{"id":276354,"date":"2025-06-06T04:04:35","date_gmt":"2025-06-06T04:04:35","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/succession-planning-in-action-insights-from-hr-leaders\/"},"modified":"2025-06-06T04:04:35","modified_gmt":"2025-06-06T04:04:35","slug":"succession-planning-in-action-insights-from-hr-leaders","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=276354","title":{"rendered":"Succession Planning in Action: Insights from HR Leaders"},"content":{"rendered":"


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It is estimated that between 35-47% of newly promoted<\/a> executives fail within the first 18 months. Given the significant costs associated with executive-level turnover (e.g., estimated to be between 200-400% of annual salary<\/a>) and an increasingly uncertain future facing so many organizations, the activity of succession planning is as important, and as complicated, as it\u2019s ever been. We recently hosted senior HR leaders from various industries in a roundtable at our offices to discuss what is and isn\u2019t working when it comes to succession management. From the myth of \u201cready now\u201d to the struggles of actualizing successor potential and identifying the right<\/em> success metrics everyone should be tracking, their candid reflections highlighted shared challenges and new tactics centered on building stronger, more resilient leadership pipelines.<\/p>\n

Switching from \u201cReady Now\u201d to \u201cReady Enough\u201d<\/strong><\/p>\n

As one participating HR leader explained, \u201cWe had a culture where you had to be perfect. As a result, nobody was ever fully ready. Now, using the term \u2018ready enough\u2019 lets us be less conservative and empowers us to take smart promotional risks.\u201d<\/p>\n

The need for managing this mindset shift \u2013 from requiring absolute perfection of successors to accepting good enough \u2013 was echoed throughout the roundtable. Several organizations began defaulting to external hiring, assuming they could find a \u2018Ready Now\u2019 candidate externally that they were missing internally. However, some organizations have moved away from this default by giving themselves permission to take risks on internal candidates while simultaneously building support ecosystems for newly promoted leaders. Based on our experience, taking (intelligent) risk when promoting from within leads to improved morale and retention of key talent, while reducing uncertainty and shareholder unease.<\/p>\n

The Optimal Balance of Build Versus Buy <\/strong><\/p>\n

While building a robust internal pipeline is crucial, there are of course times when an outside hire is the better strategic choice. The group discussed the ongoing tension they feel between developing internal successors and seeking fresh, external perspectives. \u201cSometimes we ask ourselves, \u2018Why don\u2019t we have the right person internally?\u2019 Other times we realize we need new thinking.\u201d<\/p>\n

To help loosen the tension between build vs. buy, the group discussed:<\/p>\n