Succession planning is the process of identifying the roles your organization cannot afford to leave empty. It also means finding and developing people who could step into them, then keeping that plan current as people and strategy change. Done well, it turns a sudden resignation or retirement into a planned handoff instead of a crisis. It applies to every critical role, not only the CEO.
This guide gives a working definition, a five-step process, a simple succession planning template and the best practices that keep a leadership pipeline healthy.
Succession Planning Definition: What It Is and Why It Matters
A succession plan answers three questions: which positions are critical, who could fill each one now or later, and what those people need to be ready. It covers sudden exits, such as a resignation or illness, as well as planned ones, such as a retirement.
The U.S. Office of Personnel Management’s Strategic Leadership Succession Management Model (March 2009) treats succession management as a continuing cycle tied to strategy, not a one-time list of names. That framing holds for private employers too. In short, the plan only works if you review it alongside business goals and real talent data.
Why succession planning matters
- Continuity: key decisions, client relationships and know-how do not stall when someone leaves.
- Faster transitions: a ready successor shortens the time a role sits empty.
- Retention: employees who see a path forward have a reason to stay.
- Better hiring decisions: knowing where internal bench strength is thin tells you where to recruit externally.
- Lower risk: lenders, investors and boards often ask how leadership gaps would be covered.
Succession Planning in 5 Steps
OPM’s model is organized into five phases: establish strategic alignment, identify succession targets and analyze the talent pool, develop the plan, implement it, and evaluate the strategies. Adapted for a private employer, the steps look like this:
1. Align the plan with business strategy
Start with where the business is going. New markets, products or technology change which roles will matter most. If you already have a workforce plan, use it as the base. The approach in workforce planning for employers covers how to map future needs.
2. Identify critical roles and assess the talent pool
List the positions where a vacancy would cause the most damage. These include senior leaders, but also hard-to-fill specialists, roles that hold key client relationships and roles with unique knowledge. For each, assess internal candidates on readiness, usually grouped as ready now, ready in one to two years, or longer term.
3. Build development plans
Write an individual development plan for each potential successor: stretch assignments, mentoring, cross-training, job shadowing, formal training and exposure to senior decision-making. Agree on the plan with the employee so it feels like an investment, not a secret list.
4. Put the plan into action
Communicate the program, run the development activities and document critical knowledge. For example, record processes, contacts and passwords handled through proper access controls. Where no internal candidate exists, plan an external search before the role opens.
5. Measure, review and adjust
Review the plan at least once a year and after any major change. Track whether successors are progressing and whether critical roles have at least one ready candidate.
Succession Planning Template
A simple template keeps the plan consistent across departments. Use one row per critical role:
| Field | What to record |
|---|---|
| Critical role | Position title and department |
| Current incumbent | Name and expected time in role, if known |
| Risk of vacancy | Low, medium or high, with the reason |
| Impact of vacancy | What happens if the role is empty for three months |
| Successor candidates | Names with readiness: ready now, 1–2 years, 3+ years |
| Development actions | Training, assignments and mentoring for each candidate |
| Knowledge to capture | Processes, relationships and documentation to transfer |
| Emergency cover | Who acts in the role on short notice |
| External option | Whether to recruit outside if no successor is ready |
| Review date | When the row will next be updated |
Keep the template confidential and limited to the people who need it, and store it with your other HR planning documents.
Succession Planning Best Practices
- Go beyond the C-suite: include specialist and frontline leadership roles where a vacancy would hurt.
- Develop pools, not single heirs: naming two or three candidates per role lowers risk and widens opportunity.
- Use objective criteria: assess candidates on defined skills and results, not on who is most visible to leadership.
- Keep it fair and lawful: promotion and development decisions must not be based on protected characteristics.
- Talk about careers openly: regular career conversations surface people who want to grow and those who do not.
- Link it to retention: flight risk among successors is a warning sign worth acting on.
- Review on a schedule: a plan that is a year out of date gives false comfort.
On fairness, see the EEOC’s page on prohibited employment practices. It states that decisions about job assignments and promotions may not be based on race, color, religion, sex, national origin, age (40 or older), disability or genetic information. Nor may they rest on stereotypes about a person’s abilities. Build that into how candidates are nominated and assessed.
Common Succession Planning Mistakes
- Treating the plan as a one-time project instead of a cycle.
- Naming successors without telling them or investing in their growth.
- Focusing only on the CEO and ignoring key technical roles.
- Choosing successors who mirror the current leader rather than the role’s future needs.
- Failing to capture knowledge before a long-tenured employee leaves.
- Not tracking whether the plan actually worked when a role opened.
Turnover data is a useful input here. If one team loses people often, its pipeline needs extra attention. For more, see how to calculate employee turnover rate and employee retention strategies.
How to Measure Your Leadership Pipeline
OPM’s Workforce Planning Guide (November 2022) stresses tracking progress against the plan, and the same habit applies to succession. Useful measures include:
- Share of critical roles with at least one ready-now successor.
- Share of open leadership roles filled internally.
- Time to fill critical roles when they open.
- Retention of employees identified as successors.
- Completion of development actions in each successor’s plan.
- Performance of internal promotions after their first year.
Succession Planning for Small and Midsize Employers
Smaller companies often have the most to lose, because one person may hold an entire function. You do not need a complex program. Start by listing the five to ten people whose sudden absence would hurt most. Then name an emergency backup for each, and write down the critical knowledge they hold.
For owner-led businesses, include ownership and decision rights in the plan, not just day-to-day duties. Pair the HR plan with legal and financial advice on ownership transfer. Also revisit it whenever the business changes direction or a key person signals a move.
Succession planning FAQ
What is succession planning?
Succession planning is identifying critical roles and preparing people to fill them, so the organization keeps running smoothly when someone leaves, retires or moves up.
What are the 5 steps of succession planning?
A common five-step approach is to align with strategy, identify critical roles and assess the talent pool, build development plans, implement the plan, and review and adjust it regularly.
What are the 5 D’s of succession planning?
The 5 D’s are events that can force an unplanned leadership change, usually listed as death, disability, divorce, disagreement and departure. They are most often used in planning for owner-led and family businesses.
How often should a succession plan be updated?
Review it at least once a year and whenever a major change happens, such as a reorganization, a key resignation or a shift in strategy.
Build a Stronger Leadership Bench
When no internal successor is ready, the right external hire keeps the pipeline moving. Bridgecore Partner’s staffing and recruitment services can help you fill critical roles and plan for future gaps. Contact Bridgecore Partner to discuss your succession needs.