Succession Planning

 

Succession planning often feels like a distant priority. For Marnie Schwartz-Hanley, president and CEO of the Fountain Inn Chamber of Commerce (S.C.), a close call one foggy morning made it impossible to ignore. As she drove to a board meeting, an 18-wheeler crossed the double yellow line into her lane, nearly causing a serious accident. “I was very shaken and told the board what happened,” said Schwartz-Hanley. “We realized that if things had gone differently, they would be very unprepared.”

The Fountain Inn Chamber’s experience highlights a critical blind spot for organizations. The latest Leading with Intent report from BoardSource found that only 29% of boards have a written succession plan or policy for executive transitions, leaving the majority ill-equipped for an unexpected departure.

Yet, many executive transitions are predictable. A record number of U.S. CEOs vacated their positions in 2024, with the non-profit sector leading by industry. Nearly a quarter retired—a trend that will continue as 4.1 million Americans turn 65 each year through 2027. While some executives will leave their day jobs behind, others will chase new opportunities. According to Gallup, 52% of the world’s employees are watching for or actively seeking a new job.

James McCoy is among those making a career change after two decades as president and CEO of the Forsyth County Chamber of Commerce (Ga.). “I began preparing for my departure about 18 months ahead of my planned last day,” said McCoy.

He gathered insights about successful transitions from other chamber and association leaders to craft a succession timeline with key milestones. A year before his exit, he reviewed and fine-tuned the plan with his board chair and chair-elect. “This gave us ample time to ensure a seamless transition and address any challenges early,” he added.

McCoy had the advantage of passing his role to an internal successor. The board’s selection provided a longer runway to manage the transition, especially since the candidate was already aligned with the chamber’s culture and core values. This process also mitigated sudden disruptions for staff, members and the board. “I believe this continuity has strengthened the organization and given the team confidence that our culture and vision would continue to thrive,” McCoy said.

Although she is not planning to leave her position, Schwartz-Hanley has taken steps to prepare for her eventual departure. She created a job map detailing the areas of her role and the chamber’s mission-critical relationships, and the board updates her job description annually.

“Boards are often unaware of what they don’t know,” Schwartz-Hanley said. “As a chamber of one, it is essential to have systems and information in place.”

Even for large organizations, succession planning is crucial. Barbara Denny, chief financial officer and vice president of operations at the Greater Oklahoma City Chamber, has experienced several CEO transitions. She noted that a comprehensive succession plan outlines clear steps for both anticipated and emergency departures, establishes an interim leadership strategy and defines the board’s role throughout the transition.

Denny emphasized that a well-executed communications plan is essential for a smooth transition. Regular updates and opportunities for staff to connect directly with their the new CEO reduces internal uncertainty. Likewise, direct communication with members and community partners reinforces confidence in the organization. Active board engagement is key to this process, Denny said. “When board leadership is directly involved in the transition process—addressing staff, facilitating introductions and reinforcing the new CEO’s alignment—it reassures employees and members that the transition has been well-planned.”

Succession planning sometimes begins when life changes. Whether it is a long-anticipated retirement, a new career opportunity or an unexpected departure, all circumstances underscore the need for thoughtful preparation. “Give yourself a generous timeline for succession planning,” said McCoy, “It’s not about announcing your departure 18 months in advance, but about having a clear roadmap for what lies ahead.”

Having a plan will reduce uncertainty and ensure organizational stability throughout a CEO transition. The key is to be proactive. As Schwartz-Hanley advised, “Start planning now because once you need the plan, it’s too late.”

Begin your succession planning process with resources from ACCE.

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