Leadership feels a lot like Brazilian Jiu Jitsu (BJJ) to me. (Of course, everything does!) If you aren’t familiar, BJJ is like playing chess with a 200 lb opponent who is trying to choke you. Or something like that. Not all metaphors are intended to be mixed.

Anyway – when you lead, the pace can be intense. Every day throws a mix of opportunities and challenges your way. There are many decisions to make, and many need to be made quickly. If you don’t, well, you face the consequences.

The point is, a strategy of “wait and see” is usually a poor idea in leadership (and BJJ). You have to keep moving, always thinking a few moves ahead.

But many organizations fail to anticipate one of the most common chokepoints (see what I did?). They don’t prepare to have the right leadership they need when it’s needed. Effective succession planning is crucial to ensure smooth transitions and continuity in leadership, particularly in today’s dynamic environment.

Back in the good old days, it was easy to quickly find qualified applicants for leadership roles. Friends, those days are gone. If you’re not building the next generation of leaders, you’re risking your organization’s future. That’s about as plain spoken as I can get.

That’s where internal leadership development and a strong succession plan come in.

Why Succession Planning Often Fails

Most leaders know that succession planning is important. But very few do it well. In fact, most think of succession planning as some form of a relay race. (I’ll confess, I used to use that metaphor as well.) They identify who they’ll hand the baton off to and call the succession plan “good.”

If only it were that easy.

Here’s how I know it isn’t: According to the Small Business Administration, roughly 66% of successions fail. And according to Harvard Business Review, half of successor executives don’t make it past their first 18 months. If you do the math on that, you’ll see some organizations hang on to their failed successors. I can’t explain that one.

Setting statistics aside, we’re left with the question: Why does succession planning so often fail? Actually, we know why. There are many reasons – but they boil down to these two:

1. Companies pick leaders without setting them up for success.
2. Companies think that succession is only about picking the right person.

It’s kind of like marriage (another metaphor that will fail me eventually – but not like my marriage). It turns out there’s more to success than just picking the right person:

• Values, Vision & Culture: Effective succession planning is about preserving the vision, values, and culture that drive the organization. (I guess you have to know what those are?)
• Retaining Your Team: It’s also about retaining the people who make up the organization. (Turns out all organizations require people.)
• Running Well: Last, it’s about building a well-running organization.

When these aspects are neglected, companies risk losing top talent, weakening morale, and dulling their edge. It happens all the time. In fact, that is the most likely outcome: succession planning leads to a weakened organization—unless you prepare for something different.

The Strategic Value of Succession Planning

Succession planning is more than a safety net. It’s a strategy that protects against disruptions when a leader steps down, either temporarily or permanently. When all the pieces are in place, it makes the organization run better overall. Organizations that neglect succession planning often face disruptions that could have been mitigated through proactive strategies.

With my Succession360 toolkit (available for free), companies can prepare for three situations:

• Emergency Successions (which happen far more often than you might expect)
• Planned Successions (the one everyone thinks will happen)
• Strategic Staffing, because the entire organization is impacted by leadership transition.

This holistic, or 360-degree, approach keeps the organization steady, even when leadership changes.

Leadership Development: Building a Strong Bench

A key element of good succession planning is viewing leadership as an organizational strength—not an individual one. It’s not about one leader and a team of implementers; it’s about a well-rounded group. Building a strong leadership team and bench ensures that the right people are ready to step up when needed.

Developing leaders from within ensures that future executives understand the company’s culture and mission. Think of it like a stool: the more legs, the sturdier the stool.

Integrating Succession Planning and Leadership Development

For an organization to be truly future-ready, succession planning and leadership development must work together. Here’s how:

1. Develop a Search Committee That Doesn’t Include the Outgoing Executive
   Outgoing executives are often prone to choose the wrong person. They can be consulted but shouldn’t be part of the decision-making process. It’s better to develop a search committee that will make this choice. This is especially important in situations where the outgoing leader was particularly strong. It’s crucial for the organization to develop an internal governance capacity independent of the outgoing leader.
2. Identify Future Needs Based on Strategic Vision
   Think about where the organization is going and the qualities needed in future leaders. This helps you focus on building the right skills for tomorrow’s goals.
3. Define Core Competencies and Structure Leadership Development Around Them
   Strong leaders need skills for the future. Tailor development programs to foster these competencies in alignment with organizational needs.
4. Deal with Issues
   One big reason successors fail is because they inherit a basket of unresolved issues. Here are a few examples that I’ve personally seen regularly complicate successions:
   • Unclear values and vision
   • Unaddressed conflicts
   • Undefined (or poorly defined) roles and responsibilities
   • Inconsistent compensation policies
   • Unrecorded policies, systems, and processes
   • Overdependence on key individuals

   Now is the time to resolve them. Wrap things up. Don’t hand them off.

5. Provide Mentorship and Onboarding Support
   New leaders don’t automatically understand what’s required, especially if they’ve never been a chief executive. This might even be true of leaders in governance roles or on the search committee. As it turns out, the position is usually harder than it looks, especially the “soft” stuff, like people issues. Provide your leaders with the support they need to succeed.

The Benefits of a Future-Ready Organization

Organizations that prioritize succession planning and leadership development see lasting benefits. They adapt quickly to change, experience higher engagement, and retain top talent by providing clear growth paths. This creates a resilient culture where leadership isn’t just about filling roles; it’s about nurturing growth, adaptability, and excellence.

Succession planning and leadership development are more than organizational safety nets; they are vital strategies for resilience and growth in an uncertain world.

So, is your organization prepared for the future? Now’s the time to start planning leadership transitions and developing the next generation of leaders.

Download your free Succession360 Toolkit!

Take good care,
Christian