THE CASE: Leadership Vacuum
Priya's VP of Engineering quit suddenly. No successor ready. Scrambled to hire externally. Wrong fit. 6 months of chaos. Teams lost direction. Key projects stalled. Revenue impact: ₹2Cr.
65% lack succession plans (Deloitte). When key leaders leave, companies scramble. Internal successors perform 20% better than external hires (HBR). Average executive search: 4-6 months.
The Evidence
65% lack succession plans (Deloitte)
Internal successors: 20% better (HBR)
Executive search: 4-6 months average
The Succession Readiness Framework
For Every Critical Role, Document:
- Successor 1: Ready now
- Successor 2: Ready in 1-2 years
- Development plan: What gaps need closing?
The Bus Test
If this person got "hit by a bus" tomorrow, who steps in? Review quarterly.
The Experiment
For your 5 most critical roles, identify successors by end of month. Document development plans for each.
Sources
- Deloitte. Succession Planning Crisis. 2023.
- HBR. Internal vs External Leadership Hires. 2022.
Key Takeaways
- 65% of organizations have no succession plan
- Internal successors outperform external hires by 20%
- Apply "The Bus Test" to every critical role