Businesses exposed to operational risk as succession planning gaps persist

UK businesses are leaving themselves exposed to leadership disruption, with the majority still lacking a formal succession plan for senior roles. That’s according to new data from executive search firm Newman Stewart.

The findings reveal a clear divide between intent and action. While 39% of businesses say succession planning is embedded and regularly reviewed, more than three in five (61%) have yet to implement a comprehensive strategy. Notably, 22% of those in the latter group admit that succession planning is not part of their business strategy at all.

This shortfall comes at a time when leadership continuity is becoming increasingly critical. As senior roles grow more specialised and harder to fill, the absence of structured succession planning is creating tangible risk for businesses.

For companies operating in complex and project-driven sectors, this lack of structured planning is creating significant risk. Senior leadership gaps can lead to delays in decision-making, loss of knowledge and disruption to business growth, particularly when roles are highly specialised or difficult to replace.

According to Newman Stewart, the issue is being compounded by ongoing skills shortages and an increasingly competitive market for senior talent. Without a clear pipeline of future leaders, employers risk being reactive rather than strategic when key positions become vacant.

John Tilbrook, Managing Director at Newman Stewart, comments:
“We are seeing a clear divide between businesses that recognise the importance of succession planning and those that have truly embedded it into their strategy. While many of the companies we speak to are aware of the need to plan for leadership transitions, far fewer have taken the steps required to make it a consistent and active process.

“In sectors where senior roles are critical to delivery and growth, a lack of succession planning can create real problems. When businesses do not have a clear pipeline of future leaders, they are often forced into reactive hiring, which can be both time consuming and costly.

“Succession planning is not something that can sit on the sidelines. It needs to be an integral part of strategic workforce planning to ensure future leaders are identified, developed, and retained before gaps emerge. Those that take a proactive approach will be far better positioned to maintain continuity and drive long term growth.”

ENDS

About Newman Stewart
Newman Stewart is a global executive search firm specialising in senior, confidential and technically complex roles. Boutique in size but uncompromising in capability, the firm combines rigorous research, transparent processes and deep sector understanding to help clients solve their most critical leadership challenges.
www.newmanstewart.co.uk

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