10 Succession Planning Examples to Build Stronger Leaders and Ensure Business Continuity

Succession planning is a must-have for all organizations that look for business continuity and the minimization of disruptions. They are the very tool to prepare your future leaders anything from planned retirement to unexpected departures.

That is exactly why having the right succession planning strategy is key. But what does effective succession planning look like in practice? We will be exploring just that with best practices and top succession planning examples in this post. Not only that but by the end we'll also give our FREE Succession Plan ready to be downloaded! So let's get to it!

Types of Succession Planning

Succession planning can take various forms depending on an organization's size, structure, and long-term goals. Understanding these different types helps leaders choose the most suitable strategy to ensure leadership continuity and business resilience. Below are some common types of succession planning:

• Emergency Succession Planning – Prepares for sudden and unexpected leadership departures due to illness, resignation, or other unforeseen events.
  
• Planned Succession – Focuses on anticipated transitions, such as retirements, allowing time for mentoring and a smooth handover.
  
• Developmental Succession – Identifies and grooms internal talent over time, aligning leadership development with future organizational needs.
  
• Strategic Succession – Tied closely to long-term business strategy, this approach ensures successors are equipped to lead the organization through future challenges and growth.
  
• Targeted or Position-Based Succession – Focuses on filling specific critical roles that are essential to business continuity.

5 Successful Real World Succession Planning Examples

Now that we’ve looked into some common types of succession planning, let’s take a look at some different types of succession planning case studies that you can also pick out.

1. Executive-Level Succession

Executive succession planning focuses on preparing for leadership changes at the highest levels of an organization, such as a CEO transition. This type of planning ensures business continuity and strategic alignment when a top executive steps down, retires, or transitions to a new role. It typically begins by identifying key leadership positions and assessing internal candidates who show high potential. From there, companies invest in targeted development to prepare future leaders for the demands of executive roles.

Key components of executive-level succession planning:

• Identify critical leadership roles – Start by defining which executive positions are essential to long-term success, such as the CEO or COO.
• Assess high-potential talent – Evaluate internal candidates based on performance, leadership potential, and cultural fit.
• Invest in development – Provide future leaders with exposure to strategic projects, cross-functional training, and executive mentoring.
• Build a leadership pipeline – Ensure readiness through continuous development, creating a bench of capable leaders ready to step up when needed.

A well-executed executive succession plan leads to a seamless leadership transition with minimal disruption to the organization.

Example: Microsoft’s CEO Transition

Microsoft has orchestrated several successful CEO transitions, but the shift from Steve Ballmer to Satya Nadella in February 2014 stands out as a defining moment. This internal promotion highlighted Microsoft’s focus on talent cultivation and strategic agility. Nadella, having led key divisions like Cloud & Enterprise, was already deeply familiar with Microsoft’s culture and operations—a readiness that helped ensure a smooth leadership handover.

What Microsoft Achieved?

• According to AP News, Microsoft’s market value grew over 1,000% under Nadella, reaching $3 trillion and becoming the most valuable U.S. company.
• Microsoft transformed into a cloud leader, with Azure gaining a 21% global market share by 2023, as Future Tech Insights records.
• Azure became a core platform for enterprise AI, generating billions and outpacing major competitors.
• Nadella reshaped company culture by removing stack ranking and promoting openness, collaboration, and continuous learning.
• Microsoft aligned leadership and strategy to expand into new areas like AI, GitHub, and LinkedIn with minimal disruption.

2. Critical Role Backup

Succession planning for critical roles ensures business continuity when a key position is heavily relied upon—such as a Head of Risk Management. In these cases, companies focus on identifying capable internal candidates who can step in when needed. Promoting from within reduces hiring costs and ensures institutional knowledge stays in-house. A senior team member, like a seasoned risk analyst, may be selected and prepared through targeted development and mentoring.

Key components of critical role backup planning:

• Identify roles essential to business operations and continuity.
• Evaluate internal team members for readiness and growth potential.
• Select a likely successor based on performance and domain expertise.
• Provide role-specific training and development before the transition.
• Reduce reliance on external hiring and retain institutional knowledge.

By identifying and developing internal successors for critical roles, companies ensure continuity even during unexpected leadership changes. This approach leverages existing talent and reduces the risks associated with external hiring.

Key outcomes of succession planning for critical roles:

• Ensured immediate availability of trained internal candidates ready to step up.
• Reduced reliance on external hiring, cutting associated costs and risks.
• Maintained operational continuity and minimized business disruption.
• Strengthened employee motivation through visible career development paths.
• Supported strategic alignment between leadership transitions and company goals.

Example: General Electric’s Internal Talent Transition

When Jack Welch retired as CEO in 2001, General Electric selected Jeff Immelt as his successor following a careful, internal selection process. This strategic approach minimized disruption, maintained stability, and aligned leadership changes with GE’s long-term business goals.

What General Electric Achieved:

• Smooth leadership transition – Immelt’s appointment ensured continuity after Welch’s long tenure.
• Strategic consistency – Immelt maintained GE’s focus on innovation and globalization while adapting to new challenges.
• Robust leadership pipeline – The process reinforced GE’s culture of developing internal talent for critical positions.

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3. Team Lead Succession

Succession planning is equally important in smaller team settings, such as preparing for a new team lead. For example, when a sales team’s current lead plans to leave, the organization needs to identify and develop a capable successor from within the team. This involves recognizing promising candidates early and providing them with mentorship, training, and leadership opportunities to ensure they are fully prepared to step into the role when the time comes.

Key components of team lead succession planning:

• Identify potential successors among current team members based on performance and leadership qualities.
• Offer mentorship to help develop leadership skills and confidence.
• Provide targeted training relevant to the team lead’s responsibilities.
• Assign opportunities to lead projects or initiatives to build practical experience.
• Monitor progress and readiness to ensure a smooth transition when the team lead departs.

By establishing a leadership pipeline within the team, companies can ensure a smooth and effective transition when a team lead departs. When the handover is completed successfully and daily operations continue without disruption, the succession plan can be deemed successful.

Key outcomes of team lead succession planning:

• Creating a ready pool of internal candidates prepared to take on leadership roles.
• Minimizing disruption to team performance during leadership changes.
• Maintaining continuity in project execution and team dynamics.
• Boosting employee engagement through visible growth opportunities.
• Ensuring alignment with broader organizational goals and culture.
  
  

Example: Walmart’s Multigenerational Leadership

Walmart provides a strong example of succession planning across generations, balancing family leadership and professional management. After founder Sam Walton stepped down, his son took over, and in 2014, Doug McMillon, an external executive, became CEO while family members remained involved. This strategic balance helped Walmart maintain stability and align succession with its long-term objectives.

What Walmart Achieved:

• Seamlessly integrated family and professional leadership to meet evolving business needs.
• Ensured smooth CEO transitions across different leadership styles.
• Sustained strong company culture while adapting to new market challenges.
• Maintained shareholder confidence through stable governance.
• Positioned the company for continued growth and innovation over decades.

4. Family Business Transition

Succession planning is equally important in family-owned businesses, where leadership often passes from one generation to the next. For example, a family-run restaurant preparing for the owner’s retirement might identify a family member—such as the owner’s daughter—with the interest and potential to take over. The transition involves careful knowledge transfer and mentoring to ensure the successor is fully prepared to lead, effectively creating an internal talent pipeline that supports business continuity.

Key components of family business succession planning:

• Identify a high-potential family member interested in leadership.
• Facilitate thorough knowledge transfer and mentoring before the transition.
• Prepare the successor through hands-on involvement in business operations.
• Maintain clear communication among all family members to manage expectations.
• Establish a formal succession plan to reduce uncertainty and operational risk.

With proper preparation, the retiring owner’s successor can smoothly take over the business, ensuring operations continue without interruption. Confidence in the successor’s readiness helps maintain stability both within the family and the business.

Key outcomes of family business succession planning:

• Effective transfer of knowledge and leadership responsibilities.
• Minimal disruption to day-to-day operations during the transition.
• Preserved family harmony and trust throughout the process.
• Continued adherence to the family’s values and business culture.
• Created a sustainable plan for future leadership successions.

Example: Ford, A Family Succession

Ford Motor Company demonstrates how family succession combined with strategic external leadership can support long-term success. Founded by Henry Ford, the company has experienced multiple family-led leadership transitions. In 1999, Bill Ford prepared the next generation for leadership roles. Later, in 2006, Ford appointed Alan Mulally as CEO, an external leader who played a crucial role in navigating the company through financial difficulties and driving innovation.

What Ford Achieved:

• Maintained smooth leadership transitions within the Ford family.
• Successfully avoided bankruptcy under the guidance of Alan Mulally (Forbes on Ford’s turnaround).
• Fostered innovation and operational efficiency during a critical period.
• Balanced the legacy of family leadership with professional management.
• Ensured sustainable growth aligned with long-term strategic goals.

5. Skill-Based Succession

Skill-based succession planning focuses on preparing talent pools based on critical skills and qualifications needed for key roles. Organizations begin by identifying positions where specialized expertise is essential. They then develop targeted training and development programs to enhance the qualifications of potential successors, ensuring they can step in smoothly when a vacancy arises without disrupting business operations.

Key components of skill-based succession planning:

• Identify roles requiring specialized skills critical to business success.
• Assess the existing skills of potential internal candidates.
• Provide targeted training and development to close skill gaps.
• Continuously update skill requirements based on evolving business needs.
• Build a ready talent pool capable of seamless role transitions.

When a specialist in a critical role departs unexpectedly, the company can quickly fill the position from a prepared talent pool, minimizing operational disruptions. This approach exemplifies how skill-based succession planning secures continuity and organizational resilience.

Key outcomes of skill-based succession planning:

• Ensured rapid replacement for critical roles with skilled candidates.
• Reduced downtime and operational risk during transitions.
• Enhanced employee development aligned with strategic needs.
• Maintained consistent performance across specialized functions.
• Strengthened organizational agility in responding to changes.

Example: Apple’s Succession from Steve Jobs to Tim Cook

Apple’s transition from Steve Jobs to Tim Cook is a landmark example of skill-based succession. As Jobs’ health declined, Apple prepared Cook—who had deep operational expertise and understanding of the company—to assume the CEO role. Cook officially became CEO in 2011, leading a seamless transition that allowed Apple to maintain its innovative momentum and operational stability.

What Apple Achieved:

• Executed a smooth leadership handover with minimal disruption.
• Maintained continuity of vision and innovation under Cook’s leadership.
• Leveraged Cook’s operational skills to scale Apple’s global supply chain and services.
• Ensured stakeholder confidence through transparent succession planning.
• Sustained Apple’s growth trajectory with a leader well-versed in company culture and strategy.

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5 Failed Succession Planning Examples

1. Leadership Instability Due to Poor Succession Planning

A lack of clear and consistent succession planning often causes leadership instability. Without a formal strategy to prepare successors or manage transitions, companies may face frequent leadership changes that disrupt organizational focus and morale. This creates uncertainty internally and externally, making it difficult to maintain strategic direction and stakeholder confidence.

Key components of leadership instability caused by poor succession planning:

• Absence of a documented succession plan.
  Frequent leadership turnover disrupting continuity.
• Failure to develop internal leadership candidates.
• Misalignment between leadership transitions and business goals.
• Ineffective communication with employees and investors during changes.
  

When leadership succession is poorly managed, organizations often experience cultural disruption, weakened market position, and erosion of investor trust. These factors combine to threaten long-term viability and operational efficiency.

Key outcomes from poor leadership succession:

• Decreased employee morale and increased turnover.
• Strategic drift with lack of consistent direction.
• Loss of competitive advantage in the marketplace.
• Investor confidence erosion affecting stock price and funding.
• Difficulty in attracting and retaining top talent.
  
  

Example: Yahoo’s CEO Transitions from 2012 to 2017

Yahoo faced significant turmoil during multiple CEO changes, including the departures of Carol Bartz, Scott Thompson, and Marissa Mayer, often without clear succession planning. These rapid turnovers caused strategic confusion and loss of market relevance. Despite attempts to stabilize, the company struggled to regain footing and was eventually acquired by Verizon in 2017.

What challenges did they have to face?

• Uncertainty from frequent leadership changes damaging employee and investor confidence.
• Difficulty maintaining strategic focus amid shifting visions.
• Internal power struggles and governance issues.
• Declining revenue and market share due to lack of clear direction.
• Damage to brand reputation as an industry innovator.

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2. Failure to Align Succession with Industry Evolution

Succession planning that ignores evolving industry demands, especially the need for new skills and innovation, leaves companies vulnerable. When leadership development focuses on traditional skills but neglects emerging competencies, the organization risks falling behind competitors and missing critical market shifts.

Key components of succession failure due to poor industry alignment:

• Lack of foresight about changing industry trends.
• Insufficient development of future-focused skills in leaders.
• Resistance to innovation within succession criteria.
• Failure to update succession plans as market conditions evolve.
• Overreliance on legacy expertise without digital or technical acumen.

Organizations experience a decline in market relevance and competitive positioning as they fail to adapt leadership to meet industry transformations.

Key outcomes from ignoring industry evolution in succession:

• Lost opportunities in emerging markets and technologies.
• Eroded competitive advantage and customer loyalty.
• Reduced innovation and slower response to disruption.
• Financial decline and loss of investor confidence.
• Difficulty attracting digitally savvy talent.

Example: Kodak’s Leadership Transition Amid Digital Disruption

Kodak’s leadership succession did not prioritize digital innovation skills, which contributed to its failure to pivot effectively from film to digital photography. Leadership changes were made without aligning successors’ skills to the industry’s digital transformation, accelerating Kodak’s decline.

What challenges did they have to face?

• Inability to embrace and lead digital transformation.
• Leadership lacking necessary technological expertise.
• Declining revenues as competitors captured digital markets.
• Loss of employee confidence and increased turnover.
• Brand perception as outdated and slow to innovate.

3. Lack of Succession Planning in Small Businesses

Small businesses frequently neglect succession planning, often due to limited resources or the owner’s reluctance to plan for departure. This oversight jeopardizes business continuity, making small enterprises vulnerable to sudden closure or undervalued sale when an owner leaves unexpectedly.

Key components of succession failure in small businesses:

• Absence of formal succession or contingency plans.
• Dependence on a single owner with limited delegation.
• No identification or development of internal successors.
• Poor knowledge transfer and documentation.
• Underestimating the risk of sudden owner departure.

Sudden leadership gaps lead to operational disruption, potential business closure, and loss of value, affecting employees, families, and communities connected to the business.

Key outcomes from lacking succession planning in small businesses:

• Business closure or forced sale under unfavorable terms.
• Loss of jobs and negative community impact.
• Reduced business valuation and revenue decline.
• Legal or family conflicts regarding ownership.
• Loss of customer base due to instability.
  
  

Example: Common Challenges Faced by Small Family-Owned Businesses

Many small businesses close abruptly or sell for less due to no plan for leadership succession, threatening their survival and legacy.

What challenges did they have to face?

• Owner-centric operations without leadership backups.
• Lack of successor readiness and training.
• Incomplete knowledge transfer risking operational gaps.
• Emotional and financial strain on family and employees.

4. Founder Dependency and Lack of Leadership Pipeline

When organizations rely heavily on a founder or singular leader without preparing successors, they risk a leadership vacuum when that individual exits. This dependency can cause governance issues, strategic drift, and loss of stakeholder confidence during transitions.

Key components of succession failure from founder dependency:

• Overreliance on a charismatic founder’s vision and control.
• No formal leadership pipeline or backup plan.
• Weak governance structures to support transition.
• Insufficient development of potential leaders outside the founder.
• Failure to manage investor and board expectations.

Sudden founder departure often leads to operational instability, investor panic, and major restructuring challenges.

Key outcomes from founder dependency failures:

• Leadership vacuum disrupting business continuity.
• Decline in investor trust and company valuation.
• Operational challenges due to lack of prepared leaders.
• Loss of employee morale and increased turnover.
• Prolonged recovery and organizational realignment.
  
  

Example: WeWork’s Leadership Crisis Following Founder Departure

WeWork’s explosive growth was accompanied by weak succession preparation. When founder Adam Neumann abruptly left, the company faced a leadership void that triggered governance issues and forced a costly restructuring.

What challenges did they have to face?

• No ready successors prepared to take charge.
• Governance weaknesses undermining investor confidence.
• Rapid decline in company valuation and market trust.
• Internal uncertainty affecting employee engagement.

5. Failure to Incorporate Innovation in Succession Planning

Succession plans that fail to consider the growing importance of innovation and technology skills leave companies vulnerable to disruption. Without leadership equipped to drive change, businesses struggle to adapt to new markets and consumer behaviors.

Key components of succession failure regarding innovation:

• Neglecting innovation and digital skills in leadership development.
• Promoting based on tenure or tradition rather than future needs.
• Lack of continuous learning culture for emerging trends.
• Poor integration of technology and innovation in strategy.
• Underestimating market disruption impacts on leadership needs.
  

Organizations lose market relevance and suffer financial decline as they cannot compete with more innovative rivals.

Key outcomes from neglecting innovation in succession:

• Loss of customers to technologically advanced competitors.
• Declining revenue and profitability.
• Reduced ability to enter or lead new markets.
• Damaged brand reputation for being outdated.
• Increased vulnerability to industry disruption.
  

Example: Blockbuster’s Leadership Failures in the Digital Era

Blockbuster’s leadership lacked focus on digital innovation during succession, contributing to its inability to compete with Netflix and others, hastening its collapse.

What challenges did they have to face?

• Leadership unprepared for digital market shifts.
• Failure to innovate and embrace new business models.
• Loss of market share to digital-native competitors.
• Financial struggles leading to bankruptcy.

Sample Succession Plan

If the succession planning examples above aren’t quite what you need, don’t worry - we have an article featuring 6 free succession planning templates that you can download and customize for your organization. These ready-made templates provide a practical starting point to help you build a solid succession plan tailored to your specific needs.

We put together an entire gallery of succession planning templates that you can download for absolutely free! You can find them all and download from this article:

‍FREE SUCCESSION PLANNING TEMPLATES

A Succession Planning Template inside Microsoft Teams: Teamflect

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A structured approach is everything when it comes to succession planning. That is exactly why having a tool like Teamflect that allows you to plan accordingly right inside Microsoft Teams is so important. Teamflect allows you to not only centralize your performance management but also your talent management. Using Teamflect you can:

• Integrate succession planning into your workflow
• Create individual development plans that support professional growth.
• Make opportunities accessible through an internal job board.
• Organize teams through seamless collaboration and data tracking.
• Clearly communicate and search for role based competencies.
• Streamline your talent management processes and more!

Every layer of your performance management data will be seamlessly integrated into Teams and help you track progress in all regards, whether that is goals, tasks, reviews, or feedback. Teamflect will provide the right space for your team to make the best decisions and move forward with dependable steps!

Best Practices for Building a Future-Proof Succession Plan

Before we get to our examples, it may be a good idea to understand the best practices surrounding succession planning.

1. Identify Key Roles and Competencies: Determine which positions are critical to your organization’s success and the key skills required for those roles. This way you know where to focus your succession planning efforts more effectively.

2. Assess Current Talent: Get a thorough evaluation of your current workforce to identify high-potential individuals who could potentially be prepared for future roles. Use tools such as performance reviews, skills assessments, and potential evaluations to inform your employees of this process.

3. Develop Talent: Make sure that you make the necessary resources for employee growth accessible and encourage professional development. This key component will allow for secret diamonds to shine and will motivate your employees to strive higher.

4. Communicate and Engage: Keep key parties informed on your succession planning and overall process when it comes to your future plans. Consistent communication of the general trajectory of succession planning will keep the discussion open and engage your workforce about career pathing and development.

5. Monitor and Review: Regularly review and update the succession planning process to reflect any changes to your business environment, your workforce’s performance, and your organizational goals. Continuous tracking will aid this process.

6. Foster a Culture of Leadership: Encourage a culture where leadership development is a priority. This includes recognizing and rewarding leadership potential and creating opportunities for employees to demonstrate their capabilities on a regular basis.

7. Utilize The Right Tools: By utilizing a succession planning tool such as Teamflect, you’ll be able to make the entire process of succession planning overall easier for all parties involved. An all-in-one solution such as Teamflect will keep communication channels open, help design your process, and gather insight and analyze data on potential successors.

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Why Succession Planning Often Fails (And How to Avoid It)

We've already established why succession planning is so crucial but why do they fail still? One key reason is the lack of clear communication. If there are no ongoing discussion around professional development than it will become difficult to identify and prepare the right prospects.

When succession planning is treated as an ad-hoc process, it becomes reactive instead of proactive. To avoid these pitfalls, ensure your succession planning process is integrated into your organization's culture and strategic vision.

Internal vs External Succession: Which One Should You Prioritize?

One key decision when it comes to succession planning is whether or not you'll hire internally or externally. Internal succession has its own advantages, especially since your workforce already has a deep understanding of company culture and other operational behavior.

On the other hand, external succession can bring a fresh perspective and a unique approach. Still, all external hires will require time to adjust and may struggle to adapt as opposed to internal candidates. While there isn't a one-size fits all answer to this, a healthy balance is usually the way to go. Develop your internal talent, and keep an eye on external candidates to fill any  skill gaps that can arise.

Final Words

The implementation of a robust succession plan is a crucial aspect of a successful organization, especially in the long term. We simply cannot undermine the importance of succession planning in  the success of an organization. Leveraging different types of succession planning examples, and methods like the 9-box talent review, you can help align potential employees with future leadership roles.

Tools like Teamflect will make things even easier for you to streamline your succession planning and various other performance management needs. With such strategies implemented in your operations regularly, your organization will set itself up for a sustainable and successful future.

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