Succession Planning: The Strategy Your Organization Can’t Afford to Ignore

When leaders hear the word “succession,” their minds might immediately go to the cutthroat corporate drama of HBO’s Succession, where family members battle for power. Others might assume succession planning means someone is quietly organizing their retirement party—or worse, their funeral. In other words, it’s often seen as an uncomfortable or even ominous topic.

But here’s the sobering reality: According to executive coach Michael Kadel, only 1% of organizations rate their own succession planning as outstanding. Even more concerning, Michael Timms, in Succession Planning that Works, highlights that American companies face an uphill battle over the next 15 years, with up to 65% more people potentially retiring in 2027 compared to 2012. If organizations don’t take succession planning seriously, they risk a leadership vacuum that could threaten their long-term stability and success.

The Ideal Future: A Shift in Mindset

In a perfect world, corporate recruiters would be focused primarily on entry-level hiring—not scrambling to fill leadership gaps. So, how do organizations get there? The key is to move away from viewing succession planning as simply replacing individual roles and instead focus on building a pipeline of capable leaders ready to step in when needed. Here’s what works—and what doesn’t.

What Helps: Effective Succession Planning Strategies

1. Shift the Mindset: It’s About Leadership Development, Not Just Replacement
Succession planning isn’t just about filling vacancies; it’s about cultivating the leadership competencies necessary for the future. Organizations that excel in this area focus on proactively developing talent and ensuring that institutional knowledge is retained before it walks out the door.

2. Make Leadership Development a Strategic Priority
Different levels of leadership require different development approaches. Emerging leaders (high potentials), mid-level managers, and senior executives each need tailored programs to ensure a steady pipeline of talent ready for advancement.

3. Identify Critical Positions
While every role plays a part in an organization’s success, not all positions carry the same level of strategic importance. Identifying the most critical roles helps prioritize succession planning efforts, ensuring that gaps in key areas don’t disrupt operations.

4. Identify and Track High Potentials
Identifying high-potential employees isn’t just about labeling future leaders—it’s about measuring the effectiveness of leadership development programs. Key questions to track include: Are high potentials being promoted? Retained? Engaged? Are they filling critical roles? Regularly evaluating these metrics helps organizations refine their approach and ensure long-term leadership sustainability.

5. Use 360-Degree Feedback to Measure and Develop Leadership Competencies

Identifying high-potential employees isn’t just about labeling future leaders—it’s about measuring their leadership effectiveness and readiness for greater responsibility. One of the most effective ways to assess and develop future leaders is through 360-degree feedback.

Unlike traditional performance reviews, 360-degree feedback gathers insights from peers, direct reports, and supervisors—offering a well-rounded view of leadership strengths and development areas.

Key Competencies Measured by 360-Degree Feedback in Succession Planning:

• Communication & Difficult Conversations – Can they navigate tough discussions with confidence and clarity?

• Coaching & Development – Do they support and grow their team members effectively?

• Decision-Making & Strategic Thinking – Are they viewed as capable of making sound leadership decisions?

• Emotional Intelligence & Relationship-Building – How well do they engage, listen, and inspire others?

By using 360-degree feedback, organizations can not only identify future leaders but also create personalized development plans that address growth areas before leaders move into critical roles. This ensures that leadership transitions are smooth, strategic, and based on measurable growth.

What to Avoid: Common Pitfalls in Succession Planning

1. Overcomplicating the Process
Many organizations attempt to implement succession planning at all levels simultaneously, leading to fatigue and inefficiency. Instead, start with the highest-level critical positions, establish a proven process, and then expand gradually.

2. Making It an HR-Only Initiative
While HR plays a crucial role in facilitating succession planning, the process needs to be embraced at the highest levels of leadership. When executives see and communicate the ROI of succession planning, it gains the traction needed for long-term success.

3. Ignoring Measurement and Accountability
What gets measured gets managed. Organizations that track the effectiveness of their succession planning efforts—through promotion rates, retention of high potentials, and internal mobility—are better positioned to refine and sustain their strategy over time.

The Bottom Line

Succession planning isn’t about preparing for an inevitable leadership crisis—it’s about ensuring continuity, fostering growth, and positioning your organization for long-term success. Companies that treat it as a proactive investment rather than a reactive process will not only survive but thrive in the years to come.

The question isn’t if your organization should focus on succession planning. The question is—can you afford not to?

If you’d like to discuss succession planning or leadership continuity for your organization, I’d love to connect. Feel free to reach out to me at linda@lindapandey.com