5 tips to ensure a successful leadership transition for your organization

While the world watched and waited to see if President Joe Biden would drop his reelection bid last month, I imagined his internal struggle and thought, I totally get it. I may not be a global leader, but I empathize with the challenges of succession and succession planning.

As a cofounder and, until recently, CEO deeply passionate about the executive coaching company I created seven years ago, I’ve grappled with some intense soul-searching about passing the torch. Weighing personal ambition against the health of the organization when I stepped away, had I greased the leadership pipeline for a smooth transition that wouldn’t erode my reputation or company?

Whether talking about American politics or corporate America, there are plenty of ways to fumble the torch-passing, including indecision, waiting too long, and not planning for it.

In the business world, where there’s been a surge in CEO turnovers, succession planning is still spotty. Planned CEO successions accounted for just 23% of all outgoing CEOs in Q2 2024, according to the latest quarterly turnover index from leadership advisory firm Russell Reynolds Associates. This is striking considering that nearly 80% of incoming CEOs were internal promotions.

The cost of no plan

What’s at stake? There are cultural costs, with employees and clients becoming worried about the company’s stability. There’s the “time suck” of selecting and onboarding a successor. And there are significant financial costs. According to a Harvard Business Review analysis, failure to nurture leadership pipelines and succession practices leads to excessive executive turnover and destroys value–close to $1 trillion a year among the S&P 1500.You’d think that as the founder of a coaching platform focused on helping leaders grow as individuals, in teams, and in life, I would have had a succession plan from the start. However, it came to me only two years ago, as I was interviewing a candidate for COO. It wasn’t until late in the process that I realized I was actually interviewing my replacement, and I needed to let her know.Once she accepted the role, we devised our plan to ease her in. I wouldn’t train or teach her—she already had the ability, skill set, and drive. My job was to help her hone those skills, to coach her into a new role . . . to coach myself out of a job.Whether you are a CEO or a manager helping your team grow into their next role, you need a succession plan. Here are my tips for coaching someone—even yourself—into a new role.

Be painfully self-aware and embrace your weaknesses

In corporate America, we’re taught to showcase, even grandstand, our greatest strengths. When presenting to the C-suite or raising capital, we believe leaders must display neither fear nor flaws. Fearing our weaknesses actually creates vulnerability, stifles long-term growth, and limits success. As leaders, we need to be so painfully aware of our weaknesses that we can compensate by hiring people with complementary counter-strengths. If ego gets in the way, we need to remember our goal: to prepare for the future growth of the company, not our own personal ambition.

Share the plan up front with your intended successor

When you find someone you trust to take on the new role, it’s important to be direct and explain your intent. When I hired my successor, it was the first time I had expressed out loud that I may not be the right person to take our company into the future, and I wanted to hire strategically for the good of the company. If you’ve already hired your successor, or you come to see that someone on your team may be the best suited for that role, bring them into your plan. It may feel uncomfortable opening up—especially if, like me, you haven’t shared these vulnerable thoughts with anyone—but it’s critical to ensure your goals are aligned.

Work together; Do trial runs

Rather than being forced into a rapid transition, give yourself time to work with your successor through the process. This is where the coaching happens. Both individuals learn from each other and build a foundation for the handover. For more than a year, my successor began taking on more decision-making and directing the company, while I observed and focused on other aspects of the business. And when she came to me with a different approach or idea, I learned to step back and allow her to take the lead. I gave her increasing autonomy and offered guidance as needed.

Talk about it—a lot

Great transitions start with open, honest lines of communication. Ongoing conversation throughout the process enables you to achieve a transition with fewer obstacles, fewer misunderstandings, and more clarity. You must be willing to ask really difficult questions up front and genuinely listen, even when doing so is uncomfortable.

Announce your plans but be coordinated about it

Nobody likes a surprise. I only recently informed the board about our transition plan. I was nervous they’d feel I was abandoning the company. Instead, they clearly understood and appreciated the healthy process we’d put into action. They were confident in my successor’s ability because they knew her, worked with her, and trusted her. And they were confident I was doing what was best for the company’s future. After receiving board approval, the CEO and successor should work together to announce the news to the internal team.A transition isn’t a one-time event. It’s an ongoing process, with twists and turns along the way. These same steps can be applied to any role. After all, the best way to get a promotion is to bring in others to do your job so that you can be more available to work above your role. When you think about it that way, we should always be coaching our way out of our jobs.