Getting Ahead of The Looming C-Suite Succession Crisis

Through our research, we identified three priorities that next generation C-suite leaders are looking for to elevate their career journey.

Transparent succession planning processes

Only 25% of next generation C-suite leaders feel their executive leadership team has a successful C-suite succession strategy. These next generation C-suite leaders noted that their organizations often lacked clear pathways for emerging leaders and that more could be done to identify and nurture high-potential talent. And these shortcomings aren’t just being flagged by those not included in a succession process—among next generation C-suite leaders who have been part of a recent succession process, only 36% feel that the process was transparent (Figure 1). [7]

These figures suggest that many next generation C-suite leaders are dissatisfied with their organizations’ current succession practices, which could translate to lower commitment to the organizations and a higher likelihood to seek out alternative employment opportunities.

 

Figure 1: Next generation leaders lack confidence in succession practices

Source: Russell Reynolds Associates’ H1 2023 Global Leadership Monitor, n = 559 Next generation leaders | Source: Russell Reynolds Associates’ H1 2023 Global Leadership Monitor, n = 1,406 CEOs, C-level leaders, and next generation leaders (294 CEOs, 553 C-level leaders and 559 next generation leaders)

Differentiated leadership development and training

Next generation C-suite leaders expressed aspirations for C-suite roles but acknowledged a “hazy vision” for how to get there. While the majority (67%) of next generation C-suite leaders say that their current career goal is to become a C-suite leader, most do not see a pathway, with only 52% reporting access to developmental opportunities (Figure 2). This leaves leaders unclear on how to broaden their experiences, sharpen their skills, and differentiate themselves for the C-suite.

 

Figure 2: Next generation C-suite leaders’ aspirations and developmental opportunities

1. Source: RRA H2 2024 Global Leadership Monitor, n = 1,247 next generation C-suite leaders 2. Source: RRA H2 2024 Global Leadership Monitor, n = 1,193 next generation C-suite leaders 3. Source: RRA H2 2024 Global Leadership Monitor, n = 1,247 next generation C-suite leaders

 

Next generation C-suite leaders are quick to point out the importance of continuous learning, but even when given developmental opportunities, they often don’t see a clear connection between these activities and their path to the C-suite. While next generation C-suite leaders rated coaching and mentoring as two of the three most impactful development activities, only 45% reported that their organization provides coaching, and only a dismal 27% receive mentoring (Figure 3).

 

A coach brings a background in leadership development disciplines to advise leaders on how to accelerate and sustain desired leadership behavioral changes to reach optimal performance. A mentor is a senior executive with a track record of leadership success who helps a mentee close experiential gaps in tackling specific business and role challenges by sharing their business knowledge, skills, and leadership experience.

 

Figure 3: Next generation C-suite leaders’ leadership development opportunities vs their impact

Source: RRA H2 2024 Global Leadership Monitor, n = 1,181 next generation leaders

 

This indicates that, while organizations may believe that they’re investing in next generation leaders’ development, those investments may be misplaced. To retain these leaders, organizations need to provide more structured development opportunities that are clearly connected to career progression, rather than development for the sake of development.

 

An executive leadership team that role models the right culture and behavior

Only of next generation C-suite leaders feel their senior leadership team role models the right culture and behaviors

Culture is every leader’s imperative, and understanding how to influence, steer, and steward culture is a primary role of leaders. However, only 36% of next generation C-suite leaders feel their senior leadership team role models the right culture and behaviors . Critically, next generation C-suite leaders who do not believe their senior leadership team exemplifies the right culture and behaviors are 1.51x more likely to leave their organization.

When an executive leadership team doesn’t role model the right culture and behaviors, it can lead to a lack of trust. This, in turn, can result in a lack of motivation and accountability across the organization. It also leads to more transactional, versus collaborative, operations. Given that next generation C-suite leaders tend to be in strategy critical or key value driving roles with several direct reports themselves, there is risk of a multiplier effect if their motivation, accountability, and collaboration falter.

A strong appreciation for organizational culture and clear articulation of that culture can lead to more productive employees, improved performance outcomes, and accelerated growth. Many next generation C-suite leaders emphasized the importance of a collaborative and inclusive leadership style, valuing diverse perspectives and fostering environments where team members can thrive by adapting and leading through disruption, ambiguity and change.