CEO succession: the 3-horizon plan every board (and founder) needs
Most boards have no CEO succession plan and don't realise it until they need one. Here's the 3-horizon model — emergency, planned, long-term — and the work to…
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- Three horizons: emergency (today), planned (12-24 months), long-term (3-5 years).
- Emergency plan = one named interim leader, board-aware, today.
- Planned succession = profile, internal candidates, external benchmark, ready in 12-24 months.
- Long-term = active development of 2-3 internal candidates against the profile.
CEO transitions are the highest-stakes people decision a company makes. The board's main lever is preparation — long before the trigger.
Why most boards fail at this
- Founder-CEOs treat succession as personal, not corporate.
- Discussing succession openly is mistaken for a vote of no confidence.
- Internal candidates are over-promoted prematurely 'to be ready', then leave.
- External search happens under pressure and produces avoidable mismatches.
Horizon 1: emergency
- One named interim CEO (usually CFO, COO, or board chair).
- Communication plan: internal, external, customer, regulator (24h, 72h, 7d).
- Legal continuity: signing authority, board powers, key contracts.
- Updated annually; tested with a tabletop exercise.
Horizon 2: planned
- 1ProfileWhat does the next CEO need? Re-draft annually — strategy and stage matter.
- 2Internal slate2-3 candidates with development plans; reviewed annually by board.
- 3External benchmarkEven with strong internals, benchmark to know the gap.
- 4Pre-decision workBoard interviews internals; chair maintains relationship with 3-5 external 'know thy market'.
Horizon 3: long-term development
- Identify 2-3 'next-CEO potential' candidates 3-5 years out.
- Sequence experiences: P&L scope, international, board exposure, M&A.
- Executive coaching + 360s annually.
- Honest feedback: tell candidates they're on the list, with caveats.
Naming the gap honestly is the highest service a current CEO can do. Pretending no one is ready is usually a sign the CEO didn't develop anyone.
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