The Global Readiness Gap: Only 1 in 4 Companies is Prepared

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In boardrooms across the world, one question continues to unsettle leaders: ‘Are we ready for the next leadership transition?’ The findings are drawn from ‘Securing the Future’, a global white paper led by Tuesday Consulting in collaboration with member firms from the Agilium Worldwide Executive Search Group, a leading international network of executive search firms spanning 33 countries.

Agilium brings together senior leadership experts from across continents to share insights and data on how organisations are preparing for the future of leadership in an increasingly disrupted world. According to the global white paper, the answer remains concerning. While 83% of organisations claim to have formal succession plans, only 25% feel truly prepared to handle an unplanned leadership change.

This exposes a dangerous paradox at the heart of modern leadership: organisations believe they are planning for the future, yet most would still find themselves scrambling in the event of a sudden exit of an Executive leader, including the CEO.

“Succession planning has become one of those boxes organisations tick,” says Wendy Spalding, managing director at Tuesday Consulting and contributing author to the Agilium report. “But leadership continuity isn’t about process, it’s about preparedness. Succession is a living strategy and not an annual exercise.”

This gap is widening at a time when the leadership landscape is undergoing seismic change. According to the World Economic Forum’s Future of Jobs Report 2025, digital transformation, AI adoption, and workforce shifts are now the top forces reshaping organisations globally. Leaders are being called to guide teams through uncertainty, manage hybrid workforces, and embed technology and purpose into business strategy, often simultaneously.

The Agilium study found that 70% of companies would “scramble to adapt” if faced with a sudden leadership change, and 15% review their succession plans less than once every three years. This inertia leaves organisations vulnerable to strategic drift, talent loss, and reputational risk.

Key findings from the Agilium Worldwide White Paper include:
  • 83% of companies have formal succession plans, yet only 25% are ready for unplanned leadership changes.
  • 70% would “scramble to adapt” if a senior leader exited suddenly.
  • 15% review plans less than once every three years.
  • 90% cite leading through uncertainty as the most vital future leadership skill.
  • 58% are developing internal talent, but most say their pipelines aren’t deep enough.

Leadership disruption can undo years of progress in a matter of months, and when boards delay meaningful succession conversations, particularly in the C-suite,  they magnify their exposure. The reputational cost of not being ready far outweighs the time investment required to plan properly.

While 90% of executives cited the ability to ‘lead through uncertainty’ as the most critical leadership trait for the future, only 42% view technological competence as essential. This disconnect between digital transformation and leadership readiness suggests that many organisations are not equipping leaders to navigate a tech-driven, AI-powered economy.

Readiness today looks very different from five years ago, and boards need to ask not just who could step in, but who can lead through complexity, ambiguity, and change, and the future CEO must be commercially grounded, emotionally intelligent, and digitally fluent.

In South Africa, this readiness conversation carries added urgency. As businesses navigate transformation mandates, talent shortages, and economic volatility, leadership continuity has become a cornerstone of corporate stability and investor confidence. For local organisations, especially family-owned and SME businesses, succession planning cannot be treated as a compliance exercise; it must be viewed as a strategic necessity.

True preparedness is about more than identifying successors; it’s about developing them. The pipeline challenge is real. Fifty-eight percent of organisations say they are developing internal talent for future leadership roles, but most admit their pipelines are too shallow. It’s not enough to name a successor; you have to nurture one.

The path forward lies in treating succession as a living, adaptive process woven into the fabric of corporate strategy. Organisations that invest now in cultivating leadership pipelines and embracing new perspectives will not only safeguard continuity but also create a competitive advantage for the decades ahead.

“The future will not wait for those who are unprepared,” concludes Spalding.