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CEO succession refers to the process by which boards of directors ensure that their organization has the ability to sustain excellence in CEO leadership over time, with transitions from one leader to the next.CEO succession is one of key functions of a board of directors.Changing the head of an enterprise impacts company culture, board/CEO relations, and perceptions from multiple constituencies inside and outside the business. The disruption that occurs can impact performance in a positive, neutral or negative manner.here are six key outcomes of an effective CEO succession: [1]. 1  A board that is aligned on the strategy of the company and expectations of the new CEO. 2  An effective CEO in place with sufficient candidates in the pipeline (both internal and external). 3  Well-managed and minimized risks associated with CEO transition.
Taken narrowly, replacement planning for key roles is the heart of succession planning. Effective succession or talent-pool management concerns itself with building a series of feeder groups up and down the entire leadership pipeline or progression (Charan, Drotter, Noel, 2001).erck and other companies argue that a talent mindset must be part of the leadership culture for these practices to be effective. Succession planning is a process whereby an organization ensures that employees are recruited and developed to fill each key role within the company.