By Tim Huff
President & CEO, TLG
What happens when one of the most admired companies in the world stumbles at the most important leadership transition of all: naming its next CEO? The Walt Disney Company’s story is a tale that all CHROs should know.
When Bob Iger stepped down as CEO in 2020, the board and shareholders expected a smooth handoff. Iger was one of the most admired executives in the world, credited with acquisitions like Pixar, Marvel, and Lucasfilm, and with transforming Disney into a global entertainment powerhouse. His chosen successor, Bob Chapek, seemed capable on paper: a seasoned executive with decades inside the company.
But less than three years later, Chapek was out. Disney was struggling financially, morale was shaky, and relationships with creative talent and political leaders were frayed. The board called Iger back, essentially admitting that their succession plan had failed.
Disney’s experience is a cautionary tale: even iconic companies stumble when succession planning is treated as a handoff event rather than a long-term, disciplined process.
Why Succession Fails
Disney’s story is not just about one executive, it highlights pitfalls that every Chief Human Resources Officer must watch for when leading succession planning in their own organizations:
- Delaying leadership transitions weakens your bench. When CEOs or senior executives extend their tenure repeatedly, promising leaders don’t get the chance to step up. Potential successors stagnate, leave for other opportunities, or never get tested in stretch roles. Succession planning must include honest conversations about timing and readiness.
- Confusing performance with potential. A strong operator or functional expert isn’t always the right person to lead at the enterprise level. Chapek excelled in operations, but his business judgement and strategic instincts weren’t aligned with Disney’s needs. CHROs must help leaders distinguish between today’s performance and tomorrow’s leadership capacity.
- Overlooking cultural fit. Leadership transitions often fail not because of technical competence, but because the successor doesn’t embody the culture, values, or leadership character needed to inspire confidence across the organization. CHROs should elevate culture as a non-negotiable element of readiness.
What the Best Companies Do Differently
Here’s the good news: research shows that many top companies are doing succession differently. A benchmark study by Allan Church and Christopher Rotolo (2013) surveyed 84 large organizations known for strong talent management. Their findings provide a roadmap for succession done well.
Succession is broad, not narrow. Nearly 90% of companies in the study assess their senior executives, and 75% assess their high-potential leaders. Succession isn’t just about the top brass, it’s about building a pipeline of talent across multiple levels so that the organization is never caught off guard.
Development comes first. The most common use of assessments was for development planning, not just selection. Companies recognize that succession planning isn’t only about identifying the next leader, it’s about preparing people to succeed once they get the role.
Multiple methods beat gut feel. Top companies don’t rely solely on performance reviews or a senior executive’s opinion. They use a mix of 360-degree feedback, personality inventories, structured interviews, and sometimes simulations or assessment centers. This multi-method approach avoids the “silver bullet” trap and provides a more complete picture of both readiness and potential.
Succession is global and enterprise-wide. Companies in the study treated high-potentials and senior executives as corporate assets, not local resources. This reflects today’s reality: leadership needs are global, and talent must be visible across the enterprise.
Outside perspective adds value. Many companies used external vendors, especially for senior executive assessments. This brings objectivity and credibility, particularly when evaluating leaders who may have significant political power inside the company.
Practical Takeaways
To move from theory to action, here are practices you can emphasize in your own succession strategy. These go beyond what the research highlights and reflect a “common-sense meets best-practice” approach (#3 is my favorite):
- Treat succession planning as year-round, not year-end. Too often, succession is reduced to a yearly HR ritual… names in boxes on a PowerPoint. Instead, embed succession into every executive conversation about talent, performance, and strategy. Succession should be a living, breathing system, not a one-time exercise.
- Broaden the definition of readiness. Instead of asking only, “Who could do this job tomorrow?”, also ask, “Who could grow into this role in 2–3 years?” This reframing allows you to identify emerging leaders who might not be “ready-now” but could be “ready-soon” if given the right stretch roles and coaching.
- Focus on character, not just competence. Skills can be developed more quickly than values. When CHROs emphasize integrity, respect, and responsibility as part of succession criteria, they guard against elevating leaders who “deliver numbers” but damage culture.
- Pressure-test your successors. Paper readiness is different from lived readiness. Build intentional “crucible experiences” into development, like interim assignments, turnarounds, cross-functional rotations, etc., that force high-potentials to lead under pressure. The best predictor of future leadership isn’t self-confidence; it’s how someone performs when the stakes are high and the playbook is unclear.
- Integrate succession with leadership development. Don’t just identify potential successors, invest in them. Tie succession planning directly into development plans, executive coaching, and targeted learning opportunities. A name on a list without a growth path is a succession plan in name only.
- Use multiple lenses of assessment. As Church & Rotolo’s benchmark study revealed, the best companies don’t rely on a single method. Use 360 feedback, personality inventories, and structured interviews in combination. Each adds a different perspective, and convergence builds confidence in the decision.
- Balance transparency with discretion. Communicating openly about succession can motivate high-potentials, but over-labeling (“You’re the next CFO”) can create entitlement, politics, and disappointment if plans change. Strike the right balance between giving visibility and managing expectations.
- Prepare for the “what if tomorrow?” scenario. Beyond long-term development, CHROs need a contingency mindset: “If the CIO resigned tomorrow, who would lead the technology team on Monday morning?” Having at least one emergency successor identified for every critical role is as much about risk management as it is about talent growth.
- Build accountability for leaders. Functional executives, not just HR, own the future of the pipeline. A powerful CHRO move is to embed succession outcomes into leaders’ performance metrics. For example: “How many ready-now leaders are you building?” When business leaders are held accountable, succession planning becomes a shared responsibility, not an HR side project.
Closing Thoughts
Succession planning is not a one-time decision or a spreadsheet with names in boxes. It’s an ongoing discipline that blends science and art… rigorous assessments, thoughtful development, and the wisdom to match leaders with the future needs of the organization.
Disney’s stumble is a reminder that no company, no matter how iconic, is immune from poor succession planning. But the practices of leading companies show a way forward: treat succession as both risk management and leadership development, and your organization will be far better prepared when transition comes!
Thanks,
Tim
References:
Church, A. H., & Rotolo, C. T. (2013). How are top companies assessing their high-potentials and senior executives? A talent management benchmark study. Consulting Psychology Journal: Practice and Research, 65(3), 199–223. https://doi.org/10.1037/a0034381
Catanach, A. H. (2023, December 22). CEO succession and The Walt Disney Company. Harvard Law School Forum on Corporate Governance. https://corpgov.law.harvard.edu/2023/12/22/ceo-succession-and-the-walt-disney-company/
