Whether it’s the aftereffects of the Great Resignation spurred by the pandemic, a new wave of baby boomer retirements creating leadership vacuums, or an increased cultural awareness of the topic sparked by HBO’s wildly successful Succession, succession planning has become a hot topic in boardrooms throughout the healthcare industry.
In healthcare, we often think of succession planning as a safeguard, a way to ensure that leadership transitions are smooth, that critical roles are filled without disruption, and that organizational stability is maintained. But for far too long, many organizations have approached it with a reactive, “wait-and-see” mindset, only thinking about leadership transitions when they became urgent, and typically focusing on top roles like CEO and CFO, with little to no long-term development or internal talent pipeline strategy.
But in 2025, the most forward-thinking and innovative healthcare organizations we work with are approaching succession planning in a completely different, more proactive way. What are the key ingredients to their success? Implementing succession planning with the same rigor and frequency as strategic planning, an eye on internal talent potential, and using it as a welcomed opportunity to infuse new ideas, drive innovation, and ignite transformation across their organization.
An Ongoing, Dynamic Approach
One of the most common misconceptions about succession planning is that it’s a one-time event, something you do to check a box when a vacancy arises. This reactive approach often leads to rushed decisions with suboptimal outcomes and requires a much heavier reliance on external talent. Healthcare organizations are constantly evolving, and so too should their succession plans and leadership development strategies. Regularly reviewing and updating succession plans allows organizations to adapt to changes in the healthcare landscape, technological advancements, and shifting patient care needs. This approach not only ensures that the right leaders are ready when needed, but also fosters a sense of security and commitment among employees, who see that their career development is valued and prioritized.
By treating succession planning as a continuous, proactive effort, much like strategic planning, healthcare organizations can build a sustainable leadership pipeline that supports long-term success. We spoke with Marc Prine, Industrial/Organizational Psychologist and founder of MIP Consulting, who works with organizations on succession planning and integrating evidence-based methodologies into the management of human capital. He shared “the same way that you look at and refine your strategy, you should look at and refine your succession plans. It should all link back to your strategy. Anytime that there’s daylight between people management and business strategy is where ambiguity occurs and signals get crossed.”
By making succession planning an ongoing priority, you can identify and nurture leadership talent well before a crisis occurs. The best healthcare organizations don’t wait for a crisis to push them into action; they proactively cultivate leaders who are ready to step up, innovate, and make decisions that align with the evolving needs of the industry.
Internal Talent Pipeline Strategy
The success of this type of ongoing succession planning is also directly tied to how well organizations assess and develop internal talent. While external searches may still be necessary to fill critical gaps, a comprehensive internal succession plan increases the likelihood of identifying strong internal candidates who are not only familiar with the company culture, but also intimately understand the specific challenges and opportunities within the organization.
We also interviewed a CHRO at a ~$600 million+ revenue PE-backed healthcare organization who shared, “succession planning is really a process of examining the KSAs – the knowledge, skills, and abilities that are needed for each specific role, then assessing where each person that you’re examining stands today, and identifying any gaps. Are they one month away, three months, two years away from being able to step into that role? Then, we create a development plan that gives them the experiences that are needed in that time frame to be able to step up. In our company, we actually had two immediate successors who could step up to CEO and it was incredibly helpful. In that assessment process, you can also identify who may never step up, and that gives you other information to work with.”
To facilitate this, Prine endorses the use of a “nine box”, a visual tool to assess and identify potential future leaders by mapping employees based on their current performance and future potential, categorized into nine distinct boxes on a grid. This method provides a clear view of which team members may be primed for promotion to future leadership roles and which may need further development. By analyzing the distribution of employees across the grid, organizations can identify potential internal successors for key leadership roles and create targeted development plans for these high-potential individuals. Like succession planning itself, this method can be continually assessed and updated as part of annual reviews, strategic planning sessions, or other key milestones.
And while succession planning is most often associated with C-suite roles, organizations should extend their focus to developing talent at every level of the organization, from department heads to mid-level managers and frontline supervisors. These roles are just as critical to the organization’s success, and having a comprehensive succession plan that includes them ensures that leadership gaps at all levels can be filled swiftly and effectively. “We’re looking at every high potential individual and asking, what is the right role for them, where should they be going, and where are the gaps within our workforce that we might need to supplement with external talent?”, says Prine. When critical gaps are identified or an internal pipeline needs strengthening, organizations are turning to trusted executive search firms with vast networks of vetted talent, ensuring the swift delivery of top candidates ready to shape their future.
Succession planning does more than just fill seats. It ignites a cycle of continuous improvement and innovation.
A Catalyst for Innovation and Transformation
Far from simply filling vacancies in leadership roles, succession planning should also be a strategic tool for injecting fresh ideas, driving innovation, and catalyzing change. When approached with a forward-thinking mindset, it allows organizations to not only maintain continuity but also breathe new life into the organization.
The most successful organizations leverage succession planning to reimagine their future, positioning themselves to thrive in an industry defined by constant change and disruption. Says Prine, “none of our clients had a Head of AI Technology five years ago.” New needs are constantly arising, and succession planning, when done strategically, will factor in the changing needs of the industry to introduce innovative solutions to longstanding problems. At each review, ask yourself, how has the organization and the industry at large changed and how are we factoring that into our plans?
From technological advancements to shifting patient needs and regulatory pressures, leadership needs to be more agile and visionary than ever before. Organizations should consider how developing new leaders from within and hiring from outside the organization can bring diverse perspectives and bold ideas to drive real transformation, while still keeping a strong focus on cultural alignment. The CHRO we spoke to shared that “it’s really important to do a strong psych assessment, as well as skills and experience, to make sure that they have opportunity to meld into the culture of the organization rather than be the outsider who’s pushing for all this change.”
Today’s leaders must be visionaries capable of guiding the organization through complex and often disruptive transformations and global events. With an intentional focus on innovation, succession planning can ensure that future leaders are not just competent managers, but also disruptors who embrace new technologies, patient care models, and operational strategies that keep the organization ahead of the curve.
The true power of succession planning lies in its ability to reshape the trajectory of an organization. By approaching it as an ongoing practice with an eye on internal talent development and innovation, rather than merely filling leadership voids, succession planning is an opportunity to strategically infuse new ideas and drive your organization toward its next phase of growth.
