Environmental conservation.
Renewable energy.
Carbon footprints.
Green technologies.
These are the things that often leap to mind when we hear the word “sustainability.”
But this year’s theme for Women's History Month, Leading the Change: Women Shaping a Sustainable Future invites us to expand our understanding of what it means to build leadership that’s sustainable, including:
Succession may not feel as high-urgency as some of the other transformations your organization’s already looking at, but if it’s not on your list of priorities, it could become a liability.
It’s not that succession planning is being wholly ignored. According to past Deloitte research, 86% of leaders said succession planning was urgent and important. The issue is that the same report found only 14% believed their organizations were doing it well.
No matter how big the gap between recognition and execution is today, it’s costing organizations dearly. Within the first 18 months, 40% to 50% of new leaders fail (McKinsey & Company), and the cost of replacing a highly skilled employee can exceed 200% of their annual salary (SHRM).
The traditional approach to succession planning - identifying a single "heir apparent" and keeping succession plans locked in HR filing cabinets - creates multiple points of failure, perpetuates homogenized perspectives that can block innovation, and leaves organizations vulnerable when change inevitably comes.
The best leaders today are rewriting this script by building sustainable leadership ecosystems where leadership capability is distributed and diverse, developed continuously, deeply embedded in how the organization operates, and proactively addresses the needs of both existing and aspiring leaders, including women and underrepresented talent.
We’ve seen the challenges that come with a lack of succession planning first-hand. A leading consumer banking institution came to us after evolving from a single-product team into an integrated, full-suite organization. They had quickly expanded to 180+ People Leaders, who were often operating independently.
This made it challenging to develop emerging leaders or ensure smooth transitions. If senior leaders left, there was no guarantee their replacements would maintain standards or embody organizational values. And unity among those working with and for those leaders was stretched.
Rather than simply documenting expectations to hand down to the next person, LOCAL helped them build a more sustainable leadership development process that included:
Now, when new managers, VPs or Execs are promoted — of any gender — they're not starting from scratch. They're stepping into a well-defined leadership culture with clear expectations, peer support, and ongoing development opportunities.
This is sustainable succession planning in action: building leadership capability as an organizational competency, not an individual skillset dependent on specific people. Given that 70% of a team's engagement is influenced by their manager (Gallup), our client’s investment in systematizing leadership excellence has created a foundation for continuous optimal performance across every transition.
Most organizations have succession plans. What they lack is the organizational culture, leadership alignment, and employee buy-in to execute those plans effectively when the moment comes.
Successful succession planning requires ensuring the entire organization understands the vision well enough that leaders at all levels can carry it forward. When employees see clear development pathways and understand how they contribute to strategic goals, they stay engaged, build capabilities, and naturally step in to fill the pipeline with their diverse, committed, and experienced talent.
It’s a mistake to wait until “things are more stable” to revisit new succession plans, however. Because it's most critical to have things already in place during a crisis. For example, a new enterprise resource planning system for a major health care provider client of ours empowered them to move forward without missing a step, with energy available to identify, develop, and promote healthcare leaders even while fighting COVID-19.
Shaping a future of this kind requires intentional systems thinking for leadership continuity, cultural coherence, and organizational resilience.
Instead of: Individual heroic leadership
Build: Distributed leadership capability that includes diversity at every level
Instead of: Succession as replacement
Build: Succession as ecosystem designed with intention
Instead of: Top-down change mandates
Build: Culturally embedded transformation that addresses barriers
Instead of: Leadership development as separate from business strategy
Build: Leadership capability as competitive advantage
Instead of: Assuming the pipeline will naturally diversify
Build: Deliberate sponsorship, mentorship, and development programs that support the advancement of women and others less represented
Building systems that support both people and organizational performance across generations of leadership beyond the present moment ensures everyone has an equal opportunity to lead your organization forward.
As you reflect on your organization's approach to leadership succession, we recommend considering questions in these categories.
McKinsey has consistently reported on the business case for diverse leadership, and their most recent report is no exception: “There have been far-reaching changes in the business environment over the past few years, yet, companies with diverse leadership teams continue to be associated with higher financial returns.”
To that end:
At LOCAL, we believe that fostering systems that support both people and organizational success across every transition and transformation your organization will face is the sustainable path.
Our Change Marketing™ approach has helped organizations from financial services to healthcare to major retail brands build change that sticks. We've aligned over 10,000 employees across 140 countries, developed 180+ people leaders to cohesive excellence, and achieved 90% adoption of critical systems during a global pandemic.
Ready to build a more sustainable, inclusive approach to leadership succession?
