In most FTSE 350 companies, succession planning has become a recycling exercise. Nomination Committees are selecting directors based on where they’ve been, not where the business needs to go.
The traditional CV-based approach worked in stable times. But when AI reshapes business models quarterly and climate transition demands capital reallocation, historical experience is a lagging indicator.
The data confirms we are asleep at the wheel.
According to the Heidrick & Struggles Board Monitor (Aug 2025)**, only 28% of directors are “strategic board refreshers”—viewing succession as a competitive advantage. The majority (52%) admit they treat it as a lower-priority compliance exercise. The boards that thrive in the next decade won’t ask, “Who has done this before?” They will ask, “Who can help us navigate what’s coming?”
Recent data highlights three critical blind spots:
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- Genuine AI Literacy We are past the “generic IT experience” era. The EY Responsible AI Pulse Survey (Oct 2025) found that while AI risks are rising, only 12% of C-suite leaders could correctly identify appropriate AI controls. Boards need technical literacy, not just enthusiasm.
- Climate Transition Oversight Beyond ESG box-ticking. Deloitte’s 2025 Reporting Insights reveals that while 97% of companies disclose metrics, fewer than half have an identifiable, granular transition plan. We need directors who understand capital strategy, not just compliance.
- Enterprise Cyber Resilience With the Cyber Security and Resilience Bill looming in 2026, cyber is no longer just an IT issue — it’s a solvency issue.
The 2024 FRC Code update reinforces this: governance reporting must now focus on outcomes and future strategy, not just past processes.
If your board skills matrix looks like a history lesson, you aren’t governing for the future.
What skills is your board missing for the challenges ahead?