Business Planning: Preparing for Role Changes
October 21, 2025

Business Planning: Preparing for Role Changes

In December 2024, a tragic shooting in Manhattan took the life of Brian Thompson, the CEO of United Healthcare (UHC). This event sparked public anger toward insurance companies and highlighted the frustration with the U.S. healthcare system. UHC's stock fell sharply, from $611.03 on December 4th to $547.32 by the sixth, then plummeted further to $486.14 by the 17th and eventually reached $347.07. While many factors can affect stock prices, this tragedy led to a 43% decline. Leadership changes can raise questions about a company's future. Can these situations be avoided? How can your company stay strong through succession planning?

 

Succession Planning 101

Succession planning prepares employees for key roles, ensuring smooth transitions when leaders retire, get promoted, or leave for other reasons. The UHC example is extreme, but companies can't control everything. They can, however, plan for changes.

First, prioritize public interest. Leadership changes shouldn't disrupt service delivery. Companies should follow existing plans for such events.

In UHC's case, several issues likely eroded public trust that year. Payment processing failures, a major data breach, and ransomware incidents costing over $3 billion probably contributed to the stock decline. The CEO's murder triggered a rapid fall.

 

Taking Ownership of Succession

In January 2025, Tim Noel became UHC's new CEO. UnitedHealth Group praised his experience and commitment to improving healthcare for all. However, this also supported the previous direction that led to issues in 2024. Depending on the situation, it may be wise for the company to acknowledge past challenges and explain how new leadership will address them.

A succession plan should focus on replacing personnel while considering stakeholders like customers and employees. Communication plans can clarify reasons for change, what will change, and what will stay the same, along with timelines.

These actions show ownership of the succession and create chances for positive change.

 

Building Resiliency through Delegation

Succession planning may seem like a big shift, but it doesn't have to be. It applies to all company levels. Delegating responsibilities prepares employees for future roles. They might fill in for a supervisor or take on a different role due to unexpected changes. Successful leaders excel at delegation, which is vital for any success plan.

Delegation helps team members prepare for transitions, whether temporary or permanent. Through delegation, team members learn what others do and how to keep daily tasks running smoothly.

 

It's a Team Effort

Effective succession plans require strong communication. Communication should reach customers, employees, and investors. Tailor messages for different audiences, but keep the core message the same. It should explain the need for change, its impacts, and why the chosen successor meets current needs. UHC highlighted Tim Noel's experience but missed addressing how he would fix past issues that hurt stock prices.

When making a succession plan, show how the successor will fit into the team. Explain how they will handle challenges. Address the timeline and reassure the public about ongoing confidence in your company. This approach should apply to any significant change. Explain why the change is happening, its impact, and the long-term benefits.

 

Even Small Businesses Need a Plan

Succession planning may seem easier for large corporations, but small businesses can benefit greatly. It ensures continuity when a key person leaves. For instance, a dental office may rely on a primary dentist who built the practice. If that dentist becomes unavailable, the plan might involve promoting another partner or partnering with another practice to maintain care.

Effective communication with patients about these changes is vital. It should explain how the changes align with the dentist's goals and assure patients of continued quality care.

Another scenario involves selling the business or the owner's retirement. The goal is to keep the company viable and thriving after the transition. Like other examples, clear communication with stakeholders is key. A multi-stage plan can introduce changes, explain their reasons, and outline benefits. As changes roll out, share updates, culminating in a communication that announces a 'new era' for the business.

Feedback tools, like short surveys, can help gauge customer responses to changes. Whether considering succession, expansion, or new offerings, customer feedback is essential to meet or exceed their expectations.

 

In a Nutshell

Resiliency planning goes beyond systems; it includes adapting to changes in key personnel. It enables companies to handle public scrutiny during unforeseen departures. Succession planning is not just about replacing staff; it includes any major shift in direction or ownership. Successful change relies on open communication, taking ownership, and addressing challenges while seeking market feedback. If customers doubt your ability to support them or provide quality products, your market share will suffer. But with a strong, adaptable succession plan, your company can thrive.

 

James Knox is a resiliency expert who thrives when building meaningful solutions to daily corporate challenges. He enjoys the outdoors and loves extreme rock crawling, fishing, and hunting. As a survivalist, James has learned to prepare for life's bumps and thrive with practical solutions that support his family's self-sustaining lifestyle.

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