How to Create a Succession Plan in the Workplace

All top executives will inevitably leave office, yet research has long shown that most organizations are ill-prepared to replace them. Effective succession planning requires years of thoughtful preparation, not just a few months. 

Having a well-structured succession plan in place is essential for identifying and nurturing future leaders and senior managers. This proactive approach ensures that critical business roles can be filled smoothly when needed.

What is Succession Planning?

In Succession Planning Basics, Christee Atwood defines succession planning as having the right people in the right place at the right time.

More specifically succession planning is the ongoing process of identifying successors to the critical roles of an organization and developing them so they are ready to move into those leadership roles. This plan ensures continuity in leadership and operations, allowing the business to thrive even during periods of change. 

Succession planning involves recognizing potential successors, providing them with the necessary training and experience, and preparing them for future responsibilities. The goal is to reduce disruption and maintain business stability when key positions are vacated due to retirement, resignation, or unforeseen events.

3 Main Stages of Succession Planning

Succession planning involves three main structured stages to identify, develop, and retain
potential leaders.

1. Assessment Phase

This phase is crucial because it focuses on identifying future business challenges, critical roles, and necessary skills for leadership. It takes up a significant portion of the succession plan.

2. Evaluation Phase

The evaluation phase ensures the right individuals are selected for leadership roles by considering high-potential employees and aligning them with key business needs. 

3. Development Phase

Developing a pool of talent and capturing institutional knowledge ensures the longevity of the succession process. It is equally important but slightly more dependent on the results of the assessment and evaluation phases. 

Must-see: Succession Planning: Securing Organizational Resilience and Growth in the Middle East

Succession Plan Steps

A successful succession plan involves several key steps to ensure smooth transitions and long-term business stability. Here are the essential steps to follow when developing your plan:

1. Identify Critical and Vulnerable Positions

The first step in effective succession planning is identifying key positions within your organization that are most in need of successors. When prioritizing these positions, consider two main factors: vulnerability and criticality.

1. Begin by identifying positions that currently lack a clear successor. These roles are most at risk of knowledge loss, which could significantly disrupt operations.
2. Assess the impact each position has on your organization’s ability to achieve its mission. If filling a vacancy in a specific role would hinder the organization’s goals or operations, that position should be classified as critical. Critical roles aren’t limited to senior leadership; they can also include specialized technical and scientific positions, which are essential to the organization’s success.

2. Develop Eligibility Requirements

Once you’ve identified critical positions that require succession planning, the next step is to create a detailed profile for each role. This will help your organization determine which candidates possess the experience and qualifications necessary to step into these roles. By clearly outlining the requirements for each position, you set clear expectations and ensure a smoother transition when the time comes.

To develop eligibility requirements, consider the following questions:

• What specific criteria will be used to fill the position in case of a vacancy? Clearly
  defining these will help streamline the decision-making process.
• What technical knowledge, skills, and abilities are essential for success in this role?
  Identify the competencies that are critical for achieving the desired performance
  outcomes.

3. Identify a Talent Pipeline

Once the position profile is in place, the next step is to identify roles within your organization that are well-suited to temporarily fill the successor position if a vacancy arises. These positions may also be potential candidates for the successor role when the opportunity becomes available.

To effectively assess potential successor positions, consider the following questions:

• Which positions have duties and responsibilities that align with the successor role?
• Are the day-to-day experiences in these positions similar to those required for the
  successor role?
• Are there any gaps between the current position and the successor role that need to be
  addressed before moving forward?

4. Nominate Successors from the Qualified Pool

Now that you’ve identified the talent pipeline, it’s time to nominate potential successors from those qualified positions. This involves selecting individuals who not only meet the eligibility criteria but also have the potential to grow into the successor role.

Leaders should nominate employees for succession development, but it’s equally important to invite employees to express interest in these opportunities. Transparency in the process helps cultivate trust and equity, as employees can see clear pathways for their career growth within the organization.

When evaluating potential successors, consider the following qualifications:

• The candidate demonstrates sustained high performance and a positive impact on the
  organization’s results.
• The individual is acknowledged by peers, customers, and managers as a future leader.
• The candidate aligns with the organization’s values and culture.
• The individual contributes new ideas to improve their functional area.

However, it’s essential to remind candidates that the successor position is not guaranteed. Final selection depends on ongoing performance, and an employee may be removed from consideration if their performance falls below expectations.

If there are no eligible candidates in the identified roles, you may need to reassess your recruitment strategy and identify areas where learning and development programs could be enhanced to prepare employees for future leadership opportunities.

By proactively nominating and developing successors, your organization ensures a smoother transition when leadership changes occur, keeping the business continuity intact.

5. Create an Action Plan to Prepare Successor(s)

Developing a clear and comprehensive action plan for potential successors is essential to ensure their readiness for the role. This plan should include targeted growth opportunities that align with the future leadership role, ensuring that the successor gains the necessary skills and experience to excel.

Successor development opportunities include:

• Designing a tailored succession development plan with training and learning opportunities that directly relate to the successor role. Explore options such as NIH Leadership Development programs.
• Gaining experience in different functional areas of the incumbent’s role, particularly in
  areas the successor hasn’t yet encountered.
• Receiving mentorship and guidance from the incumbent to gain valuable insights and
  skills.
• Engaging in coaching sessions to develop leadership and decision-making abilities.
• Stepping into the incumbent’s role during their absence, to gain hands-on experience.
• Taking on special projects or assignments that challenge and enhance relevant skills.
• Utilizing dual incumbency opportunities as the incumbent transitions, ensuring a smooth
  handover of responsibilities.

6. Evaluate the Succession Plan

Regularly evaluating your organization’s succession planning process ensures it remains effective and evolves with your business needs. This continuous assessment helps refine your strategy and boosts overall organizational performance. When evaluating your succession plan, consider the following key factors:

1. Compare the strength of your talent pool before and after initiating succession planning.
2. Assess the number of qualified “ready-now” candidates now available, compared to prior
   to succession planning.
3. Evaluate improvements in employee development, including new learning tools and
   development processes introduced.
4. Measure overall organizational performance and any positive changes linked to your succession planning efforts.
5. Determine if there is a reduced risk related to the departure of key employees, thanks to a robust succession strategy in place.

Succession Planning and Leadership Development with Metamorph

At Metamorph, we understand the importance of equipping your team with the right skills and knowledge to lead your organization forward. As your strategic training partner, we help you implement effective succession planning strategies, ensuring that you’re not just preparing for the future – you’re actively shaping it by developing the next generation of leaders within your organization.

For more insights into effective leadership development and talent management, explore our Succession Planning & Talent Management 5th Edition. Let us guide you in fostering the next generation of leaders within your organization. Partner with Metamorph to elevate your leadership strategy and secure long-term success.