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When a CEO exits, the ripple touches every part of the organization: strategy, board composition, culture, investor confidence.
And the research is clear. Companies with a strong successor plan outperform peers on shareholder return and employee retention.
Succession planning is not about predicting the future. It’s about engineering readiness, so the future doesn’t catch you off guard.
There are many reasons why it often fails. Here are a few:
- It’s Treated As A Checklist-Annual talent reviews are not a succession plan. They identify high performers but rarely map readiness from the top seat.
- Networks Stay Closed-Key opportunities, such as crisis leadership roles or P&L assignments, are too often allocated inside a small circle, starving the pipeline of diverse experience.
- Leaders Avoid The Conversation-Many CEO resist talking about successors because it feels like planning their own exit. Boards let the discomfort win, and planning stalls.
Lessons From Recent Transitions
Emma Walmsley’s planned departure from GSK is a current reminder that leadership changes are inevitable.
When a female CEO departs, the stakes are even higher: without an intentional plan, gains in leadership depth can vanish in a single quarter.
The lesson is universal: Succession isn’t about who leaves. It’s about the system that ensures the next leader, man or woman, is ready, capable and already embedded in the company’s strategy.
How Can Boards and Executives Design An Engineering Readiness Plan?
- Start Early…Then Start Earlier
Succession planning should begin the day a CEO is appointed, not the year they signal retirement.
- Build “Summit Reps” Into Development
Stretch assignments, P&L ownership, crisis leadership are not perks. They are prerequisites for anyone in the CEO pipeline.
- Demand Sponsors, Not Just Mentors
Mentors advise and sponsors advocate. Boards should require each senior executive to name and actively develop at least two successors.
- Track Depth, Not Just Names
A list of high potentials isn’t a plan. Boards need metrics on readiness which includes financial acumen, cross-functional experience and crisis leadership.
This is a call to the leaders reading this. If you’re in the C-suite, your job isn’t just to perform…it’s to prepare. And if you’re an aspiring leader, don’t wait for a pipeline to carry you upward. Seek the assignments, relationships and sponsorships that build undeniable readiness.
Progress isn’t automatic. It’s engineered.
Succession planning isn’t a ceremonial announcement. It’s a daily discipline that protects value, strengthens culture and ensures the summit stays strong no matter who stands at the top.
P.S. One of the most common gaps I see at the top is this: no clear successor.
Many executives, especially those newly promoted, haven’t identified who could step into their role if they leave or move up.
That silence creates confusion and can leave talented team members feeling overlooked.
Always look for someone who can take your place, whether you’re moving on or moving up. Ask yourself: “Who would I want to promote me out of my own position?”
Your answer isn’t just about planning for tomorrow. It’s a sign of the leadership legacy you’re building today.
The best compliment a leader can earn is to be promoted out of their own position… because it means they’ve built a team capable of carrying the mission forward.
Be ready!
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