Leadership
Are You Procrastinating on Succession Planning?
What happens when your CEO suddenly resigns? Discover why most succession plans fail and how to truly prepare future leaders.
April 30, 2025
Imagine this: Your CEO suddenly announces their resignation. Panic sets in. Who steps up? The board scrambles, looking for a replacement. But there’s no one truly ready. The company stalls and investors’ confidence erodes.
Leadership transitions are inevitable, yet many companies treat them as an afterthought—until it’s too late. The question isn’t just who will lead next, but will they be ready when the time comes?
What the Experts Say
Sushant Upadhyay, a Senior Client Partner at Korn Ferry, working closely with board directors, CEOs, and CHROs in the Middle East, warns that most companies fall into a dangerous trap: they identify potential successors, but they fail to prepare them for the reality of leadership.
“The success of succession planning isn’t in the plan itself—it’s in the moment of truth when a key leader steps down. Can you confidently fill the role with someone who has been developed and groomed for the job? If not, your succession plan has already failed.”
So, how do companies get it right? Upadhyay outlines two crucial steps:
Step 1: Assess Leadership Readiness (Before It’s Too Late)
Many organizations assume they have successors waiting in the wings. But have they truly been assessed for leadership readiness?
- Identify the roles that are business-critical—starting with the CEO but also including C-suite executives and division heads.
- Evaluate potential successors based on their leadership competencies, experience, and ability to lead in an uncertain future.
- Categorize leaders by readiness levels: Who is ready now? Who needs development? Who might be a long-term candidate?
Step 2: Build Leaders, Not Just Plans
Finding a promising candidate is not enough. Companies must actively shape them into future leaders:
Executive Coaching & Mentoring – Real leadership isn’t learned in a classroom; it’s learned from experience. Top-performing organizations pair emerging leaders with experienced mentors who challenge them and refine their leadership instincts.
Cross-Functional Rotations – Great leaders see the big picture. By exposing successors to different business functions, they develop a holistic understanding of how the company operates—preparing them for complex decision-making.
Targeted Leadership Development – Leadership is not one-size-fits-all. Future executives need customized development programs that address their unique gaps and prepare them for high-pressure scenarios.
The Moment of Truth: How to Measure Success
Many organizations claim to have a succession plan, but few truly succeed when the time comes. The real test? Look at how leadership transitions actually unfold.
“In three years, when your CEO role is vacant, will you confidently promote someone you identified today? Or will you find yourself scrambling, making a last-minute decision, or worse—hiring an outsider who doesn’t understand your company culture?” Upadhyay asks.
Companies that fail at succession planning don’t just lose talent; they lose stability, momentum, and credibility. The best organizations ensure that leadership development is a continuous process—not a last-minute scramble.
The Leadership Time Bomb
If your top executives walked away tomorrow, would your company survive—or stumble? The difference between thriving and failing lies in whether you’ve developed leaders who are truly ready. It’s time to stop treating succession planning as a checklist and start treating it as a mission-critical business strategy.
Learn more about Korn Ferry’s succession planning services.
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