The significance of succession planning and leadership development in an organization cannot be overlooked. While the traditional Cardinal anointing of a new Pope Clement IV took about three years in the thirteenth century, it only took less than a week to settle on the new successor Benedict XVI. In the corporate world, succession planning and leadership management roles have primarily been left up to company CEOs and Human Resource Departments. Besides, the subjects have been given little attention and perceived as little threat.

Failure to prioritize succession planning and leadership development in an organization by the board and senior executives results in retaining inexperienced employees with outdated skills. Organizations without clear succession planning and leadership development structures suffer from extreme vulnerability in coping with the inevitable organizational upheavals, especially when acquiring an intergraded and acquired company with a unique operating style and culture. Ultimately, business corporations need to have a pool of the right people performing the right roles to ensure the success of the company; hence needs to remain a prime focus of the top executives. However, failure by the corporate CEOs, senior management, and boards to focus on building talented successors can result in wrong decisions.

Companies have established that including succession planning and leadership development on the board’s agenda is critical as it ensures that the items get on the docket. When managers and top executives are engaged through succession planning and leadership development, a company benefits from aligning its business process with its strategic goals and priorities while building clear and attractive identities. However, many people consider succession taboo, claiming that planning your exit is like scheduling your downfall. It evoked not only fears but also long-hidden emotions. In a survey with 20 CEOs of large corporations, all the executives affirmed that having the right talent in the right roles is important for the company’s success.