When It’s Time to Create a Succession Committee (And Why That Time is Sooner Than You Think)

When it comes to CEO succession, timing is everything. Many organizations wait too long to begin the process, only realizing the urgency when their current CEO is ready to step down. By then, the options are limited, and the board often rushes through the selection, driven by deadlines rather than strategy. That’s why creating a succession committee early—much earlier than you might think—is not just wise; it’s essential.

Here’s why now might be the perfect time to form that committee, even if your current CEO is thriving.

Planning Beyond the Current CEO

CEO transitions are about more than filling a vacancy—they’re an opportunity to shape the future of your organization. The board must consider the company’s direction, challenges, and opportunities and find someone whose leadership aligns with those goals. Waiting until a transition is imminent forces the board to focus on available candidates who can manage the present, rather than considering those who can lead the future.

Starting early allows the board to think strategically about what kind of leadership is needed to take the organization where it needs to go. This requires time to reflect, not just react.

The Market Scan: Your First Step Toward Preparedness

At Wells Onyx, we believe in helping boards look beyond what’s obvious or urgent. That’s why we recommend conducting a market scan well before the formal search begins—sometimes as early as a year in advance. A market scan gives the board valuable insight into the landscape of available talent, while also allowing time to explore different leadership personas that might fit the future vision of the organization.

Instead of waiting for the moment when the CEO is ready to leave, boards can leverage this time to prepare, ensuring they are ready not just with names but with a clear understanding of what the next chapter of leadership looks like.

Why So Early? The Benefits of Early Planning

1. Understanding Market Availability: An early market scan provides a clear picture of who is likely to be available when you need them. Talent markets shift quickly, and understanding who might be open to a transition, and when, is critical. This avoids surprises and limits the risk of settling for less than ideal candidates under time pressure.

2. Shaping the Leadership Persona: Before you start the search, you need to know what you’re looking for. What kind of leader does your organization need? Should they focus on scaling? Innovating? Perhaps managing a complex restructuring? A market scan gives the board an opportunity to explore different leadership profiles and tailor their search criteria based on the future direction they’ve identified.

3. Creating Internal and External Benchmarks: Early planning doesn’t just mean looking outside the organization—it also allows time to evaluate and develop internal candidates. Many companies miss the opportunity to cultivate leadership from within because they wait too long to start the process. A market scan enables a comparison of internal and external talent, which can influence whether the board chooses to promote from within or seek external leadership.

4. Reducing Decision Pressure: Succession planning, done properly, takes time. By starting the process early, the board can make decisions without the pressure of an impending departure. This leads to more thoughtful decisions and, ultimately, a smoother transition. You can even use the market scan to run exploratory interviews or informal conversations with potential candidates, getting a sense of cultural fit and leadership style long before the formal process begins.

Avoiding the Pitfalls of Delayed Succession Planning

Too often, boards wait until the CEO’s departure looms before beginning serious succession conversations. This delay creates a frantic atmosphere, where decisions are driven by necessity rather than vision. When rushed, boards tend to gravitate toward candidates who maintain the status quo or manage the present, rather than identifying someone capable of steering the organization into its future.

Starting with a market scan, even a year in advance, ensures that your board is proactive rather than reactive. You’ll have time to align on priorities, evaluate your leadership needs, and understand what talent is available in the market—all of which leads to a more successful outcome.

Conclusion: Start Now, Not Later

CEO succession should be an ongoing process, not a last-minute scramble. By creating a succession committee early and conducting a market scan, you give your board the space to think strategically, identify the right leadership profile, and set your organization up for long-term success. At Wells Onyx, we work with boards to navigate this critical process, ensuring that when the time comes, you’re not just ready—you’re ahead of the game.

Planning for tomorrow’s leadership, today, is the best insurance policy you can have for your organization’s future.