Future leaders wanted: Rethinking succession planning for long-term success

When change is the only constant, businesses need strong foundations to avoid disruption. Leadership, of course, sits at the centre of those foundations. And to be successful in the long term, businesses need to consider who’s equipped to lead not just today, but also tomorrow. But finding and communicating with future leaders is easier said than done.

Confidence in the leadership pipeline is low

In 2023, a survey by management consultant DDI revealed that only 12% of global companies had confidence in the strength of their leadership bench. For boards, which are typically responsible for succession planning, evolving global priorities and multiple transformations have made it harder to align their leadership pipelines with long-term organisational goals, mostly because of evolving skill requirements. 

But an upswing in executive turnover means that succession planning is more important than ever. How can businesses get more proactive? And does this create opportunities for thought leadership?

How to find and secure future leaders now

First, boards must change their selection methods so they can anticipate shifting priorities and future needs. This starts with strong alignment on the skills, experience and personal characteristics needed for each leadership role. Evaluating existing leaders will be vital here, because it reveals what already works well and where there may be areas for improvement. This also helps boards to work out how effective (or flawed) their previous succession planning methods were. 

Then, boards must include a wide range of internal people in their decision-making. If they don’t, they risk deviating too much from evolving business priorities. So they will need to move away from traditional top-down selection methods and instead tap into experiences from across the organisation. It might feel awkward to involve the existing CEO or relevant executive in the process, but doing this will give the board unique, first-hand insights into what the job needs. 

To expand the pool of available talent, boards should look beyond direct reports and traditional succession profiles, including mid-level managers and emerging talent. This will also help boost the diversity of succession candidates as it brings forward people who may otherwise not get the opportunity to compete for top roles. 

Finally, it’s crucial to give candidates enough development support to get them ready to succeed from the start. This includes giving them experience in different business functions and regions around the world, as well as providing them with mentors to encourage knowledge-sharing – a common challenge when executives leave. 

From internal planning to external influence

Succession planning goes a long way beyond talent management. Instead, it’s a central aspect of any long-term business strategy — and the way companies approach it can strongly influence their public perception. 

As succession planning can be a sensitive subject, companies must have clear internal communication strategies in place not just to keep people informed, but engaged. According to Jessica Leyshon, global marketing director at global software company Sage, carefully planned communication around leadership transitions and future leaders can boost employee morale, build trust and improve retention. 

When it comes to external engagement, the subject offers ample opportunities for impactful thought leadership. Businesses that are transparent about how they appoint their leaders will stand out not just because it demonstrates a commitment to strategic resilience, but because it sheds light on the humans behind the business. Tapping into this can be a powerful way to connect with C-level audiences and, perhaps most importantly, open the door to early engagement with future leaders.