Strategic Planning Frequently Asked Questions and Answers

What Is Succession Planning?

Succession planning is the process by which companies and businesses ensure that there is an orderly and planned transfer of powers, responsibilities and job functions when employees -- usually in executive and management positions, leave the company through retirement, or other means.

If we think of human resource planning as ensuring that the right people and right skills are available so the company can meet its strategic and shorter term goals, then it's clear that succession planning is an important part of this process.

In terms of process, succession planning involves identifying positions and roles where vacancies are anticipated, and identifying how the company will fill those positions. When it's determined that succession planning will rely on internal promotions, some companies will begin a process of identifying one (or more than one potential candidate), and begin the development process with them, so that when it is time for a person to step up, they have ample experience and the necessary skills to do so.

For example, a person targeted to fill an anticipated vacancy from within may be encouraged to take relevant university courses, attend seminars for skill building, shadow the current incumbent to learn the ropes, receive coaching and mentoring from the incumbent, participate in job rotations, and other developmental activities.

While it may seem that succession planning (and developmental planning) applies only to internal staff (preparing an existing employee to move up), it can also be used with a new hire, who may be hired before the incumbent leaves, and is prepared for the full position while the incumbent is still in place. The purpose is to ensure continuity of operations.