That very scenario actually happened at Eastside Community Investments in Indianapolis, when long-time president Dennis West resigned at the same time as major senior positions were vacant or filled with new staff who had limited knowledge or experience. Already facing serious problems, within a few weeks the CDC collapsed financially. In many large organizations, it can take up to a year to replace the executive director. A succession plan will identify and prepare another staff person to maintain the relationships and momentum of the CDC in the short-term while the search for a new director commences. A succession plan should define the process and timeline for the search and recognize that a new executive might need a different set of skills than the previous one as the organization moves forward.
Succession planning is also important for boards.
A sudden lack of leadership or continuity on the board is like a ship without a rudder. Someone needs to be ready to step in when a volunteer leader leaves. For a board chair, this person is often the vice-chair. Someone also needs to be prepared to take over from the treasurer, who is responsible for the fiduciary health of the organization. There is a learning curve involved in being treasurer for a multi-faceted CDC, and an assistant treasurer is more likely to be able to step in than someone who has only been a general board member.