Start by defining which roles are essential to business continuity. Identify employees who display potential to take on these roles, ensuring they align with the company’s future direction. Talent analytics tools can help you create a short list of potential successors for key roles within your organization. 

Assess the skills and competencies required for future leadership needs. This helps ensure successors are prepared with the specific expertise needed to thrive in their respective roles.

Facilitating knowledge transfer from current to future leaders is key. Mentorship programs can reduce the learning curve for core team members as they take on new responsibilities or step into executive roles. 

To develop well-rounded leaders, you should expose potential successors to various business areas through cross-functional training. For instance, if you are prepping a few promising candidates for the sales department manager role, cross-train them in marketing. This achieves two things.

First, the prospective leaders will better understand the connection between marketing and sales. Second, you will have an opportunity to evaluate how versatile and adaptable your top prospects are when placed in new and challenging situations.

According to Forbes, roughly 70% of succession plans go off the rails within two years of implementation. Why? A lack of buy-in among senior leadership is often to blame. 

To overcome this, you’ll need to ensure your succession plan reflects the company’s overall goals and culture. Leaders should embody the company’s values to maintain a cohesive organizational environment. 

Use a combination of performance reviews and 360-degree feedback to identify high-potential employees. Competency assessments are a great tool for determining who may have that spark needed to lead others. Look for individuals who exhibit a combination of technical expertise and emotional intelligence. 

Deploy talent engagement strategies to encourage active participation in personalized training plans. For example, you can work with promising leadership candidates to discuss their strengths and areas where they can improve. Together, you can create customized plans that are relevant and impactful.

Give potential successors hands-on experience through mentorship programs, coaching, and cross-departmental projects. These experiences are invaluable for developing the skills and confidence needed to lead effectively.

Define what the succession plan aims to achieve, whether it’s developing future leaders or reducing turnover. If you know an important member of the leadership team is retiring soon, you can incorporate that information into your succession planning objectives. Having clear objectives creates a sense of purpose and direction. 

Include board members, executives, and department heads in succession planning discussions. Their insights are invaluable in shaping a succession strategy that aligns with the company’s overall vision. 

Align succession planning with existing performance management systems to create a cohesive approach to talent development. This also allows for continuous tracking of a potential leader’s progress. 

Consider using technology solutions to streamline succession planning. Tools for skills assessment, competency mapping, and development tracking can simplify the process and improve accuracy. 

Shake-ups to company leadership, even planned ones, can create friction among your staff members. Departments may be hesitant to embrace an incoming manager. It’s important to openly communicate with employees about the benefits of succession planning while supporting individuals who are stepping into key leadership roles. 

Succession planning efforts can kick off water cooler gossip mills and get the entire company talking about who the next executive will be. You should do your best to be transparent about your succession planning efforts while maintaining enough confidentiality regarding selection processes. 

Be careful not to put undue pressure on potential successors or disappoint those who may not be selected.

Your business needs to evolve, and succession plans must be included in those adaptations. Review and adjust your succession plan to ensure it remains aligned with the organization’s goals. 

Succession plans need to align with big-picture business objectives and DEI goals. Your organization must work toward creating a more diverse and equitable workforce while simultaneously rewarding loyal team members who have devoted years to the business. 

These tools help evaluate where your company stands. Conduct an initial readiness assessment to identify your starting point and determine areas that require immediate attention. For example, if a long-time accounting department manager is retiring in the next six months, you need to prioritize that succession planning pipeline. 

Develop a clear communication strategy to keep stakeholders informed about the succession planning process. This builds trust and transparency within the organization.  

Create a culture that values and supports internal talent development. When employees see opportunities for advancement, they are more motivated to contribute to the company’s success. 

Succession plans aren’t concrete. They are living documents that change over time. Review and update them regularly to account for emerging skill requirements and evolving employee aspirations.