Sudden death of UnitedHealthcare's CEO puts importance of succession planning in spotlight
When tragedy struck UnitedHealthcare with the shocking and fatal shooting of its CEO on Dec. 4, it was not only a senseless loss of human life but a stark reminder of the critical importance of succession planning in organizations.
Brian Thompson was shot and killed in New York City outside a hotel in where his company was set to hold their annual investor conference. Since then, Luigi Mangione has been arrested and charged with the CEO’s murder.
While such an event is rare, the need to prepare for sudden leadership transitions is universal, said Kevin Stoddart, managing partner at KBRS, which specializes in executive recruitment. Stoddart emphasized that having a well-thought-out plan in place ensures business continuity during unexpected upheavals.
"Everyone has a role to play. Ideally, they've thought of this not in terms of a tragedy, necessarily, but in terms of an immediate change to the business," Stoddart said. "An immediate departure can happen for a variety of reasons, like a sudden change in health or something else that causes the board or CEO to take immediate action."
This preparation includes not only long-term succession plans but also what Stoddart refers to as "911, emergency" plans. These enable businesses to pivot quickly while maintaining confidence among employees and stakeholders. Without such preparation, companies risk being thrown into chaos, exacerbating an already challenging situation.
According to Stoddart, succession planning is not merely about maintaining stability but about fostering growth and resilience. He noted that routine business practices—such as covering for colleagues on vacation or during personal emergencies—offer trial runs for handling larger disruptions.
"Any responsible organization should have contemplated ‘What would we do if?’" he said. "Life happens, and changes occur. It's about ensuring the business continues as uninterrupted as possible."
While some businesses may not have a formalized, documented succession plan, informal planning is often happening, with HR having a “plan B” for essential roles, according to Shalini Rajpal, director of HR at University Canada West.
“Maybe people have not officially done succession planning, but I have seen leaders know what is going to be their plan B. Succession planning is always in the works.” she said.
Having a structured plan, however, provides stability and a clear growth path for high performers. Without it, businesses risk being caught off guard, destabilizing leadership and morale, especially in already turbulent times.
“It's pretty encouraging for people if the organizations are taking steps to make sure they pave the path for growth and career progress for the high performers.”
Still, Rajpal acknowledged that unexpected challenges, like economic downturns, could disrupt succession plans. Employers need a solid backup strategy. For businesses, adaptability is as important as planning.
“What if turn of events in the market side are not as favourable? Then, what do you do with succession planning? What do you do with the conversations you have already had with your high performers?” Rajpal asked.
When it comes to the immediate departure of a C-suite executive, there are a number of questions that come to mind, the most pressing being should their replacement be promoted from within or hired externally? The answer is dependent on a number of factors, but promoting from within can offer significant advantages, particularly during crises.
"You hear the term 'steady hand on the wheel,'" Stoddart said. "There’s an individual who’s known to and knows of the organization, and the people within it know the individual. So, there’s some confidence and trust that’s already been established."
This familiarity can minimize disruptions, allowing the business to maintain its trajectory while leadership transitions are finalized. In many cases, interim appointments—such as promoting a COO to acting CEO—allow boards to take their time in selecting a permanent leader. A prime example of this is the promotion of COO Tim Cook to CEO after Steve Jobs left Apple in 2011. Cook’s decisions as CEO have since made Apple one of the most important companies of the modern age, according to Business Insider.
However, promoting from within is not without its challenges. Biases can play a significant role in decision-making, potentially disadvantaging internal candidates. Stoddart stressed the importance of creating a level playing field where internal candidates can compete fairly with external ones.
"Bias doesn’t always mean something negative; it just means we have an opinion of a person in some way. Oftentimes, an organization will see a person in a certain function and associate them with that function, and it’s hard to eliminate that bias and see them in a different role,” he said. “HR practices should go to great lengths to try to minimize those biases. The best decisions come from minimizing biases and allowing for objective evaluations."
It is also important for employers to acknowledge if their internal candidates have the skills required for the role in question, particularly when it comes to newly created roles at the senior level, Rajpal said. Without careful planning, organizations risk putting an unprepared candidate in a critical position.
“It has to be planned out way in advance. It can't be an overnight turn of events, because when you are preparing somebody for a role, there are different strategies that you put in place, whether it's training, shadowing, or mentoring with existing leaders,” she said.
External hires may be unfamiliar, but they bring fresh perspectives, new ideas and potentially valuable expertise from outside the organization. This diversity of thought can be particularly beneficial for organizations undergoing significant change or seeking innovation. However, bringing in an outsider is not without its risks.
"Maybe they bring outside industry experience that we could learn from; that objectivity is the breath of fresh air, the blue-sky imagination that we need." Stoddart said. "However, organizational instability can amplify challenges for external hires; employees may feel disgruntled if they’ve missed out on an opportunity, and the new leader may face an uphill battle in winning their trust."
To mitigate these risks, organizations must focus on team complementarity. Stoddart cautions against “cloning”—hiring people who fit too comfortably into the existing mould.
"Too much emphasis is put on individuals; the best CEOs surround themselves with a whole host of people that can do things a whole lot better than they can,” he said. "[Cloning] might be convenient because of the commonality in thought and experience, but what results is groupthink, and it doesn’t allow for healthy challenge or debate."
Instead, he advocates for balance: combining the strengths of internal continuity with the fresh ideas and objectivity of external talent.
“The marriage of those two things is where the real sweet spot exists,” Stoddart said.
For HR and employers, making a decision like this can be daunting, but crafting a balanced and effective succession plan is an ongoing effort, which can help prepare for such situations.
For Rajpal, the first step is identifying “business critical positions or BCPs” – roles that are indispensable to operations. She also highlighted the importance of tailored training for potential successors. Whether it’s on-the-job experience, leadership courses, or external coaching, the process must align with both organizational goals and the individual’s development needs.
“Once you have identified your BCPs, then you start looking at who can possibly occupy those roles,” she said. “Maybe, in the next one year or three years or five years, you have to have coverage, starting from short-term to long-term planning.”
Stoddart offered three key insights to guide the process:
Retention is another key piece of the puzzle. High performers, who are often central to succession plans, need clear communication about their growth opportunities to stay motivated. Continuous communication about their future within the company can boost morale and keep top talent engaged, even if the timeline for promotion is uncertain.
“High performers are the ones who are going to only stick with you if they get growth and they get well recognition,” Rajpal said.
Ultimately, the right approach depends on the organization’s specific needs and circumstances.
"Organizations are at different stages of their life cycle – some are steady and established, while others are in need of a change agent. The mandate for leadership will differ accordingly,” Stoddart said. "The best organizations don’t just react to change; they plan for it; that’s how they ensure success, no matter what challenges arise."
