When the unexpected happens, like the sudden loss of a CEO, a strong succession plan can be the difference between chaos and stability. For John Sneed, Chairman and Retired CEO of FMS Bank in Fort Morgan, Colo., navigating such crises has provided valuable lessons in leadership and preparation.
His methodology for navigating a bank-related regime change was published originally by Travillian Next.
The Consequences of No Succession Plan
Sneed recalls that there was no succession plan when he first became President of FMS Bank. Though knowledgeable about community needs, the board lacked an understanding of key concepts and had no clear process for banking leadership transitions.
“The board didn’t know my background, capabilities, or what kind of leader they needed,” Sneed reflects. His appointment was informal and disorganized—a stark reminder of the importance of structured succession planning.
The Danger of Unilateral CEO Succession
Decades later, when Sneed prepared for his own retirement, the board had grown into a more sophisticated and engaged group. Eighteen months before his planned departure, Sneed identified and mentored a successor.
When the time came to pass on the reins, however, the board’s unanimity had dissolved, creating division regarding his choice. This experience highlighted a critical lesson for Sneed: “The outgoing CEO should not unilaterally pick their successor,” he notes. “This decision must be made collectively by the board, as they bear responsibility for its consequences.”
The Importance of a Contingency Plan
Three years into his successor’s tenure, tragedy struck again—the CEO passed away unexpectedly. As interim CEO, Sneed reassured the bank’s staff, regulators, and board while launching a search for the next leader. Determined to avoid previous mistakes, the board engaged King of Prussia, Pa., executive search firm Travillian to guide the succession planning process.
Partnering with Experts for Successful CEO Selection
Travillian’s approach was methodical and comprehensive. Its professionals conducted in-depth interviews with board members to understand the bank’s culture, vision, and needs. “Their method ensured the search started on the right foundation, with every candidate evaluated against criteria we defined together,” Sneed noted.
Across a period of two months, Travillian presented a mix of internal and external candidates, with detailed evaluations of their qualifications and fit. The process culminated in the selection of an internal candidate, with the board reaching a unanimous decision.
Transforming Crisis into Opportunity
Reflecting on the process, Sneed emphasized its benefits. The board gained clarity about the bank’s mission and vision, preserved the institution’s culture, and approached the decision with full engagement and confidence. “Of all the succession processes I’ve been involved in, this one stood out as the most comprehensive and effective,” he stated.
The new CEO’s tenure is still in its early stages, but Sneed remains optimistic. His experience underscores the value of preparation, collective decision-making, and professional guidance in succession planning—practices that can transform a crisis into an opportunity for growth.
This article has been summarized from its original published version found on Travillian Next.
