Companies Rise or Fall on How Well They Renew Their Leaders Leadership renewal is now a core governance imperative. Volatility, disruption, and scrutiny mean yesterday’s leaders may not suit tomorrow’s risks. Boards must bake refreshment and succession into routine practice, not wait for crises. Those who delay lose strategic fit, innovation, and resilience; proactive boards gain readiness for the next decade.

Leadership renewal has become one of the defining governance issues of this decade.

In a climate defined by geopolitical volatility, digital disruption, and heightened stakeholder scrutiny, there is growing recognition.

Leaders who got companies to this point may not be the leaders who will take them forward into an uncertain future.

The pace and unpredictability of today’s operating environment demand leadership teams that can adapt and refresh when required.

Boards can no longer rely solely on legacy leadership capability to steer through volatility.

In response, boards are reassessing long-standing leadership structures.

They are asking tougher questions about whether their organisations are properly equipped for the complexities of the next 10 years.

Part of that reflection includes acknowledging how easily leadership blind spots can form when capability does not evolve at the pace of the landscape around it.

Boards that delay renewal risk falling out of sync with emerging risks and new technologies.

This reinforces the finding from the Heidrick & Struggles 2025 Board Monitor survey. It shows that 84% of directors globally have increased investment in board refreshment.

And across our leadership engagements, we see this shift gradually reflected in practice.

Organisations that treat renewal and succession as ordinary disciplines are better equipped.

They build it into the regular business of governance rather than triggering actions by retirement cycles or urgent vacancies. This approach helps sustain performance through transitions and preserve long-term value.

Where boards are falling behind

Data also shows that many boards have not yet embedded this discipline. Only 47% of board chairmen and directors believe their refreshment practices are preparing them well for the future.

Even more telling, only 28% specifically see refreshment as a strategic priority and act accordingly.

The majority, 52%, accept that renewal is important but continue to let other board agenda items overshadow this essential work.

This gap creates a very real structural risk. When boards postpone renewal or depend too heavily on long-tenured perspectives, they risk retaining directors whose capabilities no longer align with the organisation’s strategic needs.

This can weaken oversight, constrain innovation, limit effective challenge, and slow response to both emerging threats and opportunities.

In contrast, a refreshed board can strengthen the working relationship between the CEO and directors.

When the board brings a wider mix of perspectives, the executive team benefits from a challenge that is constructive rather than confrontational. They receive support that is grounded in real strategic insight.

That balance becomes especially important for organisations navigating complex markets while trying to make meaningful progress on long-term transformation.

How South Africa is faring

South Africa reflects similar dynamics. According to the 2025 Board Monitor South Africa Snapshot, 50% of Johannesburg Securities Exchange Top 40 companies made new board appointments in 2024. This signals a clear appetite for fresh perspectives.

But the composition of these new appointments revealed concerning restraints. Individuals with first-time public board experience dropped from 24% in 2023 to just 10% in 2024.

Meanwhile, the average age of new appointees rose from 57 years to 60 years.

Renewal is happening, but often without the breadth of experience or generational diversity that would boost transformation and test entrenched assumptions. 

Unplanned changes in board composition present another area of vulnerability.

Unexpected departures, whether caused by personal circumstances, health issues, or other unforeseen events, can disrupt board continuity if not anticipated.

This is where ongoing refreshment planning becomes essential. Boards that regularly assess capability gaps and maintain a view of potential future directors are far better positioned to manage these shifts smoothly.

So, as expectations on governance continue to rise, organisations that weave renewal into the flow of board work will be the ones best positioned to manage disruption. They adapt to shifting conditions and grow value.

Because in a world where uncertainty is constant, leadership readiness has become one of the few controllable advantages.

Thabiso Legoete and Veronique Parkin, Partners at Heidrick & Struggles South Africa and Members of the Global CEO & Board of Directors Practice.