THE HUMAN SIDE OF CEO SUCCEsSION
INTRODUCTION
CEO succession is one of the most pivotal moments in the life of an organisation. It’s not just a changing of the guard; it’s a shift in culture, tone, relationships and identity. And yet, it’s often treated as a mechanical process to be ‘managed’: something to plan, document and tick off. Neatly scoped and logically executed.
Succession is never just procedural. It’s deeply human, shaped by power, legacy, ego, bias and politics. And that’s where it gets interesting – and at times, let’s be honest, messy! Despite the enormous cost of getting it wrong – some estimates put the value at up to $1 billion – Spencer Stuart found that nearly 40% of boards still feel unprepared. Many continue to rely on informal impressions over structured, future-focused planning and assessment.
Part of the challenge is that despite its importance, CEO succession is still a relatively rare event (PwC research suggests the average CEO tenure is 6.9 years), meaning even the most seasoned board chairs may only experience it once or twice in their career. Exposure to best practices is therefore often limited, and few directors get the chance to build real muscle and skill in how to do it well.
Having specialised for the last decade in the field of succession and worked at close quarters with multiple boards around the world, I see four challenges most often – and offer a few thoughts on how to handle them better.
A SUBTLE TUG OF WAR
One of the trickiest dynamics in succession is the tacit power struggle between the outgoing CEO and the board chair over who owns the process.
The CEO often feels deeply invested. They’ve nurtured talent, shaped the culture and often have a preferred successor in mind. The chair, meanwhile, is accountable for making sure the process is robust, fair and fit for the future – not just an extension of the past. Add in a dose of affinity bias, and suddenly the field narrows to someone who looks and sounds very familiar.
This isn’t about bad intent; it’s simply human. But without early clarity, things can quickly become tense.
What helps:
Be explicit early on about who’s doing what. Spell out the roles of the CEO, Chair, Chief People Officer, Company Secretary, Nominations Committee and other Non-Executive Directors.
Align upfront on a future-focused CEO success profile. This keeps the process anchored in what the organisation needs, not who people feel most comfortable with.
Position the CEO’s view as one input, not the input. Balance it with an independent leadership assessment and varied board perspectives.
UNDER LARGE TREES, LITTLE GROWS
Years ago, my father, who was a keen gardener with a knack for saying the right thing, told me, “Under large trees, little grows.” I find myself referencing this phrase a lot with my clients.
It often comes up when the CEO is a larger-than-life character – a founder, perhaps, or someone who’s been in the role for many years. They’re trusted, visible and admired. They’ve become so central to the organisation’s story that it’s hard to imagine anyone else leading.
This can add specific difficulties to the succession approach. Boards anchor on the incumbent’s style. Potential successors worry they won’t measure up. Some try to imitate. Others quietly check out, feeling unable to compete.
What helps:
Get the board to look outward. What will the future demand of the business and the next CEO? Start there, not with the current leader.
Give successors a chance to be seen on their own terms, making it clear that you value differences of perspective and style. Board dinners, special projects and enterprise-wide work let you see internal candidates in their own right.
Challenge the incumbent CEO to create more space for others to grow. Not just through coaching, but by stepping back and letting others lead visibly.
POWER GAMES
When succession conversations start, so does a quiet dance among internal candidates. Sharp elbows and competitive behaviour almost inevitably appear. Leaders start signalling, jostling and forming alliances. Sometimes it’s subtle. Sometimes less so.
This is natural; ambition shows up in all sorts of ways. But left unchecked, it can create tension in the executive team that cascades unhealthily through the organisation, forcing people into camps. This can leave the CEO or the board feeling as though they’re refereeing a contest.
What helps:
Acknowledge the tension. It’s normal. Make clear to internal candidates what behaviour is acceptable and what’s not.
Set clear expectations with internal candidates: what the process will look like, how long it’ll take, who will make the decision and what will influence the outcome.
Pay attention to how people show up under pressure. Succession isn’t just a testing process; it’s a test. Not just of capability, but of how someone holds their nerve, treats their peers and leads when the spotlight is intense.
NEGLECTING THE ‘ALSO-RANS’
Inevitably, most of the energy in succession goes to selecting the next CEO. But what happens to the business-critical leaders who don’t get the role? Too often, the CEO’s decision dominates and overruns the process/timeline/milestones, leaving insufficient time to plan for the engagement of the runners-up.
A CFO I coached recently said she had still not fully recovered from the careless way the board managed her unsuccessful bid for CEO. She was not offered feedback and was simply told, “Don’t worry, we’ll give you a pay rise.” This left her feeling bruised, misunderstood and resentful. While she stayed for two more years, her full commitment never returned and the emotional cost to her was great.
These people are some of the most vital leaders in the business who’ve committed time and huge amounts of emotional energy to a process, only to come out disappointed. If they feel overlooked or left dangling, they may disengage – or leave. And that can destabilise the very leadership bench you’ll need to support the new CEO.
What helps:
Stay in close touch. Set up proper debriefs and development conversations, don’t leave people to guess what’s next.
Plan carefully for the communication using insights from leadership assessments to understand their motivation and ensure that development continues after the new CEO is appointed.
Offer meaningful stretch opportunities. That might be a lateral move, a new portfolio or a chance to lead a transformation programme.
PULLING IT TOGETHER: THE ‘CHAIR’ MODEL
Over time, I’ve developed a simple way to guide clients through the various stages of CEO succession. I call it the CHAIR model. It’s not a silver bullet, but it helps keep things anchored, human and future-focused.
C – Cultivate: Don’t start a race too early. Develop a wide bench of executive leadership early to keep your options open. Build breadth, depth and exposure and uplift performance along the way.
H – Horizon: Take the time to define the future context, taking an outside-in view. What will the next CEO need to lead the organisation through? Align the board on what good looks like and what will make the difference between good and great performance in the next chapter.
A – Assess: Rigorously assess candidates over time, in different settings and triangulate data from the CEO, external assessments, board presentations and informal observations. This should not be a one-off and must go beyond typical board engagements.
I – Identify: First, decide how you will decide, ensuring roles are clear across the Chief People Officer, Board, Nominations Committee and other bodies. Make the call with rigour, balancing data and judgment. Plan carefully for the communication with all parties.
R – Reinforce: Back the new CEO. Set the whole team up to succeed through formal transition support, mentoring and coaching. Transitions aren’t solo events. They need the whole team to steady the ground.
FINAL THOUGHTS
Succession is rarely smooth. But when it’s done well, it’s not just a handover, it’s a moment of renewal. A chance to shape what’s next, not just protect what’s been.
If we can hold the process lightly, treat people thoughtfully and stay anchored in the future, we’re far more likely to get it right.
STEVE VAN ZUYLEN
Steve van Zuylen is Founder and Managing Director of Van Zuylen Consulting Ltd. He brings over 25 years of international experience, preparing leaders, executive teams and boards for the future. As a practitioner, he combines his extensive portfolio of client work with hands-on commercial experience, having successfully led consulting businesses through start-ups, scale-ups and acquisitions.
Trusted by leaders globally, he is known for his tireless focus on impact, creativity and ability to navigate complex interpersonal dynamics with a healthy dose of humanity and humour.
