CEO succession is one of the most critical turning points in an organisation’s life cycle. It can drive growth, enable transformation, or, if mishandled, create lasting disruption. While Boards have traditionally steered this process, the CHRO is increasingly recognised as a vital contributor.
From Observer to Architect
Over the past decade, the role of the CHRO in CEO succession has evolved significantly. Once on the margins of such discussions, today’s CHRO is expected to provide a structured, data-informed view of leadership readiness and play a central role in fostering alignment between the current CEO, the Board, and the broader organisation. For Boards, the CHRO offers continuity and a balanced view. For CEOs, they provide confidentiality, trust and perspective.
CHROs must approach this responsibility with a blend of business insight, emotional intelligence and neutrality. The Board is not looking for a proxy—they want a partner who understands the business, the talent, and the long-term strategy.
Knowing When and How to Begin
One of the most complex aspects of CEO succession is timing. Most credible CHROs treat CEO succession as their top priority and follow a proactive approach. The most successful transitions have been those where this was part of the organisation’s ethos —a continuous process, rather than a knee-jerk reaction. Sometimes initiated by the CEO, other times directed by the Board, or ideally built into ongoing planning, these conversations, when handled with discretion, can unlock smoother transitions.
According to PwC’s 2024 Annual Corporate Directors Survey, only 40% of directors said their board is very confident in its ability to identify CEO successors, highlighting a persistent gap in long-term leadership planning.
CHROs often act as discreet confidantes—trusted to navigate sensitive discussions and align strategic intent with practical action.
Building a Succession Framework
The CHRO is expected to design and maintain a robust succession framework that extends beyond a single individual or moment. This includes:
- Alignment with the company’s strategic direction for the next 5–10 years
- A clear and evolving view of internal talent pipelines
- Ongoing assessment and development through performance management and leadership programmes
- A view on the external talent landscape
Timely involvement of the CEO, regular reviews of readiness and early engagement with the Board help ensure momentum and avoid last-minute surprises.
Balancing Internal and External Options
Not all internal pipelines are sufficient for what lies ahead. When an external view is required, CHROs should:
- Use market mapping to provide a realistic view of external talent
- Justify an external hire with rigour and objectivity
- Manage candidate expectations and cultural fit carefully
Ideally, the Board should be presented with well-developed options from both within and outside the organisation, allowing for genuine choice and continuity.
Case in Point: Creating Momentum Through Internal Succession
In a multinational healthcare organisation undergoing significant transformation, the CHRO played a decisive role in ensuring continuity during the CEO succession.
The outgoing CEO had launched a transformation programme focused on revitalising core operations. To maintain momentum and avoid the disruption seen in past external appointments, the CHRO prioritised internal succession. A strong candidate was already leading most of the business and had international experience that added perspective.
Working closely with the CEO, the CHRO implemented an 18-month plan to develop the candidate’s readiness. This included Board exposure, handling sensitive internal matters, and leading cross-functional initiatives. Stakeholders were gradually introduced to the candidate, allowing for familiarity to build over time.
When the CEO stepped down earlier than expected, the organisation was ready. The CHRO also helped the new CEO navigate peer dynamics and leadership challenges through structured coaching and a carefully planned transition period.
The key takeaway: succession readiness must begin well before a formal departure, and internal candidates should be developed deliberately, with Board visibility and leadership stretch.
Coaching for the Future, Not the Past
Once a successor is identified, the CHRO plays a critical coaching role—not as a traditional mentor, but as a trusted observer who provides the right exposure, context, feedback, and a sounding board during key moments. Today’s leaders must demonstrate:
- Comfort with ambiguity and rapid change
- Self-awareness and emotional maturity
- Board fluency and external orientation
- Cultural competence and global sensitivity
- A deep understanding of technology’s role across the value chain
CHROs must also coach on influence, resilience, and stakeholder alignment, especially where the incoming CEO inherits a high-performing predecessor.
Managing Stakeholders Around the Successor
A successful succession requires attention to the broader talent ecosystem. CHROs must:
- Support the outgoing CEO through a sometimes emotionally complex process
- Manage internal leaders who were not selected, providing clear feedback and future opportunities
- Create a structured transition that is long enough to embed trust, but not so long that it creates confusion
- Develop a robust onboarding plan for the new leader with a minimum of a year’s air cover
Done well, these efforts help maintain stability, protect morale, and uphold the company’s employer brand.
Succession is Never Finished
Appointing a new CEO is not the end—it is the start of the next cycle. CHROs must continue to support the new leader’s integration, revisit succession plans, and track progress against strategic objectives
In today’s climate, characterised by geopolitical volatility, changing workforce expectations, and an accelerating pace of change, CEO transitions are becoming more frequent. In India alone, over 140 CEOs exited their roles in the past year across NSE-listed companies. In this environment, the CHRO’s ability to guide succession with steadiness and foresight has never been more critical.
Case in Point: Succession as Organisational Continuity
A senior CHRO with experience across major Indian conglomerates shared their structured approach to CEO succession.
Planning started years in advance, and the process was institutionalised rather than a knee-jerk reaction. The final decision was shaped by whether the goal was stability (an internal candidate preferred) or disruption (an external candidate preferred to bring in a fresh perspective). Capability was always the baseline
Assessment was rigorous. Candidates were benchmarked against leaders running businesses at future scale, and market engagement through informal interactions with external talent ran in parallel to ensure optionality.
Where promising candidates emerged, inducting them into the Board was a unique approach followed which allowed both parties to understand each other deeply. Succession transitions followed a phased approach, consisting of operational immersion, alignment with key sponsors, and steady increases in scope.
Those not selected were treated with respect through honest conversations and new opportunities, ensuring they exited as ambassadors, not detractors.
The CHRO noted that CEO fundamentals hadn’t changed: deep consumer and market understanding, cognitive strength, people leadership, and self-awareness. Technical gaps, they argued, can be bridged by strong teams.
It is not CEO succession—it is continuity of the organisation.
Final Thought
Handled well, CEO succession protects what matters most: the continuity of leadership and the stability of the organisation. For CHROs, this is one of the few moments where their work directly shapes the future of the entire organisation. Those who approach it with clarity, trust, and strategic intent don’t just support the process—they help define it.
