Why Most Companies Get Succession Planning Completely Wrong

Why It Matters

Embedding continuous development into succession creates a scalable pipeline of ready leaders, essential for large, complex organizations to maintain operational resilience and competitive advantage.

Key Takeaways

• MTA integrates learning directly into succession planning
• Deloitte finds only 14% of execs rate succession planning effective
• 75,000-strong workforce gains strategic leadership development focus
• People department positions L&D as core strategic partner
• Early steps show promise but full rollout pending

Pulse Analysis

Succession planning failures often stem from treating leadership readiness as a one‑time checklist rather than an ongoing capability. Companies that rely on static “high‑potential” lists ignore the continuous skill‑building needed for executives to thrive in dynamic markets. This short‑sighted approach leads to talent gaps, stalled promotions, and costly external hires, eroding both morale and shareholder value.

The Metropolitan Transportation Authority (MTA) offers a contrasting model by weaving learning and development into the very fabric of its succession framework. Under senior deputy chief people officer Niki Stanley and chief people officer Mersida Ibric, the agency has shifted L&D from a peripheral program to a strategic engine supporting its 75,000 employees. By aligning training pathways with future role requirements, the MTA ensures that potential leaders acquire the competencies needed before vacancies arise, turning talent pipelines into predictable, internal growth channels.

For the broader business community, the MTA case signals a scalable blueprint: prioritize systematic development, measure readiness continuously, and embed talent initiatives within core HR strategy. Organizations that adopt this integrated approach can expect higher internal promotion rates, reduced reliance on costly external recruitment, and stronger leadership continuity. As market volatility intensifies, firms that master proactive succession will safeguard performance and sustain long‑term competitive advantage.