Corporate leadership is undergoing a significant generational shift. Baby Boomers have largely exited senior roles, leaving Generation X firmly in control of today’s C-suite. This cohort, known for its pragmatic and independent leadership style, now dominates executive positions across New Zealand and Australia. 

However, this dominance won’t last forever. Millennials, who are tech-savvy, purpose-driven, and collaborative, are poised to step into these roles within the next decade. Millennials now make up around 75% of the global workforce, and Glassdoor reports they have become the majority in managerial roles in the U.S. 

The Succession Planning Imperative 

Despite this looming transition, succession planning remains a critical gap for many organisations. Research shows that over half of businesses in New Zealand lack a formal succession plan, exposing them to operational and financial risks. Radio New Zealand have reported that poor planning could cost Kiwi businesses up to $3.5 trillion in wealth over the next two decades, particularly among family-owned enterprises. 

Fortunately, boards and executives are increasingly recognising this risk. A recent survey found that CEO and C-suite succession planning is now among directors’ top priorities, with some businesses surpassing even AI adoption and cybersecurity concerns. 

Bridging the Generational Gap 

The challenge is not just replacing leaders but also preparing for a generational shift in leadership styles and expectations. Gen X leaders value efficiency and independence, while millennials prioritise flexibility, feedback, and meaningful work. Succession strategies must account for these differences to ensure smooth transitions and maintain organisational stability. 

Forward-thinking organisations are already mapping future board compositions, implementing mentorship programs, and creating leadership pipelines that reflect diversity of thought and generational perspectives. 

Key Takeaways for Businesses 

• Assess Current Leadership: Understand representation in your C-suite and senior roles. 
• Plan for the next Generation: Develop strategies to prepare millennials for executive positions – and generations beyond this. 
• Create Dynamic Succession Plans: Move beyond static models, succession planning should be proactive and continuous. Fractional working can also support this.
• Embrace Diversity of Thought: Future boards will need varied perspectives to navigate complex challenges. 

Generational change is here. Organisations that act now to build robust succession strategies will not only secure leadership continuity but also position themselves for long-term success.

If you would like support with succession planning for your business, get in touch with Heath Brown today.