Succession plans: is your company developing leaders or just filling positions?

The succession of leadership is not just about listing potential candidates for promotion. It involves much more than that. It is about preparing future leaders with the skills necessary not only to occupy a position, but also to ensure sustainable business growth.

In this article:

• What it is: The article shows that a leadership succession plan goes far beyond listing candidates for promotion: it is about preparing future leaders with the skills necessary to sustain business growth. It uses a real case of an IT manager prepared to succeed the founding CTO of a company.
• Why it matters: According to Gallup, companies with poorly prepared leaders show up to 23% less engagement, with negative impact on productivity and higher risk of turnover. Deloitte points out that 86% of leaders consider continuous development crucial for the success of future generations, but few implement this effectively.
• What to do: Adopt a proactive approach that combines talent identification with continuous development, aligned to the future needs of the business. Go beyond technical training and strengthen behavioural skills such as planning, organisation, resilience and emotional intelligence.

Real case: preparation for the CTO role

During a leadership mentoring, I worked with an IT manager who was hired to succeed the CTO of his company. The CTO was a founder of the business and was planning his exit. However, the manager had an important gap: although excellent in improvisation and flexibility, he lacked organisation and planning – essential skills for a C-Level.

After months of leadership development, focused on analysis, organisation and planning, he was ready to assume the role. This preparation was crucial for him to remain in the position until the company's sale.

Continuous leadership development: a process that never ends

This case highlights something crucial: the development of leaders is an ongoing process. Although he became fit for the CTO role, there were still other skills to be developed. This teaches us that preparing leaders goes beyond initial training – it requires constant support to face new challenges.

Leadership succession: having a candidate list is not enough

According to the Harvard Business Review (HBR), many organisations fail by treating leadership succession as a simple list of potential candidates. A study published by HBR reveals that long-term success of a leader depends on a robust plan that combines talent identification with continuous skill development. This development should be aligned to future business needs, focusing on both technical and behavioural skills, such as planning and organisation.

Impact of poorly prepared leaders

The Gallup found that companies with poorly prepared leaders show up to 23% less engagement, negatively impacting productivity and organisational performance. Moreover, unprepared leaders increase the risk of employee turnover, since poor management is one of the main causes of disengagement.

Leadership development in a rapidly changing scenario

According to Deloitte, continuous leadership development is essential to prepare future executives, especially in rapidly changing environments. A report from the consultancy indicates that 86% of leaders believe continuous development is crucial to ensure the success of future generations. However, few succeed in implementing these strategies effectively.

Successful leadership succession: more than technical training

An effective leadership succession requires a proactive approach that goes beyond technical training. It involves strengthening resilience and emotional intelligence, critical factors in dealing with the demands of a volatile market.

The role of behavioural skills in the future of work

According to the World Economic Forum, the development of these behavioural skills will be fundamental to thrive in the future of work. These skills complement organisational needs in unstable and competitive environments.

How to ensure strategic leadership succession?

Whether through accelerated growth, retirement of senior leaders or founder departures – continuous development of leadership is essential. The success of the organisation depends on it. Preparing leaders is not an option, but a strategic necessity to avoid problems such as drop in productivity and disengagement.

Invest in developing your leadership today! Do not wait until it is too late to prepare your future leaders.

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