Succession planning often sounds great in theory. Every organization agrees that it’s important. But the truth is, many succession plans fall flat in reality. They live in spreadsheets, sit on shelves, or turn into checklist box-ticking exercises instead of helping leaders prepare for the future. Here’s what’s really going wrong—and what you can do about it.
One of the biggest mistakes is framing succession planning as a one-time project. You decide to build a plan, spend time on it, and then check a box. The problem is that leadership changes don’t follow a quarterly calendar. They can happen anytime, like when someone retires, moves on, takes leave, or is promoted unexpectedly.
By creating a plan once and filing it away, organizations miss out on ongoing adjustments. When roles shift, when people leave, when strategy changes, the plan remains outdated. You end up with candidates who look ready on paper but aren’t prepared when the moment arrives. If succession planning is treated like a project rather than a process, it’s doomed to fail.
Picture this scenario: your leadership team picks a few high-potential names and assigns roles. It sounds smart. But what happens if the role evolves? What if the leadership development path shifts, or the business needs change? It cracks the foundation.
Instead, start with the role. A great succession plan outlines what success in a position looks like. It includes responsibilities, skills required, mindset, and context for where the business is heading. Only then do you assess which internal candidates fit that profile. This approach shifts the focus from “who” to “what,” preparing top talent for evolving leadership requirements.
Far too often succession conversations rely on gut feelings or simply tenure in a role. Who feels like a top performer? Who seems like they should be ready? But emotions and history aren’t reliable indicators of future readiness.
In 2025 only 35 percent of organizations have a formalized succession process in place for critical roles. That means 65 percent are flying blind without data to back their leaders in waiting. And here’s a staggering reality check: 18% of new hires exit during their probation, and only about a third of essential roles are backed by succession plans (McKinsey & Company). These stats show the massive gap between planning and execution.
Organizations need systems that capture real-time readiness data. Who is development-ready? Who needs coaching? What kinds of stretch experiences do they require? Without those insights, succession becomes guesswork.
When HR owns succession planning alone, the results often feel detached from the business. Leaders don’t feel accountable. Plans become HR artifacts. That’s why many never get updated.
In contrast, when executive leaders co-own the process, pathways become relevant. Leaders contribute to defining role success, identifying critical competencies, sponsoring talent, and making sure development aligns with organizational needs. Accountability sits where it belongs and that’s with the business. HR supports, but doesn’t drive.
The most common home for succession plans is Excel. But spreadsheets are static. They don’t integrate with performance systems, pulse surveys, or learning metrics. No one updates them. They gather dust. They cannot evolve.
In 2025, over half of HR leaders say their existing technologies do not meet evolving needs—and 51 percent cannot even measure ROI from these systems (Meridith Elliott Powell). It’s no surprise then that spreadsheets don’t cut it. Organizations need platforms that provide clarity, visibility, and actionable insight to track readiness over time, manage development calendars, and trigger updates when feedback or performance data changes.
In the United States alone, a record 4.2 million people will turn 65 in 2025 (ScottMadden). Many of those are seasoned leaders nearing retirement. Similarly, small and family-owned businesses face the same urgency. Nearly two-thirds of family firms have no documented succession plan (ScottMadden). That means these organizations risk losing legacy knowledge and business continuity. Whether it’s a family business or a public company, succession planning must be treated as a strategic, imminent challenge, not something for “someday.”
It’s not just about replacing people. It’s about building future-ready leaders. In 2025, 75 percent of HR leaders say managers are overwhelmed, and 70 percent admit their leadership programs aren’t preparing people for what’s ahead (Gartner). That spells a leadership development crisis.
When companies fail to embed leadership training into succession plans, they’re asking successors to operate without preparation. Leaders can’t emerge through osmosis. They need structured challenges, strategic coaching, and on-the-job experiences matched to the role.
Succession planning forces hard questions: Who isn’t performing? Who lacks readiness? Who might derail during a transition?
Some cultures opt out. They don’t address performance shortfalls because it’s uncomfortable. Papers say “we develop talent,” but conversations don’t reflect reality. That keeps problematic leaders in place while high potentials leave out of frustration or lack of growth.
Real succession planning uncovers these truths. It promotes clarity in highlighting who needs more time, what gaps remain, and who is genuinely moving forward.
When succession planning focuses only on the top roles, it creates gaps below. Middle managers are the future leadership pipeline. Yet many plans ignore these tiers entirely.
Boards know this matters. A recent survey found 69 percent of directors say unexpected departures of CEOs or other key executives significantly impact their organization; 43 percent are adding C-suite succession planning to board agendas (HCAMag). Still, middle-management readiness is often neglected. When succession fails to cascade through the levels, organizations can experience a leadership void—even if the top roles are covered.
Even the best successor can fail without cultural fit. Culture encompasses behaviors, shared values, ways of working. Too often succession conversations are about skills, promotions, formulas. They miss whether the candidate is going to lead in alignment with the culture that exists or transforms it positively.
Succession plans should include forward-looking cultural priorities: Does this person embrace the way we do things? Are they aligned with our values? Can they promote or evolve culture consciously?
When succession fails, consequences range from minor disruption to full crises. Imagine an executive leaves unexpectedly. A successor isn’t ready. Projects stall. Morale declines. Investors get jittery. Share price drops. A single unprepared transition can halt momentum.
The situation is more severe for small or family businesses. Gallup reports that 74 percent of owner-employers plan to sell or transfer their business when they retire . Yet without proper planning, many of those businesses struggle to find buyers or successors. Some close entirely—losing jobs, community identity, and economic momentum.
These ten failure points become success opportunities when approached proactively:
Set quarterly or biannual reviews tied to performance cycles or strategy refreshes.
Build success profiles that describe responsibilities, capabilities, context—not just the title.
Employ performance ratings, peer reviews, readiness assessments to build objective insight.
Have managers participate in role define, candidate review, development sponsorship.
Use a platform like SuccessionHR to centralize data, track changes, notify leaders.
Recognize demographic urgency within your workforce and prioritize planning accordingly.
Design stretch assignments, coaching, mentoring within planning.
Cultivate a culture where development feedback is honest and frequent.
Include middle and rising managers so transitions don’t break the pipeline.
Add culture alignment questions to your succession criteria.
Succession planning isn’t a luxury reserved for large organizations. It’s a necessity for any group that wants to survive disruption, retain knowledge, and empower its future leaders. When done well, succession planning is a force multiplier. When done poorly, it leaves leaders scrambling and organizations vulnerable.
At SuccessionHR we built our platform to address every one of these pitfalls. We help you move from reactive to proactive. From static to dynamic. From assumptions to data. And from silos to collaboration. If you’re ready to move your succession plan from the shelf into practice, let’s talk.
