In 2025, over 4.2 million Americans will turn 65, a record-setting milestone that signals a dramatic generational shift in the workforce. Yet, only 19% of organizations have a formal succession plan in place to prepare for leadership changes.
This gap isn’t just a planning oversight—it’s a business risk.
When a senior leader retires, moves on, or steps down unexpectedly, the impact isn’t just felt in an empty office chair. Teams lose momentum. Projects stall. Institutional knowledge walks out the door.
Without a succession plan, organizations often scramble to patch the hole—reacting instead of responding. The result? Costly hiring delays, internal confusion, and sometimes, poor cultural fit in a rushed replacement.
Too many companies treat succession planning as a “someday” initiative. But that’s no longer realistic. The pace of change—economic, demographic, and technological—demands proactive thinking. Succession planning isn’t just about retirement; it’s about resilience.
Leadership isn’t static, and your plan shouldn’t be either.
Effective succession planning does more than identify successors. It strengthens your bench, fosters mentorship, and reinforces strategic goals. It’s a signal to your team (and your stakeholders) that continuity and culture matter.
It doesn’t need to be complicated, but it does need to be intentional.
If your organization doesn’t have a plan yet, you’re not alone—but you are exposed. Here are five concrete actions you can take to begin succession planning today:
Start by pinpointing the positions that are vital to your organization's continuity and success. These are typically roles with significant decision-making authority, technical expertise, or institutional knowledge. Ask: “If this person left tomorrow, what would break?”
Review your current team to identify individuals who show leadership potential, deep institutional understanding, or adaptability. You don’t need to name successors immediately — just begin noting who could be developed for more responsibility over time.
Have employees in critical roles document their workflows, contacts, decision-making criteria, and key files. This helps preserve institutional knowledge and reduces disruption when transitions happen unexpectedly.
Begin regular 1:1 discussions with high-potential employees about their goals, interests, and growth areas. Use this to align their development with potential future roles. Even informal mentorship or stretch assignments can build readiness.
Develop a basic template that outlines each key role, potential successors, development actions needed, and estimated readiness timelines.
Because the best time to plan for tomorrow’s leaders… is today.
