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Avoiding CEO Succession Pitfalls: How CHRO‑Led Governance Strengthens Board Decisions
- Directors' Institute
- 11 hours ago
- 7 min read
CEO succession. Two words that can determine the advancement of an organisation for years to come.
Despite its strategic significance, many boards continue to misstep when it comes to preparing for leadership transitions. Succession planning often gets reduced to a checklist activity—reactive rather than deliberate, personality-driven rather than competency-led. But the effects of a poorly handled succession go far beyond the C-suite.
People often don't see that they don't have a governing lens that combines strategy, culture and continuity, not that they don't have enough information or leadership skills. This is exactly where the CHRO's bigger role in governance becomes very important. When succession is seen as only a people issue, the company loses out on useful information that could help align leadership pipelines with long-term business goals.
Traditionally, CHROs have only been in charge of the operational aspect of succession, such as coordinating processes, doing assessments and setting up onboarding. But when boards include CHROs more in governance discussions, the succession discourse gets sharper, wider and much less likely to fail.
This article looks at why CEO succession is still a problem for even experienced boards and how CHRO-led governance can greatly enhance decision quality, readiness and alignment when given the right tools. What follows is not just a breakdown of problems but a strategic rethink of the process itself.
The CEO Succession Paradox
Most people agree that one of the board's most important jobs is to choose a new CEO. It has an effect on the value of shareholders, the continuity of strategy, and the stability of leadership. But, strangely, a lot of businesses don't treat them with the seriousness and foresight they need.
According to various studies (and reaffirmed in this Harvard Law School Forum article), boards often:
Start the process too late
Get overly fixated on external hires
Focus on charisma over capability
Ignore cultural alignment
Miss internal red flags
These mistakes aren't just little ones; they're errors in the way the system is set up to govern. If a succession plan isn't followed correctly or is out of order, it can cause stock values to drop, teams to become unstable, and the company's reputation to be at risk. In the worst circumstances, companies go from one temporary CEO to another, wasting time they don't have.
So what is the problem?
Most boards are made up of executives who are excellent at finances, the law, and running a business. This knowledge is really important, but it typically doesn't go far enough in areas like leadership potential, cultural risk or long-term talent architecture. These are precisely the areas where the Chief Human Resources Officer (CHRO) brings unique value. However, many boardrooms limit the CHRO's role to execution rather than influence.
True succession resilience requires boards to elevate the CHRO’s role beyond HR mechanics—into strategic governance. When the CHRO becomes a core voice in succession deliberations, the process moves from reactive to proactive, from transactional to transformational. Yet this only happens when boards acknowledge that leadership is not just a position—it’s a system and someone needs to govern it.
The CHRO: More Than a “People Person”
People have only seen the Chief Human Resources Officer (CHRO) as a functional head in charge of hiring, training and development, pay structures, and sometimes diversity programs for too long. High-stakes strategic decisions, especially at the board level, often don't give enough weight to or totally ignore their function.
That's not just a mistake; it's a strategic blind spot.
A well-empowered CHRO does much more than just make things run smoothly.They possess deep, often unspoken insights into an organisation’s leadership fabric. From real-time visibility of talent readiness and behavioural patterns to an understanding of team dynamics and cultural friction points, the CHRO brings unique intelligence to the CEO's succession process.
They know which high achiever has established real loyalty among their team and which one is silently causing people to leave. They can see problems that aren't in annual reviews or financial reports. And they know how their own ideals fit in with or clash with the company's culture.
When a board faces a decision between multiple internal CEO contenders who all look strong on paper, the CHRO is the one who sees what metrics can’t capture. Their understanding makes sure that the next CEO is not just qualified but also trustworthy, respected, and in line with the board's vision for the future.
Why CHRO-Led Governance is the Missing Link
Choosing a new CEO isn't just about picking someone to take over; it's also about making sure that the company stays on track, is credible and has a long-term strategy. Too often, succession is treated as a last-minute decision, led by external search firms or guided by surface-level performance data. That’s where governance gaps begin to show.
A strategically empowered CHRO can close those gaps. Unlike other leaders, CHROs have a long-range view of leadership development. They can start planning for the next CEO five to seven years in advance, making sure there is always a consistent stream of executives who are both technically skilled and culturally compatible. They create specific paths for development, put people through real-life situations to see how ready they are, and look at both their skills and their character.
Additionally, CHROs are the best people to set up independent, behavioural, and leadership assessment frameworks, typically with the help of outside experts. This makes the review process more objective and thorough.
But for these plans to function, boards need to make the CHRO a part of governance, not just a passive contributor but an engaged planner for succession. A CHRO who is often part of boardroom meetings might change how leadership continuity is talked about, monitored, and protected.
Ultimately, it’s a shift from short-term performance snapshots to long-term leadership preparedness—exactly what future-fit governance demands.
10 Common Pitfalls in CEO Succession—and How CHRO Governance Solves Them
CEO succession is one of the most high-stakes responsibilities a board can undertake. However, the process is often reactive, politically charged, or viewed as a mere HR exercise across various industries. Here’s how ten common pitfalls show up—and how a CHRO-led governance approach can systematically eliminate them.
When the CEO Hesitates
Some CEOs delay succession planning out of fear or control. A strong CHRO ensures neutral accountability by initiating discussions early and not relying solely on the incumbent's discretion.
The Risks of Reactive Succession
Many boards only take succession seriously after a resignation or crisis. CHROs embed succession into annual boardroom rhythms—turning it from a one-off event into an ongoing governance conversation.
Misaligned CEO Profiles Undermine Strategy
When boards don’t update the success profile to match future strategy, misalignment ensues. CHROs ensure the CEO pipeline reflects the evolving business model, market shifts and long-term goals.
Ceding Too Much Power to the Incumbent CEO
While incumbent input is valuable, over-dependence can bias the process. The CHRO acts as a balancing force—ensuring the board retains control while gathering well-rounded insights.
Lack of Depth in Succession Discussions
Succession reviews frequently only provide a superficial understanding. CHROs use leadership data, bench strength analysis and behaviour-based evaluations to elevate the discussion beyond résumés.
Limited Insight into Internal Talent
Boards often lack visibility for next-generation leaders. CHROs bridge that gap through talent audits, 360° reviews and structured exposure of internal candidates to the board.
Poorly Managed Transitions
Even strong hires can fail without onboarding. CHROs own the transition—setting up 100-day roadmaps, mentoring systems and cultural integration plans.
When Candidate Development Disrupts Business
Sometimes high-potentials are over-rotated or spotlighted too early. CHROs design customised development paths that strengthen capabilities without destabilising operations.
When a Successor is Preordained
Over-confidence in a “chosen one” can lead to blind spots. CHROs champion diversity of thought, encouraging competitive assessment across a broader pool.
Superficial Assessment of External Talent
External stars often look great on paper but fail in context. CHROs apply cultural fit, values alignment and behavioural rigour—not just pedigree—to vet outside hires.
The Real Ask: Change the Relationship, Not Just the Role
Boards don’t just need more robust succession frameworks—they need more meaningful engagement with their CHROs. Only sporadically consulting the CHRO or asking them to "present an update" limits their impact. This isn’t true governance—it’s symbolic involvement.
Progressive boards are beginning to change this dynamic. They are inviting CHROs into CEO performance conversations, involving them in Nominating and Governance Committees will be empowered to co-create succession KPIs that align with the organisation’s strategic direction.
This shift signals more than inclusion; it reflects a recognition that leadership transitions aren’t just operational—they’re cultural, behavioural and reputational decisions. And no one is better placed to advise on those dimensions than the CHRO.
This evolution isn’t about giving HR a louder voice. It’s about ensuring that the most informed, human-centric insights actively shape the leadership bench. When boards change the relationship—not just the role—they future-proof succession itself.
Final Thoughts: CHROs as Boardroom Architects
In our advisory work, we have seen how the most resilient leadership transitions happen when CHROs are not just executors but architects of succession governance.
Their influence ensures succession isn’t reactive or political—but planned, principled and purpose-led.
For boards that want long-term success, the path is clear:
Don’t just review CEO candidates. Review how you’re including your CHRO.
Because in the end, it’s not just about who leads next—it’s about whether you’ve built the kind of board that knows how to choose.
At Directors’ Institute, we engage closely with board members, governance professionals and aspiring directors—and one topic that continues to spark both urgency and uncertainty is CEO succession.
Directors’ Institute is India’s premier training and advisory platform for aspiring and sitting board members. We help professionals and companies elevate boardroom standards with world-class education, strategic insight and governance thought leadership. Join our ecosystem of over 3,000 senior professionals and begin shaping the future of responsible leadership.
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