What Works And What Fails

When people think about succession planning, they picture TV drama, with backstabbing boardrooms, surprise heirs, and power struggles. In the case of Tesla, the recent headlines about Elon Musk’s potential successor have made it feel just as dramatic. As of now, there is no formal plan publicly shared for who would take over if Musk were to step aside, and the speculation may not lead anywhere. But if the rumors are even close to true, it raises an important question: what does it take to ensure a business can thrive when its most recognizable leader is no longer in charge? A 2023 Deloitte study found that only 14% of leaders are confident in their organization’s succession planning efforts. That gap highlights a deeper issue: most companies do not understand what succession is really for. It takes more than keeping things running. Companies need to stay curious, build skills, and support a strong culture.

Why Succession Planning Needs A Fresh Perspective

Succession planning is often treated like a static emergency file. Many leaders assume it only matters when someone resigns, retires, or faces a crisis. But the most effective succession planning strategies are dynamic. They begin by asking: what roles are essential to our mission, and how are we helping people grow into them?

Beyond naming a successor, organizations must create a structure that encourages exploration, growth, and visibility at all levels.

What Happens When Succession Planning Works

Microsoft offers one of the strongest examples of a well-managed succession planning process. When Satya Nadella replaced Steve Ballmer as CEO, the transition was supported by leadership development, long-term vision, and internal trust. Nadella’s influence reshaped the company’s culture and positioned Microsoft for renewed relevance.

Procter & Gamble also demonstrates consistency through its disciplined approach to succession planning. With clear pathways and leadership assessments, P&G has navigated multiple CEO transitions with minimal disruption. They were successful due to having succession planning built into their culture.

Apple is another widely praised example of a long-view approach to succession planning. Steve Jobs had a clear plan for handing the reins to Tim Cook, who had already been leading major operations internally. The transition was gradual, intentional, and culturally aligned. Cook didn’t try to become Jobs. Instead, he built on Apple’s strengths while reshaping its direction, proving that good succession is more about readiness than replication.

What Happens When Succession Planning Fails

General Electric’s transition from Jack Welch to Jeff Immelt illustrates how unclear succession planning can weaken a legacy. Despite years of preparation, the company faced years of underperformance, revealing flaws in how readiness had been defined and culture managed.

WeWork, meanwhile, shows what happens when a company ignores succession planning altogether. When Adam Neumann exited abruptly, the organization scrambled. Without a clear roadmap or leadership development pipeline, it struggled to rebuild trust and strategic direction.

Turing Pharmaceuticals, led by Martin Shkreli, demonstrated what happens when leadership is built around a personality rather than a plan. Shkreli’s controversial actions and abrupt downfall left the company scrambling for direction and damaged its public reputation. Without a succession framework or trust in leadership beyond one person, recovery became more about damage control than growth.

How To Create A Culture That Supports Succession Planning

Succession planning cannot thrive in a vacuum. It depends on whether people feel safe offering ideas, taking risks, and growing visibly. This is about psychological safety. When curiosity is rewarded and diverse thinking encouraged, potential leaders start to emerge naturally.

Companies that support learning, mentorship, and honest feedback at all levels are more likely to spot talent early. That does not happen in organizations where leadership is seen as fixed or inherited.

What Succession Planning Should Look For In Future Leaders

Tenure is not the same as readiness. Some of the best candidates may be earlier in their careers but show strong listening, adaptability, and collaboration. These are the people asking thoughtful questions, building bridges between teams, and staying open to change.

In my interviews with thousands of leaders, the ones who stand out are not just experienced. They are curious. They challenge their own thinking. They know how to bring others with them. That was also true of Steve Forbes. When I interviewed him, he shared how he was the natural successor to his father but still had to evolve the company’s identity. When the media world shifted, he led the charge into digital, not by trying to preserve the old way, but by asking what was possible next.

Why Succession Planning Should Reach Beyond The C-Suite

Many organizations make the mistake of focusing only on the top. But the middle is where most work gets done. When mid-level leaders leave unexpectedly, the ripple effects can disrupt teams and timelines.

Succession planning should include mentoring, rotational opportunities, and shared knowledge. This ensures the organization can move forward even when individuals move on.

Key Takeaways For Stronger Succession Planning

1. Start thinking about succession before you need to. It should be part of regular leadership conversations, not something that kicks in when someone gives notice.
2. Make it part of your everyday culture. When people are encouraged to grow, share feedback, and stay curious, you start to see who is ready for more.
3. Avoid putting all your hope in one person. Build a bench. Having options helps you respond to change without scrambling.
4. Look beyond titles. The best future leaders are often the ones showing curiosity, agility, and strong collaboration.
5. Don’t skip the middle. Mid-level leaders keep the business moving. Plan for transitions at every level, not just the top.
6. Check in regularly. Succession plans need attention. Revisit them often to make sure they still fit the organization’s direction.

A Practical Approach To Succession Planning

There’s no perfect way to prepare for every leadership change, but not having a plan at all is where most companies fall short. The organizations that handle it well don’t treat it as a formality. They build it into how they develop people, make decisions, and share responsibility. Think of succession planning less as a task to check off and more as a habit that keeps your team ready for whatever comes next. Whether someone leaves unexpectedly or grows into a new opportunity, you are not caught off guard. Leadership transitions are part of growth. If your people are learning, stepping up, and staying curious, then you are already doing the most important part of planning for the future.