The 4 Stages of Succession Management

The 4 Stages of Succession management offers a strategic process organizations use to identify and develop individuals within the company who have the potential to fill key leadership positions in the future. The four stages include:

1. Identifying Key Positions: Determining which roles are critical to the organization’s success and require succession management.
2. Identifying Successors: Identifying and assessing potential candidates who could step into these key roles as current leaders retire, move on, or are promoted.
3. Development and Preparation: Developing and preparing these potential successors through training, mentorship, and exposure to relevant experiences to ensure they are ready for future leadership roles.
4. Continual Evaluation: Continually evaluating and updating succession plans based on organizational changes, performance feedback, and evolving leadership needs.

Succession management helps ensure continuity in leadership, minimizes disruptions during leadership transitions, and supports the long-term sustainability and growth of the organization.

Identifying Key Positions in succession management means determining which roles are most vital to your organization’s success and would significantly impact operations if left vacant. While this often includes leadership roles—such as executives or department heads—it can also involve positions with specialized skills or knowledge essential for meeting strategic goals. For example, a senior data scientist or product lead might play a unique role in an organization’s competitive advantage. By identifying these roles, HR can prioritize developing successors, ensuring smooth transitions and safeguarding critical operations.

While many companies only have succession plans in place for their key executives (i.e. leadership talent plans), the most successful organizations plan for all roles. A hospital can’t operate without skilled nurses, radiologic technicians, and phlebotomists, so planning only for the CEO and CNO would be a missed opportunity. Identifying those who have the interest and potential to develop their skills (through formal or informal training, depending on the setting and the role) can help you prevent costly skill gaps despite turnover.

Identifying Successors involves carefully selecting and assessing employees who have the potential to fill critical roles in the future. This step is crucial for maintaining organizational stability, as it prepares the next generation of leaders or specialists for seamless transitions. HR and leadership teams evaluate current employees based on performance data, skills assessments, feedback, and career aspirations. By identifying high-potential candidates who align with the responsibilities of key roles, organizations can focus on grooming these individuals for future positions, ensuring a ready and capable talent pool for any eventual vacancies.

This process often includes looking beyond immediate job performance to understand each candidate’s long-term potential and alignment with company values. Identifying successors is a proactive step that mitigates the risks of sudden departures or retirements, helping the organization continue meeting its strategic objectives smoothly.

When you leverage digital succession management tools for effective planning, the software will help you identify key positions and then outline the skills and competencies necessary for success in those roles. Depending on the solution you select, it will also allow you to match candidates to future roles based on their existing skills, their potential, and in some cases, their self-disclosed interests and career goals. Then, by comparing the skills required for the role to the candidate’s demonstrated skills, the system will identify gaps and automate development planning and tracking over time.

As you work through the steps your succession strategy, losing momentum is common. That is, starting development plans and then failing to follow through on those plans happens often in organizations counting on manual and paper processes. Automation keeps planning and development at the forefront.

Development and Preparation involves equipping identified successors with the skills and experience they need to step confidently into key roles. This stage includes personalized development plans, such as targeted training, mentorship programs, and hands-on experiences like stretch assignments or cross-functional projects. By exposing these individuals to relevant challenges and responsibilities, organizations ensure they are fully prepared for future leadership. This approach not only builds the necessary competencies but also boosts confidence, helping successors to transition seamlessly when their time comes.

Continual Evaluation involves regularly reviewing and updating succession plans to keep them aligned with changing organizational needs, evolving leadership goals, and employee progress. HR and leadership teams use feedback, performance assessments, and organizational shifts to assess each successor’s readiness and make adjustments as needed. This ongoing evaluation helps ensure that potential leaders are always prepared for future roles, maintaining a strong and flexible talent pipeline that can adapt to any unexpected transitions or organizational changes.

These are the 4 stages of succession management!