Succession Planning Process: A Step-by-Step Guide

An effective succession plan begins with a solid foundation. Using a step-by-step guide simplifies the creation process, brings clarity to key stakeholders, and provides the necessary building blocks for success. 

In our comprehensive succession planning guide, we outlined five key steps to creating a custom strategy for your organization. Here, we dive deeper into the details of each step and provide a clear, practical guide and succession planning procedure for business leaders.

Step One: Evaluate and Assess Your Needs

The very first step in the succession planning process is to identify which positions in your organization are mission-critical. You'll zero in on those roles vital to the success of your business. Your task is to pinpoint positions that would lead to significant business disruption in the event of a sudden departure or extended vacancy.

Not every role in your organization is a critical one. To separate these key positions from others, it's helpful to think of them in terms of the value they bring. Korn Ferry's Critical Role Index is a useful guide for assessment and is based on three main pillars: strategic value, business value, and role value.

• Strategic Value: How does this role impact the organization's ability to achieve goals and tackle future challenges? 
• Business Value: How does this role fit within current day-to-day operations? Is this role critical to "keeping the lights on?" 
• Role Value: Does this role require a specific skill set that's scarce? If this role were to become vacant, would it be extraordinarily expensive or difficult to fill?

Answering these questions will help shape how you proceed with the rest of your strategy. Each role in your organization is unique with its own set of characteristics. For example, your objectives and goals for a role that's critical yet easy to fill may look different from one that requires a very specific skill set. 

Once you've identified your key roles, you now have a foundation on which to build out the rest of your succession plan. 

Step Two: Perform a Talent Review

All too often, organizations stop their succession plans short of putting development plans in place for their successors. Simply identifying top talent is only a piece of the puzzle. Without individualized development plans in place, future leaders may be left unprepared to step into their next role

Development plans are a key element of your succession plan. They ensure proper knowledge transfer, development of core competencies, and they foster relationships with current leadership. 

Each successor should have a unique development plan, tailored to both their individual needs and the needs of the organization. It should include both formal and informal opportunities and hands-on experiences. 

The following elements are often included in development plans for successors:

• Challenging projects and "stretch assignments" (i.e. taking on a role in a new merger or acquisition)
• Opportunities to manage a new project from start to finish
• 360-degree feedback sessions
• Regular 1:1 mentorship meetings with current leaders
• On-the-job training
• Coursework towards an MBA or Masters program
• Executive coaching opportunities
• Industry-specific leadership skill workshops, conferences, and seminars

When building out each development plan, consider the following:

• Gaps between current skills and what's needed for their future role 
• How much time you have to develop skills before a successor steps up
• Successor's input on the skills they'd like to develop

Depending on how many successors you've identified, creating these profiles may seem like an arduous task. However, once in place, they make the implementation portion of your succession plan much easier. 

Step Four: Implement Your Succession Plan 

Now that you've done most of the heavy lifting, it's time to formally implement your succession plan. 

In this stage, clear communication is key. Putting the wheels of your plan in motion will likely involve stakeholders from across the organization. A successful roll out is essential in obtaining buy-in from everyone from senior leadership to entry-level employees.

Here's a suggested framework for succession plan implementation:

1. Identify all key stakeholders in the succession planning process and form a committee. Explain the importance of the plan and why it's critical for the overall health of the organization. Provide each stakeholder with clear guidelines on their roles and involvement. Include an implementation timeline, set expectations, and field questions from participants.
2. Share your succession plan with the current leadership team. Alert them that a committee has been formed and implementation is underway. Ensure they're aware that their role in the process is essential to the plan's overall success. Provide leaders with clear guidelines on their unique role within the plan. Include guidelines and talking points for them to share with direct reports.
3. Share succession plan details with identified successors. Ideally, the news should come from current leadership to begin cultivating their relationship. Provide them with the details of their development plan, the implementation timeline, and the overall goals of the process.

Once all key stakeholders are made aware of the succession plan, develop a communication strategy to inform the broader organization. When the communication process is complete, you can then begin to schedule and plan activities within your successors' development plans. 

Now that the wheels are in motion, it's important to keep a pulse on your succession plan as it moves through its many stages. Let's dive into the last and final step of the process: evaluating and measuring success.

Step Five: Evaluate and Measure Success

After your succession plan is implemented and execution is underway, your next task is to closely monitor its progress. Evaluation of the plan's effectiveness will be an ongoing activity for as long as it's in place. Through consistent monitoring, your plan becomes adaptable to organizational, industrial, and economic changes.

Consider this quick guide to succession plan evaluation and maintenance:

• Choose which KPIs to track based on the unique needs of your organization. For example, you may choose to monitor the turnover rate of high potential employees to uncover gaps in hiring or talent management and talent development processes
• Perform regular evaluations of potential successors' readiness to take on a leadership role and the effectiveness of their individualized development plans
• Schedule standing meetings to review your succession plan to keep things relevant. Make updates whenever there are major changes to organizational strategy, market conditions, or workforce dynamics
• Periodically compare your succession plan with the organization's overall mission, vision, and goals. These alignment checks will ensure your plan fits seamlessly within organizational objectives

With the right succession plan in place, your organization will be well-equipped to handle key leadership changes. Your future leaders will be set up for success in their new role and you'll avoid the disasters that stem from sudden departures. 

Unleashing the Potential of Your Organization

Creating a succession plan is no small feat. Using a step-by-step guide is a great way to ensure you include all of the elements of an effective program. From identifying critical roles to monitoring your plan's success, each step is crucial to ensuring the health and future of your organization.

If you’d like to dive deeper into each step of succession planning, connect with us or consider attending one of our upcoming leadership events.

-Natalie Windle Fell