Leaving “hidden talent” on the table: Succession planning shortfalls
I’ve been following a few high-profile CEO succession sagas recently, from Disney’s search (again) for Bob Iger’s replacement to The Boeing Company’s decision to onboard outsider Kelly Ortberg. Also of interest, the ongoing CEO shuffle at Starbucks (like Boeing, a company in my own backyard) and the intriguing tale of Estée Lauder’s CEO swap.
C-Suite backfills (rightly so) get a lot of time and attention. For most other corporate key roles, not so much.
Recent studies highlight the challenge. While companies recognize the importance of succession planning, many struggle to execute it effectively. Only 14% of executives interviewed in one study said that their organization does a good job at succession planning (Deloitte).
Sub-optimal succession planning isn’t just a missed business opportunity—it’s a setback for the "hidden talent" in a company’s ranks.
What is hidden talent?
Think of them as any high-performing, high-potential employee who, due to a range of circumstances, biases or structural barriers, doesn’t make it onto the succession planning radar.
As one of my clients aptly put it, “We can all think of great employees who, for one reason or another, are simply overlooked.”
Let’s explore how this valuable asset gets left on the table and what companies can do about it.
Typical succession planning often keeps hidden talent, well… hidden
Enter the 9-Box, an exercise widely used by companies for succession planning. Its structure the process can inadvertently lead to overlooked talent. Here are a few examples of how this happens:
Just-in-time mindset: For anything but the company’s most senior roles, the succession process is too often a perfunctory exercise. Without the right level of organizational emphasis, executives and managers might approach succession planning as a check-the-box HR task rather than a strategic priority. This mindset quickly leads to subjective, last-minute decision-making that can favor visibility over merit. This “just-in-time” approach to succession planning leaves little room for identifying alternative (aka hidden) candidates for the 9-box.
Limited perspective: Managers tasked with identifying successors are often too distanced from lower-level teams to fully understand individual contributions, strengths and aspirations. They rely on a year or two of performance ratings combined with secondhand reports or anecdotal evidence. Clearly, this paucity of evidence doesn’t provide a full view of an employee’s capabilities, which can easily lead to hidden talent.
Bias: Finally, succession decisions too often rest on comfort and familiarity rather than objective criteria, such as role descriptions that include competencies alongside skills and other qualifications. Hidden talent sometimes doesn’t fit the traditional career mold (or “fit",” as is often said), becoming subject to biases that can skew the rating and nomination processes. Biases like proximity (favoring those who are close to decision-makers), similarity (favoring candidates with similar backgrounds), and recency (focusing on recent successes or failures) typically play a role in keeping hidden talent off the succession plan. Plus, is any professional attribute more subject to bias than potential, an essential requirement to make it on the succession plan?
Strategies to move hidden talent into the succession plan
Plenty of companies with genuine and constructive intentions have encouraged their leaders to think creatively when selecting their successors. Although such directives can be somewhat effective, the following actions are more likely to produce sustainable outcomes.
Identify hidden talent barriers
In some organizations, hidden talent shows up in pockets that are visible in workforce data, especially when examining demographics by career level. Often, if we look at the composition of employees at junior career levels, there’s often significant diversity in terms of gender and race/ethnicity. However, as we move up through the career ladder, diversity often diminishes—sometimes gradually, but other times there’s a noticeable drop-off at a particular level.
I encourage my clients to investigate these points of attrition, as they can reveal where talent becomes hidden or "stuck" or even exits the organization. Companies should ask, what’s happening at this stage that is preventing certain segments of our talent from progressing into more senior, leadership roles and opportunities? Root causes are often quite straightforward and easily remedied, such as poorly designed or documented talent management processes or lack of manager training.
2. Adopt a holistic, evidence-based approach
Expecting leaders to make optimal succession plan nominations without equipping them with the right information is unrealistic; much more is needed than just the latest performance rating. Additional insights are essential: skills, experiences, competencies and career aspirations.
Engaging a broad range of stakeholders who work closely with the individual—such as peers, direct reports, and cross-functional partners—provides a fuller picture of strengths, development areas, and leadership qualities that might not be captured in a performance rating or review alone.
Yes, this is definitely more work for everyone involved in the succession planning process. But it will ensure a comprehensive platform to make decisions from and help mitigate barriers and biases.
3. Anticipate and prepare for business changes
For succession planning to be truly impactful, it must shift from a reactive to forward looking. Typically, the considerations centers on today’s business needs and role descriptions.
As business environments evolve—driven by AI, hybrid work models, and other innovations—the requirements for key roles are likely to change significantly. Best-practice succession planning looks beyond today’s needs, projecting how the essential skills and experiences for each role will shift over time. By doing so, companies can prepare talent to meet tomorrow’s demands, creating development plans that align with future realities.
This proactive approach not only builds a more adaptable leadership pipeline but may also introduce new, alternative candidates into the pipeline who will bring unique perspectives and experiences that are well suited to the evolving leadership landscape.
4. Empower HR to be advocates
HR has the potential to be a powerful advocate for uncovering and advancing hidden talent within succession planning. When HR business partners take on a dynamic role—asking thoughtful questions, challenging assumptions, and holding leaders accountable—they can bring much-needed balance and depth to succession discussions.
Unfortunately, in many organizations, HR business partners may not feel fully equipped to take on this role, particularly when dealing with very senior leaders, even when potential biases or oversight are evident. With the right tools, HR can confidently advocate for high-potential employees who might otherwise be overlooked. This could be as simple as ensuring HR business partners who are involved in the succession planning process are coached with talking points to effectively guide nomination conversations.
5. Stack the pipeline
When I advise clients on building diversity at senior career levels, I often encourage them to “stack the succession pipeline” with hidden talent—which by nature often draws deeply from underrepresented groups.
When I share this strategy, it’s sometimes met with a palpable sense of hesitation. There seems to be a common misconception that adding any additional talent to the pipeline will displace the talent already slated in succession plans.
The reality? Nothing could be further from the truth. Stacking the pipeline doesn’t replace anyone; it complements the current slate.
How often do we see a corporate succession plan with a name in every box—let alone with alternates lined up for key roles? In my experience, not often. Instead, companies have glaring gaps in their succession plans. Uncovering hidden talent provides additional nominations for the succession plan. Perhaps these individuals won’t be in the “Ready Now” slot, but getting them on the docket for further development and consideration will only strengthen the pipeline for later.
6. Double down on development
Succession planning isn’t just about who might fill a role—it’s about preparing them to succeed once they do. Mentorships, leadership training, and cross-functional gig assignments can all give emerging leaders the experience needed for more significant roles. This structured approach allows hidden talent to gain visibility and develop the critical skills needed for leadership success.
Yet. how often does a name get penciled into the “Ready in 1-2 Years” and that’s the end of the exercise? The candidate may not even know they are in the succession plan, let alone get the guidance and opportunities they need to advance to the next pipeline stage. This outcome can be particularly deleterious for that hidden talent, who may not be front and center to begin with for development opportunities.
Equipping managers to execute on the succession plan is critical. This means ensuring that managers have the skills to provide enhanced professional and career coaching to emerging leaders, creating avenues for participation in leadership training and development programs and opportunities.
Important! Track and analyze results. Monitor the succession plan regularly to ensure that employees are on track with the development opportunities they need to advance in the pipeline. There are several useful metrics to measure the success of organizational succession planning efforts.
7. Position your leadership teams for success
Take the time and resources to thoughtfully communicate how the succession planning process works and what tools and resources are available to help managers rate their teams and make nominations. We’d all be surprised at how often this step is missed entirely, which only compounds some of the challenges I’ve outlined here.
For some companies, evolving to a best-practice succession planning model may require significant change management. That might include optimizing the process itself to better preparing managers to engage with the process. Highlighting the possibility of hidden organizational talent and their potential to fill the succession pipeline should certainly be one of the topics addressed.
The call to action and looking ahead
As we prepare for 2025, I encourage companies to take a close look at their succession planning process and the resulting outcomes. Most companies can easily adopt a few simple strategies to ensure their succession planning process delivers for both the company and emerging leadership talent—including that hidden talent.
In the meantime, stay on the lookout for emerging technologies that can play a transformative role in succession planning.
Predictive analytics, for example, can identify patterns in employee engagement, skills development, and even social dynamics within the organization, highlighting candidates who may otherwise go unnoticed. Advanced analytics can forecast future leadership needs and offer an objective lens through which to evaluate readiness for leadership roles. By using data to reduce bias and improve visibility, organizations will be even better positioned to leverage the succession planning process.