When the unexpected happens, have you got a plan how to overcome the problem?
Just as in business, succession planning for trustee boards is a major issue – yet how many trustee boards have an inkling as to what they will do if this were to happen?
Here are just 4 of the areas we can help you with;
1. Be prepared
Failing to prepare is preparing to fail – it’s an old cliché but it’s no less true for all that. We have spoken before about Trustee Boards concentrating on strategy and scenario planning and this is an example of what we mean by it. Trustees move on or sadly die in office and it’s always best not to be making up solutions as you go.
2. Future Trustees
A succession plan must be aligned to the Scheme business plan to ensure that there are good candidates coming through. This is as particularly important for Member Nominated Trustees as it is for Company Nominated trustees. Too many potential candidates give up if they are not chosen as a trustee the first time. Equally, for Company Nominated trustees, it can be a positive career opportunity.
Look at your committees – are they quorate if one trustee becomes long term sick or leaves the company? What plan is there in place to rotate trustees around different committees to gain experience, and make them more effective?
Thinking about what comes next is absolutely essential. If your scheme business plan is to target a buyout in the foreseeable future or to review your investment strategy and maybe introduce de-risking tools, does the Trustee Board have the necessary skill sets to undertake this task?
All of this leads to the question whether trustee boards need help in order to achieve this. We have worked with many different boards helping to scenario plan in order that a drama does not become a crisis. This has meant
- identifying future trustees, both company and member nominated,
- running training programs,
- reviewing scheme governance and recommending changes, and
- last but by no means least developing and maintaining business plans.
If you think that your scheme could be better prepared for the future, we can help you as we have helped others; see our case studies. Why not contact us to find out more?