Strategic Reflections on Succession Planning

In our recent webinar, which I had the pleasure of co-presenting with Javier Alonso Solá, we explored the essential principles of effective succession planning, the common challenges organizations face, and the reasons it must be integrated into any long-term strategic agenda aimed at ensuring leadership continuity and institutional resilience. 

The Strategic Imperative of Succession Planning 

Key indicators highlight the urgency: 

• 51% of companies have no identified CEO successor (Stanford GSB). 

• 70% of global executives acknowledge they are unprepared for abrupt leadership changes (Deloitte). 

• Internally promoted leaders demonstrate a 25% higher retention rate over two years (Gartner). 

Nevertheless, only 22% of organizations have a formal succession plan for the COO role (Russell Reynolds Associates), revealing a considerable disconnect between perceived importance and actual implementation. 

The Hidden Costs of Executive Departures:

Replacing a high-performing C-level executive can entail costs of up to €400,000 when recruitment, integration, operational disruption, and mis-hire risks are taken into account. As we emphasized during our session, unforeseen leadership transitions can significantly undermine both business performance and internal morale. 

Beyond the C-Suite: A Broader Perspective Succession planning should not be confined to the top tier of leadership. As Javier Solá noted, “C-1 to C-3 positions form the operational core of any organization.” Overlooking succession in these layers can lead to structural fragility and executional gaps. 

Frequent Missteps 

• Confusing ownership with leadership: Emotional ties may obscure rational talent decisions. 

• Focusing on a sole successor: Overdependence on a single candidate increases strategic vulnerability. 

• Limited board engagement: Effective succession planning requires active governance oversight. 

Recommended Practices 

1. Begin Early: Succession must be embedded in performance metrics and reviewed periodically. 

1. Define Success Profiles: Establish objective, role-specific benchmarks to assess candidate readiness. 

1. Develop Internal Talent: Offer high-potential employees diverse, stretch assignments to build readiness. 

1. Promote Exposure: Encourage future leaders to engage with boards and senior leadership forums. 

Evaluating Outcomes Robust succession plans are evaluated through: 

• Readiness assessments and leadership potential matrices 

• Average time to fill senior roles (optimal range: 30–60 days) 

• Long-term retention rates of promoted executives 

Our Structured Approach Javier and I outlined a six-week methodology combining behavioral assessments, strategic business simulations, and implementation planning. This structured process equips potential successors with both foresight and executional acumen. 

Succession planning should not be viewed as a contingency exercise, but rather as a proactive investment in the continuity, resilience, and adaptability of leadership. As Javier aptly remarked, “Succession is not a risk to manage—it is a responsibility to lead.” Organizations that act early and deliberately will be best positioned to sustain performance across generations.