Recognising leadership potential is an important part of succession planning. Most CEOs will be able to identify someone who could take on greater responsibility: an executive whose judgement they trust, a director who contributes beyond their own remit or a colleague who brings people with them through difficult change.
The more difficult question is whether that person is getting the experience and support they need to become a credible future Chief Executive.
A conversation about ambition is a useful starting point. Meaningful preparation requires a clearer understanding of where someone needs to develop, which responsibilities they have yet to experience and how the organisation will help them bridge those gaps.
Current CEOs have an important role to play. They understand the relationship with the chair, the responsibility for decisions affecting the whole organisation and the judgement required when there is no straightforward answer. Sharing that experience can make a significant difference to how future leaders prepare.
Moving Beyond Functional Expertise
A strong director may have built their reputation through deep expertise. They understand their service, lead their team effectively and know what good performance looks like. As their responsibilities broaden, they need to apply that judgement to issues beyond their own specialism.
Consider a decision about investment in existing homes. A future CEO needs to understand the financial implications, the condition of the homes and the organisation’s capacity to deliver the work. They also need to consider residents’ experiences, how decisions will be communicated and the evidence the board needs to scrutinise the approach.
That requires the ability to assess advice from different specialists, work through competing priorities and take responsibility for the wider consequences of a decision.
Attending executive meetings provides useful exposure. Leading a recommendation through those discussions, responding to challenge and remaining accountable for the outcome offers a different level of experience.
The same applies to leadership. Someone may lead their own team well but have had fewer opportunities to influence colleagues outside their reporting line. They may understand the strategy without having helped decide which activities the organisation should stop or where resources should be redirected.
These are useful areas to explore when assessing readiness for a broader role.
Having an Honest Conversation
Telling someone they have the potential to become a CEO can be encouraging. Its value depends on what follows.
An honest development conversation should cover what the individual already brings, where their experience is narrower and the opportunities that would help them progress. It should also establish whether becoming a CEO is something they want.
Some leaders will have a clear ambition to lead an organisation. Others may want a broader executive role or more time to understand what becoming a Chief Executive would mean for them. Development should reflect those aspirations.
There is also a need to look beyond the most visible people. Confidence, familiarity and regular access to senior colleagues can influence who is recognised as having potential. Other colleagues may demonstrate sound judgement and leadership through work that receives less attention.
A credible approach to succession should include consideration of who receives development opportunities, how those decisions are made and whether talent elsewhere in the organisation is being overlooked.
Creating the Right Development Opportunities
The most useful experience will depend on the individual.
For one person, it may mean leading a project across several functions and bringing a recommendation to the executive team. For another, it could involve greater exposure to the board, closer involvement in financial planning or responsibility for translating customer insight into an organisational decision.
The purpose needs to be clear. The individual should understand what they are expected to learn, where they can seek support and how progress will be reviewed. Giving someone additional work without that clarity risks increasing their workload without addressing their development needs.
Reflection matters too. A discussion after a difficult meeting can help someone understand why their recommendation attracted challenge, where their evidence was weaker or how they responded under pressure.
An experienced CEO can explain the concerns behind a board member’s question or why an apparently straightforward proposal raised wider issues about risk, culture or organisational capacity. This helps future leaders understand the thinking behind decisions, including the uncertainty and challenge that may not be visible in the final outcome.
The Value of Mentoring and External Perspective
Mentoring gives future leaders space to explore those aspects of the role with someone who has experienced them.
A useful mentoring relationship allows for honest discussion about judgement, confidence and readiness. It can help an individual work through a difficult situation, consider another perspective and recognise where they need further experience or support.
An external mentor can be particularly valuable when someone wants to discuss something they find difficult to raise within their own organisation. That might include uncertainty about their ambitions, a challenging working relationship or questions about how their leadership style needs to develop.
Learning alongside peers from other housing organisations offers another perspective. It exposes people to different approaches and gives them an opportunity to question practices they may have accepted because they are familiar.
Organisations need to make room for this development. Protected time, access to feedback and support to apply learning are all part of helping someone prepare for greater responsibility.
The Elevate Programme
This is the thinking behind Neemar’s Elevate Programme. It brings together CEO mentoring, expert-led learning and collaborative work on real housing challenges for senior leaders preparing for executive or Chief Executive responsibility.
The six-month programme includes monthly sessions exploring issues faced by Chief Executives and executive teams. Participants are paired with established CEOs who share their experience and provide space to discuss the challenges and responsibilities of senior leadership.
The aim is to help participants broaden their understanding, test their thinking and identify where they need to develop further, supported by experienced leaders and a network of peers.
If you are reviewing succession or have someone in mind for a future CEO role, speak to the Neemar team about their development needs and whether Elevate 2027 could form part of that preparation.
