Frequently Asked Questions – Succession Planning
What is succession planning?
In “Passing the Torch” we define succession planning as a business strategy and “[t]he consistent, constant, and organized process to identify, develop, and support a pipeline of candidates for different positions throughout the company in order to maintain its uninterrupted operations in case of planned or unexpected vacancies, ensuring business continuity.”(p. 4)
How is succession planning different from replacement planning?
Succession planning is focused on planning for the future of the business. In contrast, in replacement planning a company has to find someone who is ready immediately to serve as a backup for whoever left the company either temporarily or permanently.
Why do I need to be concerned about succession planning?
Succession planning has a direct impact on reducing company costs and risks by preparing internal candidates for more advanced positions. It also strengthens the company’s internal and external brand which, in turn, conveys stability to stakeholders. If you are concerned about the continuity of your business, we encourage you to consider succession planning.
What do I need to do to start working on succession planning?
The first step is reviewing your company’s business strategy and where the company wants to be in the future. The business strategy is the foundation for the succession plan because it will determine the key positions that will need to be filled and the resources that will be required to fill them.
I thought that only large companies have to worry about succession planning. Is that true?
Companies of all sizes need to take a proactive approach to succession planning.