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Rethinking succession

Five strategic shifts that turn leadership planning into a competitive advantage - An IMD playbook

May 2026

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Executive churn at the top of organizations is at a record high and is expected to accelerate through 2027 and beyond. Meanwhile, Gen X and older leaders are retiring at historic levels. As technological disruption continues to reshape the competitive landscape, a perfect storm is emerging that exposes a critical weakness in how most organizations approach succession.

The report details five key shifts and calls for stronger talent diagnostics, internal mobility, and rotation to build ambidexterity, alongside governance that makes succession a shared priority rather than an isolated HR task.

It also highlights the critical first 90–180 days in a new role, proposing a transition protocol to help leaders gain traction quickly. Overall, the aim is to turn succession planning from a risk-mitigation exercise into a source of competitive advantage and strategic renewal.

Five strategic shifts to build future-ready leadership

Build an ambidextrous leadership bench by developing leaders who can both deliver today’s results and explore future opportunities.
Select leaders for developmental agility, prioritizing those who learn quickly and adapt over those with only strong past performance.
Promote non-linear career paths across functions, geographies, and business models to build broader perspective.
Shape succession around future capability needs rather than current role requirements.
Prioritize internal talent development, using external hiring selectively to preserve knowledge and drive growth.

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