A guide to creating a succession plan for your business

Imagine this: your star department head, the one who knows everything and everyone, announces they’re leaving. Maybe they’ve won the lottery, or perhaps they’re moving on to a new challenge. Panic sets in. Who can possibly fill their shoes? This is a scenario many organisations face, but it doesn’t have to be a crisis. With a thoughtful succession plan, it’s simply the next chapter. Succession planning isn’t just a dusty file for emergencies; it’s a living, breathing strategy that secures your future and shows your people you’re invested in their growth.

What is succession planning, really?

At its heart, succession planning is the process of identifying and developing internal talent to fill key business positions in the future. It’s about being proactive, not reactive. It’s a common myth that this is something reserved only for the CEO or senior leadership. The reality is, any role that is critical to your operations or future success should be part of the conversation.

Think about the team leader who holds a qualification nobody else has, or the finance manager with deep historical knowledge of your accounts. The departure of these individuals can create huge gaps. A good succession plan looks at the entire organisation, building a pipeline of talent that ensures continuity, stability, and a culture where people can see a future for themselves.

Getting started: the foundational steps

Building a plan from scratch can feel daunting, but it’s best tackled one step at a time. The key is to start simple and build from there.

Identify your key roles

First things first: you need to know which positions are most critical to your organisation. This isn’t about hierarchy or pay grade; it’s about impact. Ask yourself:

• Whose absence would cause the most disruption to our day-to-day operations?
• Which roles hold unique knowledge or skills that are hard to replace?
• Which positions are essential for our strategic goals over the next three to five years?

Create a list or a map of these critical roles. This gives you a clear focus for your planning efforts. Don’t be surprised if roles from different levels of the organisation make the list.

Define the skills for tomorrow, not just today

It’s easy to think about replacing a person like-for-like, but the world of work is changing fast. The skills that made someone successful in a role five years ago might not be what’s needed five years from now.

Look at your business strategy. Are you planning a digital transformation? Expanding into new markets? Focusing more on sustainability? The skills your future leaders need must align with these goals. Think beyond technical abilities and consider broader competencies like emotional intelligence, adaptability, strategic thinking, and the ability to lead through change.

Spotting potential in your team

Once you know what roles and skills you need, it’s time to look for potential successors within your teams. It's important to differentiate between high performance and high potential. A star performer is great in their current role, but a high-potential individual has the aspiration and ability to be effective in a more senior or complex role.

Look for these signs of potential:

• Curiosity: They ask great questions and seek to understand the 'why' behind things.
• Agility: They learn quickly from mistakes and adapt well to new situations.
• Engagement: They are passionate about the organisation’s mission and go the extra mile.
• Aspiration: They show a genuine interest in growing their career.

Lean on your line managers here. They have the closest view of their team members' strengths and ambitions. Their insights are gold dust.

Nurturing your future leaders

Identifying potential is only half the battle. The next- and most important- step is to nurture that talent through targeted development.

Create tailored development plans

There is no one-size-fits-all approach to development. A future finance director will need a different path than a future head of curriculum. Work with your potential successors to build a plan that bridges the gap between where they are now and where they need to be.

This plan could include a mix of activities:

• Mentoring: Pair them with a current leader who can offer guidance and share experience.
• Stretch assignments: Give them a project just outside their comfort zone to build new skills.
• Job shadowing or rotations: Allow them to experience different parts of the business.
• Formal training: Support them in gaining specific qualifications or leadership training.

Talk about it- transparently

Many leaders are hesitant to talk about succession planning. They worry it will make the current role-holder feel pushed out, or that they’re making promises they can’t keep. But secrecy breeds anxiety.

We believe in a more human approach. Frame these conversations around career development and growth. Talk to your high-potential employees about their aspirations. Ask them where they see themselves in the future and what support they need to get there. This transparency builds trust and shows your people that you are invested in them, increasing their engagement and loyalty, whether they end up in that specific successor role or not.

Putting it all together and keeping it fresh

A plan is only useful if it’s documented and regularly reviewed.

Document your plan

Create a simple, central document for your succession plan. For each critical role, it should ideally capture:

• The role title and key responsibilities.
• The required skills and competencies (both current and future).
• One to three potential internal candidates.
• Their 'readiness' level (e.g., ready now, ready in 1-2 years, ready in 3+ years).
• A summary of their development plan.

Keep it straightforward and accessible to the relevant leadership team.

Review, rinse, repeat

Your succession plan is not a static document. It’s a living tool. People’s aspirations change, new talent joins, and business priorities shift. You should aim to review and update your plan at least once a year, or whenever there’s a significant change in your organisation’s strategy or structure. Think of it like servicing a car- it’s essential maintenance to keep the engine running smoothly.

Succession planning may seem like a big corporate task, but it’s fundamentally about people. It’s an investment in your team’s potential and a promise of stability for your organisation’s future. By taking a proactive, human-centred approach, you’re not just planning for departures- you’re building a stronger, more resilient business where talent can truly thrive.