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Forbes
2 days ago
- Business
- Forbes
'You're Not Ready': The Quiet Crisis Of CEO Succession
Older employee looking out of office window. Logan Roy, brutal patriarch of Succession, delivers one of the show's most revealing lines without blinking: 'I love you. But you are not serious people.' It's more than a takedown. It's a generational indictment. A founder who won't let go. A next generation unsure if they're trusted to lead. That dynamic isn't just a popular TV plotline. It plays out inside real boardrooms, family enterprises and executive teams. The CEO successor is named but sidelined. The current leader still takes the big decisions. The person next in line is visible but not empowered. The plan exists, but the trust behind it is fragile. Most CEOs, founders and boards don't ignore succession. But they often treat it as something to finalize later. The Illusion Of Time In a conversation with a board and CEO, I was told their succession strategy was solid. The business was performing well. The future CEO had been identified. There was 'plenty of time.' So I asked: 'If your CEO stepped down tomorrow, who could step in—credibly?' There was a pause. Then a quiet recognition. While a successor had been named, they had not been exposed to the board. They had not led through volatility. They had not owned the story externally. My next question was even simpler: 'Is the board aligned on that person's readiness?' The answer: 'Not entirely.' That hesitation isn't rare. It's an early signal that belief has not yet become readiness. The candidate is identified but not yet fully seen. The CEO Clock Is Ticking Double-time The quiet urgency is already visible in the top seat. In Q1 2025 alone, 646 U.S. CEOs left their roles — a record high. According to Spencer Stuart, CEO tenure among the S&P 500 has declined– from 11.2 in 2021 to 8.3 years in 2024. The leadership cycle is shortening. The window to prepare is shrinking. And in many boardrooms, the successor still isn't visible. In fact, interim leadership has soared in 2025. Of all incoming CEOs this year, 18% of them were named on an interim basis, compared to 6% during the same period last year. What departs with a CEO isn't just decision rights. It's strategic memory, investor trust, unspoken influence and the instincts shaped by years of complex calls. From the outside, the transition may look smooth. Inside, momentum has already begun to drift. Consider a familiar scenario: a CEO announces their retirement two years out. A successor is named. But over those two years, that successor is kept adjacent—invited to sit in, but not to lead. They don't build board relationships. They aren't tested with external investors. The team doesn't look to them when pressure hits. When the handoff comes, they are still a mystery to the people who matter most. Now contrast that with a company like Microsoft. Before Satya Nadella became CEO, he had led multiple business units, shifted internal mindsets around cloud, and earned deep trust inside and outside the organization. He wasn't just selected. He was prepared. The board wasn't surprised. The team wasn't skeptical. The culture didn't pause. One organization hoped succession would work. The other ensured it would. In my conversation with Piyush Gupta, ex-CEO of Singapore-based DBS Bank, he reflected on how much of his own leadership readiness came from being placed in tough, often uncomfortable roles early on—across geographies, away from familiar systems, in moments of high stakes. Those crucibles didn't just build experience. They built identity. He said it was in those formative tests that he learned to make sense of ambiguity, lead without defaulting to control, and develop judgment under pressure. That kind of preparation isn't theoretical. It's earned. And it starts long before the title ever changes. Gupta also aced his own succession. When he announced his departure, he named his successor in the same breath—Tan Su Shan, a longtime internal leader, would step into the role. No drama. No scramble. Just clarity, stability, and a transition that matched the precision of the institution he helped build. Four Shifts Boards And CEOs Must Make Now I've worked on CEO succession with public companies, founder-led firms and family businesses. The ones who handle it well don't view it as an HR process. They treat it as a cultural investment—something that reveals the organization's capacity to learn, evolve and trust. Succession doesn't begin at resignation. It begins when a CEO chooses to shape what comes next. Some CEOs delay because they still feel useful. But often, their most lasting influence happens in the final chapter—as teacher, mentor or transition partner. Not from obligation. From conviction. Reengaging the outgoing CEO in a purposeful handoff builds credibility. It creates space without leaving a void. It protects the legacy while empowering the future. Mentoring a CEO successor is unlike any other leadership relationship. It requires confrontation with complexity—activist pressure, investor expectations, media scrutiny, internal dissent. Successors don't need guidance alone. They need access. They need to be pushed, heard, contradicted and invited into the spaces where presence matters most. A name on a board deck does not equal a ready successor. Many boards assume that a strong internal leader can step up. But readiness doesn't come from potential alone. It comes from repeated exposure to risk, to contradiction, to conflicting expectations—and the maturity to navigate them. Real stakes reveal themselves in breakthrough moments. Investor briefings. Board negotiations. External crises. Not rehearsed behind closed doors—but tested in the open. Authority isn't proven in simulation. It's forged in the marketplace. On the global stage. In lived, not scripted, experience. The CEO role isn't granted. It's demonstrated in advance. The real handoff is already underway. It happens in how the current CEO frames tradeoffs. In who they bring into key conversations. In how often they explain why a decision was made—not just what the decision was. Culture doesn't replicate by instruction. It transmits through observation. Boards should look for the signals that successors are being shaped early. Not through formal grooming, but through informal inclusion. What CEO Legacy Actually Means Most CEOs eventually ask: what will I leave behind? But legacy isn't what follows you. It's what endures without you. It's the strategic clarity that remains intact. The team that doesn't stall. The confidence that continues when your name is no longer the one in headlines. In the strongest transitions I've seen, the outgoing CEO doesn't just vacate. They clear the way. The successor doesn't wait to be told they are ready. They act like it. Because they were trusted with the work that matters. Because someone showed them the horizon early. Because the board aligned not on safety, but on strength. And when succession is handled well, no one needs to say 'You are serious people.' The successor already proves it.
Forbes
16-06-2025
- Business
- Forbes
The New Supply Chain Challenge: Making Huge Decisions In A Short Time
In this time of business uncertainty, leaders are getting more confident in their executive teams, according to the latest Leadership Confidence Index from Russell Reynolds Associates. Every six months, the management consulting firm polls business leaders worldwide about their leadership teams, combining the results into an index on a 100-point scale. For the first half of 2025, that index is 62.6, up 1.4 points since the end of 2024—the largest rise in leadership confidence since Russell Reynolds started this measurement in 2021. The index measures confidence in executive teams in terms of their capability, behavior and issue management. And for the first half of 2025, behavior has been a key factor. Nearly three in five leaders reported that their executive leadership team effectively works together as a team and that they effectively embrace change. More than half—56% say that the team models the right cultures and behaviors. And if there was any time for team members to pull together, it's now. About 83% of leaders have downgraded their view of the near-term economic outlook since the beginning of this year, and Russell Reynolds said these results show that amid economic uncertainty, leadership teams are becoming more unified. Across the board, leaders are the most confident in their executives' capabilities. Well over half—58%—say they believe these leaders have what it takes to lead the organization successfully. Nearly three-quarters say that the leaders have a firm grasp of the competitive dynamics in their industry, while 63% say they have access to good information to help with decision-making. The true tests of leadership during this period are likely just getting started, however. Many new tariffs are not yet solidified or enforced, and larger economic impacts widely predicted by experts haven't filtered into fiscal figures. It remains to be seen if business leaders will continue to support each other as they adapt to more change and the climate becomes increasingly challenging. One of the biggest challenges is President Donald Trump's unpredictable and sudden changes to trade and import policies. I talked to Franck Lheureux, CEO of procurement management software company Ivalua, about what he sees from the front lines of companies dealing with these issues. An excerpt from our conversation is later in this newsletter. People shop at Lincoln Market in Brooklyn, N.Y. Though experts have been warning for months that Trump's tariffs could undo economic progress to reverse inflation, that hasn't yet come through in the numbers. May's consumer price index showed price increases of 2.4% compared to a year ago, and an increase of just 0.1% since April. It was lower than economists' estimates, which were 2.5% year-over-year inflation, and 0.2% month-over-month. The Federal Reserve Board of Governors meets later this week, and although both Trump and Vice President JD Vance have essentially demanded that the board use this information to lower interest rates, the vast majority of interest rate traders—99.8%, according to CME FedWatch—predict they will not budge. Forbes senior contributor Christian Weller writes that while the CPI report looks positive, there are troubling areas that could foreshadow larger problems in the coming months. Prescription drugs are seeing higher price increases—up 0.6% in May alone, after a 0.4% increase in April. Prices ticking upward could show the beginning of a trend of these items getting much more expensive, especially since many prescription drugs are imported. Prices for hospital services have increased 3.9% over the last 12 months, and that may keep going up as Republican lawmakers cut federal funds that many hospitals rely on. Insurance rates are also way up, Weller writes, with motor vehicle insurance up 7% in the last 12 months. The tariffs are looming on the horizon—though Trump announced a deal with China last week that imposes a 55% tariff on Chinese imports, as well as relaxes controls on rare earth minerals and magnets crucial to developing advanced technology. On Thursday night, Trump said his administration was negotiating tariffs with 15 countries, and would be sending 'take it or leave it' letters to all trading partners in the coming weeks with the U.S.'s final tariff offer. A new Quinnipiac University poll last week showed 57% of registered voters disapprove of the way Trump handles trade, writes Forbes senior contributor Stuart Anderson. Trump's final tariff declaration caused stock prices to drop on Friday morning, and they fell more sharply as the day continued as Israel attacked Iran, escalating geopolitical tensions in the Middle East. The nations continued strikes with no signs of a truce in the near future. However, the major indexes opened up Monday morning, with the Nasdaq, Dow Jones Industrial Average and S&P 500 each gaining more than 1% by late morning. Walmart Walmart has a new AI-powered shopping assistant that will be able to do much more than just help customers select products that fit their needs. Forbes contributor Ron Schmelzer writes that Sparky—the assistant personified by Walmart's trademark yellow smiley face—now can do what many AI-powered shopping assistants do: suggest products, summarize reviews and answer a few questions—like which sports teams are playing. In coming months, Walmart plans to add features that go several steps beyond basic: reordering and scheduling services, a feature that can take a photo or video and give a sort of 'how-to' guide for tasks—like 'How do I fix this dripping faucet?' or 'How can I make lunch out of these products?' It will essentially become a shopping agent, Schmelzer writes, turning shopping 'from a search problem into a service experience.' If you're planning a cookout, it will present you with grills, check the weather, suggest menus and schedule for the items to be delivered. It makes sense for Walmart to add these capabilities. According to the retailer's surveys, nearly seven in 10 customers say quick solutions are the top reason they'd use AI in retail, and 27% now trust AI for shopping advice. Nearly half would be OK with AI reordering household staples, but the same amount said they're unlikely to ever fully hand over control of their shopping to a bot. Sparky combines these two desires: Automatic reordering of commonly used items, advice on others. And with such a wealth of advice and information available on Walmart's app, it may also inspire people to begin their shopping on Walmart's app instead of bypassing it for recommendations provided by an AI-powered search engine. President Donald Trump speaks during a visit to U.S. Steel in West Mifflin, Pennsylvania last month. Japan's Nippon Steel is buying U.S. Steel after all, but in a uniquely structured deal that gives the White House outsized control over what the company does—and which may become a template for future deals involving foreign investors. On Friday, Trump signed an executive order approving the $14.9 billion deal after the companies signed a national security agreement with the U.S. government. The agreement gives the U.S. government a 'golden share' in the company. It hadn't been fully disclosed as of Monday morning, but Commerce Secretary Howard Lutnick revealed in social media posts over the weekend the 'golden share' will give the White House the ability to insert itself into the company's dealings, the AP reported. Under these terms, the president must give consent to relocate U.S. Steel's Pittsburgh headquarters, change the company's name, transfer production or jobs outside of the U.S., close factories, reincorporate the business overseas, or reduce or delay $14 billion in planned investments. The president can also name one of the corporate board's independent directors, and has veto power over the other two. The New York Times reports that this deal is a new use of the 'golden share' principle of U.S. government interest in private companies. In the past, the government has taken 'golden shares' of companies under financial duress, or when they play a significant role in the U.S. economy, but very sparingly. During the Great Recession, the government acquired a large stake in General Motors as part of a bailout—which it completely sold off by 2013—and took control of mortgage giants Fannie Mae and Freddie Mac. Stephen Heifetz, a partner at the law firm Wilson Sonsini Goodrich & Rosati, told the Times this deal could change the way foreign companies look at deal-making in the U.S. 'It is going to cause people to spend more time thinking about the obstacles to investing in the U.S. market,' he told the newspaper. Ivalua CEO Franck Lheureux Procurement has been in the spotlight since the height of the Covid-19 pandemic, when supply chain stresses worldwide made it difficult for companies to obtain the goods they needed at the price and on the schedule they demanded. President Trump's tariffs and ensuing trade wars have quickly made procurement much more challenging. I spoke with Franck Lheureux, CEO of procurement management software provider Ivalua, about what they see from the front lines on how companies are navigating the unpredictable changes in trade policy. Lheureux became CEO of Ivalua in January, after seven years with the company as a general manager and chief revenue officer, so he's been dealing with supply chain upheaval for years. This conversation has been edited for length, clarity and continuity. What is Ivalua's strategy right now? Lheureux: It's not just about the tariffs or the new world that is being rearchitected on a daily basis. Or challenges of supply chain, inflation or exchange rates. Any spend decision has a positive capacity to react for any companies. Who's at the core? Procurement people. When they make decisions to source here, to relocate production facilities from one of their suppliers, to change contracts, to be agile in the way they're going to reshape their supply chain upstream and downstream, they become a core of any company decision. What do we do with that? We have to empower our customers to be agile and way more reactive. You cannot react without data that tells you where you stand and [where] from a scenario planning standpoint you should go. It happened during Covid, which was the first place under my time in procurement where procurement and supply chain [were] totally put under chaos: What to do? How to replenish my goods? Where to buy services? What to do when people are locked down, working from home? What can I supply? How [can I] serve my customers' demand and orders? We found through technology business continuity, business resilience, new ways to adapt, adopting changing practices like connecting customers and quality audits from a distance. Things people didn't realize [were] doable, but are. Tracking by the hour where my goods are, from a longshore shipment from a China hub, or waiting in Los Angeles. We could, by the minute, determine where supply chains are going to be broken, where is your inventory and when is the delivery and lead time? Those were largely unexplored facets of procurement and supply chain. Technology has helped to reinvent, and through that we build the set for the company's resilience. And then comes the gen AI journey, that is also meant to be the next frontier of helping humans to perform better decisions. Finding ways to run your business that we never thought of. Benefiting from machine learning capabilities, and bringing efficiencies into the way we used to run the business. This is the next frontier for Ivalua and the next frontier for the business we serve. From where you sit—both as CEO now and as the chief revenue officer previously—what are some of the bigger challenges you've seen that companies working with Ivalua are facing? It's an echo to the tariff wars. A lot of companies we're dealing with don't have a true understanding of their upstream supply chain, meaning [they have] varying dependencies. They are in a contract with their [Tier One] supplier. It's easy to maneuver. But the supplier of a supplier? Or the supplier of a supplier of a supplier? Where are they located? Will the tariff serve the entire supplier chain? This is this gray zone area that most companies don't monitor well or don't have access to. A 360-degree view across your entire upstream supply chain or supplier network is a critical capability. Second, [they need to have an] understanding of the critical components of their bill of materials, of what makes the true net cost of what you purchase, in order to anticipate, scenario plan the tariff impact, the inflation impact, the shortages. Third, what is your agility to substitute suppliers? One is falling apart, or one is receiving too big of a tariff impact. Can I substitute for a short or long term from an offshore to a nearshore eventually? These are the kind of considerations that organizations, to prevent disruption and bring resiliency, have to face. I'm not talking about regulation and risk management. Risk is not just operational risk. What are my long-term exposures because of my supplier ecosystem? How should I rethink where my plants are based? It's not just about relocating your plants. It's about [whether] your near-shore supplier ecosystem will follow your plant relocation. This is ecosystem thinking in a very short term, because those decisions are being forced to be taken in a very short term. They used to be taken care of three to five years on the horizon. Now it's a matter of orders to force those decisions. Never think you're alone. Every decision of staffing a new plant, a new warehouse or [distribution center] is not just focusing on your own constraints or cashflow. It's focusing on the right talents and suppliers. Will my dependency on offshoring Chinese or European offset the benefits of my relocation decision eventually? Thinking in the ecosystem with a very short term window to perform decisions is where I sense our customers are struggling the most. What advice would you give to other CEOs? Stand strong to your values. This era is full of anxiety, and can be highly stressful for our customers, for us as CEOs driving companies, for our employees. So keep calm and stand strong and committed to your own values. Better times will come. We are as CEOs, a resource to make the world a greater place to be. Use that power wisely. Send us C-suite transition news at forbescsuite@ Business success starts at the top, where you as a leader define your 'high concepts': purpose, uniqueness, values and culture. Here are examples of how to take those deceptively simple concepts and translate them into what sets your business apart. If your growth is slowing down or stopping and you can't figure out why, consider asking ChatGPT for advice. Here are five prompts for the chatbot to help you identify your bottlenecks and obstacles—and that can help you find ways for your company to advance and improve. Last week, the 2025 Forbes Global 2000 ranked the world's top companies based on their revenue, profit, assets and market value, equally weighted. Which company was No. 1? A. Berkshire Hathaway B. Amazon C. JPMorganChase D. Saudi Aramco See if you got it right here.
Fast Company
04-06-2025
- Business
- Fast Company
The most underrated change agent in your company? Your middle manager
When organizations face disruption, whether it's a corporate restructuring, the sunsetting of a product line, or a shift in return-to-office policies, executive teams often turn to internal communications professionals to guide the messaging and navigate change. However, there's a missing link in this equation: the middle manager. As an employee communications cloud platform, we at Staffbase are always looking at what (and who) is impacting the effectiveness of those communications most. Our recently released communication impact study found that direct managers are the most trusted source of information for U.S. employees. Fifty-five percent of respondents reported that their immediate supervisor is their preferred communication channel, and 56% said they place a 'great deal' of trust in them. Despite that trust, there's a glaring disconnect: Non-desk workers, those on the frontlines in healthcare, manufacturing, transportation, logistics, and retail, say they are consistently less well-informed than their desk-based colleagues. Simply put, companies can't afford for frontline workers to miss out on their communications efforts. Internal comms teams can set the strategy together with executive leadership, but they must put the effort into fostering the pipeline that supports middle managers who bring these communications to life. The current state of the world is leading many organizations to lay off middle managers, but that's a grave error, severing one of the most vital communications lifelines between upper management and their workforce. Why internal comms can't go it alone The pandemic, ongoing economic volatility, and evolving employee expectations have fundamentally reshaped how companies communicate. In many cases, internal comms teams have shrunk, been centralized to one part of the organization, and generally had their reach stretched thin. The best communications in the world mean little if they aren't reinforced and humanized by the people employees interact with daily. Our research revealed that only 10% of non-desk workers are very satisfied with the internal communication at their companies. Furthermore, nearly 60% of employees who are considering quitting cite poor communication as a significant contributing factor. The implications are clear: If companies want to improve retention, reinforce change, and build trust, they must focus on improving both the quality and consistency of communications with all levels of employees. Since middle managers are one of the most trusted sources of information, organizations need to work toward empowering them to become stronger communicators who can provide that consistency and quality across the business. Closing the information gap between desk and non-desk workers One of the most striking findings in our study was the communication divide between desk-based and non-desk employees. While 67% of desk-based workers say their managers keep them well-informed, that number drops to 48% for frontline workers. This gap is about both access and equity. Frontline employees are often the most critical to day-to-day operations, yet they're also the least likely to receive timely or high-quality updates. Many don't use company email or sit at a desk, meaning they rely heavily on their direct managers to pass down critical information. When that chain breaks, confusion, misinformation, and disengagement follow. Creating dedicated communication processes can better equip managers with the knowledge and ability to deliver key information to those who struggle to receive it most. Tech can be a huge boon in this process. While there's no all-encompassing app that can replace employees' trust in their managers, utilizing an employee app as a main communication channel can help improve frontline access to information. These tools must be paired with training that ensures managers are both enabled and motivated to properly pair these communications channels with necessary in-person communications. Through posts, comments, and real-life conversations, managers will be better equipped to provide the communications support their various employees need. Coaching managers to lead communication, not just tasks We often assume that people management is synonymous with people leadership. However, just because someone oversees a team, doesn't mean they've been trained to navigate tough conversations, deliver clear change updates, or answer sensitive employee questions. Managers can subsequently become bottlenecks, delivering incomplete or inconsistent messages—or worse, avoiding communication altogether. That's where communications coaching comes in. High-performing organizations are starting to view manager communication as a core competency, rather than a desirable trait. They're investing in tools and training that help managers distill key messages, understand the 'why' behind changes, and create space for team dialogue. They're offering templates, talking points, and even in-the-moment coaching for big moments of transformation. The payoff is significant. When it comes to leadership communication, 91% of employees who say that the vision and strategy are 'very clear' also report being very or somewhat happy in their jobs. When managers communicate well, employees are more likely to feel connected to the company's mission, confident about their future, and have clear expectations. What does this look like in practice? Leading organizations are rethinking internal communication as a shared responsibility. They're not asking comms teams to carry the burden alone, they're making it a joint effort between leaders, HR, and middle managers. First, turn to training. Create or bring on formal communications training for all middle managers and leaders of the organization. This will help create a standard for the entire company and unify the skills for every voice across the business. Second, conduct an audit of your current systems and protocols to identify what tools are working well, which audiences are being underserved and what messages have resonated well to date. Third, create a set process for announcements, change and crisis communications. A team with representatives from the aforementioned core groups can work together to create toolkits and talking points that will help translating key messages much simpler and more direct for managers. Leadership may question the investment of time and money into the above efforts, so employee communications teams should work to measure success along the way. Develop a framework that measures the ROI of your communication efforts by tracking metrics like employee satisfaction, behavioral shifts, and impact on critical business goals. Doing so can help shine a light on the bottom line value of these efforts and create further buy-in across the entire team. In moments of uncertainty, employees don't need perfect messaging. They need consistency and transparency, and more than anything, they need to hear it from someone they trust.
