Succession Planning

Glossary of HR Terms What is Succession Planning

What is Succession Planning ?

Succession Planning is the strategic process of identifying and developing internal employees to fill key leadership or critical roles in the future. It ensures business continuity by preparing a pipeline of talent that can step into essential positions when leaders retire, resign, or transition into new roles.

Why it matters

Without succession planning, organizations risk leadership gaps, loss of institutional knowledge, and disruption to operations. A strong plan ensures long-term stability, motivates employees by providing career growth opportunities, and reduces costs associated with external hiring for senior roles.

Where it fits in the HR stack

Succession planning sits in the talent management and workforce planning layers of the HR stack. It integrates with performance management (to identify top performers), learning and development (to prepare employees for future roles), and people analytics (to evaluate readiness and gaps).

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Common use cases/Examples

  • Preparing high-potential employees (HiPos) for leadership roles.
  • Ensuring smooth leadership transitions during retirements or resignations.
  • Mitigating risk in mission-critical positions.
  • Using talent reviews and nine-box grids to assess performance and potential.
  • Supporting DEI by ensuring diverse talent pipelines for leadership.

Examples of companies that use it

  • Global enterprises like IBM, GE, and Johnson & Johnson, which run structured succession programs to prepare future leaders.
  • Family-owned businesses that plan transitions to the next generation of leadership.
  • SMBs and startups using succession planning to ensure business continuity in founder-led or small leadership teams.

FAQ

No. While commonly associated with leadership roles, succession planning can also apply to any critical role where the loss of an employee would significantly impact operations.

HRIS, performance management platforms, and talent analytics systems often include succession planning modules to track readiness and development needs.

Career development focuses on individual growth, while succession planning aligns organizational needs with employee readiness for future roles.

Yes. By proactively developing diverse talent pipelines, succession planning can address representation gaps in leadership.

Risks include leadership gaps, rushed external hires, loss of institutional knowledge, and reduced employee morale due to unclear career paths.