{"id":88486,"date":"2025-07-15T07:42:00","date_gmt":"2025-07-15T12:42:00","guid":{"rendered":"https:\/\/www.success.com\/?p=88486"},"modified":"2025-07-05T13:44:21","modified_gmt":"2025-07-05T18:44:21","slug":"building-smooth-succession-plan","status":"publish","type":"post","link":"https:\/\/www.success.com\/building-smooth-succession-plan\/","title":{"rendered":"How to Gain Buy-In from Investors for Your Succession Plan"},"content":{"rendered":"\n

If you\u2019ve ever seen the HBO original series Succession<\/em> or have heard of the Murdoch family\u2019s succession drama<\/a>, you might already know that succession planning<\/a> can get messy. A succession plan needs a lot to succeed, and gaining the support of key stakeholders, such as the board of directors<\/a> or investors, is essential.<\/p>\n\n\n\n\"SUCCESS+<\/a>\n\n\n\n

When developing a leadership pipeline, be it the CEO position or other major role, securing the support of these integral members of your company will ensure your plan runs smoothly. And while the ideal scenario would be for your stakeholders to embrace your plan with open arms, unfortunately, this is often not the case. To help facilitate an easier transition for your company, we spoke to experts to understand how to gain buy-in from investors and the board on a succession plan.<\/p>\n\n\n\n

3 tips to ensure a succession plan goes over smoothly <\/h2>\n\n\n\n

To develop a succession plan that stakeholders will support, experts agree that it comes down to clear communication, identifying the right talent and preparing them for the role early on.<\/p>\n\n\n\n

1. Focus on Communication<\/h3>\n\n\n\n

The most important action a leader can take to ensure a trouble-free transition is to communicate clearly and often with the investors and the board of directors about the plan, says Marissa Rodriguez, the founder and CEO of Through Experience<\/a>, a platform that helps CEOs grow their e-commerce business. <\/p>\n\n\n\n

\u201cUncertainty can often breed confusion and chaos,\u201d she says. \u201cThis is why it\u2019s so important that leaders overcommunicate, have clear intentions and can give others a sense of direction.\u201d<\/p>\n\n\n\n

To provide clarity on the process, Rodriguez advises developing a plan with key milestones and dates that everyone can reference, from identifying and training potential successors to their eventual assumption of the role.<\/p>\n\n\n\n

2. Create a culture of succession planning<\/h3>\n\n\n\n
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    Raising a succession plan to your investors and board of directors might cause concern, but if your company is always planning for leaders\u2019 replacements, it will feel like the norm to key stakeholders.<\/p>\n\n\n\n

    Mary Josephs, founder and CEO of Verit Advisors<\/a>, an investment banking advisory firm, recommends giving \u201cconstant attention to succession for all major roles across the organization. This means early talent identification, coaching and training, exposure, and support.\u201d<\/p>\n\n\n\n

    To build a company accustomed to succession planning, Christine Edwards, principal at The Red Bee Group<\/a>, a business consulting firm, recommends that the CEO and CHRO identify potential leaders who are two to four levels down on the organizational chart and begin orienting them early on. \u201cA process by which directors can meet with those leaders earlier on in their careers is helpful, as is bringing those leaders to the board or committees to discuss issues,\u201d she explains. <\/p>\n\n\n\n

    For potential leaders outside of the organization, Edwards says, \u201cbenchmarking external candidates with a smaller group of directors is also healthy and provides the ability to compare skills and accomplishments.\u201d<\/p>\n\n\n\n

    3. Invest in potential talent<\/h3>\n\n\n\n
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      Once potential leaders are identified, it\u2019s critical to invest in them to ensure they are ready to fulfill the role when it\u2019s time. Having talent pinpointed and already familiarized with the role prior to their transition will help investors and board members feel confident in your plan.<\/p>\n\n\n\n

      To prepare a successor for the job, Josephs recommends giving them time to shadow the exiting leader before they assume the position.<\/p>\n\n\n\n

      \u201cThis is expensive, as it often includes the next executive shadowing the previous executive for six months to a year. However, it is well worth the investment. It provides time for transitioning key relationships and trust (investors, team, clients, industry, COIs, etc.), understanding client and team nuances to be effective, [and a] safe space to practice decisions,\u201d Josephs says.<\/p>\n\n\n\n

      Getting key stakeholders\u2019 buy-in<\/h2>\n\n\n\n

      To gain your investors’ and board members’ support, you\u2019ll need to have plenty of discussions about the plan in order for everyone to feel comfortable moving forward.<\/p>\n\n\n\n

      According to Edwards, the leader or CEO should begin the conversation by discussing any upcoming leadership shifts before they happen and delving into why they are happening. \u201cRepeating those discussions a few times before the changes are made provides ample time for the board to reflect, ask questions and signal agreement with the changes,\u201d she says.<\/p>\n\n\n\n

      Josephs recommends the CEO share their vision on what strengths and capabilities will best serve the organization. \u201cIt [might] paint the picture on why we would look outside the organization, or why there are strong internal candidates,\u201d she says.<\/p>\n\n\n\n

      To gain buy-in from your investors and board of directors on your succession plan, Rodriguez says you\u2019ll need to be aligned on these five issues:<\/p>\n\n\n\n