Why succession planning is businesses top priority in 2025

Published 17 April 2025 | 2 min read

What happens if your CEO resigns tomorrow? Or if a key leader walks out mid-project?

For many New Zealand businesses, there’s no clear answer and that uncertainty could derail growth, shake investor confidence, or trigger internal disruption.

Succession planning isn't just a good-to-have anymore it's becoming mission-critical.

Pressure builds as key leaders exit

According to the latest global What Directors Think 2025 report, nearly 70% of directors believe the sudden loss of a CEO or other mission-critical leader would significantly impact their organisation’s strategic direction.

Yet succession planning only just made it into the top five board priorities. For Kiwi employers, especially in growing SMEs or family-owned firms, this represents a dangerous disconnect.

You may be pushing hard for growth, but without leadership continuity, that momentum is at risk.

Why the disconnect?

While 76% of directors are prioritising growth in 2025, only 34% flagged improving CEO/C-suite succession planning as a top concern.

This mismatch could expose businesses to crisis if a key person leaves unexpectedly. Succession has even overtaken AI and cybersecurity on the priority ladder proof that leadership stability underpins every other strategy.

The growing awareness is timely, but many still lack a structured plan or a clear roadmap to act on.

The insights directors can’t ignore:

• 69% of directors say sudden leadership departures would have a “significant impact” on strategy.
• Only 8% believe it would have no or negligible effect showing most boards understand the risk.
• Succession planning (34%) now outranks AI adoption (27%) and workforce planning (26%) in importance.
• 43% would elevate CEO succession to the top of their board’s next agenda, if given the chance.

The three types of CEO exits; planned, unplanned, and emergency, each require different responses, yet few organisations prepare for all three.

What this means for NZ employers

New Zealand businesses especially owner-led and family-run ones should treat this report as a wake-up call. Strong leadership continuity fuels resilience, supports growth, and protects long-term value.

It’s not just about replacing a CEO; it’s about ensuring the business can carry on with clarity, direction, and confidence if the unexpected happens.

To dive deeper into how to structure your own succession plan with real-world insight, check out Think Like the Royals – the Art of Succession Planning by our own Senior Consultant, Jenny Barr.