How succession planning works and why every organisation needs it

Executive overview

Key employee departures — through retirement, resignation, or death — leave organisations scrambling if no plan exists. Succession planning is a proactive strategy to identify and prepare internal candidates for critical roles before a vacancy occurs.

Strong plans can take up to three years to build. Start before you need them.

Why succession planning matters

• Recruitment and training for specialised roles is expensive and disruptive
• Retirement rates are outpacing projections, accelerating the risk
• A skilled salesperson or technician can be as hard to replace as a C-suite executive
• Transparent growth paths improve morale, productivity, and retention
• Promoting from within backs up the claim that a company values its people

How to build an effective succession plan

1. Plan in advance — treat it as ongoing strategy, not a response to rumours of departure
2. Identify key roles — prioritise those whose loss would have the widest immediate impact
3. Look beyond the org chart — develop plans that extend past the next obvious position
4. Work with departments — find out which roles are most critical and who could step up
5. Encourage cross-functional collaboration — high-potential candidates may come from other teams
6. Be transparent with employees — discuss their goals and include development in regular one-to-ones
7. Foster diversity — include DE&I initiatives and a range of skills, perspectives, and backgrounds