08 Sep Getting Serious About Succession: Three Reasons You’re Not Planning for It (and Two Reasons Why You Only Think You Are)
Succession planning often grabs headlines with dramatic CEO exits at major brands – like the recent shake-ups at Disney or the bold ownership handoff at Patagonia, where founder Yvon Chouinard made Earth the company’s only shareholder. But you don’t have to be running a Fortune 500 firm to face the same questions. And while many private companies plan to transition ownership within the next several years, most still lack a formal succession plan. So why do so many leaders say succession matters and yet do almost nothing about it?
Reason #1: The immediate future is the one you’re focused on. It’s not surprising when leaders focus their energy on dealing with the immediate – especially in a time when uncertainty is the norm. But the environment alone can’t account for the widespread lack of succession planning in private companies. The reality is, unless a top leader pushes succession planning because it’s a vital, strategic issue, it won’t happen. Day-to-day business concerns will always get first dibs on your time.
Reason #2: You’re not ready for the difficult conversations. When leaders say, “I don’t have time” or “the business needs my attention,” what they often mean is “I’m not ready to face this head-on.” Succession planning requires difficult conversations and honest self-examination. Instead of putting it off until you feel ready, focus on how to prepare yourself for those conversations. As Susan Scott, author of Fierce Conversations, reminds us: “The most valuable thing any of us can do is find a way to say the things that can’t be said.”
Reason #3: You feel a sense of dread but not a sense of urgency. Whether stepping away feels far off or just ahead, it’s tempting to believe there’s no need to plan today. Most leaders carry quiet doubts in the back of their minds, but doubt alone rarely drives action. The key is shifting from avoidance to intentional steps: set a clear goal, give yourself a deadline, or talk with other leaders who’ve already navigated succession. A small move now can break the inertia and reveal more compelling reasons to start.
Reason #4: You’ve planned for ownership, but not for management. When private companies talk about succession, they’re almost always referring to ownership – who will own shares or control the business in the future. Management succession on the other hand, is all about who’s going to operate the company in a way that makes the shares worth having. It means preparing people to do the work that needs doing so that the company continues to be viable. Ask yourself:
- Has the business changed in ways that demand new skills?
- Are retirements looming in the next five years?
- Can you fill key roles without over-promoting and risking the “Peter Principle”?
- Do you have the right people in place now, or will you be forced into costly last-minute hires?
If you haven’t thought about management succession, you may be planning, but only partially.
Reason #5: You’ve developed a successor, but not the organization. True sustainability comes from systems, not from individuals. Yet when asked about succession, many leaders point to a single person: “Jamie. She’s been here 20 years and knows everything I do.” But what if Jamie decides she doesn’t want the top job? Or a competitor lures her away? Or life throws the unthinkable curveball?
Choosing a successor isn’t the same as succession planning. The real work is developing the organization – its systems, processes, and leadership capacity – so that the business can thrive no matter who’s at the top.
Getting serious about succession means facing realities that are easy to avoid. The urgent will always crowd out the important. The conversations will rarely feel comfortable. The future may stir dread but not urgency. And even when you’ve thought about your exit or identified a successor, without management depth and organizational systems, you’re only halfway there.
Succession planning isn’t just about naming names or waiting for the “right time.” It’s about building resilience so your business can thrive beyond you. The question isn’t whether succession matters – it’s whether you’re willing to start now.
For families in business, success is not just measured in fiscal years, but over generations. Yet often, leaders are so focused on the day-to-day that they aren’t able to step back and focus on the issues that impact long-term sustainability. We help leadership teams assess where they are now, where they’re trying to go and how they’re going to get there. Our expertise in the areas of organizational strategy, structure, process and performance is a unique feature of our work, and integral to our transition management approach.
Most leaders accept that at some time in the future, their time at the helm will end and the business will be given into the care of the next leader. However, just thinking about the transition can be daunting and overwhelming for the senior leader. If that weren’t enough, most owners experience their own succession just once. Tandem Partners provides the experience and professional guidance needed to move through the strategic, operational and interpersonal issues that are all a part of transition.