Succession planning
Succession planning is the process of identifying the critical positions within your organization and developing action plans for individuals to assume those positions. Taking a holistic view of current and future goals, this type of preparation ensures that you have the right people in the right jobs today and in the years to come.
In the long term, succession planning strengthens the overall capability of the organization by:
- Identifying critical positions and highlighting potential vacancies;
- Selecting key competencies and skills necessary for business continuity;
- Focusing development of individuals to meet future business needs.
A succession plan identifies future staffing needs and the people with the skills and potential to perform in these future roles. Professional & Organizational Development’s Succession Planning Toolkit will help guide you, though we strongly suggest you involve your assigned HR consultant and/or HR administrator in this process as well.
Toolkit
We’ve broken succession planning down into three phases with clear steps, and the Succession Planning Toolkit (PDF) comprises a series of worksheets that move you through the succession planning process. Within this document, you’ll find templates and tips for:
- Ensuring succession planning is closely tied to business strategy and goals;
- Understanding the importance of engaging executive and senior leaders in the process;
- Clearly defining the development of key talent; and
- Ensuring staff understand their role in the process and know what is expected of them.
Assessment phase
Step 1: Identify significant business challenges in the next 1–5 years.
Step 2: Identify critical positions that will be needed to support business continuity.
Step 3: Identify competencies, skills, and institutional knowledge that are critical success factors.
Evaluation phase
Step 4: Consider high potential employees.
Step 5: Select the competencies individuals will need to be successful in positions and to meet identified business challenges.
Development phase
Step 6: Capture the knowledge that individuals possess before departing the organization.
Step 7: Develop a pool of talent to step into critical positions through targeted career development strategies.
Access and print the entire Succession Planning Toolkit (PDF).
FAQs
Ongoing development is an integral part of your succession plan. Seasoned leaders within the organization can guide and support successors in their professional growth, sharing their knowledge and experiences to help them prepare for future leadership positions.
What is organizational succession planning? ›
Succession planning is the process of identifying the critical positions within your organization and developing action plans for individuals to assume those positions.
What is succession planning and career development? ›
Succession planning is an organizational-focused approach to identifying and developing individuals with the potential to fill key leadership roles. On the other hand, career planning is an employee-centered approach that identifies an individual's career goals and develops a plan to achieve them.
What are the four stages of succession planning? ›
In this article, we'll explore the four stages of succession planning and provide tips for organizations to implement each stage effectively.
- Stage 1: Identify Key Positions. ...
- Stage 2: Assess Current Talent. ...
- Stage 3: Develop Talent. ...
- Stage 4: Monitor Progress. ...
- Tips for Implementing Succession Planning. ...
- Start Early.
The primary responsibility for succession management should rest with the board of directors and the CEO with the assistance of human resources. Effective succession management is much more than simply having a slate of candidates to replace the CEO.
What is an example of a succession plan? ›
Family-owned businesses that transfer ownership from one generation to the next are prime examples of succession planning. Simply assuming a child or relative will one day take the reins does not ensure the organization's survival. The transition requires strategic conversations, training and thorough preparation.
How to do succession planning in 7 steps? ›
We outline seven steps you can take to effectively instil succession planning within your business:
- Identify key roles. ...
- Create role profiles. ...
- Identify potential successors. ...
- Assess, assess, assess. ...
- Strategic development. ...
- Implement your strategy. ...
- Analyse and evaluate.
Succession planning is also commonly known as replacement planning and often involves passing on ownership of a company to someone else.
What is the difference between HR planning and succession planning? ›
HRP is focused on ensuring that an organization has the right number and type of employees to meet its goals and objectives, while SP is focused on ensuring that an organization has the right individuals in place to fill key leadership roles. Another difference is the scope of their application.
What is the role of HR in succession planning? ›
The role of HR in succession planning is about much more than filling vacancies – it's centered on ensuring an organization can adapt and continue to thrive today and in the future.
Where succession planning is carried out on a 'top down' basis in response to organizational needs, career pathing is driven by the employee.
What are the 5 D's of succession planning? ›
Consideration of the 5 Ds alone—death, disability, divorce, disagreement, and distress—should prompt business owners to initiate the exit and succession planning process, as they represent the certainties that business ownership will eventually transition.
What is succession planning in a nutshell? ›
In a nutshell, a succession plan's purpose is to promote employees from within the organization. This helps fill the void previous leaders have left behind with qualified employees who already know your organization, which helps grow both your people and your company.
How do you explain succession planning? ›
Succession planning usually covers the most senior jobs in the organisation, identifying individuals with the potential to step into these posts as short-term or longer-term successors. Proactive development through job moves or secondments around the business can provide a ready source of future leaders.
What is the role and importance of management development and succession planning? ›
Good succession planning helps the company identify potential leaders who have the skills necessary for management roles and begin to train and prepare them. Opportunity to ensure diversity in management roles: With good planning, a company can survey their management roles and maintain good diversity.
Why should succession management be integrated with career development? ›
Through the pairing of succession planning and career pathing, you can tailor to each team member's unique preferences in order to improve overall employee engagement. Investing in your employees as people is arguably the most important responsibility of any business leader or HR professional.
Why is it important to develop a succession plan? ›
Succession planning ensures an organisation is always prepared for potential leadership transitions and has a pipeline of future leaders to maintain business continuity and eliminate risks associated with leadership transitions.
What is the role of the employee in succession planning? ›
You need your employees to be involved in your succession plan so they will be expecting changes, such as increased communication with their leaders, regular feedback sessions, and different roles and responsibilities intended to stretch their skills.
