Your leadership successor

Welcome to Legacy Beyond Profits, where we explore what it really means to build a business that leaves a mark for the right reasons.

As a leader, your most enduring impact isn't found on a balance sheet – it's reflected in the next generation you empower. But how do you ensure the purpose-driven business you've built thrives after you're gone?

The key lies in cultivating successors who don't just drive performance, but who truly live the values your company stands for. It's about deliberately transferring not just skills, but the ethical heartbeat of your organization.

The five pillars of purpose-driven mentorship

The finest business leaders understand that mentoring future executives isn't merely about transferring technical knowledge or operational insights—it's about instilling the values, judgment, and vision that will guide an organization's future. Here's a structured approach for developing the next generation of purpose-aligned leadership:

1. Identifying Values Alignment

Before investing in potential successors, carefully evaluate value compatibility while embracing intellectual diversity. Look for emerging leaders who share your fundamental ethical foundations but bring fresh perspectives on implementation. The strongest succession candidates often demonstrate unwavering commitment to core principles while offering innovative approaches to applying them in evolving contexts.

2. Creating Growth Frameworks

Effective mentorship transcends occasional conversations. Develop structured systems that provide deliberate exposure to diverse aspects of the business through rotational leadership experiences. The most successful mentors create documented development plans with clear milestones, regularly scheduled reflection sessions, and intentional expansion of decision-making authority as the mentee demonstrates readiness.

3. Conscious Knowledge Transfer

Wisdom accumulated over decades doesn't transfer automatically. Deliberately share both explicit knowledge (processes, frameworks, stakeholder relationships) and tacit wisdom (judgment calls, ethical reasoning, situational adaptability). Create scenarios for mentees to observe your decision-making process, then gradually transition to having them lead while you observe and provide feedback.

4. Building Networks of Purpose

Connect your mentees with broader ecosystems of purpose-aligned leaders both within and outside your organization. Introduce them to industry associations, purpose-driven leadership networks, and trusted colleagues who share your values orientation. These expanded relationships diversify their learning sources and establish support systems that will sustain them after your direct mentorship concludes.

5. Testing Leadership Mettle

Gradually increase the complexity of ethical challenges presented to mentees. Begin with hypothetical scenarios, then progress to having them lead actual initiatives with meaningful ethical dimensions under your guidance. These experiences reveal their capacity to navigate competing priorities while maintaining commitment to purpose, preparing them for independent leadership responsibilities.

Disney's succession failure

When entertainment giant Disney announced CEO Bob Iger's succession plan in February 2020, it showcased nearly every misstep organizations should avoid when transferring leadership. After 15 highly successful years as CEO, Iger handpicked Bob Chapek as his successor while designing a structure that virtually guaranteed conflict.

The arrangement embodied three critical succession planning errors. 

First, Iger created an impossible power-sharing structure, remaining as Executive Chairman for 22 months with control over all "creative endeavors" while Chapek ostensibly ran daily operations. This arrangement undermined Chapek's authority from day one and created competing leadership centers that confused employees, partners, and shareholders about who truly led the company.

Second, Iger failed to provide meaningful mentorship despite his continued presence. Instead of gradually transferring knowledge and relationships, he maintained tight control over the aspects of the business he valued most. When the pandemic hit shortly after the transition began, Iger publicly suggested to The New York Times that he needed to "actively help" Chapek manage the crisis, further undercutting his successor's credibility.

Third, Iger demonstrated the classic inability to let go that plagues many successful CEOs. He remained deeply involved in high-profile decisions and maintained direct relationships with creative leadership, preventing Chapek from establishing his own leadership approach. This dynamic created a situation where Chapek's attempts to implement new initiatives were viewed through the lens of how they deviated from Iger's vision rather than evaluated on their own merits.

The predictable result came in November 2022 when Disney's board fired Chapek and reinstated Iger as CEO after just 33 turbulent months. Disney has now engaged former Morgan Stanley CEO James Gorman to lead a more formal, board-driven succession process for Iger's eventual replacement in 2026.

From strategy to legacy

The most enduring business legacies aren't built on products, services, or even revolutionary ideas, they're built on people who carry forward a vision with both competence and conviction. By intentionally developing the next generation of purpose-driven leaders, you ensure that what matters most to you will continue to matter long after your leadership tenure concludes.