CEO Succession Planning and Why Great COOs Don’t Always Become Great CEOs

CEO succession planning image with a changed leaders up front

CEO succession planning is no longer a boardroom formality. Learn why great COOs may struggle in the CEO role and how leadership architecture strengthens trust, alignment, and enterprise execution.

CEO succession planning is no longer a quiet boardroom exercise reserved for some distant future. It is becoming a present-tense leadership risk.

CEO turnover remains elevated globally, with Russell Reynolds reporting 55 CEO exits across its tracked global indices in Q1 2026, slightly above the nine-year Q1 average. The firm also reported record CEO turnover in 2025, with 234 CEOs departing globally — a 16% increase year over year and 21% above the eight-year average. The Conference Board also reported that S&P 500 CEO succession announcements increased significantly in 2025, driving the projected annual rate to 13% as of October, compared with 10% in 2024.

Those numbers point to a deeper reality. Boards, founders, investors, and executive teams are under more pressure to get succession right.

And one question keeps surfacing. Why do some highly capable COOs struggle when they move into the CEO role?

The answer is rarely that they lack talent.

Many COOs are among the most disciplined, capable, operationally grounded leaders in the organization. They know how work gets done. They understand systems, process, execution, cost, delivery, logistics, service standards, and operational risk. They are often the leaders who keep the organization moving when complexity increases.

But the CEO role is not simply a bigger operations role. It is a different leadership assignment.

CEO Succession Planning Must Look Beyond Operational Excellence

Operational excellence matters. A CEO who cannot understand execution risk, operational trade-offs, or business performance will struggle. But operational excellence alone does not prepare a leader to carry the enterprise role.

The COO often leads through systems, process, discipline, and delivery.

The CEO must lead through enterprise trust.

That means aligning the board, executive team, employees, customers, investors, partners, regulators, and external stakeholders around direction, confidence, and belief in the future.

A strong COO may know how to make the organization run. A strong CEO must know how to help the organization adapt.

Those are related skills, but they are not the same.

Spencer Stuart has studied more than 1,300 CEO transitions and has written about the different “last mile” development needs executives face before stepping into the top job. Its research points to the importance of preparing potential CEOs long before the appointment is made, because different steppingstone roles create different strengths and gaps.

That matters because succession planning often overweights the visible evidence of performance.

Who gets results?

Who executes?

Who knows the business?

Who keeps the machine moving?

Those are important questions. But they are not enough.

Boards and senior leaders must also ask, “Can this person build trust beyond their functional domain?”

Can they communicate enterprise direction when the answer is not yet fully clear?

Can they hold an executive team together through disagreement?

Can they create the conditions for feedback, challenge, and course correction?

Can they lead culture without turning every decision into an operational control point?

Can they develop other leaders so the organization does not become dependent on their personal intervention?

That is where CEO succession planning becomes leadership architecture.

CEO Succession Planning and the COO-to-CEO Gap

Imagine a COO named Elena.

Elena is respected across the company. She is smart, disciplined, and deeply committed. She knows the business better than almost anyone. When something breaks, people call Elena. When a project stalls, Elena can usually see why. When a client escalation reaches the executive level, Elena knows which part of the system failed and how to fix it.

For years, the board sees her as the obvious successor.

Then the CEO announces retirement.

Elena is promoted.

At first, everyone is relieved. She is credible. She is internal. She understands the organization. She is respected by operators and middle managers.

But six months into the role, new tensions surface.

The executive team waits for her to make too many decisions.

The board wants a stronger external growth narrative.

Investors want to hear where the company is going, not only how operations are improving.

Employees want clarity about culture, trust, and what kind of leadership behavior will be expected now.

The CHRO wants her to address uneven manager behavior.

The CMO wants a more compelling market story.

The CFO wants faster decisions on strategic trade-offs.

Elena keeps solving problems the way she always has by getting closer to the work, tightening process, and clarifying execution.

But the CEO role is asking something more from her.

It is asking her to stop being the organization’s strongest operator and become the architect of the leadership system.

This is where many strong COO-to-CEO transitions become difficult.

The leader who was rewarded for knowing how everything worked now has to build the conditions where other leaders can think, decide, disagree, adapt, and follow through without everything flowing back to the top.

That is not an operational promotion. It is an enterprise leadership shift.

CEO Succession Planning Requires Leadership Architecture

Leadership architecture is the structure that helps trust, feedback, decision clarity, team agreements, risk resolution, and shared accountability become part of how people work.

It is what turns leadership from individual capability into organizational capability.

Without leadership architecture, a new CEO may inherit the title but remain trapped in the old operating pattern.

They become the final decision point.

The conflict resolver.

The strategy translator.

The accountability enforcer.

The person everyone waits for.

That creates executive drag.

It also creates risk.

When too much depends on the CEO’s judgment, memory, relationships, and intervention, the organization becomes more fragile than it appears.

This is especially important now because CEO turnover is not slowing into irrelevance. Russell Reynolds has described CEO turnover as elevated and record-setting in recent reporting, while The Conference Board has highlighted rising CEO succession activity in large public companies.

This means boards and organizations need stronger succession readiness before the transition becomes urgent.

They need to know not only who can perform today, but who can build the leadership conditions required for tomorrow.

The Manager Alignment Gap Starts at the Top

Many organizations talk about the Manager Alignment Gap as if it only lives in middle management.

But the gap often starts at the top.

The Manager Alignment Gap is the space between what senior leaders say they want and what managers are actually equipped to reinforce day to day.

Senior leaders say they want accountability.

But managers may not have clear behavioral agreements for ownership, follow-through, and correction.

Senior leaders say they want innovation.

But managers may still reward caution, certainty, and short-term output.

Senior leaders say they want feedback.

But employees may not see leaders model feedback without defensiveness.

Senior leaders say they want trust.

But teams may experience inconsistency, political behavior, or silence when difficult issues arise.

When a COO becomes CEO, this gap can become more visible.

Why?

Because operational discipline may have masked leadership misalignment.

The organization may have been able to execute because the COO was strong enough to keep the system moving. But once that COO becomes CEO, the question changes. Can the organization execute because the leadership system is healthy?

Or did execution depend too much on one leader’s operational command?

That is a very different diagnosis.

What Boards and OD Leaders Should Watch For

CEO succession planning should include more than performance history and executive presence.

Boards, CHROs, OD leaders, and succession teams should look for whether the potential CEO can create leadership conditions that scale.

Here are several signs to watch.

First, does the leader create clarity without over-controlling?

A future CEO must be able to set direction while still allowing capable leaders to own decisions.

Second, does the leader invite challenge before decisions become expensive?

If people only speak up after a strategy fails, the leadership system is not safe enough.

Third, does the leader build trust across functions, not just inside their own area?

A COO may have deep credibility with operations. A CEO must build confidence across the enterprise.

Fourth, does the leader turn values into behavior?

It is not enough to say the organization values accountability, collaboration, or innovation. The future CEO must make those values visible in meetings, handoffs, performance conversations, and strategic decisions.

Fifth, does the leader develop other leaders?

A CEO who remains central to every important decision is not building continuity. They are preserving dependency.

These are leadership architecture questions.

They help organizations see whether a successor can lead the whole system — not just run a critical function.

Why This Matters for Internal OD, HR, and Leadership Development

For internal OD, HR, learning, talent, and leadership development professionals, this is a major opportunity.

Many larger organizations already invest in executive coaching, leadership academies, succession planning, competency models, engagement surveys, and performance systems.

Yet they may still struggle to turn leadership insight into consistent behavior.

One leader receives coaching.

Another attends a program.

A high-potential employee gets promoted.

A senior executive improves self-awareness.

But the organization still sees uneven trust, inconsistent feedback, unclear decision rights, cross-functional friction, and manager-dependent culture.

That is the problem.

Leadership development remains individual. Leadership architecture makes it transferable.

This is where the TIGERS 6 Principles become useful.

Trust, Interdependence, Genuineness, Empathy, Risk Resolution, and Success are measurable behavioral conditions that either support high-performance teamwork or quietly undermine it when they are missing.

When leaders learn how to facilitate these principles into team agreements, feedback practices, onboarding conversations, decision norms, and accountability structures, work culture becomes less personality-dependent.

It becomes more intentional.

A Better Question for CEO Succession Planning

Instead of asking only, “Who is ready to become CEO?” organizations should also ask, “Who can build the conditions where others can lead well?”

That question changes the succession conversation.

It moves the focus from individual readiness to enterprise readiness.

It helps boards and leadership teams see whether a COO, CFO, CHRO, division president, founder successor, or other internal candidate can do more than perform at a high level.

Can they build trust?

Can they align the executive team?

Can they normalize feedback?

Can they clarify decision rights?

Can they develop managers?

Can they reduce dependency on themselves?

Can they make leadership behavior visible and repeatable across the organization?

That is the real succession challenge.

CEO Succession Planning Needs Structure Before the Transition

CEO succession planning cannot wait until the current CEO is ready to leave.

By then, the organization may already be reacting.

The better approach is to build leadership architecture before the transition is urgent.

That means helping senior leaders, potential successors, managers, and teams practice the behaviors that make enterprise leadership possible.

It means giving future CEOs experience not only with performance accountability, but with trust-building, feedback, risk resolution, cross-functional alignment, and culture-shaping.

It means asking whether the organization has a repeatable structure for developing leaders who can carry the mission forward without becoming the next bottleneck.

Because the best CEO successor is not always the strongest operator.

It is the leader who can build an organization that knows how to think, decide, adapt, and follow through together.

That is why CEO succession planning is not just about choosing the next person.

It is about building the leadership architecture that allows the next person — and the whole organization — to succeed.

A Practical Next Step Identifies the Manager Alignment Gap

If this issue sounds familiar, start by identifying where the Manager Alignment Gap may already be showing up in your organization.

The Manager Alignment Gap is the space between what senior leaders say they want and what managers are actually equipped to reinforce day to day.

It shows up when leaders want accountability, but managers lack clear behavior agreements. It shows up when leaders want innovation, but teams do not feel safe challenging assumptions. It shows up when leaders want feedback, but managers avoid the conversations that would prevent small issues from becoming expensive problems.

I created a complimentary Manager Alignment Gap resource to help leaders, boards, HR teams, OD professionals, and consultants spot where trust, execution, and follow-through may be breaking down.

Download the free resource here:
https://tigers6principles.com/manager-gap

CEO Succession Planning and Why Great COOs Don’t Always Become Great CEOs

Explore the TIGERS® 6 Principles

The TIGERS® 6 Principles provide a practical framework for building trust, alignment, and shared success—especially during periods of change. Explore how leaders, facilitators, and organizations use these principles to guide difficult transitions, strengthen culture, and develop teams that can thrive alongside AI.

Copyright © TIGERS® Success Series by Dianne Crampton

Dianne Crampton is the founder of the TIGERS® 6 Principles framework and a pioneer in behavior-based leadership development. For more than three decades, she has helped organizations build high-trust cultures, navigate change, and resolve workplace risk through measurable, human-centered systems. Her work bridges business, psychology, and education research, with a focus on group dynamics—equipping leaders to create clarity, accountability, and collaboration, especially during periods of disruption.