Succession Planning Insights

CEO SUCCESSION PLANNING IN ACTION AT MONDELEZ Mondelēz International just promoted CFO Luca Zaramella to COO while launching an external search for his replacement. Officially, it's about enhancing execution and letting CEO Dirk Van de Put focus on strategy. But let's be honest. This is what succession planning looks like when you're building the pipeline in real time. Unprecedented yet predictable (& predicted). The sector is under pressure. Consumers are trading down, volume growth is elusive, and Mondelez is battling headwinds heading into Q4 earnings. What makes this interesting is the signal it sends. The CFO-to-COO move is increasingly becoming the fast track to the corner office. Finance leaders are being groomed for operational command because boards have realized that spreadsheet fluency alone doesn't prepare you to run a business. The real question isn't whether one person can juggle both roles. It's why the bench wasn't deeper to begin with. The companies that win the next decade won't just have better brands or supply chains. They'll have succession pipelines that don't require emergency surgery. Exciting times #FMCG #Leadership #Succession #CPG

Leadership transition at 100-year-old Caterpillar signals major succession planning win amid economic uncertainty AI ALPI analyzed Caterpillar Inc.'s CEO transition strategy this week—a masterclass in internal talent development that HR leaders should study. After 45 years with the company, Jim Umpleby is passing the torch to 28-year veteran Joe Creed in a seamless handover. Key takeaways for HR and talent leaders: → Internal succession pipeline pays off: Caterpillar's investment in long-term talent development created multiple qualified internal candidates ↳ Companies with robust succession programs see 20% higher workforce retention and 18% better financial performance during leadership transitions → Timing is everything: The transition coincides with Caterpillar's 100-year anniversary, creating a natural inflection point for change ↳ Organizations that align leadership transitions with meaningful company milestones see 32% stronger employee alignment with new direction → Continuity amid disruption: With economic headwinds from tariffs and projected sales declines, maintaining leadership continuity becomes even more critical ↳ Companies that promote from within during market turbulence recover 2.7x faster than those bringing in external leadership Caterpillar pioneered one of the first formal executive succession planning programs in the 1960s, establishing a model that identified high-potential leaders a decade before their potential advancement to senior roles—revolutionary for its time. 🔥 Want more breakdowns like this? Follow along for insights on: → Getting started with AI in HR teams → Scaling AI adoption across HR functions → Building AI competency in HR departments → Taking HR AI platforms to enterprise market → Developing HR AI products that solve real problems #SuccessionPlanning #LeadershipTransition #Caterpillar100 #CEOTransition #TalentPipeline #FutureOfHR #HRTech

Boards are suddenly waking up to succession… and often too late. Are we keeping pace with CEO transitions? Shoutout to my colleague Raju Narisetti for surfacing this fascinating FT piece. One stat that really caught my attention: more than half of FTSE 100 CEO appointments in the past year were external, compared with just 27% in the S&P 500. This is often described as a failure of succession planning, but I see something deeper at play: tempo. With UK CEOs averaging only five years in role (versus nearly eight in the US), boards have less time to identify, test, and develop the next generation of leaders. That creates a cycle: shorter tenures leave less time for preparation, which drives more external hires, which in turn creates less stability, which reinforces shorter tenures again. A conversation I had this week with a European nom/gov committee brought this home. They suddenly wanted an emergency succession plan because they realized they had none. It was striking that they had never discussed pipeline development with their CEO during the tenure—they worried it might seem rude. In truth, these are the conversations boards and CEOs should be having all the time. This is one of the central themes of much of my client work and our upcoming book A CEO For All Seasons, written with Scott Keller, Kurt Strovink, and Vikram Malhotra. We argue that the leaders who thrive are those who prepare for transitions early and intentionally, building resilience into the organization long before the moment of handover. I’d love to hear from boards and CEOs: how are you making succession an ongoing conversation rather than an emergency plan? https://lnkd.in/gEM4Zwhp

CEO succession planning. Everyone's talking about it, well, they are about Astronomer CEO Andy Byron's resignation scandal, but are enough boards doing it well? With all the chaos of the last few years, including cost-of-living pressures, inflation, global instability, and leadership scandals, the turnover of Chief Executive Officers is surging. Closer to home, CEO turnover in Australia has now hit record highs. So far in 2025, it has reached 17.8% across the ASX 200. That’s almost double the global average. And the average tenure of a CEO in Australia? Just 4.4 years, roughly half that of their overseas counterparts. Yet, many organisations still have no clear plan for what happens next. Some quick stats: -- Only 46% of boards are grooming a specific successor. -- Over a third haven’t identified anyone who could step in if needed. -- Women hold just 6% of CEO roles on the ASX 200. -- Internal promotions made up 73% of CEO appointments in 2024. Last week, we revisited one of our earlier CEO placements at Luminary, a board that was gutsy enough to admit it hadn’t built strong succession options internally. They made a bold choice: appointing a relatively untested senior executive to lead serious change as a first-time chief executive. Four years on? That CEO has built a brilliant executive team, delivered a successful enterprise-level (cloud) technology update, major financial results, and elevated both customer and employee satisfaction to new heights. Why did it work? Because the board acted early and with intent. Too many are leaving it too late. If the number of succession conversations we’ve been having lately is anything to go by, C-level movement is only going to accelerate over the next 12 months. We are predicting further change here in Queensland. Our data indicates the following reasons: (1) Short-term performance pressure: CEOs and Boards alike report increasing demands for immediate results, contributing to a culture of short-termism and more frequent leadership changes. (2) Market volatility and uncertainty: Economic swings, inflation fears, integrity issues, and shifting regulatory environments have led organisations to reexamine leadership and, in many cases, accelerate CEO transitions. (3) Succession planning trends: The prevalence of internal CEO appointments reached an all-time high in 2024, setting the stage for continued active succession and transitions within 2025. The dominance of internal appointments suggests a greater focus on continuity and cultural fit. (4) Market and sector disruption: Technology and digital transformation have increased the demand for Queensland leaders with new skillsets, adding to the pace of CEO turnover. Given a climate of record turnover, Luminary is here to help you stay ahead, arming you with the strategy, insight, and support needed to secure a great leader. One final question for all boards: If your CEO were to depart tomorrow, would you be ready?

𝐈𝐬 𝐲𝐨𝐮𝐫 𝐛𝐨𝐚𝐫𝐝 𝐡𝐢𝐫𝐢𝐧𝐠 𝐚 𝐂𝐄𝐎 𝐟𝐨𝐫 𝐚 𝐰𝐨𝐫𝐥𝐝 𝐭𝐡𝐚𝐭 𝐧𝐨 𝐥𝐨𝐧𝐠𝐞𝐫 𝐞𝐱𝐢𝐬𝐭𝐬? In volatile times, the instinct is to play it safe. But a brilliant new Harvard Business Review article by my Spencer Stuart colleagues reveals this "safety" is a dangerous illusion. Boards are doubling down on defensive moves: ❌ 𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧 𝐏𝐚𝐫𝐚𝐥𝐲𝐬𝐢𝐬: Delaying CEO transitions, thinking they can wait out the storm. (Spoiler: The storm is the new climate). ❌ 𝐇𝐞𝐝𝐠𝐢𝐧𝐠 𝐁𝐞𝐭𝐬: Retaining outgoing CEOs as executive chairs, sometimes undermining the new leader. ❌ 𝐓𝐡𝐞 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞 𝐓𝐫𝐚𝐩: Prioritizing "boomerang CEOs" with old playbooks for new, unprecedented challenges. I was so inspired by their analysis that I had to build on it. In my latest piece, I argue why and how the dawn of AI makes their conclusions existential. AI doesn't just change the game; it vaporizes the rulebook. The static, experience-based playbook is becoming obsolete. The new core competencies are: 💡𝐄𝐱𝐞𝐜𝐮𝐭𝐢𝐯𝐞 𝐢𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐜𝐞: The ability to make decisions in real time, process new information, and course-correct when conditions change. It shows up in how leaders ask questions, challenge assumptions—including their own—synthesize competing perspectives, and bring others along 🧠 𝐂𝐨𝐠𝐧𝐢𝐭𝐢𝐯𝐞 𝐀𝐠𝐢𝐥𝐢𝐭𝐲: The ability to lead when the path is probabilistic, not deterministic. To synthesize vast, conflicting information and make sound judgments under deep uncertainty. ❤️ 𝐅𝐨𝐥𝐥𝐨𝐰𝐞𝐫𝐬𝐡𝐢𝐩: The capacity to build deep psychological safety and inspire a human-centric vision for an AI-augmented future. This is not a soft skill; it's the critical enabler of tech adoption. The choice for every board is now stark: Hire a leader who mastered the playbook for a vanishing world, or one with the courage to write the playbook for the world being born. Read the full article here below👇 𝐖𝐡𝐚𝐭 𝐝𝐨 𝐲𝐨𝐮 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐢𝐬 𝐭𝐡𝐞 𝐬𝐢𝐧𝐠𝐥𝐞 𝐦𝐨𝐬𝐭 𝐜𝐫𝐢𝐭𝐢𝐜𝐚𝐥 𝐭𝐫𝐚𝐢𝐭 𝐟𝐨𝐫 𝐚 𝐂𝐄𝐎 𝐢𝐧 𝐭𝐡𝐞 𝐀𝐈 𝐞𝐫𝐚? #Leadership #CEO #AI #FutureOfWork #SuccessionPlanning #CorporateGovernance #HBR #ExecutiveSearch #CognitiveAgility

🚨 CEO Succession: The #1 Governance Blind Spot 🚨 Despite being one of the board’s most sensitive and high-stakes responsibilities, too many boards still stumble when it comes to CEO succession. This is one of the key findings of a recent joint study of the Center for Executive Succession and HR Policy Association (HRPA) A recent study highlights 10 of the biggest pitfalls — and the results are sobering: 1. 41% of CEOs hesitate to engage in succession planning — stalling momentum, morale, and candidate development 2. Most boards only begin planning 12–18 months before a transition — far too late to prepare a CEO-ready successor 3. Only 58% of boards align their CEO profile with future strategy — meaning the wrong leader is chosen for the company’s next chapter 4. Succession discussions are often too shallow — more ritual than rigorous debate 5. Executive transitions are poorly managed — risking reputation, investor confidence, and leadership stability 💡 The research makes one point crystal clear: 👉🏼  A trusted CHRO is often more critical to the process than the CEO. When empowered & trusted, CHROs: ✔️ Reframe succession as strategy, not an exit plan ✔️ Provide objective, future-focused talent insights ✔️ Ensure continuity and minimize disruption during leadership transitions The paradox? The CHRO is essential to CEO succession — but only if they are truly trusted by the board, the CEO, & the executive team ⚡ My humble take: CEO succession isn’t just about replacing a leader. It’s about safeguarding the company’s future, honoring legacies, and protecting stakeholder confidence. Boards that treat it as a compliance exercise rather than a strategic imperative risk being caught unprepared — with consequences that echo far beyond the C-suite But don't take my word for it. Take it from a previous client of mine. The Co-CEO of a beverage company stepped into a family CEO succession that was table stakes for the business. She described our working together as follows: “I stepped into my first Co-CEO role about a year ago and selected Navid as my executive transition coach. Whilst this was a big new role for me, we made a lot of progress. As a result of our year-long engagement, I can wholeheartedly say that I got many insights and value for the time that we spent together. Navid’s thoughtful approach meant that at times, we deviated from the Double Diamond Framework of Executive Transitions to spend time on a more urgent or emergent topic. Navid’s coaching was always helpful, and I appreciate the insight and sustainable behaviour shifts that were created during our time together.” #MasteringExecutiveTransitions #Leadership #CHRO #Governance #CEO #SuccessionPlanning #BoardEffectiveness

The first thing that hit me when I joined this mid-sized engineering company as a CHRO was the lack of structured #SuccessionPlanning. At an organizational growth rate as steep as it was, the importance of a robust #SuccessionStrategy to keep our growth momentum on track and ensure continuity in leadership was very clear. To this end, I initiated my work with a critical review of our current leadership structure, #TalentPools, and future organizational requirements. I met senior leaders and key #stakeholders to identify critical roles for which #SuccessionPlans should be developed. This review identified several gaps and potential risks. Some of the huge barriers were #ResistanceToChange. To many senior leaders, succession planning was an unnecessary complication rather than a strategic necessity. Secondly, our #TalentManagementSystem lacked the necessary analytics to effectively predict and plan for the #leadership needs of the future. The next challenge in the process was to make the process inclusive and unbiased. We did not only need a system that would identify the #FutureLeaders, but one that would also be fair and transparent in the development of their capacity. Knowing these challenges, we established a comprehensive #SuccessionPlanningFramework that includes both quantitative and qualitative tools. #TalentAssessmentTools: We used #PsychometricAssessments, performance reviews, and 360-degree feedback to assess the current leader in finding a successor. Tools like #HoganAssessments and #GallupStrengthsFinder helped us truly understand individual capabilities and suitability for future roles. #LeadershipDevelopmentPrograms: Based on assessment results, customized development programs for potential successors have been designed. This includes #mentorship, #coaching, and focused training sessions to get over the shortcomings in competencies and groom them for the leadership role. #SuccessionPlanningSoftware: We implemented succession planning software in the HR system— #SAPSuccessFactors and #CornerstoneOnDemand. These tools enabled us to track potential successors, review development progress, and evaluate succession readiness. It runs scenario planning and #SuccessionModeling to simulate organizational changes and what would be affected in such scenarios. Our succession planning strategy, therefore, bore its first benefit: a strong #LeadershipPipeline ready for the challenges ahead and improved employee engagement through clear career pathways. It also enhanced the organizational agility required for smoother transitions. Our organization is more resilient, with a strategic approach toward developing leaders that places us in good stead for the future. #CHRODiaries #SuccessionPlanning #LeadershipPipeline #HighPotentialEmployees #PerformanceAssessment #360DegreeFeedback #ChangeManagement #CareerProgression #EmployeeEngagement #StakeholderBuyIn #OrganizationalGrowth

Few boards have a well-defined process for Chair succession. Even in high-performing boards, 𝐥𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐨𝐟𝐭𝐞𝐧 𝐡𝐚𝐩𝐩𝐞𝐧 𝐫𝐞𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲, prompted by a resignation, retirement or term limit rather than as part of a deliberate governance process. 𝐘𝐞𝐭, 𝐣𝐮𝐬𝐭 𝐥𝐢𝐤𝐞 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 𝐨𝐫 𝐫𝐢𝐬𝐤 𝐨𝐯𝐞𝐫𝐬𝐢𝐠𝐡𝐭, 𝐬𝐮𝐜𝐜𝐞𝐬𝐬𝐢𝐨𝐧 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 𝐢𝐬 𝐚 𝐟𝐢𝐝𝐮𝐜𝐢𝐚𝐫𝐲 𝐫𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲. It’s what ensures continuity and confidence in leadership when change inevitably comes. Having recently gone through a Chair transition myself, I was reminded of how important it is to plan the passing of the baton. 𝐌𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐬𝐢𝐦𝐩𝐥𝐲 𝐟𝐢𝐥𝐥𝐢𝐧𝐠 𝐚𝐧 𝐞𝐦𝐩𝐭𝐲 𝐬𝐞𝐚𝐭, 𝐥𝐞𝐚𝐝𝐞𝐫𝐬𝐡𝐢𝐩 𝐫𝐞𝐧𝐞𝐰𝐚𝐥 𝐩𝐫𝐞𝐬𝐞𝐫𝐯𝐞𝐬 𝐭𝐡𝐞 𝐫𝐡𝐲𝐭𝐡𝐦 𝐚𝐧𝐝 𝐩𝐮𝐫𝐩𝐨𝐬𝐞 𝐭𝐡𝐚𝐭 𝐠𝐢𝐯𝐞 𝐚 𝐛𝐨𝐚𝐫𝐝 𝐢𝐭𝐬 𝐬𝐭𝐫𝐞𝐧𝐠𝐭𝐡. Here’s a framework I’ve found helpful for thinking about board leadership transitions more deliberately: 1. 𝐃𝐞𝐟𝐢𝐧𝐞 𝐭𝐡𝐞 𝐫𝐨𝐥𝐞 𝐞𝐚𝐫𝐥𝐲. If the conversation starts when a vacancy appears, it’s already too late. Defining the role and ideal profile early helps the board align around expectations. What kind of leader does the organization need at this stage of its journey? What balance of independence, influence, and institutional memory will strengthen oversight? 2. 𝐅𝐨𝐫𝐦𝐚𝐥𝐢𝐳𝐞 𝐭𝐡𝐞 𝐩𝐫𝐨𝐜𝐞𝐬𝐬. Good governance requires clarity. Whose responsibility is it? The Nomination Committee, a dedicated Succession Committee or the Chair? How should potential candidates be exposed to the board’s dynamics? Formalizing these steps ensures consistency when the moment arrives. 3. 𝐈𝐝𝐞𝐧𝐭𝐢𝐟𝐲 𝐰𝐢𝐭𝐡 𝐩𝐮𝐫𝐩𝐨𝐬𝐞. Boards often default to seniority or rotation, but longevity doesn’t always mean fit. The decision should reflect the company’s current needs and direction, not tenure alone. Benchmarking candidates against the defined role brings objectivity and alignment. 4. 𝐄𝐧𝐠𝐚𝐠𝐞 𝐭𝐡𝐞 𝐂𝐄𝐎. The Chair–CEO relationship is among the most pivotal in governance. Involving the CEO early helps ensure alignment and chemistry, fostering a productive partnership from day one. 5. 𝐏𝐥𝐚𝐧 𝐭𝐡𝐞 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧. Even the most seasoned director faces a learning curve when stepping into the Chair role. Structured onboarding, through shadowing, joint meetings and mentorship from the outgoing Chair, helps transfer both knowledge and culture. Ultimately, good governance is as much about oversight as it is about renewal. So it’s worth asking: Do the boards you are part of plan for leadership succession as deliberately as they plan for strategy and performance?

I recently coached a new CEO whose transition into the new role is incredibly challenging. Why? His predecessor was a Marathon CEO: Someone who led for decades, deeply embedding their ways into the organization. Their decisions shaped the culture. Their leadership style became the norm. Their influence lingered in every meeting, every habit, every unspoken rule. It’s really tough: 🌘 The company wasn’t just adjusting to a new leader - it was grieving the old one. 🌘 Employees clung to ‘the way things have always been done.’ 🌘 Decisions felt pre-programmed, leaving even the most capable new CEO battling a ghost. Compounding the challenge: a lack of succession planning made it harder. But through coaching, we didn’t just adapt; we rewrote the script: ➤ He harnessed his unique strengths to break free from the past, not just stepping out of the shadow but gradually transforming it. ➤ We sharpened a leadership style that didn’t just rival the old norm - it redefined it, igniting fresh momentum and ownership. This makes me realize a critical question: Organizations often underestimate succession planning, especially when replacing a long-standing CEO. The longer the tenure, the more vital it is to invest in: 1️⃣. Early & Strategic Succession Planning ↳ Had it started earlier, my client might not have felt like he was “racing against a shadow CEO” (his own words). ↳ Thankfully, through coaching, he solidified his style and rose to the challenge. 2️⃣. Clear Internal Communication ↳ Employees need reassurance and alignment during leadership shifts. ↳ A unified message could’ve steadied the team as they adjusted. 3️⃣. Support for the New CEO ↳ Transitions demand more than a handover - structured onboarding and cultural integration are key. ↳ For my client, a stronger support system might’ve eased the weight of such a legacy. A Marathon CEO’s influence doesn’t end when they step down - it lingers. The real test of their tenure isn’t longevity; it’s whether the organization thrives after they leave. So 2 Key Takeaways: 1) Organizations must prioritize early effective succession planning to replace a Marathon CEO. 2) A compelling leader can build their own legacy - with the right support. Catherine Catherine Li-Yunxia (Transforming leaders, Moving the world)