Most companies are one resignation away from a leadership crisis

"When a leader walks out, the ripple effects are immediate: strategy stalls, teams lose momentum, and culture wobbles overnight. The bigger problem? Most companies aren't ready when it happens. According to DDI's 2025 HR Insights Report, only 20% of CHROs say they have leaders prepared to step into critical roles, and just 49% of those roles could be filled internally today. That means most organizations are closer to a leadership crisis than they realize. This isn't just an HR issue; it's a business continuity risk."

"Too often, succession planning lives in a spreadsheet. Once a year, leaders review "ready now" candidates, check the box, and move on. But when someone exits suddenly, those names on paper don't always translate into reality. I've seen it firsthand. At one company where I worked, the president resigned unexpectedly. On paper, there were successors. In practice, none were ready. The company scrambled to find an external hire, losing momentum and market confidence."

Succession planning must be proactive, systematized, and embedded in organizational culture to preserve strategy, momentum, and culture when leaders leave. Treating succession as an annual org-chart exercise or storing candidates in a spreadsheet leaves organizations unprepared for sudden departures. Only 20% of CHROs report having leaders ready for critical roles, and only 49% of critical roles could be filled internally today, creating a hidden leadership crisis and business continuity risk. High voluntary turnover and shorter employee tenure, especially among younger workers, amplify the urgency to develop leaders continuously through lived values, open forums, and deliberate development systems.

Read at Fast Company