86 % of senior leaders consider succession planning "urgent" or "important," but only 13 % feel they execute it effectively.
Meanwhile, forced CEO turnovers cost companies billions of dollars. Firms that lacked succession planning lost an average of $1.4 billion in shareholder value, according to myshortlister.com.
These numbers make it clear: without a proactive, structured plan, leadership changes risk damaging both performance and morale.
Building an internal bench doesn’t happen overnight—it requires:
Defining critical roles and core competencies.
Identifying 2–3 qualified successors for each key role.
Offering targeted development opportunities (e.g., mentorship, cross-functional rotations).
Tracking readiness with metrics like time-to-fill, successor coverage, and diversity in the pipeline
Modern tools, including AI-powered talent analytics, can reveal hidden potential and mitigate bias in promotion decisions.
A Deloitte study reveals that organizations with CEO-level ownership of succession and strong leadership engagement outperform others.
To embed succession:
Tie leadership development into performance metrics.
Keep succession plans transparent, dynamic, and part of ongoing strategy—not just a once-a-year exercise.
Incorporate periodic check-ins and updates tied to business milestones.
While dedicated MPR episodes on succession are scarce, there’s a valuable ShovelTalk episode featuring the University of Minnesota’s Michael Darger that explores succession in community and small business contexts.
Podcast: Original Succession Planning Research: Michael Darger
Host: ShovelTalk (Golden Shovel Agency), October 2024
Darger’s insights emphasize preparing next-generation leaders early and engaging economic developers to ensure smooth local transitions.
| Step | Action |
|---|---|
| 1 | Launch a talent review. Identify critical roles and current successor readiness. |
| 2 | Set measurable goals. Define target bench strength, diversity, and readiness windows. |
| 3 | Invest in development. Offer leadership rotations, mentoring programs, and stretch assignments. |
| 4 | Establish governance routines. Schedule quarterly reviews by executives and HR to monitor pipeline health. |
| 5 | Keep it fluid. Update plans with market changes, internal promotions, and business pivots. |
As executive search specialists, our credibility depends on anticipating client needs and delivering seamless leadership transitions. A strong succession framework not only minimizes organizational risk but also empowers companies to thrive through change.
By embracing this proactive approach, grounded in data, local insights, and strategic alignment. SkyWater partners with leaders to build resilient leadership pipelines that support sustainable success.
Succession planning is far more than an HR checkbox; it’s the roadmap for organizational resilience. For C‑suite and HR leaders: start with clear competency models, build internal bench strength, leverage analytics, and embed regular governance. And for Minnesota-based firms: tune into ShovelTalk’s Michael Darger episode to hear how succession planning keeps communities and businesses strong even at the local level .
If you're aiming to strengthen your leadership pipeline or design a succession strategy tailored to your organization, SkyWater Search Partners is here to help.