Why succession planning matters
Succession planning is not simply about replacing departing leaders; it is about preparing the organisation for the future. Boards that proactively cultivate a leadership pipeline reduce risk, preserve institutional knowledge and signal stability to investors and employees. OnBoard’s board recruiting trends report notes that many organisations are creating long‑term succession pipelines and inviting younger and first‑time directors to serve on boards. Without such planning, companies may be forced into rushed appointments that do not align with strategy or culture.
Beyond mitigating risk, succession planning supports diversity and innovation. By identifying and developing high‑potential talent from different backgrounds, boards can broaden their perspective and better reflect the communities they serve. Planned transitions also ease cultural adjustments: incoming leaders have time to learn the organisational context, build relationships and set a clear agenda.
Building a long‑term succession pipeline
Effective succession planning is a continuous process rather than a one‑off event. Key steps include:
- Align succession with strategy: Boards and executives should define the capabilities required for future success. This involves analysing market trends, growth goals and potential disruptions to determine which skills and experiences will be critical in three to five years.
- Identify potential successors early: Use performance data, 360‑degree feedback and behavioural assessments to pinpoint high‑potential leaders across the organisation. Look beyond functional expertise to evaluate qualities such as adaptability, learning agility and values alignment.
- Develop talent deliberately: Provide targeted development opportunities including stretch assignments, cross‑functional rotations and formal education. Executive coaching, which has been shown to increase individual and team performance, can accelerate readiness for senior roles.
- Encourage diversity and inclusion: Ensure that succession pools reflect diverse backgrounds, ages and experiences. Recruiting younger and first‑time directors not only expands the talent pool but also infuses new ideas and perspectives.
- Maintain transparency and accountability: Boards should regularly review succession plans, discuss readiness levels and adjust development plans. Progress should be measured and reported to ensure momentum.
The role of interim leadership
Interim executives—senior leaders appointed for a defined period—play a crucial role in maintaining continuity during transitions. They step in when a key leader departs unexpectedly, when an organisation is undergoing transformation or when specialised expertise is needed for a project. Interim leaders:
- Bridge the gap: They keep the organisation moving forward while the board conducts a thorough search for a permanent successor. This reduces downtime and maintains stakeholder confidence.
- Provide fresh perspective: Interim executives often bring extensive experience from multiple industries and can introduce new ideas and best practices without being constrained by internal politics.
- Facilitate transformation: For organisations undertaking major change—such as digital upgrades, mergers or restructuring—interim leaders can manage the transition and mentor internal successors.
- Allow assessment: Working with an interim leader can inform the organisation’s understanding of what is needed in a permanent appointment. Boards can clarify role requirements and cultural fit before making a long‑term commitment.
Interim leadership should complement, not replace, permanent appointments. The goal is to create a seamless continuum where interim executives support the organisation until the right long‑term leader is selected and ready to assume the role.
Integrating succession and interim strategies
To effectively combine succession planning with interim appointments, boards should:
- Plan for contingencies: Identify roles where interim coverage may be needed and build a roster of trusted interim executives. Work with an executive search firm to maintain relationships with experienced interim leaders.
- Communicate openly: Transparency about leadership transitions reduces uncertainty. Communicate the rationale for interim appointments and the process for selecting permanent successors.
- Leverage interim leaders for mentoring: Encourage interim executives to mentor high‑potential internal candidates. This accelerates development and ensures knowledge transfer.
- Review and adjust: Following a transition, evaluate the effectiveness of the interim appointment and the succession plan. Identify lessons learned and refine processes to improve future transitions.
Supporting emerging leaders
Succession planning is not solely a board responsibility; it requires collaboration across the organisation. Human resources, heads of people and business unit leaders should actively support the development of future leaders. Strategies include:
- Culture of feedback: Foster an environment where constructive feedback is part of everyday interactions. Feedback helps emerging leaders understand their strengths and development areas.
- Learning opportunities: Provide access to training, leadership programs and peer networks. Encourage participation in industry associations and board observer programs to build governance skills.
- Career coaching: Personalised coaching helps leaders gain self‑awareness, improve decision making and develop resilience. Coaching also assists in navigating role transitions and managing increased complexity.
- Recognition and retention: Recognise high‑potential leaders for their contributions and provide career paths that keep them engaged. Succession planning fails when the organisation loses its rising stars to competitors.
In a volatile market, leadership gaps can undermine strategy and morale. Building a succession pipeline and incorporating interim leadership ensures that organisations remain agile, inclusive and resilient. By aligning succession plans with strategic priorities, investing in talent development and embracing interim executives when needed, boards and CEOs can navigate transitions smoothly and safeguard organisational performance.
Galvin‑Rowley Executive specialises in executive search, board search and interim appointments, helping clients across Australia find leaders who can deliver sustained success.
Contact Jen Galvin-Rowley to discuss your interim leadership requirements on 0410 477 235 or jen@galvinrowley.com.au
