer, Career Partners president and CEO. “Succession planning is a key aspect of organizational success, and in the case of nonprofits the stakes are even higher.”

The survey collected responses from individuals in leadership positions at nonprofits, nongovernment organizations, and foundations with budgets and/or assets above $100 million.

The nonprofit sector is the third largest employer in the United States with more than 2.3 million organizations according to research by Colorado Women’s College and the Nonprofit Almanac 2012 Factsheet. The sector has experienced fast growth, with 24 percent growth from 2010 to 2012.

 

About Victory State Bank

VSB Bancorp, Inc. (OTCQB: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.

 

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