Succession Planning, the Board's Blind Spot

Boards that do succession planning well take charge of shaping the future. And in doing so, they elevate governance from oversight to stewardship.

- ROOPA KUDVA

SUCCESSION PLANNING is often seen as an HR responsibility or something to be dealt with when the current leader is about to retire or move on. But this view is shortsighted and risky. In truth, succession planning is one of the most strategic responsibilities a board holds. Done well, it ensures continuity, sustains performance, and builds organisational resilience. Neglected, it can lead to confusion, internal power struggles, or even business disruption. Proactive, systematic, and transparent succession planning is the hallmark of strong governance.

Why succession must be a board priority

Most boards would agree in principle that succession is important. Yet in practice, it is often postponed, handled reactively, or delegated without sufficient oversight. One reason is discomfort. Discussing succession can feel like questioning the current CEO's tenure. Another reason is the urgency of compliance, operational reviews, and quarterly performance discussions, which often crowd out long-term planning. Leadership transition is not an episodic but an ongoing process with the same strategic importance as capital allocation or risk management. Few decisions influence a firm's trajectory as much as the choice of its next leader.

Start with talent reviews, not just replacement plans

Succession planning goes beyond the CEO and includes building a pipeline of leaders who are ready to step up when needed.