For Boards: How To Avoid Dangerous Succession Planning Mistakes

For Boards: How to Avoid Dangerous Succession Planning Mistakes

The Crisis Management Trap

In the current climate, many boards are so focused on immediate crisis management and cost control that succession planning keeps getting pushed to "next quarter's agenda." Everyone's so focused on putting out fires that strategic leadership planning feels like a luxury they can't afford right now. But when they do finally address it, they're often making quick decisions that feel safe in the moment but actually create bigger problems down the road.

In the current climate, succession planning often gets pushed to "next quarter's agenda."

The Internal Promotion Default

I get it - promoting from within feels less risky right now. But I've watched boards promote solid performers into roles they're not quite ready for, just to avoid the perceived risk of external hiring.

The problem? Promoting someone who's 70% ready for a role isn't actually safer than hiring someone who's 90% ready but happens to be external. You're just swapping risks - and often for a bigger one.

Promoting someone who's 70% ready for a role isn't actually safer than hiring someone who's 90% ready but happens to be external.

The Pipeline Problem

This might be the most dangerous gap. Boards are telling themselves that since they're not actively hiring, they don't need to think about external relationships or succession pipelines.

But the best succession planning happens when you're NOT desperate. The time to build relationships with potential future leaders is exactly when you don't need them immediately. Wait until you have an urgent need, and you might find yourself with limited, expensive options.

The best succession planning happens when you're NOT desperate.

"Safe" vs. "Right"

A board might say "Let's just promote internally - it's the safe choice." But safe for whom? Safe for the board's comfort level perhaps, but potentially devastating for the organization's future performance.

The truly safe succession choice is the one most likely to deliver results in your next strategic phase, regardless of where that person sits today.

The False Economy

Boards might postpone succession decisions, thinking they'll save money or wait for better market conditions. This is exactly backwards.

Succession planning isn't just about filling current gaps – it's about building leadership capacity for when markets turn around. The organizations investing in leadership development and strategic succession planning right now are the ones best positioned when opportunities return.

Succession planning isn't just about filling current gaps – it's about building leadership capacity for when markets turn around.

The Development Gap

Even when boards do promote internally, they might skip the development support. You can't just move someone from COO to CEO and hope for the best. Internal moves need just as much onboarding and coaching as external hires - sometimes more.

Internal moves need just as much onboarding and coaching as external hires - sometimes more.

What Smart Boards Are Doing

Forward-thinking boards are taking a different approach:

Building Real Bench Strength

They're investing in real leadership development, not just hoping people will naturally grow into bigger roles.

Staying Connected Externally

Even when not actively hiring, they're building relationships with high-potential external candidates for future needs.

Using the Same Standards

They're evaluating internal and external candidates against the same tough criteria, not giving internal people an automatic advantage just because they're familiar.

Planning for Different Futures

They're developing succession plans for multiple strategic scenarios, not just looking for like-for-like replacements.

Investing in Transition Success

Whether they promote internally or hire externally, they're providing proper onboarding and support to set people up for success.

The Strategic Imperative

Succession planning isn't about finding the safest option - it's about finding the right leader for what's coming next. Sometimes that's an internal candidate who's been properly developed. Sometimes it's an external hire who brings fresh thinking and new capabilities.

The key is making that decision based on strategic needs, not comfort levels.

Boards that get succession planning right during tough times create real competitive advantages.

They build stronger leadership pipelines, make better strategic decisions, and position themselves to win when conditions improve.

Succession planning isn't about finding the safest option - it's about finding the right leader for what's coming next.

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ABOUT THE AUTHOR

• Marion Heil is the founder and managing director of Board+CEO Advisors. She is based in Vienna.