Latest updated: 22 June 2023

Succession Planning is about ensuring that you can identify capable replacements when leaders or other individuals in important roles leave the organization. By preparing employees to take on larger and more challenging roles, you can avoid a range of issues that may arise when one or more key personnel depart. As a manager, you should ensure that your employees receive the necessary training and guidance to eventually take the next step within the organization.

Today's work environment is characterized by significant mobility, and it is common for competent managers or employees to leave their employers because they have received better offers elsewhere. Additionally, many individuals retire or are forced to leave for other reasons.

A company can be greatly affected when a manager, specialist, or any other competent employee leaves their position. Sometimes, it can be quite a shock, especially when the organization has not prepared for the situation and does not have a plan to replace the departing individual.

Succession Planning is precisely about ensuring that the organization can replace key individuals who leave. The concept is closely related to employee development and leadership development since it involves preparing employees for new, more demanding roles and helping them eventually reach their full potential within the organization.

Who will become the future leaders?

Succession Planning is a long-term process that prepares the organization for both planned or expected departures, such as managers approaching retirement, as well as sudden or unexpected resignations.

The first step is to review the important roles and key personnel within the organization. What would happen if that manager or specialist were to leave? What impact does that person and role have on daily work? What knowledge and skills are required to fill that role? Will you need to recruit externally, or are there internal employees with the right talent and potential to take over the role?

Next, it is time to evaluate the employees you have and consider who may be suitable for filling important roles in the future. It is important not to limit yourself to just one employee who is next in line for a specific managerial role. Be open to other alternatives as well.

You should also engage in early discussions with employees to learn about their goals and how they perceive their development opportunities within the company. Show that you believe in the employee's potential to take on a more significant role, but make it clear that no promises can be made, and the specific role has not been determined.

The next step is to begin preparing employees more concretely for advancement within the organization, and this can be done in several ways. Some may require different forms of training and skill development. Coaching or mentoring can also be effective in strengthening employee development, especially when preparing for a potential managerial role.

It may also involve allowing employees to experience different roles within the organization, such as through internal training and mentoring, shadowing, or taking on greater responsibility when a regular manager is on leave.

Enhancing motivation and engagement

In addition to the obvious benefit of planning and preparing for potential departures, Succession Planning is beneficial for the organization in other ways as well. Employees become more engaged and motivated when they see development opportunities within the organization. The preparations and training involved in Succession Planning also elevate the overall level of competence, making everyone stronger leaders regardless of their formal role.

The organization also benefits from assessing the expertise present within the company and considering the consequences of potential departures. Furthermore, the company culture is strengthened when the company's values, goals, and vision are passed on to a new generation of future leaders.

There is a risk that the process of Succession Planning may create some concerns within the organization. Questions may arise about whether key individuals are planning to leave, and managers may wonder if their positions are somehow threatened. It is crucial to ensure transparency throughout the process and clearly communicate that Succession Planning is a natural way to future-proof the organization but does not imply that anyone will be leaving in the present.

When handled correctly, Succession Planning is an excellent way to ensure that the organization does not panic when a key individual departs. This is an ongoing effort that should be maintained continuously; the plan will need to be reviewed and updated every year.

There is much to gain by consistently staying one step ahead when planning the development of your organization. And employees will appreciate the signal that those who are skilled and ambitious have the opportunity to advance within the organization.