Succession Planning Isn’t Invisible
Selling consulting services can be tough—because you're selling something intangible....almost invisible.
But that’s not true with succession planning.
The ROI of Succession Planning is off the charts.
Here are just a few ways succession planning saves—and even makes—your company money:
🔹 Save on Headhunting
Ever had to recruit a senior leader from outside the company because no one internally was ready? That can cost you over 200% of the position’s salary, according to SHRM. So that $100K hire could cost more than $200K, before factoring in the ramp-up time or cultural misfires.
Internal candidates, on the other hand, already understand your company’s way of working. They onboard faster, reach productivity sooner, and often cost less to get up to speed.
🔹 Improve Retention
When employees see a path forward, they stick around. LinkedIn reports that 94% of workers would stay longer if a company invested in their career growth. Succession planning is career development—it helps someone grow from entry-level to manager in a few years. That saves on turnover, retraining, and lost productivity.
🔹 Reduce Risk
Unexpected exits are no longer crises. When you’ve done the work, you can say, “It’s a hiccup, not a disaster; we’ve got someone ready.” Succession planning acts like an insurance policy—it doesn’t stop the unexpected, but it ensures you’re not blindsided.
🔹 Gain a Competitive Edge
Companies that cultivate internal leadership pipelines are more agile and more resilient – because they’re not scrambling – they already have someone with the right capabilities and context (context is also invisible, but it’s uber important!).
Here’s a perfect example:
Remember when the CEO of United Healthcare was killed? The US company did not have a successor in place. Instead, they had a UK executive from their parent company take over running the US operation.
Did he know how to run a healthcare company? You bet.
Did he know how Medicare Advantage plans worked? No. No clue. Why would he know? He came from a country with universal healthcare.
The former CEO died in December … by April the company had withdrawn its earnings projections and the UK CEO had resigned – because he didn’t know what he was doing … in America … he did not have the context of how the operation ran.
Bottom line:
Succession planning may not be flashy—but it delivers. It’s a strategic move toward business stability, talent retention, and long-term strength. And that’s an investment that will pay you back again and again.
*This newsletter is excerpted from a larger article written for the Construction Management Association of America.
