Succession Planning Myths: What’s Holding Leaders Back?

Succession planning tends to be a conversation that leaders think about but often delay having as it involves critical decisions about the future of their organization which can be complex, emotional, and uncertain.

While Succession planning is critical to long-term success, it can be difficult to navigate as it can feel unpredictable, and it is often uncharted territory. These conversations can be uncomfortable as there is often a strong emotional attachment to the current leadership which can cloud judgment, making it difficult to address the potential for change. Or, the current successors may not be ready to lead or aren’t suited to lead, which can also be a heavy conversation to begin.

Sometimes, there is a lack of understanding about the scope of succession planning as it is not just about filling a leadership gap when someone retires or leaves… It is often about developing a sustainable pipeline of talent and creating a path for sustainable change.

The unfortunate thing is that not planning for succession puts your organization at risk. 42% of CEOs leave their roles unexpectedly (Harvard Business Review), and in 2024, a record 1,914 CEOs left their positions, marking a 55% increase from the previous year, ​(Interim Executives) and that is just the statistic for CEOs, not other executives, or key resources.

Succession Planning Myths

Here are some of the common myths that people create to reinforce the status quo and avoid addressing the need for planning:

1. It’s Only for Large Companies or Family-run Companies: Many people believe succession planning is only relevant for large corporations with complex leadership structures or only required for family-run companies that have limited leadership structures. Businesses of all sizes need a plan to ensure smooth transitions when key leaders or critical roles change hands.
2. It’s All About Replacing Executives: While a major focus is often on leadership roles, it is not limited to executives. Department heads, senior managers, key technical experts, and high-impact individual contributors can be included in succession planning. It’s about preparing employees at all levels for increased responsibilities. Effective planning identifies future leaders at various levels, not just top executives.
3. It’s a One-Time Event: Succession planning is not one-and-done. It is an ongoing process that should be revisited regularly as circumstances, talent, and organizational goals evolve.
4. It’s Only About Internal or External Candidates: Depending on the team, succession planning can often be focused on internal candidates or external candidates only. In reality, this varies depending on the organization. If you have internal candidates with high potential, they may need coaching or leadership development training to be ready to lead. Whereas external candidates may bring in the right skills but not be the right cultural fit, or have the same level of knowledge of your industry.
5. The Successor Has to Be Identical to the Current Leader: There’s a misconception that when bringing in a successor they must be exactly like the current leader. Planning allows you to look for the best fit for your organization based on your goals, culture, and future growth. This means you could bring in or develop a successor with different strengths and ideas to meet your future needs.

Succession planning inherently involves change – whether it’s leadership, strategy, or organizational culture. By understanding what is holding your team back from having a conversation on succession, you can start moving forward.

X5 Management will be releasing a White Paper on Succession Planning in April 2025 – sign up for our newsletter to be the first to receive it.

How can X5 Management help your team?

X5 Management can help your team with succession planning by providing strategic guidance and support to ensure a smooth transition of leadership and key roles within your organization. We offer training, coaching, consulting, and strategic planning services to align leaders and teams to achieve their goals.

About the Author: Mike Mack, President 

Mike Mack is a trusted Executive Coach, Consultant, and Facilitator who has been helping business teams maximize their potential since 2006 through tailored consulting, training, and coaching. Passionate about leadership, team development, and succession planning, he strives to make a positive impact in every engagement. A four-time Amazon bestselling author, Mike’s books include Remarkable Service, Relationships for Keeps, Lunch with Leaders, and Weekend Wisdom. Mike holds an MBA from Athabasca University and has completed governance training at the University of Alberta. He is an active member of several professional organizations, including the International Coaching Federation, the Institute of Corporate Directors, and the Canadian Association of Professional Speakers.