6 Hallmarks of a Strong Succession Plan

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Succession planning is a critical component of organizational sustainability and growth.1 By ensuring that key roles are filled with well-prepared leaders, organizations can navigate transitions smoothly and maintain their competitive edge.2

Elements of an Effective Succession Plan

Below are six hallmarks of a strong succession plan that every organization should incorporate.

1. Clear Objectives and Goals

An effective succession plan begins with clearly defined objectives and goals. Understanding the purpose behind the succession plan and setting measurable targets ensures that all stakeholders involved are aligned on what success looks like.

Why it Matters

Clear objectives align the succession plan with the organization’s strategic vision. They provide a roadmap for identifying and developing future leaders, ensuring that the succession plan supports long-term organizational goals.3

Implementation Tips:

  • Set specific goals: Clearly define the desired outcomes of the succession plan, such as preparing for seamless leadership transitions or identifying and developing individuals for critical roles within the organization.
  • Align with strategy: Ensure that the objectives of the succession plan are fully integrated with the broader business strategy, thereby supporting the organization’s mission and vision.4
  • Measure success: Establish metrics to track progress, such as the readiness of potential successors or the success rate of leadership transitions. Explore SIGMA’s Measure Progress service to learn more.

2. Thorough Identification of Key Roles

Identifying which roles are critical to the organization’s success is essential. This process involves understanding the skills, experience, and competencies required for these positions and recognizing potential internal and external candidates.

Why it Matters

By focusing on key roles, organizations can ensure that they are prepared for the loss of critical talent during leadership transitions. This proactive approach minimizes disruptions and maintains operational stability.5

Implementation Tips:

  • Conduct a role analysis: Identify the positions that are crucial to the organization’s success and understand the factors that make them critical. SIGMA’s Critical Role Identification service helps leaders pinpoint these key roles, providing the foundation for effective talent management and succession planning to ensure organizational resilience.
  • Engage key stakeholders: Collaborate with senior leadership and department heads to gather insights on which roles are deemed critical and why. Their perspectives are invaluable in understanding the strategic importance of each role.
  • Future-proof: Consider how roles may evolve in the future due to industry trends, technological advancements, and organizational changes. Ensure that the roles identified are not only critical now but will remain so in the future.

3. Comprehensive Development Plans

Creating personalized development plans for potential successors is a cornerstone of effective succession planning. Development plans should include training, mentoring, job rotations, and other professional development opportunities.

Why it Matters

Development plans ensure that potential successors acquire the necessary skills and experience to step into key roles seamlessly. This proactive preparation reduces the risk of leadership gaps in the event of organizational changes.

Implementation Tips:

  • Customize development plans: Tailor plans to address the specific development needs of each potential successor. Learn how by downloading SIGMA’s complimentary guide, How to Launch a Talent Development Program.
  • Incorporate diverse learning methods: Use a mix of training, mentoring, and hands-on experiences to develop well-rounded leaders.
  • Monitor progress: Regularly review and adjust successor development plans based on feedback and changing organizational needs.

4. Regular Assessment and Feedback

Implementing a continuous evaluation process to assess the progress and readiness of potential successors is crucial. Regular feedback ensures that candidates are developing the necessary skills and can adjust their development plans accordingly.6

Why it Matters

Ongoing assessment and feedback help identify gaps in development early, allowing for timely interventions. This process ensures that successors are truly ready when the time comes for them to assume a new leadership role.

Implementation Tips:

  • Schedule regular check-ins: Conduct periodic evaluations of potential successors’ progress. Use SIGMA’s free Development Actions Form to clearly identify areas for development and track progress toward goal attainment over time.
  • Provide constructive feedback: Offer actionable insights to help successor candidates improve and grow.
  • Adjust plans as needed: Be flexible and update development plans based on performance reviews and feedback.

5. Engagement and Communication

Maintaining open lines of communication with all stakeholders, including potential successors, current leaders, and human resources professionals is essential. Transparent communication fosters trust and ensures everyone is aligned with succession plans and expectations.7

Why it Matters

Effective communication prevents misunderstandings and ensures that all parties are committed to the succession planning process. It also helps manage expectations and motivates potential successors.

Implementation Tips:

  • Encourage open dialogue: Promote honest conversations about career aspirations and succession plans.
  • Keep stakeholders informed: Regularly update all relevant parties on the progress of succession planning efforts. Explore SIGMA’s blog on How to Communicate Succession in an Organization to learn how to communicate succession effectively.
  • Promote a culture of transparency: Create an environment where information is freely shared and feedback is welcomed.

6. Integration with Organizational Strategy

Ensuring the succession plan is integrated with the overall organizational strategy is critical. This alignment assures that succession planning supports broader business objectives and contributes to long-term success.8

Why it Matters

Aligning succession planning with organizational strategy enhances the overall effectiveness of both by ensuring that leadership development efforts are directly contributing to the company’s long-term goals.9 Integrating organizational strategy helps ensure that the right leaders are in place to drive the organization forward.

Implementation Tips:

  • Align goals: Make sure that succession planning goals are consistent with the organization’s strategic objectives.
  • Involve senior leadership: Engage top executives in succession planning to ensure it reflects the organization’s vision and priorities. Read SIGMA’s Getting Senior Management Buy-In for Succession Planning to learn how to influence senior leadership to invest their time and resources in succession planning efforts.
  • Monitor and adjust: Regularly review the alignment between succession planning and organizational strategy, making adjustments as necessary.

Incorporating these six hallmarks into your succession planning process will help ensure that your organization is prepared for future leadership transitions. By focusing on clear objectives, identifying key roles, creating comprehensive development plans, conducting regular assessments, maintaining open communication, and aligning with organizational strategy, you can build a robust succession plan that supports your company’s long-term success.

Ready to Get Started?

To learn how to develop a comprehensive succession plan from start to finish, download our free Succession Planning Guide. It provides all the insights and tools you need to ensure your organization is prepared for future leadership transitions. Additionally, leverage our extensive succession planning experience and expertise by using the contact form below. We’re here to help you build a robust and successful succession plan tailored to your unique needs.

Ready to Get Started?

1 3BL Blogs: Putting the “Success” in Succession Planning: Why It Matters and How to Do It. (2019). In Newstex Global Business Blogs. Newstex.

2 Greengard, S. (2001). Why succession planning can’t wait. The Personnel journal. 80. 34-+.

3 Sphr, K. D. (2024). The importance of succession planning, now more than ever. Forbes. https://www.forbes.com/sites/karadennison/2024/06/25/the-importance-of-succession-planning-now-more-than-ever/

4 Rosenthal, J., Routch, K., Monahan, K., & Doherty, M. (2018). The holy grail of effective leadership succession planning. Deloitte. https://www2.deloitte.com/content/dam/insights/us/articles/4772_Leadership-succession/DI_Succession-planning.pdf

5 Keller, S. (2018). Successfully transitioning to new leadership roles. McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/successfully-transitioning-to-new-leadership-roles

6 7 ways you can achieve your professional development goals. (2023). Harvard Business Insights Blog. https://online.hbs.edu/blog/post/professional-development-goals

7 Leadership Communication: building trust and collaboration in teams. (2023), The Economic Times. https://economictimes.indiatimes.com/jobs/c-suite/leadership-communication-building-trust-and-collaboration-in-teams/articleshow/104649044.cms

8 Succession planning and management guide. (2012). Government of Canada, Treasury Board of Canada, Office of the Chief Human Resources Officer. https://www.tbs-sct.canada.ca/gui/spgr/spg-gpgr-eng.asp?for=hrps

9 Succession planning and management guide. (2012). Government of Canada, Treasury Board of Canada, Office of the Chief Human Resources Officer. https://www.tbs-sct.canada.ca/gui/spgr/spg-gpgr-eng.asp?for=hrps

About the Author

Callum Hughson

Managing Editor

Callum is a member of the marketing team and utilizes his communications, marketing, and leadership development experience to create engaging and informative web content for a professional audience. A detailed editor and collaborator, Callum works with SIGMA’s coaches and consultants to deliver evidence-based thought leadership in the area of talent development.