JLC.2026

Why succession planning is important?Succession planning must evolve from an HR process into a core strategic disciplineembraced by leaders and boards. It is fundamentally about mitigating enterprise risk andensuring business continuity both in times of crisis and through planned leadershiptransitions. While many organizations treat it as a periodic talent review exercise, its valuelies in real business outcomes: leadership continuity, organizational resilience, and sustainedperformance.Recent research shows stark gaps in practice versus ambition. For example, only about 35%of organizations have a formalized succession planning process for critical roles, and as fewas 13% feel confident they have the leaders needed for the future. Furthermore, less thanhalf of incoming CEOs are internal promotions, signalling a lack of successor readiness atthe top of the leadership pyramid.Defining High Potential (HiPo): What It Really MeansIdentifying high potential talent goes beyond performance rankings. High-potential (HiPo)employees are those who can perform at greater levels than peers, demonstrate rapidlearning agility, and exhibit leadership capabilities for broader or more complex roles. Thistypically includes: Performance track record, combined with evidence of leadership flexibility,Cognitive, emotional, and adaptability competencies, Capacity for rapid development withexposure to stretch assignments and ambiguityResearch shows that organizations that explicitly define high potential are up to 7× moreeffective at planning succession than those that do not. However, many companies struggleto operationalize this: around 70% fail to correctly identify high-potential employees forleadership roles, and 45% still lack a structured process for doing so. Common internalbenchmarks based on my experience for HiPo populations range from 5%–15% of theworkforce with many companies targeting roughly 10% as the “sweet spot” for practicalleadership pipelines.People Readiness: Prioritize Actual Preparedness, Not Just IdentificationA critical distinction in effective succession planning is readiness: the extent to whichidentified successors can step into a role today versus in the future. Typical readinesscategories used by leading organizations include: Ready now can assume the roleimmediately with minimal transition support / Ready in 1–2 years with focused developmentor stretch assignments /Ready in 3–5 years where longer-term development is requiredTop-quartile performers in succession maturity achieve up to 85% coverage of critical roleswith successors ready across these horizons, compared with only 35% for lower performers.They also deliver internal fill success rates as high as 87%, dramatically reducing time-to-filland operational disruption when compared to less mature peers.This kind of readiness requires far more than a tick-box exercise . it requires rigorousassessments, evidence-based development plans, and progressive role experience thatreflects future role demands. Indeed, a core pitfall in many organizations is measuring Classification – FOR INTERNAL USEONLY process completion (e.g., “90% completed development actions”) rather than true capabilityprogression toward strategic needs.Success Rates: The Reality CheckDespite widespread awareness, the effectiveness of succession planning remains low: Only18% of organizations feel their leadership pipeline is ready to meet future needs. More than50% of organizations lack a contingency plan for unexpected CEO departure. 92% of boardmembers are satisfied with current CEOs, but only 37% are satisfied with successionplanning.When viewed as leaders stepping into planned roles (e.g., internal successor movement),research suggests actual success rates are often below 25% underscoring the disconnectbetween planning processes and real outcomes. However, companies that have integratedsuccession planning with strategic goals and capability criteria consistently outperform peersexhibiting higher revenue growth, retention of top talent, improved agility, and strongershareholder returns.Ownership and GovernanceBecause succession planning is fundamentally about business outcomes, it should beowned by leaders and boards, not delegated to HR. The role of the CHRO is critical but as afacilitator, challenger, and guardian of process rigor, rather than the primary owner ofsuccession decisions.From People-First to Business-First: A Capability-Driven Approach to SuccessionTo meaningfully improve both leadership readiness and long-term succession success rates,organizations need to move beyond traditional, people-first succession planning and adopt abusiness-first, capability-driven approach. Too often, succession decisions are shaped byfamiliarity, tenure, or how closely a potential successor mirrors the current incumbent. Whileexperience and performance remain important, they are not sufficient in a rapidly evolvingbusiness environment. A recent webinar from Russell Reynolds, drawing on the livedexperiences of senior Chief People Officers, reinforced the urgency of this shift: successionplanning must be anchored in future business needs, not past role definitions. Classification – FOR INTERNAL USEONLY Classification – FOR INTERNAL USEONLYsuccess rates are not a failure of talent they are a failure of ownership, courage, andstrategic clarity.High-performing organizations approach succession planning as an ongoing businessdiscipline. They place the future of the enterprise ahead of short-term comfort, acceptcalculated risk in developing internal leaders, and make deliberate bets on potential ratherthan waiting for perfection. In doing so, they dramatically increase leadership continuity,accelerate decision-making, and protect organizational value at moments that matter most.Ultimately, the quality of succession planning is a direct reflection of leadership maturity.Boards and CEOs who own this agenda with HR as a rigorous facilitator send a clear signal:the future of the business is being actively built, not passively hoped for.

Leadership is evolving. Traditional models focused on authority, expertise, anddecision-making as the core of a leader’s value. Leaders were expected to have broadknowledge, deep experience, and the ability to provide direction decisively. Team memberscontributed, but the final decisions and strategic vision were often concentrated in theleader’s hands. Success was measured by control, compliance, and the leader’s ability toguide the organization through known challenges. As I did mention in a previous articleleader traits had to evolve combining overtime IQ, with EQ and then with AQ but that s notenough. .Today, the role of the leader is shifting dramatically due to AI but also to the businessdynamic and macro economical environment. Experience and technical knowledge, whilestill valuable, are no longer the primary differentiators. Knowledge is accessible to a largeaudience, and we can speak about a kind of democratisation of knowledge due to AI wellknown tools who are diffusing across the organization and daily life.. In an increasinglycomplex, dynamic, and unpredictable environment, leaders face unique challenges thatcannot always be solved with past solutions or individual expertise. Instead, leadership isbecoming more about serving and enabling employees, guiding them to co-createsolutions, make decisions, and execute effectively.The Three Dimensions of Modern Servant LeadershipFrom my perspective, the modern leader’s role can be understood through three keydimensions that extend the principles of servant leadership whereas decision makingremains one of the key unchanged dimension. Classification – FOR INTERNAL USEONLY A well-framed problem is not enough if employees do not feel safe to contribute. Leadersmust intentionally foster an environment of psychological safety so team members canspeak freely, share unconventional ideas, and raise concerns without fear of judgment orreprisal. Leaders must show their vulnerability and openly acknowledge what they do notknow or where they need help. This sets the tone that imperfection and learning areaccepted. It is also important that leaders make it explicit that questioning assumptions isvalued and necessary for problem-solving. As usual recognition of contributions matters.Publicly acknowledge ideas and input, reinforcing that all perspectives are important whileemphasizing learning and solutions rather than fault-finding when mistakes ordisagreements arise, key to avoid blaming. Finally showing and demonstrating genuineinterest in what team members are saying, paraphrase their points, and integrate their ideasinto discussions contribute also in creating the right environment.By combining clear problem framing with psychological safety, leaders enable employeesto approach challenges confidently, contribute their best thinking, and collaborate effectivelytoward solutions. Classification – FOR INTERNAL USEONLY  Coaching and Mentoring Leaders provide guidance, advice, and encouragementrather than prescriptive instructions. Checkpoints and Iterations – Regular touchpoints to anticipate challenges, adaptstrategies, and maintain alignment. Resource Planning Tools – Ensuring teams have access to the tools, data, andskills required to succeed.This approach ensures employees are empowered and supported, making the leader atrue servant who removes barriers and enables high performance.Servant Leadership new Idea ?The approach I mentioned above is basically derived from the concept of “servantLeadership Theory” but AI makes it even more contemporizing than the first time it wasintroduced.“Servant leadership”, first articulated by Robert K. Greenleaf in the 1970s, provides atimeless framework for this approach. Its central idea is simple: leaders exist to serve theirpeople first. Unlike traditional hierarchical models that prioritize power, control, or authority,servant leadership emphasizes empathy, active listening, ethical behaviour, stewardship,and a genuine commitment to developing others’ capabilities.By embracing these principles, modern leaders foster environments of trust,collaboration, and shared responsibility, where employees feel empowered to contributemeaningfully and make decisions collectively. Leadership becomes less about being the“expert in the room” and more about enabling the collective intelligence, creativity, andcapability of the team.The Transformative ImpactOrganizations that embrace servant leadership experience in combination with AIintroduction have indisputable benefits such as some of them listed hereafter: HigherEngagement and Commitment (Employees feel valued, respected, and motivated) .BetterDecision-Making (Diverse input leads to more innovative, well-rounded solutions).Sustainable Performance (Success stems from collaboration and shared ownership ratherthan dependence on a single leader). Agility and Resilience (Empowered teams respondmore effectively to novel challenges).“Servant leadership” is particularly relevant today because it amplifies the strengthsof the team rather than relying solely on the leader’s knowledge or authority.ConclusionModern leadership is about service, not control. Leaders must frame challengesclearly, cultivate inclusive and psychologically safe environments, and guide execution bysupporting their teams. By applying practical tools in each of these dimensions, leaders canenable employees to perform at their best, make better decisions collectively, and innovatesustainably. Servant leadership remains the most effective framework for this new paradigm:leaders who put their people first create stronger, more engaged, and more resilientorganizations, capable of thriving in a complex and ever-changing world. Classification – FOR INTERNAL USEONLY Modern leadership is therefore less about being the “expert in the room” and moreabout orchestrating the room so the best thinking emerges and then stewarding decisionswith transparency and responsibility