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🚨 Succession in Founder-Led Firms: A Crisis 🧨 Waiting to Happen?
Founder-led companies are often built on vision, grit, & relentless drive. But when it comes to succession, many boards are dangerously underprepared.
A recent article from Chief Executive Group that's also citing lessons from Fred Smith, who passed away recently at the age of 80. He founded FedEx in 1973 and spent nearly 5 decades transforming it from a bold startup idea into a $93 billion global logistics giant, before stepping down as CEO in 2022.
According to Chief Executive Group, only 1 in 3 founder-led firms have a formal succession plan. The result?
Leadership vacuums
Strategic drift
Erosion of investor confidence
Cultural disorientation
💡 The irony? These firms often outperform their peers — until succession hits
So how can boards get ahead of the curve?
🔑 3 Critical Moves:
1. Start early — Succession isn’t an event, it’s a process
2. Build trust — Founders must see the board as a partner, not a threat
3. Broaden the lens — Look beyond the C-suite for future leaders
Boards must also navigate the emotional terrain:
👤 Founders often see their company as their identity
🧭 Letting go isn’t just strategic — it’s deeply personal
As a coach, I’ve seen how proactive boards can turn succession from a risk into a strategic advantage. It’s not just about replacing a leader — it’s about preserving legacy while enabling evolution
📣 If you’re on a board or advising one, ask:
1. Do we have a succession plan that’s founder-approved?
2. Are we developing internal talent with real intent?
3. Are we ready for the “what if” — today?
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