Guidelines to Help a Board with the Manager Selection Process (1993)

The electric distribution industry is constantly changing and boards of directors across the nation are facing an ever-increasing rate of turnover in top management. Hiring a qualified general manager to lead your organization is the number one responsibility of the board of directors. We are at a crossroads in the rural electric industry. If we continue to effectively serve rural America, we as board members are going to have to manage change. Boards are already making changes in co-op financing, operational structure and even mission statements. Buy-outs and takeovers are common expressions and many boards will be called upon in this decade to consider merger in order to remain viable. How we as boards meet the challenge of change will largely determine the future of electric co-ops. The ability of any board to evaluate, perceive and implement change will be directly proportional to the ability, knowledge and leadership of their general manager. The historical co-op manager with twenty-five to thirty-five years in the same job is rapidly becoming a minority. Just as we see in the corporate world, rural electric management is becoming increasingly mobile. Regardless of the size of our co-op, you and I as board members owe a duty to our customers and the industry to employ the very best general managers to lead us through this time of change. Co-ops across the nation have family-like bonds; however, each has its own personality. Due to factors such as location, size, growth rate, load distribution and competition, each organization is different. In order to find a manager best suited to the needs of the organization, the board must evaluate these factors along with the strengths, weaknesses, and needs of their co-op. Obviously, such a decision cannot be haphazardly made on a hit or miss basis. Rather, an informed decision requires total dedication, preparation, and hard work on the part of each board member. Based on our experience, the importance of professional assistance to facilitate the manager search process cannot be overemphasized. Our co-op has always had a competent and progressive board comprised of community leaders. Unfortunately, we have had to learn how to select new general managers the hard way. In 1976, after twenty years with the same manager, our first selection of a successor was tremendously influenced by his opinion rather than an objective board decision. Three years later, the person we selected went with a consulting firm and the board was faced with making a decision without the influence of our ex-manager. We treated the vacancy as a routine position and only advertised locally and in our statewide publication. The results were disastrous, resulting in only five applications. Letters of recommendation were received without any background reviews. Two years later we were again in the market for a general manager. By this time our board had learned that although our co-op should attract good candidates, our board simply did not have the contacts or the time to do an adequate manager search. Our last two managers have been hired by the board assisted by the management search service of NRECA. The quality and quantity of applicants on both occasions has been phenomenal. Each finalist interviewed the first time has gone on to become outstanding distribution and statewide association managers. While professing experience and not expertise, our board is glad to share some suggestions which might be helpful. Actions not to take are just as important as positive suggestions. Try to avoid: * Being overly influenced by the retiring manager's efforts to influence the board to hire his/her choice as an heir apparent. The new manager must be the board's choice. * Limiting the advertising for a general manager to the area newsprint media. Take full advantage of your statewide and national trade magazines which are read throughout the industry. * Hiring the cheapest person available. …