Strategic Management Of Leadership Succession And Relevant Economic Actors

Leadership succession is a process of strategic importance in the life of every organization, as the successful transfer of management and ownership rights has a fundamental impact on long-term competitiveness, sustainability, and value creation. Succession is not a one-time event, but a complex, multi-step process shaped by organizational, human, and environmental factors.The aim of this study is to present the theoretical and practical aspects of succession, with particular emphasis on the gradual transfer of management functions and the economic challenges that arise from this. The literature distinguishes between two basic approaches: gradual models, which emphasize the step-by-step nature of succession, and life cycle theories, which link leadership change to the phases of organizational development. Handler’s “legacy dance” model describes in detail the process of role transformation between predecessor and successor. In the initial phase, the predecessor plays a dominant role, while the successor gradually increases their decision-making competence and eventually becomes a full-fledged leader. The predecessor retreats into an advisory role, facilitating the gradual transfer of knowledge and maintaining organizational stability. The success of succession is influenced by the motivation of both parties, generational differences, and differences in leadership styles and values. The personality, age, and decision- making willingness of the founder are decisive factors, while the preparedness, motivation, and leadership competencies of the successor are key. In family businesses, succession is a particularly sensitive process due to the intertwining of ownership and management functions, but the issue is also relevant in the case of non-profit and community organizations, such as associations, where a change in leadership affects institutional legitimacy and the maintenance of trust. The literature distinguishes between three main models: the rational model, which emphasizes efficiency; the vicious circle model, which attributes succession failures to organizational disruptions; and the ritual scapegoating model, which interprets leadership change as a symbolic response to crisis. According to the integrative approach of the latest research, the success of succession is influenced not only by individual and organizational factors, but also by the industry and macroeconomic environment. Overall, succession is a strategic process based on trust, gradual transfer of responsibility, and intergenerational cooperation, which is one of the keys to the long-term economic survival of organizations.