- by Sophie Pinkoski

According to DDI statistics, 35 to 47% of leaders fail in their first 18 months in the role. Often these struggles are due to the lack of support and resources required to help new CEOs succeed. While more organizations are taking the initiative to prepare their incoming leaders for the role, they still fall short in offering support within those crucial first months.

One key way you can set your new CEO up for success is to support future leaders well in advance.

This is an intentional strategy to maintain continuity between your leaders to prevent disruption to your organization during the transition period. A robust succession plan can help you create a development program to empower future leaders amongst your team to step into critical roles, should they be the successor. This way, when a leader departs, you can trust your organization will still be in good hands by already having a potential replacement ready. This is particularly critical in an unexpected absence or vacancy of the CEO role.

A common misconception about succession planning is that the job is done when you select your new leader. Yet this is only the beginning. Once you’ve brought your new CEO on board, it’s time to update your succession plan to ensure a strong set up future executives, and a potential CEO. Board's also need to remember that leadership development doesn’t stop once they hire the CEO; it’s not a one and done event. In fact, CEOs have so much more left to learn and will continue to expand their depth of knowledge throughout their tenure.

Your succession plan is only as powerful as its execution.  

Your succession plan will need to grow and evolve with the circumstances surrounding your organization, and to meet your CEO’s and executives' changing needs.

Here are some important steps for taking your succession plan from strategy to action:

Align your plan with your organization’s priorities–– When building your succession plan, keep the future of your organization at top of mind. Think about where you want your organization to be in three to five years' time, then work backwards from there. Consider any roadblocks that might fall into your way. Prepare contingencies for any unpredictable. Variable, including changes to the market and sudden crises that might arise. Having both a long-term succession plan and emergency replacement plan in place will keep your organization agile, able to handle any eventuality. When it comes to determining what it will take to lead in the future, you can create a candidate profile based on where the organization is heading. Define what your organization needs from its leader in the future. Are there any gaps that require filling to anticipate eminent change? What leadership style would be the best fit to satisfy your organization’s biggest priorities?

Identify the future leaders amongst your team–– Once you have built your candidate profile, consider the capacities of your current team. You may find you already have someone capable of taking on leadership responsibilities. If you find you don’t have such luck, one of two things might be happening. Your current team members may not be ready to take on such a role. In that case, consider where you have the resources to invest in development opportunities to build your team’s capacities. Sit down with individuals with leadership potential to identify if their professional goals align with the organization’s strategic priorities; they may not have any interest in taking on further leadership responsibilities. On the other hand, consider whether fresh perspectives and skills are required to help your organization grow in an organic way. It may be time to bring in someone externally.

Invest in professional development–– For a long time, it was normal to expect perfection from our leaders. However, organizations have begun to shift their expectations when finding ideal candidates to fill their leadership roles. CEOs are no longer expected to know everything. It’s unrealistic for them to have all the answers, Instead, they can be empowered to use the skills they have and expand their strengths. In their areas of weakness, leaders should identify other team members and advisors who can supplement them. After all, leadership readiness is something intentionally cultivated over time.

It takes significant effort to build leadership capacities, especially for skills that don’t come naturally for everyone.

Every leader comes with their own unique competencies. There are many ways to invest in increasing those skills. Offer training and development opportunities in areas such as communication, decision making, team management, strategy, and conflict resolution. Mentorship and coaching are also a beneficial option for new CEOs looking to build institutional knowledge and gain perspectives from more experienced leaders who have been through what they’re experiencing now.

Execute and sustain your leadership transition plan–– The real test of your leadership continuity will be how smoothly you manage and sustain your succession plan moving forward once your new leader is put in place. It’s going to take some time to build a new CEO's capacities. Taking on a leadership role for the first time can be overwhelming– they’re going to need time to settle in. Let the departing CEO mentor them in the transition period before the formal handover, if possible. Set them up for success. Throughout the onboarding process, let them develop their skills and make the connections required to build the momentum that will shape their tenure in their leadership role. Remember, the learning process is continuous.

Your leader will change and grow with both the organization and the market it serves.

Measuring their progress will be crucial in determining what works and what doesn’t. Adjust their support accordingly so they’re able to improve to put their best foot forward.

The real strengths of a succession plan lie not only in identifying future CEO candidates, but in allowing your organization to thrive through a leadership transition. When leadership changes are handled with foresight and care, your organization can face the future with confidence. More than a contingency exercise, succession planning is a commitment to resilience. No matter who is at your helm, you position your organization to adapt and grow with a solid sense of direction and purpose.

Further Reading

How To Implement A Successful Succession Plan, Forbes

Your Management Transition Checklist: Putting Your Succession Plan into Action, Stanislaw Consulting

The Best Succession Planning Timeline for a Successful Exit Strategy, ESOP Partners

What Are Succession Planning Strategies?, Indeed

Succession Planning in Action: Insights from HR Leaders, Vantage Leadership

20 Strategies For Navigating Effective Succession Planning, Forbes

From Start to Finish: How to Implement a Successful Succession Plan, Thank Box

Download our free CEO Transition Resource Kit tailored for boards, senior leaders, and CEOs.

Have questions about leadership transition, governance, or family business? Try our free AI tool: Ask Jane