Introduction
"I've been appointed to succeed a great boss and leader, but I feel like I'm going to be crushed by the pressure..."
Or, "We don't know who to put forward as the next leader within the company."
For anyone leading an organization, there is one thing that cannot be avoided:Choosing a successorThis presents a formidable challenge. In particular, if the previous person in charge was a "legend" with an overwhelming track record, the hurdle becomes impossibly high.
In fact, this is a common challenge faced by global giants like Apple and Nike. This article clearly explains why successors to great leaders often struggle and what succession strategies are needed to avoid failure.
The "legendary wall" plagues successors.
In conclusion, the reason why successors to exceptionally talented leaders struggle is not due to a lack of ability, but because "the standards set by their predecessors were too high."
The article highlights the existence of "marathon runner CEOs" like Apple CEO Tim Cook (executives who have long tenures and consistently deliver high results). Because they dramatically increase market capitalization and net profit over long periods, their successors are subjected to extremely stringent evaluation criteria from the moment they take office, requiring them to achieve results equal to or better than their predecessors.
In other words,"These shoes are comfortable, but they're too big."It's like being forced to wear a hat. The stronger the success story and charisma of the predecessor, the more likely the successor is to be overshadowed, and even the slightest stagnation is seen as "decline."
The reality of succession planning as seen through data, and three strategies to avoid failure.
In fact, a study (by Spencer Stewart) analyzing data from S&P 500 companies revealed some shocking facts.
The successor, promoted internally, had approximately 661 TP3T, but his relative total revenue fell short of his predecessor's.
Nearly half of the successors underperformed the market average.
As you can see, the simplistic idea that "we can just promote the best people in the company" is not enough to avoid risks. So, how can we break this "curse of succession" and achieve a smooth generational transition?
Professional consultants and headhunters recommend the following three strategies:
① Start searching for a successor "immediately after taking office"
It may seem surprising, but the idea is that you should start planning for the next leader as soon as the current leader takes office. It's not that "it's too early," but rather "the earlier the better."
Especially when aiming for a long tenure, focusing solely on those directly under the current manager can lead to inappropriate age and experience levels when it comes time for a change. It's crucial to deliberately skip generations and focus on **"promising young talents who will reach their peak in 10 or 20 years."**
② Don't "fix" the plan; keep it constantly updated.
In today's business environment, "what was the right answer three years ago may not be the right answer today."
For example, a few years ago, there was no impact from generative AI like ChatGPT, and the trend towards globalization was different. It's essential to be flexible in adapting to changing times, redefining "what skills does this company need now?", and constantly updating the list of potential successors.
③ Seriously consider the option of "recruiting from outside."
Many companies tend to prioritize internal promotions and value their corporate culture, but deliberately bringing in "outside blood" can be a breakthrough.
We strongly recommend external recruitment, especially in the following situations:
When existing business models have reached their limits
When dealing with disruptive technologies such as AI is an urgent necessity.
When you want to break down internal ingrained beliefs (constraints) and bring about change
The dangers of searching for the "perfect successor"
Let's consider this from a different perspective. We often try to find the perfect person, like a "copy of the predecessor." However, that's impossible.
The reason my predecessor succeeded was"Because that person's abilities matched the circumstances at the time."That's all it is.
What is needed in a successor now is not "being able to do the same things as the predecessor","Possessing the new skills necessary to lead the company into the coming era."is.
If you've been chosen to succeed a leader, focus on finding the optimal solution for the current era, rather than simply imitating your predecessor. Shifting your evaluation criteria from "comparison with your predecessor" to "creating value for the future" is key to achieving both peace of mind and tangible results.
Summary
The struggles of successors to legendary leaders stem not from a lack of ability, but from a "mismatch of standards." The key is not to try to wear the shoes of your predecessor, but to design new shoes that are suited to the new era.
[Insights you can use starting tomorrow]
"The first step in true leadership is not to simply replicate past successes, but to redefine what constitutes the 'right answer' in the current situation."
Please try sharing this perspective in your morning meetings, greetings, or as advice to your team members.
